FORD: TAURUS TEAM

Group 2:

Reena Villamor

Mabel De Guzman

Irene Mojica

Joanne Evangelista

Strategic Vision

To become the No. 1 consumer company for automotive products and services through delivery of quality and innovative products

and services globally .

Corporate Objectives

To achieve USD1B net income in 2004.To increase global market share to 30%

by 2004.

Present Strategies

Description Develop an innovative and quality vehicle to satisfy car market.

Objective Increase market share to 30% by 2004.

Basis Superior Research and design team.

EXTERNAL ENVIRONMENT ANALYSIS

Potential Changes in the Macro-environment

Economic

– Increase in fuel prices; gasoline shortage

– decline of US auto industry Technological

– invention of small, fuel-efficient cars Social

– Increase in population

– Change in consumer preferences for cars

Changes in the Macro Increase in Fuel Prices Change in Preference Invention of Small Cars

INTENSITY OF RIVALRY HIGHER HIGHER HIGHER Numerous Competitors Higher Higher HigherSlow Industry Growth Lower Higher LowerHigh Exit Barriers Higher Higher Higher

THREAT OF NEW ENTRANTS: LOWER HIGHER HIGHEREconomies of Scale Lower Higher HigherCapital Requirement Lower Lower LowerAccess Distribution ChannelHigher Higher HigherGovernment Policy N/A N/A N/A

THREAT OF SUBSTITUTE PRODUCTS AND SERVICES HIGHER HIGHER HIGHER

BARGAINING POWER OF BUYERS LOWER HIGHER HIGHER

BARGAINING POWER OF SUPPLIERS HIGHER LOWER LOWER

CONCLUSION THREAT THREAT THREAT

Determining Threats/Opportunities: Five Forces

Threats & OpportunitiesThreats

• Increase in fuel prices• Changing consumer preferences• Invention of Small Cars

Opportunities• Increase in population

INTERNAL ENVIRONMENT ANALYSIS

Value Chain Analysis

MARGINS

Value Chain Analysis: Primary Activities

Inbound Logistics

Operations Outbound Logistics

Marketing Sales

Customer Service

Parts and components selection and deliveryChecking of quality and inspection of inbound materials

Effectiveness of production control systems to improve quality and reduce cost. Appropriate automation of production process.

Efficiency of finished goods warehousing and inventory activities.

Effectiveness of market research to identify customer segments and needs.Development of an image of quality and a favorable reputation

Means to solicit customer input for product improvements.Promptness of attention to customer complaints.

Value Chain Analysis: Support Activities

Procurement: System Sourcing, entering into long term contracts with qualified and reliable suppliers and “must see before program”

Technology Development: Ability of work environment to encourage creativity and innovation, Qualification and experience design and process experts, Success of research and development activities in leading to product and process innovations.

Human Resource Management: Effectiveness of procedures of recruiting and training, Good relations with trade unions, Strong levels of employee motivation through pride of workmanship, active participation by managers and technical personnel in professional organizations.

Firm Infrastructure: Establishments of Product Development “Team Taurus”, High level of information systems support, Quality of strategic planning system.

Strengths and Weaknesses

Strengths

– Strong Brand Image

– Strong Research and Development Team

– Strong Management Support

– Good relationship with suppliers

Weaknesses– Quality Control

Family Business Model:

Business Axis:– Maturity

Ownership Axis:– Sibling

Family Axis:– Passing the Baton

Personal Values:

Risk taker Strong advocate of InnovationConsultative vs Autocratic

Strategic Map P

rice

Pol

icy

Geographic Scope

GROUP C

GROUP A

GROUP D

GROUP B

Toyota Motors, Honda Motors

Nissan Motors, Mitsubishi Motors, Chrysler Co.

Kia motors, Hyundai Motors

BMW Co., Mercedes Co.

3-Price Policy

2-Price Policy

1

1-Price Policy

4-Price Policy

5-Price Policy

COUNTRY CONTINENT 1-2 CONTINENT

WORLD

GROUP E

FORD Motors, General Motors

Automotive & Land Transport Industry

• Allotment of more budget to Research and Development for continuous innovation.

•Objective: To achieve market share and income targets

• Basis: Changing Customer Preferences

Corporate Strategies:

FORD Competitive Advantage “TAURUS”

• More spacious vehicle

• More Innovative Sedan

• Lower Maintenance requirement

“Japanese Quality, European Styling and a ride for a modest price”.

Competitive Advantage of FORD

BarriersTo Imitations

Key SuccessFactors

Performance Rewards- satisfaction and loyalty of customers- higher profits- higher market share

Competitive Dynamic ErodeAdvantage- competitors acquiring ofFord employees customer changing valuepreference

Sources of Advantage

- superior financial support- superior R&D resources

Positional AdvantagesRealized- more innovative car for a -modest price

Investment In Renewal

- increase investment in R&D

- investment in employee training & development - investment in technology transfer