FORD COMPANYBY : JUNE, MU, YOLANDA, KELLY, BENJAMIN

Part 1: The

American

automaker

PRESENTATION OF THE COMPANY

HENRY FORD

HISTORY OF THE STRATEGY

KEY INFORMATION

THEIR ACTIVITIES

ARRAY OF PRODUCTS

Henry

FORD

“ Henry Ford created

the Ford Company

with only 28 000$

dollars in cash ”

1863 –1947

Company’s location

Headquarters – “The glass house” Location – Michigan, US

Key executives

William C. Ford Jr – Executive Chairman Alan R. Mulally – CEO

History of the development

Production of a single product – Ford T

Concentric diversification strategy

International competition strategy

1908

1917

1989

Ford T

Key information

Ford company headquarters are based in Dearborn, Michigan

5th largest car company worldwide, with an annual profit of 5,6 billion $ (2012)

Ranked 9th on the 2012 Fortune 500 list

About 224 000 employees working across 6 continents

A total of 90 plants

Their activities

Products

Cars

Automotive spare parts

Services

Vehicle leasing

Vehicle service

Automotive Finance

Array of brands & products

Range of car

Cars

Crossovers & SUVs

Trucks & Vans

Their brands

Shareholders of

Mazda

Aston martin

Changan

Ford Focus Ford Expedition Ford F-150

Part 2

THE VISION & MISSION OF THE COMPANY

THE VALUES

”

“ Being the world's leading

Consumer Company in

automobile industry

FORD COMPANY’S VISION

The MissionIn resume:

Restructuration of the relation

between all the actors who work

together

Anticipating consumer need

Creating excellent products

Having a sustainable growth that drives profits

Ford important values

Customer satisfaction

Own media and information center

Employees first Global Pulse and

engagement survey

Negotiated agreements with labor unions in 17 countries globally.

HR technologic platform

Respect and continuous

improvement

Respect the importance of

dealers

The Ford academy driving skills

Emphasize the innovation

Part 3

ANALYSIS OF THE EXTERNAL ENVIRONMENT

MAIN COMPETITORS

INDUSTRY ENVIRONMENT

MACRO ENVIRONMENT

Main Competitors

General Motors210 000 employees

4,7 Billion $

Volkswagen570 000 employees

6,8 Billion $

Toyota320 000 employees

5,2 Billion $

Industry

environment Industry rivalry

VERY HIGH

Threat of new entrants

LOW

Buyer power

VERY HIGH

Power of substitutes

HIGH

Supplier power

RELATIVELY LOW

Porter Five forces

Michael Porter

Macro environment – P E S T

Political

Economic

Social

Technological

Political

•Foreign laws and trade regulations

•Different labor Unions

Economic

•Oil price fluctuations are difficult to manage

•Financial crisis of 2008

•Potential growth on foreign market (China, Russia, UAE …)

Social

•Consumer attitude are evolving – Green cars

•Consumer habits are different in every countries

Technological

•Intelligence system on-board

•Fuel-efficient vehicles

•Electric vehicles

Trends

Part 4

THE CURRENT BUSINESS STRATEGY

5Q

MATRIX BCG

MATRIX SWOT

CREATING VALUE

FORD’S COMPETITIVE ADVANTAGE

CURRENT STRATEGY

The five key

questions of

business strategy

Q1 : Growth and profitability

• Revenue 5 years average growth : 0,09%

Q2 : Products and services

• Automotive and leasing activities

Q3 : Customer and geographic markets

• Worldwide, especially China, Russia and UAE

Q4 : Generic strategy

• Focus and the quality and innovation

Q5 : Position in the industry

• Become industry leader in China and exceed GM on the American market

Matrix BCG

• Most valuable product

• Ford invests a lot on carCars

• Similar to cars market

• Hard competitionSUVs

• Hard competitionTrucks

• Market is growing up

• Still not mature enough

Electric cars

Matrix SWOT

Strengths

- Good reputation

- Number of dealers

- Efficient Hybrid car

- Manufacturing facilities across 6

continents

- Large range of cars

Weakness

- Car recalls

- Trucks market shrinking

- Firing of employees

- Weak North American market

Opportunities

- Hybrid car

- European and Asian market

Threats

- Harder competition

- Oil prices fluctuation

- World economy

- Material price increase

From Michael Porter (1979)

“ Business strategy is about creating

value ” Chap1 page 36

For customers

1. Focusing on the quality and safety

2. Performing customer care service

3. Ethical consumption – Green energy

4. Retailers all over the world

5. Latest technologies

Objective : Create customers loyalty

Ford’s competitive advantages

Intangible

resources

Reputation

5Th biggest automobile manufacturer

Recognized brand for tradition,

quality and safety

Important relationship with suppliers

and dealers

Human

Specific management of talents

Diverse work force

Tangible

resources Physical resources

Important manufacturing capacity and

retailing shop

High technologies machinery and equipment

Financial resources

Significant borrowing capacity for operation

(14,4 billion $ between 2008 – 2012)

Organization

capabilities

Well organized in the talent

acquisition and team management

The organization of the whole company is very efficient. Each plant

is built to give a very flexible supply

chain. Each service are deeply

connected amongst themselves.

Respond quickly to changing market

needs

The relationships between strategy,

environment and capabilities.

Macro and industry

environment

Business strategy

Organisational capabilities

“ The only real mistake is the one from

which we learn nothing ” Henry Ford

Past strategy

Old approach “ Bigger is better ”

Corporate orientated strategy

Mobility strategy to determine the long

term profitability

Current strategy

New approach “ Less is more”

Sold off Jaguar, Land rover and Volvo to pay

off their debts

A very strong sustainability strategy

Accelerate the development of hybrid and

fuel-efficient vehicles

Reorganized their marketing strategy,

following the market and the type of car

The end – Questions ?