Cultural Differences and Change in the Ford’s Company
Introduction
Continuous change is one of the major characteristics of successful companies. To meet new challenges, a firm should be able to consider the existing environment and alterations in clients’ demands, visions, and expectations (Abramson & Moran, 2017). These factors critically influence the functioning of any organization and its revenue. Additionally, Carnall and Todnem (2014) state that the current degree of market globalization demands increased attention to diversity. The cultural differences existing among various clients should impact the final product as it ensures it will be popular among the targeted audience and help the company to generate a competitive advantage to survive and struggle against the closest rivals (Vaara et al., 2019). Under these conditions, the ability of different structures to cope with challenges depends on management’s vision of change and its ability to consider all factors relevant at the moment.
The following paper focuses on discussing Ford’s experience regarding its globalization efforts and the desire to create a single worldwide business model capable of meeting the diversified demands peculiar to various regions. Considering the desire to integrate regional units into one effective model, Ford devotes attention to structural changes emphasizing the ability of departments to meet expectations, satisfy clients, and enter multiple markets. The paper discusses the importance of cultural aspects regarding the planned change, the significance of sustainable model integration, and how structures can adapt their functioning to remain effective and ensure the company continues its growth and generates a competitive advantage.
Ford’s Strategy
The proposed case demonstrates Ford’s company intends to become a global and successful business by altering its work. International development needs single leadership and the creation of successful teams with the ability to analyze the current situation and respond to alterations in clients’ demands and the state of the market. For this reason, the company plans and implements numerous transformations in the work of its departments. Ford has created a single global unit for technology development to ensure no aspects are disregarded. Moreover, the global cycle plan for the product launch was introduced to guarantee the company can align the functioning of all its departments. Thus, these alterations are expected to promote a positive change process and improve outcomes.
In such a way, Ford’s attempt to consider globalization and integrate a single model for coordinating the work of all its units is influenced by its past experiences and existing conditions. The diversification of clients’ demands, along with the desire to enter new markets, means structures need to cope with a variety of change processes to ensure the company evolves. It demands reconsideration of previous strategies and shifting priorities toward integrating new methods of working with clients (Taras et al., 2021). The process depends on the flexibility of existing units, their ability to adapt to new conditions, and management’s vision and efforts to support positive change. Fort supports incentives aimed at improving the company’s ability to work in a globalized world and cooperate with various clients.
Horizontal and Vertical Models
One of the factors helping Ford to initiate a positive change process and attain positive outcomes is the consideration of vertical and horizontal management and integration models. The first business structure means that decisions flow from top to bottom, while the second one implies decision-making made at various levels (Champion, 2014). These models also influence planning and getting results from particular actions. Having launched a centralized and vertical single technology unit, Ford also cultivates horizontal integration, meaning that decisions can be made closer to place (De Gersem, 2020). The employment of a mixed model provides the company with several advantages. First of all, it saves control over the situation and can introduce strategies approved by the senior management (Sroufe, 2017). At the same time, the horizontal model means that the departments working in various regions acquire a higher level of flexibility and can devote more attention to cultural differences and local clients’ demands. It guarantees the adaptability of structures and their responsiveness.
Cultural Differences
Cultural differences should also be viewed as one of the factors influencing sustainable change and Ford’s globalization attempts. Hayes (2007) assumes that the diversity in demands peculiar to the international market results from significant globalization processes. It means that companies’ attempts to enter different regions lead to the discovery