I. How did the company start?

Ford motor company was founded by Henry Ford, on June 16, 1903. Henry Ford built his

first experimental car in a workshop behind his home in Detroit in 1896. After formation of the

Ford Motor Company, the first Ford car was assembled at the Mack Avenue plant in July 1903.

Five years later, in 1908, the highly successful Model T was introduced. Demand for this car was

so great that Ford developed new mass-production methods in order to manufacture it in sufficient

quantities; in 1911 he established the industrys first U.S. branch assembly plant (in Kansas City,

Missouri) and opened the companys first overseas production plant in Manchester, England; in

1913 he introduced the worlds first moving assembly line for cars; and in 1914, to further improve

labor productivity, he introduced the $5 daily wage for an eight-hour day (replacing $2.34 for a

nine-hour day).

The history of Toyota started in 1933 with the company being a division of Toyoda

Automatic Loom Works devoted to the production of automobiles under the direction of the

founder's son, Kiichiro Toyoda. Kiichiro Toyoda had traveled to Europe and the United States in

1929 to investigate automobile production and had begun researching gasoline-powered engines

in 1930. Toyoda Automatic Loom Works was encouraged to develop automobile production by

the Japanese government, which needed domestic vehicle production, due to the war with China.

In 1934, the division produced its first Type A Engine, which was used in the first Model A1

passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA

passenger car started in 1936.

II. What is companys mission?

Fords mission statement is One Team. One Plan. One Goal. This mission statement is also

known as the One Ford mission, which is part of the One Ford plan that was unveiled in 2008
under CEO Alan Mulallys leadership. Ford explains that the expanded form of its mission

statement is as follows:

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.

The Toyota mission statement in America is to attract and attain customers with high-valued

products and services and the most satisfying ownership experience. While in the Philippines are

(1)To dominate our markets through dynamic selling and timely delivery of attractive products,

with excellent customer service and continuous product improvement. (2)To produce vehicles

and components of outstanding quality, using advance technology, continuously improving

methods and environment-friendly processes while maintaining safe working conditions. (3)To

sustain Company profitability, stability, productivity and growth by engaging in effective financial

and resource management for the collective gain of the Toyota Family and the society we serve.

To sustain Team Member's morale and productivity by developing their full potential and total

well-being, and by establishing mutual trust, mutual responsibility, and harmony through open

communication.

III. What is the companys strategy? Does it differ from the strategy it had two years ago?

Fords generic strategy has changed over time. Initially, Fords generic strategy was cost

leadership. This generic strategy supports business competitive advantage on the basis of cost
reduction and low prices to attract customers. In the early 1900s, Fords vision was to make its

automobiles affordable for working-class Americans. To apply this generic strategy, the firm

developed the assembly line method to minimize costs and maximize productivity. Ford

succeeded in attracting customers based on this generic strategy. A strategic objective for

competitive advantage based on this generic strategy is cost minimization through process

streamlining.

However, Ford Motor Companys generic strategy did not protect the business from

competition with General Motors. By 1927, GM overtook Ford to become the largest American

automobile manufacturer. GM used its generic strategy of broad differentiation to offer a wider

array of products. Americans were gaining higher wages and started valuing style and design,

and not just low prices. Today, given its current One Ford plan, Ford Motor Company has been

moving its generic strategy to emphasize differentiation for competitive advantage. Ford still

maintains its cost leadership generic strategy. However, the firm is moving toward the broad

differentiation generic strategy to compete against firms like GM and Toyota. Thus, a strategic

objective based on Fords current generic strategy adjustment is product innovation to gain

stronger competitive advantage.

Toyota Motor Corporations generic strategy is a combination of the cost leadership

generic strategy and the broad differentiation generic strategy. Cost leadership entails minimizing

cost of operations and selling prices. On the other hand, the broad differentiation generic strategy

requires developing business and product uniqueness to ensure Toyotas competitive advantage.

The combination of these generic strategies supports Toyotas global reach in all market

segments.

A strategic goal corresponding to Toyotas generic strategy is to minimize production costs

to attain cost leadership. The company does so through the just-in-time (JIT) manufacturing

method, which is also known as the Toyota Production System (TPS). This method addresses

Toyotas generic strategy by minimizing waste, inventory cost, and response time. As a result,
the firm achieves maximum business efficiency. On the other hand, Toyota has the strategic goal

of innovation to address the broad differentiation component of its generic strategy. Innovation

leads to unique and attractive products for all market segments. Thus, Toyota fulfills its generic

strategy.

IV. What are the companys core competencies?

Ford's core competencies help them gain a competitive advantage over rival competitors

such as GM and other leading automobile manufacturers. Ford's main core competency is its

strong brand recognition. Ford is one of the top leaders in its industry, helping them strengthen

their brand recognition. Another core competency of Ford is its strong "One Ford" plan that it

helped return from dismal performances from the 2007-2008 financial crisis. Finally, Ford's ability

to build relationships with rivalry firms helps them with strategic alliances and joint ventures.

Strategic alliances and joint ventures help Ford integrate in emerging markets and help meet

consumer demands.

Toyota does not have core competencies but rather operates under the guidance of two

ideals: continuous improvement and respect for people. Toyota's operations are guided both by

lean manufacturing and a set of 14 principles called "The Toyota Way." The Toyota Way is a set

of 14 principles that define the company's work philosophy. The principles are related to

management and production, workload and culture, continuous improvement and quality

decision-making, leadership development and learning, reliability and valuing partnerships and

the elimination of wasteful practices.

Toyota has placed a particular emphasis on its customer service experience in light of

past recall issues. These problems have not kept the company from receiving awards for its cars
in JD Powers Quality Surveys. Toyota describes itself as committed to continuous improvement

in all areas of operations at all its global facilities.

