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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

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Ford Motor Company

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  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 Ford’s leadership style: “tyrannical dictatorship to professional oligarchy” • Alan Mulally was appointed CEO in September 2006

  3. Outline • External Environment • Business Environment • SWOT • Looking Toward the Future

  4. 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 R&D • AdvanceTrac – vehicle stability • Adaptive cruise control • Intelligent Safety System • Economies of Scale

  9. 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. Industry Rivalry Threat of Substitutes Threat of New Entrants Buyer Power Supplier Power Porter’s Five Forces • HIGH: • Chinese Auto Industry • Low: • Option for Outsourcing to low-cost destinations • Forward Integration • Moderate: • Fleet owners • To many models and options • 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

  15. 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”

  16. 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

  17. 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

  18. 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-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-releases-detail/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-releases-detail/pr-designer-brings-fashion-world-to-28266

  19. 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)

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