Internal Analysis:BCG MatrixBCG (Boston consulting Group) is based on market growth in portfolio analysis. BCG matrix is use to prioritize opportunities and get the best return or company effort. Under this model. Ford motor companys brand can be measured and valued properly. This helps to know the actual position of the company.Relative market share.One of the dimensions used to evaluate business portfolio is relative market share. Higher corporates market share results in higher cash returns. This is because a firm that produces more, benefits from higher economies of scale and experience curve, which results in higher profits. Nonetheless, it is worth to note that some firms may experience the same benefits with lower production outputs and lower market share.Market growth rate.High market growth rate means higher earnings and sometimes profits but it also consumes lots of cash, which is used as investment to stimulate further growth. Therefore, business units that operate in rapid growth industries are cash users and are worth investing in only when they are expected to grow or maintain market share in the future.There are four quadrants into which firms brands are classified:

Star:According to the BCG model the ford motor company is investing in the product line of cars as it lies under the stars and its characteristics are as follows:Cash flow: Neutral flows relatively proceeding towards growth.Earnings:Low and possibility of growing in future.Strategy: For growth of cars in future, strategy should be to invest by firm.Cash cowCash cow shows the high market share and low market growth rate. Here, ford motor company is carrying SUVs in this segment of BCG matrix and its characteristics are as follows;Earnings:Earnings are high and stable as this product line is old and relatively more profit carrying.Cash flows:Cash flows of SUVs are also high and stable.Strategy:For SUVs fords strategy should be to maintain the stability of earnings and cash flows.Question marksFord motor company have the low market share and high mix growth rate. Ford has super line of trucks which is profit generating product line and hybrid EVs which is newly launched product line and its characteristics are as follows:Earnings:Earnings are low and could grow in future if products sales increases.Cash flow:Cash flows are negative as these are the new product lines and for their growth ford has to invest instead of generating profit from it right now.Strategy:As sale of trucks are increasing so, it needs to invest for its further growth and for hybrid and EVs ford also needs to invest and if in case of some negative sales in future, fords strategy should be to sell instead of investing in it.DogsIn these characteristics the market share and market growth rate is low. The product in this characters market is existing for doing competition to the competitors products. Ford motor company brand Jaguar and land Rover had faced the problem and connate generated profit at 2006, to early at 2008 but finally the Ford motor company sale the brand to Tata company on 2008 march. Ford motor company sales its brand or liquidate too solve the financial difficulties.

Competitive AdvantageReturn on equity shows how much profit a company generates from shareholders' money. The return on equity standout among the automakers is Ford.The other automakers are not as effective in converting shareholder money into profit. Return on equity is a measure of management's effectiveness, so I see this as an important metric and competitive advantage for Ford's continued success. The return on equity is calculated by taking net income and dividing it by the shareholder's equity.General MotorsToyotaHondaVolkswagenFord

ROE13.27%11.11%8.39%10.14%28.5%

Product line is Satisfactory:

Product line is respected by industry experts and is qualitatively seen to be a step above many of its competitors. Recent surveys place Ford in a tie with Toyota for greatest customer satisfaction, a significant improvement from five years ago.

Fuel Efficient cars:

Ford has recognized the importance of small, fuel efficient vehicles and is actively transitioning into this market. Of particular interest is Fords Eco Boost technology, which the company claims will result in 20% greater fuel efficiency and 15% fewer CO2 emissions. Fords truck line is still much profitable than others so, by increasing its production line ford can increase its profitability. Lowest Cost Production Efficiency:Ford motors adopted the strategy that allowed it low production cost by cutting all the excessive cost involved in this operations. The huge expenditure on raw materials was cut down and the online manufacturing process was introduced that focus on the development of cars on one process rather than having different segments of engineering and production. This strategy was establishes cost advantage and give the company advantage over its competitors in terms of lower cost, in the mean while company focused on producing smart cars that were not price sensitive and offered the functionality of traditional ford cars. Fully Integrated Communication System:Ford SYNC is a company fitted, fully integrated communication and entertainment system that connects the users with internet, through his smart phone and allows them to make telephone calls and control music and other functions using voice commands. This system is the integrated interface developed by ford and Microsoft that operates on Microsoft Windows Embedded Automotive operating system which is also the competitive advantage of ford. Organizational Culture:Ford is second largest car manufacturer worldwide and widely known for vehicle service for its customers. Large emphasis on customer first and customer satisfaction. Areas served are worldwide. Currently Fords organizational structure is based upon the following points: Aggressively restructured firm to operate profitably at current demand changing model mix. Plans implementation:Finance their plan to effectively improve their balance sheet and work cohesively for its implementation. Automotive leadership:Work together as one team which emphasizes the importance of working together to achieve automotive leadership, which is measured by their customers satisfaction level, employees and other essential business partners.

