This document is a report by Team 15 analyzing factors that influence demand for Ford vehicles in the US using multiple variable regression. It provides context on industry and company trends, describes the regression variables used in the analysis such as unemployment, consumer sentiment and gas prices, and lists the data sources. The report also outlines forecasts produced by the regression model and discusses implications for Ford, as well as emerging automotive technologies.
Ford is a major American automaker founded in 1903. It has faced many challenges in recent years including the 2008 financial crisis, rising fuel prices, and increased competition. The document outlines Ford's history, operations, strengths, weaknesses, opportunities, threats, and competitive analysis. It also discusses issues Ford faces such as excess capacity, inflexible work practices, and slow new product development. Recommendations are made to continue cost cutting measures and maintain discipline in production strategies to help Ford address its ongoing challenges.
This document provides an overview and analysis of Ford Motor Company. It discusses Ford's history of making affordable cars for everyone with models like the Model T. It also shows the evolution of Ford's logo over time. The document outlines Ford's entry into India in 1907 and receiving approval to form a joint venture in 1995. It provides financial performance data from 2008-2012 and current ratios. It also discusses Ford's plans for 2014, including launching new vehicles and creating 11,000 new jobs. In summary, the document analyzes Ford's past and present performance and outlines its strategy to strengthen its position in key markets going forward.
Ford Motor Company is the largest industrial company in US history. Henry Ford founded the company in 1903 and pioneered mass production techniques, including the moving assembly line. By 1924, Ford produced the 10 millionth Model T car. Currently, Ford faces competition from Toyota, GM, Honda, and others but has maintained a strong brand and market share in North America through innovation. Ford aims to deliver profitable growth through its "One Ford" strategy of having one team, plan, and goal.
The document analyzes Ford's financial performance and recommends not investing in Ford stock due to projected negative equity value and low cash flow. It discusses Ford's competitive landscape, brand positioning, and product plans which include investing in hybrid and electric vehicles. Strategic recommendations are made to improve productivity and change production facilities to focus more on small cars.
Presentation on ford motor company (pom)Harsh_BITS
Ford Motor Company is an American automaker founded in 1903 that sells a broad range of vehicles worldwide, with strong sales growth and profitability. It has a large organizational structure focused on quality, innovation, and teamwork. Ford aims to expand green vehicle offerings and partnerships while reducing costs and entering new markets to address threats from competition and fluctuating exchange rates.
Ford and GM A Comparison of 2 Fortune 500 CompaniesLeo de Sousa
This document compares Ford Motor Company and General Motors Corporation. It summarizes that through strategic decisions, Ford was able to survive the 2008 economic crisis without government assistance, while GM had to file for bankruptcy and be bailed out by the US and Canadian governments. The document then provides an abstract and introduction to each company, followed by chapters discussing their strategic planning, organizational structure, finances, social responsibility, and innovation approaches. It analyzes why Ford was successful in navigating the crisis while GM was not based on differences in these areas.
Ford Motor Company is a global automaker headquartered in Dearborn, Michigan. It manufactures and distributes vehicles worldwide and includes the Lincoln and Mazda brands. While once the largest US automaker, Ford is now the second largest and focuses on developing new electric vehicles and fuel efficient models to compete with Toyota and General Motors. A key goal is improving its balance sheet and working as one global team to deliver profitable growth.
Ford is a major American automaker founded in 1903. It has faced many challenges in recent years including the 2008 financial crisis, rising fuel prices, and increased competition. The document outlines Ford's history, operations, strengths, weaknesses, opportunities, threats, and competitive analysis. It also discusses issues Ford faces such as excess capacity, inflexible work practices, and slow new product development. Recommendations are made to continue cost cutting measures and maintain discipline in production strategies to help Ford address its ongoing challenges.
This document provides an overview and analysis of Ford Motor Company. It discusses Ford's history of making affordable cars for everyone with models like the Model T. It also shows the evolution of Ford's logo over time. The document outlines Ford's entry into India in 1907 and receiving approval to form a joint venture in 1995. It provides financial performance data from 2008-2012 and current ratios. It also discusses Ford's plans for 2014, including launching new vehicles and creating 11,000 new jobs. In summary, the document analyzes Ford's past and present performance and outlines its strategy to strengthen its position in key markets going forward.
Ford Motor Company is the largest industrial company in US history. Henry Ford founded the company in 1903 and pioneered mass production techniques, including the moving assembly line. By 1924, Ford produced the 10 millionth Model T car. Currently, Ford faces competition from Toyota, GM, Honda, and others but has maintained a strong brand and market share in North America through innovation. Ford aims to deliver profitable growth through its "One Ford" strategy of having one team, plan, and goal.
The document analyzes Ford's financial performance and recommends not investing in Ford stock due to projected negative equity value and low cash flow. It discusses Ford's competitive landscape, brand positioning, and product plans which include investing in hybrid and electric vehicles. Strategic recommendations are made to improve productivity and change production facilities to focus more on small cars.
Presentation on ford motor company (pom)Harsh_BITS
Ford Motor Company is an American automaker founded in 1903 that sells a broad range of vehicles worldwide, with strong sales growth and profitability. It has a large organizational structure focused on quality, innovation, and teamwork. Ford aims to expand green vehicle offerings and partnerships while reducing costs and entering new markets to address threats from competition and fluctuating exchange rates.
Ford and GM A Comparison of 2 Fortune 500 CompaniesLeo de Sousa
This document compares Ford Motor Company and General Motors Corporation. It summarizes that through strategic decisions, Ford was able to survive the 2008 economic crisis without government assistance, while GM had to file for bankruptcy and be bailed out by the US and Canadian governments. The document then provides an abstract and introduction to each company, followed by chapters discussing their strategic planning, organizational structure, finances, social responsibility, and innovation approaches. It analyzes why Ford was successful in navigating the crisis while GM was not based on differences in these areas.
Ford Motor Company is a global automaker headquartered in Dearborn, Michigan. It manufactures and distributes vehicles worldwide and includes the Lincoln and Mazda brands. While once the largest US automaker, Ford is now the second largest and focuses on developing new electric vehicles and fuel efficient models to compete with Toyota and General Motors. A key goal is improving its balance sheet and working as one global team to deliver profitable growth.
Ford Motor Company is the second largest automaker in the US behind General Motors. This report analyzes Ford's organizational structure, strategic position using various matrices, and recommends a 3-year strategic plan for the new CEO. The analyses show strengths in Ford's global market share and manufacturing expansion, but weaknesses in declining profits in recent years. The recommendations aim to improve profitability through restructuring plans.
Ford Motor Company faces strategic challenges in the current economic environment. Two of its major competitors, Chrysler and General Motors, may file for bankruptcy in the next 1-2 months. As the most financially stable American automaker currently, Ford has enough cash to continue operations through 2009 if market conditions do not significantly deteriorate further. The report makes 5 recommendations: 1) Continue selling the Volvo brand for funds and strategic goals. 2) Prepare extensively for competitor bankruptcies. 3) Continue supporting the 'One Ford' strategy and Fiesta model. 4) Shift more production to lower-cost regions. 5) Exploit growth opportunities in China while focusing on India long-term.
Ford Motor Company is an American automaker headquartered in Michigan. It produces and distributes vehicles worldwide under the Ford and Lincoln brands. In 2012, Ford reported $136.3 billion in revenue and delivered strong profits for the 14th consecutive quarter. Ford uses strategies like product diversification and vertical integration to compete in global automobile markets against major competitors like Toyota and GM. The company also focuses on corporate social responsibility and sustainability through initiatives to reduce emissions and support human rights.
Ford Motor Company is an American automaker headquartered in Dearborn, Michigan. It was founded in 1903 and trades on the New York Stock Exchange. The document outlines Ford's strengths such as its strong US market position and financial performance, weaknesses like its poor environmental record and unprofitable European operations, opportunities in green vehicles and growth markets, and threats from decreasing fuel prices and intense competition.
