Ford Motor Company is an American automaker headquartered in Dearborn, Michigan. It was founded in 1903 by Henry Ford and sells vehicles worldwide under the Ford and Lincoln brands. The report provides an overview of Ford's vision, management, organization structure, and SWOT analysis. It also summarizes Ford's presence in India since 1995 and its investments in manufacturing facilities.
1. A PROJECT REPORT
ON
“ Ford Motor ”
Submitted Under the Subject
ENTERPRISE ANALYSIS AND DESK RESEARCH
Submitted by
Name: Ganesh Shankarrao Pasnurwar
MBA (2016-18)
Div: E
Roll no: 27
Under the guidance of
Name: Dr. Manisha Paliwal
SINHGAD INSTITUE OF MANAGEMENT
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Sr. No. Name of the Chapter Page No .
1 Introduction 3
2 Vision and Mission 7
3 Management People 8
4
Organization structure 10
5 SWOT Analysis 11
6 Marketing Mix and STP 12
7 Competitors Analysis 15
8 Financial analysis 16
INDEX
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Introduction
The Ford Motor
The Ford Motor Company (commonly referred to simply as Ford) is
an American multinational automaker headquartered in Dearborn, Michigan, a
suburb of Detroit. It was founded by Henry Ford and incorporated on June 16,
1903. The company sells automobiles and commercial vehicles under
the Ford brand and most luxury cars under the Lincoln brand. Ford also owns
Brazilian SUV manufacturer, Troller, and Australian performance car
manufacturer FPV. In the past it has also produced tractors and automotive
components. Ford owns a 2.1% stake in Mazda of Japan, an 8% stake in Aston
Martin of the United Kingdom, and a 49% stake in Jiangling of China. It also has
a number of joint-ventures, one in China (Changan Ford Mazda), one in Taiwan
(Ford Lio Ho), one in Thailand (AutoAlliance Thailand), one in Turkey (Ford
Otosan), and one in Russia (Ford Sollers). It is listed on the New York Stock
Exchange and is controlled by the Ford family, although they have minority
ownership (but majority of the voting power).
Ford 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; by 1914 these
methods were known around the world as Fordism. Ford's former UK
subsidiaries Jaguar and Land Rover, acquired in 1989 and 2000 respectively,
were sold to Tata Motors in March 2008. Ford owned the Swedish
automaker Volvo from 1999 to 2010. In 2011, Ford discontinued the Mercury
brand, under which it had marketed entry-level luxury cars in the United States,
Canada, Mexico, and the Middle East since 1938.
Ford is the second-largest U.S.-based automaker (preceded by General
Motors) and the fifth-largest in the world based on 2010 vehicle sales. At the end
of 2010, Ford was the fifth largest automaker in Europe. Ford is the eighth-
ranked overall American-based company in the 2010 Fortune 500 list, based on
global revenues in 2009 of $118.3billion. In 2008, Ford produced 5.532 million
9 Corporate Social Responsibility 19
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automobiles and employed about 213,000 employees at around 90 plants and
facilities worldwide.
The company went public in 1956 but the Ford family, through special Class B
shares, still retain 40 percent voting rights.
Ford India
Ford India Private Limited is a wholly owned subsidiary of the Ford Motor
Company in India. Ford India Private Limited's headquarters are in Maraimalai
Nagar, Chennai, Tamil Nadu. It currently is the sixth largest car maker in India
after Maruti Suzuki, Hyundai, Tata, Mahindra.
Ford came in India in October 1995. Since its entry in India in 1995, Ford has
invested more than US$ 2 billion to expand its manufacturing facilities and sales
& service footprint to meet demand in one of the world's fastest-growing auto
markets. Ford India’s integrated manufacturing facility at Maraimalai Nagar,
near Chennai, produces its award-winning range of products including the Ford
Eco Sport and Ford Endeavour.
As part of its overall commitment, Ford inaugurated its US$ 1 billion state-of-the-
art integrated manufacturing facility in Sanand, Gujarat in March 2015. With
Sanand being operational, Ford India has doubled its annual installed
manufacturing capacity to 610,000 engines and 440,000 vehicles. The sub-four-
metre compact sedan, Ford Figo Aspire, became the first car to roll out from the
new Ford Sanand plant. The plant also manufactures new Figo hatchback.
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TimeLine
June 16, 1903: Henry Ford and 11 investors sign articles of incorporation for Ford
Motor Company in Michigan.
