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Strategic Report for
Ford Motor Company
Rhett Dornbach-Bender
Bill Slade
Joe Thorpe
April 20, 2009
Ford Motor Company (NYSE: F)
April 20, 2009 2
Table of Contents
Executive Summary .......................................................................................................................... 3
Company Overview ........................................................................................................................... 4
History ............................................................................................................................................... 4
Business Model and Market Overview ......................................................................................... 5
Competitive Analysis ........................................................................................................................ 7
Internal Rivalry ................................................................................................................................. 7
Supplier Power ................................................................................................................................. 9
Buyer Power ..................................................................................................................................... 9
Entry and Exit ................................................................................................................................ 10
Substitutes ....................................................................................................................................... 11
Complements ................................................................................................................................. 12
SWOT ................................................................................................................................................. 13
Strengths ......................................................................................................................................... 13
Weaknesses ..................................................................................................................................... 13
Opportunities ................................................................................................................................. 14
Threats............................................................................................................................................. 14
Financial Analysis ........................................................................................................................... 15
Overview ......................................................................................................................................... 15
Profitability and Growth .............................................................................................................. 16
Liquidity and Solvency .................................................................................................................. 18
Strategic Recommendations ........................................................................................................ 20
Divest Volvo .................................................................................................................................. 21
Factory and Supply Chain Management .................................................................................... 22
Prepare for Liquidation of Chrysler and/or Bankruptcy of GM ........................................... 23
Product Differentiation ................................................................................................................ 25
Shift Production to Mexico and Eastern Europe ..................................................................... 26
Expand Market Share in China and India .................................................................................. 27
References ......................................................................................................................................... 28
Ford Motor Company (NYSE: F)
April 20, 2009 3
Company Overview
History
Ford Motor Company was founded in 1903 by Henry Ford and has continuously remained
under family ownership since this time. The company developed and implemented assembly
line production by the release of the Model T in 1909, and produced planes and vehicles for
the Allies in World War II. Ford has operated internationally since 1904, when it opened a
branch in Canada to gain access to Commonwealth markets. For the first half of the 21st
Century, Ford remained the dominant car manufacturer within the market it had effectively
created. In 1956, Toyota exported its first automobile to the United States, and began
acquiring market share. In hindsight this was a turning point in the U.S. market, and as the
21st Century drew to a close Ford faced declining market share and had difficulty remaining
competitive in the global marketplace. Ford was particularly inhibited by substantial legacy
Ford Motor Company (NYSE: F)
Business Model and Market Overview
Ford Motor Company currently employs approximately 213,000 workers worldwide and
markets vehicles under four primary brands: Ford, Lincoln, Mercury, and Volvo. The firm is
divided into two departments, Automotive and Financial Services. Ford Credit offers
Ford Motor Company (NYSE: F)

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Ford motor company

  • 1. Strategic Report for Ford Motor Company Rhett Dornbach-Bender Bill Slade Joe Thorpe April 20, 2009 Ford Motor Company (NYSE: F) April 20, 2009 2 Table of Contents Executive Summary .......................................................................................................................... 3 Company Overview ........................................................................................................................... 4 History ............................................................................................................................................... 4 Business Model and Market Overview ......................................................................................... 5 Competitive Analysis ........................................................................................................................ 7 Internal Rivalry ................................................................................................................................. 7 Supplier Power ................................................................................................................................. 9 Buyer Power ..................................................................................................................................... 9 Entry and Exit ................................................................................................................................ 10 Substitutes ....................................................................................................................................... 11 Complements ................................................................................................................................. 12 SWOT ................................................................................................................................................. 13 Strengths ......................................................................................................................................... 13 Weaknesses ..................................................................................................................................... 13 Opportunities ................................................................................................................................. 14 Threats............................................................................................................................................. 14 Financial Analysis ........................................................................................................................... 15 Overview ......................................................................................................................................... 15 Profitability and Growth .............................................................................................................. 16 Liquidity and Solvency .................................................................................................................. 18 Strategic Recommendations ........................................................................................................ 20 Divest Volvo .................................................................................................................................. 21 Factory and Supply Chain Management .................................................................................... 22 Prepare for Liquidation of Chrysler and/or Bankruptcy of GM ........................................... 23 Product Differentiation ................................................................................................................ 25 Shift Production to Mexico and Eastern Europe ..................................................................... 26 Expand Market Share in China and India .................................................................................. 27 References ......................................................................................................................................... 28 Ford Motor Company (NYSE: F) April 20, 2009 3
  • 2. Company Overview History Ford Motor Company was founded in 1903 by Henry Ford and has continuously remained under family ownership since this time. The company developed and implemented assembly line production by the release of the Model T in 1909, and produced planes and vehicles for the Allies in World War II. Ford has operated internationally since 1904, when it opened a branch in Canada to gain access to Commonwealth markets. For the first half of the 21st Century, Ford remained the dominant car manufacturer within the market it had effectively created. In 1956, Toyota exported its first automobile to the United States, and began acquiring market share. In hindsight this was a turning point in the U.S. market, and as the 21st Century drew to a close Ford faced declining market share and had difficulty remaining competitive in the global marketplace. Ford was particularly inhibited by substantial legacy Ford Motor Company (NYSE: F) Business Model and Market Overview Ford Motor Company currently employs approximately 213,000 workers worldwide and markets vehicles under four primary brands: Ford, Lincoln, Mercury, and Volvo. The firm is divided into two departments, Automotive and Financial Services. Ford Credit offers Ford Motor Company (NYSE: F)