Competitive strategies-General Motors (GM) and Ford Motor Company
Determine how General Motors (GM) and Ford Motor Company corporate cultures differ from each other
The corporate cultures of General Motors and Ford Motor Company differ considerably from each other. General Motors (GM) Company is mainly an American multinational automobile corporation with its headquarters in Detroit, Michigan. It is ranked among the leading auto manufacturers across the globe with regards to unit sales. The company hires more than 202, 000 employees (as of 2010) in 150 countries across the globe.
GM also has five different business segments or units in its operations. It manufacturers car trucks and brands in 36 different countries and famous brands under its umbrella include Cadillacs, Buick, Daewoo, Holden, Chevrolet, Hummer and Opel brands, GMC, Saab, Vauxhall and Wuling. In 2008, the company was ranked ninth publicly leading traded company globally (General Motors, 2013).
Ford Motor Company is also ranked the second leading auto manufacturing company across the globe representing $ 170 billion multinational business empire. Ford Motor Company is primarily identified as an automobile company even though it operates the Ford Credit, which generates about $ 3billion income and owns Hertz Corporation, the largest rental automobile company worldwide.
Ford Motor Company also manufactures automobiles under different brand names including Lincoln, Volvo, Land Rovers, Aston Martin, Jaguar brand and Ford. Ford Motor Company was however the first mover to venture into the automobile assembly lines and it gave the company an opportunity to benefit from large economies of scale.
The vision of Ford Motor Company is to be a global leading consumer company for automobile services and products (Ford Motor Company, 2013). Ford Motors as a result is a global family, passionately dedicated to offering personal mobility to people across the globe.
Analyze three ways in which each unique culture has significantly benefited from other company’s competition
The unique culture and cut throat competition between Ford Motor companies and General Motors has played a very crucial role in benefiting the company. The first advantage is the unique culture between General Motors and Ford has created joint involvement in the production of a new family or type of automatic transmissions.
Automatic transmission engines are also meant for a chain of new car brands, trucks and crossover vehicles. As a result, General Motors and Ford have announced that their engineers are joining hands in the production of a 9 and 10 speed form of automatic transmission. Currently, there are no auto manufacturers that have released 10 speed form of automatic transmission more specifically for passenger car use.
Accordingly, the 9 speeds and 10 speed form venture form of automatic transmission will benefit the two companies (Weiss, 2013). General Motors and Ford Motor Company have unique cultures that have been beneficial in increasing their market shares across the globe. GM and Ford Motor Company for instance have been increasing the US market margins via painstaking costs as well as capacity management (Heyne, Boettke & Prychitko, 2010).
Additionally, the two companies have gained their market shares in Asia significantly, more specifically in China. Thirdly, the unique cultures of the two companies as well as their venture into Chinese market have enabled them to benefit from strong Chinese Yen over the past years significantly.
Japanese, Honda and Toyota auto giants have also in the past years targeted many of their automobile production for the US market that imports an estimated 20 percent of their vehicles from Japan. Even so, strong Chinese yen has made the production of Japanese automobile considerably expensive thus, making it difficult for car manufactures in Japan to compete on the price thus giving an economic benefit to Ford and General Motors (Weiss, 2013).
Speculate how each will continue to excel of their present corporate culture will have to change in the future
The corporate culture of General Motors and Ford Motor Company has enabled them to be the present market leaders. Innovation in the automobile market plays a crucial role in defining the structure of market share. Even so, changing their corporate culture will affect the way in which the carry on with the business as well as market share. For example, there were speculations that many of GMs full size trucks will have more fuel efficient and smaller engines with significantly powerful batters and electric motors.
The company at present is focusing more on hybrid car production that will ensure fuel economy as well as current technology in their operation and production. GM as a result, will have to continue investing in automobile innovation as well as the latest fuel efficient engine technologies to maintain their positions in the market.
Ford Motors Company also anticipates its corporate culture in the near future by focusing more on fuel efficient automobiles and trucks. The powerful V8 engines in their trucks are also not fuel efficient and ever changing gas prices where the company must focus on production of fuel economy trucks to ensure that clients are interested. As a result, Ford will additionally have to engage in automobile research, development and technology to manufacture automobiles that are powerful and fuel efficient.
Ford Motor Company. (2013). The History of Ford Motor Company. Retrieved October 26, 2013, from: http://gearheads.org/the-history-of-ford-motor-company/
General Motors. (2013). History of General Motors, Company profile. Retrieved October 26, 2013, from: http://www.gm.com/corporate/about/company.jsp
Heyne, P., Boettke, P. & Prychitko, D. (2010). The Economic Way of Thinking. New York: Prentice Hall.
Ravasi, D. & Schultz, M. (2006). Responding to organizational identity threats: Exploring the role of organizational culture. Academy of Management Journal, 49, 433-458.
Schemerhor, E. (2012). Organizational Behaviour (12th ed.). Danvers, MA: John Wiley & Sons, Inc.
Weiss, C. C. (2013). Ford and GM team up on fuel-saving 9- and 10-speed transmissions. Retrieved October 26, 2013, from: http://www.gizmag.com/ford-gm-9-10-speed-transmissions/27103/