...Ford Motor Company Analysis Introduction Ford Motor Company was originally founded by Henry Ford in Dearborn, Michigan on June 16, 1903. Ford Motor Company has a very glamorous history. Since it was found in the early 1900’s, Ford positioned them as the reformer of the car manufacturing industry. Their mission was clearly stated in words, “began a manufacturing revolution with its mass production assembly lines”. And they rendered the corporate strategies matching with their goal in later years. “They introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's methods came to be known around the world as Fordism by 1914”. (“The Ford Story”) http://www.thefordstory.com/ the combination of attractive product design with the efficiency in manufacturing brought them not just profits, but popularity and reputation. Some of their famous classic designs like Model T, 500hp GT, Mustangs, Sport Utility Vehicle (SUV), Taurus and the best-selling F-series truck are still sold well. But Ford has been on the downhill since the beginning of the 21st century. Because of the crush of the bad economy and flawed management strategies, Ford suffered a lot and the previous ranking is now after Toyota and General Motor. It’s quite a burden to the CEO, Alan Mulally, who was elected as the new CEO in 2006 after Bill Ford stepped down...
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...Lefkoff BMGT 350-0101 16 September 2014 Ford Motor Company SWOT Analysis Strength: Ford Motor Company’s strength lays in its ability to use internal resources such as knowledge and reputation to maintain its dominancy in the automotive industry. Ford has managed to survive depressions, recessions, and internal breakdowns to become one of the biggest automaker in the world. What sets Ford apart from its competitors is the amount of knowledge it has acquired in the automotive industry for over a hundred years. In the business world, time plays an enormous role because it separates the weak from the strong. Ford is able to maintain its popularity by introducing new and innovative ways to produce and sell automobiles. Ford started with the assembly line, which revolutionized the automotive industry making it faster, cheaper and safer to manufacture vehicles. Then, it continued with the introduction of dealerships all around the United States enabling accessibility to transportation, which was soon to be the fastest growing industry in the world. Knowledge is key in any business, and Ford recognizes the strength and advantage it has over its competitors, by simply being in the business longer and learning from the past. Another major strength Ford has is its reputation. Ford is recognized for its unparalleled ability to speak to the American people. When people think about cars and America, they immediately think Ford. Why? Ford has branded itself as the father of the automobile...
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...Ford Motor Company (Case Analysis) Group #6- TGAA TTH 1:00 Member 1- Taylor O’Neill Member 2- Knyra Ratcliff Member 3- Alex Perkins Member 4- Xu Han Member 5- Kevin Carter Member 6- Alex Dundon/ Nick Tran Presentation Date: 11/17/15 Introduction Our group has chosen Ford Motor Company as our case analysis subject. Ford is an American multinational automaker and was founded by Henry Ford in 1903. Ford Motor Company is the second largest automaker in the United States and is also the fifth largest automaker in the world. Throughout the paper we will be sharing background information of the company such as the vision statement, mission statement, company history, the industry, and our company’s strategy. We will also be sharing the elements of Ford’s internal and external environment (includes historical and competitor financial information), problem statements, possible alternative solutions to those problems, and our recommendations as to which alternative solutions would be best used in response to the problems at hand. Towards the end of our case analysis on Ford Motor Company there is a visual present for both the SWOT analysis and the grand strategy matrix. We have provided appropriate and significant content in completion of this case analysis. Background Vision Statement “To become the world's leading Consumer Company for automotive products and services. (Homepage, 2015)” Mission Statement “One Team. People working together as a lean, global enterprise...
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...Ford Motor Company Case Study Introduction and Background The world-renowned automobile organization, Ford Motor Company, located in Dearborn, Michigan, has recently taken on a new CEO. This CEO has changed many things drastically in a short amount of time, including many positive things but also has implemented a few negative changes. Even with the drastic changes, the company still lost billions of dollars in the first three years under the new CEO’s reign, though the third year saw fewer losses than the second year. The CEO must deal with and must overcome many issues, internally as well as externally, to help the company get back on its feet and begin making profit again. Facts The new CEO has been employed at Ford for three years now, and is known for taking Boeing Airlines from suffering huge losses to making huge profits. Ford Motor Company took him on as a means to turn around losses and provide the company with new guidance. The company certainly took on a new direction, with one of the first acts being to bring back the Ford Taurus into the line and dropping truck and SUV production by forty percent. However not all changes were positive, as 46,000 jobs were cut. This decision was made to attempt to consolidate the company’s expenses as the company borrowed $23 billion but has already spent almost $15 billion of it, with no way of paying it back anytime soon. Issues The company is not only suffering considerable losses financially, but is dealing...