Oct. 1, 1908: Ford introduces the Model T, which became one of the most popular cars
in the world. Production officially ended in May 1927 after total world production of
15,458,781.
Oct. 7, 1913: The Highland Park plant in Michigan begins operations as the first
moving automobile assembly line in the world.
Jan. 5, 1914: Ford begins offering $5 per day for eight-hour work days and 15,000 job
seekers clamor for 3,000 jobs at the Model T Plant in Highland Park. The previous pay
rate was $2.34 per day for nine hours.
March 1, 1941: Ford begins to produce general-purpose "jeeps" for the U.S. military
and shifts completely to military production starting in Feb. 1942. Civilian production
does not resume until July 1945.
Jan. 17, 1956: Ford common stock goes on sale, with 10.2 million shares sold in the
first day, representing 22 percent of the company.
Sept. 7, 1987: Ford acquires 75 percent of Aston Martin Lagonda, Ltd.
Dec. 31, 1988: Ford's worldwide earnings were $5.3 billion, the highest of any auto
company to date.
Dec. 1, 1989: Ford spends $2.5 billion to buy Jaguar Cars.
March 15, 1990: Ford introduces the Explorer sport utility vehicle. Though the
Explorer is the nation's best-selling SUV model, sales hit a 15-year low in Nov. 2005 and
fell 29 percent for 2005.
July 1, 1992: Ford buys 50 percent of Mazda Motor Manufacturing and changes that
company's name to AutoAlliance International.
June 20, 1993: Ford opens its first dealerships in China. Its brand sales in China
increased 46 percent in 2005, though it still lags behind General Motors Corp. and
Germany's Volkwagen AG in China. By the end of 2005, the number of Ford dealers in
China totaled 150, up from 100 in 2004.
April 18, 1993: Ford begins production of the Flexible-Fuel Vehicle (FFV) Taurus.
FFVs can burn gasoline, ethanol or mixtures of the two. Despite the fact that there are
an estimated 5 million FFVs, there are only about 500 ethanol fuel stations in the
country. According to the law, if automakers produce FFVs, they can also produce more
of other cars that consume more gas.
Aug. 21, 1997: Ford sells the first taxicabs run on natural gas to New York City.
August 2000: Bridgestone/Firestone recalls 6.5 million tires after 271 rollover deaths
in Ford Explorers.
May 2001: Ford Motor unilaterally recalls 13 million more tires and
Bridgestone/Firestone dumps Ford as a customer, saying Ford was using the tire maker
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as a scapegoat to deflect attention from problems with the Ford Explorer. Federal
investigators ultimately concluded that tire defects were the main cause of the rollovers.
July 11, 2005: Ford's new gas-electric hybrid SUV, the Mercury Mariner, goes on sale.
It costs $4,000 more than the gas-only version and has the endorsement of the Sierra
Club.
Nov. 1, 2005: Bridgestone Firestone North American Tire LLC agrees to pay Ford
$240 million to help cover the costs of the tire recalls, which amounted to $2 billion.
Dec. 22, 2005: The United Auto Workers agrees to a deal with Ford in which 99 cents
an hour of any future wage increases will go towards a health-care fund. Insurance
deductibles will rise by as much as 33 percent, and the costs for current retirees will also
go up. The changes will save Ford about $650 million a year. (Ford's health-care bill for
2005 was $3.5 billion.)
Dec. 23, 2005: Ford announces it will transfer $2 billion to shore up Jaguar Cars,
which it bought in 1989 for almost $3 billion in today's prices.
2005: Ford loses market share for the 10th year in a row, and also loses its place as
America's best-selling brand to GM's Chevrolet. Ford sold around 2.9 million vehicles in
2005 for a 17.4 percent market share — down from a market share of 18.3 percent in
2004 and of 24 percent in 1990.
Jan. 23, 2006: Ford announces it will cut up to 30,000 jobs and idle 14 plants by the
year 2012.
2009: Ford Begins offering its turbocharged EcoBoost line of engines.
2011: Ford Discontinues the Mercury line to concentrate all its efforts on the ford and
Lincoln brands.
2014: The ford Mustang celebrates its 50th anniversary.
July 1, 2014: Mark Field Succeeds Alan Mulally as Ford’s president and CEO.
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Vision
“People Working Together As A Lean, Global Enterprise For Automotive
Leadership.”
Ford’s vision statement has the following major points:
1. Global leadership
2. Emphasis on stakeholders
3. Lean business
The global leadership point of the vision statement indicates that Ford Motor
Company wants to become the top player in the international automotive market.
