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.

1. “the most important industrial company in the history of United State” Forbes
F: Foster Functional and Technical Excellence O: Own Working Together R: Role
Model Ford Values D: Deliver Results
Ford Motor Company presented by
Mohamad Basreen Bin Ahmad
Ahmad Hanif Bin Mohamad Khidzir
Mohamad Nur Izzat
Mohamad Faidzuan Bin Shazli
Mohamad Hanif Bin Musa

2. HISTORY
• Misconception : Henry Ford invented the automobile.
• He makes automobile available to mass.
• Henry Ford was born in 1863 in Michigan.
• His father hopes him to be a farmer.
• When he was 12 he dreamed about a lighter smaller
version of steam powered train to relieve farmers.
• He studied engineering and then work at Detroit Edison
lighting company.
• 1893 he started focusing on developing his dream car in his
garage.
• 1896 he open the door of his garage and first attempt of his
automobile the quadrocycle.

3. HISTORY
• After that, New Detroit automobile company
hired him.
• He invest his time and energy on race cars.
• In 1903 he startup his car manufacturing ford
motor company.
• Rolls out model A.
• 1906 he buys out all the shares.
• 10 Thousand model T was sold the first year.
• Initial price $850.

4. HISTORY
• 1913 henry ford broke the 200000 cars per year mark.
• He pioneered the moving assembly line.
• Production time 90 minutes per car.
• 1914 the price drops to 450. rolls out 300000 cars
annually.
• January 5th Ford implemented the $5 day. Existing
minimum wage $2.34.
• He cuts from working hours from 10 to 8 hours per day.
• 1924 Ford was 61 and Model T was 16.
• June 15th the 10th millionth model T rolls out.
• With the price of 290 dollars.

5. CORPORATE OFFICER

6. COMPANY BRANDS
• Consist five brands generally being an
affordable brand name catering to a variety of
consumer need and want.
• Sell broad range of automobiles such as
vehicle span cars, trucks and super utility
vehicle (SUVs).

7. COMPANY BRANDS

8. United State’s Automobile Industry Leader
Company 2015 2009
• Toyota Motor Corp 11.60% 16.9%
• Volkswagen AG 11.10% -
• General Motor Co 8.20% 18.8%
• Ford Motor Co 7.60% 13.8%
• Honda Motor Co Limited 5.90% 10.6%

9. ISSUES
• Ford still has $33 billion in debt including
obligation to retirees during 2006.
• Facing $12.6 billion annual loss
• Ford revenue decreased from $172.5 billion in
2007 to $146.3 billion in 2008.
• 40000 workers been layoff and almost 17
plant closed.

10. Ford Motor Company External Assessment :
PESTEL Analysis
 Political Factors - Political agendas weigh as a heavy factor for Ford as environmental
issues are heavily considered when Ford design new vehicles.
 Economic conditions - Recessions, Inflation can severely impact the automotive
industry which can lead to bankruptcy.
 Socio-cultural forces – Automotive firms will always face customer biases on brands
or labels.
 Technological factors - Technological advances help automotive companies produce
vehicles that are more fuel efficient, safer and better
equipped with more accessories such as driver-assist systems.
 Environmental forces - There is an increasing need to reduce pollution levels exerted
on the environment by reducing exhaust emission level
produced by motor vehicles.
 Legal and regulatory forces - Automotive firms are subject to changing labour laws
and union pressures set in place to promote adequate
compensation to appropriate workers.

11. Ford Motor Company External Assessment :
Porter’s 5 Forces Analysis
 Competition from Rival Sellers (Strong) - Competitive pressures are high in the
industry due to rapidly changing
consumer demands.
 Competition from Potential New Entrants (Moderate) - It is relatively difficult for
new potential entrants to enter the market due to heavy industrial and
government regulations.
 Competition from Producers of Substitute Products (Moderate) – Comparable
substitutes for automobiles are readily such as public transportation
 Supplier Bargaining Power (Weak) - Suppliers have low bargaining power due to
low costs associated with industry members
switching to different suppliers
 Customer Bargaining Power (Strong) - Customer bargaining power is high due to
the large number of buyers in the
industry.