People orientation:Ford exhibits a culture that is adaptive in nature and the managers in company show care for their clients, employees and stockholders. Attention to detail:Being a leading manufacturer, precision and reliability are the hallmark of fords products from its employees. Stability:Low degree of stability as status quo has been put to stake many times in the past in favor of innovations and boosting employees morale. Innovation & Risk Taking:Employees views are valued and frequent launch of new products exhibiting innovative features depicts high degree of risk taking but Ford tries to go over it.Organization Structure:There is clear chain of president to vice presidents of different branches in different states which is shown below in Fords organizational structure:

SfasStrengthsWeaknesses

Threats

Opportunities

Industry InformationFord MotorsGeneral MotorsToyota MotorsDaimler Chrysler

Key success factorsWeightsRatingWeighted scoreRatingWeighted scoreRatingWeighted scoreRatingWeighted score

Global Expansion0.1320.2630.3930.3920.26

Financial Position0.1130.3340.4430.3330.33

Growth0.1320.2630.3940.5210.13

Market Share0.1530.4540.620.320.3

Product Quality0.1340.5230.3930.3930.39

Customer Loyalty0.1240.4830.3630.3640.48

Models0.1130.3340.4430.3330.33

Management Experience0.1230.3640.4830.3630.36

Total12.993.492.982.58

Internal FactorsWeight (0.0-1.0)Rating (1-5)Weighted ScoreComments

Strengths

Brand Recognition0.1040.40Ford has enough brand appreciation.

Producing Hybrid Vehicles0.1030.30Ford is producing hybrid vehicles.

Fuel Efficient Vehicles0.1540.60Fuel efficiency is the most demandable component.

Quality & Safety0.0530.15Quality is not comprisable feature.

Customer loyalty0.0320.06Customers dont switch because of companys products.

Effective distribution & Manufacturing channels0.0720.14Distribution channels are the important component for selling products.

Weaknesses

Sales are decreasing0.1530.45Overall economic recession has burdened upon sales.

Firing of employees0.0630.18Downsizing is the end result of economic recession.

Increase in over-time wages0.0520.10Labor cost has been increased in this recession.

Decline in customer service0.1020.20Customer services leads to decrease in empowerment.

Firms morale0.0530.15Economic recession or decrease in revenues has bad impact upon firms morale.

Decrease in revenues0.0930.27Decrease in sales leads to lowering revenues.

Total1.003.00

STRATEGIC RECOMMENDATIONS Company needs to avoid from cash burn and needs to sustain the cash in order to avoid bankruptcy in future. Frequent loss can make Company weaker in the market and in reputation as well. The bailout or money supply has made GM and Chrysler tough in front of Ford while Ford is strategically stronger. These bailouts and treasury funds provided to the GM and Chrysler can create a huge impact strategically on Ford. It will be getting easier to mitigate the overall progress of the Ford. It can also create an impact on the overall supply chain of the Ford. Now Ford must trigger its 'One Ford' vision and continue to discriminate itself from its rival firms that are GM, Chrysler and Toyota even as the economic recession goes away. In recent years, Ford has redeveloped a rational corporate strategy. Ford has been rejected to take the Government funding and other treasury money supply just because the Company has gained the financial confidence. Whether to exploit the weaknesses of GM and Chrysler, Ford needs to provoke some sound strategies for the company and look for the bigger picture not on tiny picture that was of gaining maximum market share in this industry. The reason behind this recommendation is that if Ford starts focusing on customers needs they would gain maximum share price rather on focusing on rivals weaknesses. There are some steps that Company needs to follow immediately. We believe that Company should be focusing on the short term objectives in order to survive for the year 2009 instead proposed years. We believe that Ford's management is on the right track, but recent progress is uncertain and could easily degenerate given current market and industry conditions.

