Strategic management

Group Members
Ly Sen Tam 332939
Bui Minh Nguyet 295800
Tran Thi Ngoc Quy 332970
Pham Thi Kim Ngan 332962
Truong Thi Thu Thao 332974
Nguyen Thai Khanh Ngoc 332950
FORD MOTOR
COMPANY

EXECUTIVE SUMMARY
Missionstatement: “Ford motor company is a worldwide leader in automotive and
automotive – related products and services as well as in newer industries such as
aerospace, communications and financial services. Our mission is to improve
continually our products and services to meet our customer’s needs, allowing us to
prosper as a business and to provide a reasonable return for our stockholders, the
owners of our business”
Visionstatement: “To become the world’s leading consumer company for automotive
products and services”
Existing strategy: Ford business strategy is reflectedin the plan “One Ford” which
was started by CEO Allan Mullaly in 09/2006. The purpose of “One Ford” is helping
the company to expand market share and bring success for Ford across the globe
 “One Ford” is the 4 point strategies
 restructuring the business to maintain profitability
 providing the development of new product
 implementation of policies on financial balance
 improving moral and strength of teamwork
However, the crux of is that it encourage the concentration of labor, positive work in
groups and to direct all of its employees to the common goal of the groups success on
the global market
The result is OF gives communities the most sustainable value, expressed in:

-Good product
-Strong business
-A better world
In addition, Ford Motor always directed all his actions according to slogan that the
company has put out “Go Further”. To do this, the product of Ford cars would have to
be very diverse in terms of price, demand and use to fit consumers globally
EXISTING OBJECTIVES
Target
Global GDP Growth* About 3%
Global Industry Growth* About 3%
Automotive:
-- Revenue and Volume Growth* >5%
-- Operating Margin About 8%
-- Operating-Related Cash Flow Positive
-- Capital Spending About $9 billion
Breakeven 2/3 of Volume
Investment Grade Profile “A”
Total Shareholder Return Top Quartile Of Peer Group
Compound annual growth rate from 2014 through 2020
http://www.streetinsider.com/Corporate+News/Ford+Motor+%28F%29+Upda
tes+on+Growth+Objectives,+Guidance+at+Investor+Day/9868432.htm

PRODUCTS
Being born from the factory specializing in the repair trucks, Ford's main production
areas are operations and sales of motor vehicles and parts. In addition to financial
services related to the car, car rental and other services directly related to the car. It has
a large-scale production lines and manufacturing methods according to. And is the first
to use automated assembly line in the world, because the newly formed Ford quickly
capture the market, by the end of 1913, Ford is 50% of vehicles in the US market, the
first half of 1918, all US automotive suppliers are Ford Model T in 1999, Ford was
named one of car manufacturers, triggering the biggest profit. As the fourth leading
automotive manufacturers Ford and Toyota, General Motors and Volkswagen AG
product line of Ford divide into four sections: cars (Fiesta, Mustang, C-Max, Focus,
Fusion, Taurus) Crossovers and SUVs (Escape, Edge, Transit Connect, Explorer,
Expendition), Trucks and Vans (F-150, Transit Connect, Transit, Super Duty), and the
last one is Lincoln (luxury cars) includes Navigator, MKC, MKZ, All-New Lincoln
MKX) In the report late last year, Ford said, HDA total production vehicles soldin 2014
to 220,671 last month. This figure marks a 1% increase over December 2013 sales and
brings the company’s full-year U.S. auto sales to 2,480,942 units sold (a figure that is
flat compared to full-year 2013 sales).

COMPETITION AND MARKET CONDITIONS CURRENTLY
FACED BY THE COMPANY
The automotive industry is noted for its intense rivalry, and within the United States
market Ford faces five major competitors: GM, Toyota, Chrysler, Honda, and Nissan.
Toyota, Honda, and Nissan have grown in market share largely as a result of their ability
to deliver better products at lower prices, particularly for more fuel efficient smaller
vehicles. Because of lower labor costs and greater efficiency(typically measured by the
number of hours needed to produce each vehicle), these companies have been able to
turn a profit with smaller vehicles. In the past, Ford has differentiated itself by focusing
on more profitable SUV and truck lines while often losing money on its smaller
vehicles. Given changing demand, this strategy is no longer feasible. Within Europe,
Ford’s main competitors are Volkswagen, PSA (Peugeot), Renault, GM, and Fiat.
Volkswagen is the dominant producer in the region, and has seen strong growth in the
past four years. Ford experienced much greater success at turning a profit on small
vehicles in the region, and the ‘One Ford’ strategy intends to take advantage of this.
Overall, Ford has managed to remain competitive in Europe by designing cars which
appeal to European tastes and by increasing the quality ratings of its vehicles. This has
led to stable market share and profits over the past three years, and is demonstrative of
Ford’s ability to achieve success with smaller vehicles.

