Ford Motor Company

Report
Ford Motor Company
By: Jennifer Brown
Puneet Kankaria
Cody Reynolds
Brief Introduction
History of Ford:
 The Ford Motor Company started in
June 1903 by Henry Ford
 Under Henry Ford the company
suffered massive losses
 Henry Ford II transformed Ford’s
leadership style: “tyrannical
dictatorship to professional
oligarchy”
 Alan Mulally was appointed CEO in
September 2006
Outline
I.
II.
III.
IV.
External Environment
Business Environment
SWOT
Looking Toward the Future
External Environment


Economy is at a
standstill
Shift in Growth
(demand)
Business Environment

Alternative Fuels and Higher Fuel
Efficiency
• E85 – corn based fuel
• Hydrogen Fuel Cell
• Hybrid technology
Outsourcing

Domestic manufacturing companies:
• Visteon
• Delphi


Competitor Outsourcing
Moving operations to low-cost
destinations
Market Segmentation



Target smaller customer segments
Increase in number of models available
Multiple Branding to cater each market
segment:
•
•
•
•
Volvo
Lincoln
Mercury
Ford
Strengths of Ford




Integration of User-friendly dealer
website with Ford website
Large dealer network
Brands across all market segments
Push toward R&D
• AdvanceTrac – vehicle stability
• Adaptive cruise control
• Intelligent Safety System

Economies of Scale
Weakness of Ford

Weaker Brand Image
• Quality Issues
• Low National Highway Traffic Safety
Administration Ratings




Too many layers of Management
Late to focus on alternative fuels
Outsourcing (Visteon)
Exposure to Fleet sales
• Taurus model
Opportunities for Ford


Emerging Markets
Brand Building
• Better Quality Vehicles
• Better Safety Rating
• Convience features

Exploring new alternative
fuels
Threats for Ford

Low-cost manufacturers
• Chinese Auto Makers
(Greely,SAIC)

Public Transportation
• Bus
• Railway (Metro)

Loss of Market Share
Porter’s Five Forces
Threat of New Entrants
HIGH:
• Chinese Auto Industry
Supplier Power
Low:
• Option for Outsourcing
to low-cost destinations
• Forward Integration
Industry Rivalry
High:
• Numerous competitors
• Low switching costs
Threat of Substitutes
High:
• Alternative Fuels
• Modes of Transportation
Buyer Power
Moderate:
• Fleet owners
• To many models and
options
Environmental Analysis


Reduce Carbon Emissions
Clean diesel fuel technology
• BLUETEC – reduce nitrogen oxide levels

Reuse of car components
Competitor Analysis
Toyota:
•High Quality
•High Safety Ratings
(NHTSA) – 5 star ratings
•Streamlined operations
with similar models globally
•Hybrid models across all
segments
Competitor Analysis
General Motors (GM):


Focusing on emerging markets
Researching Alternative Fuels:
• Chevy Equinox Fuel Cell
• Plans to develop 12 hybrid models

Implementing the new “Tru-Flex
system”
Recent Events


Spike in fuel prices and loss of
market position
Restructuring of the company
• Selling off unprofitable divisions (Aston
Martin)
• Selling Jaguar and Land Rover to Tata
Motors

Buyout of employees retire contracts
• 10 plants were closed
Strategic Formulation



Mulally’s focus is to unite the company
with a “single business plan”
Working smarter with the resources it
has for better satisfaction
Streamline global operations
Company Update

Ford is producing less SUVs and trucks due
to soaring gas prices
http://www.ford.com/about-ford/news-announcements/press-releases/press-releasesdetail/pr-ford-adjusts-production-to-lower-28275

Ford Focus ECOnetic – one of the new
models to be launched for better fuel
efficiency (66mpg)
http://www.ford.com/about-ford/news-announcements/press-releases/press-releasesdetail/pr-ford-invitation-to-test-green-28274

New Ford Flex has new twist in interior
design from Anthony Prozzi (DKNY designer)
http://www.ford.com/about-ford/news-announcements/press-releases/press-releasesdetail/pr-designer-brings-fashion-world-to-28266
Opinion




Focus on safety features to have high
NHTSA ratings
Reduce layers of management and
have a cohesive business plan
Create innovative ways for fuel
efficient models
Reduce inventory (Honda Fit)

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