Introduction

It is essential for a multinational organization to implement strategies for it to be able to operate

effectively in other countries. This paper will be looking at the Ford Company and discuss and
identify the factors that influence the implementation of global strategies in the Ford Company to
also determine the obstacles that might bare Ford from implementing global strategies. And
finally, bring out suggestions on how Ford Company might be able to prevent failure when
implementing global strategies.

Company overview
The Ford Firm came to being in the years 1903, it was founded by the man known as
Henry Ford, and the business has continued to remain under his family ownership since then.
The firm implemented and developed a production assembly line in 1909, as well as producing
vehicles and planes for world war two for the allies. The company has continued to operate
internationally since it first opened entered Canada with the aim of entering the commonwealth
market and opened the branch in 1904. For the better part of the 21st century, ford would remain
to be one of the most dominant manufacturers of Car in the market which it had successfully
created (Gulliford 2019.
Moreover, Toyota exported its first car to the United States of America in 1956 and
started gaining market share. With that, as the 21st century was nearing, the end ford started
facing a decline in market share as well as having difficulties of remaining competitive in the
world market place.
In the years 1996, the ford firm was able to launch the 'ford 2000' initiative in order to make sure
it streamlines supply lines as well as recognizing the firm global operations into a unit that is
more cohesive. Despite some significant successes, which include the streamlined organizational
structure and popular Ford Focus model, its product cost remained a top-notch higher than those
of its competitors. Ford would go on and make its biggest loss up to date in 2006 of 12.6 billion
dollars. Which coincided with the continuing market share deterioration, where most of those
loses were captured by General Motors and Toyota.
The company announced it would do restructuring in 2006 to be known as 'The Way
Forward.' The plan included the strategic orientation of a "One Ford" and closing the seven
assembly plants. The company operates in various different countries, Japan, Australia, the
United Kingdom, and America, among others. The strategy aimed at coming up with a standard
Ford personality that is felt and seen in each and every automobile the firm produces.
Additionally, the plan involved the standardization of Chassis globally as well as greater focus
on the essential nameplate of Ford. In 2008 the Company stripped some of its brand that is non-
Ford, and sold Land Rover and Jaguar to Tata Motors for 2.3 billion dollars. The company is also
trying to sell Volvo, which it had purchased earlier at round 6.5 billion dollars (Gulliford 2019).

