Ford Motor

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Company
 Presented by:
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Institute of Information Technology,

University of Dhaka
MIT 11th Batch

Hafsa Akter Sonia (141116)

Zahra Rezwana (141120)
Faria Hasan (141115)
Protitee Yasmine (141150)
 Outline
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 History
 Vision, Mission ,Values & objectives
 SWOT Analysis
 Internal Analysis
 History of ford
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 Henry Ford invented Ford in 1903

 The company started making the

Model – T in 1908

 Started in Dearborn, Michigan

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 Ford Motor Company – at a glance
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The Ford Motor Company is an American multinational automaker

headquartered in Dearborn, Michigan, a suburb of Detroit. It was
founded by Henry Ford and incorporated on June 16, 1903.

Type Public company

Headquarter Dearborn, Michigan, U.S.
Area served Worldwide
Products Automobiles
Luxury Vehicles
Commercial Vehicles
Automotive parts

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 Car Evolution
Old model vehicles
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 Logo
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 Organizational Structure
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CHAIRMAN
CEO
Executive Group Vice
Executive Executive
Executive Presidents and
V.P and V.P and CTO
V.P. of V.P. of
president of
CFO America Europe
Asia Pacific

 Very Complex structure fairly mechanistic in nature

 Rigid departmentalization
 Low span of control
 High Centralization
 Key Person
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William Clay Ford, Jr., great grandson of Henry Ford, serves

as the executive chairman at the board of Ford Motor
Company.
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Vision, Mission,
Values
& objectives

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 Mission
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Ford Motor Company describes itself as a company

that is “passionately committed to providing personal
mobility for people around the world….We anticipate
consumer need and deliver outstanding produces and
services that improve people’s lives.”

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 Values
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 People

 Products

 Profit

 Organizational culture
 Objectives
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 stabilizing the climate by considering

reducing long-term emission.

 development of infrastructure that expand

the use of bio-fuels and reduce
dependence on oil

 cut the usage of global energy by 27%

and the usage of water by 25%
 SWOT Analysis
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Strengths Weaknesses
1. US market position 1. High cost structure
2. Financial performance 2. Unprofitable Europe operation
3. ECOnetic approach 3. Low exposure to Asia Pacific
4. ONE Ford approach
5. Growth in china

Opportunities Threats
1. Green vehicles 1. Decreasing fuel prices
2. Increasing fuel prices 2. Rising raw material prices
3. New emission standards 3. Instances competitions
4. Strategic partnership 4. Fluctuating exchange rates
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Internal Analysis
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 Strengths

 Weaknesses

 IFE matrix
 Strengths
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 Producing Hybrid vehicles

 Brand recognition
 Profitable financial services division (Ford
Motor Credit)
 Manufacturing facilities in more than 30
countries
 Wide Range of Products targeting all
customer classes
 Weaknesses
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 Weakening North American

automotive operations
 Sales in trucks decreasing rapidly

 Firing of Employees
 IFE Matrix
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 Internal Analysis
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 Outline
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 External Analysis
 Opportunities &
Threats
 Industry Analysis:
o Porter’s Five Forces Model
o EFE Matrix
o CPM
 Environmental Analysis
 Competitive Analysis
 Competitive Advantage
 Product Life Cycle
 Opportunities for Ford
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 Global expansion.
 Brand Building
o Better Quality Vehicles
o Better Safety Rating
o Convenience features
 Consumers demand hybrid and
fuel efficient vehicles.
 Increase in consumer spending
trends.
 Consumers demand more
innovative vehicles.
 Industry experiences slow and
steady growth.
 Exploring new alternative fuels.
 Threats for Ford
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 Low-cost manufacturers
o Chinese Auto Makers (Greely,
SAIC)
 Public Transportation
o Bus
o Railway (Metro)
 Weak USD
 Increase in steel and resin prices.
 Increase gasoline prices.
 Stricter CO2 emission standards.
 Increasing mortgage rates.
 Loss of market share.
 Porter’s Five Forces
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Model
Threat of New Entrants
High:
• Chinese Auto Industry

Bargaining Power of Bargaining Power of

Suppliers Industry Rivalry Buyers
Low: High: High:
• Option for Outsourcing • Numerous competitors • To many models and
to low-cost destinations • Low switching costs options
• Forward Integration