Ford Motors was once the second largest automobile manufacturer in the US, but it faced declining market share, high debt, and failed products in the late 1990s. New CEO Alan Mulally devised strategies to cut costs, pay down debt, refocus products, and improve communications. These efforts helped Ford pay off some debts and earn a profit again by 2010. However, it still faces competition from Toyota, General Motors, and other automakers.
Ford Motors is working to address falling car sales and increased competition. It has cut 40,000 jobs in recent years and closed several plants in North America. Ford is focusing on developing more fuel-efficient vehicles and expanding into growth markets like China, India, and South America. It has also formed strategic partnerships with universities in China to support research and develop cars tailored for the Chinese market.
MBA 592 Ford Vs. General Motor's Master's Thesis power pointSteven Abdo
This document compares Ford Motor Company and General Motors. It provides leadership profiles for both companies. It discusses how each company handled the Great Depression and Great Recession. During the Great Depression, Ford introduced a new larger vehicle to compete with GM. During the Great Recession, Ford was the only US automaker to not accept government bailout funds, instead taking on large loans. In contrast, GM and Chrysler both accepted billions in government funds and GM ultimately filed for bankruptcy. The document concludes that Ford is the better company because it never took taxpayer funds and the US government lost money on its bailout of GM.
The automobile industry occupies a large share of the global and Indian markets. In India, the automobile industry accounts for 18% of the national income and has a growth rate of 10-12%. Ford is one of the major players in the Indian automobile industry, having entered the country in 1907 through a joint venture with Mahindra & Mahindra. One of Ford's popular models sold in India is the Mondeo, though it faced competition from other mid-size sedans. Ford is working to aggressively expand in India through new product launches and an improved marketing strategy.
Ford Motors produces a range of vehicles in India including SUVs, hatchbacks, and sedans. The Endeavour is a popular SUV known for its imposing presence, while the Figo was Ford's first hatchback in India. The Fiesta Classic sedan offers a great driving experience to make up for its ordinary design. Ford also produces the premium Fiesta mid-size sedan. While Ford has strong engineering capabilities, its market share in India has been declining. It faces threats from other major automakers entering India and stricter government regulations. However, opportunities exist in growing markets like India and China, as well as developing new technologies like hybrids and alternative fuel vehicles.
The document summarizes a team project for a consumer behavior class on Ford Motor Company. It includes sections on motivations for choosing Ford from a survey of 20 owners, results of the survey showing the top reasons were price, tradition, and recommendations. The recommendations suggest sellers be committed to the brand, fully understand Ford's products, and communicate Ford's sustainability and awards to customers. In general, the document finds consumers choose Ford for both practical and emotional reasons related to its attributes and their needs.
Ford Motor Company is an American automaker headquartered in Dearborn, Michigan. It was founded in 1903 by Henry Ford and is a major competitor to General Motors and Chrysler. Ford struggled in the late 20th century due to failed restructuring plans under CEOs Alex Trotman and Jacques Nasser. When Bill Ford asked Nasser to resign, he was unable to turn the company around and Ford's market share fell to a historic low of 18%. In 2006, Alan Mulally was hired as CEO and successfully led a turnaround, returning Ford to profitability.
Ford Motor Company was founded in 1903 and transformed the automotive industry with the Model T. The company faced economic crisis during the late 2000s recession but a new CEO, Alan Mulally, helped turn the company around. Mulally slashed the workforce, sold off non-core brands, accelerated research and development, and paid down debt. This allowed Ford to withstand the recession while gaining brand loyalty. As a result, Ford's sales increased quarterly in 2009 while competitors struggled, and the company has since added more jobs and expanded globally looking toward continued growth and leadership in quality, fuel efficiency, and safety.
The document provides information on Ford Motor Company's mission, vision, strategies, products, competition, and recommendations. It analyzes Ford using several matrices:
1) SWOT analysis shows Ford has strengths and opportunities but also weaknesses and threats. Recommendations focus on markets, innovation, and risk management.
2) EFE matrix gives Ford an average score of 2.39 on opportunities and threats. Opportunities include new models and fuel efficiency. Threats include high emissions and competition.
3) IFE matrix gives Ford a score of 2.75, indicating some weaknesses internally in design and innovation. Strengths include large scale production and brand recognition.
4) CPM shows Ford has
GM conducted market research to understand declining sales and identify opportunities to increase revenue. Surveys, focus groups, and interviews found that consumers have negative perceptions of GM's quality and dealership experience. However, many were interested in hybrid vehicles and fuel economy. To boost sales, GM plans to improve quality, develop a hybrid model, and reposition their brands to attract new customers.
Ford's market share declined significantly in the late 2000s as demand shifted from gas-guzzling trucks and SUVs to more fuel-efficient vehicles. This contributed to Ford reporting a historic $8.5 billion loss in the second quarter of 2008. While Ford had previously focused its marketing on promoting its truck and SUV offerings, it now needs to adapt its strategies to compete with fuel-efficient foreign automakers. The document outlines Ford's historical marketing approaches from the 1920s-1980s, which initially emphasized standardization and low prices through mass production. However, Ford was slow to diversify its product line and lost significant market share to GM in the 1920s as consumer preferences changed.
Lessons on Leading Change from an American Icon WebinarGavin McMahon
Bryce G. Hoffman, author of the best-selling book “American Icon: Alan Mulally and the Fight to Save Ford Motor Company,” lead a free webinar on three key lessons from the Ford turnaround that you can use to change your company’s culture, drive accountability and foster teamwork. Under Mulally’s leadership, the famed automaker went from the brink of bankruptcy to record profits in just two years. By listening in, learn how your organization can use the same principles to meet its goals.
- The Importance of Culture
- How to Use Message Discipline
- The Business Progress Review -
A Powerful Tool for Leading Change
General Motors is a global automaker headquartered in Detroit. [1] It aims to be the world leader in transportation through continuous improvements and innovation. [2] GM faces challenges from falling US market share and the economic downturn, but sees opportunities in expanding globally and developing more fuel-efficient vehicles. [3] It uses differentiation across its brands like Cadillac, Chevrolet, and GMC.
Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan. Henry Ford built his first car in 1896 and went on to develop assembly line production methods. Ford had strong financial results in 2016 from new vehicle launches while investing in electrified vehicles and mobility services. The company's vision is for global automotive leadership through customer, employee, and stakeholder satisfaction. Ford produces automobiles, trucks, buses and offers financial services. It has strengths in the US market, popular models, and manufacturing expertise, but also faces challenges from its reliance on US/European sales and reputation as a middle-class brand.
Ford Motor Company was founded in 1903 by Henry Ford and remains under family ownership. It is a global automaker that produces cars, trucks, and commercial vehicles. Ford has implemented new strategies to streamline operations and production, improve fuel efficiency and technology, and strengthen its financial position in order to remain competitive in the global automobile market.
- Mahindra & Mahindra reported its highest ever monthly sales of utility vehicles in March 2009 at 25,748 units.
- Mahindra has entered a joint venture with Chinese firm Jiangsu Yueda Yancheng to roll out 125 HP tractors in China.
- Specialized commercial vehicles like medium and heavy trucks are driving growth in the commercial vehicles market in India as infrastructure develops.
The automobile industry in India is the tenth largest in the world, producing around 2 million units annually. It is expected to become one of the major global automotive industries in the coming years. Several domestic and multinational companies produce automobiles in India, leading to increased overall growth following economic reforms in 1991. The industry faces challenges from rising fuel costs and lack of skilled workers that must be addressed for continued growth.
Ford Motor Company is the second largest automaker in the US behind General Motors. This report analyzes Ford's organizational structure, strategic position using various matrices, and recommends a 3-year strategic plan for the new CEO. The analyses show strengths in Ford's global market share and manufacturing expansion, but weaknesses in declining profits in recent years. The recommendations aim to improve profitability through restructuring plans.
