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Strategic Audit for Ford

Motor Company
As per Ford Business report 2011

Prepared by:
Nermin Abou el Naga
Kholoud Maher
Ahmed Hamdy
Amr Gamal
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Table of Contents
I. History ............................................................................................................................... 3
II. Current Situation ............................................................................................................... 3
A. Current Performance ..................................................................................................... 3
B. Strategic Postures .......................................................................................................... 4
1. Mission ...................................................................................................................... 4
2. Objectives .................................................................................................................. 4
3. Strategies ................................................................................................................... 4
III. External Environment .................................................................................................... 5
A. Societal Environment .................................................................................................... 5
1. Economic ................................................................................................................... 5
2. Technological ............................................................................................................. 5
3. Sociocultural .............................................................................................................. 5
B. Task Environment .......................................................................................................... 5
IV. Internal Environment .................................................................................................... 6
A. Corporate Structure ...................................................................................................... 6
B. Corporate Resources ..................................................................................................... 6
1. Marketing .................................................................................................................. 6
2. Finance ...................................................................................................................... 6
3. R&D ............................................................................................................................ 6
4. Operations ................................................................................................................. 6
5. Human Resources ...................................................................................................... 6
V. Analysis of Strategic Factors .............................................................................................. 7
A. Strengths ....................................................................................................................... 7
B. Weaknesses ................................................................................................................... 7
C. Opportunities ................................................................................................................ 7
D. Threats ........................................................................................................................... 7
VI. Strategic Priorities ......................................................................................................... 7
Weighting, AS & TAS scores reflected the priorities of the three main strategies: .............. 7
VII. Implementation ............................................................................................................. 8
VIII. Evaluation & Control ..................................................................................................... 8
References ................................................................................................................................. 9
Appendix .................................................................................................................................. 10
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I. History
Ford Motor Company was founded in 1903 by Henry Ford and has continuously remained
under family ownership since this time. Ford has operated internationally since 1904, when
it opened a branch in Canada to gain access to Commonwealth markets. For the first half of
the 21
st
Century, Ford remained the dominant car manufacturer within the market it had
effectively created.
In 1956, Toyota exported its first automobile to the United States, and began acquiring
market share. In hindsight this was a turning point in the U.S. market, and as the 21st
Century drew to a close Ford faced declining market share and had difficulty remaining
competitive in the global marketplace.
In 2006, Alan Mulally was hired as CEO and took over a company at the precipice of failure.
Mulally announced a new restructuring plan in 2006 entitled The Way Forward, designed to
better align capacity to demand. At its core, this plan involved the closure of seven
assembly plants and strategic reorientation towards One Ford. Championed by Mulally, this
strategy focuses on creating a standard Ford personality which is seen and felt within every
automobile produced by the company.
II. Current Situation
A. Current Performance
With substantially strong financial position, Ford sold approximately 5,695,000 vehicles at
wholesale throughout the world in 2011. The worldwide automotive industry continues to
face a very competitive pricing environment, driven in part by industry excess capacity,
particularly in mature markets such as North America and Europe, along with the significant
effect of the economic conditions. For the past several decades, manufacturers typically
have given price discounts and other marketing incentives to maintain market share and
production levels.
Although Fords revenues was increasing year after year, it still faces a furious competition
on both divisions (automotive & financial services), lots & lots of threats coming mainly from
the global economic conditions & some internal weaknesses that it should tackle to keep on
the good performance

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B. Strategic Postures
1. Mission
Developed in 2006, stating the following;













2. Objectives
To aggressively restructure our business to operate profitably, accelerate
development of new products customers want and value, finance our plan and
strengthen our balance sheet, and work together effectively as one team leveraging
our global assets
3. Strategies
Penetrating markets to serve the key geographic markets with a complete family of
small, medium, and large, cars, utilities, and trucks that have best-in-class design
and quality.
Developing products customers want and value for Ford and Lincoln demands
consistent focus on the four pillars of our global product strategy
Cutting Costs as much as Ford can, & divert revenues toward internal developments
Related Diversification through Ford Motor Credit Company LLC ("Ford Credit")
offering a wide variety of automotive financing products to and through automotive
dealers throughout the world.
ONE TEAM;
People working together as a lean, global enterprise for automotive leadership, as measured
by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community
Satisfaction
ONE PLAN
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
OUR GOAL
An exciting viable Ford delivering profitable growth for all.


