1. Ford Motor Company
Presented By – Boris Rendon

2. 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.

3. 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.

4. 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

5. 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 world's most ethical
companies by Ethisphere.

6. 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

7. 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

8. Organizational structure
CEO
CHAIRMAN
Chief financial
officer
Chief operating
officer
Chief technical
officer
Executive vice
presidents
Group vice
presidents
 Very complex structure fairly mechanistic in nature.
 Rigid departmentalization
 Low span of control
 High Centralization

9. STRENGTHS
US market position
Financial performance
ECOnetic approach
ONE FORD approach
Growth in China
WEAKNESSES
High cost structure
Unprofitable Europe operation
Low exposure to Asia Pacific
OPPORTUNITIES
Green Vehicles
Increasing fuel prices
New emission standards
Strategic partnerships
THREATS
Decreasing fuel prices
Rising raw material prices
Intense Competition
Fluctuating exchange rates
SWOT
ANALYSIS

10. SUGGESTIONS BASED ON SWOT
 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