39882905 Strategic Analysis on Ford Motor

7/21/2019 39882905 Strategic Analysis on Ford Motor

1/20

FORD MOTOR COMPANY

CASE STUDY


2/20

Ford Motor Company

Submitted By

MUHAMMAD EBAD

MAHEEN IFTEKHAR

RABIA IBA!

SHAMA NASEEM

Submitted to

MAM SAIRA IBRAHIM


3/20

Introdu"tion

U.S. automotive corporation Ford motor company. Founded in Detroit, Michigan in 1903 byHenry Ford and a group of invetor, the company introduced the huge!y uccefu! Mode! " in190# and by 19$3 %a producing more than ha!f of a!! U.S. automotive vehic!e.

"hrough the &inco!n Motor 'o. (ac)uired in 19$$*, Ford produced !u+ury &inco!n and'ontinenta!. fter year of dec!ining a!e, the Mode! " %a ucceeded by the Mode! in19$- other companie uch a /enera! Motor too the opportunity to mae eriou inroadinto Ford dominance. "he company %a reincorporated in 1919, %ith Ford and hi fami!yac)uiring fu!! o%nerhip. Henry on 2de! erved a preident 1919 43, and Henrygrandon Henry Ford 55 !ed the company 1946 -9, reviving it fortune coniderab!y.

5t toc %a firt pub!ic!y traded in 1967. Ford ac)uired the 8ritih automaer aguar in 19#9 90, bought the renta! car company Hert: 'orp. in 1994, and purchaed the automobi!ediviion of ;o!vo in 1999. &ater ac)uiition inc!uded ton Martin and the &and he?iang /ee!y Ho!ding, parent of /ee!yutomobi!e, for about @1.3 bi!!ion cah and other monetary conideration.

'urrent!y Ai!!iam Ford i performing the duty of e+ecutive chairman of the board in the

orgni:ation.


4/20

Ford Motor# Ana$y#i#

%ur &i#ion

"o become the %or!d !eading 'onumer 'ompany for automotive product and ervice.

%ur Mi##ion

Ae are a g!oba! fami!y %ith a proud heritage paionate!y committed to providing perona!mobi!ity for peop!e around the %or!d.

Ae anticipate conumer need and de!iver outtanding product and ervice that improvepeop!e !ive.

&i#ion E'a$uation

"he viion tatement i )uite %e!! organi:ed a it high!ight the product and offering made bythe company. 5t a!o high!ight that the company i gro%th oriented and %ant to be the !eadingcompany in automotive indutry.

Mi##ion #tatement E'a$uation

Ae are a g!oba! fami!y %ith a proud heritage paionate!y committed to providing perona!mobi!ity for peop!e around the %or!d (").Ae anticipate conumer need (a)and de!iver outtanding product and ervice that improvepeop!e !ive (*)

+ropo#ed &i#ion

Component#

a 'utomer Be

b Croduct =r Service o

c Maret Be

D "echno!ogy o

2 'oncern for urviva!, gro%th E Crofitabi!ity o

F Chi!oophy o

/ Se!f'oncept o

H 'oncern For Cub!ic 5mage Be

i 'oncern for 2mp!oyee o


5/20

Ford Inspire the way you drive!

+ropo#ed Mi##ion

Providing the global customers (a) with the premium quality and the state of art technology

catering their automotive needs (b) as well as covering the aspects of comfort and stylelong with the team of professionals (i) pursuing the continuous innovation (d) and growth

(e) globally (c) " nd creating the value for our customers# (f) through ma$ing positive

contribution to the society considering their health and safety issues (h)%

C+M

Ford ,-M Toyota

Criti"a$ Su""e##

Fa"tor# .ei/*t# Ratin/#

.ei/*ted

S"ore Ratin/#

.ei/*ted

S"ore Ratin/#

.ei/*ted

S"ore

HybridGFue! 2fficient;ehic!e 0.16 3 0.46 3 0.46 $ 0.3

Croduct ua!ity 0.16 4 0.7 3 0.46 3 0.46

Crice 'ompetitivene 0.$ $ 0.4 $ 0.$ 4 0.#

Management 0.06 $ 0.1 3 0.16 3 0.16

Financia! Coition 0.1 $ 0.$ 3 0.3 3 0.3

'utomer &oya!ty 0.1 3 0.3 3 0.3 4 0.4

/!oba! 2+panion 0.1 $ 0.$ 3 0.3 3 0.3

Maret Share 0.16 $ 0.3 4 0.7 $ 0.3

"ota! 1 $.66 $.-6 3

%pportunitie#

Demand and trend for hybrid energy vehic!e.

