Assignment on Ford Motor Company

Histories

The Ford Motor Company makes and sells automobiles. Founded in 1903, the company developed from Henry Ford and his vision to make cars available to everyone. Beginning in 1980, people outside of the Ford family held many of the powerful positions within the company, but on Oct. 30, 2001, Henry Fords great grandson, William Clay Ford Jr., was named Chief Executive Officer, ending the decades of power sharing. Ford, number four in the Fortune 500, is a huge conglomerate and the top pick-up truck producer in the world. Only General Motors, its greatest competitor, makes more cars. Toyota and DaimlerChrysler are other top competitors. Ford has grown so large that it has bought out many competitors in the car industry including Volvo, Aston Martin, Jaguar, Lincoln, Land Rover, Mercury, and 33% of Mazda. Ford and its subsidiaries operate over 26,000 dealerships worldwide. Along with extensive layoffs, Ford has been faced with the Firestone tire crisis. Ford has already paid millions of dollars in settlements, and the end is not in sight. Recalling vehicles continues to hurt Fords image, along with the bottom line. However, Fords three main public employees, customers, and investors have reason for concern. Slumping sales, lower productivity, and reputation damage threaten the solidity of the company. Fords products and services are available in 120 countries, with production occurring all over the world.

Fords Vision and Mission Statement

Vision To become the world's leading consumer company for automotive products and services.

Mission 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 customers needs, allowing us to prosper as a business and to provide a reasonable return for our stockholders, the owners of our business.

Values

How do we accomplish our mission is as important as the mission itself. Fundamental to success for the company are these basic 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.

Strategy Formulation of Ford Motors

Strategies: Strategies Is a Common Vision That Units And Organization, Provides Consistency in Decisions And, Keeps the Organization Moving In the Right Direction. The Strategies of Ford Motors are: To create the Changing the Face of Ford campaign to replace Fords current damaged reputation with a new, positive image. Identify William Clay Ford as the new face emphasizing change within the company while maintaining the companys founding ideals.

There are Four Steps of Strategies Formulation Of Ford Motors They Are:

Four Steps of Strategies Formulation Of Ford Motors

Defining

a Primary Task Assessing Core Competencies Determining Order Winners & Order Qualifiers Positioning the Firm

Defining Primary Task

Defining

a Primary Task : First step is defining Primary task of the company. The Primary Task of a Company Is Represent the Purpose of a FirmWhat the firm is in the business of doing. For Example 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. They are not in the business of Transportation or Banking.

Assessing Core Competencies

Assessing Core Competencies : Second step is assessing core competencies. Core Competencies is what a firm does better than anyone else. Ford Motor Company Cars are High Quality, Faster delivery, innovation design, long lasting vehicles. Advertising etc. Ford motor core competitor is general motors, Toyota.

Determining Order Winners & Order Qualifiers :

Third

step is determining order qualifiers and order winners. Order qualifiers are the characteristics of a product or service that it qualifies it to be considered for purchased by a customer. Order winners are the characteristics of a product or service that wins the order in the market place.

Positioning the Firm:

Fourth

and the last step are positioning the firm. Strategic positioning involves making choices- choosing one or two important things on which two concentrate and doing them extremely well. A firm positioning strategy defines how it will compete in the market place.

Core competencies
Our

business is driven by our consumer focus, creativity, resourcefulness, and entrepreneurial spirit. We are an inspired, diverse team. We respect and value everyone's contribution. The health and safety of our people are paramount.

 We

are a leader in environmental responsibility. Our integrity is never compromised and we make a positive contribution to society. We constantly strive to improve in everything we do. Guided by these values, we provide superior returns to our shareholders.

Ford Motor Strengths

Innovations in Technology and Procedures like virtual assembly line, single supplier model, centralized global risk management framework, etc. Commitment to environment protection by developing low emissions technologies Repeatability of technologies like same spares can be used in multiple models in what they termed as virtual assembly lines Excellent engineering and production workforce possessing global competencies as well as capabilities of localization of products in respective countries Excellent knowledge and analytics of the global markets that helped them to grow into a truly global company

Ford Motor Weaknesses:

Not

successful in withstanding against

Japanese competition like Toyota Falling sales and revenues (faced a whopping $5.45 billion in 2001 that improved to $2 Billion loss before the Jaguar and Land Rover companies were sold to Tata Motors India) and Poor financial condition continuing for a number of years Not able to tap opportunities in small and medium segments where the motor market is the largest Inability to establish sustainable markets in high end car models that led to sale of Land Rover and Jaguar car models

