1. FORD: TAURUS TEAM Group 2: Reena Villamor Mabel De Guzman Irene Mojica
Joanne Evangelista

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

3. Corporate Objectives To achieve USD1B net income in 2004.
To increase global market share to 30% by 2004.
2001/2002 at 10%,
2003 at 20%,
2007 at 30% due to AFTA and free trade, more competitors (more realistic goal)
Net income increase fr market share increase and innovations, but factored in expenses

4. Present Strategies Description Objective Basis
Develop an innovative and quality vehicle to satisfy car market.
Objective
Increase market share to 30% by 2004.
Basis
Superior Research and design team.

5. EXTERNAL ENVIRONMENT ANALYSIS

6. 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

7. Determining Threats/Opportunities: Five Forces
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 Higher
Slow Industry Growth Lower Higher Lower
High Exit Barriers Higher Higher Higher
THREAT OF NEW ENTRANTS: LOWER HIGHER HIGHER
Economies of Scale Lower Higher Higher
Capital Requirement Lower Lower Lower
Access Distribution Channel Higher Higher Higher
Government Policy N/A N/A N/A
THREAT OF SUBSTITUTE
PRODUCTS AND SERVICES HIGHER HIGHER HIGHER
BARGAINING POWER
OF BUYERS LOWER HIGHER HIGHER
OF SUPPLIERS HIGHER LOWER LOWER
CONCLUSION THREAT THREAT THREAT

8. Threats & Opportunities
Increase in fuel prices
Changing consumer preferences
Invention of Small Cars
Opportunities
Increase in population

9. INTERNAL ENVIRONMENT ANALYSIS

10. Value Chain Analysis
MARGINS

11. Value Chain Analysis: Primary Activities
Inbound Logistics
Operations
Outbound Logistics
Marketing Sales
Customer Service
Parts and components selection and delivery
Checking 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.

12. 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.

13. Strengths and Weaknesses
Strong Brand Image
Strong Research and Development Team
Strong Management Support
Good relationship with suppliers
Weaknesses
Quality Control

14. Family Business Model:
Business Axis:
Maturity
Ownership Axis:
Sibling
Family Axis:
Passing the Baton

15. Personal Values: Risk taker Strong advocate of Innovation
Consultative vs Autocratic

16. Strategic Map GROUP E GROUP A GROUP B GROUP C GROUP D
Automotive & Land Transport Industry
GROUP E
FORD Motors, General Motors
5-Price Policy 1
Price Policy
GROUP A
4-Price Policy
Toyota Motors, Honda Motors
GROUP B
Nissan Motors, Mitsubishi Motors, Chrysler Co.
3-Price Policy
GROUP C
GROUP D
Kia motors, Hyundai Motors
2-Price Policy
BMW Co., Mercedes Co.
1-Price Policy
COUNTRY
CONTINENT
1-2 CONTINENT
WORLD
Geographic Scope

17. Corporate Strategies:
Allotment of more budget to Research and Development for continuous innovation.
Objective: To achieve market share and income targets
Basis: Changing Customer Preferences

18. FORD Competitive Advantage “TAURUS”
More spacious vehicle
More Innovative Sedan
Lower Maintenance requirement
“Japanese Quality, European Styling and a ride for a modest price”.

19. Competitive Advantage of FORD
Sources of Advantage
superior financial support
superior R&D resources
Key Success
Factors
Positional Advantages
Realized
more innovative car for a
modest price
Performance Rewards
satisfaction and loyalty of
customers
higher profits
higher market share
Investment In Renewal
increase investment in R&D
investment in employee training
& development
investment in technology transfer
Competitive Dynamic Erode
Advantage
competitors acquiring of
Ford employees
customer changing value
preference
Barriers
To Imitations