V. What are the value chain processes for this company?

The value chain of the Ford Motor Company is not all that different from other

manufacturers in the automobile industry. Many years of increased arbitrary demands on

suppliers has led to poor supplier relations and so the 100 year-old company is taking a new

approach to reinvent its value chain.

Procurement makes up more than a quarter of the value chain and so Ford has focused

its efforts there. In the past, Ford lowered its supply chain costs by demanding lower prices from

its suppliers, in effect obtaining savings at the suppliers expense. It is now taking a different

approach. Ford is working closely with its suppliers to eliminate waste and thereby lower costs

for both organizations. This should be a win-win situation for both companies and should help

lift Ford from its near-last ranking in supplier relations.

Another high value impact of the Ford value chain is the design phase. Ford has begun to

understand the value of consumer input in successful modern design technologies. They have

initiated tailoring design models after public demand. This method has proven highly successful

in recent financial periods.

Marketing is also a very important aspect of the Ford automotive value chain and is

considered a high value-added part in the value chain. Ford has been working together with

dealers to create marketing strategies that help boost sales. This is proven to be the primary

basis for the consumers' perceived values.

Toyota Value Chain Processes

 Value chain analysis is an analytical framework that assists in identifying business

activities that can create value and competitive advantage to the business. Primary Activities

Inbound logistics for Toyota comprises two separate operations. The first is the operation that

transports parts from local suppliers to the local plants; the second is a separate operation, global

inbound logistics, to transport parts from Japan to the North American and European plant.

Localization of production is one of the core strategies pursued by Toyota and accordingly,

75.4% and 76.3% of non-domestic sales were produced outside of Japan for the calendar years

of 2012 and 2013 respectively. Thanks to localization of production, Toyota is able to achieve

better match of local currency revenues with local currency expenses. Moreover, Toyota has

developed and perfected Just-In-Time (JIT) system of manufacturing that eliminates the need for

inventory and inventory management, thus saving considerable costs. To summarize, inbound

logistics is a primary activity that creates an immense value for Toyota due to the localization of

production and efficiency application of JIT supply chain system. Service. Toyota operates

according to the principle of The Customer Always Comes First as declared in The Toyoda

Precepts in 1935. This principle is reflected in all business processes and procedures of the

company.

VI. What products (services) does the company manufacture?

Ford Motor Co. and Toyota Motor Corp are two of the worlds largest auto companies.

Both engage in manufacturing and selling automobiles. Automotive segment of Ford includes sale

of Ford and Lincoln brand vehicles, service parts, and accessories. Toyotas automotive segment

includes design, manufacture, assemble and sell passenger cars, minivans, trucks, vehicle parts,

and accessories.

VII. What is the companys organizational structure?

 According to Panmore Institute, the organizational structure of Ford is based on the need

to control operations according to regional market conditions. Its main features include corporate

hierarchy, global functional groups, and regional geographic division. There are three regional

divisions of Ford (1. America 2. Europe, Middle East, and Africa, and 3. Asia Pacific.) Each

division has an executive VP.

In 2013, Toyota started implementing new organizational structure which is corporate

structure. Its main characteristics are global hierarchy, product-based divisions, and geographic

divisions. Toyota has eight divisions. (Japan, North America, Europe, East Asia and Oceania,

China, Asia and Middle East, Africa, and Latin America and Caribbean)

VIII. What would be your top priorities for this company in the coming year?

We stand on the idea that transformational innovation within these companies must be a

high priority, especially in an environment where new market entrants can quickly rise up and

challenge existing business models.

Companies such as Ford and Toyota must pursue disruptive innovation, not purely

incremental improvements. Also, they must not simply tweak existing products and services; they

should reinvent their own firms. These companies must also value agility and experimentation,

and be more willing to accept failure as a precondition to success.

Increasingly, transformations need to happen simultaneously across multiple parts of the

business, requiring organizational agility, a willingness to change, and embracing innovation as a

core competency. These companies view innovation as a long-term strategy, not a short-term

way to fix parts of the business.

IX. Based on your finding, which of these two companies would you accept employment? Why

or why not?
 In the recent surveys, Ford actually ties with Toyota for greatest customer satisfaction. But

considering other factors, between these two companies, we would accept employment, if any,

from Ford Motors Company. The company launch a new strategy plan in 2000 which aims to

increase market share, revenues earned, and to produce smart cars with fuel efficiency. It also

implemented centralized decision system. With these, the top management becomes more

engage in the development of products to satisfy the customer expectation in various markets.

This results to an improvement in the communication system from top to bottom. Ford also

adapted the strategy that lowers production cost involve in operations. This strategy establishes

cost advantage over its competitors

Ford is considered more financially sound than Toyota because it observes timely

acquisition of capital. Aside from its higher ranking in Top 500 Companies in Forbes compared to

that of Toyota Motors Corp., we have come up with Ford mainly because of its strong brand

recognition. Also, Ford builds strategic alliances and joint ventures with rivalry firms that helps

Ford integrate in emerging markets and meet consumer demands. Ford even understands the

value of consumer input in successful modern design technologies. It has been working together

with dealers to create marketing strategies that help boost sales.

.
 Kingfisher School of Business and Finance

MacArthur Highway, Lucao District, Dagupan City

1st Semester A.Y.2017-2018

&

Prepared by:

De Guzman, Rica Mae

De Venecia, Dannilyn

Perez, Aira Jane

Prepared for:

Ms. Jeraldine M. Cardozo, CPA

Instructor
Bibliography:

https://www.panmore.com/ford-motor-company-generic-intensive-growth-strategies.com
https://www.forbes.com/companies/toyota-motor/
https://www.forbes.com/companies/ford-motor/
www.toyota-global.com
www.Corporate.ford.com