Strategy Implementation and Monitoring
Visit the website of the Ford Motor Company, and go to the Investors page. Look around the page (there is a lot of excellent information here), and search for information related to the organization’s structure and controls. Then, locate the company’s most recent Annual Reports and 10-K filings. After completing some research at Ford’s website, the library, and on the internet, address the following:
- Describe the organizational structure at the Ford Motor Company (what form of structure does the company have?). Include any information you can find regarding the company’s Board of Directors and the company’s committees. Is the Board a diverse group of individuals?
- Describe the organization’s culture. How well does the company’s values statement align with its culture? Is the culture at Ford Motor Company an inclusive work environment?
- Do some research at the Ford Motor Company website and in the library (be sure to look at trade magazines and newspapers as well) and find as much information concerning the company’s control systems as you can (budgets, inventory control, annual objectives, functional strategies, policies and procedures, personnel evaluation systems, or other). Describe these controls, and discuss how they assist in keeping Ford Motor Company strategies on track.
Module 4 – SLP
The Module 4 SLP requires that you run a simulation titled: “The Platform Wars: Simulating the Battle for Video Game Supremacy.” Visit the Forio site and access the simulation.
As the Chief Executive Officer (CEO), it is your task to make decisions one year at a time. As you do so, note how key data are changing, and take note of how your pricing, changes made to royalties, and new game subsidies change your profits and your market share. You may need to go through at least one practice run of the simulation in order to become familiar with it.
At the start of the simulation, your market share is 50%. The price of your video game console is $250. Note that your competitor’s market share is 50%, but your competitor’s console price is $261.00 (hint: you are vastly underpriced to begin the simulation).
One way of becoming familiar with the simulation is to change only the value, leaving the others constant. This will isolate the impact of one variable and will give you a sense of how the change in a single variable impacts revenue, market share, etc. (use the Dashboard and the financial statements to determine this).
For example, if you leave all variables unchanged in Year 1 (price = $240; Game titles to subsidize = 3, and Royalties = 15%), your market share becomes 69% at the end of Year 1 (and my net profit is $48.0M).
In contrast, if you reduce the console price to $230, your market share will become 71% at the end of Year 1 (net profit will be $33.6M). Importantly, if you increase the console price to $330, your market share at the end of Year 1 is 58%; however, your net profit is $140.8M.
As the CEO, your task is to find the best combination of changes in the three variables that both increase your market share and earn a maximum net profit. Remember that the changes are relative; there are no right or wrong answers.
Be sure to take note of how the statements may be used to “control” your strategy. Remember that you need to cover your costs while simultaneously turning a profit and increasing your market share. For this SLP assignment, follow the assignment steps below for your three full-page paper with two scholarly sources.
- Go to Platform Wars: Simulating the Battle for Video Game Supremacy https://forio.com/simulate/mit/video-game/simulation/
- Click on “Play as an individual.”
- Enter your first name as the “Screen ID,” then click “Login.”
In this web-based simulation, run the simulation a minimum of three times, noting the changes made each year, as well as your final results. Each year, you have three decisions to make:
- Determine the selling price of the video game console.
- Determine the number of video games that your company will subsidize to enhance the development of new video games (and that can be played on your company’s video game console); be sure to note that the subsidy of each new game costs you $16.2M each year; and
- Determine the royalty percentage you will require game makers to pay you (the higher the royalties, the more revenue you earn on new games, but the less inclined game makers are to develop new games).
- Develop and discuss in your paper a table that shows the results from each simulation.
Discussion: Can Organizational Culture Be Managed?
Some organizational theorists would assert that an organization’s culture cannot be “managed” in the truest sense of how one “manages” the processes and activities, and things that exist within an organization. David Campbell (2000) says that an organization “is being constructed continuously on a daily, even momentary, basis through individual interactions with others” (p. 28).
Consider the sheer multiplicity of formal and informal groups, structures, tasks, functional operations, and individual interactions that exist and occur within very large organizations; these are seemingly endless. Consider as well the potential number (and combination) of individual to individual, individual to group, and group to group interactions that are likely to occur on a momentary basis within an organization (and then, there are the seemingly endless numbers of contacts/interactions with external stakeholders as well).
For this assignment, please discuss the following:
- What is organizational culture?
- Can culture be managed in the same way that other systems and processes can be “managed”?
- Depending on your answer, what does this mean as to the use of culture as a “strategic control”?
Module 4 Reflective Discussion
In the Module 4 Reflective Discussion, please reflect (200 words or more) on the course by responding to the following:
- What concepts were most interesting to you?
- What concepts and ideas learned in MGT499 will be most useful to you?