Ford Motor Company faces strategic challenges in the current economic environment. Two of its major competitors, Chrysler and General Motors, may file for bankruptcy in the next 1-2 months. As the most financially stable American automaker currently, Ford has enough cash to continue operations through 2009 if market conditions do not significantly deteriorate further. The report makes 5 recommendations: 1) Continue selling the Volvo brand for funds and strategic goals. 2) Prepare extensively for competitor bankruptcies. 3) Continue supporting the 'One Ford' strategy and Fiesta model. 4) Shift more production to lower-cost regions. 5) Exploit growth opportunities in China while focusing on India long-term.
Ford Motor Company is an American automaker headquartered in Michigan. It produces and distributes vehicles worldwide under the Ford and Lincoln brands. In 2012, Ford reported $136.3 billion in revenue and delivered strong profits for the 14th consecutive quarter. Ford uses strategies like product diversification and vertical integration to compete in global automobile markets against major competitors like Toyota and GM. The company also focuses on corporate social responsibility and sustainability through initiatives to reduce emissions and support human rights.
Ford Motor Company is an American automaker headquartered in Dearborn, Michigan. It was founded in 1903 and trades on the New York Stock Exchange. The document outlines Ford's strengths such as its strong US market position and financial performance, weaknesses like its poor environmental record and unprofitable European operations, opportunities in green vehicles and growth markets, and threats from decreasing fuel prices and intense competition.
Ford Motors was once the second largest automobile manufacturer in the US, but it faced declining market share, high debt, and failed products in the late 1990s. New CEO Alan Mulally devised strategies to cut costs, pay down debt, refocus products, and improve communications. These efforts helped Ford pay off some debts and earn a profit again by 2010. However, it still faces competition from Toyota, General Motors, and other automakers.
Ford Motors is working to address falling car sales and increased competition. It has cut 40,000 jobs in recent years and closed several plants in North America. Ford is focusing on developing more fuel-efficient vehicles and expanding into growth markets like China, India, and South America. It has also formed strategic partnerships with universities in China to support research and develop cars tailored for the Chinese market.
MBA 592 Ford Vs. General Motor's Master's Thesis power pointSteven Abdo
This document compares Ford Motor Company and General Motors. It provides leadership profiles for both companies. It discusses how each company handled the Great Depression and Great Recession. During the Great Depression, Ford introduced a new larger vehicle to compete with GM. During the Great Recession, Ford was the only US automaker to not accept government bailout funds, instead taking on large loans. In contrast, GM and Chrysler both accepted billions in government funds and GM ultimately filed for bankruptcy. The document concludes that Ford is the better company because it never took taxpayer funds and the US government lost money on its bailout of GM.
The automobile industry occupies a large share of the global and Indian markets. In India, the automobile industry accounts for 18% of the national income and has a growth rate of 10-12%. Ford is one of the major players in the Indian automobile industry, having entered the country in 1907 through a joint venture with Mahindra & Mahindra. One of Ford's popular models sold in India is the Mondeo, though it faced competition from other mid-size sedans. Ford is working to aggressively expand in India through new product launches and an improved marketing strategy.
Ford Motors produces a range of vehicles in India including SUVs, hatchbacks, and sedans. The Endeavour is a popular SUV known for its imposing presence, while the Figo was Ford's first hatchback in India. The Fiesta Classic sedan offers a great driving experience to make up for its ordinary design. Ford also produces the premium Fiesta mid-size sedan. While Ford has strong engineering capabilities, its market share in India has been declining. It faces threats from other major automakers entering India and stricter government regulations. However, opportunities exist in growing markets like India and China, as well as developing new technologies like hybrids and alternative fuel vehicles.
The document summarizes a team project for a consumer behavior class on Ford Motor Company. It includes sections on motivations for choosing Ford from a survey of 20 owners, results of the survey showing the top reasons were price, tradition, and recommendations. The recommendations suggest sellers be committed to the brand, fully understand Ford's products, and communicate Ford's sustainability and awards to customers. In general, the document finds consumers choose Ford for both practical and emotional reasons related to its attributes and their needs.
Ford Motor Company is an American automaker headquartered in Dearborn, Michigan. It was founded in 1903 by Henry Ford and is a major competitor to General Motors and Chrysler. Ford struggled in the late 20th century due to failed restructuring plans under CEOs Alex Trotman and Jacques Nasser. When Bill Ford asked Nasser to resign, he was unable to turn the company around and Ford's market share fell to a historic low of 18%. In 2006, Alan Mulally was hired as CEO and successfully led a turnaround, returning Ford to profitability.
Ford Motor Company was founded in 1903 and transformed the automotive industry with the Model T. The company faced economic crisis during the late 2000s recession but a new CEO, Alan Mulally, helped turn the company around. Mulally slashed the workforce, sold off non-core brands, accelerated research and development, and paid down debt. This allowed Ford to withstand the recession while gaining brand loyalty. As a result, Ford's sales increased quarterly in 2009 while competitors struggled, and the company has since added more jobs and expanded globally looking toward continued growth and leadership in quality, fuel efficiency, and safety.
The document provides information on Ford Motor Company's mission, vision, strategies, products, competition, and recommendations. It analyzes Ford using several matrices:
1) SWOT analysis shows Ford has strengths and opportunities but also weaknesses and threats. Recommendations focus on markets, innovation, and risk management.
2) EFE matrix gives Ford an average score of 2.39 on opportunities and threats. Opportunities include new models and fuel efficiency. Threats include high emissions and competition.
3) IFE matrix gives Ford a score of 2.75, indicating some weaknesses internally in design and innovation. Strengths include large scale production and brand recognition.
4) CPM shows Ford has
GM conducted market research to understand declining sales and identify opportunities to increase revenue. Surveys, focus groups, and interviews found that consumers have negative perceptions of GM's quality and dealership experience. However, many were interested in hybrid vehicles and fuel economy. To boost sales, GM plans to improve quality, develop a hybrid model, and reposition their brands to attract new customers.
Ford's market share declined significantly in the late 2000s as demand shifted from gas-guzzling trucks and SUVs to more fuel-efficient vehicles. This contributed to Ford reporting a historic $8.5 billion loss in the second quarter of 2008. While Ford had previously focused its marketing on promoting its truck and SUV offerings, it now needs to adapt its strategies to compete with fuel-efficient foreign automakers. The document outlines Ford's historical marketing approaches from the 1920s-1980s, which initially emphasized standardization and low prices through mass production. However, Ford was slow to diversify its product line and lost significant market share to GM in the 1920s as consumer preferences changed.
Lessons on Leading Change from an American Icon WebinarGavin McMahon
Bryce G. Hoffman, author of the best-selling book “American Icon: Alan Mulally and the Fight to Save Ford Motor Company,” lead a free webinar on three key lessons from the Ford turnaround that you can use to change your company’s culture, drive accountability and foster teamwork. Under Mulally’s leadership, the famed automaker went from the brink of bankruptcy to record profits in just two years. By listening in, learn how your organization can use the same principles to meet its goals.
- The Importance of Culture
- How to Use Message Discipline
- The Business Progress Review -
A Powerful Tool for Leading Change
General Motors is a global automaker headquartered in Detroit. [1] It aims to be the world leader in transportation through continuous improvements and innovation. [2] GM faces challenges from falling US market share and the economic downturn, but sees opportunities in expanding globally and developing more fuel-efficient vehicles. [3] It uses differentiation across its brands like Cadillac, Chevrolet, and GMC.
Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan. Henry Ford built his first car in 1896 and went on to develop assembly line production methods. Ford had strong financial results in 2016 from new vehicle launches while investing in electrified vehicles and mobility services. The company's vision is for global automotive leadership through customer, employee, and stakeholder satisfaction. Ford produces automobiles, trucks, buses and offers financial services. It has strengths in the US market, popular models, and manufacturing expertise, but also faces challenges from its reliance on US/European sales and reputation as a middle-class brand.
