...Ford`s Outsourcing Problem Ford Motor Company is an automobile Multinational Enterprise established in Detroit in 1903. Ford has been sustaining heavy profit losses in its European operations due to the economic downturn affecting most of Europe. The “company now expects Ford Europe’s pre-tax loss for full year 2012 to exceed $1.5 billion” (http://media.ford.com/images/10031/3Q2012_Financials.pdf, 2012). “Business refers to any type of economic activity in which goods or services are supplied in exchange for some payment” (J. Morrison 2010) and in this case Fords European vehicle sales market has been saturated through less demand for its products. Ford said European car sales across the industry were the lowest in 20 years (BBC News, 2012). The main losses are being sustained within Europe in which Ford operates in 51 different European markets. Ford`s strategy is likely to be offshoring manufacturing of the Transit Van, meaning the closure of its South Hampton Factory with immediate redundancies of 500 employees with closing parts of the Dagenham Plant which will push redundancies to 1400. Although is this likely to be the answer? What will be the effect upon the microeconomic factors? Especially the level of job losses of stakeholders, including suppliers and employees, further down the chain. Is it ethnical of Ford to simply offshore production to a cheaper labour area such as Turkey or is this just a simple case of how Britain’s Manufacturing industry is further...
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...Ford’s business strategy is embodied in our ONE Ford plan. ONE Ford expands on our Company’s four-point business plan for achieving success globally. The four-point business plan consists of the following: Aggressively restructure to operate profitably at the current demand and changing model mix Accelerate development of new products our customers want and value Finance our plan and improve our balance sheet Work together effectively as one team Building on this plan, ONE Ford encourages focus, teamwork and a single global approach, aligning employee efforts toward a common definition of success. It emphasizes the importance of working together as one team to achieve automotive leadership, which is measured by the satisfaction of our customers, employees and essential business partners, such as our dealers, investors, suppliers, unions/councils and the communities in which we operate. We have defined a set of behaviors that are expected of all employees to support the ONE Ford plan. The goal of ONE Ford is to create an exciting and viable company delivering profitable growth for all. We are focused on building: Great Products, a full family of vehicles – small, medium and large; cars, utilities and trucks – with best-in-class quality, fuel efficiency, safety and smart design Strong Business, based on a balanced portfolio of products and global presence; and Better World, accomplished through our sustainability strategy Our aim is to have profitable growth across...
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...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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.../strategic-alignment/strategic-alignment-business-cases/the-rise-of-toyota.aspx Bunkley, N. (2016). Ford won’t blindly chase market share. Automotive News, 90(6708), 0032. Edwards, J. (2012). Mastering Strategic Management ( 1st Canadian Edition ed.). Retrieved 04 01, 2016, from https://opentextbc.ca/strategicmanagement/chapter/types-of-international-strategies/ Funaru, M. (n.d.). Toyota’s business strategies in international markets. Braşov: University of Braşov. Retrieved 04 01, 2016, from http://feaa.ucv.ro/annals/v3_2010/0038v3-004.pdf Gillis, C. (2015, September 13). What’s it really like in the driver’s seat of a driverless car? Mclean’s. Retrieved from http://www.macleans.ca Henry, J. (2015, August 30). One Ford, Part Two; Tweaking The Master Plan. Forbes. Retrieved from http://www.forbes.com Hitt, M., Ireland, R. & Hoskisson, R. (2015). Strategic management : competitiveness & globalization : concepts & cases. Stamford, Conn: Cengage Learning. Negi, R. (2013, 03 27). Toyota: Analysis of Vision Statement, Corporate Level Strategies & SWOT. Retrieved 04 02, 2016, from Slideshare: http://www.slideshare.net/rohannegi/toyota-analysis-of-vision-statement-corporate-level-strategies-swot NYSE. (2016). Financials for Ford Motor Company. Retrieved March 28, 2016 from http://www.google.com/finance?q=NYSE%3AF&fstype=ii&ei=n0f5VrjeEojUigKop5rADg NYSE. (2016). Historical prices for Ford Motor Company. Retrieved March 28, 2016 from http://www.google.com/finance/historical?q=NYSE%3AF&ei=aUj5VrG3Eq3BiwL3zZzwCQ&start=30&num=30 ...