Ford Should deprive Volvo:In order to be truly operative and competitive, Ford should merge its Volvo into Fords organizational structure and strategically from Fords other lines. Volvo is quite less expensive than BMW and Mercedes and it targets upper-middle class consumers. The brand had potential to provide Fords premium line of vehicles. According to the statistics, Volvo does not belong to the one Ford strategy and the given conditions; we believe that the sale of Volvo should be high priority of Ford. It can be predicted that the brand can generate at least 5 billion dollars and this amount of money is on hand and Ford can satisfy some debt out of this sale. In addition, Ford need to specifically target Volvo group which was Swedish parent Company sold Volvo cars to Ford in 1999. Volvo did extra ordinary in Sweden regarding its sales, employees along with its some subsidiaries. So we believe that Volvo should pursue Sweden Government to support the repurchase of Volvo cars by Volvo Group. It would be possible for the Swedish Government to provide some significant support for deal. Volvos overall progress and worldwide makes the brand worthy and on the basis of this reputation; Volvo would be welcoming by the consumers of US and Europe consumers. There are several car manufacturing firms for the Volvo cars but people like Volvo on the basis of its goodwill and image that have been created in the minds of the customers. So we believe that Volvo should take the advantage right now and jump in to the market with potential and expected growth.

Supply Chain Management Processes and Fords FactoriesThere is so much tilt that had been seen in shutting down the current plants including the factories in the United States and Europe. We believe that instead of focusing on shut down these factories, there is a need to improve the restructuring plants and factories in terms of management and supply chain processes. Meanwhile Ford has to disconnect with the suppliers which they have been contracted with more than 15, 00 suppliers. Ford must examine all of its suppliers and identify those which are critical to the supply chain. These companies should be prioritized above all others in the distribution of contracts.Particularly Visteon was the major partner whom with Ford did 4 billion dollars business in 2008. Oasis Consulting is prepared to step in and undergo a complete evaluation of all 1,600 suppliers and present recommendations for specific reallocations of contracts. With access to Ford's proprietary data and through an evaluation of the sources of these companies' contracts, Oasis Consulting can ensure supply chain stability for Ford even in the direst of circumstances.Prepare for Liquidation of Chrysler and/or Bankruptcy of GM Ford should develop strategies for its rival firms (GM, Chrysler) if they will be going for bankruptcy. Chrysler is going to deal with Nissan and Fiat. What if the deal would be cancelled and what if Ford can make deal with Nissan for a joint venture. It can be done and it would be more efficient for Nissan to deal with Ford rather Chrysler which is already in a very bad situation. So we believe that Ford can break easily the deal of Chrysler with paying some a little extra and can make a decent deal on the basis of current sustainable performance that Ford has yet. It is in an interest of the Government to avoid bankruptcy proceedings because the condition of the Chrysler will definitely create such a great impact on GM. We cannot predict the future of GM at this time. Whether GM reports a file of bankruptcy or not Ford needs to ensure that GM is not made the national champion implicitly and explicitly. Part of Ford's strategy moving forward must be to extensively lobby both Congress and the American people. Ford should increase marketing its vehicles in order to gain the competitive advantage until a decision regarding GMs future is reached. We recommend Ford to develop a consistency in consumer queries regarding warrantees.Product DifferentiationAs we have been discussed so far that it may be difficult for Ford to develop long term strategies where the industry is in severe crises and people have less buying power due to unemployment and inflation so we recommend Ford to just concentrate and develop short term strategies as Oasis consulting also believes that it is critical for Ford to continue preparing long term strategies. One of the valuable short term recommendations, we believe that Ford needs to bring some innovation in its vehicles. On the contrary, Ford should gain the ability to successfully differentiate itself from its competitors through price and quality. One Ford strategy is viable and efficient but we believe that it has some risks involved. First but not least risk is that we believe that it may be over-pursued. Another major risk is that while we recognize management was under pressure to affect change, Ford should not invest its future on one line of vehicles.We appreciate for Fords investments in fuel efficient technologies and its recent development of Ford Fusion hybrid. Unfortunately the arrival of Ford in this particular segment was late but the company has succeeded in delivering a vehicle which is instantly competitive because of the price and its quality. But in comparison with Toyota, Ford is at a disadvantage in this sector. It has been exceeded its product variety that has a chance to redefine the competitive background.Ford should be migrated its production to Mexico and Eastern EuropeAccording to the current situation, Ford is bearing too much labor cost in United States and Europe for manufacturing its vehicles. Furthermore the currency of Dollar and European Pound is kept on decreasing so we believe that Ford should be migrate its majority of production of vehicles towards Mexico and Eastern Europe where the labor and production costs are quite cheap. We can see the production of vehicles in different areas currently Ford has been involved in production of its vehicles. Given below is the graph with a variable on y-axis for the number of vehicles and the vehicles produced by region on x-axis.