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III. External Environment
A. Societal Environment
1. Economic
The global economy grew by about 4% during 2010, as the economy began to
emerge from deep recession. During 2011, global economic growth slowed to an
estimated 3%, as the worsening debt crisis in Europe. The Economy expected to
have a growth of 4% in 2012 (O)
Uncertainties associated with the European debt crisis and policy responses to it
could keep Europe Economy stagnant in 2012 (T)
Fluctuations in Exchange rates & Interest rates. These risks affect our Automotive
and Financial Services sectors. (T)
Increase in Fuel Prices, continued price volatility, or reduced availability of fuel,
particularly in the United States, could result in further weakening of demand for
relatively more-profitable large cars, utilities, and trucks, while increasing demand
for relatively less-profitable small vehicles. (T)
Higher unemployment rates (T)
2. Technological
Energy Price Increases (oil prices increased from an average of $80 per barrel in
2010 to about $100 a barrel in late 2011), leading to a trend from consumers
towards buying energy-saving cars (O)
3. Sociocultural
Expectation of increased demand for smaller vehicles will continue in the mature
markets of North America and Europe (O)

B. Task Environment
Rivalry is high in both the Automotive & Finance BU
o Many banks are competing in offering car loans. No single company is a
dominant force in the automotive finance industry. Most of Ford Credit's
bank competitors in the United States use credit aggregation systems that
permit dealers to send, through standardized systems, retail credit
applications to multiple finance sources to evaluate financing options
offered by these finance sources. (T)
Power of Supplier is High
o High power of supplier, since they are imposing pressures to receive their
money quickly (T)
o Due to the global economic condition, Raw materials cost are fluctuating
(T)
Consumer power is high as well
o Many Suppliers (T)
o Excess capacity, coupled with a proliferation of new products being
introduced in key segments, will keep pressure from consumers on
manufacturers' ability to decrease prices (T)
Threat of Substitute is low (O)
Entry Barriers are high. Since the global economic conditions are not engorging for
such huge investment (O)
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IV. Internal Environment
A. Corporate Structure
Ford Motor Credit offers a wide variety of automotive financing products to and
through automotive dealers throughout the world. The predominant share of Ford
Credits business consists of financing our vehicles and supporting our dealers. (S)

