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Introduction American multinational automaker, founded by Henry Ford on June 16, 1903 with headquarters at Deaborn, Michigan Second largest automaker of US and fifth largest worldwide. Ranked 9th on the 2012 Fortune 500 list. Symbol of success for other motor companies in the world.
Products, Sales and Revenue Sells broad range of automobiles under different brand names. Strong growth in sales all over the world. 14 straight quarters of operating profit in 2012 Tough competition from other brands like GM and Chrysler.
Organizational Culture People Orientation - care for clients, stock holders and employees. Aggressiveness - employee involvement plan Team Orientation - importance of working together as one team to achieve automotive leadership Outcome Orientation - focus on quality Attention to detail Innovative and risk taking
Corporate social responsibility Participates in solving labour issues across supply chains round the world Factories themselves put out a carbon footprint Making electric automobiles and producing better MPG on their gasoline and diesel powered automobiles Rated among the top 25 companies in the world in CSR; earned best-in-class status for its environmental and social performance Recognized as one of the worlds most ethical companies by Ethisphere.
Corporate Strategies Growth strategy Concentration – Focus on quality over quantity Vertical integration - Consumer loans and credit to dealerships through Ford Motor Credit Company Horizontal integration Related Diversification – Joint Venture with Aston Martin Renewal strategy – Discontinuation of brands owing to financial debts. Stability strategy – Focus on production of fuel efficient vehicles
Competitive Strategies Bargaining power of Suppliers - Significant buying power over its parts suppliers. Bargaining power of buyers - Limited scope of bargaining in retail. Concession given by dealers are financed by Ford Motor Credit Company. Threat of new entrants - Barriers for new entrants in the field. Threat of substitutes - Public transport as an imperfect substitute. Current Rivalry - Five major competitors
Organizational structure Very complex structure fairly mechanistic in nature. CEO CHAIRMAN Chief financial Chief operating Chief technical Executive vice Group vice officer officer officer presidents presidents Rigid departmentalization Low span of control High Centralization
STRENGTHS US market position WEAKNESSES Financial performance High cost structure ECOnetic approach Unprofitable Europe operation ONE FORD approach Low exposure to Asia Pacific Growth in China SWOT ANALYSIS OPPORTUNITIES THREATS Green Vehicles Decreasing fuel prices Increasing fuel prices Rising raw material pricesNew emission standards Intense Competition Strategic partnerships Fluctuating exchange rates
SUGGESTIONS BASED ONSWOT Try to expand sales in the Middle East. Try to gain share in some major oil companies Take advantage of the growing needs of public transports. Reduce cost structure Risk sales in the US to cover the subsidy in third world countries, given the large size of potential customers Multiple raw material suppliers Production of cheaper motor vehicles in masses rather than the making of luxury cars Reduce the degree of centralization