RECOMMENDATIONS FOR THE COMPANY
 Focus on target markets: Clearly the current 4 seats form of Ford's hard to
compete with Japanese automakers, and Korean in the market. Therefore, Ford
has to focus on the preferredproduct line of intelligent so that concentrate on the
improvement and development of products, thereby reducing the average cost,
offer more attractive prices to consumers .in the current competitive
environment, and with the development of science technology, technical barriers
as well as the quality is not so much as before. Besides Ford should invest more
in such populous countries China, India for its large population will mean more
market share. If we capture the tastes of the people in these country and make
them like our products, we will have a large number of goods to be consumed.
 Ford is one of the largest automakers over the world. To maintain this position,
Ford needs to keep pace with the tastes and preferences of consumers. In order
words, Ford has to analyze and study the auto market frequently to know the
general trend to avoid falling behind rivals. Moreover, it is better for Ford to
apply the cutting-edge technologies in producing products in order to bring the
best possible cars to the customers. In addition, to get more public attention and
make Ford’s image better, they are supposed to be responsible for societies,
communities and environments. Head executives of Ford should have wide
vision and build obtainable clear objectives and practical applicable strategies so
that the company can do business rightly.

 Maybe Ford can deal with risk. Ford should carefully prepare for the bankruptcy.
Ford should exploit the chance in China and apply capital to show up its sales
and market share in China because in the future, maybe china will get in to US
market. Moreover, Ford should have some strategies with the ultimate aim is to
be the best success in North America and show the best product to the world.
Customers would like to choose Ford’s products if Ford know how to attract
customers by marketing strategies. Ford has to develop an electrificationstrategy
like other products of competitor instead of the C02 released from its vehicle and
make cars engines more efficient.
 Ford should focus and invest much for design phase to attract more customers.
Moreover, they should strongly boost business operation in Europe and Asia
market such as China, Japan, invest more for marketing campaign such as
employing good designers, launching unique and innovative commercial, and
utilizing the information spread of the Internet. Besides, decreasing the price of
eco-friendly vehicles for more people to be affordable to buy it is essential to
take consideration.
 In a competitive environment with many companies in the world, to gain market
share is actually very difficult one. Besides the production of popular models
that suit the demands of the consumer, should produce more Ford cars and super
cheap for consumers to have more choices. Applying advanced technology to

produce supercar performance with beautiful design. For ultra-cheap cars, Ford
will also need to pay attention to quality and design more, customers enjoyed the
affordable medium car line but still beautiful and elegant. In addition, the charity
is also useful for market expansion and polish name for Ford. For example,
opening the car donation campaign for the homeless or poor. Organizing
charitable activities to the impoverished areas of the world as countries in Africa.
Car auction to raise funds for the disaster areas in the world.
 Ford should actively do more Marketing campaigns on social networks,
communication channels. In addition, giving a careful consideration to research
and develop a novel vehicle, feature for the market that meets and exceeds
customer expectation. A product line with absolutely new engine, features, and
still satisfy Ford’s criteria - quality, green, safe and smart is a golden opportunity
to create a difference with business rivals.
ETHICS
Because Ford recognizes the importance of gaining consumers’ trust and respect, it
strongly believes that the consumer is a major priority. It participates and sponsors
many events to help its local communities. Locally, every Ford dealership
individually does its own share to help out its community; however, on a national
level Ford has a few major events that it initiates. One of the major events is The
Ford Partnership for Advanced Studies, or Ford PAS. This is an award-winning

academic program that brings together high school students, teachers, employers,
and community leaders to help better educate today’s youth by offering freetutoring
to all who participate. The 9 goal of the program is to prepare young people for
higher education and career development, as well as provide them with the
knowledge to successfully participate in the global community. This program is
currently operating within 600 schools in 27 states. Another way Ford gives back to
its community is through its Ford Volunteer Corps. The Ford Volunteer Corps are a
special group of volunteers who rebuild homes in poverty-stricken areas. Every year
Ford holds a Global Day of Caring in which thousands of volunteers engage in
building projects in communities throughout the world. Ford also spreads awareness
of the company and its brand with Ford Community Day. Ford Community Day is
a fair that offers free food and games while inviting community members to learn
more about what it has to offer.
VALUES
 People: Our people are the source of our strength. They provide our corporate
intelligence and determine our reputation and vitality. Involvement and teamwork
are our core human values.
 Products: Our products are the end result of our efforts, and they should be the
best in serving our customers worldwide. As our products are viewed, so are we
viewed.

 Profits: Profits are the ultimate measure of how efficiently we provide
customers with the best products for their needs. Profits are required to survive
and grow.
RECOMMENDATIONS FOR MODIFIED VISION AND MISSION
STATEMENTS FOR THE COMPANY
Vision Statement: “Vision of Ford is to be the leading customer Company for
automotive products and services”, so the vision statement is quite well organized as it
highlights the products and offerings made by the company. It also a highlight the
company is growth oriented and wants to be the leading company in the automotive
industry. In addition, Ford has more competitors about the style and trend fashion in
product line, Ford should do something different to become stranger and innovate, so
the vision of Ford Company should be: “Following the trend style to forward new
choices and expand the products and service to customers”.
MissionStatement: “Being a global family with a heritage passionately committed to
providing personal mobility for people around the world…” The mission of Ford is
focusing on the customer, market and concern for public image. A good mission
statement reveals an organization’s customers, products and services, market,
technology, concern for survival, growth, and profitability, philosophy, self-concept,
concern for public image, and concern for employees. These nine basic components