12. • Market structure:
Oligopoly
• Largest auto market:
United states – 11 million vehicle in year, 22
firms (2013)
• Big Five:
GM ,Toyota ,Chrysler ,Honda, Ford
COMPETITOR ANALYSIS

13. CHRYSLER
• Founded by Walter Chrysler on June 6, 1925
• No of employees: 74,700 (2014)
• It sells vehicles worldwide under its
flagship Chrysler brand as well dodge, jeep
etc.
• In 2014, FCA US LLC is the seventh
biggest automaker in the world by production.

14. GM
• Founded on September 16, 1908 by William C.
Durant
• No of employees: 216,000 (2015)
• GM led global sales for 77 consecutive years from
1931 through 2007, longer than any other
automaker.
• GM filed for Chapter 11 bankruptcy in June 2009.
• In 2008, 2009 and 2010, GM has ranked as the
second largest global automaker by sales.

15. TOYOTA
• Started in 1933 as a division of Toyoda Automatic
Loom Works by Kiichiro Toyoda
• No of employees : 338,875
• In 2008, Toyota's sales surpassed General Motors,
making Toyota number one in the world.
• Focused on emphasizing the positive experiences of
ownership and vehicle quality.

16. HONDA
• Founded on 1946 by Soichiro Honda
• No of employees: 198,561 (2014)
• Honda is Japanese public multinational
corporation primarily known as a manufacturer of
automobiles, motorcycles and power equipment.
• Honda became the second-largest Japanese
automobile manufacturer in 2001.
• Honda was the eighth largest automobile
manufacturer in the world behind General
Motors, Volkswagen Group, Toyota, Hyundai Motor
Group, Ford and Nissan in 2011.

17. Big 5 Market Share sources : edmunds.com
GM
16%
FORD
15%
TOYOTA
15%
CHRYSLER
13%
HONDA
8%
OTHERS
33%
Sales

18. Top 5 Sales March 2014 & March 2015
0
50000
100000
150000
200000
250000
300000
GM FORD HONDA TOYOTA CHRYSLE
14-Mar
15-Mar

19. Subsidiaries
FORD: 8 Brands
• Lincoln, Mercury, Mazda, Volvo, Jaguar, Mazda, Land Rover,
Aston Martin
GM :13 Brands
• Buick, Cadillac, Chevrolet, GMC, Holden, Hummer, Pontiac,
Opel, Saab, Saturn, Vauxhall, and Wuling
Toyota : 5 Brands
• Toyota, Lexus, Scion, Daihatsu, Hino
Honda : 2 Brands ( Honda , Acura)
CHRYSLER : 4 Brands (Dodge, Jeep, Mopar , Chrysler)

21. • Mercedes scored the highest overall score at 9.35
and GM scored the lowest at 8.3.
• The heaviest weighted factor was brand image/
reputation with a weight of 20%
• Ford placed second highest among the other rivals
with an overall score of 9.1 proving its
wellroundedness in all areas.

22. Core Competence
Innovation in technology, safety,
design
Innovation in service and technology
TQM (Total Quality Management)
High valued, technically advanced
cars, and focuses in development of
engine car
Designing and manufacturing
engines

23. Ford Motor Company Internal Assessment :
Current Strategy
Vision - In 2007, Ford embraced a new vision that
embraces a “One Ford” initiative that is built upon
“One Team, One Plan and One Goal.”
Mission - “Our One Ford plan aligns our efforts
toward a common definition of success: having One
Team, One Plan and One Goal for an exciting, viable
Ford that delivers profitable growth for all.”