Ford Motor Company was founded in 1903 by Henry Ford and remains under family ownership. It is a global automaker that produces cars, trucks, and commercial vehicles. Ford has implemented new strategies to streamline operations and production, improve fuel efficiency and technology, and strengthen its financial position in order to remain competitive in the global automobile market.
- Mahindra & Mahindra reported its highest ever monthly sales of utility vehicles in March 2009 at 25,748 units.
- Mahindra has entered a joint venture with Chinese firm Jiangsu Yueda Yancheng to roll out 125 HP tractors in China.
- Specialized commercial vehicles like medium and heavy trucks are driving growth in the commercial vehicles market in India as infrastructure develops.
The automobile industry in India is the tenth largest in the world, producing around 2 million units annually. It is expected to become one of the major global automotive industries in the coming years. Several domestic and multinational companies produce automobiles in India, leading to increased overall growth following economic reforms in 1991. The industry faces challenges from rising fuel costs and lack of skilled workers that must be addressed for continued growth.
This document provides an overview of the Ford automobile company's entry into the luxury and premium car market in India. It discusses Ford's history and global presence. It then explains that in 2006, Ford focused on entering the Indian luxury and niche car market, seeing an opportunity for growth. Ford established a subsidiary, Ford India, and initially invested 1.4 billion Indian rupees. The document concludes by noting that Ford entered the Indian market to take advantage of the growing premium automobile sector in India, which was around 1.3% of the market but growing rapidly.
A report on consumer awareness and perception towards e bikesProjects Kart
The document discusses a study on consumer awareness and perception of electric bikes (e-bikes) conducted by GENXT Power (India) Ltd. The study found that while consumers were satisfied with the mileage of e-bikes, most were not satisfied with the price and speed. It was also found that lack of awareness has affected e-bike adoption. The document recommends increasing advertisements, lowering prices, improving after-sales service and speed, and promoting e-bikes to increase their sales.
An Analysis of Automobile Industry of India as a Market StructureMuhammad Anowar
Automobile industry is a symbol of technical marvel by human kind. Being one of the fastest growing sectors in the world its dynamic growth phases are explained by nature of competition, product life cycle and consumer demand. Today, the global automobile industry is concerned with consumer demands for styling, safety, and comfort; and with labor relations and manufacturing efficiency. The industry is at the crossroads with global mergers and relocation of production centers to emerging developing economies.
Asia has become the major consumer as well as supplier of automobiles. India is concentrating on Middle East and south Asia beside traditional developed country destinations. With the gradual opening up of the component sector, now the challenge is for individual governments to support the development of domestic critical component and sub-system suppliers through, improvement in the investment environment, stronger patent regimes and incentives for R&D.
Marketing research project on electric bikeProjects Kart
The document discusses the growing Indian economy and increasing demand for energy and transportation. It notes that transportation currently accounts for over 20% of global energy consumption, and that oil and gas meet 60% of energy needs but reserves are being depleted. The introduction of electric vehicles is presented as a solution to reduce pollution and dependence on fossil fuels.
The objectives of the study are to understand consumer awareness, preferences, experiences and the market share of electric bike manufacturers in Raipur City. The research methodology discusses sampling a population of 300 electric bike consumers in Raipur using stratified proportionate sampling. Primary and secondary data will be collected through questionnaires.
The company's vision is to become a leading engineering company in manufacturing, met
A project report on orgnoziation study of tata motorsBabasab Patil
The automobile industry in India has grown significantly over the past few decades. It is now the 11th largest in the world, with annual production of around 2 million vehicles. India has a large market potential given its population of over 1.1 billion and low vehicle ownership rate. The industry employs over 13 million people and contributes around 3% to India's GDP. Motorcycles dominate the two-wheeler segment, while cars make up 79% of passenger vehicle sales. Tata Motors has over 60% market share in commercial vehicles. The industry has attracted many global automakers and is an important part of the Indian economy.
The document provides an overview of the automobile industry in India. It discusses that the industry contributes 4% to India's GDP and employs over 10 million people. It summarizes that Maruti, Tata, and Mahindra & Mahindra are major players in the passenger vehicle, commercial vehicle, and tractor segments respectively. The document also outlines various career opportunities and discusses the future prospects of growth for the Indian automobile industry.
Trends in Automobile Industry in IndiaRohit Jadhav
The document summarizes recent trends in India's automotive industry, including a focus on how rising petrol prices have affected consumer buying behavior and sales. It outlines the objectives and hypotheses of a proposed causal study investigating the relationship between petrol price hikes and declining petrol vehicle sales. Key points include:
- India's automotive industry is one of the largest and fastest growing globally, producing over 3.7 million vehicles annually as of 2010.
- While overall sales are increasing, sales of petrol vehicles have declined as prices rose above Rs. 60 and Rs. 70 per liter, with consumers switching to diesel vehicles.
- The proposed study will examine this change in consumer buying behavior and its relationship to rising petrol costs through surveys
The Indian automotive industry has experienced significant growth over the past decade. Exports of automobiles from India surged 57% in 2008-2009, led by major exporters Hyundai and Maruti Suzuki shipping more vehicles to Europe. However, domestic sales were impacted by the economic slowdown and high lending rates. Passenger vehicle sales grew only 0.13% while commercial vehicle sales declined sharply. Two-wheeler sales also grew modestly at 2.6% due to financing issues. Going forward, demand from Europe may soften and domestic sales will depend on availability of financing and new model launches.
Ford Motors is a leading automobile company that was severely impacted by the 2008 recession but has since made a strong recovery. An analysis of Ford and the automobile industry highlights several key points. The industry has faced overcapacity challenges as production outpaced demand. Ford has implemented a "One Ford" strategy focused on restructuring, new product development, and improving its financial position. Looking forward, Ford's strategy should continue expanding into foreign markets through strategic alliances while addressing ongoing industry problems like excess capacity and high new product development costs.
Auto Parts Manufacturing Industry Report - HF_L. TamakloeLiana Tamakloe
The auto parts and equipment manufacturing industry derives about 95% of its demand from the automobile manufacturing industry. Recent positive economic indicators in the US, such as expected GDP growth of 3.4% in 2015 and low unemployment, are expected to increase consumer spending and automobile demand, which will benefit the auto parts industry. While the outlook is positive, the growth drivers are transitory, so a market weight is recommended for the industry. Risks include increased competition from imports if the strong US dollar persists and slow global economic growth reducing overseas demand.
General Motors AnalysisGeneral Motors AnalysisTeam 7Li.docxhanneloremccaffery
This document provides an analysis of General Motors and the automobile manufacturing industry. It summarizes key details about GM's industry classification and SIC codes. It also analyzes the industry structure based on 10 items from an IBISWorld report, including that the industry is mature with moderate competition and barriers to entry. External drivers for the industry are discussed, along with current performance, outlook, supply chain, demand determinants, products/services, basis of competition, and major players. Toyota, GM, and Ford have the largest market shares, comprising about 45% total.
This document analyzes Toyota Motor Corporation. It begins with an overview of the company and the automotive industry's external environment. It then examines Toyota's internal environment, including its core competencies, strengths, and strategies. The document provides a framework for analyzing Toyota's competitive advantage and making recommendations to sustain its success.
This document analyzes Toyota Motor Corporation. It begins with an overview of the company and the automotive industry's external environment. It then examines Toyota's internal environment, including its core competencies, strengths, weaknesses, and financial performance. The document concludes with recommendations for how Toyota can sustain its competitive advantage.
This document provides a summary of a case study on General Motors from 2005. It discusses GM's losses in the first two quarters of 2005 due to issues in North America operations. To address this, GM adopted a strategy of offering employee discounts to boost sales by 47% and increase its market share. The document also provides overviews of GM's products, mission, vision, history, current situation, organizational structure, financial analysis, SWOT analysis, competitor analysis, and recommendations.