serve as a practical framework for mission statement. Vision and mission statements
are essential tools for strategists so that can help company develop and take the caring
of customers. So we would like to choose the mission for Ford Company is: “Trying to
produce new items with innovation, passion and quality in product line to provide for
everyone. Moreover, we try to create more cars which are a history mock into the
world”.
AN ANALYSIS OF THE RESULTS OF EACH OF THE
FOREGOING MATRICES
Refers to Exhibit 1 Strengths, Weaknesses, Opportunities, Threats (SWOT)
Matrix, Although Ford Auto has a number of weaknesses and threats, their strengths
and opportunities take dominant part in the matrix which provides Ford many powerful
advantages to deal with weaknesses and threats. SO strategies is combination of
Strengths and Opportunities including plans to determine and actively create more
opportunities and consolidate strengths; WO strategies formed from Weaknesses and
Opportunities propose strategies to decrease weaknesses and see weaknesses as further
opportunities develop company; ST strategies provides ways to utilize strengths inorder
to eliminate threats by widen line of business; and WT strategies provide orientations
to remove both weaknesses and threads at the same time. As we can see, there are so
many threads in the SWOT analysis while strengths and opportunities are less but
powerful. So that it is easy for us to find solution for potential intimidations. Although

there is no hardship that Ford, a corporationof international stature, cannot handle, risks
are always exist in business world and may harm them anytime. The SWOT matrix of
our group supports some ideas may be useful for them to apply in their strategic
management. They can add them to their plan to recover lost, improve productivity and
strongly compete in potential markets.
As we can see in EXHIBIT 2 External Factor Evaluation (EFE) Matrix, the total
scoreis 2.39. This is an average scorethat Ford Company achieved in opportunities and
threats. In the opportunities, Ford Motor demand and trend for hybrid, it is the high
expectation of customers, some customers who want to change style or follow the
fashion trend like some other brands. Demand of fuel efficient cars and alliance with
British petroleum to develop hydrogen power, these can make the car engines can
improve better. Especially, Ford’s S-max car of the year in Europe in 2006, that was a
new product line get into the car market and Ford achieved an vital point with the total
score is 1.19 . About the threats: excessive sales to rental car agencies, this point is
affecting the brand image and resale values, so customers can depend on rental car and
Ford can take some disadvantaged. Co2 emission and increasing cost of raw material
are still a big problem for general vehicles. Customers are aware of that cars release
large quantities of CO2 and negatively affect the environment. In additions, Ford has to
face with some competitorslike Honda, Toyota, or Nissan. And Chinese auto firms will
gain soon to enter in the US market, from these problems Ford have to take the good
strategies and plants in the future more and more.

According to EXHIBIT 3 Internal Factor Evaluation (IFE) Matrix, The total weight
score of 2.75 of Ford Auto’s internal factors indicates a kind of weak internal position
that gains Ford many great advantages. Because Ford Auto is an international
corporation and a giant in the industry, most of their strengths are rated 4 (major) while
most of weaknesses are rated 2 (minor). As a result, the matrix reveals Ford is be able
to decrease weaknesses to zero. However, Ford still needs to try more to improve their
weaknesses which is also one of the core factors in strategic management to compete
with many competitorsfrom Asia (Toyota, Mitsubishi, Daewoo,…) and Europe (BMW,
Das Auto, Audi,…). With many operations expanded in enormous geographical areas
combines a long lasting history in the auto industry, Ford certainly has more than
sufficient capabilities to win its competitors. The worth noticeable problem of it is the
poor product life cycle and the lack of innovative design structures. This problem can
be fixed by their high employee productivity. The more attractive care policy, the more
people (specially, talent ones) will enlist Ford giant and the more creative, innovative
and unique products come into being existence that may gain them a huge number of
customers. Obviously, a huge number of customers bring about a massive profit which
is the core feature for Ford to solve every problem from stock price, obligation to
competition. Overall, 2.75 is still a fine number showing that Ford’s management will
have plenty of effective business strategies in future in case weaknesses are generated.
Based on EXHIBIT 4 Competitive Profile Matrix(CPM), Ford is appreciated in the
use of hybrid and fuel efficient. Moreover, competitive prices affordable of consumers
helped Ford owns a highly competitive position. However, since the vehicle unstable