Table: 1. Represents the market share of ford and its competitors

Major Influential Factors in the Implementation of Global Strategies
Theoretical
Strategy implementation can be described as s strategic management process aspect, a
process that is used to translate strategy into action. Implementation of strategy is all about the
managing resistance and change. The process of implementation might include important
changes in the firm systems, culture as well as structure (Robinson and Pearce, 1988). The
reasons as to why there is failure in implementation of strategies are the failure to meet the
required elements. Additionally, majority of the management functions- organizing, controlling,
planning, leading, motivating, integrating, directing, innovation and communicating are all used
in strategy implementation process Chang, 2016).
Some of the factors that are very important in the process of implementation strategy
involve mechanisms such as leadership style, budgeting, key managers assigning, information
system, control systems and rewards (Robinson and Pierce, 2009). According to (Balogun and
Johnson, 2004) Multinational firms have been willing to have significant flexibility in the
company as a way of responding to turbulences inside the organization through changing
structures that are hierarchical to the once that are modular. According to (Dayan, Heisig and
Matos 2017) determining factor in an organization is successful implementation of marketing
strategies. The employees are given close scrutiny in this new structured organization; here the
middle level managers are given the mandate of strategy implementation.
Most researchers in this field of strategic management have awarded a far much greater
significance to the strategy formulation process while viewing strategy implementation as just a
byproduct as and end result of planning process Robertson and Wind, 2003). Implementation of
strategy valuable insight are produced by being able to take a view that is broad, irrespective of
the complex and multifaceted company process of strategic management process. Collaborative
measures as well as issues are essential to any market strategy implementation effort (Duffy,
2018).
There are various scholars who have put an emphasis the significance of adopting a
global approach to business. These approaches that would best suit multinational companies in
order to help them navigate the current situation in the environment or are they are operating in.
nevertheless, the ideal strategy to tackle the markers globally had been the dispute matter. So
often do the scholars try to propose a view of strategy that’s evolutionary, that moves from an
international strategy that is simple to a transnational solution that is sophisticated. Therefore, as
a multinational company develops, it might decide to go on and source some mechanisms from
abroad, as well as standardizing some of its produces. This means that as there is development of
a particular critical mass, the company must adapt other more complex strategies to enable it to
tackle the international market.
The more the firm international presence keeps on growing, the likelihood of localization
strategy or multi domestic develops. In this type of strategy, the firm sets up subsidiaries in a few
different countries, which be likely to operated independently from one another as well as
comparatively from the headquarters. This kind of strategy puts more emphasis on
responsiveness locally; however this is achieved often at the expense of quality and costs. When
Multinational companies grow in size, they might get to that level where “global standardization
strategy” might become a strategic choice. The global strategy was initiated by (Abdolvand, et
al. 2015); he assumed that when there is globalization of products it leads to uniformity of
customer taste.
Additionally, in solution to the global strategy, most of the multinationals with a great
deal of international presence might choose the approach of transnational strategy. This strategy
was initially brought to the fold in the early years the strategy has a different view from the
global strategy. In the transnational the firms have a habit of producing products that are
localized which uses global expertise, resources and technology (Djodat, & Zu 2017). In a
simple level, a firm might make a decision to do investment in foreign companies. Furthermore,
a firm might as well restrict itself to franchising or goods exportation. Additionally, the
multinationals might chose to come up with an equity joint venture with a global or local firm, or
even creating and entirely owned subsidiary as a way of strategy implementation.
Factual:
The impact of political risk
One of the things that influence the strategy implementation in Ford Company is political
issues. Because the organization operates in different regions that has got different political
environment strategy implementation might be affected by it. When a country is experiencing
political turmoil it implies that the business will have to face negative consequences.
Legal issues
Ford company, given that it deals with global business, it has to ensure that it follows the
law and order of those nation it has operations in. the company should make sure it is aware of
do and don’ts because they matter most. Issues like the required minimal wage, insurance,
overtime among others. This is because they are essential when it comes to implementation of
global strategies.
Economic systems
The economic system is another major influence when in strategy implementation for
Ford Company. When Ford decide to approach a certain country, it is important to be aware of
the economic system tendency of the nation. The company should look out for factors like
inflation, which will influence the company implementation strategy of globe.
International and National accounting disparities
Another factor that influences Ford in implementation of global strategy is the
international and national accounting differences. According to Walton et al. 2003) historically
business accounting has been developing on national basis. There these disparities might be a
challenge to Ford Company and therefore it must ensure its implementation of global strategies
considers these this factor.
Barriers to Implement Global Strategies in the Company
Theoretical
There are two main hindrances to implementation of strategy; they are inadequate
communication and planning (Thompson, 2017). As per the assumption of Alexander (1985), the
obstacles of an effective planning are related to business plans content, planning as well as with
the rewards process that is crucial for an effective implementation of strategic plan. When it
comes to hindrances of strategic implementation there are some causes that depend on each
other and reinforces each other, they include; control of staff, top management lack of
commitment, corporate culture, as well as self-interests (Nishii, Khattab, Shemla and Paluch
2018.)
The implementation obstacles that face most companies when it comes to implementation
of global strategies are categorized in two areas: those problems which affect the firm externally
and those that are as a result of internal forces. The external forces according to (Taha 2018),
these forces include; new entrants threats, threat posed by substitute products, the buyers
bargaining power as well as the suppliers bargaining power.
According (Nagle and Müller 2017), suggested that strategy implementation which is
effective relies on structure, strategy as well processes. He further went on to suggest that in
