MEMO

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Recommended Action

The recommended action is to develop a strategy that will build on the use of bio-based materials and the success of the soy foam technology. The issue is whether the outcomes of the efforts whereby Ford Company developed a strategy of utilizing more environmental friendly materials such as soybean to come up with soy-foam would be acceptable and attractive to the various customers or it would serve its purpose in ensuring fuel efficiency.

Since the first step has proved to be a success, the question that is been canvassed and which is lingering on everybody’s mind is “what next?”. My recommendation in answering the question beforehand can be singled out in such a way that Ford Company should exploit every opportunity available in order to market soy foam. This will ensure that a large group of people are aware of the existence of Soy-foam in the market, since soy-foam is a novel idea, marketing it and exploiting the available opportunities in the market will come in handy in ensuring that the innovation will be acceptable and attractive to the various customers and further serve its purpose in ensuring fuel efficiency.

Issues

I have recommended that Ford should exploit every available opportunity and aggressively market soy foam. This recommendation will help in garnering approval from customers and stakeholders’ legitimateness. The soy-foam was a success as a result of the resilient move and steps that were taken by Mielewski and her counterpart Flanigan. What started as a small idea, through a series of experiments and of course with small tides here and there which almost brought the initiative to a near halt proved to be a success. However, the idea began to gain acceptance when the price of petroleum prices per barrel increased at an unimaginable rate in 2004 and various players in the industry began looking for other alternatives to petroleum, this proved to be a stepping stone to Ford company in their soy-foam initiative.

Once there is an aggressive form of marketing, the various consumers become aware of the availability of a certain commodity in existence in the market and the potential of the innovation, since this is a novel idea being an innovation, aggressiveness and consistency in marketing the idea of soy-foam as an alternate to polyurethane-based car seat which was not environmentally friendly, and which was against Henry Ford’s philosophy of  integrating the industry with agriculture in order to make cars that are safe and sound to operate.

 Ford Company should also market the idea throughout the world not only in North America, this will ensure that they establish a wide clientele and customer base which will in the long run ensure that there is a sustained market which if adversaries come, the soy-foam will market will be solid enough to withstand the economic tides. The benefit that accrue from aggressive marketing is that several companies will approach Ford with a proposal to develop foam for vehicle interiors from soy extracts as did the United Soybean Board (USB), and once these companies are attracted with the idea, they will find different opportunities to commercialize the use of soybeans which is a means to an end the end being profits and large economies of scale.

Options

In order to tap fully the market potential of the soy-foam, as an alternative, I would recommend that Ford should engage in a scientific research and experiments to ensure that the soy-foam that they are already manufacturing for car’s exterior meets the test of time. How long the innovation lasts will determine the resultant acceptance by people hence integrating itself as a viable commercial commodity which can be trusted by the various market players and participants, once the Ford Company fully coalesce itself in the market, the better for the company, as it will enjoy the fruits of profitability, economies of scale as well as prestige.

 The advantage that comes along with scientific research is that, with research, new ideas are discovered, ideas which would improve the first step and it comes in handy in ensuring that the soy-foam is made even more effective and long lasting. Research also will make the Ford Company way ahead of the rest of the companies when it comes to advancement of the idea.

The only disadvantage which comes with this kind of scientific research is the idea of environmental degradation as a result mixing various reagents, these reagents are always in chemical form, these will go against the mission and the vision of Ford company of ensuring that its car industry is environmental friendly and sustainability which is a crux of a viable business strategy in line with Henry Ford’s philosophy.

Implementation

Since the company’s first and obvious objective was to increase the percentage of soy foam that was being used, the major task being to ensure that the innovation remains a viable business in the long run, I believe that the company should take both short and long term steps which would be necessary in keeping the initial objective afloat. The company should engage in a marketing strategy such as advertising their commodity, manufacturing of high quality products which would be unmatched, this will enable the company sustain and have a rooting in North America and ensure little or no competition, not on the basis of unfair practices, but on the quality of their products. They should also collaborate with other like-minded companies and groups in order to come up with other eco-friendly soy foam innovations.

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