24. Business Plan
• Aggressively restructure to operate profitably at the current demand and
changing model mix.
• Accelerate development of new products our customers want and value.
• Finance our plan and improve our balance sheet.
• Work together effectively as one team.
Main Goal
• Great Products, a full family of vehicles – small, medium and large; cars,
utilities and trucks – with best-in-class quality, fuel efficiency, safety and
smart design.
• Strong Business, based on a balanced portfolio of products and global
presence.
• Better World, accomplished through our sustainability strategy.

26. PROFITABILITY
1) Gross Profit Margin
• (Revenue- COGS) / Revenue
• 2009 : -3.23% because of recession on 2008
• 2010 : 4.85%
• 2011 : 5.56%
• 2012 : 4.4%
• 2013 : 3.7%

27. 2) Net Profit Margin
• Net Income / Sales Revenue
• 2.61% in 2009
• 5.5% in 2010
• 14.91% in 2011
• 4.24% in 2012
• 4.87% in 2013

28. 3) Net Return On Asset
• Net Income / Average Total Asset
• 1.39% in 2009
• 3.8% in 2010
• 11.33% in 2011
• 3.04% in 2012
• 3.54% in 2013

29. LIQUIDITY
1) Current Ratio
• Current Asset / Current Liabilities
• Current ratios for the Ford Motor Company range
from a low of 2.35 in 2010 to a high of 2.91 in
2013.
• Year-to-year average from 2009-2013 for solvency
of assets is 2.58. Means, Ford holds an average of
2.58 times its current liabilities in current assets if
the assets would have to be liquidated.

30. 2) Working Capital
• Current Asset – Current Liabilities
• Ford’s working capital has been steadily increasing
from 81,302 in 2010 to 114,317 in 2013.
• The steady incline represents that current
strategic operations are contributing to a future
that holds promise for profit growth and
expansionary capabilities.

31. LEVERAGE
1) Total Debt-To-Asset Ratio
• Total Liabilities / Total Asset
• The Ford Motor Company reported a debt-to-
asset ratio high of 1.03 in 2009 to a low of 0.87 in
2013.
• These figures represent how the company is
moving towards a positive direction for growth by
holding onto less debt relative to its assets from
the 2009-2013

32. Ford Motor Company Internal Assessment :
SWOT Analysis
 Strengths - Strong Brand Recognition and position in North American
market
- Forward-thinking approach to environmental responsibility
- Significant growth in China
- One Ford initiative
 Weaknesses - Weak performance in Europe
- High Cost Structure
 Opportunities - Increasing fuel prices
- More Strict Emission Standards
- Strategic Alliances with Other Automotive Manufacturers
 Threats - Decreasing Fuel Prices
- Strong Market Competition
- Exchange rate Fluctuations
- Increase in Raw Material Prices

33. Ford Motor Company Internal Assessment :
Value Chain Analysis
 Product R&D, technology and systems development - Product research
and development play integral role as part of Ford’s Value Chain
 Supply chain management - Raw material extraction plays a vital role in
Ford’s value chain as it pertains to their objective in minimizing global
environmental impact and surrounding communities.
 Operations - Ford plant manufacturing accounts for the majority of where
value is added along the Value Chain
 Distribution - Logistics/ Transportation include the transport of supplier
parts to Ford manufacturing facilities and finished products from
manufacturing plants to dealerships
 Sales and marketing - In 2013, The Ford Motor Company sold more than
6.33 million vehicles globally and had 11,722 Ford and Lincoln dealerships.

34. Ford Motor Company : PERFORMANCE
PROGRESS
• It is reported that in 2013 full-year pre-tax profit of $8.6
billion, driven by the highest Automotive pre-tax profit in
more than a decade and continued solid profit from Ford
Credit.
• To support their aggressive growth strategy and meet demand
for the vehicles, Ford is adding jobs in several key regions –
11,000 in the U.S. and Asia combined in 2014 – and building
new facilities.
• In 2015, Ford will launch 23 new or significantly refreshed
vehicles to customers around the world – the most in a single
year in more than a century.