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...Study of Promotional Strategies for Cars in India 1 Table of Contents 1. Objective 2. Scope of Work 3. Rationale 4. Theoretical Framework and Review of Literature i. ii. iii. iv. Promotional Strategy Promotional Mix Message and Media Strategy Communication Model- AIDA 5. Promotion Process For Cars i. ii. iii. iv. v. vi. vii. viii. ix. Selecting the target market Product and Brand Positioning Promotional Decisions Advertising Direct Marketing Interactive/Interactive Marketing Sales Promotion Publicity/Public Relation Personal Selling 6. Ford Fiesta and its Promotions i. Target Market 2 ii. Adopting offer to suit target segment iii. iv. Market Competition Strategic Promotion of Ford 7. Questionnaire 8. Analyzed Survey Report of the Questionnaire 9. SWOT Analysis 10. SWOT Analysis of Ford Fiesta 11. Conclusion 12. Bibliography 3 Chapter 1 Introduction 4 Objective To study and analyze the elements of Promotional Strategies. Study and analysis of promotional strategies of Ford India for its product Ford Fiesta. Study the customer response regarding the promotions of cars in India. Scope of the Project Study the basic aspects of Promotional Strategies such as Sales Promotion, Personal Selling, Advertising and Publicity. Studying the customer response regarding promotions of cars in India through a questionnaire. Study the promotional strategies of Ford Fiesta with all the tools of promotion. Analyze and interpret the...
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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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...RUNNING HEAD: ISSUES AND CASE ANALYSIS American InterContinental University MGT650: Strategic Management Unit 4: Issues and Case Analysis Dr. Kimberly Bennett October 27, 2013 ABSTRACT This report will explore the presentation of SWOT analysis, strategy, and issues of Ford and Toyota. INTRODUCTION Ford is one of the first American automobile makers in the world and the second largest United States automobile maker to sell cars, trucks, buses and automotive parts (Ford, 2013). Ford is the fifth largest vehicle maker in Europe (Ford, 2013). The CEO is Alan R. Mulally, Ford revenue is $134.3 billion (2012), their profit $ 5,665 billion (2012), and they have 164,000 (2011) employees (Ford, 2013). Toyota is the thirteenth largest automobile maker in the world by revenue it is founded in Japan. Toyota was the largest manufacturer in 2012 by production (Toyota, 2013). The CEO is Akio Toyoda, Toyota revenue is18.583 Trillion (2012), their profit 283.33 billion (2012), and they have 300,747 (2012) employees (Toyota, 2013). Comparison Tables Issues | Ford | Toyota | Legal, Social and Economic Environments | Socially Ford has the opportunity to expand due to the need for more vehicles in the international market. The labor laws are getting stricter for Ford which means less money for worker that can lead to strikes and legal problems (Ford, 2013) | Toyota Industries is determined to comply with the letter and spirit of the law, in and outside of Japan...
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...is 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...
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...Movie Analysis J501 Vishal Shirwadkar Movie – Flash of Genius Director – Marc Abraham Prephase: The movie “Flash of Genius” is based on a true story of Robert Kearns who invented the Intermittent Windshield Wiper. Robert Kearns tried to sell his Idea to Ford Motor Company but Ford rejected it but at the same time they started using that technology in their cars. Robert Kearns sued the Ford Motor Company for patent infringement in 1978 and the case was put to trial in 1990. Robert Kearns won the case against Ford and Chrysler. Detailed Analysis: I am going to look at this case from the two perspectives: Ford’s perspective and Robert Kearns’ perspective. 1970s was the time of automobile boom. The big three car manufacturers were thriving, with a very little or no competition from Japanese auto makers. The automobile industry was then in an evolution phase. New features were added to the cars to attract the consumers. As indicated in the movie, Ford was already trying to develop intermittent wipers, but Ford engineers were not able to come up with a working design. When the Ford Research and Development saw the intermittent wipers working, Ford should have realized that the Robert Kearns has the potential as an inventor and may help Ford with other inventions in the future. There are two strategic steps that Ford could have taken. 1. Assign the contract for the intermittent wiper units to Robert Kearns as originally intended by him. Ford always had the option to...
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...Memo To: Alan Mulally From: Travis Harper Date: March 6, 2012 Re: SWOT and Value Chain Analysis The purpose of this memo is offer the Ford management team advice and recommendations based on an internal and external analysis of the Ford Motor Company. A SWOT analysis will be conducted and the memo will outline and explain the processes involved with the analysis. A SWOT analysis will provide the decision makers of the company with information about the positive and negative aspects of both the external and internal environments currently facing Ford. The internal analysis will provide better insight into the strength and weaknesses of the company, and the external analysis will recognize opportunity and threats presented by the external environment. In addition to the SWOT analysis, the memo will provide an analysis of the primary and support activities that make up Ford's Value Chain, which is a systematic way of examining how these activities create customer value. External Analysis The external analysis was conducted by scanning and evaluating Ford's external environment. It is important that both the general and specific sectors of the Ford's external environment are scanned in order to identify the opportunities, which are positive trends, and threats, which are negative trends, facing the company. When analyzing the general environment of Ford, the economic sector should be a major focus for the company. A major aspect of Ford's decline has been due to poor economic...
