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HRM2
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HRM2
Diagnostic Model
The selected diagnostic model is the 7S diagnostic framework which is used to analyze and assess various aspects of an organization. The diagnostic model was developed by Tom Peters and Robert Waterman, management consultants in the 1980s. This model consists of seven interconnected elements namely strategy, structure, systems, staff, style, and skills which collectively influence an organization’s effectiveness and performance (Park, Yoo & Lee, 2021). Through these elements, the model can provide a practical diagnosis of an organization.
Ford Motor Company
Strategy
The strategic focus of this company centers on investment in electric vehicles (EVs) and self-driving technology. The alignment with market trends and sustainability goals positions it for future success.
Structure
Ford’s restructuring plan aimed to streamline operations, reduce costs, and enhance efficiency. To successfully transition to EV requires adjustments in the organization such as streamlining the production process and realigning the supply chain.
Systems
Ford is currently undergoing various changes to accommodate the production, distribution and supply of EVs. However, it faces hurdles in the international markets such as Europe and China.
Shared Values
The company is committed to producing electric vehicles in a bid to realize its sustainability and economic goals. These are the factors that drive shared value. However, it is important for it to balance its traditional legacy with new and innovative approaches.
Skills
The workforce at Ford needs to be upskilled so that they are better equipped to handle EV technology and related sustainability practices. This process requires competency development to prepare employees for the transition.
Style
Ford needs to develop an agile, adaptive and forward thinking leadership that will enable it to navigate the transition form combustion engines to EVs.
Staff
Ford should invest in highly competent staff that is skilled in different aspects such as the development of EV, data science, sustainability and battery technology. This means that recruitment and retention are crucial elements in the execution of a successful EV strategy.
General Motors
Strategy
GM is strategically focused on the production and distribution of EVs. This is evidenced by its Ultium platform and advanced battery technology that driver its innovation practices. Its commitment to EV is a strong indicator that it has aligned with global sustainability goals.
Structure
The organizational structure is aligned with the company’s EV focus. This organizational structure enhances agility and responsiveness. For instance, the Cruise subsidiary accelerates autonomous vehicle development.
Systems
All GM systems are designed to support the production of EVs. For instance, the company has enhanced the manufacturing of EV batteries and charging infrastructure and streamlined its supply chain. However, challenges such as resistance form dealers and complexities in the supply chain still persist.
Shared values
The core values that drive GM are innovation and sustainability since it is focused on balancing the needs of the environment and making profits. These shared values guide decision-making and stakeholder interactions.
Skills
GM’s workforce needs specialized skills in EV technology, software development, and data analytics. Continuous learning and skill development are essential for staying ahead.
Style
GM’s leadership style must be visionary and adaptable. Navigating industry disruptions such as electrification and autonomy requires agility. Bold decisions and forward-thinking approaches are paramount.
Staff
GM’s talent pool should include engineers, designers, and EV specialists. Attracting top talent and fostering innovation are critical success factors. A diverse workforce drives creativity and resilience.
SWOT Analysis
Ford Company
Strengths
Ford’s long history and brand recognition provide a solid foundation. It also has strong financial capability which enables investment in EVs and innovation. The company’s strategic focus on electric vehicles aligns with the industry and this illustrates its commitment to EVs (Katiyar, 2021).
Weaknesses
Ford faces hurdles in international markets such as Europe and China where it has to deal with regulatory challenges and acceptance. Navigating the transition from tradition to innovation is also very complex.
Opportunities
The global shift toward EVs presents growth opportunities for Ford since it is already strategically aligned to meet this demand. Its strategic partnerships will also enhance its EV ecosystem.
Threats
Ford faces two major threats; intense competition and technological disruptions. Currently, rival automakers are heavily investing in EVs and rapid technological advancements may impact its strategic plans (Yu, 2024).
General Motors
Strengths
Its unwavering commitment to an all-electric future sets it apart from all its competitors. Its Ultium battery technology is also at the forefront of driving innovation (Weiss, 2021). Ford also has a strong R&D which significantly bolsters its market position.
Weaknesses
Some of Ford’s dealers may resist the shift to EVs. Managing the EV supply chains may therefore present challenges for the company.
Opportunities
By introducing more EV models, Ford can capture market share. It can also leverage its global presence for EV adoption.
Threats
The competitive landscape and regulatory changes are the major threats that Ford faces. Rival automakers are aggressively pursuing EVs and the evolving regulations on auto-making can severely impact its plans.
Effectiveness of Changes Made
Both companies have made commendable strides toward electrification.
Ford has very strong financials and its commitment to EVs makes it stand out in the market. However, its main challenge is the ability to balance tradition and innovation. Generally, Ford’s progress is commendable but there is a need to address the challenges on the international front because these may impede its international market position.
For GM, there is a clear focus on EV, and its robust R&D and Ultium platform will not only drive innovation but also position it as a leader in the global markets (Xu, n.d). However, it needs to address its dealer resistance challenges and supply chain complexities if it hopes to maintain its position.
Areas of Resistance and Strategies
The first potential area of resistance is workforce adaptation to EV technology. To address this, companies need to implement robust training programs to upskill the workforce. Training should cover EV technology, battery systems, and maintenance. The second potential area of resistance is dealer pushback against EVs since they are accustomed to traditional combustion engine sales. The companies need to engage their dealers in the transition process. They can do this by providing clear communication about the benefits of EVs, profitability, and long-term viability. They should also address their concerns and involve them in decision-making. Cultural shifts towards sustainability may also present resistance since it requires overcoming inertia and changing mindsets. The companies need to communicate their long-term vision of sustainability. They can realize this by engaging employees at all levels, emphasizing the positive impact on the environment, society, and the company’s reputation, and fostering a culture that values sustainability.
Recommendations
Ford Motor Company
Ford should expedite the introduction of new electric vehicle (EV) models to capture market share. Timely launches will demonstrate commitment and keep pace with competitors. It must address challenges in international markets (such as China and Europe). Expanding global reach will diversify revenue streams and enhance brand visibility. The company should encourage a culture of creativity, experimentation, and risk-taking. Innovation drives sustainable growth and ensures Ford remains at the forefront of industry trends.
General Motors
GM should proactively tackle supply chain complexities related to EV components. Streamlining logistics and ensuring the timely availability of parts is crucial. Its Ultium battery technology is a competitive advantage but there is a need to maximize its potential by integrating it across the entire EV lineup. GM should foster cross-functional collaboration among different divisions (e.g., EV, R&D, marketing). This is because siloed approaches hinder innovation while seamless collaboration accelerates progress.
References
Katiyar, A. A. (2021). Ford Motor Company: Looking for a ‘charger’?. https://run.unl.pt/bitstream/10362/122855/1/202021_fall_40547_aayush_amod_katiyar_part_1.pdf
Park, H., Yoo, Y., & Lee, H. (2021). 7s Model for technology protection of organizations. Sustainability, 13(13), 7020. https://doi.org/10.3390/su13137020
Weiss, P. (2021). Better battery management boosts electric vehicle prospects.
Xu, R. Analysis of General Motors Company between 2018-2020.
Yu, Y. (2024). Market Competition Analysis and Strategic Research of Ford Motor Company. Highlights in Business, Economics and Management, 24, 1263-1273.
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