quality, customer loyalty for the Ford reduced. That has led to a lower market share as
well as the financial situation of Ford. Meanwhile, General Motors and Daimler
Chrysler are focusing on the quality of their products, the Ford focus on design and fuel.
Thus, the competitive profile matrix of Ford is not very good.
Refers to EXHIBIT 5 TRENDING, FORECASTING ON FINANCIAL DATA,
there will be an upward trend in stockprices, and R Squared is nearly 0.7 (0.66677), so
it can be acceptable reference. In the period of 5 years (2010-2014), Ford's stock prices
experienced the lowest price with $9.35. Luckily, its stock prices had a recover.
According to the prediction, stock prices will reach at $17.82 in 2015 and $19.34 in
2016. Generally, the price of stock implies the healthy status of a corporation. In other
words, if the share price increases, it can be concluded that the corporation works well.
As a result, the company can take advantage in borrowing bigger obligations. It is
obvious that higher share prices bring many potential benefits. In order to make the
prediction come real, Ford need to have practical and applicable strategies considered
to fields of finances, products, services, customers, and shareholders.
From EXHIBIT 6 Strategic Position and Action Evaluation (SPACE) Matrix, it
demonstrates the number in x-axis and y-axis so that Ford Motor should pursue
Quadrant IV (Competitive). In this situation, for the Financial position, each kind have
the same number which include return on asset, leverage, net income, net asset and
return on equity lead to the total score is 2, this is a bad score compare with general
motor. Next, the result of competitor position is a minus number (-3), the market share

just has (-4), product quality, customer loyalty, technological know-how and control
over suppliers and distributors take a good score (-3) in market. Thirdly, stability
position have an average score is (-3) , that is a average number include a bad number
in rate of inflation (-4), technological changes, price elasticity of demand, the bad affect
from competitive pressure is (-5), barrier to entry into the market has a good number is
(-2). Finally is industry position has a good score is 4.6, the highest number is Ease on
entry into the market is 6 and then is growth potential is 5, financial stability, resources
utilization and profit potential. So, the conclusion is that Ford Motor should take the
strategy is diversification of products and that reproduce the type and model of product
development like the bestseller product line and follow the fashion trend like some car
lines of competitors. Moreover, Ford Company needs to seek strategies to attract
consumers from the competitor.
From the above analysis all the matrices, we suggest three alternatives in the EXHIBIT
7 Quantitative Strategic Planning Matrix (QSPM). As in grand strategy ford motor
fall on second quadrant its means that the firm should first go for intensive strategy.
Hence the best selected alternative is production of fuel efficient car, which is an
intensive strategy.
Based on EXHIBIT 8 Grand Strategy Matrix, Ford crashed in the 2nd quadrant,
meaning that it faced one huge loss, and it is also affected by new business in the
automotive industry. Therefore, Ford's competitive position is weakened while the
growth of the market is growing fast. The competition becomes more intense as the

expectations of consumers is increasing, besides, natural gas and raw material prices
also increased so it made difficult for business which often produce by new
production line. There are some appropriate strategies that Ford should take
consideration:
*) Market penetration: use the strategy to penetrate global markets
- funding for major events related to entertainment, sports, ...
- Enhanced advertising on television, radio and on the street.
*) Product development:
- Using materials environmentally friendly
*) Horizontal integration:
- Use the strengths of the company and combined with the strengths of the
competitors company to gain a competitive advantages.

RECOMMENDATIONS –BOTH LONG TERM OBJECTIVES AND
SPECIFIC STRATEGY AND HOW TO IMPLEMENT
Next 3 years (2016-2018)
Long Term Objectives Specific Strategies
Increase Ford's position in
the U.S automobile market
Market penetration: refers to EXHIBIT 9, Ford ranked the
third position in auto market share in America in 2014. To
achieve the leading position in the market share in America, Ford
Motor has to do aggressive marketing such as spending much
more money on advertising (onTV, Internet, social network etc.),
offering big promotions for products with slow sales such as
Focus and C-Max), or hiring experts in auto industry to evaluate
the best-selling products in order to get more public attention.
Increase Ford's
profits/sales
Product development:
1/ Increase much more research and development expenditures
to improve next products (safer, more fuel saving, more attractive
appearance etc.). The better cars, the more customers are willing
to buy.
2/ Develop the cheap cars to compete with rival cars. Ford have
already released Fiesta S sedan $14,790- one of the 10 cheapest
car in the U.S. However, a cheap car does not come with good
quality in general. As a result, the image of Ford could become

worse. To avoid that, Ford needs serious efforts in research to
create a well-balanced car in stable quality and reasonable price.
If it works, much Ford’s cheap cars will be sold.
Retrenchment: If there is a recessionor depression, or the sales
decreases, Ford has to reduce the number of workers and
showrooms, shut down plants not working in order to save costs
and to avoid heavy loss.
Become a green company  Research and develop in producing vehicles using blends
of biodiesel and ethanol fuel or gasohol or solar energy
 Corporate with scientists to produce hybrid electric
vehicles, plug-in hybrid electric vehicles, battery electric
vehicles, and compressed-air vehicles,
 Replace any part in assembly plant which is old, emit too
much CO2, and consumes too much energy
Continue to exploit potential
markets
China, India and Arab Audi are the potential markets with large
population, emerging rich people. If Ford does business well in
these countries, Ford will gain much revenues and profits. To
make the prediction comes true; Ford should build plants or joint
venture/ partnership with domestic companies in those nations to
make consumers believe that they have a serious and long-term

investment. Building assembly plants and forming cooperative
arrangement with domestic auto parts suppliers one of the ways
to cut import costs and to decrease the price of products. Besides,
Ford also contributes to those national societiesand communities
through creating more jobs for people.
RECOMMENDATIONS FOR ANNUAL OBJECTIVES AND
POLICIES
 Annual objectives:
- Increase global vehicle sales and automotive operating margin
- Increase 5% of market share per year
- Increase up to 15% of total revenue and decrease 10% cost for inventory
- Expand new markets and production, incessantly research taste and preferences
of consumers in that market in order to improve production to suit each
different regions
- Create innovations will gain diverse customers from ordinary customers to
luxury customers (potential customers) in the world
- Gather customer feedback and apply it to the creation of better products and
services to meet customer needs
- Set a standard labor reform