B. Corporate Resources
1. Marketing
Strong Brand Equity perceived as affordable brand catering to a variety of consumer
needs and wants. (S)
Discovery of defects resulting in delays of new launches, reputational
damage...etc, as a result government investigation is increasing (W)
2. Finance
Fords revenue is increasing by 6% compared to 2010. (S)
High liquidity ratio compared to industry (S)
Receivables turnover is faster than that of industry average (S)
The gross profit margin is increasing from 2009 (S)
Shareholders might not be satisfied, although the EPS is increasing it is still below
the industry average by far (W)
Healthcare & life insurance liabilities affecting the liquidity position (W)
Higher-than-expected credit losses; mainly because of economic factors including
unemployment, consumer debt service burden, personal income growth, dealer
profitability, and used car prices (W)
3. R&D
Ford received a huge loan from USA government to produce fuel-efficient model &
electric cars (S)
4. Operations
Single-source supplies all components & materials, where Many components used
in Fords vehicles are available only from a single supplier and cannot be re-sourced
quickly or inexpensively to another supplier (W)
Growth in Sales of North America (by 10%), & South America (by 8%) compared to
2010 (S)
Sales in Europe, Asia & Pacific are stagnant compared to 2010 (W)
Ford market share is growing slowly (W)
5. Human Resources
Ford stoppages at limiting production due to labour disputes, as a result of disputes
under existing collective bargaining agreements with labour unions or in connection
with negotiation of new collective bargaining agreements, or as a result of supplier
financial distress or other production constraints or difficulties, or for other reasons.
(W)
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V. Analysis of Strategic Factors
A. Strengths
Automotive financing products through Ford Motor Credit
Growth in Sales of North & South America
Revenues are increasing
High liquidity ratio
Receivables turnover is faster
The gross profit margin is increasing
Loan form USA Government to help in R&D
B. Weaknesses
Sales in Europe, Asia & Pacific are stagnant
Slowly growth of Market share
Labour disputes
Single-source supplies all components & materials
Discovery of defects resulting in delays of new launches & reputational damage
Higher-than-expected credit losses
C. Opportunities
The Economy expected to have a growth of 4% in 2012
Increased demand for smaller vehicles
Trend from consumers towards buying energy-saving cars
D. Threats
Europe Economy is stagnant
Raw materials cost are fluctuating
Pressure from consumers to decrease prices
Fluctuations in Exchange rates & Interest rates
Increase in Fuel Prices
Supplier are imposing pressures to receive their money quickly
Many banks is competing in offering car loans
Higher unemployment rates
VI. Strategic Priorities
After finalizing the 5 matching tools & taking the common strategies among all tools, which
are: (Intensive) Product Development, Market Penetration & (Integration) Backward
Integration respectively
Weighting, AS & TAS scores reflected the priorities of the three main
strategies:
1. Priority 1: Product Development (TAS: 5.65) which mainly utilizes the trend
towards fuel efficient cars, USA loan to intensify the R&D, global pricing pressures
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from consumers & high fuel prices along with utilizing the additional liquidity
position that Ford reached to.
2. Priority 2 (Contingency Plan): Market Penetration (TAS: 4.85) which mainly utilizes
the global economic growth rate of 4%, extra promotions & advertisements to the
existing customers base & providing customers & dealers credit incentives to adapt
to the new global saving trends
3. Priority 3: Backward Integration (TAS: 3.45) through utilizing the extra cash & good
liquidity position & overcome the threats of fluctuating raw materials & high power
of suppliers to open its own raw material factory to supply its own operations &
avoid the above threats
VII. Implementation Tips
Establish a mission committee (Product Development Team), including one member
from each department, in order to enhance the strategy communication, aligned on
one vision, mission and objective and will come up with an efficient and effectives
product development.
o This committee should be responsible on building a detailed plan, where
objectives will be subdivided into tasks then steps.
o This will facilitate evaluation & control of Strategy implementation
Understanding the new forces of the new economic situation (energy saving , low
price, fuel efficient,...) dimension should be taken into consideration during the
product development phases
Expertise of each function should be recruited if needed
VIII. Evaluation & Control Tips
Balanced Score Cards (BSC) management tool should be designed and implemented through
Management Information System for each and any function or task during strategy
implementation phases, which will follow, control, evaluate and correct the implementation
in order to meet the desired objectives



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References
Ford Motor Company Annual Report, December11

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Appendix
Exhibit 1; EFE & IFE for Ford Motor Company

External Factors Weight Rating
Weighted
Score
O 1
The Economy expected to have a growth of
4% in 2012
10% 1 0.1
O 2 increased demand for smaller vehicles 10% 1 0.1
O 3
trend from consumers towards buying
energy-saving cars
10% 1 0.1
T1 Europe Economy is stagnant 5% 2 0.1
T2 Raw materials cost are fluctuating 10% 1 0.1
T3
Pressure from consumers to decrease
prices
15% 2 0.3
T4
Fluctuations in Exchange rates & Interest
rates
5% 1 0.05
T5 Increase in Fuel Prices 5% 1 0.05
T6
Supplier are imposing pressures to receive
their money quickly
10% 1 0.1
T7
Many banks is competing in offering car
loans
15% 3 0.45
T8 Higher unemployment rates 5% 3 0.15