The document discusses the history of incentive use in the automotive industry from the 1990s to present. It notes that incentive spending grew dramatically from the mid-1990s to 2004, helping new vehicle sales reach record highs but also depressing used vehicle prices. Manufacturers began reducing incentive use in the mid-2000s in response to negative impacts on used vehicle values. Incentive spending has declined since but risks rising again with increased production capacity if sales growth levels off.
Week 1 - Form 1 Applied Research ProjectFORM 1Brief descrip.docxjessiehampson
Week 1 - Form 1: Applied Research Project
FORM 1
Brief description of your proposed Applied Research Project:
Topic: Effect of Increasing Training Budget
Justification and/or reasons why you want to do this project:
INTERPRETING PRESENTATIONS OF DATA ANALYSIS IN ARTICLES OR REPORTS
LEARNER’S NAME
CAPELLA UNIVERSITY
APPLIED BUSINESS ANALYTICS
INTERPRETING PRESENTATIONS OF DATA ANALYSIS IN ARTICLES OR REPORTS
FEBRUARY, 2019
General Motors: The Business Context
Publicly traded multinational corporation (CNN, 2019)
Only 14.5% of its gross revenue comes from markets outside North America (Statista, 2019)
Downsizing of the company (CNN Business, 2018)
Recent shift toward the production of autonomous electric vehicles (General Motors, 2017)
Hello, all. In today’s presentation, I will discuss two graphs that provide insight into the global economy, and this will go on to provide a clearer perspective of our business context and direct us toward profitable decision-making.
In the past decade, the company has been through turbulent times. We have faced bankruptcy, acquired the status of a government-owned company, and have again become a publicly traded company (CNN, 2019). Although we are one of the largest automakers in the world, only 14.5% of our gross revenue for 2018 was generated from sales in markets outside North America (Statista, 2019), a major concern from the standpoint of growth in revenue and profitability. The company is currently undergoing major restructuring at the global level. We have shut down five facilities in North America and have cut our salaried workforce by 15%. These decisions have been tough but are necessary to remain flexible, increase savings, and stabilize profits (CNN Business, 2018).
Today, General Motors is moving toward a bright future by investing in the production of cutting-edge automobiles. Our 2017 sustainability report highlighted the successful operation of five electrified automobile models developed by us. This accomplishment is accompanied by our commitment to introduce 20 electric vehicles by 2023, which is in adherence to the goal of zero-emission vehicles (General Motors, 2017). The value of this direction should be understood against the backdrop of the automobile industry’s future in self-driving cars and its changing competition arena. Technological firms from the Silicon Valley are challenging traditional automakers with self-driven car models. Therefore, the way forward is to stay ahead in the innovation race (CNN Business, 2018).
2
Variance in Returns on Invested Capital for North American Firms
(as cited in Dobbs, Koller, & Ramaswamy, 2015)
The line graph offers a visual representation of the variance in returns on invested capital for North American firms over a period of 50 years. The graph explains the relationship between two variables, with the value of the first depending on the value of the second. The time duration (m ...
Lending To Automobile Dealers Credit Risk Issueserikday
Lending to auto dealerships presents several credit risk management issues for lenders. Large dealer groups have greater dollar exposure and complexity due to operating multiple franchises across various regions. Small dealers may offer better returns but also have vulnerabilities due to sole ownership and reliance on local markets. When evaluating loans, lenders must consider factors like a dealer's financial controls, ownership structure, management experience, product mix, and regional economic exposure to understand the risks. Ongoing changes in the auto industry also impact dealers through issues such as high inventory, lower margins, and consolidation trends.
Lending To Automobile Dealers Credit Risk Issueserikday
Lending to automobile dealerships presents several credit risk management issues for lenders. Large dealer groups have greater dollar exposure and complexity due to operating multiple franchises across various regions. Small dealers may offer better returns but also have vulnerabilities due to sole ownership and reliance on local markets. When evaluating loans, lenders must consider factors like a dealership's financial controls, ownership structure, management experience, product mix, and regional economic conditions to determine viability. Close scrutiny is important as the auto industry continues consolidating.
Auto bailout integrative leadership or notthom1063
This presentation applies the principles of Integrative Leadership to the actions and actors in the 2008 US Auto Industry Bailout. Ultimately, you will reflect on your role as a business, law, education, public health or public policy professional in leading your city, state, country or world toward achievements for the common good.
You will learn:
1. Principles of Integrative Leadership
2. Case study critique method
3. Possible alternative outcomes through integration
EACH GROUP TO PRESENT BMW CASE IS REQUIRED TO PREPARE THEIR PR.docxsagarlesley
EACH GROUP TO PRESENT BMW CASE IS REQUIRED TO PREPARE THEIR PRESENTATIONS AS IN BELOW FORMAT:
1. GENERAL SUMMARY OF WHAT’S HAPPENING IN THE CASE
2. YOUR ANSWERS FOR THE BELOW QUESTIONS:
a. Assuming that most modern cars share very similar characteristics; what drive customers to purchase their next car? Considering that, how
can BMW’s “Dream It. Build It. Drive It.” program benefit from such a car-buying decision of customers?
b. Does BMW’s “Dream It. Build It. Drive It.” program have a sustainable advantage in long term? Would you use BMW’s “Dream It. Build It.
Drive It.” program for X5, and X1?
Learning Goals
1. To assess factors that create international business opportunities
2. To identify potential global business opportunities for various foreign markets
Purpose
Some organizations attempt to expand their international operations by seeking foreign markets appropriate for existing products and services. Other enterprises assess foreign business environments in an attempt to meet needs in those markets.
In this first section, you will conduct a preliminary assessment of geographic, economic, social-cultural, and political-legal factors that create global business opportunities in foreign markets. Also, you should consider how technology could create new foreign business opportunities by expanding possibilities for production, marketing, and distribution of goods and services.
Background
Global Business Opportunities
Potential foreign business opportunities may be viewed in two major categories:
A. Various country factors create international business opportunities. These include:
· • Natural resources, agricultural products, or geographic factors (climate or terrain)
· • Level of economic development and infrastructure
· Cultural characteristics, social activities, or demographic trends
· Changing political situations or legal factors
· Technology that may enhance production or distribution of an item
B. Existing companies attempting to expand into new markets around the world—Think about several possible global business opportunities that would be the basis for new or expanding international business operations. These business opportunities may be consumer goods or services; or organizational goods and services, sold to businesses, government agencies, nonprofit organizations, schools, hospitals, hotels, or other organizations.
Examples of global business opportunities include: processing of fresh fruit in Chile for distribution around the world; sale of water filtration systems in developing economies; sale of food products adapted to the tastes of different cultures; development of cellular telephone systems in countries with a weak communication infrastructure; and expansion of fast-food restaurants into countries with expanding economies.
Resources
Web links:
· Global Edge CyberSite
· Business Around the World Atlas (Works best with Firefox.)
· CIA World Fact Book
Conduct Research
Collect data a ...
This document compares Ford and Honda, two large automobile manufacturers. It analyzes their sales, markets, manufacturing locations, stock shares, employees, revenues, and profit margins from 2005-2010. It then performs SWOT analyses for both companies, identifying strengths like brand value, engines, and product diversity for Honda, and weaknesses like shareholder losses and nationalistic image for Ford. The document concludes by suggesting potential strategies for each company.
Security analysis report on automobile sectorRahul Hedau
This document provides a summary of key economic factors impacting the Indian automobile industry and capital markets as a whole. It discusses factors such as excess capacity, pricing pressure, financing options, advertising and income levels that influence the automobile sector. It also analyzes macroeconomic indicators, global cues, political stability, and growth prospects that impact capital markets. The document concludes with an analysis of present and future opportunities in the auto sector as well as risks, noting the sector's continued slowdown poses risks for investors.
The Blue Sky Report® - A Kerrigan Quarterly – First Quarter 2020 PreviewErin Kerrigan
- The first quarter of 2020 saw a 9.3% decline in completed dealership transactions compared to Q1 2019 due to the onset of the COVID-19 pandemic in mid-March.
- Dealership earnings were on track for record growth in 2020 before plummeting in March and April due to stay-at-home orders and showroom closures.