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...leadership and how it can impact organizational performance. The role of leadership is vital to an organization’s performance. The way a leader runs an organization is the determining factor of whether or not it succeeds. Many companies have failed due to poor leadership. Leadership is more them management. Effective leadership is a personal role that requires the blending of motivational, strategic and management skills to align focus, energy and drive while creating a culture that encourages individual thinking and attainment. Everyone does not possess the abilities to be a successful leader. The role leadership can have a significant impact on an organization’s performance. The role of leadership sets the tone for the organization and has a trickle-down effect. For example, the organization I work for has been through its share of leaders. Every time the leader changes, it is immediately noticed in the actions of the management team. The management team typically adjusts their management style to that of the new leader. As a result, the entire organization is affected. 2. Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. Mulally’s leadership style at the Ford Motor Company is participative. He encourages the employees to participate, but retain the final say over the decision-making process. Employees feel engaged in the process and are more motivated and creative. Based on the case study, Mulally...
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...yield the greatest profit. From the readings, Milton Friedman and Robert Almeder recognize the merits of a profit-driven economic system. They do not quarrel over the importance of profits. But they do quarrel over whether or not business firms have obligations beyond making profits. A consumer may be a pet owner who feeds and provides care for a beloved animal, a doting grandparent who buys toys and clothes for the grandkids, an individual who wears contact lenses or hearing aids, a patient who buys prescription medications, or vehicle owner. Should a consumer have certain expectations from the suppliers and producers of the products that he buys? Can we trust corporations that they will not produce what will jeopardize the human life? Was Ford to be blame in the pinto case? Must we wait for the characters like “Erin Brokovich” to fight on behalf of the helpless consumers? Who is to be blamed for the McDonald’s hot coffee case-the producer, the consumer or the regulators? Almost thirty years has passed since the Pinto accidents and what followed from it. We still don’t know how “safe” a...
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...Ford Motor Company Pinto Case Karen Nollet, Alonso Miller, Michael Morra, Pamela Tenori MGT/216 Abstract In 1971, Ford Motor Company (FMC), on the advice of then vice-president Lee Iacocca, introduced the first subcompact vehicle, the Ford Pinto. After production, Ford discovered a defect in the design on the fuel system; the gas tank was placed in the rear of the vehicle. This error could cause the vehicle to explode on low speed rear end collisions. Ford conducted a risk/analysis to determine whether to recall the vehicles or leave the situation as is and suffer the consequences as they arise. After concluding that the vehicles could be modified for $11 per vehicle, Ford decided not to recall the vehicles. Based on their risk/analysis the cost to recall the vehicles sold would be $137 million, Ford determined that it would be more profitable to leave the vehicles as is and pay out costs in lawsuits because this figure adjusted to $49.5 million, substantially lower than the cost to recall the product. Ethics and morals would appear to be ignored for profit and gain. Ford Motor Company Pinto Case Ford Motor Company Mission Statement (1996), “We are a global family with a proud heritage passionately...
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...THE FORD PINTO CASE: THE VALUATION OF LIFE AS IT APPLIES TO THE NEGLIGENCE-EFFICIENCY ARGUMENT Christopher Leggett Law & Valuation Professor Palmiter Spring, 1999 Abstract Text of Paper Abstract The cases involving the explosion of Ford Pinto's due to a defective fuel system design led to the debate of many issues, most centering around the use by Ford of a cost-benefit analysis and the ethics surrounding its decision not to upgrade the fuel system based on this analysis. ISSUE Should a risk/benefit analysis be used in situations where a defect in design or manufacturing could lead to death or seriously bodily harm, such as in the Ford Pinto situation? RULE There are arguments both for and against such an analysis. It is an economically efficient method which has been accepted by courts for numerous years, however, juries may not always agree, so companies should take this into account. ANALYSIS Although Ford had access to a new design which would decrease the possibility of the Ford Pinto from exploding, the company chose not to implement the design, which would have cost $11 per car, even though it had done an analysis showing that the new design would result in 180 less deaths. The company defended itself on the grounds that it used the accepted risk/benefit analysis to determine if the monetary costs of making the change were greater than the societal benefit. Based on the numbers Ford used, the cost would have been $137 million versus the $49.5 million...
