FORD MOTOR COMPANY: ELECTRIFICATION CHALLENGE
CASE STUDY SOLUTION
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SYNOPSIS
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In 2020, Ford Motor Company (Ford), a global automaker, embarked on a transformative journey toward
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electrification with the introduction of the Ford Electric Vehicle Strategy. This case examines Ford’s
approach to meeting the electrification challenge, particularly in response to California’s Executive Order
N-79-20, which mandated the phase-out of gasoline-powered vehicles by 2035. The case provides insights
into Ford’s activities and highlights the challenges and opportunities inherent in the electrification space.
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OBJECTIVES
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• Apply critical thinking to evaluate corporate strategy. Students will evaluate the effectiveness of Ford’s
strategy in response to the electrification challenge, considering factors such as technological
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innovation, market dynamics, and the regulatory environment.
• Understand the importance of strategizing for innovation. Through Ford’s example, students will learn
about the strategic implications of disruptive technologies and how established companies can navigate
evolving markets.
• Examine the regulatory environment. By analyzing the impact of Executive Order N-79-20, students
will gain insights into the implications of regulatory mandates on business strategy and operations.
The Case Solution Starts From page 4
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ASSIGNMENT QUESTIONS
1. What significant challenges does Ford face in meeting California’s Executive Order N-79-20?
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2. As an established company, what strategic implications should Ford consider as it navigates
electrification?
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3. What innovation strategies are available to Ford to win the EV format war, particularly in vehicle design
and battery development?
4. What is your assessment of the effectiveness of Ford’s strategy to meet the electrification challenge,
specifically Executive Order N-79-20?
5. What supply chain or strategic partnership considerations should Ford keep in mind after failing to
successfully launch EVs?
The Case Solution Starts From page 4
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ANALYSIS
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1. What significant challenges does Ford face in meeting California’s Executive Order N-79-20?
Ford faced several significant challenges in meeting California’s Executive Order N-79-20, which aimed to
Sa
phase out gasoline-powered cars and drastically reduce fossil fuel demand by 2035. One of Ford’s major
challenges was the need to rapidly expand its EV lineup and manufacturing capacity. The company announced
a US$11.4 billion2 investment in an all-new EV manufacturing ecosystem, including a new mega campus and
battery plants, that would create 11,000 jobs and develop a new lineup of advanced EVs. This investment was
n
crucial to scale up production to meet the increasing demand for EVs resulting from the executive order and
competitive pressures in the market. Given the scale and complexity of the endeavour, Ford’s challenge was in
tio
executing these plans efficiently and overcoming potential delays or disruptions in the supply chain.
Another challenge for Ford was the infrastructure requirements of electrification. This included ensuring
lu
So
The Case Solution Starts From page 4
CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
In 2020, Ford Motor Company (Ford), a global automaker, embarked on a transformative journey toward
Sa
electrification with the introduction of the Ford Electric Vehicle Strategy. This case examines Ford’s
approach to meeting the electrification challenge, particularly in response to California’s Executive Order
N-79-20, which mandated the phase-out of gasoline-powered vehicles by 2035. The case provides insights
into Ford’s activities and highlights the challenges and opportunities inherent in the electrification space.
n
tio
OBJECTIVES
lu
• Apply critical thinking to evaluate corporate strategy. Students will evaluate the effectiveness of Ford’s
strategy in response to the electrification challenge, considering factors such as technological
So
innovation, market dynamics, and the regulatory environment.
• Understand the importance of strategizing for innovation. Through Ford’s example, students will learn
about the strategic implications of disruptive technologies and how established companies can navigate
evolving markets.
• Examine the regulatory environment. By analyzing the impact of Executive Order N-79-20, students
will gain insights into the implications of regulatory mandates on business strategy and operations.
The Case Solution Starts From page 4
, e
pl
m
Sa
n
tio
ASSIGNMENT QUESTIONS
1. What significant challenges does Ford face in meeting California’s Executive Order N-79-20?
lu
2. As an established company, what strategic implications should Ford consider as it navigates
electrification?
So
3. What innovation strategies are available to Ford to win the EV format war, particularly in vehicle design
and battery development?
4. What is your assessment of the effectiveness of Ford’s strategy to meet the electrification challenge,
specifically Executive Order N-79-20?
5. What supply chain or strategic partnership considerations should Ford keep in mind after failing to
successfully launch EVs?
The Case Solution Starts From page 4
, e
pl
ANALYSIS
m
1. What significant challenges does Ford face in meeting California’s Executive Order N-79-20?
Ford faced several significant challenges in meeting California’s Executive Order N-79-20, which aimed to
Sa
phase out gasoline-powered cars and drastically reduce fossil fuel demand by 2035. One of Ford’s major
challenges was the need to rapidly expand its EV lineup and manufacturing capacity. The company announced
a US$11.4 billion2 investment in an all-new EV manufacturing ecosystem, including a new mega campus and
battery plants, that would create 11,000 jobs and develop a new lineup of advanced EVs. This investment was
n
crucial to scale up production to meet the increasing demand for EVs resulting from the executive order and
competitive pressures in the market. Given the scale and complexity of the endeavour, Ford’s challenge was in
tio
executing these plans efficiently and overcoming potential delays or disruptions in the supply chain.
Another challenge for Ford was the infrastructure requirements of electrification. This included ensuring
lu
So
The Case Solution Starts From page 4
