Business 10th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell

Exercise 18

Planning Drives the Success of Ford Fusion
The release of the Ford Fusion was the culmination of six years of planning, implementation, and monitoring. Before the process began, top managers established the mission for the new vehicle as "the most talked about car of 2012." This guided the strategic plan during various levels of the project. The three goals for driving this strategy were to (1) become the company's highest volume car in order to gain market share, (2) offer customers unparalleled levels of choice, and (3) have green offerings.
When Alan Mulally became CEO, he instituted the One Ford Strategy. The One Ford Strategy unites the operations of the company through four clear objectives. The first objective involves having the ability to adapt to the current status of demand and change the model mix to achieve operational profitability. The second focuses on the rate of new product development while keeping customers' wants and values in mind. The third objective aims toward the improvement of financial planning. The final objective is focused on teamwork. This plan has helped the company focus their efforts and work together through a single approach toward the same goals. The plan also encourages measuring activities based on customer satisfaction and the happiness of employees and business partners. This allows the company to create high-quality, environmentally friendly, safe, and smart vehicles; create a durable and stable business; and contribute to the improvement of the world through sustainability efforts.
The One Ford Plan facilitated the collaboration between marketing and product development for the Ford Fusion project. This ensured the final product was cohesive both in design and market positioning. This collaboration was especially important to the execution of tactical plans for this project. The tactical plans focused on suppliers, design, parts needed, and marketing plans (channels that would be used, which audience would be targeted, and the determination of communication objectives). Furthermore, the team developed plans for potential capacity issues such as shutdowns or ramp-ups, as well as for scenarios in which there would be an over- or undersupply.
It is not enough to simply create plans-measuring the effects of a plan is imperative to successful execution. Ford uses a system called Launch Readiness, which began about two years before the launch with phase 1 or LR1. For example, Ford's marketing department measured consumer interest months before the Fusion was introduced onto the market by holding events and using "Build and Price" on Ford.com. This allowed customers to log on to the website and choose features, colors, and prices of the new vehicle. The company measured customer interest by determining how many people logged onto to the website and used Build and Price. The Fusion generated 1.6 million interactions, which was significantly more interest than any other vehicle generated. This phase also measured the various aspects of quality present in suppliers, design, and parts.
The operational part of planning is encompassed by LR2, the next phase in Launch Readiness. This phase focuses on execution and is informed by the previous phase. Details on the specifics of plans are established and refined, such as what events the company will attend and how they will use Facebook. This phase precedes the Final Status Review. Each of these phases serves as an overall control process for the entire project, and all phases are considered to be milestones that determine the project's progress.
The results of the Ford Fusion launch exceeded the company's aggressive expectations, and these significant results can be attributed to the level of planning the company engaged in. The Ford Fusion became one of the company's best-selling vehicles, second only to the popular F-150 pickup truck. The company also achieved another one of its goals by gaining two points in market share as a result of its new product launch. This is especially significant as a successful gain in market share in the automobile industry is one-tenth of a percentage point.
The Ford Fusion became one of the most popular vehicles in the mid-sized sedan segment because it offered consumers more luxury and choices than were previously available. They were able to choose from four different types of engines and two types of transmissions (6-speed automatic or manual). The Fusion also propelled the company toward one of its long-term strategic goals to offer economically friendly vehicles, which Ford has continued to introduce to the market. 39
How did Ford use strategic and tactical planning in its launch of the Ford Fusion?