Ford Motor Company
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Transcript Ford Motor Company
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)