Tangible and Intangible Resources Possessed by Ford Paper Example

Paper Type:  Essay
Pages:  3
Wordcount:  618 Words
Date:  2022-09-05


Tangible resources refer to measurable resources which are used in a firm's operations to help in producing a profit. The tangible assets of Ford Motor Company include cash and cash equivalents, inventories, investment in operating lease, property, and marketable securities (Ford Motor Company 2017 Form-10-K Annual Report p.82). The tangible assets are found in the company's financial statement (Balance sheet).

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On the other hand, intangible resources refer to the resources lacking physical substance which in most cases, they are hard to evaluate. In Ford Motor Company, the intangible assets are mainly comprised of advertising and licensing agreements, technology, land rights, and customer contracts (Ford Motor Company 2017 Form-10-K Annual Report p. FS-9). For the report, it is evident that the net amount of intangible assets in 2017 and 2016 were $213 and $198 respectively.

Ford's Organizational Capabilities

Ford Company has the ability to improve its logistics because currently there is an ineffective operating system which is used in delivering goods. Additionally, the Motor Company has the capability of improving its fitness by lowering the costs, financing growth, and releasing capital (Ford Motor Company 2017 Form-10-K Annual Report p.29). This capability can further increase the production of the firm. Ford Company has the capability of accelerating introduction connected smart services and vehicles which will help it compete effectively in the market. Although the company has always tried to invest in the different venture, it has the ability to reallocate its capital to a place or area that it can easily win in the future (Ford Motor Company 2017 Form-10-K Annual Report p.29). As one of the leading motor companies in the world, the firm has the ability to continue innovating for it to develop significant human-centred mobility solutions. Also, the capability of empowering its team to work efficiently will help it compete well and win.

Ford's Core Competencies

Core competencies refer to the interpersonal, person, and business skills that distinguish a company from the marketplace. Ford has different core competencies including launching a fitness redesign effort which are mainly focused on the speed, centricity, culpability, agility, effectiveness, and simplicity of the customer (Ford Motor Company 2017 Form-10-K Annual Report p.29). The company collaborated with different companies including Postmates, Dominos, and Lyft in the U.S in supporting vehicle testing and establishment. Besides this, the company collaborated with other towns such as Zotye in China and Mahindra in India to offer capabilities, scale, and technology that enhances the company's competitive position (Ford Motor Company 2017 Form-10-K Annual Report p.29). The firm further invested on Autonomic which accelerates growth in the digital services. In 2017, the firm made several announcements that will help it to compete effectively in the market including achieving 100% connectivity for the new motor vehicles in the United States by 2020. It also announced that it would shift to lowering volume passenger moto line up in both Europe and America and launching performance SUV battery for the electric cars which provide about a 300-mile range.

Why is this information valuable from a strategic analysis perspective?

The above information is valuable from a strategic analysis as it gives significant information concerning the establishment and valuation of both the inside and outside environment of Ford Motor. Furthermore, it reveals the possible threats and opportunities which should be considered when making strategic decisions. Doing strategic analysis can also help the company to be more sustainable, resilient, and innovative in that it can easily anticipate in case risks will occur in the future and because the funding environment can easily change. The information is also valuable since it can help a company to concentrate its main resources on essential opportunities.


Ford Motor Company 2017 Form-10-K Annual Report. file:///C:/Users/User/Downloads/F-2017-10-K-report.pdf

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Tangible and Intangible Resources Possessed by Ford Paper Example. (2022, Sep 05). Retrieved from https://proessays.net/essays/tangible-and-intangible-resources-possessed-by-ford-paper-example

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