Ford is currently the fifth biggest in the world, and the second largest U.S.-based
automobile manufacturer, behind General Motors. In this regard, Ford still has
more to work on to reach its vision statement’s point of global leadership. On the
other hand, the vision statement’s emphasis on stakeholders is achieved through
Ford’s enhanced HR policies, as well as corporate social responsibility strategies
for employees, customers, investors and others. Ford’s vision statement also
highlights lean business operations, which the company already achieved through
its assembly line methods. Thus, based on its current condition, Ford Motor
Company needs to work on growing its sales to achieve global leadership and
fulfill its vision statement.
Mission
“One Team. One Plan. One Goal.”
This mission statement is also known as the “One Ford” mission, which is part of
the “One Ford” plan that was unveiled in 2008 under CEO Alan Mulally’s
leadership. Ford explains that the expanded form of its mission statement is as
follows:
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
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our customers want and value; Finance our plan and improve our balance
sheet; Work together effectively as one team.”
One Goal: “An exciting viable Ford delivering profitable growth for all.”
Management People
1. William Clay Ford Jr.(Executive Chairman, Ford
Motor Company)
Executive Chairman of Ford Motor Company, William Clay Ford Jr. is
leading the company that put the world on wheels into the 21st century. He joined
the Board of Directors in 1988 and has been its chairman since January 1999.
Through the years his vision for the company has remained
unchanged. William Ford also served as the President CEO and
COO until turning over those roles to former Boeing executive
Alan Mulally in September 2006. Ford is also the Vice Chairman
of the Detroit Lions NFL franchise.
2. Mark Fields (President and CEO, Ford Motor
Company )
Mark Fields is an American businessman and has been the President and
Chief Executive Officer of Ford Motor Company since July 1, 2014. Fields served
as chief executive officer of Mazda from 1999 to 2002 during the period when
Ford controlled Mazda, and was the chief operating
officer for Ford Motor Company. Prior to that, as Ford's
President of the Americas, Fields developed "The Way
Forward" plan. He succeeded Alan Mulally as the company's
President and CEO.
3.Anurag Mehrotra (Executive Director of
Marketing, Sales & Service, Ford India)
Anurag Mehrotra is the executive director of Marketing, Sales & Service at
Ford India. Anurag leads the responsibility for all aspects of MS&S operations of
Ford India including revenue, sales volume, market share, marketing strategy &
launches as well as dealer development, after sales service and overall customer
satisfaction.
Anurag previously served as vice president, Sales at Ford India and was
responsible for looking after Ford’s growing sales network in India. Earlier, he
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also served as the vice president Marketing at the company and was instrumental
in designing and implementing successful marketing campaigns
for Ford’s product range in India.Before joining Ford India,
Anurag was vice president – Corporate Marketing at WNS
Global Services, a leading business process outsourcing
company, where he was responsible for lead generation and
brand building in North America and Europe.
4.Rahul Gautam (Vice President, Marketing, Ford
India)
Rahul Gautam was appointed Vice President, Marketing,
Ford India effective August 2015 and reports to Anurag Mehrotra, Executive
Director of Marketing, Sales and Service at Ford India. He is based out of the
Ford India office in Gurgaon. With Ford since 2003, Rahul has held several
responsibilities across product strategy, sales and marketing in India as well as
Asia Pacific region. With immense experience in conceptualising and executing
brand launch campaigns, Rahul has been involved in
development and launch of some of Ford’s most successful
nameplates i.e. Ford Figo, Ford EcoSport, Ford Aspire and Ford
Endeavour in India till date. Rahul has also served as B-Car
product marketing lead for Ford Asia Pacific, based in Shanghai
during 2010-2013 contributing towards development of Ford
Eco Sport and All-New Figo & Aspire.
5.George Elisseou (HR Director, Ford India)
George Elisseou is the HR Director, Ford India and is based in Chennai. With
Ford in India since April 2015, George is responsible for spearheading employee
initiatives spanning across talent acquisition, training and development, HR
technology deployment along with diversity and inclusion. In his previous
assignments, George was the Asia Pacific HR Director, Finance and Business
Strategy Group. George started his career with Ford in Australia gaining
experience across a variety of profiles in the field of Human Resource across Ford
Credit and other domains. In January 2010, he was appointed General Manager
Human Resources for Ford Thailand where he led the development,
establishment and launch of the new Ford Thailand Manufacturing Plant.
