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 locationHeadquarters – “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 2THE VISION & MISSION OF THE COMPANY THE VALUES

”

“ Being the world's leading Consumer Company in

automobile industryFORD 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 3ANALYSIS OF THE EXTERNAL ENVIRONMENT MAIN COMPETITORS INDUSTRY ENVIRONMENT MACRO ENVIRONMENT

Main Competitors

General Motors210 000 employees4,7 Billion $

Volkswagen570 000 employees6,8 Billion $

Toyota320 000 employees5,2 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 customers1. Focusing on the quality and safety2. Performing customer care service3. Ethical consumption – Green energy4. Retailers all over the world5. 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 ?