There are a lot of businesses, out there, millions in fact and of those millions only a small percentage is a house hold and recognized name around the world. One of the brand names that everyone, everywhere, recognizes is Ford. Ford cars have been a staple in the industry ever since the beginning of the automobile and the Model-T. So how does a company stay in the game for so long and continue to be so profitable? Here’s Ford’s strategy. It never hurts to look at the models of success when starting your own.
Ford outlines four major points that they follow to stay at the top of the game.
-“Aggressively restructure to operate profitably at the current demand and changing model mix”
-“Accelerate development of new products our customers want and value”
-“Finance our plan and improve our balance sheet”
-“Work together effectively as a team”
These four components are called the ONE Ford plan. All of these points have not only been proven to be successful but are also applicable to all businesses.
The first point targets internal ways to stay ahead of the game and at the top of the market. You always need to think, what can I change to fit the current demand of the market? You should never be stuck or married to one strategy; businesses that adapt are businesses that succeed. But it is good to hold on to the things that work. One thing that Ford has been doing for years is allowing customers to buy used Ford cars. With the global economy the way it is, people are looking to save and buying a used model is one way to do that. It keeps customers happy and Ford on their minds.
Another thing Ford has been doing is working on fuel-efficient cars as the future of the business. Developing 55% cars in the small category over the last 20 years moving forward. They have also been working on technology such as EcoBoost, six-speed transmissions, direct injection of gasoline, and hybrid and hybrid plug-ins. This green strategy not only helps the environment but also is what people want. This is an example of their second point in their model. They strive to make new products that people want.
Their third and fourth points may be their most important. You always have to have your finances in order. If your balance sheet is out of whack you can’t move forward. You won’t know how much money you have to expand or invest in new products. There is no reason that your books should be out of order. Control the things you can to be successful.
Working as a team is important in any capacity from sports to businesses. You want not only your employees to get along and follow a strict code of ethics, but you need to do the same as well. Be a leader and lead by example, this can be one of the best ways to start your business off right. Ford has a strict policy of behavior that all employees are to follow. Having a code of conduct for your employees puts everyone on the same page and held to the same standards. This leads to happy employees, which leads to a happy workplace, which leads to happy and repeat customers. It’s a classic domino effect that can be the difference between ending the year in the black instead of the red.
These are strategies that Ford has used for years and they have been an influential company from the start. Follow in their footsteps and turn into a global powerhouse.