- Reduce emission, water consumption for the long run.
 Annual policies:
- Fix a price based on consumer pocket: Ford is ready for reducing prices until
products will be sold a lot. A strategy is to make a good profit on selling at
lower prices will bring the need for products to reach the global level.
- Materials and human resources: just buy enough raw materials to produce.
Thus, it will save a lot of money, fast payback and reduce inventories. Besides,
the high wages paid workers also help reduce product prices. Because of the
high salary, workers totally focus on their work without having to worry too
much for the other issues, the productivity of labor is higher. Since then,
production costs will also reduce.
- Reduce prices but do not reduce the quality of the products: Ford does not
reduce salary or raises the price just to get profit.
- Reward: Reward for employees who achieve high performance, and have lots
of contribution to work
- Training: Every year, Ford Motor will have a special training for employees to
enhance their skills with strict safety standards of Ford
- Corporate Social Responsibilities: Contribute to environmental improvement
(environmental action plan like promoting reuse and recycling to make
effective use of limited resources for the future); support community activities
(focuses on community life, education, and safety)
- Collaboration with suppliers: Support for supplier activities

RECOMMENDATIONS ON PROCEDURES FOR STRATEGY
REVIEW AND EVALUATION
Step 1: Reviewing the underlying bases of Ford Motor strategy
- Prepare revised Internal Factor Evaluation (IFE) Matrix: Ford should
concentrate on the changes in the management, marketing, production,
operation, Research & Development
- Compare revised to existing Internal Factor Evaluation (IFE) Matrix
- Prepare revised External Factor Evaluation (EFE) Matrix
- Compare revised to existing External Factor Evaluation (EFE) Matrix
Step 2: Measuring Ford’s Performance
- Compare expected results to actual results, evaluate individual performance,
assess progress toward meeting stated objectives. Besides, Ford need to evaluate
the financial ratios through comparing Ford’s performance to competitors,
industry averages.
Step 3: Taking corrective actions
CONCLUSION
If Ford Motor Company adopts all our group’s recommendations, they will have many
benefits:

 Ford will have possible ability to overcome economic crisis (recession/
depression), to avoid suffer heavy loss in the future.
 Ford’s market share will increase in the U.S and spread out in international
market such as China, India etc.
 It is possible for Ford to pass General Motor and become the U.S leading
automaker.
 It is clear that when producing eco-friendly products, Ford can win the hearts of
the public and meet higher customer (environmentalists) demand. As a result,
the image of Ford could be better.
 They can improve effectively their weaknesses and strengthen their strengths.
 Decreasing price reasonably helps more consumers afford its products.
Consequently, Ford will gain more sales revenues.
 They can survive in long-term intense competition with rivals.
 It is expected that Ford will increase 5% in profits in 2015 than that in 2014 (net
income is $3.19 billion).
 All recommendations could help Ford maintain their mission and vision
statements.

APPENDIX
EXHIBIT 1 Strengths, Weaknesses,Opportunities, Threats (SWOT)
Matrix
Strengths Weaknesses
1. Debt and pension
obligations reduced in
recent years
2. Ford Credit remains a
competitive advantage for
the automaker
3. Ford has been
producing cars for over
100 years
4. Strong position in US
market
5. Ford is known widely
in the world and chose for
its long track record of
producing quality cars
6. Brands and models of
cars to appeal to every
kind of demographic
group
7. Ford has very high
employee productivity
1. Having more liability
than assets
2. Stock prices have seen
a huge drop in recent
years
3. With the emergence of
Japanese and European
manufacturers, the sales of
Ford Motors have fallen
down
4. Poor product life cycle
5. Does not concentrate
and invest much for
design phase leading to
the lack of innovative
design structures
6. Expanding operations
in diversified geographical
areas causes the low
productivity for missing
focus on lines
performance
Opportunities SO Strategies WO Strategies
1. Demand and trend for
hybrid energy vehicles
2. China, a vibrant market
for automotive industry
3. Reduction of General
Motor sales due to
perceived lower quality
and fuel efficiency
4. Demand of fuel
efficient cars.
5. Alliance with the
British petroleum to
develop hydrogen power
6. High expectations of
customers
1. Penetrate to China
market: open 100
showrooms in 2016, push
up marketing strategy (S2,
S5, S6, O2, O6)
2. Make attractive small
vehicles that could deliver
profits, particularly in a
high fuel price
environment (S4, O3, O4)
1. Focus on the most
potential market then to
the other ones (W6, O6)
2. Launch hydrogen fuel
cells vehicles to push sales
(W3, O5)
3. Make vehicles that are
exciting in design, both
exterior and interior (W5,
O2, O6)
Threats ST Strategies WT Strategies

