Compensation Management Using the Complete Rewards Approach

In today's business environment, the main goal of most organizations is to ensure that unique and distinct skills are built in order to acquire a competitive advantage in the market through the usage of the majority of their core competencies. Firms in industrialized countries are currently functioning in a highly regulated and difficult environment. The primary strategic objective of the enterprises is to forge a separate path forward by using the resources and core skills at their disposal in the face of the environment's influence and background. Firms seek to preserve a sustained competitive advantage by utilizing particular talents. Moreover, in domestic and international markets, competition among businesses are taking a new turn and new phase whereby performance and product quality are becoming significant to customers compared to price.

In such particular markets, the operative management of the development of new products is the primary essence of competitive advantage. As a result of such changes, there is a need to review a firm’s strategic capabilities and total rewards program. Therefore, this paper will describe the Ford Company concerning its capabilities, objectives, key goals, values, challenges and core competencies that are needed for the success of the company. Moreover, this paper will demonstrate the current total rewards philosophy of the Company and its three categories of an offering. Besides, the paper will describe the segmentation of workforce of the Company, describe the current requisite capabilities of the Company and competencies of the employees and recommended changes to the total rewards program.

Ford Motor company is an American worldwide automotive and mobility company with its headquarters in Dearborn, Michigan. The company was founded by Henry Ford and was incorporated on 16th June 1903. The company has an approximate of 201,000 employees and 62 plants globally. The core business of the company includes manufacturing, designing, marketing, and servicing Ford cars, SUVs, trucks and Lincoln luxury vehicles. For the purpose of expanding the business model of the company, Ford is taking advantage of emerging opportunities by investing in mobility, autonomy, and electrification.

Capabilities of the organization

The capabilities of the Ford Motor Company are very vital as it helps the company to maintain a highly sustainable performance of the firm. Therefore, the key capabilities of the Ford Motor Company that the management can exploit are discussed below.

Competitive Advantage

The Ford Motor Company launched a new and advanced strategy in the year 2000 that would help in focusing on the 21st century. The main aim of the new strategy was to increase the market share, the revenue of the company as well as the production of smart cars incorporated with fuel efficiency. The Ford Motor Company implemented a centralized system of decision making which permitted the firm to concentrate on the opportunities available in the market both internationally and locally. Through the implementation of this new centralized strategy by the Ford Company, the top management of the firm became highly engaged in developing products for the purpose of satisfying the needs of customers in different markets (Doz & Prahalad, 2013). This new strategy was significant for the company as it ensured the improvement of communication system ranging from top to bottom.

The Ford Motor Company implemented the strategy that ensured a low production cost of their product through the process of cutting and reducing the expenses and excessive costs that are involved in its operations. For instance, the company cut down the high expenses on raw materials. On the other hand, the company introduced an online manufacturing process that helped in focusing on the development of cars on one process compared to having separate segments of production and engineering. This strategy played a significant role in the company as it was cost effective and gave the advantage of the company over its competitors due to their lower costs of sales (Senna, 2013). The company focused on producing smart cars that were price effective and meet the functionality of traditional Ford cars.

There have been multiple factors that have led to the enhanced market position held by Ford. The company managed to fight bankruptcy at a time it was struggling to meet the financial obligations, the company successfully managed to gain stability without any support from the government. By managing to overcome this period without the governmental support, unlike their competitors, the company gained remarkable consumer trust. Secondly, the company has increased the market share, since consumers around the world widely accept its products. Lastly, the company has improved its technology, and currently offers smart cars, this expands the market share and increases the volume of their products largely (Doz & Prahalad, 2013). For the company to benefits greatly from the industrial recovery, it should focus on the consumer-oriented products and come up with valuable products at reasonable prices that with spur the company’s profits.

In the recent years, the fuel prices have increased which makes consumers look up to economic cars; the company has since ensured that it produces economic vehicles suitable for all social classes. Therefore, the Ford Motor Company have managed to produce some automobile models that are sold globally with some modifications, and they are known as world cars. In the future, the Ford Motor company is looking forward to developing additional world cars which will ensure standardized products are introduced into the global market (Senna, 2013). Moreover, the company introduced advanced technology, which was similar to that of its competitors but increased the modification and new perspective. The SYNC which is a tech gadget is a science sync-equipped in the vehicles that can help the driver by connecting many options. Additionally, Ford SYNC is a company that is fitted with integrated entertainment and communication systems that help in connecting users with the internet. This is a strategy the incorporated interface that is developed by Ford Company and Microsoft, and it operates in Microsoft Windows Embedded Automotive operating system.

Durability, reliable and quality products of the Ford Motor Company.

Over the past few years, the Ford Motor Company has been overlooked for durability. However, according to a survey done by J.D. Power, it was discovered that Ford Motor Company had taken steps to find solutions to the situation. The company has put several processes in place such as a particular check for each type of vehicle to ensure that quality of vehicles is achieved. Moreover, each part of the vehicle is virtually and physically checked, and strict quality procedures are taken before the release of the vehicles from the plant. According to Kristen Kinley, the quality communications manager, Ford Motor Company, “Vehicles are not released until they meet the company’s launch quality standards, which are more stringent than ever” (Power, Schlaggar, & Petersen, 2015) The Ford Motor Company managed to instill a quality operating system that is used in identifying the critical matters within the manufacturing facilities of the company.