- However, auto retail has proven resilient during past crises and well-positioned for growth given efforts by OEMs, lenders, and government to support the industry during the pandemic. Investor interest and valuations in auto retail have rebounded sharply from March lows.
This document discusses brand personality as it relates to cars in the Indian market. It provides an overview of the automobile industry in India and reviews literature on brand personality and how it is created. Brand personality refers to the human traits associated with a brand, and is influenced by a brand's marketing mix, user imagery, sponsorship activities, age, and symbols. Understanding brand personality can help enrich consumer understanding, contribute to brand differentiation, and guide communication efforts. The document examines how companies try to link certain personalities to the brands of cars they sell.
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1. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
1
U.S. Demand Analysis for
Vehicles and Implications for
By Team 15
Lamya Barazi, Isha Mehta, Seth Harris, Tony Garcia,
Phillip Pless
December 2015
2. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
2
CONTENTS
I. Industry/Company Trends ………………………………………..……………….. 3
II. Multiple Variable Regression ……………………………………..………………. 4
a. Regression Variables ……………………………………………..………………. 4
b. Data Sources …………………………………………………………..…………….. 5
c. Multiple Variable Regression …………………………………................. 5
III. Forecasts …………………………………………………………………………………… 6
IV. Application of Forecast/Insights ………………………………………………… 8
V. Emerging Technology ………………………………………………………………… 9
VI. Automobile Demand Regression Model ………………………………….. .11
VII. References ………………………………………………………………………………. 14
3. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
3
I. Industry/Company Trends
Source: U.S. Department of Commerce, Bureau of Economic Analysis, Autonews.com, and AutoData
Ford and the overall U.S. vehicle market experienced a dramatic decrease in vehicle sales during the Great
Recession. Over the past 25 years, the automobile market has undergone several periods of market growth, and
contraction. In fact, from 1990-2014, the compound annualized growth rate for Ford vehicles (cars and light trucks)
was negative 1.36%, while the overall U.S. vehicle compound annualized growth rate was 0.71%. This growth rate
accounts for annual variations in the sales growth rate, and provides a more accurate representation of Ford and the
overall U.S. market vehicle sales growth rate during this period of time. During this same time period Ford’s
average vehicle market share was 21.26% of the overall U.S. vehicle market. Ford’s market share is a significant
portion of the overall U.S vehicle market given increased competition from other automakers such as Honda and
Toyota during this time period (Cutcher-Gershenfeld, Brooks, & Mulloy, 2015).
The Great Recession of 2007-2009 had a profound impact on the automobile industry in the United States. From
2007 to 2009, sales in the U.S. automobile industry decreased dramatically. Ford’s sales decreased 22% in 2008, and
16% in 2009, while overall sales of U.S. vehicles dropped 18% and 21% respectively. Automobile sales were
depressed during this time period due to the housing market and financial market collapse that began in 2007.
Consumer sentiment is an important barometer of economic health for the automobile industry because a more
confident consumer is more likely to purchase a new or used vehicle (Levy, 2015). During the Great Recession,
consumer confidence dropped to a low of 63.8 in 2008 (“University of Michigan Consumer Sentiment”, n.d.).
Additionally, oil prices skyrocketed in 2008 which in turn caused a dramatic increase in the price of gasoline; thus,
consumers’ tastes and preference shifted from large, domestically produced vehicles to imported cars that offered
better mileage and greater fuel efficiency (Ahmadian, Hassan, & Regassa, 2013). The price of oil increased from
$37.54 to 85.34 from 2000 to 2008 (Oil Prices 1946-present, para. 6). Consequently, American car manufacturers’
market share decreased due to foreign vehicle manufacturers being more fuel efficient (Carty, 2009).
Ford Motor Company is classified as one of the largest vehicle manufacturing companies in the world. During the
1990’s, Ford’s strategy was to attract American consumers with moderate incomes, and it targeted this consumer
segment successfully (Meyer, 2015). During this same time period, Ford also acquired luxury car brands such as
Jaguar, Land Rover, and Volvo in order to diversify their targeted consumer base, and to pursue brand
diversification. (Ford Motor Company, 2015, para. 5). However, in the 2000’s, as Ford experienced financial woes,
it began to sell the companies it had acquired during the 1990’s (Ford Motor Company, 2015, para. 5). In 2008,
4. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
4
when the US government offered loans to automakers to prevent bankruptcy, Ford restructured its organization and
benefitted from U.S. government programs such as “cash for clunkers” where consumers received one-time rebates
for trading in their used vehicles (Ford Motor Company, 2015). However, Ford received no bailout money from the
U.S. government. This gave Ford a positive perception with consumers, which ultimately helped Ford increase its
market share after the Great Recession (Kiley, 2009). U.S. consumers’ positive perception of Ford increased from
41% to 63% after Chrysler and GM received bailout money (Kiley, 2009). Also, because Ford did not receive
bailout money, like GM or Chrysler, it was more flexible in executing strategy because it was not limited by
government involvement in their business decisions (Schoenberger, 2011). Finally, in the past several years as the
economy has recovered, more Americans are valuing style and design, and are not as price sensitive (Amadeo,
2015). Consequently, Ford Motor Company changed its strategy to compete with other automakers by
differentiating itself through adding the features that the customers demand in their vehicles like its EcoBoost
technology.
II. Multiple Variable Regression
a. Regression Variables
Real Price (1990 $) - (Expected Negative Sign) - The expected sign between real price is projected to be negative.
An inverse relationship between real price and quantity demanded exists because as real price falls the quantity
demanded increases, and vice versa. This is the relationship between real price and quantity demanded as stated by
the law of demand.
Unemployment Rate- (Expected Negative Sign) As unemployment increases, it is expected that demand for vehicles
will decrease. Those who are unemployed will not have enough discretionary income to purchase a different vehicle,
and will be forced to keep what they currently have.
Consumer Sentiment- (Expected Positive Sign) - Consumer sentiment measures a consumer’s confidence in the
economy. As consumer confidence increases, it is expected that consumer demand for automobiles will increase as
well.
Federal Funds Interest Rate (Expected Negative Sign) - As the cost to borrow increases, the demand for vehicles is
expected to decrease. If it is more expensive for people to borrow, they will be prone to holding onto their money
until rates decrease.
GDP- (Expected Positive Sign) - Increasing GDP is expected to generate a higher demand for vehicles. The more
money that is circulating in the economy, the more confidence consumers have in making purchases.
Gasoline- Real Price- (Expected Negative Sign) Increasing gasoline prices is expected to drive demand for fuel
efficient cars. It is unclear how it would affect sales overall, because it could shift sales from bigger vehicles to
smaller vehicles (substitution effect). Overall it is anticipated it would be a negative sign because consumers most
likely will have less discretionary income for vehicle purchases in a period of high gasoline prices.
Median Household Income- (Expected Positive Sign) It is expected that as household income increases, families will
have more discretionary income to buy vehicles. Spending limits will also increase, possibly affecting the style of
car purchased.
Durable Good Expenditures (Expected Positive Sign) - Durable good expenditures are a quarterly measure of
consumer expenditures on goods with a long useful life. It is expected that durable goods expenditures will have a
positive sign with quantity demanded, because vehicles are a type of durable good. Durable goods can require a
significant investment in consumer resources and are typically signs of a strong economy.
Quarter 2 and 3 (Seasonality) Indicator Variable- (Expected Positive Sign) - Vehicle purchases have a strong
seasonal component, therefore it is expected that seasonality will play a component in the regression equation. The
expected sign for the seasonality indicator variables is expected to be positive with quantity demanded because it is
hypothesized that quarter 2 and quarter 3 have stronger sales than other quarters.
