Ford Motor Company

1
Ford Motor Company

• By Jennifer Brown
• Puneet Kankaria
• Cody Reynolds

2
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 Fords leadership
  style tyrannical dictatorship to professional
  oligarchy
• Alan Mulally was appointed CEO in September 2006

3
Outline

1. External Environment
2. Business Environment
3. SWOT
4. Looking Toward the Future

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External Environment

• Economy is at a standstill
• Shift in Growth (demand)

5
Business Environment

• Alternative Fuels and Higher Fuel Efficiency
• E85 corn based fuel
• Hydrogen Fuel Cell
• Hybrid technology

6
Outsourcing

• Domestic manufacturing companies
• Visteon
• Delphi
• Competitor Outsourcing
• Moving operations to low-cost destinations

7
Market Segmentation

• Target smaller customer segments
• Increase in number of models available
• Multiple Branding to cater each market segment
• Volvo
• Lincoln
• Mercury
• Ford

8
Strengths of Ford

• Integration of User-friendly dealer website with
  Ford website
• Large dealer network
• Brands across all market segments
• Push toward RD
• AdvanceTrac vehicle stability
• Adaptive cruise control
• Intelligent Safety System
• Economies of Scale

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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

10
Opportunities for Ford

• Emerging Markets
• Brand Building
• Better Quality Vehicles
• Better Safety Rating
• Convience features
• Exploring new alternative fuels

11
Threats for Ford

• Low-cost manufacturers
• Chinese Auto Makers (Greely,SAIC)
• Public Transportation
• Bus
• Railway (Metro)
• Loss of Market Share

12
Porters Five Forces

• HIGH
• Chinese Auto Industry

• Moderate
• Fleet owners
• To many models and options

• Low
• Option for Outsourcing to low-cost destinations
• Forward Integration

• High
• Numerous competitors
• Low switching costs

• High
• Alternative Fuels
• Modes of Transportation

13
Environmental Analysis

• Reduce Carbon Emissions
• Clean diesel fuel technology
• BLUETEC reduce nitrogen oxide levels
• Reuse of car components

14
Competitor Analysis

• Toyota
• High Quality
• High Safety Ratings (NHTSA) 5 star ratings
• Streamlined operations with similar models
  globally
• Hybrid models across all segments

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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

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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

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Strategic Formulation

• Mulallys focus is to unite the company with a
  single business plan
• Working smarter with the resources it has for
  better satisfaction
• Streamline global operations

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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-adjus
  ts-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-invit
  ation-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-b
  rings-fashion-world-to-28266

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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)