Ford Motor Company - A Case Study Presentation with transitions

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Ford Motor CompanyCHETAN KHANNA

HISTORYHenry Ford began this corporation on June 16, 1903 with 11 business associates & $28,000 in capitalFord faced with minimal leadership problemsOver 20 years, CEOs turned over 13 timesCurrent CEO Allen Mulally was appointed on Sept 2006CHETAN KHANNA

CHALLENGESCHETAN KHANNA

CHETAN KHANNAFUNCTIONAL STRATEGYResearch & development:-develop alternative fuel vehicles & associated technology Fords primary engineering effort attractive safety & convenience features.Safety features- Roll stability control for its car models, Advance Trac, adaptive cruise control.

CHETAN KHANNAImplemented new websites for North America dealerships.Innovation as their strategy. Product design that demonstrates confidence.

Push targeted ads & promotions out to customers through its websites.

BRANDING & MARKETING:-CHETAN KHANNAGlobal powertrain strategyProduction of next-generation engine plants Medium-sized production model of about 325,000 units annuallyThis new technology helped in enhancing efficiency and allowing Ford to adapt quickly to changing market needs.

Flexible techniques are already being put into operation at other plantsManufacturing equipment and plant-floor layouts will be similar around the world, reducing capital-investment costs.Cross shipping of components between plants is possible, easing launch startups and helping speed products to market.

CURRENT STRATEGIESCHETAN KHANNAPORTERS 5 FORCES

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STRENGTHS Efficient manufacturing chains , assembly lines. It manufactures and distributes vehicle crossways 5 continents. distribution network is one of the biggest networks in the world. It is geographically distributed and most diverse in the auto industry by having 45 distribution centers and 9,500 dealers globally.

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WEAKNESSFord recollected 527,000 Escape sport utility automobiles due to engine fires connected to the anti-lock footbrake connectors. Ford Motors is not able to respond well to the competition from European and Japanese manufacturers. Weak financial position after financial and automotive industry crisis also results in low stock prices. forced to mortgage its factories and even its blue oval logo to borrow more than $23 billion in 2006 and 2007. The payment of this debt is also a burden for the company.

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OPPORTUNITIESProduced fuel-efficient, smaller, and higher-quality models Chinese government condensed automotive taxes in order to encourage declining sales. India , still not a well penetrated marketDiversification in other related and unrelated products or shifting to the hybrid electric engines. The purchasing power of consumers is increasing due to end of financial crisis 2007-10.

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THREATSThe financial crisis of 2007-10 caused spending power of customers to reduceEntry of Asian competitorsNorth American consumers shifted to more fuel-efficient and higher-quality product of European and Japanese automakers. Environmental politics : Emission laws are subject to changeCHETAN KHANNACORE STRATEGYPowertrain strategycommon engine architecturescommunized manufacturing facilitiesmodern, flexible, numerically controlled machine tools that - easily retooled and reprogrammed to perform new tasks with minimal disruption to production.

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THE ECOBOOST REVOLUTION

EcoBoost technology combines turbocharging and direct gasoline injection and is a key part of Ford's overall strategy to improve fuel efficiency and lower CO2 emissions company wide

CHETAN KHANNAPRODUCT PROLIFERATION STRATEGYOffers a wide variety of cars for every segmentAcquired Aston matron, jaguar for premium segment Light trucks, cars targeting price conscious consumers

CHETAN KHANNAOTHER STRATEGIES Introduce advice technology the equalizes diesel and gasoline emissions.Work smarter with what it hasGet rid of needless complexityStreamline operations rather than differentiating process for different countries

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CORPORATE LEVEL STRATEGY

Horizontal integration - acquired to cater to all premium segments - related diversification

Global standardization

CHETAN KHANNABLUE OCEAN STRATEGY

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CURRENT RATIOFord = 0.539General = 0.872Toyota = 1.070

It measures the extent to which the claims of short term creditors are covered by assets that can be quickly converted into cash . Companies who do not have a min ratio of 1 can lead to bankruptcyCHETAN KHANNA

MCAP/SALESFord = 0.089Toyota = 1.0419Honda = 0.724Daimler Chrysler = 0.314CHETAN KHANNA

RECOMMENDATIONSCHETAN KHANNA

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