The Ford Motor Company Founder (1)

7/31/2019 The Ford Motor Company Founder (1)

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The Ford Motor CompanyFounder:

Ford Motor Company was founded in 1903 by HenryFord in Detroit, MI. Not only did Ford revolutionize thedevelopment of the automobile as a product, he is alsothe visionary behind the idea of mass production. Ford'sability to make automobiles affordable for the masses is

cited as a driving force behind both the automobile

industry and the creation of a middle class in America.
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FORD ANALYSIS

Ford business model:

Suppliers Manufacturer DistributionChannel

Customers

order

delivery


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Our Vision

To become the world's leading consumercompany for automotive products andservices.


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Core competencies

Our business is driven by our consumer focus, creativity,resourcefulness, and entrepreneurial spirit.

We are an inspired, diverse team. We respect and valueeveryone's contribution. The health and safety of ourpeople are paramount.

We are a leader in environmental responsibility. Ourintegrity is never compromised and we make a positivecontribution to society.

We constantly strive to improve in everything we do.Guided by these values, we provide superior returns to ourshareholders.


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Current use of AI in Manufacturing atFord

AI applications for manufacturing Bring appropriate knowledge about manufacturing

to the proper people at the right time

Improve manufacturing efficiency Reduce workplace injuries through better up-front

ergonomics analysis Make assembly build instructions available to

operators in other languages Develop common framework for representing

knowledge and exchanging it between differentsystems


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STRATEGIES - Use futures technologies in todays cars. -Produce smaller cars and vehicles - Strategic alliance - Costreduction - Market expansion with global partnerships - To beexist in every single country - Produce cars for every single

economical level - To have affordable prices for all vehicles -To have loyalty of brand


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Strengths S - Globally and strong placedtrade name - The subsidiary, Ford MotorCredit Company, offers auto financing toboth dealers and customers globally - AnAmerican icon for over a century (with along history) - Icon vehicles such as the

Mustang


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An American icon for over a century (with along history) - Icon vehicles such as theMustang - Good R&D department - Very bigworker foundation with greatly educatedmotor engineers - One of the largestautomotive producer - The company

operates about 108 plants globally andproduces


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uch models as Ford (Lincoln, Mazda, Mercury,and Volvo) - Fords Motor craft division offers partsfor vehicles through the companys Web site

(www.ford.com). - Ford Motor Company isnumber three in market share in the United States.- Perceived as being an affordable brand namecatering to a variety of consumer needs and want.

- Producing some different ford car models indifferent countries as like ford Mondeo in Europe


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CORPORATE LEVEL 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 makingdecisions 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 mayinvolve 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 themost promising LOB's, keeping the other core businesses healthy, initiating turnaround efforts inweak-performing LOB's with promise, and dropping LOB's that are no longer attractive or don't fit intothe corporation's overall plans. It also may involve supplying financial, managerial, and otherresources, or acquiring and/or merging other companies with an existing LOB.

* Pursuing ways to capture valuable cross-business strategic fits and turn them intocompetitive advantages -- especially transferring and sharing related technology, procurementleverage, operating facilities, distribution channels, and/or customers.

* Establishing investment priorities and moving more corporate resources into themost attractive LOB's.


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Two Legs of Sustainable Personal

Transportation Use Less Fuel Reduce Gross Energy Consumption Weight, friction, aerodynamics, auxiliary loads Increase Instantaneous Powertrain Efficiency

Advanced Combustion (eco-boost, HCCI ) Improved Driveline (dual-clutch transmission )

Increase Average Powertrain Efficiency HEV Powertain Electrification

Use Renewable Fuel Renewable Chemical Fuel

Alternative Source of Fuel Does Not Equate toAlternative Chemistry of Fuel

Renewable Electricity Fuel Electrification


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r rage

Todays Grid & Future HEV P/T inTodays Platform*

0.33 kWhe/mile0.200 kWh/km

Coal: 211 g/kmNat. Gas:127 g/kmUS Avg.: 130 g/km

SR-NG: 116 g/kmElectrolysis: 344 g/km

41 mpg

IncludesTransmission Loss

Includes Refining

62 mpg

*transitional scenariomeasures impact of newvehicle technology with todays

energy infrastructure.

Oil: 145 g/kmNG: 114 g/kmSR-NG: 173 g/km

Electrolysis: 517 g/km

170 g/kmtoday

Highly-optimizedSeries HEV


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Ford Challenges

Meeting aggressive CAF and CO2 standards without

compromising attributes and remaining profitable. Light-weight material (cost, manufacturing, safety) Powertrain Electrification

HEV (cost) PHEV (cost, cost, cost) BEV (cost3, range, re-charge time)

Defining long-term (post-2020) platform and productstrategy in face of uncertain CO2 policy and renewablefuel availability. Is Ethanol the only renewable fuel? Will CAF be corrected for renewable fuel? Will electricity be treated as zero-CO2? How might non-vehicle CO2 emissions be tracked, and what is

anticipated strategic impact?


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Ford Faces Severe Market and

Customer Challenges

Since 60% of Fords manufacturing cost is explained by purchased

parts and materials, Ford is under tremendous pressure to achievelower cost solutions.

Reduced sales and prices

Consumers demand higher-value cars atlower prices

Downward pressures on price

High cost of compliance (e.g., new fuel-emission regulations)

Need to increase partnership with

suppliers and vendors

Increased foreign and domesticcompetition

Shifting consumer demographics

Industry-wide over capacity

Increased attention to environmentalconcerns

Increased reliance on automotive

systems over just parts

What They Mean to Ford MotorsCurrent Challenges

FORD: BACKGROUND


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Fords Procurement Process Suggests Several Best Practices

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

Delegate quality inspection to trading partners:

Our goal is to have our suppliers be quality-independent


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The Ford Motor Company Founder (1)

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