Activity: Basket of Businesses

People working together on a corporate strategy

Required Preparation

Before this activity, please complete the following:

  1. Read the assigned reading, “Corporate Strategy”
  2. Complete the corresponding Canvas quiz.
  3. Watch the assigned videos:

Why Ford And VW Shut Down Their Multi-Billion Dollar Self-Driving Project

Optional Video:

Ford's Fight To Remain An American Icon

Ford’s Fight for Relevance in a Fast-Changing Market

Description:

This activity challenges you to apply global strategy concepts to how Chinese electric vehicle(EV) manufacturers approach US and other global markets. You’ll work in teams to analyze and describe how these concepts manifest in this real-world example.

Learning Activity: Applying Corporate Strategy Concepts to Ford Motor Company

Learning Objectives: Upon completion of this activity, you will be able to:

  • Analyze a company’s portfolio decisions, including which businesses to own, control, and exit, and how they achieve synergy.
  • Evaluate a company’s scope decisions, such as backward integration, forward integration, and horizontal diversification.
  • Identify and assess a company’s mode of entry decisions, including alliances, joint ventures, and long-term market relationships.
  • Discuss a company’s governance decisions, such as centralization vs. decentralization, autonomy vs. coordination, and the role of organizational culture.
  • Apply the concepts of portfolio decisions, scope decisions, mode of entry decisions, and governance decisions to analyze the corporate strategy of Ford Motor Company as presented in the videos.

Instructions:

  1. Watch the Videos: Watch the following two videos carefully:

  2. Apply the Concepts: For each video, analyze the corporate strategy decisions made by Ford Motor Company using the following concepts from the “Corporate Strategy” reading. Make sure to refer to specific elements or examples from the video in your analysis where relevant.

    • Value Creation via Portfolio Decisions:
      • Based on the video, what different businesses or segments does Ford operate in or has it exited? What might be the rationale behind these portfolio decisions?
      • Does the video provide examples of how Ford attempts to connect its different businesses to achieve synergy?
      • How does Ford seem to exercise control over its various business units or investments, as suggested by the video?
    • Scope Decision Analysis:
      • Does the video illustrate any instances of backward integration by Ford (e.g., acquiring suppliers)?
      • Does the video show examples of forward integration by Ford (e.g., expanding into distribution or retail)?
      • Based on the video, has Ford engaged in horizontal diversification (entering new product categories or industries)?
    • Mode of Entry Decisions:
      • Does the video mention or show Ford using alliances or joint ventures for specific initiatives or markets?
      • Are there any indications of Ford making corporate venture capital or non-controlling equity investments in other companies, as depicted in the video?
      • Does the video highlight any long-term market relationships that are crucial to Ford’s corporate strategy?
    • Governance Decisions:
      • Based on the video, does Ford’s decision-making appear to be more centralized or decentralized across its various units or regions?
      • How does Ford seem to balance the autonomy of its different business units with the need for coordination, as suggested by the video?
      • Does the video provide any insights into Ford’s organizational culture and how it might influence its corporate strategy?
  3. Discussion: After analyzing both videos, be prepared to discuss your findings with your classmates. Compare and contrast the different corporate strategy decisions made by Ford as presented in the two videos. What key themes or approaches do you observe?

Remember: This is an in-class learning activity designed to facilitate discussion and deepen your understanding. The primary deliverable is a rich and interactive discussion within your group and with the class.

Self-Assessment:

  • Active participation in group discussions
  • Clarity and accuracy of the competitive advantage analysis
  • Depth and relevance of concept application to the video content
  • Effectiveness of the presentation in communicating insights