Ford Motor Company’s mission statement and vision statement focus on product effectiveness and business leadership in the automotive industry. The company’s strategic position as a major player in the global automobile market is linked to the fulfillment of the corporate mission and corporate vision. Ford’s mission statement aims to benefit target customers through mobility. The company’s products are designed to address mobility needs and issues in the transportation sector. On the other hand, Ford’s vision statement focuses on achieving top performance in the industry despite competition. The company competes with Toyota, General Motors, Tesla, Volkswagen, Hyundai/Kia, Nissan, Honda, and other manufacturers. This market condition indicates the strong competitive rivalry shown in the Five Forces analysis of Ford Motor Company. The company’s corporate vision and mission statements influence strategic management decisions for overcoming challenges in the automotive industry.
Ford’s corporate mission statement and corporate vision statement guide the enterprise’s organizational development. Policies and strategies for various business areas interpret how these statements apply to automotive operational effectiveness. For example, Ford’s operations management and productivity measures apply strategic management interpretations of the vision statement and mission statement, specific to decision areas of operations, such as product design and human resource management.
Ford’s Mission Statement
Ford’s mission statement is “to make people’s lives better by making mobility accessible and affordable.” This corporate mission focuses on moving people, which is a basic function expected in automobiles and the transportation sector. The following are the main components of Ford’s mission statement:
- Make people’s lives better
- Make mobility accessible
- Make mobility affordable
The corporate mission statement’s emphasis on mobility indicates the purpose of Ford’s business in society. As one of the biggest players in the international market, the company aims to make people’s transportation more effective. The corporate mission statement’s first component (“to make people’s lives better”) is a factor in the automaker’s value proposition to its target customers. For example, the company’s goals are directed toward improving people’s lives. To make such improvement specific, Ford’s corporate mission statement includes the other two components. The company’s strategic plans address the accessibility and affordability of mobility to make people’s lives better. Thus, accessibility and affordability are variables in assessing Ford’s fulfillment of its value proposition. With this corporate mission statement, the automotive business sees its role as a contributor to the improvement of transportation to enhance the quality of life. Considering strategic management objectives, the affordability component of the corporate mission statement relates to selling prices and production costs, which are linked to Ford’s generic strategy for competitive advantage and intensive growth strategies.
Ford’s Vision Statement
Ford’s vision statement is “to become the world’s most trusted company, designing smart vehicles for a smart world.” This corporate vision reflects the multinational company’s strategic goal of becoming a leader in the automotive industry. The following are the main components of Ford’s vision statement:
- Worldwide scale
- The most trusted company
- Designing smart vehicles for a smart world
Ford’s focus on smart vehicles is pertinent to current market conditions and customers’ preferences. The company aims to maximize its profitability and relevance to the market, where more efficient technologies are preferred. The corporate vision statement’s first component (worldwide scale) is a specification of Ford’s target market, which is the global market for automobiles. On the other hand, through the second component, the corporate vision pertains to corporate or brand image, which influences the attractiveness and profitability of the company’s automobiles. For example, customers’ confidence in and preference for Ford electric cars depend on how these vehicles’ brand value is perceived. Also, the corporate vision statement indicates that the corporation is focused on smart vehicles. This focus implies a strategic response to the industry’s electric car trend, as discussed in the PESTEL/PESTLE analysis of Ford Motor Company. Thus, the corporate vision statement ensures that the company is abreast of the latest technologies suited to current market trends.
Summary & Recommendations – Ford’s Mission and Vision
Mission Statement. Ford’s mission statement is brief and a general description of the business. For example, the corporate mission focuses on making accessible and affordable mobility, inclusive of automobiles. The general term, “mobility,” is indicative of Ford’s future product development, which could include mobility technologies other than automobiles. The company could develop personal flying vehicles and new mobility products for transporting small parcels. Overall, the corporate mission statement is descriptive enough to guide strategic management in terms of what Ford’s business does and should do, and to align with the corporate vision statement. A recommendation is to improve the corporate mission by including information about the company’s target markets, customers, mobility technologies, and business philosophy and values. It is notable that the corporate mission statement’s focus on improving people’s lives relates to Ford’s corporate social responsibility strategy and stakeholder management, in terms of business contributions to societal improvement.
Vision Statement. Ford’s vision statement is concise, future-oriented, and inspirational, while describing the business as a developer of smart vehicles. The vision statement’s specification of smart vehicles complements the corporate mission statement by providing a more detailed picture of what the company does. Also, Ford’s corporate vision is challenging and abstract enough to drive the business organization toward high performance. To achieve this corporate vision of becoming the world’s most trusted company, it is essential to strengthen the enterprise through the enhancement or creation of competitive advantages, such as the ones shown in the SWOT analysis of Ford Motor Company. Also, satisfying the corporate vision statement requires strategic initiatives for making the automotive brand more attractive to target customers. Thus, a recommendation based on the vision statement is to develop Ford’s marketing mix or 4Ps in a way that strengthens customers’ trust in the company. Moreover, it is recommended that the automaker include more information about the strategic direction of the automotive business, to make the corporate vision statement more effective in guiding management and human resources toward the desired business goals.
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- Ford Motor Company – Form 10-K.
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- U.S. Department of Commerce – International Trade Administration – Automotive Industry.