order to have successful strategy implementation the company structure and culture requires
change, this is to ensure that the culture adopted is accommodation the strategy implemented.
Furthermore, organizational managers and leaders tend to differ with the strategy implementation
models uncertainty; they have a habit of looking at the uncertainty from a big number and variety
of processes and elements in the models thus leading to an effective failure in strategy
implementation (Noe, et al.2017).
 (Djodat, & Zu 2017), suggested that the route to a strategy implementation which is
effective is filled with bottlenecks. Probability of failing of plans is contributed and heightened
by that route followed in execution of the plans. Availability of individuals in formulation and
execution of plans brings out problems in the strategic plans effectiveness. The strategy
execution has been associated with the change of structures, responsibilities, objectives among
others. Additionally, insufficient knowledge, inability to share knowledge as well as having
unclear strategies is a recipe for planning an ineffective strategy.
(Taha 2018), suggested that organizations leaders are majorly regarded as the strength
strategy planning but only minority of the leaders or managers have the capacity to make sure
implementation of strategy takes place. This is because most managers put their emphasis on
enhancing the formulation process instead of implementation as well as making sure plans
followed as stipulated by plans. Furthermore, the implementation difficulties are, moving away
from the goal, failure to do modification of the plan periodically as well as the lack of confidence
in achievement of success.
Moreover, (Noe, et al.2017). implied that the biggest obstacles to strategy
implementation are; lack of commitment from the top management, the lack of accountability,
power and influence, the inability to understand why strategy is being executed, poor employee
instructions, culture, not sticking to the objectives, change of employee responsibilities
unclearly, inability to reward employees for strategy execution, insufficiently understanding of
organizational goals by employees and lack of use of information system among others.
Factual:
Barriers That Ford Faces In Its Implementation of Global Strategies
Supplier power
Supplier power is a threat to Ford and it brings out itself in various different ways, given
that the raw materials applied in production of vehicles are being supplied by many across the
world, the intermediate parts presents a major problem. Most of the supplier relies on contracts
with two or one automobile companies; therefore if there is strategic change in production at the
Ford Company it can drastically affect the supply chain stability (Gulliford, T., 2019).
Failure to have Project Alignment
Failure to have project alignment is one of the reasons that Ford Company faces when it comes
to strategy implementation. This means to compare the company projects, either future or present
and check whether they correspond with the strategic goals or not. And if it does not correspond
the company should re-prioritize the resources and the project. Failure to this means that there
will be a problem strategy implementation.
Lack of communication
Lack of communication within the organization is a hindrance to the Ford Company in the
implementation of strategic goals (Gulliford 2019). When there is lack of communication it
becomes difficult to be able to execute a strategy this is because the strategy is not well
understood. Ford has been facing this problem but in recent years its finding a way of tackling
the issue to ensure smooth strategy implementation takes place.
Inability to Reward Employees
The Ford company in the past has been faced with the inability to award good work, which has
gone on to hinder their process of implementation of strategy in their organization, in order to
face the current prevailing environment given the company is multinational. Giving rewards for a
job well done means things will be done in a quicker manner.
Lack of Employee Alignment
The inability to define the responsibilities of employees in a clear manner has hindered the Ford
Company to have a smooth strategy implementation. This is caused by the fact there without
clear definition of responsibilities employees get confused on what their responsibilities is. In
most cases most employees want to have that feeling that they are making contributions that are
meaningful to their organization.
Suggestion on how this company can prevent failure to implement its global strategies
Theoretical
According to (Spyropoulou, et al. 2018), it is a necessity for an organization to understand the
environment of the country it’s venturing into in order to prevent failure to strategy
implementation. He further suggested that the company must invest ‘time and money into
analysis and research on the on competitive capabilities, customer needs as well as economic,
political, technological and social trends. And for the organization is useful it requires getting
to a higher plane and structure its research in order to cover insight which is able to provide
the real competitive edge. This will ensure the organization is bale to implement its global
strategies.
According to (Akerman, 2018), friction in an organization cannot be eliminated because its
nature of almost every organization to have frictions, but they should be minimized.
(Spyropoulou, et al. 2018, continue to suggest that friction can only be minimized through
positive, communication, culture, constant repletion as well as clear responsibilities of
allocation of the strategy. Even though the above things will not make the process of
executing strategy an easy one, they somehow make the process much easier, thus eliminating
difficulty.
.
Factual
Developing Strategy Strategically
The act of building a strategy plan is only half the challenge. But the remainder if the half is
doing everything to get it executed. The Ford Company should make sure that in its creation
(strategy) all the key stakeholders are involved, because all the stakeholders in put is essential in
the output. Ford firm should that these stakeholders should be a part and the parcel of the
strategy process, in the finalization of the strategy.
Full Commitment
The Management of Ford firm must make sure that they are committed as well as being aware of
how the strategic plan help to improve the was Ford firm does its daily operations. Failure to
have the necessary knowledge is the reason as to why the business might fail to implement its
strategy.
Having he right people at management position
The only way the Ford company can be able to avoid failure of strategic implementation
is by making sure it has the right personnel at the highest offices. These are leaders who
understand the importance of strategic implementation, not just leaders to fill the positions in the
organization. This will ensure that that the strategic implementation process does not fail.
Conclusion
Strategy implementation is important for the survival of any company in the world. There
are many factors that influence its implementation. The Ford Company must adapt other more
complex strategies to enable it to tackle the international market. Additionally, it is a necessity
for an organization to understand the environment of the country it’s venturing into in order to
prevent failure to strategy implementation. And finally, the inability to define the
responsibilities of employees in a clear manner has hindered the Ford Company to have a smooth
strategy implementation.
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