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Overview

Company Overview
Fords brief history Mission and Vision statement Current Objectives & Strategies

Strategy Formulation

New Mission and Vision External Assessment


Industry Analysis Opportunities & Threats EFE Matrix

Strategic Plan for the Future


Implementation
Objectives Strategies EPS/EBIT Other issues

SWOT Matrix BCG Space Matrix IE Matrix Grand Strategy Matrix QSPM Matrix

Internal Assessment
Strengths & Weaknesses Financial ratios IFE Matrix

Evaluation

Ford 2008 Update

About the Company


Manufactures and distributes automobiles on six continents, strong presence in all 50 states. Employs approximately 224,000 people and operates 90 plants worldwide. Brands include Ford, Lincoln, Mercury, Volvo, Mazda and Ford Motor Credit Company (financial service).

Fords Brief History


1903 Ford Motor Company founded in Michigan 1908 Model T introduced 1913 first moving automobile assembly line in the world 1956 Fords stocks go on sale (10.2 million shares sold the first day) 1987 beginning of the acquisitions of other brands 1988 Ford Motor Company reached the peek

Management
William Clay Ford, Jr. Executive Chairman

Alan Mulally President and CEO

Donat R. Leclair Executive V.P. and CFO

Lewis Booth Executive V.P. Ford of Europe/PAG

Mark Fields Executive V.P. and President, The Americas Mark Schulz Executive V.P.

Mission & Vision Statement


"To become the world's leading consumer company for automotive products and services. - Ford doesnt have vision statement

Objectives
To contribute to stabilizing the climate by considering reducing long-term emission To promote the development of an infrastructure that will expand the use of biofuels and help reduce our dependence on oil To cut the usage of global energy by 27% and the usage of water by 25%

Strategies
Utilizing their advance technology Building of smaller vehicle Cost reduction Market expansion through joint venture and strategic alliance

New Mission & Vision Statement


- Both mission and vision are one statement

Our vision is to become the world's leading consumer manufacturing company for automotive products and services. To achieve this, we the company and all our employees are dedicated to provide all our customers and the community with safe innovative products and services of world class standards. Through our engineering excellence, high quality and the use of our constantly upgrading technology we limit the harm that we cause to the environment while delivering superior value to our customers. Our close knit working environment allows our employees, community and business partner to share in our success, while achieving a substantial return on our shareholders investment.

External Assessment

Industry Analysis
Global Automobile Industry Value Global Automobile Industry Volume

Industry Segmentation

Industry Segmentation

Industry Market Share

Industry Forecast

Opportunities & Threats


Opportunities Consumers demand hybrid and fuel efficient vehicles Increase in consumer spending trends Consumers demand more innovative vehicles Global expansion Industry experiences slow and steady growth Threats Weak USD Increase in steel and resin pricing Increasing gasoline prices Stricter CO2 emission standards Increasing mortgage rates

Internal Assessment

Stock performance

Financial Highlights
Income Statement Balance Sheet Cash Flow Statement

Ratios
Ratio Debt-to Total assets Debt-to Equity Long-term debt-to Equity Time-interest-earned Net Profit Margin Gross Profit Margin Operating profit Margin Compass Group PLC Industry Ratio Return on Total Assets Return on Equity EPS P/E Sales (growth) Net Income (growth) EPS (growth) Compass Group PLC -0.01 -0.48 -1.24 -5.98 7.74 463 1101 Industry 1.38 5.19 14.53 -7.24 1.75 14.91

0.60 29.94 29.94 -2.64 -0.02 0.11 0.11

47.47 110.45 0.01 1.75 15.3 2.99

Dividends (growth)

-100

Strengths & Weaknesses


Strengths
Strong and globally positioned brand names Large employee base with highly educated engineers and good R&D department One of the largest automotive manufacturer (along with a long history) 1285% increase in net cash Huge increase in total equity

Weaknesses
A lot of time spent to actually put the product on the market Recording continuous losses (net income) from 2006 Low quality of new products (recalls causing losing customers) Lack of management of the company EPS very bad in negative numbers (unattractive for the investors)

Strategic Formulation

SWOT Matrix
1. 2. 3. Strengths S Strong globally positioned brand names Large employee base with highly educated engineers and good R&D department One of the largest automotive manufacturer (along with a long history) 1285% increase in net cash Huge increase in total equity SO Developing new vehicles on alternative fuels ( Offer new innovative products increase market share - motorbikes Concentrate on making the best fuel efficient cars 1. 2. 3. 4. 5. Weaknesses W A lot of time spent to actually put the product on the market Recording continuous losses (net income) from 2006 Low quality of new products (recalls causing losing customers) Lack of management of the company EPS very bad - in negative numbers (unattractive for the investors)

4. 5. Opportunities O Consumers demand hybrid and fuel efficient vehicles Increase in consumer spending trends Consumers demand more innovative vehicles Global expansion Industry experiences slow and steady growth Threats T Weak USD Increase in steel and resin pricing Increasing gasoline prices Stricter CO2 emission standards Increasing mortgage rates

1.

1.

1.

WO Relocate the production to cheaper country with lower

2. 3.
4. 5.

2.
3.

1. 2. 3. 4. 5.

1. 2.

ST Build eco-friendly products from alternative materials Produce more cars for foreign market

1. 2.

WT Merge with competitors Manufacture only parts for automobiles

Ford SWOT analysis 2013


Strengths 1.Strong position in US market 2.ECOnetic initiative 3.Sound financial performance 4.One Ford approach 5.Significant growth in China Weaknesses 1.Poor environmental record 2.High cost structure 3.Unprofitable Europe operations

Opportunities 1.Positive attitude towards green vehicles 2.Increasing fuel prices 3.New emission standards 4.Growth through acquisitions

Threats 1.Decreasing fuel prices 2.Rising raw material prices 3.Intense competition 4.Fluctuating exchange rates

Value Chain Model

Possible Strategies
Developing new vehicles on alternative fuels Offer new innovative products increase market share Concentrate on making the best fuel efficient cars

Strategic Plan for the Future

Objectives for the future


Reduce manufacturing expenses by 15-20% Introduce new small fuel efficient vehicles Enter Latin American and Asian market with hybrid vehicles Develop affordable electric car for US market Increase market share Build up strong financials (increase net income and EPS by 15%)

Fords Changing Geographic Mix of Volume

Fords Changing Product Segmentation

Recommendation
Manufacturing of new small fuel-efficient vehicle Entering the Latin American and Asian market with hybrids Implementation of electric car in the US market

Implementation

Other Issues
Laws and regulations in foreign countries Regain lost trust in the Fords brand

Sources
Ford Motor Company Annual Report General Motors Annual Report http://www.ford.com/about-ford/investorrelations Datamonitor
Global Automobile Industry manufacturer

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