1. By: Jennifer Brown Puneet Kankaria Cody Reynolds
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: Competitor Outsourcing
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 Too many layers of Management
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 Public Transportation
Chinese Auto Makers (Greely,SAIC)
Public Transportation
Bus
Railway (Metro)
Loss of Market Share

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

17. 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

18. 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

19. Company Update
Ford is producing less SUVs and trucks due to soaring gas prices
Ford Focus ECOnetic – one of the new models to be launched for better fuel efficiency (66mpg)
New Ford Flex has new twist in interior design from Anthony Prozzi (DKNY designer)

20. 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)