1. Excessive sales to rental
car agencies affecting the
brand image and resale
values
2. Strict standard of CO2
emission result in
increasing the
manufacturing cost to
produce engines
3. New entrants: Honda,
Toyota and Nissan result
in tough competition
4. Currency rate
fluctuation and increased
cost of raw materials
effect the production and
sales
5. Car financing sector
facing financial hardship
due to increasing
mortgage rates
6. Lack of desired vehicles
available on the dealer’s
lot
7. Rising cost of health
care and pension will
affect the future
investment
8. Toyota selling vehicles
through E-commerce
9. Chinese auto firms
gaining strength and soon
to enter in the US market
1. Produce more
economical vehicles that
are affordable to every
kind of customers (S6,
T1, T6)
2. Improve costs to
competitive levels through
reduced complexity and
global purchasing scale
(S3, T3, T9)
3. Utilize new health
information technologies
(S1, S7, T7)
4. Penetrate to China
market: open 100
showrooms in 2016, push
up marketing strategy (S2,
S6, T9)
1. Stabilize the cost of raw
materials by promoting
production in stable
currency market (W2, W3,
T4)
2. Renovate and improve
operation in US market to
compete competitors (W3,
T3, T8, T9)
EXHIBIT 2 External FactorEvaluation (EFE)Matrix
Opportunities:
Weights Ratings
Weighted
score
Demand and trend for hybrid energy vehicles 0.08 3 0.24
China, a vibrant market for automotive industry 0.07 3 0.21

EXHIBIT 3 Internal FactorEvaluation(IFE) Matrix
Reduction of General Motor sales due to perceived lower quality and
fuel efficiency 0.05 2 0.1
Demand of fuel efficient cars 0.07 3 0.21
Alliance with the British petroleum to develop hydrogen power 0.07 3 0.21
High expectations of customers 0.05 2 0.1
Ford’s “S-max” Car of the year in Europe in 2006 0.06 2 0.12
Total: 1.19
Threạts:
Excessive sales to rental car agencies affecting the brand image and
resale values 0.05 3 0.15
Strict standard of co2 emission result in increasing the manufacturing
cost to produce engines 0.07 2 0.14
New entrants: Honda, Toyota and Nissan result in tough competition 0.08 3 0.21
Currency rate fluctuation and increased cost of raw materials effect
the production and sales 0.08 3 0.24
Car financing sector facing financial hardship due to increasing
mortgage rates 0.05 2 0.1
Lack of desired vehicles available on the dealer’s lot 0.06 2 0.12
Rising cost of health care and pension will affect the future
investment 0.05 1 0.05
Toyota selling vehicles through E-commerce ( Gazoo.com) 0.05 2 0.1
Chinese auto firms gaining strength and soon to enter in the US
market 0.06 1 0.06
Total 1 2.39
Key Internal Factors Weight Rating Weighted
Scored
Strengths
-Obligation: Ford has drastically reduced its debt and
pension obligations in recent years.
-Finance arm: Ford Credit remains a competitive
advantage for the automaker.
-Stability and predictability: Ford was founded in 1903
and has been producing cars for over 100 years.
-Strong position in US market.
-Brand recognition and loyalty: the iconic Ford logo is
known widely in the world and buyers choose Ford for
its long track record of producing quality cars.
0.07
0.09
0.09
0.05
0.1
0.06
4
3
4
4
4
3
0.32
0.3
0.36
0.2
0.4
0.24

EXHIBIT 4 Competitive Profile Matrix (CPM)
-Ford has brands and models of cars to appeal to every
kind of demographic group.
-Ford has very high employee productivity.
0.04
4
0.16
Weaknesses
-Having more liability than assets.
-Stock prices for Ford motors have also seen a huge
drop in recent years.
-With the emergence of Japanese and European
manufacturers, the sales of Ford Motors has fell down
and they have not been able to respond to the
competition properly.
-Product life cycle: certain products are only going to
be popular for so long until something comes out that
is bigger and better. For example: the transition from
SUV to cross over phase.
- Ford does not concentrate and invest much for design
phase and eventually lacking in innovative design
structures on their new paddle of cars.
-Ford expanded its operations in diversified
geographical areas, so management is missing focus
on some lines performance and it influence the ford to
cause the low productivity.
0.1
0.07
0.1
0.05
0.08
0.1
1
2
1
2
2
1
0.1
0.14
0.1
0.1
0.16
0.1
Total 1.00 2.68

EXHIBIT 5 TRENDING,FORECASTING ON FINANCIAL DATA
Year Stock
Price
2010 $13.04
2011 $9.93
2012 $9.35
2013 $16.98
2014 $17.09
2015 $17.82
2016 $19.34