Total Score 100%

1.6


Internal Factors Weight Rating
Weighted
Score
S1
Automotive financing products through
Ford Motor Credit
5% 4 0.2
S3 Growth in Sales of North & South America 10% 1 0.1
S4 Revenues are increasing 5% 1 0.05
S5 High liquidity ratio 5% 3 0.15
S6 Receivables turnover is faster 5% 1 0.05
S7 The gross profit margin is increasing 5% 3 0.15
S8 Loan form USA Government to help in R&D 15% 2 0.3
W1 Sales in Europe, Asia & Pacific are stagnant 5% 2 0.1
W3 Slowly growth of Market share 10% 3 0.3
W4 labour disputes 10% 2 0.2
W5
Single-source supplies all components &
materials
15% 1 0.15
W7
Discovery of defects resulting in delays of
new launches & reputational damage
5% 1 0.05
W8 Higher-than-expected credit losses 5% 3 0.15
Total Score 100% 1.95
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Exhibit 2; EFE & IFE for Ford Automotive

External Factors Weight Rating
Weighted
Score
O1
The Economy expected to have a growth of
4% in 2012
10% 1 0.1
O2 increased demand for smaller vehicles 10% 2 0.2
O3
trend from consumers towards buying
energy-saving cars
15% 3 0.45
T1
Decline in industry sales of US & Europe
due to impact of financial crisis
5% 3 0.15
T2 Raw materials cost are fluctuating 10% 1 0.1
T3
pressure from consumers to decrease
prices
15% 3 0.45
T4
Fluctuations in Exchange rates & Interest
rates
5% 1 0.05
T5 Increase in Fuel Prices 10% 1 0.1
T6
Supplier are imposing pressures to receive
their money quickly
10% 1 0.1
T8 Higher unemployment rates 10% 3 0.3

Total Score 100%

2


Internal Factors Weight Rating
Weighted
Score
S1
Strong Balanced Portfolio of fuel efficient
vehicles
15% 4 0.60
S2 Perception of Ford as an affordable Car 5% 2 0.10
S3 Growth in Sales of North & South America 10% 1 0.10
S4 Auto Revenues & sales increase 5% 2 0.10
S5 Total decrease of Ford Auto debt 5% 2 0.10
S6 Loan from USA Government to help in R&D 10% 2 0.20
W1 Sales in Europe, Asia & Pacific are stagnant 5% 2 0.10
W3 Slowly growth of Market share 10% 3 0.30
W4 labour disputes 10% 3 0.30
W5
Single-source supplies all components &
materials
15% 1 0.15
W7
Discovery of defects resulting in delays of
new launches & reputational damage
10% 1 0.10

Total Score 100%

2.15



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Exhibit 3; EFE & IFE for Ford Motor Credit

External Factors Weight Rating
Weighted
Score
O1
The Economy expected to have a growth of
4% in 2012
10% 1 0.1
O2 increased demand for smaller vehicles 10% 3 0.3
O3
trend from consumers towards buying
energy-saving cars
15% 3 0.45
T1
Decline in industry sales of US & Europe
due to impact of financial crisis
5% 3 0.15
T2 Raw materials cost are fluctuating 10% 1 0.1
T3
pressure from consumers to decrease
prices
10% 3 0.3
T4
Fluctuations in Exchange rates & Interest
rates
5% 3 0.15
T5 Increase in Fuel Prices 10% 4 0.4
T6
Supplier are imposing pressures to receive
their money quickly
5% 3 0.15
T8 Higher unemployment rates 10% 2 0.2