Threat of Substitutes
High:
• Alternative Fuels
• Modes of Transportation
• Customer Loyalty
 Industry Analysis: EFE
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 Industry Analysis: CPM
28 DiamlerChrysler
Ford GM AG Toyota

Weight Rati Weighted Rati Weighted Rati Weighted Ratin Weighted

Critical Success factors s ng Score ng Score ng Score g Score

0.0 to
1.0 1 to 4 1 to 4 1 to 4 1 to 4

Global Expansion 0.14 2 0.28 3 0.42 2 0.28 3 0.42

Financial Position 0.10 2 0.2 4 0.4 3 0.3 3 0.3

Growth 0.16 1 0.16 3 0.48 1 0.16 4 0.64

US Market Share 0.20 3 0.6 4 0.8 2 0.4 2 0.4

Customer Loyalty 0.15 4 0.6 3 0.45 4 0.6 3 0.45

Hybrid/Fuel Efficient Vehicles 0.18 3 0.54 3 0.54 2 0.36 2 0.36

Management Experience 0.07 3 0.21 4 0.28 3 0.21 3 0.21

Totals 1 2.59 3.37 2.31 2.78

 Environmental Analysis
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• Reduce CO2 Emissions

• Clean diesel fuel technology
– BLUETEC – reduce nitrogen oxide levels
• Reuse of car components
 Competitive Analysis
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 Toyota, Honda, and Nissan have grown in market

share largely as a result of their ability to deliver
better products at lower prices, particularly for
more fuel efficient smaller vehicles.
 Toyota has
 High Quality, High Safety Ratings (NHTSA)-5 star
ratings
 Streamlined operations with similar models globally
 Hybrid models across all segments
 Ford has been more successful than both GM and
Chrysler in reducing legacy costs.
 Competitive Analysis (cont.)
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 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”

 Competitive Advantage
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 Cost Advantages:
 low production cost
 cut down of huge expenditure on raw materials
 the online manufacturing process
 Differentiate Advantages
 production of smart cars with fuel efficiency
 centralized decision making system.
 increased market share.
 Ford SYNC - fully integrated communication and
entertainment system
 Product Life Cycle
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TRUCKS
CARS
COMER-TRUCKS
SUVs
PINTO
E-
CARS
 Outline Outline
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 Value Chain Analysis

 Strategy implementation
 Organizational Culture
 Products, Sales and Revenue
 Value Chain Analysis
General Administration –It should use high level of information
system to make strategic and routine decisions.

HR Management – Strong management with continuous evaluation process.

Healthy relation with labor union.
Technology and Systems – use the high-tech information technology to
integrate suppliers.
Procurement – Minimize dependence on a single supplier. Leveraged strong buyer
power into timely, low-cost, and high quality of raw materials. Strong long lasting
relationships with suppliers and efficient inventory management.
Inbound Operations Outbound Marketing Service
Logistics High level of Logistics and Sales High level of
•Efficient automation. •Reduce •Develop service to
inbound delivery time Quality after sales
warehousing •Increase •Increase customers
system efficiency of brand loyalty
•Quality finished •Increase
inspection at product demand
supplier level warehousing creation

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Primary Activities
 Strategy implementation
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 ‘One ford’ strategy

 Friendly competition
 ‘Less is more’ new approach
 Reduction of complexity
 Creating a new corporate culture
 A shift toward smaller and more fuel-efficient
cars
 Globalizing the Ford brand
 ‘One Ford’ approach
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 One team
 People working together as a lean, global enterprise for
automotive leadership
 Measured by customer, employee, dealer, investor, supplier,
council and community satisfaction
 One goal
 An exciting viable Ford delivering profitable growth
 One plan
 Aggressively restructure to operate profitably at the current
demand and changing model mix
 Accelerate development of new products customers want and
value
 Finance plan and improve balance sheet
 Work together effectively as one team
‘Less is more’ new approach
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 The ‘bigger is better’ worldview defined ford for

decades
 Replaced with a new approach: less is more
 Cut costs
 Transform the way it did business than to
measure market share
A New Corporate Culture
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 Structural and procedural changes