EXHIBIT 6 Strategic Positionand Action Evaluation(SPACE) Matrix
Financial Position StabilityPosition
Return On Asset (ROA) 2 Rate Of Inflation -4
Leverage 1 Technological Changes -2
Net income 3 Price Elasticity Of Demand -2
Net Asset 3 Competitive Pressure -5
Return On Equity 1
Barrier To Entry Into The
Market -2
Financial Position(FP) 2 Stability Position(SP) -3
Competitor Position Industry Posotion
Market Share -4 Growth Potential 5
Product Quality -3 Financial Stability 4
Customer Loyalty -2
Ease of entry into the
market 6
Technological Know-how -3 Resources Utilization 2
Control Over Suppliers and
Distributors -3 Profit Potential 4
Competitor Position (CP) -3 Insudtry Position(IP) 4.6

EXHIBIT 7 Quantitative Strategic Planning Matrix (QSPM)
1. Apply
market
penetration
strategies
globally
2.
Production
of fuel
efficient
cars
3.Alliance
with the
competitor
Key Factors Weight AS TAS AS TAS AS TAS
EXTERNAL
Opportunities
1.Demand and trend for hybrid
energy verhicle 0,08 2 0,16 3 0,24 1 0,08
2.China, a vibrant market for
automotive industry 0,07 3 0,21 4 0,28 2 0,14
3. Reduction of GM sales due to
perceived lower quality and fuel
efficiency 0,05 - - - - - -
4 demand of fuel efficient cars 0,07 3 0,21 4 0,28 2 0,14
5. Alliance with the British
Petroleum to develop hydrogen
power 0,07 - - - -
6. High expectations of consumers 0,05 3 0,15 4 0,2 2 0,1
7. Ford's "S-Max" car of the year in
Europe in 2006 0,06 - - - - - -
Threats
1.Excessive sales to rental car
agencies affecting the brand image
and resale value 0,05 - - - - - -
2. Strict standard of CO2 emission
result in increasing the manufacturing
cost to produce engines 0,07 1 0,07 2 0,14 3 0,21
3. New entrants i.e: Honda, Toyota,
Nissan result in tough competition 0,08 4 0,32 3 0,24 2 0,16
4. Currency rate fluctuation and
increased cost of raw materials effect
the production and sales 0,08 2 0,16 3 0,24 4 0,32
5. Car financing sector facing
financial hardship due to increasing
mortage rates 0,05 - - - - - -

6. Lack of desired verhicles available
on the dealer's lot 0,06 - - - - - -
7. Rising cost of health care and
pension will effect the future
investment 0,05 - - - - - -
8. Toyota selling verhicles through E-
commerce(Gazoo.com) 0,05 4 0,2 2 0,1 1 0,05
9. Chinese auto firms gaining strengh
and soon to enter in the US markets 0,06 3 0,18 4 0,24 2 0,12
INTERNAL - - - - - - -
Strengths - - - - - - -
1. Increased in revenue to 6%( i.e$
87.62B) in june 30,2007 0,06 - - - - - -
2. Production of hybrid energy
verhicles 0,07 2 0,14 3 0,21 4 0,28
3.Ford's credit division achieved an
increase of $ 16.5B in 2006 0,06 - - - - - -
4. Strong brand recognition as
affordable and safe verhicle 0,07 4 0,28 3 0,21 1 0,07
5. Increase in PAG division from
$8.0-8.6 B in 2006 0,06 - - - - - -
6. Effective distribution and
manufacturing channels covering
17.5% of market chare in the
automotive dindustry 0,05 4 0,2 3 0,15 2 0,1

