Ford Motor Company

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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. External Environment
II. Business Environment
III. SWOT
IV. 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 Industry Rivalry Buyer Power


Low: High: Moderate:
• Option for Outsourcing • Numerous competitors • Fleet owners
to low-cost destinations • Low switching costs • To many models and
• Forward Integration options

Threat of Substitutes
High:
• Alternative Fuels
• Modes of Transportation
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-releases-
detail/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-releases-
detail/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-releases-
detail/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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