4.David Schock (Chief Financial Officer, Ford India)
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David Allan Schock, has been with the Ford Motor Company for more than
26 years. He joined the company as an audit analyst and has held numerous
position across geographies including North America, Europe and Asia Pacific.
Before being appointed as the Chief Financial Officer of Ford India, David
worked with Ford Asia Pacific operations as a product development controller,
overseeing resource allocation and investments on new products for markets
across the region.
Organization Structure
(Ford Motors)
ChairmanWilliam Ford
(Chairman)
Mark Fields
(CEO)
Anurag Mehrotra
(Executive Director of
Marketing, Sales &
Service)
Rahul Gautam
(Vice President
Marketing)
George Elisseou
(HR Director)
David Schock
(CFO)
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SWOT Analysis
Strength:
1. One of the early market entrants and oldest car manufacturer
2. Offers a wide range of cars to different set of customers.
3. Provides exclusive product features taking into consideration the targeted
segments
4. Invested efforts to go green in order to help the environment
5. Has over 160,000 employees globally
6. Present across continents and has excellent visibility & marketing
7. Ford is present in Motorsports like Formula One, Rally, Sports cars, Touring
cars & sponsorship of events
Weakness:
1. Adversely affected by the global recession & Euro crisis.
2. Hasn’t completely tapped emerging economies as compared to some other
automobile giants.
3. Low exposure to Asia Pacific.
4.Ford’s reputation as a staid, conservative brand, which makes it harder to
market to younger consumers.
Opportunity:
1. Expanding automobile sector
2. Improving business scenario due to expansion of consumer base
3.Capitalizing on the models exclusively designed for different markets e.g. ford
Ikon for India
Threats:
1.Competition from major international players
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2. Increasing usage of public transport and increased fuel costs
3. Production problems in local plants due to labor and similar issues
4. Lower fuel prices could limit demand for costlier alternative fuel vehicles such
as hybrids and electrics.
Market Mix
Products:
With its high technology and various manufacturing plants, the company has
given the world market some of its best vehicles. From its first car the “Model T”
in 1908, the company has come a long way with dealing in many cars like Ford
Fiesta, Ford Escape, Ford Focus and Ford Ranger. The Ford family also includes
wide range of vehicles like Volvo, Land Rover, Jaguar and the brand Ashton
Martin.
In India, in the year 1998, Ford introduced ‘Ford Escort Model’ and this car
was replaced later in 2001 with ‘Ford Icon’ that was built locally in an Indian
manufacturing plant. At least seven different models after that have been
introduced to the consumers to conquer the Indian market like Fusion, Mondeo,
Fiesta and Endeavour.
All the Ford products are localized and made with a concept to match the local
driving conditions emphasizing on durability and less maintenance costs. Special
attention has been given to maintain fuel efficiency and to see that the air
conditioning systems are operating with refrigerants that are environment
friendly and the ventilation system suits the Indian climate.
In order to satisfy the needs and demands of every type of consumer the
company has launched economy cars, luxury cars, sports cars, vans, station
wagons and trucks. Ford Fiesta, its latest gift to the world market is focusing on
females as well as the younger generation.
Price :
Ford is one of the largest automakers in the world and to reach this zenith
their pricing policy has played an important part. To make it as an extremely
profitable company it takes into account the costs incurred as well as the profit
margin. The pricing policy is also dependent on the rival company’s products that
are in competition with itself in the market.
Under its non-price, competition pricing policy it has taken sponsorship
contracts without changing the selling price of its various vehicles. The pricing
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policy is also dependent on analysis of the corporation at all levels like market
evaluation and their recent financial performance. The reasonable prices of the
products and its capacity of saving via low fuel consumption have also made it a
favorite with low-income group of consumers. The strategists establish the policy
of pricing by constantly evaluating the investment returns through sponsorship
deals.
Place:
Ford has the distinction of introducing to the world the concept of
manufacturing at a large scale with an industrialized work force. He had the
vision of combining factories that were highly up to date with efficient work force,
low prices and located at strategic places so that everything became a possibility.
Therefore, manufacturing plants have been set up in six of the seven continents
with worldwide factories and dealers. It has developed manufacturing plants in
countries like India so that the actual selling price of the vehicles does not shoot
up. Near Chennai, in Maramalai Nagar, the company has opened a
manufacturing plant in a 350-acre place with an initial investment of 1700 crores.