 Executives meet with Mulally every week
 ‘we are actually committed to hitting the
numbers.’
 Team working

 Senior executive reorganization

 Report directly to him
 Cost Advantage Through Focus
(A shift toward smaller and more fuel-efficient cars)
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 Oil prices persistently increasing over the last

few years
 A dramatic change in consumer’s car buying
habits, reducing the demand for large vehicles
 leased cars are sold for much less than their
residual values
 A change in products, shifting to smaller and
more fuel-efficient cars
Globalizing the Ford brand
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 Globalize the Ford brand

 All Ford vehicles competing in global segments
would be the same in North America, Europe, and
Asia within the next five years
 Deliver more vehicles worldwide from fewer
platforms and maximize the use of common
parts and systems
 reduction of costs in the purchasing and
manufacturing processes
Products, Sales and Revenue
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 Sells broad range of

automobiles under
different brand names.
 Strong growth in sales all
over the world.
 14 straight quarters of
operating profit in 2012
 Tough competition from
other brands like GM and
Chrysler.
 Outline Outline
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 Profit Margin
 Market Segmentation
 Current Strategies
 Future Strategies
 Recommendation
 Future Product
 Conclusion
 Profit Margin
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Profit margin represents the percentage of revenue that

a company keeps as profit after accounting for fixed and
variable costs.
 Profit Margin
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 2008
 5.98 Billion
 2009
 6.23 Billion
 2010
 6.12 Billion
 2011
 6.21 Billion
 2012
 6.56 Billion
 Effects on Profit Margin
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 Ford started to hire more employees

 Ford must increase prices

 There have been new implications for strategy

 Market Segments
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Market Market Segment Market Sub segment

Rally cars
Sports
Cars
Racing
FORD cars
Motor
Cars
Economic
vehicles
Buses

Trucks
 Ford racing cars
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Ford Mustang GT (racing GT car)

Jari-Matti Latvala driving Ford Performance Racing Ford

the Ford Focus RS WRC 09 in Falcon V8 Supercar at Eastern Creek in
2010. Australia in 2008.
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 Market Segments
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Market segmentation approaches-

Geographic Demographic
Segmentation Segmentation
-ford aims to grab the -FORD FOCUS aims for
market of UK as well as young people, ladies and
India, China, Malaysia average income
consumer

Physiographic
Segmentation Behavioral Segmentation
-FORD FIESTA comes at -with the benefit for
reasonable price safety and fuel efficiency
 Ford Current Strategies
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 Ford Current Strategies Cont(..)
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 Ford has a strategy on new key design

 Ford is beginning to use Solar energy to power
their manufacturing plants
 Global Electrification strategy
 Ford has a very strong marketing strategy as they
market all of their vehicles differently
 Ford is making more hybrid vehicles through the
increase use of renewable and recyclable
materials
 Ford is developing natural-fiber composites as a
potential substitute for the glass fibers traditionally
used in plastic car parts to make them stronger
while reducing vehicle weight
 Future Strategy
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 Future Strategy
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 Reduce manufacturing expenses by 15-20%

 Introduce new small fuel efficient vehicles
 Enter Latin American and Asian market with hybrid
vehicles
 Develop affordable electric car for US market
 Increase market share
 Manufacturing of new small fuel-efficient vehicle
 Entering the Latin American and Asian market with
hybrids $ 20 billion
 Implementation of electric car in the US market $ 13
billon
 Total Cost = $ 40 billion
 Recommendation
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Increase total sales in

European Auto Industry

Become industry
leader in the Chinese
market

Pass General Motors

and become the highest
 Future Product
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 Conclusion
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In spite of having strong competition in market,

Ford is still dominating the motor industry as
well as their business strategies are quite
strong for sustaining in this market.
 References
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 www.ford.com
 https://ycharts.com/companies/F/profit_margin
 http://www.slideshare.net/Harrisa011/fords-strat
 https://corporate.ford.com/innovation/innovation-ideas
 http://www.ford.com/cars/fiesta
 http://www.advfn.com/stockmarket/NYSE/F/financials
 http://www.at.ford.com/news
 http://www.1000ventures.com/business_guide/marketing
_main.html
 QUESTIONS?
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