Ford Motors Corporate Strategy

This comprises the overall strategy elements for the corporation as a whole, the grand strategy, if you please. Corporate strategy involves four kinds of initiatives: * Making the necessary moves to establish positions in different businesses and achieve an appropriate amount and kind of diversification. A key part of corporate strategy is making decisions on how many, what types, and which specific lines of business the company should be in. This may involve deciding to increase or decrease the amount and breadth of diversification. It may involve closing out some LOB's (lines of business), adding others, and/or changing emphasis among LOB's

 Initiating

actions to boost the combined performance of the businesses the company has diversified into: This may involve vigorously pursuing rapid-growth strategies in the most promising LOB's, keeping the other core businesses healthy, initiating turnaround efforts in weak-performing LOB's with promise, and dropping LOB's that are no longer attractive or don't fit into the corporation's overall plans. It also may involve supplying financial, managerial, and

 other

resources, or acquiring and/or merging other companies with an existing LOB. * Pursuing ways to capture valuable cross-business strategic fits and turn them into competitive advantages -- especially transferring and sharing related technology, procurement leverage, operating facilities, distribution channels, and/or customers. * Establishing investment priorities and moving more corporate resources into the most attractive LOB's

Ford Motors Competitive Priorities.

Ford Motors Company Is the Only Automotive Manufacture Executing Truly Global Powertrain Strategies.Begining With the launch of the new Ford fISO.We are building a network of Flexible engine And Transmission plants that can respond Quickly To changing markets needs. While improving quality & manufacturing efficiency, This is the most dramatic change in power train manufacturing change using the introduction of the assembly line.

Priority of the Company:

Under Ford Motors company global power train Strategy. Flexible Engine Parts. Manufacturing Equipment & Plant Floor Layouts Will BE Similar Around The World. Crews Shipping of Components between Plants is Possible. Easing Launch Status & Helping Speed Products to Market. Many Factors Shape & Form The Operations Strategy of a corporation.For example- The ever increasing needs for globalizing produc t& operation & thus reducing the unit cost.

distinction as to be made between investments aimed at creating resources & those at creating capability. Capability are the sources of if competitive advantage. This is the reason for distinguishing between competitiveness dimension & capabilities Base Dimension

Opportunities for Ford Motor Company:

Growing motor markets in small and medium segments in the third world countries Development of more fuel efficient and green cars to promote them in Europe and US markets Development of Hybrid cars and Electric cars Growing economies in Asia where Ford is already present or can enter easily due to regional strengths Acceptance of American brands in many countries of Asia (Like India and Pakistan) Promoting their powerful Volvo vehicles in the Bus and Truck markets of Asia where the local brands like Tata Motors may be very strong but are technically far inferior compared to Ford Volvo

Threats to Ford Motor Company:

The western car markets have been hit very

badly due to stagnation and the current economic crisis. As reported by Platinum Today, Car sales in US have declined by 36% percent. Car markets in other developed economies like UK and Canada have also witnessed similar plunges 38% decline in UK car sales in December 2009 (thisismoney.co.uk) and 21% decline in Canada car sales in December 2008. [Platinum Today (2009); Praet (2009); Daily Mail. (2008)]

Western Economies facing severe economic

down turn due to the current Sub-Prime crisis Stringent Emission norms in Europe, UK and the US Japanese competitors are very aggressive in the western markets resulting in reduced grip of Ford Motor Company on the US car markets

Evaluating The Financial Performance Of The Company Using Balance Score Card

To embark on the Balanced Scorecard path an organization first must know (and understand) the following: The company's mission statement. The company's strategic plan/vision The financial status of the organization How the organization is currently structured and operating. The level of expertise of their employees. Customer satisfaction level.

Recommendation

Ford is successful when it sells cars. Therefore, appealing to our customers and potential customers is the most important factor in reaching the short-term goal of selling more cars. As a result, investors will see a greater returnwhich makes them happy

Form partnership relationships with trading partners Consolidate/reduce supplier base Shift focus from initial purchase cost to cost performance over time

Define and implement trading partners selection program Initiate formal supplier performance and rating program Institute long-term contracts with selected trading partners Move towards single sourcing:

Fords goal: to reduce the number of suppliers by one-third by 1995

Maintain high level of information exchange with trading partners Encourage early trading partner involvement in product design stages Provide suppliers with effective training