With a general capacity of turning out nearly 100,000 vehicles per annum, this
plant has been a hit with the manufacturer.
In order to avail the market of various Ford products many dealers have been
signed so that the consumers can buy the cars easily near their local place at their
own convenience. For the retail market, the dealership network has been made
strong and easily accessible. It is the showrooms where a future customer
becomes a loyal customer by first seeing the product, then handling it through
test drive and lastly by purchasing it. Each location of dealership are planned
with details and strategy as it is the place where the customer will come for
purchasing accessories, various parts and also lifelong servicing.
Promotions:
Ford has a very competitive marketing strategy with the aim of building long
lasting relationship with its previous and loyal customers as well as new potential
customers. It has linked itself with various sporting events to highlight its brand
name. In the past, it has been seen as a sponsor of UEFA Champions league and
this really soared its brand name and image high in the eyes of fans and
customers alike.They have successfully handled the promotional side of the
business with tactics to develop their brand image.
Promotions in the visual media like the internet and television have been a
huge success along with promotions in print media like magazines and
newspaper. The various vehicles have been exhibited at exhibitions, events and
malls.
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These cars are given as gifts to different personalities as promotional
strategies. Special Posters are commissioned to promote the games as well as the
Ford products so that the common people associate the games with the brand
and ultimately result in huge sales via the fans. During matches, the people
especially the children are encouraged to participate in various promotional
activities. The desire of the company has been to create a positive view and frame
of mind for the name “Ford” so that it continues to be the best in the automobile
industry.
STP:
Segment:
Complete automobile segment including SUVs, Hatchbacks, Sedans
Target Group:
Young executives, businessmen, small families
Positioning
Positioned as an automobile company which provides quality cars globally
Market Segment
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Competitive Analysis
Toyota, Honda, and Nissan have grown in market share largely as a result of their
ability to deliver better products at lower prices, particularly for more fuel
efficient smaller vehicles.
Toyota has High Quality, High Safety Ratings (NHTSA)-5 star ratings and
Streamlined operations with similar models globally And Hybrid models across
all segments
Ford has been more successful than both GM and Chrysler in reducing legacy
costs.
General Motors (GM) is Focusing on emerging markets and is researching
Alternative Fuels i.e, Chevy Equinox Fuel Cell and Plans to develop 12 hybrid
models
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Financial Analysis
Profit And Loss
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Domestic Sales
Corporate Social Responsibility
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Ford’s commitment to India is not just business centric. At the heart of the
company’s business plans are people and communities. With unwavering
commitment to the country and its people, Ford’s CSR initiatives are a reflection
of its ‘Go Further’ journey in India. Following activities are done by Ford motor
Focus on Education
Its commitment to lay foundations for a Better World, Ford India
announced the launch of its Happy School's' program in Chennai, in September
2014.As part of the Happy Schools program, Ford is partnering with reputed
NGOs working in the field of education to collectively conceptualize and design a
social intervention model that addresses the identified gaps in the areas of
academics, health, nutrition and infrastructure.
Focus on Water/ Sustainability
Ford India launched the first phase of its cohesive community outreach
initiative in Sanand, Gujarat to improve access to safe drinking water for children
from neighboring communities. In the first phase, 30 filters were installed in
anganwadis and primary schools, across 18 villages, reaching out to more than
1000 children. The installation of the water filters was combined with strong
community awareness initiatives, to ensure ownership at the local level and also
make the initiative sustainable. The anganwadis-staff and parents of the children
were also given information regarding issues related to child health, which ranges
from a balanced diet for children, immunization and vaccination schedules, and
the importance of health check-ups.
Driving Volunteerism
Ford’s volunteering program is an ongoing activity that extends throughout
the year, supported by the enthusiasm of the volunteers and the company’s
community leave policy. And the biggest volunteer effort comes each September
during the annual Global Week of Caring. In 2013, Ford employees came together
to mobilize relief for the victims of the Uttarakhand flood disaster. Besides
contributions from Ford and Ford employees, the donation in aid of the flood
victims, included contributions from Ford’s dealer-partners. Ford employees also
joined hands to collect much-needed relief materials, including clothes, shoes,
blankets and linen, in aid of those affected by cyclone Phailin.
References
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www.ford.com
www.india.ford.com
https://corporate.ford.com/innovation/innovation-
ideas
http://www.ford.com/cars/fiesta
http://www.at.ford.com/news
http://financials.morningstar.com/balance-
sheet/bs.html