Differentiate which financial ratios are commonly used for continuation of corporate strategy?
Ford Motor Company’s CEO Jim Hackett tied financial metrics to corporate strategy. This strategic initiative/move worked to Ford’s benefit. You can read about this on Ford’s website and learn how Hackett did this in previous positions which he occupied. You can begin reading about this at Ford Motors Strategic Analysis. (Links to an external site.)
Please perform more scrutiny as to how and what Hackett did. Try to discover what metrics or financial ratios were used in Hackett’s strategic initiative at Ford or other companies in which he worked. He was a master at linking metrics with corporate strategy.
Next, disclose your research findings in your initial post. Include supporting information from websites to examine and illustrate the linkage of financial metrics with corporate strategy. Then please respond to the following questions:
- How does Ford Motor Company routinely use financial metrics to drive changes in corporate strategy? Provide examples of collaborating information from corporate websites to support your response.
- Differentiate which financial ratios are commonly used for continuation of corporate strategy? Which ratios are specifically used for changes in corporate strategy? Is there any differentiation for continuation vs. changing strategies and reported ratios?