Strategy formulation can be seen as the process by which managers select the plans for their

organisations to outperform the opposition. They will, however, need the information to formulate

alternative plans and base their decisions on$.$ It will help managers to understand the competitive

dynamics of the industry and the competitive position of their company within the industry.

$5$ HBMN$300-1-$Jan$-$June $2024-$FA$1-$RP$-$V$\mathrm{.}3-06112023$

Strategy selection is influenced by the potential market size, ease of entry and exit to that market

and whether there are economies of scale in the new market.

Taking that Ford had to consider these influences, measuring them against their set criteria for

success within a region, like price advantages, product quality, cost position for production, and

facilities and skilled labour. The current status of Ford in South Africa can justify this assumption.

They are assembling high$-$quality vehicles in the largest, most modern assembly plant in the

Southern Hemisphere at a very competitive price with a skilled labour force. Formulating the

best strategies also demands that organisations such as Ford Motor Company understand and

anticipate their competitors$$ strategies.

The aforementioned suggests that their managers making strategic decisions should also use a

competitor analysis to profile their strategies and objectives. Identifying basic strategic intent,

identifying the use of generic strategies, identifying offensive and defensive competitive

strategies, and assessing the current position of competitors are all steps in formulating a

competitive analysis. This analysis would assist Ford Motor Company of Southern Africa in

formulating the most effective strategy against its rivals for market share in the region.

For example, the South African motor vehicle industry has high growth rates, and Toyota follows

a focused cost leadership strategy for their Hilux $4$x$4$ vehicles in a country where they have a

majority market share; it would then make sense for Ford to consider a differentiation strategy

in which Ford should invest and expand this market for their Ford Ranger $4$x$4$ range.

Adapted from:

Du Bruyn, L$.2005.$ The Strategy and Structure of International Business: Ford $2000$

$($Restructuring in a Multinational Global Organisation$).$ Journal of Contemporary Management.

$(2$Critically analyse the steps required for effective strategy formulation and implementation to take

place at Ford Motor Company$$s South African operations.$)$:$46-56.$