BUSINESS POLICY AND STRATEGY

STRATEGIC MANAGEMENT
FORD MOTOR COMPANY

Del Rosario, Paula Gems

Guison, Pamela Ann
Madrona, Julie Ann
Marin, Jirah Lyn
Marterio, Janine
Oh, Portia
Quilatan, Jasmin Marian
Ramirez, Princess Camille
Tomarong, Jehannah Marie
Ugaban, Lovely Rose
HISTORY

Founder - Henry Ford

Current CEO - Mark Fields
Headquarters - Dearborn, Michigan, United States
Top Competitors as of 2016 - General Motors Company (with 55,784,217 market capital
and $37.24 last sale and +1.72 net change) vs Ford Motor Company (with 49,378,579
market capital and $12.65 last sale and +0.09 net change)
Ford Motor Company is the fifth largest automobile manufacturer in the world.

STRATEGY FORMULATION

Mission and Vision

Fords vision statement - people working together as a lean, global enterprise for
automotive leadership.

Major points of Fords Vision:

1. Global leadership - Ford Motor Company wants to become the top player in the
international automotive market. Ford is currently the fifth biggest in the world,
and the second largest U.S.-based automobile manufacturer, behind General
Motors.
2. Emphasis on stakeholders - achieved through Fords enhanced HR policies, as
well as corporate social responsibility strategies for employees, customers,
investors and others.
3. Lean business - already achieved through its assembly line methods.

Thus, based on its current condition, Ford Motor Company needs to work on
growing its sales to achieve global leadership and fulfill its vision statement.

2
Fords mission statement - One Team. One Plan. One Goal.

One Team: People working together as a lean, global enterprise for automotive leadership, as
measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community
Satisfaction.

One Plan: Aggressively restructure to operate profitably at the current demand and changing
model mix; Accelerate development of new products our customers want and value; Finance
our plan and improve our balance sheet; Work together effectively as one team.

One Goal: An exciting viable Ford delivering profitable growth for all.

With the One Ford mission statement, the company now focuses on creating
consistency in product and service design and quality globally.
The mission statement emphasizes teamwork to achieve synergy at Ford.
The One Plan and One Goal components also indicate that the mission
statement focuses and unifies Fords global organizational efforts to improve
business performance and achieve the global leadership point in the companys
vision statement.

INTERNAL STRENGTHS AND WEAKNESSES

Fords strengths are associated with its brand, global operations, and research and
development.
Ford Motor Companys main strengths are as follows:

1. Strong brand image - contributes to product attractiveness and customer loyalty

2. Global supply chain - supports its operations around the world
3. Effective innovation processes - now more effective following the launch of the One
Ford plan in 2008.

3
Fords weaknesses are based on the companys limitations compared to competitors.
Fords major weaknesses are as follows:
1. Limited global scope of production network - limitation of its network of production
facilities, especially when compared to Toyotas expansive global network. Also
closed down some of its production facilities in Europe in recent years, further
worsening this weakness.
2. Higher costs compared to competitors - compared to competitors like Toyota, Fords
costs and prices are relatively higher.
3. Slow innovation processes - innovation processes are relatively slower to respond to
new or emerging trends even though the company has increased its innovation
effectiveness.

4
Fords opportunities are linked to growth and expansion.
The following are Fords main opportunities:

1. Global expansion through market penetration - more dealerships and improved

marketing
2. Growth through product development - innovation to introduce new products to satisfy
environmental concerns
3. Cost reduction through strategic supply chain management - expanding its supply
chain to achieve better economies of scale and reduce production costs

The threats against Ford are based on competition and global oil prices.
The following are the threats against Ford:

1. Aggressive competitive rivalry - threat of competitors like General Motors and Toyota
2. New entry of high-tech firms - t hreat of technology firms like Google and Apple in their
efforts to make driverless cars that could compete against Fords products.
3. Fluctuating oil prices - threatens the sales performance of Ford products, the majority
of which have internal combustion engines.

5
LONG TERM OBJECTIVES

Ford Motor Company's financial goals include growing the number of vehicles sold
annually by 45 to 55 percent to a total of 9.4 million by 2020. The company is seeking to
increase its market share significantly in regions outside North America, including
Asia-Pacific, Africa, Europe and the Middle East.

Ford's objectives in the area of research and safety revolve around continued
investment in improved materials and technology. It is expanding its Palo Alto Research
and Innovation Center in California's Silicon Valley and further developing the Ford
Blueprint for Mobility, which focuses on in-car connectivity, automated driving
technology and improved vehicle safety. Additionally, the company is developing more
innovative materials like the high-strength, military-grade aluminum alloy used in its
2014-model F-150 truck.

In the area of sustainability, Ford's objectives include increasing the fuel-efficiency of its
entire fleet of vehicles and decreasing carbon dioxide emissions from its manufacturing
processes, with a target of 25 percent reduction between 2011 and 2016. It has set
numerous sustainability goals, which include increasing its use of recycled and
renewable materials in its vehicle interiors, decreasing the amount of volatile organic
compound emissions from vehicle painting, and reducing water use and manufacturing
waste.

ALTERNATIVE STRATEGIES