'hina, a vibrant maret for automotive indutry.


6/20

2+ceiv

e a!e to renta! car agencie affecting the brand image and rea!e va!ue. Strict

tandard of '=L emiion reu!t in increaing the manufacturing cot to produce engine. e%

entrant i.e. Honda, "oyota and ian reu!t in tough competition. 'urrency

rate f!uctuation and increaed cot of ra% materia! effect the production and a!e. 'ar

financing ector facing financia! hardhip due to increaing mortgage rate. &ac of

deired vehic!e avai!ab!e on the dea!erI !ot.


7/20


8/20

"oyota e!!ing vehic!e through 2commerce (/a:oo.com*. 0.06 $ 0

'hinee auto firm gaining trength and oon to enter in the US maret. 0.07 1 0

Tota$ 5 7


9/20

Interna$ Fa"tor E'a$uation

Key Interna$ Fa"tor#

.ei/*t#

3-345-3

Ratin/#

54 6

.ei/*ted

S"ore

Stren/t*#5ncreaed in revenue to 7N (i.e. @#-.7$ 8* in une 30, $00-. 0.07 3 0.1#

Croduction of hybrid energy vehic!e. 0.0- 3 0.$1

FordI credit diviion achieved an increae of @17.68 in $007. 0.07 3 0.1#

Strong brand recognition a affordab!e and afe vehic!e. 0.0- 3 0.$1

5ncreae in C/ diviion from @ #.0 #.7 8 in $007. 0.07 3 0.1#

2ffective ditribution and manufacturing channe! covering 1-.6Nof maret hare in the automotive indutry. 0.06 3 0.16

Aor!dI !arget !oving roof in Michigan. 0.06 4 0.$


10/20

S+ACE MATRI;

Finan"ia$ Stren/t* Ratin/ Indu#tria$ Stren/t* Ratin/

&everage 1 1 Crofit Cotentia! 4

2arning Cer Share 1 1 /ro%th Cotentia! 6Crofitabi!ity1 1 Financia! Stabi!ity 3


11/20


12/20

S.%T MATRI;

Stren/t*# .ea1ne##e#

1. 5ncreaed in revenue to 7N(i.e. @#-.7$ 8* in une 30,

$00-.

1. et income of the company

%a negative @178 in $007. $. Croduction of hybridenergy vehic!e.

$.


13/20

6. !!iance %ith the 8ritih Cetro!eumto deve!op hydrogen po%er.

7. High e+pectation of conumer.

-. FordI JSMa+K 'ar of the year in2urope in $007.

T*reat# ST .T

1. 2+ceive a!e to renta! caragencie affecting the brand image and

rea!e va!ue.

1. pp!y maret penetrationtrategie g!oba!!y * ponorevent re!ated to port,entertainment etc 8*Cartnerhip %ith a te!eviionchanne! that %i!! dip!ay adof ford motor in differentinterva! '* Deve!oping ofFord 8!og

(S3,S6,S9,"3,"#,"9*

1. !!iance %ith competitor orhori:onta! integration hou!d beapp!ied.

( A$,A3,A4,A6,"$,"3,"4*

$. Strict tandard of '=L emiionreu!t in increaing the manufacturingcot to produce engine.

$. See 'ot effectivetrategie uti!i:ing a!ternativeenergy in production and ue8ac%ard integrationtechni)ue to overcome highcot.(S7,S#,S9,"$,"4,"7*

$ Croviding monetary pacageto dea!er or providing omepercent of company hare(A7,"7*

3. e% entrant i.e. Honda, "oyotaand ian reu!t in tough competition.

