Post on 13-Feb-2017
FErrari
ORGANIZATION AND CORPORATE MANAGMENT
YARI BRUGNONI, IMIM 2014-2016
introduction
INTERNAL ANALYSIS EXTERNAL ANALYSIS
• Work philosophy and Environmental attention
• Strategic Decisions • Supply Chain
• Competitors and Customers’ Analysis
• Environmental Analysis • Market Analysis
HOW LONG ARE YOU WILLING TO WAIT FOR DRIVING YOUR FERRARI ?
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Company overview
• MISSION
• HIGH INVESTMENTS AND INNOVATIONS through R&D of race cars:
• ETHICAL AND SOCIAL RESPONSABILITIES
Ferrari is an eco-friendly company that cares about the well being of its employees
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history
• 1929: Scuderia Ferrari was founded by Enzo Ferrari as a race team
• 1947: presentation of first Ferrari’s model. It will win the Rome Grand Prix
• 1969: Fiat purchased 50% of shares
• 1988: manufacturing of F40
• 1988: Enzo Ferrari died and Fiat acquired 90% of the company
• 1991: Luca Cordero di Montezemolo as new Chairman
• 2014: L.C. di Montezemolo has been replaced by Sergio Marchionne
• 15 F1 Driver’ s World titles and 16 F1 Constructor’s World titles, 9 victories in the Le Mans 24 Hours,8 in the Mille Miglia …
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Ferrari dna
SUSTAINABILITY
• Reduce polluting emissions (-42% CO2)
• Produce energy & renewable energies
• Improve safety and quality of life of its employees
INNOVATION
• 150 patents registered
• Integration on road cars of F1 technologies
• Benchmark for the entire automotive industry
DESIGN
• Mix of innovation, extreme technologies, endure quality and design
• Make cars recognizable maintaining its traditional values
PEOPLE
• 2,900 employees: 40% white collar, 60% blue collar, with an average of 38 years.
• Formula Uomo philosophy
• High level of knowledge: 70% WC has a degree, 60% BC has a diploma
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Strategy development
CENTRALIZED STRUCTURE • Centralization of decision-making among the highest managerial levels
• Guarantee constant high quality standards for each vehicle
• No tolerance for defects à precise guidelines to be followed
• Workers high trained and well prepared
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Supply chain
• Unique manufacturer factory, 6 Regional Office that manage the distributors’ network
• Exclusive Distribution model à low-volume (7,000 units) & high price
• Introduction of new ERP system (INFOR LN) to reduce the delivery time from 18 to 12 months
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Resources & capabilities analysis
RESOURCE-BASED VIEW (RBV)
Differentiation
Niche marketing
High Performance and Technology
Quality and Service
Vertical Integration
Synergy
Breakthrough Resources
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Prescriptive or emergent ?
Ferrari’s strategic management is a mix of prescriptive and emergent approach:
RACE CARS SPORTS CARS
• Unclear objective every year
• Unpredictable environment
• Extreme relevance of human needs
• It follows its Mission
• Objective defined in advance
• High and constant investments
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Environmental analysis
• The global sale of vehicles presents a stable increase in the future (up to 101,4 million in 2019);
• luxury cars market will grow quicker than the car market as a whole;
• Rapid and different changes, depending on geographic areas;
• US has been Ferrari’s first market (+9% 2013), while Europe were down of 13%;
• Automotive industry life cycle has reached its mature phase;
• Medium-high degree of market turbulence à environment or safety restrictions, economy changes and political decisions.
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Pestel analysis
• Environmental policies
• Employees’ contracts
• Technological pioneer
• 150 machineries’ patents
• Increasing attention on CO2 emissions
• Renewable resources
• Fuel emissions
• Passengers’ safety
• Products adaptable to any weather and climatic conditions
• Economic crisis
• Growth of emergent countries
Tec
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Env
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Leg
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Pol
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Eco
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5 porter’s forces
POWER OF BUYERS
• Medium-High
• Can choose between many brands/substitutes products
• Increasing access to information
POWER OF SUPPLIERS
• Medium
• Few suppliers match luxury brand requests
• High switching costs
ENTRY THREATS
• Low
• High investments and technologies
• Glorious history of many companies
• Government regulations
SUBSTITUTIONAL THRETS
• Medium-High
• All the means of transportation
• Status-products, as Harley Davidson
RIVALRY
• High and Intense
• Similar car manufacturers aiming at the same market segmentation
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Swot analysis
STRENGHTS • Investments on
Innovation&Technologies
• Brand recognition
• Combination of design&performance
• Attention to weel-being and satisfaction of its employees
WEAKNESSES • High performance vs. environmental
policies
• Low-volume production
• Waiting list of 18 moths
• Specialized employees à critical resource and high costs
OPPORTUNITIES
• Growing economies/new rich people
• Diversify the market
• Increase the limit of units produced
THREATS • Restriction of emission norms
• Many substitute products
• Economic uncertainty
• Competitors are expanding their products' range
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competitors
1929
2,900
7,000
230,000 $
$2.2 billion
1931
15,000
128,000
48,500 $
$11 billion
1963
1,029
2,122
182,000 $
$560 million
• Founded in
• Employees
• Prod. Volume
• Starting price
• Revenues
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Conclusion
• Combination of high quality, performance and design
• Low volume/high price strategy
• Exclusivity of the brand
• Second-hand market
• Formula Uomo and attention at environmental aspects
• Marchionne’s changes: 10,000 units and focus on F1
• Lead time reduction (18 à 12 months)
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END
ANY QUESTIONS?
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