Answer to Question #265523 in Management for amit

Question

3.You are the CEO of a US based automotive major Ford motors in India. Your company is facing tough rivals like Hyundai & Kia Motors. You have been operating in India since several years. During 2021, there has been a steady decline in your revenues & profitability. Your market share has also fallen from 4.69% to 3.31% during 2021. Your competitors are eating into your market share slowly & steadily during Covid-19 pandemic times. (Please assume that Covid-19 pandemic is over).

b. In your opinion, would it be considered appropriate to pursue a Joint Venture Strategy or should “Ford Motors” go it alone in India? If Yes, state your response with appropriate justifications & reasons & with which vendor? If No, state your response with appropriate justifications & reasons? (5 Marks

Answer 1

3(a)

Cost efficiency in organizations can be defined as changing a business process in order to work in a more profitable and better way and has the advantage of improving efficiency, generating more cashflow and decreasing costs. For the Ford company in India this strategy is aimed at generating more revenue and restoring the market share that the company previously enjoyed.

3(b)

The Ford Motors company should approach its competitors for engagement in a joint venture as a way of increasing their revenues and market share. Joint venture has the advantage in that it will help the Ford Company access new markets, tap into more skills and new technology and reduce the business risks and operating costs (Tien et al, 2019). The process will also come with its fair share of disadvantages like misunderstandings between the firms in the joint venture and differing levels of expertise between the different staff.

References

Tien, N.H. and Ngoc, N.M., 2019. Comparative Analysis of Advantages and Disadvantages of the Modes of Entering the International Market.  “International Journal of Advanced Research in Engineering and Management, 5(7), pp.29-36.