Professional Documents
Culture Documents
On
STRATEGIC MANAGEMENT OF FORD MOTORS
By
UMANG MEHRA
MBA Class of 2017
Under the Supervision of
In Partial Fulfilment of the Requirements for the Degree of
Master of Business Administration Marketing & Sales
At
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201301, UTTAR PRADESH, INDIA
ITEAM
YES/NO
CUSTOMER
PRODUCT/SERVICE
MARKET
TECHNOLOGY
CONCERN FOR SURVIVAL
PHILOSOPHY
SELF CONCEPT
PUBLIC IMAGE
EMPLOYEES
YES
YES
YES
NO
YES
NO
YES
YES
YES
SWOT ANALYSIS
STRENGTHS
1. Market positioning
2. Financial resources
3. ECOnetic approach
4. One Ford approach
5. Growth in Asia Market
OPPORTUNITIES
1. Green vehicles
2. Fuel efficient cars
3. New emission standards
4. Strategic partnership
5. GST
IFE MATRIX
WEAKNESS
1. High cost structure
2. Low exposure to Asia pacific
3. Does not provide financial
incentives to its dealers.
4. Downsizing
5. Declining market share in Asia
pacific
THREATS
1. Increasing fuel cars
2. Rising Cost of raw materials
3. High level of competition
4. Purchasing and selling vehicles
through E-commerce.
INTERAL STRENGTHS
1. Strong and globally positioned brand
name
2. Skilled and educated human resource
base
3. One of the largest automotive firm
4. Increase in total equity and shareholder
fund
INTERNAL WEAKNESS
1. Time lost on putting the product in
market
2. Recording continuous loss (since 2006)
3. Bad management
4. Negative EPS
5. Low quality new product
TOTAL
EFE MATRIX
KEY EXTERNAL FACTORS
EXTERNAL OPPORTUNITIES
1. Demand of hybrid cars and fuel
efficient
2. Growth in spending of middle class
family
3. Innovative cars
4. Slow and steady industrial growth
5. GST
WEIGHT
S (0.01.0)
0.11
0.10
0.10
0.12
RATIN
G (14)
(3 or
4)
4
3
3
4
WEIGHTED
SCORE
.44
.30
.30
.48
0.10
0.12
0.12
0.11
0.12
1
(1 or
2)
2
1
2
1
2
WEIGHT
S (0.01.0)
RATIN
G (14)
WEIGHTED
SCORE
0.11
0.10
0.06
0.12
0.15
3
4
3
4
2
.33
.40
.18
.48
.30
.20
.12
.24
.11
.24
2.43
EXTERNAL THREATS
1. Increase in value of raw materials
2. Increasing gasoline price
3. Pollution emission
4. Increasing mortgage rates
TOTAL
0.12
0.12
0.12
0.10
1
(1 or
2)
2
4
3
1
.24
.48
.24
.10
2.76
BUYER
S
POWER
Over
large
HIG
H
COMPITITIVE
THREAT
OF
SUBSITU
TE
LO
W
1. MATURE
MARKET
2. PRICE WAR
3. LARGE NO. OF
COMPITITORS
MEDIUM
SUPPLIER
S POWER
LOW
THREAT
OF NEW
ENTERE
NT
ECONOMIC FACTOR
Economic conditions prevailing in India will affect the entire firm in the
industry.
Here for a car manufacturing company, as a costlier product and target is
higher income family and middle class family with high income, income
level of India, income and assets distribution will determine the customer
base for each car making company.
Apart from it various economic policy of Indian government and RBI will
also affect all the firms in the industry in same way.
Indian government coming out with GST very soon will be another factor
to be taken into consideration.
SOCIAL FACTOR
Lifestyle and preferences of people that impact their choice of types of cars.
Social norms that impact the decision to own and use automobiles versus other
means of transport.
Socio cultural environment will have impact on the marketing Mix of the firms
also.
TECHNOLOGICAL
Increasing innovations in technology will always going to affect whole industry.
Some innovations are as following
a. Fuel efficiency
b. Hybrid cars
If Ford can comes up with above two then it will Crete pressure for other firms in
the industry.
Increasing role of innovations and improved technology is important and this
can be gained through research and development and it will affect most firms in
the industry.
Anti -Pollution Pressure and implementation of euro norms and Bharat norms
have made firms to change their technologies to which are fuel efficient and
concerned for environment.
ENIVIRONMENTAL FACTOR
ii.
Strategic groups based on comfort and luxury with high pricing.
For example, Ford does not compete with Ferrari, but it does, in some
segments, with BMW, Audi & Mercedes.
This is because Fords more expensive and less mass-market range
of cars are in similar segments with BMWs lesser expensive, more
mass-market cars. So a Ford Focus would compete with a BMW 1Series and not a BMW 7-Series as the target customers.