But this strategy should be implemented slowly in years so that Ford would be able to avoid from negative public relations and branding which may be surfaced. Ford should take care of the sign that they have currently for its vehicles as American Car. These non-operational plants that have been shut from 2006-2008 in North America now will be working well and there is a chance to grow after taking place in Mexico. In 2007, Ford invested $88 million to acquire a car manufacturing plant owned by the Romanian government and has also announced plans to invest some $3 billion in manufacturing facilities in Mexico. We are hoping that these are the first steps in a broader move in production towards lower cost labors.

By Expanding Market Share in China and IndiaChina automobile market has experienced a consistent growth in the past ten years. It is stated that over 9 million vehicles have been manufactured in the last year that was 2008. This industry and market has a sound profitability. Ford did a joint venture in 2008 with Changan Automotive of China. It is manufacturing some pretentious brands of Ford like Ford Focus, Fiesta and Mondeo lines. It is estimated that this joint venture has been produced more than 200,000 vehicles in the past year. There is expecting a twenty percent increase in demand as the Chinese Government has passed an incentive package. So we believe that there is a room for Ford to increase the production of its units. We believe that this type of magnitude can increase the market share of Ford motor Company and as a result when there are chances of bankruptcy and liquidation, Company can expect to decrease down a fierce debt. Yet Ford has only gained a two percent market share in China so by fulfilling the demand of Chinese consumers, Ford can gear up the revenues from this particular market. Ford Fiesta is the most likable brand by the audience in China and we believe that it can boost up Fords market share. According to the past statistical data of sales, this brand has been experienced a strong sales in China in year 2008. We hope that Fiesta should surpass the 100,000 units mark and boost Fords overall 2009 China sales. As the incentive provided by the Chinese Government and ongoing difficulties of GM, Ford we believe can easily capture the market and this is the best time to avail this opportunity for Ford to steal the market share and establish itself as the dominant American brand in China. Unlike China, India has a little growth opportunity for this automobile industry. It has been stated that sales of vehicles were holding at two million over the past two years in India. So like China, there is less chances for Ford to regain its strength in terms of gaining a huge market share and price. Furthermore, Ford was needed a huge capital investment in India to setup several plants if it wished to rise up production. According to the statistics, the monthly sales are exceeded 2000 units and Ford has its dealership in just approximately 80 Cities of India. Due to the magnitude of uncertainty, we do not recommend Ford to invest in India market at this time. But we recommend that Ford should never ignore India market because of its intensive area and this opportunity should be kept in Companys pocket or it can be used in defensive manner.