Total Score 100%

2.5


Internal Factors Weight Rating
Weighted
Score
S1
Variety of Automotive financing products
to customers & non-customer
15% 4 0.6
S2 Retail Financing Installements of used Cars 10% 3 0.3
S4 Offering credit incentives to car dealers 15% 3 0.45
S6
Global coverage through FCE worldwide
trade financing division
5% 2 0.1
S7
Regional Credit business centers in US &
Canada
5% 2 0.1
S8
FCE "Ford's Credit Largest Operation" in
Europe
10% 2 0.2
W3 Revenues decreasing 10% 2 0.2
W4 Debt is increasing 10% 2 0.2
W6
Inability of Ford credit to access debt at
competitive rates
15% 4 0.6
W8 Higher-than-expected credit losses 5% 3 0.15

Total Score 100%

2.9


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Exhibit 4; Ratio Analysis for Ford Motor Company
Ford Motor
Company
Industry
Average
Valuation Ratios
P/E Ratio (TTM) 2.4 11.5
Price to Book (MRQ) 2.29 1.28
Price to Tangible Book (MRQ) 2.3 1.67
Price to Cash Flow (TTM) 1.8 5
Price to Free Cash Flow (TTM) 11.7 -14.6
Dividends
Dividend Yield (%) 2 1.8
Payout Ratio (TTM) 2 9
Growth Rates (%)
Sales - 5 Yr Growth Rate (%) -4.7 -9.39
Capital Spending - 5 Yr Growth Rate (%) n.a. -16.38
Financial Strength
Quick Ratio (MRQ) 1.7 1.1
Current Ratio (MRQ) 1.8 1.4
LT Debt to Equity (MRQ) 4.23 0.95
Total Debt to Equity (MRQ) 5.03 1.42
Interest Coverage (TTM) 2.7 2.6
Profitability Ratios (%)
Gross Margin (TTM) 19.2 22
EBITD Margin (TTM) 10.3 11.5
Pre-Tax Margin (TTM) 5.2 2
Management Effectiveness (%)
Net Profit Margin (TTM) 0.13 0.03
Return on Assets (TTM) 9.8 2.1


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Exhibit 5; SWOT Matrix
Strengths Weaknesses
S1
Automotive financing products through Ford
Motor Credit
W1 Sales in Europe, Asia & Pacific are stagnant
S3 Growth in Sales of North & South America W3 Slowly growth of Market share
S4 Revenues are increasing W4 labour disputes
S5 High liquidity ratio W5 Single-source supplies all components & materials
S6 Receivables turnover is faster W7
Discovery of defects resulting in delays of new
launches & reputational damage
S7 The gross profit margin is increasing W8 Higher-than-expected credit losses
S8 Loan form USA Government to help in R&D
O
p
p
o
r
t
u
n
i
t
i
e
s

O1
The Economy expected to have a
growth of 4% in 2012
S1O1: Market Penetration: Utilizing the credit
facilities to grab the opportunity of growing
economy
S4 - S8: O2: Product Development: Utilizing the
good liquidity position & excess cash to grab
the opportunity of new smaller car trends
S4 - S8: O3: Product Development: Utilizing the
good liquidity position, excess cash & USA loan
to grab the opportunity of new energy saving
car trends
Opp1,W1: Market Penetration: Capitalizing on the
growing economy to increase the sales in Europe, Asia
& Pacific
Opp2,W3: Product Development: Grab the opportunity
of new smaller car trends to increase Ford's market
share
Opp3, W3: Product Development: Grab the
opportunity of new energy saving car trends to
increase Ford's market share
Solution: W7: Building up a ford service centre to
eliminate the delays & lift up the brand image or
reputation
O2 Increased demand for smaller vehicles
O3
trend from consumers towards buying
energy-saving cars
T
h
r
e
a
t
s
T1 Europe Economy is stagnant S1T1,T3, T8: Market Penetration: Capitalizing
on the existing credit facilities to face the price
pressures & global high unemployment to
facilitate customers lives
Solution W5T6: Widening the range of suppliers
(Recommended a supplier for each category)
W4:T8: Cutting cost through terminating employees
causing stoppages & hiring the unemployed ones with
T2 Raw materials cost are fluctuating
T3
pressure from consumers to decrease
prices
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T4
Fluctuations in Exchange rates &
Interest rates
S8T5: Product Development: Utilize the USA
loan to speed up the R&D of fuel efficient cars
to win the customers especially with the
increase in fuel prices
S4:S7,T2T6: Backward Integration: Utilizing the
extra cash & good liquidity position & overcome
the threats of fluctuating raw materials & high
power of suppliers to open its own raw material
factory to supply its own operations & avoid the
above threats
Solution: S1T7 through extensive ads &
promotions
lower cost
T5 Increase in Fuel Prices
T6
Supplier are imposing pressures to
receive their money quickly
T7
Many banks is competing in offering
car loans
T8 Higher unemployment rates