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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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...Business Analysis I, II & III Stephanie Upchurch MGT/521 June 11, 2011 Anthony Manzanetti Business Analysis I, II & III Part I of the business analysis will review the outcomes of the SWOT analysis conducted for Ford Motor Company. The SWOT analysis will look at the strengths, weaknesses, opportunity, and the threats that Ford Motor faces. Next, part II of the business analysis will review Fords income statement, balance sheet and cash flow to determine the financial health of the company. Last, part III of the business analysis will review the strategic initiatives of Ford Motor Company relating to the organizational and operational adaptations to the changing automobile market. SWOT Analysis The reduced availability of fuel and the economic distress of Ford suppliers place the company in potential risk. The world has experienced great woes in regard to fuel availability. Events beyond car manufactures control have caused consumers to take a second look at the way they purchase automobiles. As gas prices increase consumers seek price effective ways to travel and transport goods. SUV’s, V-8 engine cars and other gas guzzling vehicles abate consumer purchases. Ford must combat the potential risk of consumer purchase decline by producing fuel efficient vehicles while making up profit losses in the slump of sales in major Ford models such as the Expedition, Explore and the F-150, super Duty and Ranger. The following will review the outcomes of the SWOT...
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...Business Analysis Part III MGT 521 June 18, 2012 Business Analysis Part III The focus of this paper will be to review recent economic trends and how these trends have and influencing the company. How strategic initiatives taken by Ford pertain to both operational and organizational revisions, as well as, tactics that have been or could be implemented by the Ford to reach their strategic goals. Conversely, a review of the role human resource management plays in aiding the company in the achievement of its business goals, concluding with a review of the salient points. Economic Trends and Strategies In 2009, Ford’s sales and revenues (in millions) were at $103,868 for automotive sales and $12,415 for financial service, for a total of $116,283. However, global economic trends influencing the Ford Motor company for 2010 did show increased sales and revenues by $12.671 (OneFord - Ford Motor Company, 2010). Nevertheless, in the most recent annual report from 2011, it has been shown that while the total returns to shareholders for the 2010 fiscal year were slightly higher than those in 2011, Ford has continued to show an increase in total company sales and revenues, in the automotive sector, sales were also up by $8,888. That being said, the year-end sector balance sheet data shows Fords 2011 total assets at being $179.248 (Ford Motor Company, 2011). Decline in sales from previous years was in part due declining product sales...
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...The Way of Ford Motor Company * Introduction * Although to be the only one remaining member which have escaped bankruptcy of the Big Three among the automobile industry by June 2009, Ford suffers $14.7 million loss of revenue and elimination of stockholders’ equity due to the record-breaking fall in demand for 2008,US. However, to understand Ford’s position today requires understanding the American automotive industry. * General Industry analysis * From 1900-2008, US motor vehicle production has a rapid increase to9, 000,000 from 1900 to 1967, after not, there is a graduate decrease to 3,000,000 until 2008. At the mean time, the median age of passenger car in US was Spiral upwards. Combine the two phenomenon, we can get that the automobile industry market is quite saturated and the demand fell down. Regard to the automobile manufacturing technology, despite less differentiation between manufacturers due to the converge of technologies and design, the technological progress was incremental and lead to the various segmentations in each country. Follow the two situations, there are 3 big issues were emerged. One was the deep demand of auto cars result in excess capacity. Another one issues was the high cost among the technological development. Last one issue was the lacking differentiation. However, it also offers automakers new product segmentations and market. For an insightful analysis, we need to look at more information in details. * Porter’s Five Forces...
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...| Success Story of Ford Motor Company | MO Project Report | | | | | 1. INTRODUCTION 2. ENVIRONMENTAL ANALYSIS 3. COMPETITIVE ADVANTAGE 4. NEW STRATEGY 5. EMPLOYEE COMMUNICATION 6. ROBUST ORGANIZATION CULTURE OF FORD 7. THE ROAD AHEAD 8. CONCLUSION 9. REFERENCES 10. APPENDICES 1. INTRODUCTION Ford Motor Company, established in 1903, is a multinational automaker based out of Detroit, US. This century-old organization had to face a great turmoil in terms of the economic recession that hit the US market hard in 2008-09. This project examines the nature of the environmental change, the strategy adopted by the senior leadership team to overcome the crisis, the communication process that took place to institutionalise the new strategy amongst the employees and ultimately, make it a part of the corporate culture. 2. ENVIRONMENTAL ANALYSIS: The task environment of the company includes suppliers of raw-material for manufacturing automobiles, its customers, competitors in the industry and its partners, with which it directly interacts. The macro-environment of the organisation includes the factors that are common to all the firms in the industry as depicted in Exhibit[1]. The 2008 economic recession was a change in the macro-environment and it hit all the big three players viz. GM, Chrysler and Ford. The already struggling auto industry had an abysmal year that the sales of cars and light-trucks in the US dropped...
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