Industry success factors

Some of the success factor that the Ford Motor Company possess for the purpose of remaining at the top of its competitors and get competitive advantage are discussed below.

Efficiency in Channel of Distribution

In the Ford Motor Company, cars are sold through the third party, and there is a lack of direct contact with the customer and the company. This is the reason why the company depends on a proper channel of distribution for the purpose of helping them gain the confidence of the company’s products (Sam, 2013). Moreover, the company has a distribution network of supply chain and assembly line that ensures quality and timely distribution of the goods and services of the company.

Key goals and objectives of the company.

The Ford Motor as an automotive company has several goals to accomplish in its quest to deliver its services to the people. For instance, the financial goal of the company is to increase the number of vehicles’ sales per year by an approximate percentage of 45 to 50 to a total of 9.3 million by the year 2020. Moreover, the company has a goal of significantly increasing its market share in different regions located outside North America, Africa, Asia-Pacific, Middle East and Europe (What are the Ford Motor Company's objectives? 2017).

The objectives of the Ford Motor Company concerning research and safety mainly looks at the improved technology and materials. The company is expanding and growing its Palo Alto Research and Innovation Center in Silicon Valley in California. Moreover, the company is establishing the Ford Blueprint for Mobility which has the main focus on the connectivity of in-car, improve vehicle safety and automated driving technology (What are the Ford Motor Company's objectives? 2017). Besides, the company is establishing additional advanced and innovative materials such as high strength, and military-grade aluminum alloy.

Regarding the sustainability, the objectives of the company include to increase the fuel-efficiency of the whole fleet of vehicles as well as reduce the rate which carbon dioxide is emitted from the production and manufacturing process of the company. Moreover, the company has come up with enormous sustainability goals such as increase in the use of renewable and recycled materials in its vehicles’ interiors, reduce the rate at which the volatile compound materials are emitted that affects the paintings in the vehicles, reduce manufacturing wastes and use of water (What are the Ford Motor Company's objectives? 2017).

Challenges of the Ford Motor Company.

Competitive positioning. The company faces stiff competition from other automobile industries. For instance, each automobile industry is aiming to expand its market as well as improve its performance. Moreover, the automotive competitors have developed and improved on the more appealing brands of their products that are threatening the competitive positioning of the Ford Motor company (Patrina, 2014). For example, the Toyota brands have become more popular, and it’s a threat to the company to take over the market.

Government regulations. The Company is a global company that carries out its operations in different countries, and therefore the political environment in these countries must be taken into consideration. Therefore, the government policies in these countries may impose certain rules and regulations that do not favor the growth of the industry (Patrina, 2014). For instance, the government may increase the rate of taxation that do not favor the production of products of the company. Moreover, the government can restrict the kind of products that enters the market, and this is a big threat to the company.

Economic conditions

There has been a decrease in the sales volume of the products of the company as a result of emerging competitors that develop their brands more often. This has made the company realize little profits from the sales of its products. Moreover, the market shift has been a significant challenge to the company that takes place in both local and international markets (Patrina, 2014). For that reason, the current economic market environment is unconducive for the company to come up with strategies to overcome these challenges.

Core competencies of the company

Some of the core competencies of the company include excellent manufacturing and distribution network because it expands to over 100 different countries globally. In addition, the automotive brands, as well as excessive brand designs, add to the strengths and core competencies of the company. Besides, the excellent customer services and quality assurance are the marketing campaign that helps the company to increase the volume of its sales (Sam, 2013). In the financial position of the company, diversity is a major part of the core competencies of the company because the automotive operations of the company are funded through diverse sources of funding. As a result of these core competencies, the company has managed to achieve a competitive edge from its competitors in the automotive industry as well as have a positive result on the entire industry (Sam, 2013).

Total Rewards Model.

Some of the total rewards model of the company include compensation whereby employees are given fixed and variable pay for their performance, meaningful benefits such as pensions and perks are given to retired employees. Moreover, the company ensures workplace flexibilities of employees, supporting their homes as well as their work life. The employees are given skills and feedback from their performance and happy productive workforce is evident in the company. Besides, the development of career opportunities such as development of employees and promoting them through performance appraisal is also practiced by the company.

References

Doz, Y., & Prahalad, C. (2013). Quality of management: An emerging source of global competitive advantage? Strategies in Global Competition (RLE International Business): Selected Papers from the Prince Bertil Symposium at the Institute of International Business, Routledge, 345--368.

Senna, A. (2013). COMPETITIVE ADVANTAGE FORD MOTOR COMPANY | NEWS WEEKLY-LOGISTIC. Retrieved June 29, 2014, from http://wpsenna.wordpress.com/2013/06/04/competitive-advantage-ford-motor-company/

Patrina, E. (2014). Managing the organizational development through global expansion: case study of Ford Motor Company. New University: Economics & Law, 52-56. doi:10.15350/2221-7347.2014.5-6.00056

Sam, D. (2013). Ford Motor Company Automatic Overdrive Transmission. 45-67. doi:10.4271/800004

What are the Ford Motor Company's objectives? (2017, April 29). Retrieved from https://www.reference.com/business-finance/ford-motor-company-s-objectives-a184c87c683c1266