Recession (Indicator Variable)-(Expected Negative Sign) - During periods of economic recessions it is predicted
that the recession indicator variable will have a negative relationship with quantity demanded. Automobiles are
5. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
5
classified as a type of durable good. During times of recession, durable goods expenditures tend to decrease. Thus, it
is expected that the recession indicator variable will have a negative sign with quantity demanded.
b. Data Sources
Monthly Civilian Unemployment Rate, Not Seasonally Adjusted, 1990-2015:
U.S. Department of Labor, Bureau of Labor Statistics. (2015, November 1). Civilian Unemployment Rate, Monthly,
Not Seasonally Adjusted [Data set]. Retrieved November 21, 2015, from
https://research.stlouisfed.org/fred2/series/UNRATENSA.
Quarterly Consumer Sentiment, Not Seasonally Adjusted, 1990-2015:
University of Michigan/Reuters. (2015, November 1). Consumer Sentiment, Quarterly, Not Seasonally Adjusted
[Data set]. Retrieved November 21, 2015, from https://research.stlouisfed.org/fred2/series/UMCSENT
Quarterly Effective Federal Funds Interest Rate, Not Seasonally Adjusted, 1990-2015:
Board of Governors of Federal Reserve System. (2015, November 1). Effective Federal Funds Interest Rate,
Quarterly, Not Seasonally Adjusted [Data set]. Retrieved November 21, 2015 from,
https://research.stlouisfed.org/fred2/series/DFF
Quarterly Gross Domestic Product, Seasonally Adjusted, Nominal Dollars, 1990-2015:
U.S. Department of Commerce, Bureau of Economic Analysis. (2015, November 1). Gross Domestic Product,
Quarterly, Seasonally Adjusted, Nominal Dollars [Data set]. Retrieved November 21, 2015, from,
http://www.bea.gov/national/index.htm#gdp
Annual Median Household Income, Not Seasonally Adjusted, 2014 Real Dollars, 1990-2015:
U.S. Census Bureau. (2015, November 1). Median Household Income, Annual, Not Seasonally Adjusted, 2014 Real
Dollars [Data set]. Retrieved November 21, 2015, from,
https://research.stlouisfed.org/fred2/series/MEHOINUSA672N
Quarterly Durable Goods Expenditures, Seasonally Adjusted, Nominal Dollars, 1990-2015:
U.S. Department of Commerce, Bureau of Economic Analysis (2015, October 29). Durable Goods Expenditures in
Billions of Dollars, Quarterly, Seasonally Adjusted, Nominal Dollars [Data set]. Retrieved November 21, 2015,
from, https://research.stlouisfed.org/fred2/series/PCEDG
Quarterly National Bureau of Economic Research Recession Indicators for the U.S. from the Period
Following the Peak through the Trough, Not Seasonally Adjusted:
Federal Reserve Bank of St. Louis, (2014, September 17). National Bureau of Economic Research Recession
Indicators for the U.S. from the Period Following the Peak through the Trough, Not Seasonally Adjusted [Data set].
Retrieved December 3, 2015, from, https://research.stlouisfed.org/fred2/series/USRECQ#
c. Multiple Variable Regression
The best demand equation to calculate the demand for the automobile sales is:
Motor Vehicle Unit Retail Sales = 5011 - 0.05929 Price (real- 1990)
- 205.4 Unemployment Rate + 12.56 Consumer Sentiment + 442.9 Quarter 2 +
272.3 Quarter 3 - 275.1 Recession
6. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
6
All the independent variables are highly correlated with automobile demand/sales (dependent variable), and thus
they play an important role in driving demand. This is further indicated by low p-values. This means that each
variable is a meaningful addition to the equation. A change in any of these variables will affect demand. The VIF
values (less than 5) for the variables indicate that there is low multi-collinearity. This shows that even though the
variables affect demand individually, they don’t affect each other by a significant amount. This is important in a
good model because it indicates low redundancy.
The R-squared value is 80.18%. This means that 80.18% variation in demand can be explained by our model. The
residual plots also show that the model is approximately normal and homoscedastic. We can see that our model has
one outlier. This can be explained by an extreme event (9/11 terrorist attack). All of these factors show that the
model is a good fit.
Analyzing each variable individually, we observe
· Price has a coefficient of -0.059. This validates the assumption that consumers are price sensitive,
and thus an increase in price by one dollar reduces demand by 0.059 units when other factors remain
constant.
· Unemployment Rate has a coefficient of -205.4 which indicates that when unemployment increases,
the demand for vehicles decreases. This is true because when unemployment rises, the purchasing power
and average income of the population decreases. This causes a fall in demand for vehicles.
· Consumer sentiment is also an important factor that affects demand because it measures the
consumer’s confidence in the economy. When confidence drops, consumers will refrain from making any
big purchases, and thus the demand for automobile drops. Therefore, it has a positive coefficient.
· The sales of vehicles are seasonal. Quarter 2 and Quarter 3 (Spring and Summer time) have
historically had higher sales than Quarter 1 and Quarter 4.
· Recession plays a very important role in the demand for any product. During the time of a
recession, growth is reduced and people try to save as much as possible. The overall movement of money
in the economy slows down. This is indicated by the high negative coefficient in the model.
Our demand equation takes into account the major factors affecting demand for automobile sales and the statistics
show that it’s a good predictor for demand.
Unemployment rate and the presence of a recession seem to both have a similarly negative effect on the demand for
automobiles. Unemployment rate and the presence of a recession can be hard to measure or predict at times, but if
the information is readily available Ford can use the information to control inventory levels. Excessive inventory can
be extremely costly in a market that produces new models yearly. The presence of a recession is often not
recognized until the economy is already in one presently, or it has recently passed. With that being said, if Ford
starts to recognize indicators of a slowing economy, production across the board needs to decrease in a
corresponding manner.
As evidenced by the model, the demand for automobiles is highly seasonal in nature. This is very important because
Ford must maintain higher inventory levels in the middle two quarters of the year so that they do not lose sales due
to unavailability of inventory. It is important to not over forecast inventory, which will cause older models to still be
present on the dealer lots heading into the new year. Manufacturing efforts at the beginning of the year are very
important to set the company up for success throughout the year.
Pricing is a very important part of Ford reaching consumers in an effective manner. Although it does not drive
demand to the extent that unemployment rate, recession, and seasonality do, having an appropriate pricing strategy
will help the company drive demand. The model shows that as price increases, demand will decrease. Pricing
7. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
7
vehicles to where they will sell, but not exceed production capabilities, will enable Ford to run more efficiently as an
organization.
III. Forecasts
We used the Forecasting template to determine the input values for the independent variables.
Our forecast for each of the variables is as follows:
We are almost at the end of the fourth quarter and the economy is not in a recession, therefore no recession will be
accounted for in Q4 2015. We have assumed that there will not be a recession in 2016. In the case of a recession, the
demand for vehicles will be less than the forecasted demand.
On substituting the independent variables in the demand equation
Motor Vehicle Unit Retail Sales = 5011 - 0.05929 Price (real- 1990)
- 205.4 Unemployment Rate + 12.56 Consumer Sentiment + 442.9 Quarter 2 +
272.3 Quarter 3 - 275.1 Recession
We get the following US sales:
The forecast depends on various economic, social, and political factors that can influence the independent variables.
The changes in the independent variables will affect the demand for vehicles. The graphical representation of past
sales and the forecast is as follows:
8. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
8
IV. Application of Forecast/Insights
Our forecast model predicts that demand will increase in Q2 and Q3 of FY 2016. We recommend a quarterly price
increase of 0.375% (1.5% annual rate) to stay in line with the current United States inflation rate (Projected Annual
Inflation Rate, n.d.). We recommend a three percent increase in price from Q1 FY 2016 to Q3 2016. Our
recommended pricing strategy is to continue Ford’s current two-tiered pricing strategy. We recommend a market-
orientation pricing strategy across our standard Ford models such as sedans and trucks. An appropriate strategy for
our luxury vehicle lines is the premium pricing strategy; this would be suitable for us to use in the Lincoln line
(Ferguson, 2015). Our forecasting model suggests that aggregate macroeconomic factors, such as low
unemployment rates, no projected recession, and strong consumer sentiment support these pricing strategies.