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...organizational analysis, I wanted to further my knowledge about the car industry. The first prospect that came to mind was General Motors. I picked General Motors because of its popularity in the United States. I had some interesting general knowledge of the company like the dependability and quality of their cars. Some comments were, “I rather have a Chevy Truck than a Ford” and “The general motors cars are more dependable than Ford.” These comments made it clear that I liked the General Motors auto line of cars. Then, I asked myself what would be a cooperate company just as enormous. I came to a conclusion that Ford would be the other company. Though Ford has a nice line of cars, I had some negative thoughts about the company. Acronyms were said such as, “Found On Road Dead” or “Fix Or Repair Daily.” Each of those sayings had put a dent in my thoughts that I would not buy a Ford, not solely on those sayings, but also because of the influence of my parents and other such adverse publicity. These companies have a long-standing tradition in the U.S as manufacturing giants in the automobile industry, since they began here. With these two cooperategiants, I can evaluate and compare both companies financially. My over all preference. was to buy the General Motors line of cars; in doing this project I wanted to know if by researching each company if I would change my mind. Also, this will enable me to draw a conclusion on which company would be a better investment and which company is doing...
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...Business Analysis Part Two Keyah A.Baker University of Phoenix Management 521 Bernard Ruff April 10,2012 Business Analysis Part Two In this paper, the author will discuss Ford Motor Company’s business environment. The author has reviewed Ford’s income statement, balance sheet, and cash flow to determine the financial health of the company. The author will conduct a benchmarking analysis of the company as well. From reviewing Ford Motor Company’s income statement, balance sheet, and cash flow, the author has learned that the company needs to increase their revenue. Their revenue concerns the author because it is a little low, as compared to other companies, GMC and Toyota. It is lower than that of the other two companies. Toyota’s operating income is low, however, and their assets and liabilities equal to the same amount. GMC’s sales and revenue was very high along with its net income. GMC’s liabilities outweigh its assets though, which poses a very big problem. They are spending more than they produce, which is a bad thing. This makes their financial health very poor in that regard. To summarize Ford’s financial health, it could be better. Their gross profit is very low, in comparison to the two other companies. Their operating income leaves much more to be desired. Their income after taxes is more than their income before taxes. Their total assets outweigh their liabilities. They have quite a bit of debt. Moving forward, Ford can...
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...Ford Motor Company: Supply Chain Strategy Executive Summary The Ford Motor Company is a well established, international automotive design and production company that is shifting the company mission to have an emphasis on shareholder value and customer responsiveness. In the face of increasing international competition, Ford has recognized several facets of operations that can be better executed in order to attain the outlined objectives. There has been several alternatives to various operations within Ford that can directly alter the fundamentals of its business, all with a strategic significance put on the supply chain procedures. This case study identifies these options; maintaining current practices and partnerships, standardization of their supply chain and sub-system products to simplify the supply process, adjust the retail services and dealership chains to drive market driven sales and a combination of virtual integration with key suppliers to drive relationship based supply that is determined by a forecast driven sales and production model, called the Ford 2000 Process. Through the evaluation of the presented alternatives, the Ford 2000 Process has been selected as being the most effective path to achieve the corporate goals of the Ford Motor Company. Ford should be able to utilize it’s current market share and global supply network to generate beneficial partnerships on key suppliers and stabilize a fluctuating production model that is riddled with waste...
