FORD COMPANY BY : JUNE, MU, YOLANDA, KELLY, BENJAMIN
FORD COMPANYBY : JUNE, MU, YOLANDA, KELLY, BENJAMIN
Part 1: The American automaker
PRESENTATION OF THE COMPANY HENRY FORD HISTORY OF THE STRATEGY KEY INFORMATION THEIR ACTIVITIES ARRAY OF PRODUCTS
Henry FORD
“ Henry Ford created the Ford Company with only 28 000$ dollars in cash ”
1863 –1947
Company’s locationHeadquarters – “The glass house”
Location – Michigan, US
Key executives
William C. Ford Jr – Executive Chairman Alan R. Mulally – CEO
History of the development
Production of a single product – Ford T
Concentric diversification strategy
International competition strategy
1908
1917
1989
Ford T
Key information
Ford company headquarters are based in Dearborn, Michigan 5th largest car company worldwide, with an annual profit of 5,6 billion $ (2012) Ranked 9th on the 2012 Fortune 500 list About 224 000 employees working across 6 continents A total of 90 plants
Their activities
Products Cars Automotive spare parts
Services Vehicle leasing Vehicle service Automotive Finance
Array of brands & products
Range of car Cars Crossovers & SUVs Trucks & Vans
Their brands
Shareholders of Mazda Aston martin Changan
Ford Focus Ford Expedition Ford F-150
Part 2THE VISION & MISSION OF THE COMPANY THE VALUES
”
“ Being the world's leading Consumer Company in
automobile industryFORD COMPANY’S VISION
The MissionIn resume: Restructuration of the relation
between all the actors who work together
Anticipating consumer need Creating excellent products Having a sustainable growth
that drives profits
Ford important values
Customer satisfaction Own media and information
center
Employees first Global Pulse and
engagement survey Negotiated agreements with
labor unions in 17 countries globally.
HR technologic platform
Respect and continuous improvement Respect the importance of
dealers The Ford academy driving skills Emphasize the innovation
Part 3ANALYSIS OF THE EXTERNAL ENVIRONMENT MAIN COMPETITORS INDUSTRY ENVIRONMENT MACRO ENVIRONMENT
Main Competitors
General Motors210 000 employees4,7 Billion $
Volkswagen570 000 employees6,8 Billion $
Toyota320 000 employees5,2 Billion $
Industry environment Industry
rivalry
VERY HIGH
Threat of new entrants
LOW
Buyer power
VERY HIGH
Power of substitutes
HIGH
Supplier power
RELATIVELY LOW
Porter Five forces
Michael Porter
Macro environment – P E S T
Political
Economic
Social
Technological
Political
• Foreign laws and trade regulations• Different labor Unions
Economic
• Oil price fluctuations are difficult to manage• Financial crisis of 2008• Potential growth on foreign market (China, Russia, UAE …)
Social
• Consumer attitude are evolving – Green cars• Consumer habits are different in every countries
Technological
• Intelligence system on-board• Fuel-efficient vehicles• Electric vehicles
Trends
Part 4
THE CURRENT BUSINESS STRATEGY 5Q MATRIX BCG MATRIX SWOT CREATING VALUE FORD’S COMPETITIVE ADVANTAGE CURRENT STRATEGY
The five key questions of business strategy
Q1 : Growth and profitability• Revenue 5 years average growth : 0,09%
Q2 : Products and services• Automotive and leasing activities
Q3 : Customer and geographic markets• Worldwide, especially China, Russia and UAE
Q4 : Generic strategy• Focus and the quality and innovation
Q5 : Position in the industry• Become industry leader in China and exceed GM
on the American market
Matrix BCG
•Most valuable product•Ford invests a lot on carCars•Similar to cars market •Hard competitionSUVs•Hard competitionTrucks•Market is growing up•Still not mature enough
Electric cars
Matrix SWOT
Strengths- Good reputation
- Number of dealers - Efficient Hybrid car
- Manufacturing facilities across 6
continents- Large range of
cars
Weakness- Car recalls
- Trucks market shrinking- Firing of
employees - Weak North
American market
Opportunities
- Hybrid car- European and Asian
market
Threats- Harder
competition- Oil prices fluctuation
- World economy- Material price
increase
From Michael Porter (1979)
“ Business strategy is about creating value ” Chap1 page 36
For customers1. Focusing on the quality and safety2. Performing customer care service3. Ethical consumption – Green energy4. Retailers all over the world5. Latest technologies
Objective : Create customers loyalty
Ford’s competitive advantages
Intangible resources
Reputation 5Th biggest automobile manufacturer Recognized brand for tradition,
quality and safety Important relationship with suppliers
and dealers Human Specific management of talents Diverse work force
Tangible resources
Physical resources Important manufacturing capacity and
retailing shop High technologies machinery and
equipment Financial resources Significant borrowing capacity for
operation (14,4 billion $ between 2008 – 2012)
Organization capabilities
Well organized in the talent acquisition and team management
The organization of the whole company is very efficient. Each plant is built to give a very flexible supply chain. Each service are deeply connected amongst themselves.
Respond quickly to changing market needs
The relationships between strategy, environment and capabilities.
Macro and
industry
environment
Business strategy
Organisational
capabilities
“ The only real mistake is the one from which we learn nothing ” Henry Ford
Past strategy Old approach “ Bigger is better ” Corporate orientated strategy Mobility strategy to determine the
long term profitability
Current strategy New approach “ Less is more” Sold off Jaguar, Land rover and Volvo to pay
off their debts A very strong sustainability strategy Accelerate the development of hybrid and
fuel-efficient vehicles Reorganized their marketing strategy,
following the market and the type of car
The end – Questions ?