Critical
Success
factors
Weight
Weight
Weight
Weight
Weig Rati ed
Rati ed
Rati ed
Rati ed
hts
ng Score ng Score ng Score ng Score
0.0 to 1 to
1.0
4
1 to
4
1 to
4
1 to
4
Global
Expansion 0.14
0.28
0.42
0.28
0.42
Financial
Position
0.10
0.2
0.4
0.3
0.3
Growth
0.16
0.16
0.48
0.16
0.64
US Market
Share
0.20
0.6
0.8
0.4
0.4
0.45
0.36
0.21
Customer 0.15 4
0.6
3
0.45
4
0.6
General Administration It should use high level of
Loyalty
information system to make strategic and routine
Hybrid/Fue
0.54
3
0.54
2
0.36
decisions.0.18 3
l Efficient
HR Management Strong management with
Vehicles
continuous evaluation process. Healthy relation
Managem
0.07
3
0.21
4
0.28
3
0.21
with labour
union.
ent
Technology and Systems use the high-tech
Experienc
einformation technology to integrate suppliers.
Procurement
dependence3.37
on a single 2.31
Totals
1 Minimize
2.59
supplier. Leveraged strong buyer power into
timely, low-cost, and high quality of raw materials.
Strong long lasting relationships with suppliers
and efficient inventory management.
Inbound Logistics
Efficient inbound warehousing system
Quality inspection at supplier
Operations
High level of automation
Outbound Logistics
Reduce delivery time
Increase efficiency of finished product
warehousing
Outbound Logistics
Reduce delivery time
Increase efficiency of finished product
warehousing
2.78
CPM MATRIX
VOLKSWAGE
FORD
TOYOTA
GENERAL
N MOTORS
OPPORTUNITIES
Customers
demand for more
fuel efficient cars
Fords investment
in the Solar Power
industry
The Way Forward
Plan
The European and
Chinese markets
Release of the
2011 Ford Fiesta
THREATS
Rising new
material prices
Increasing
competition
The war on
terrorism and its
overall threat to
the world market
and economy
The economy
Rising oil prices
STRENGTH
Producing Hybrid
vehicles
Brand recognition
Profitable financial
services division
(Ford Motor
Credit)
Manufacturing
facilities in more
than 30 countries
Wide Range of
Products targeting
all customer
classes
SO
Continue
marketing and
research &
development of
hybrid cars(S1,O1,
O2)
Consolidate more
in European and
Chinese markets
(S4, O4)
WEAKNESS
Weakening North
American
automotive
operations
Recalls
Sales in trucks
decreasing rapidly
Firing of
Employees
ST
WT
Continue
marketing and
research &
development of
hybrid cars
(S1,T4,T5)
Improve fuel
consumption
(S1,T4,T5 )
WO
Continue
Research and
Development of
Hybrid Cars
(S1,W2)
Reduce recalls in
newer products
(W2, O2)
Increase
incentives for
customers.
Examples:
mileage
warranties
(T2,W1)
Reduce threat of
competition by
developing
flexible product
line(T2,W3)
VRIO ANALYSIS
Valuable
The Loan 23.6$b in 2006 makes Ford
survive
Electronic-cars production plan
Rare
Fordism was the first major revolution
in process technology
Efficiency managers
Imitability
Design phase
Economies of Scale
Brand Loyalty
Network of dealer.
Organization
Ford exploit cheap markets labor and
invest for advertising in China market
S.NO
.
CAPABILITY NATUR
E
FACTOR
OF
IMPACT
1
2
3
4
5
6
FINANCE
MARKETING
0PERATIONS
PERSONNEL
INFORMATION
GENERAL
MANAGEMEN
T
BCG Matrix
Star
Question marks
Trucks
Cars
high
low
SUVs
high
Cash Cows
Ind
ustr
y
Gro
w
rate
s
low
Electric car
Dogs
RapidMarket
Growth
QuadrantI
QuadrantII
Weak
Competitive
Position
Strong
Competit
ive
QuadrantIV
QuadrantIII
SlowMarketGrowth
MARKET DEVELOPMENT
MARKET PENETRATION
DIVERSIFICATION
PRODUCT DEVELOPMENT
COST LEADERSHIP
This strategy emphasizes
efficiency. The products are
produced in high or mass with
economic which is available for
consumer to a very large base.
To compete with competitors the
mass production helps to lower
the cost and lead the market.
Ford motor company have to
maintain a low cost base by
controlling production cost,
increasing their capacity
utilization, controlling material
supply or product design, work
force dedicated for low cost
production, less spending on
marketing helps a company
lower the cost .which is support
for cost leadership.
FOCUS
1.
2.
3.
4.
Time consuming
Lack of detailed information of market requirement
High cost of consultancy
Lack of communication
INNOVATION
Their one of the priority is to drive innovation in every part of our business. The industry is
rapidly evolving, and new technology is having a significant impact on our business.
They are a technology leader, providing innovations that consumers demand today while
developing affordable, accessible solutions to help meet the needs of future transportation.
Their approach to innovation is to employ an Innovation Mindset by asking questions,
challenging customs and taking intelligent risks all across the company, in every part of the
business. Innovation is driven by individuals and teams that find new ways to approach
existing problems in a quest to make the world a better place.
They are always looking ahead and developing affordable, accessible solutions to help meet
the needs of future transportation.