Exhibit 6; SPACE Matrix
Internal Dimension External Dimension
C
o
m
p
e
t
i
t
i
v
e

A
d
v
a
n
t
a
g
e

Slowly growth of Market share -4
I
n
d
u
s
t
r
y

P
o
s
i
t
i
o
n

The Economy expected to have a
growth of 4% in 2012
6
Sales in Europe, Asia & Pacific are
stagnant
-5 Europe Economy is stagnant 2
Growth in Sales of North & South
America
-2 Raw materials cost are fluctuating 1
Single-source supplies all components
& materials
-6
Fluctuations in Exchange rates &
Interest rates
3
Automotive financing products through
Ford Motor Credit
-1 Increase in Fuel Prices 2
Ford received a huge loan from USA
government to produce fuel-efficient
model & electric cars
-2
labour disputes -5
Discovery of defects resulting in delays
of new launches & reputational damage
-6
Total Competitive Advantage Weight -3.88 Total Industry Position Weight 2.8
F
i
n
a
n
c
i
a
l

S
t
r
e
n
g
t
h

Revenues are increasing 5
S
t
a
b
i
l
i
t
y

P
o
s
i
t
i
o
n

pressure from consumers to decrease
prices
-5
High liquidity ratio 6
increased demand for smaller
vehicles
-2
Receivables turnover is faster 4
trend from consumers towards
buying energy-saving cars
-1
The gross profit margin is increasing 6
Supplier are imposing pressures to
receive their money quickly
-2
Higher-than-expected credit losses 2
Many banks is competing in offering
car loans
-1
Higher unemployment rates -4
Total Financial Strength Weight 4.6 Total Stability Position Weight -2.5









(0.725, 0.3)
((
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Exhibit 7; BCG Matrix
The BCG matrix is applied for the two business units of Ford: Ford Automotive business &
Ford Motor Credit business.
M
a
r
k
e
t

G
r
o
w
t
h

R
a
t
e


(
C
a
s
h

C
o
n
s
u
m
p
t
i
o
n
)

Relative Market Share (Cash Generation)
High Low
High Stars
(Ford Automotive Business)
Question Mark
(Ford Credit Business)
Low Cash Cows Dogs