4. 'urrency rate f!uctuation andincreaed cot of ra% materia! effect

the production and a!e.6. 'ar financing ector facing financia!hardhip due to increaing mortgagerate.

7. &ac of deired vehic!e avai!ab!eon the dea!erI !ot.

-.


14/20

Re'enue# @ Re'enue# +roit @ +roit @ Mar1etS*are

@ ,rot*

Rate

USA 79,4$6 49.00N (16,99$* 91.$3 17N 10N

SA 6,79- 4.00N 771 (3.-* 11.6N 1#N

Europe 30,40# $1.40N 3-1 ($.$* #.6N 3N

+A, 30,0$# $1.00N ($,3$$* 13.$4 1.1G$.1N 6N

A#ia

Ari"a

7,639 4.7N ($60* 1.47 $.4N 10N

Credit

inan"in/

17.# 0.01N 1.977 0.01$ 7N 1$N

Tota$ 14$,113.# 100 (1-,630.034* 100


15/20

US 49NS 4N2U $1.4NC/ $1NS5 4.7N

'


16/20

T*e interna$4e2terna$ Matri2

;=&;= 2F2 ( $.7* 5F2 (3.$6*

M="=


17/20

,rand #trate/y Matri2

Rapid Market Growth

Quadrant II Quadrant 1

1 I

Strong

Competitive

Slow Market Growth

WeakCompetitive

Position

Quadrant III Quadrant IV


18/20

E'a$uation 0

Ford fa!! in the econd )uadrant of grand trategy matri+ a it facing huge !oe and itcompetitive poition ha a!o been affected by ne% entrant in the automotive indutry o it ha %eacompetitive poition and the maret gro%th i rapid. 5ncreaing conumerI e+pectation had made

the environment more competitive a on one hand it had provide a room for innovation but due tocontinuou riing price of ra% materia! and ga price and a!o the currency rate f!uctuation, it habeen difficu!t for the firm to manufacture ne% mode! fre)uent!y. far a thi current cenario i concerned appropriate trategie %ou!d be

Mar1et +enetration0

pp!y maret penetration trategie g!oba!!y.* ponor event re!ated to port, entertainment etc.8* Cartnerhip %ith a te!eviion channe! that %i!! dip!ay ad of ford motor in different interva!.'* Deve!oping of Ford 8!og.

+rodu"t De'e$opment0

* Croduction of fue! efficient car.8* Croduction of Hybrid energy vehic!e.

Horionta$ Inte/ration0

!!iance %ith the competitor can be he!pfu! to achieve competitive advantage by combining theditinctive competencie of both the firm.

S+M

5-App$y mar1et

penetration

#trate/ie#/$oba$$y

7- +rodu"tion

o ue$ei"ient "ar#-

8- A$$i

it*"ompe

Key Fa"tor# .ei/*t AS TAS AS TAS AS

E2terna$

%pportunitie#

1. Demand and trend for hybrid energyvehic!e. 0.0# $ 0.17 3 0.$4 1

$. 'hina, a vibrant maret for automotiveindutry. 0.0- 3 0.$1 4 0.$# $

3.


19/20

T*reat#

2+ceive a!e to renta! car agencieaffecting the brand image and rea!e va!ue. 0.06

Strict tandard of '=L emiion reu!t inincreaing the manufacturing cot to produce

engine. 0.0- 1 0.0- $ 0.14 3e% entrant i.e. Honda, "oyota and ianreu!t in tough competition. 0.0# 4 0.3$ 3 0.$4 $

'urrency rate f!uctuation and increaed cotof ra% materia! effect the production anda!e. 0.0# $ 0.17 3 0.$4 4

'ar financing ector facing financia!hardhip due to increaing mortgage rate. 0.06

&ac of deired vehic!e avai!ab!e on thedea!erI !ot. 0.07


20/20

$.

Documents

39882905 Strategic Analysis on Ford Motor