1. Describe Ford’s international strategy prior to the arrival of CEO Alan Mulally in 2006. What were the advantages of this approach? What were the drawbacks of the company’s strategy?
When CEO Alan Mulally participated in Ford in 2006, he realized a product which was produced in Europe was more different from the product produced in the U.S. It meant the product was similar to each other, but it was different from the designs, parts, and processes of the plant. The difference was to satisfy the customers' various preferences and tastes, being a style of common thoughts. It made a feeling of satisfaction for the customers. What if the products satisfied both customers in Europe and the U.S, but were still produced in the different ways, implying for Ford Focus. It seemed Ford moved in a rut of the thoughts. The Mulally's approach could get decreased costs of production based on the advantages of the economy of scale. However, it needed to restructure the Ford's organization, and it could decrease the diversity of the products.
2. How did Ford’s international strategy evolve after Alan Mulally took on the leadership role at Ford in 2006? Why did the company change its approach to foreign markets? How will Ford’s new strategy help the company compete going forward?
Mulally realized the same product, such as Ford Focus, was produced in different ways when it was sold in the Europe and the U.S., so he thought of Ford's international strategy by the unification of the producing process in the different markets. And then the global financial crisis happened in 2008, as well as Ford's care came from the competition with other firms in cheap car markets of China and India. Both incidents strengthened the Mulally's approach and urged Ford to carry out Mulally's One Ford strategy, being a car platform used for every Ford plant in the world. The strategy could help Ford to decrease costs of production in the global market, inherit experiences of plants in different places, and strengthen the competition in new market such as China.
Management Focus: Local Responsiveness at MTV Networks
1. How would you characterize MTV’s initial strategy in Europe? Why was the strategy unsuccessful?
MTV's products are a style of culture, such as using languages, stimulating preferences and tastes, but it was subjective to lead the initial strategy didn't understand the tastes of its audiences. It seemed it brought American programs to Europe without proper changes for its audiences. Although the European audiences liked the programs, they also more liked local programs with local tastes, produced by local competitors. Therefore, the strategy failed.
2. What type of strategy has MTV implemented today? What did MTV learn from its mistakes in Europe? How did it apply this knowledge to other markets?
Today, MTV has implemented locally proper programs to attract the interest of its audiences. The localization has gotten the audiences back from the local competitors. MTV learned a great lesson from its mistakes in Europe when it realized its programs lacked the local taste and preference, a significant factor of an entertainment program. After that, it changed its strategy from 1990s. It has produced the programs with more local contents, although the programming ideas have stemmed from in the United States. From then on, when MTV invested the programs in other countries, such as India, Italy, and Brazil, it has used the local language, such as Hindi and English, Italian, and Portuguese. Also, "MTV Kitchen" follows the tastes of Italian, and "Erotica" and discussing sex for the youngsters broadcast in Brazil. Through the new strategy, MTV has gotten the audiences back.