Ford Automotive Business:
Ford Automotive as one of the market leaders in the automotive business - generating over
67 million in sales volume in 2011, consuming a huge deal of cash in a quickly growing
market with new customer trends & needs such as smaller, fuel-saving & environment
friendly cars in an intense competitive market has been placed as a Star in Fords business
portfolio.
A Star that is utilizing integration (backward integration), intensive (Market Penetration &
Product Development) and Related Diversification and heading directly to a cash cow that
generates a huge amount of cash but consumes a low amount of cash.
Ford Motor Credit Business:
Ford motor credit is considered a Question Mark that is losing market shares, generating low
cash flow vs. its competitors in a quickly growing market that is consuming lots of cash & is
characterized by price pressures from customers, high unemployment rate, intense
competition coming from banks to car loans, increase in fuel prices, etc
Thus; as part of Fords efforts to shift their motor credit business into a star, Market
Penetration strategy is being conducted to capitalize on Fords strength, capitalize on the
expected economy growth opportunity & overcome the threats price pressures, intense
competition, the stagnation of the European market of which Ford Motor credit already
exists in.
As a result of this strategy, Ford Motor credit is expected to have a higher relative market
share compared to other competitors in the same quickly growing market.
Theoretically, BCG tool in portfolio analysis has some serious limitations such as the
assumed relationship between high market share & cash generation. Thus; IE Matching tool
is utilized to overcome these limitations in a more accurate portfolio analysis.

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Exhibit 8; Internal External Matrix

IFE TWS
Strong (3.3.99) Average (2.2.99) Weak (1.1.99)
E
F
E

T
W
S

Strong (3.3.99)
Average
(2.2.99)

(Motor Credit
Business)
(Automotive
Business)

Weak (1.1.99)

Ford automotive business & Motor Credit business are both candidates for Hold & Upgrade
Bundle 2, stabilize on 5 utilizing Integration (Backward Integration) & Intensive (Market
Penetration & Product Development) Strategies.

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Exhibit 9; QSPM Matrix
# Key Strategic Factors Weight
Strategic Alternative
Market
Penetration
Product
Development
Backward
Integration
AS TAS AS TAS AS TAS

Strengths

S1
Automotive financing products through
Ford Motor Credit
5% 4 0.20 3 0.15 1 0.05
S3 Growth in Sales of North & South America 10% 4 0.40 2 0.20 1 0.10
S4 Revenues are increasing 5% 3 0.15 4 0.20 2 0.10
S5 High liquidity ratio 5% 3 0.15 2 0.10 4 0.20
S6 Receivables turnover is faster 5% 3 0.15 2 0.10 1 0.05
S7 The gross profit margin is increasing 5% 2 0.10 3 0.15 4 0.20
S8
Loan from USA Government to help in
R&D
15% 2 0.30 4 0.60 1 0.15

Weaknesses

W1
Sales in Europe, Asia & Pacific are
stagnant
5% 4 0.20 3 0.15 1 0.05
W3 Slowly growth of Market share 10% 3 0.30 4 0.40 1 0.10
W4 labour disputes 10% - - - - - -
W5
Single-source supplies all components &
materials
15% 1 0.15 2 0.30 4 0.60
W7
Discovery of defects resulting in delays of
new launches & reputational damage
5% 2 0.10 3 0.15 1 0.05
W8 Higher-than-expected credit losses 5% 3 0.15 2 0.10 1 0.05

Opportunities

O1
The Economy expected to have a growth
of 4% in 2012
10% 4 0.40 3 0.30 2 0.20
O2 increased demand for smaller vehicles 10% 3 0.30 4 0.40 1 0.10
O3
trend from consumers towards buying
energy-saving cars
10% 3 0.30 4 0.40 1 0.10

Threats

T1 Europe Economy is stagnant 5% 4 0.20 3 0.15 1 0.05
T2 Raw materials cost are fluctuating 10% 1 0.10 3 0.30 4 0.40
T3
pressure from consumers to decrease
prices
15% 4 0.60 3 0.45 1 0.15
T4
Fluctuations in Exchange rates & Interest
rates
5% 2 0.10 1 0.05 3 0.15
T5 Increase in Fuel Prices 5% 2 0.10 4 0.20 1 0.05
T6
Supplier are imposing pressures to receive
their money quickly
10% 1 0.10 2 0.20 4 0.40
T7
Many banks is competing in offering car
loans
15% 2 0.30 4 0.60 1 0.15
T8 Higher unemployment rates 5% - - - - - -

QSPM

4.85 5.65 3.45