Is Ford 2000 the right strategy for innovation? A management theory perspective

Abstract

• In consolidating its North American and European product development into five Vehicle Program Centers (VPCs) to develop cars for all markets, integrating its manufacturing, supply, marketing and sales into a worldwide operation, Ford is moving from a so-called multi-domestic strategy to a global one. • The question is if this is the right strategy for an automobile company that wants to offer new low cost and/or differentiated products to its customers worldwide. • This article advances three points: • First, that although the strategic change is appropriate, it may not have gone far enough. • Second, to get the best out of the strategy, in any case, Ford must implement it well, moulding the right organizational structure, systems/processes, and the right people in the right positions. • Third, it must integrate into its systems, the right information and communications technologies. Optimal performance requires a fit between strategy, structure, systems/processes and people. © 1997 John Wiley & Sons, Ltd.