EXHIBIT 8 Grand StrategyMatrix

EXHIBIT 10 FORD’S INCOME STATEMENT
Fiscal year is January-December. All values USD millions. 2010 2011 2012 2013 2014
Sales/Revenue 128.92B 136.27B 133.56B 146.92B 144.08B
Cost of Goods Sold (COGS) incl. D&A
103.7B 111.37B 110.02B 121.5B 119.54B
COGS excluding D&A 97.7B 105.98B 104.53B 114.99B 112.12B
Depreciation & Amortization Expense 6B 5.39B 5.5B 6.52B 7.42B
Depreciation 5.9B 5.38B 5.49B 6.5B 7.39B
Amortization of Intangibles 97M 12M 10M 11M 38M
Gross Income 25.22B 24.9B 23.54B 25.42B 24.54B
2010 2011 2012 2013 2014
SG&A Expense 16.6B 16.83B 17.07B 19.6B 20.33B
Research & Development 5B 5.3B 5.5B 6.4B 6.9B
Other SG&A 11.6B 11.53B 11.57B 13.2B 13.43B
Other Operating Expense 0 0 0 0 305M
Unusual Expense 905M 222M (51M) 520M 957M
EBIT after Unusual Expense (905M) (222M) 51M (520M) (957M)
Non Operating Income/Expense 586M 894M 988M 1.26B 980M
Non-Operating Interest Income 350M 472M 342M 213M 244M
Equity in Affiliates (Pretax) 538M 500M 588M 1.07B 1.28B
Interest Expense 2.03B 1.03B 713M 829M 1.1B
Gross Interest Expense 2.05B 1.07B 717M 847M 1.12B
Interest Capitalized 20M 31M 4M 18M 21M
Pretax Income 7.15B 8.68B 7.72B 7B 4.34B
Income Tax 592M (11.54B) 2.06B (147M) 1.16B
Income Tax - Current Domestic (74M) (28M) 7M (59M) (24M)
Income Tax - Current Foreign 289M 298M 270M 302M 389M
Income Tax - Deferred Domestic 85M (10.22B) 1.91B (711M) 605M
Income Tax - Deferred Foreign 292M (1.59B) (126M) 321M 186M
Income Tax Credits - - - - -
Equity in Affiliates - - - - -
Other After Tax Income (Expense) 0 0 0 0 0
Consolidated Net Income 6.56B 20.22B 5.66B 7.15B 3.19B
Minority Interest Expense (4M) 9M (1M) (7M) (1M)
Net Income 6.56B 20.21B 5.67B 7.16B 3.19B
Extraordinaries & Discontinued Operations 0 0 0 0 0
Extra Items & Gain/Loss Sale Of Assets 0 0 0 0 0
Cumulative Effect - Accounting Chg 0 0 0 0 0
Discontinued Operations 0 0 0 0 0
Net Income After Extraordinaries 6.56B 20.21B 5.67B 7.16B 3.19B
Preferred Dividends 0 0 0 0 0
Net Income Available to Common 6.56B 20.21B 5.67B 7.16B 3.19B
EPS (Basic) 1.9 5.33 1.48 1.82 0.81
Basic Shares Outstanding 3.45B 3.79B 3.82B 3.94B 3.91B
EPS (Diluted) 1.66 4.94 1.42 1.76 0.8
Diluted Shares Outstanding 4.18B 4.11B 4.02B 4.09B 4.05B
EBITDA 14.61B 13.46B 11.96B 12.33B 11.32B

EXHIBIT 11 GeneralMotor Income Statement
Fiscal year is January-December. All values USD
millions.
2010 2011 2012 2013 2014
Sales/Revenue 135.59B 150.28B 152.26B 155.43B 155.93B
Cost of Goods Sold (COGS) incl. D&A
118.94B 131.17B 135.24B 136.25B 141.16B
COGS excluding D&A 112.02B 123.74B 129.36B 130.34B 134.92B
Depreciation & Amortization Expense 6.92B 7.43B 5.89B 5.91B 6.24B
Depreciation 4.36B 5.62B 4.32B 4.63B 5.56B
Amortization of Intangibles 2.56B 1.8B 1.57B 1.28B 676M
Gross Income 16.65B 19.11B 17.01B 19.18B 14.77B
2010 2011 2012 2013 2014
SG&A Expense 11.45B 12.11B 14.03B 12.38B 12.16B
Research & Development 6.96B 8.12B 7.4B 7.2B 7.4B
Other SG&A 4.48B 3.98B 6.63B 5.18B 4.76B
Other Operating Expense 118M 58M 0 0 0
Unusual Expense (552M) 1.33B 33.66B 1.89B 835M
EBIT after Unusual Expense 552M (1.33B) (33.66B) (1.89B) (835M)
Non Operating Income/Expense 734M 458M 565M 830M 564M
Non-Operating Interest Income 465M 455M 343M 246M 211M
Equity in Affiliates (Pretax) - - 1.56B 1.81B 2.09B
Interest Expense 1.1B 540M 489M 334M 403M
Gross Interest Expense 1.16B 631M 606M 415M 473M
Interest Capitalized 62M 91M 117M 81M 70M
Pretax Income 5.74B 5.99B (28.7B) 7.46B 4.25B
Income Tax 672M (110M) (34.83B) 2.13B 228M
Income Tax - Current Domestic (11M) (76M) 84M 54M 131M
Income Tax - Current Foreign 441M 275M 646M 512M 671M
Income Tax - Deferred Domestic (17M) (20M) (32.38B) 1.19B (641M)
Income Tax - Deferred Foreign 259M (289M) (3.18B) 375M 67M
Equity in Affiliates 1.44B 3.19B - - -
Consolidated Net Income 6.5B 9.29B 6.14B 5.33B 4.02B
Minority Interest Expense 331M 97M (52M) (15M) 69M
Net Income
6.17B 9.19B 6.19B 5.35B 3.95B
Net Income After Extraordinaries 6.17B 9.19B 6.19B 5.35B 3.95B
Preferred Dividends 1.5B 1.61B 1.33B 1.58B 1.15B
Net Income Available to Common 4.67B 7.59B 4.86B 3.77B 2.8B
EPS (Basic) 3.11 4.94 3.1 2.71 1.75
Basic Shares Outstanding 1.5B 1.54B 1.57B 1.39B 1.61B
EPS (Diluted) 2.89 4.58 2.92 2.38 1.65
Diluted Shares Outstanding 1.62B 1.67B 1.68B 1.68B 1.69B
EBITDA 12.01B 14.37B 8.87B 12.71B 8.85B

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