In order to have enough inventory to meet the forecasted demand in Q2 and Q3 FY 2016, we recommend an
increase in production in Q1 FY 2016 to ensure inventory is on hand for our dealers. Ford is trying to take the
guesswork out of inventory ordering (Burke, 2014). Having accurate forecasts enables us to respond quickly without
distributing the required inventory. Since 2009, we have leveraged our analytics skill through the Smart Inventory
Management System to improve inventory management using data from our dealers in the United States. “The data,
stored in Ford’s supercomputers at its product development center in Dearborn, MI, are analyzed to generate
recommendations for inventory orders, including model, trim and feature combinations.” (Burke, 2014) The dealers
still retain authority to order what models, colors, and features for their dealership. The recommendations from the
Smart Inventory Management System match dealership ordering by 98 percent (Burke, 2014).
We recommend expanding their analytics capability to create greater efficiency and quality in our supply chain and
manufacturing. Ford utilizes a robust supply chain including 60 countries, 1,100 supplier companies, 4,100 supplier
manufacturing sites, and 130,000 parts being manufactured. Applying analytics to the supply chain will allow us to
be more agile to changing market demand (Ford Motor Company, 2014).
9. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
9
A benefit of producing vehicles that are high quality and safe is less risk for production recalls and maintaining the
strong integrity of the Ford brand. Frequent product recalls in 2015 have negatively affected our brand. This year,
we have issued safety recalls for at least 1.509 million vehicles due to defective airbags. Additional recalls were
issued in 2015 for more than 1.038 million vehicles in the Ford Fusion, Flex, F150, Fiesta, Lincoln MKS, MKT, and
MKZ lines for a variety of issues ranging from an upper I-shaft riveted improperly, to a spring controlling the
interior door handles. (MarketLine, 2015). We are concerned about production recalls because our forecast does not
take into account recalled automobiles and how this may affect our sales. A key strategy for the company to pursue
moving forward would be to diligently track the source of product recall problems, and how this may impact sales
over time.
Our recommendations of a two-tiered pricing strategy, leveraging analytics capability to build a focus on quality in
the supply chain, and tracking the impact of product recalls on future sales will ensure Ford’s legacy as a major
player in the auto industry.
V. Emerging Technology
A new type of technology that is emerging has the potential to drastically change consumer demand for automobiles
by changing consumer behavior and even the notion of car ownership. Driverless cars, also known as autonomous
vehicles, are robotic vehicles that are designed to travel between destinations without a human operator (“Driverless
Car”, n.d.). Driverless cars use global positioning satellite (GPS) technology, advanced sensors, and artificial
intelligence to operate a motor vehicle (Pullen, 2015). Vehicle automation technology exists on a spectrum from no
automation to full automation, with no human operator required. Ford is currently working on developing a line of
Ford Fusion hybrids that will be fully operated by the vehicle, with optional driver operation (Davies, 2015). Ford’s
competitors in the market for self-driving cars include GM and other automobile companies, Google, Apple, and
Uber (Gibbs, 2015).
Driverless cars have a huge potential to shift consumer demand for automobiles, according to recent reports. While
it will take time for driverless cars to enter the market, driverless cars have the ability to transform consumer
demand in the automobile industry just like the invention of the Model T in the early 20th century. Ford and other
major automobile companies are expected to introduce this technology in a phased approach, with features of this
technology being introduced in cars in the next 3-5 years. These features are expected to lead to limited vehicle
automation, with the initial line of vehicles to aid in highway navigation, rush hour traffic, and other similar tasks
(“Self-Driving Cars Will Make Us Want Fewer Cars”, 2015). Consumer demand for these features should increase
because of the benefits that consumers will gain from these technologies. For example, if a consumer’s vehicle has
the ability to navigate rush hour traffic without the person being attentive, this person is free to engage in other
productive activities such as work-related activities, leisure, or other personal activities during a weekly commute.
Moreover, these types of technology should also cut down on accident rates for consumers given that human
operator error is one of the highest causes of automobile accidents, which would also spur consumer demand given
the importance that many consumers place on automobile safety (Francis, 2015). According to the National
Highway Traffic Safety Administration, 93% of the estimated 6 million crashes in 2010 are attributable to human
error (Silberg & Wallace, 2012). Moreover, traffic accidents cost the American economy an estimated $299.5 billion
dollars annually (Silberg & Wallace, 2012). We recommend that Ford should continue to pursue and develop
automated technologies in cars, especially given the competitive pressures that they will face from other automobile
companies, consumers, Google, Apple, and Uber.
However, driverless cars have the ability to shift consumer behavior in the long-run in a negative way for Ford. A
recent study by Barclays Capital estimates that U.S. automobile sales could plummet up to 40%, and car ownership
could be reduced by up to 50% in the next 20 years as driverless cars become dominant on the roads (Naughton,
10. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
10
2015). Many industry analysts expect driverless cars to fundamentally change consumer behavior and the notion of
car ownership. Driverless cars are expected to increase the utilization of cars and consumer behavior. For example,
many industry analysts predict that some consumers may opt out of car ownership due to the creation of a shared
autonomous vehicles market, especially among younger demographics. Similar to Uber, many analysts envision a
“robotic taxi fleet” whereby consumers would order a driverless car when needed (Naughton, 2015). Many analysts
predict that when driverless cars are fully available, many households will cut down on the number of cars owned by
each individual household. Thus, analysts expect aggregate demand for cars to be reduced for two reasons: 1)
reduction in the number of cars per each household; and 2) reduction in number of car purchasers. However, there
are other analysts who predict that there will still be a market for multiple car households, especially in more rural
areas (Naughton, 2015).
What can Ford do to remain competitive in this emerging market? First of all, we recommend continued investment
by Ford into driverless car technologies, as it will help the company remain competitive in this emerging market
area. Second, paying attention to consumer demand and consumer feedback about desired car features and
technologies will allow Ford to get constant feedback about engaging consumers in product design. Marketing
research suggests that with truly innovative products, only a small percentage of people adopt new products right
away before a product becomes mainstream (Hollenberg, 2014). Recent research suggests that millennials and
digital natives are more likely to adopt to this technology over older generations (Silberg & Wallace, 2012).
Moreover, because the selling price for driverless cars are likely to be higher in the beginning, Ford should target its
products to the right consumer segment. Ford will need to pay attention to the pricing of self-driving cars and the
costs of the technologies employed as some of these technologies cost tens of thousands of dollars while consumers
are willing to pay around $3,000 for autonomous driving technologies (Silberg & Wallace, 2012). Ford will need to
strike a balance in pricing any developed self-driving cars to ensure that they are priced high enough to make a
profit while still ensuring that consumers will be willing to purchase vehicles at this price. Finally, Ford should
target consumers in densely populated markets where self-driving cars are likely to have bigger consumer benefits.
Recent research suggests that consumers in densely populated markets may be more likely to adopt to this
technology and realize the greatest benefits (in reduced congestion, improved infrastructure, and other benefits)
(Silberg & Wallace, 2012). Taking these proactive actions will allow Ford to remain competitive in this emerging
market.
12. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
12
Unit
Retail
Obs Sales Fit Resid Std Resid
35 3736.6 4258.8 -522.2 -2.14 R
48 4357.6 3430.6 927.0 3.92 R
51 4453.8 3950.8 503.0 2.04 R
76 2469.6 3064.0 -594.4 -2.53 R
78 2598.8 3141.8 -543.0 -2.40 R
R Large residual
Residual Plots for Motor Vehicle Unit Retail Sales
13. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
13
Appendix 2: Graph of Predicted vs. Actual U.S. Vehicle Sales
14. Ford Automobile Multiple Variable Regression Team Report
Economic Analysis & Insights
Team 15 (Isha Mehta, Seth Harris, Lamya Barazi, Tony Garcia, and Phillip Pless)
December 5, 2015
14
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