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...about the analysis of the environment of automobile industry and the marketing strategy for Ford Motor Company. It initiates with examining of external environment of automobile industry by using PEST analysis and Porter's five forces analysis. After the internal analyses that focus on the resource audit on brand, products, markets, technology, people and son on, the value chain analysis of the company will be conduct. Then the generic competitive strategies would be discussed through SWOT analysis, Ansoff Matrix and BCG Matrix in order to identify the general business strategy taken by the Ford Company. After specifying the company strategy by those analysis tools, the strategic evaluations would be drawn together with the strategy control methods. Finally, a suggested recommendation for the company future development will be mentioned at the end of the report. I. INTRODUCTION 1.1 Aim of The Report This report aim to identify the external environmental of the global automobile industry, measure and evaluate viable and sustainable marketing strategies using by the Ford Motor Company. Through appropriate theoretical concepts and models, together with appropriate methodologies, the organization within its contextual setting will be carefully examined, and justify recommendation will be mentioned. Though the report, how a successful corporation is operated and how its business strategy is implemented and controlled will be understood. 1.2 Company Background Ford Motor Company is an American...
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...Ford SWOT Analysis Ford Motor Company has been a well-established company in the automobile industry since the early 1900’s and has been going strong ever since. Starting on a small-scale, Ford has become one of the leading international automobile makers in the industry, and continues to reevaluate itself in order to gain a competitive edge. One tool that a company can use is a SWOT analysis, which is used to identify internal and external factors that may affect the company moving forward in accomplishing its goals. The internal factors include strengths and weaknesses of the company, while external factors are comprised of opportunities and threats. Each of these areas helps a company determine how they want to adapt to their ever-changing surroundings and how they improve from their current state. A strength that numerous Ford customers can agree on is the brand recognition that it has because it is such a well established global power. The globalization of Ford is has helped it grow and is now established in the largest economies in the world. Along with this comes the customer loyalty, because people develop a sense of trust with Ford once attracted initially by the brand power. Also, the brand is recognizable and similar in perception to many customers because the cars do not vary as much from region to region, somewhat creating a Ford community. The brand power enables Ford to attract the customers initially, and then they are able to develop long lasting relationships...
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...Ford Motor Company a Big Three Giant As a manager of a venture capital group, whose capital gains derived from mutual fund investments, and who seek to invest in Ford Motor Company, and analyzing possibilities of investing in mutual fund profits in Ford Motor Company. The company exhibits strength when recent borrowing occurred from the United States government by two of the big three car manufacturers took place. Ford remained defiant, self-sustaining, determined, and marched forward with current capital, and succeeded furthering profits and sales of Ford’s product line. This is a good indicator of stability-singularly, but there must be an in depth study of the business to obtain pertinent data and justifying investment of venture capital. Currently completing a thorough analysis of Ford’s portfolio topics covered includes stability, weak points, seizing opportunities, and last outside influences threatening the stability of the company. Stability Ford Motor Company is a global automotive industry, which manufactures, and distributes automobiles across six continents. The company also engages in other businesses to include financing vehicles the company sells for its customers (CNN Money.com para. 1). The stock average has risen from $10.59 to $10.66 as of close of business September 19th, 2012 (New York Stock Exchange, 2012). This is a good indicator that Ford is on the rise as a giant among the automobile industry. However, other factors are under advisement, and consideration...
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...Ford Case Study Analysis Assignment 2.1 Ford Analysis PSPR 6208 Strategic Marketing and Communications Fall 1 2013 1. Where would you put Ford in terms of competitive position? Why? By shifting their focus, developing a new marketing strategy and focusing on the Ford brand, Ford has dramatically enhanced their competitive position and turned things around for the company. In doing so, they strategically placed themselves back at the top in terms of competitive position. This was no small feat, especially considering the fact that they were in far worse shape than most car companies as recent as 2008 (Kotler & Armstrong pg 547). Ford with the assistance of new CEO Alan Mulally fought hard against bankruptcy and even harder to gain consumer trust in the company and the brand. This strategy has helped Ford to gain a competitive advantage, especially in terms of customer satisfaction. 2. Is Ford a market-centered company? How can it improve in this area? Considering the fact that Ford currently pays attention to both customers and competitors in designing the company’s marketing strategies, I would say they are definitely a market-centered company. This may not have always been the case, as is evident from reading the case study. At some point, Ford took its eye off the market, loosing focus, especially in regards to customer needs. I think that they were driven to shift their focus by several factors, top of mind being the dire economy. Moving forward...
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