This purpose of this report is to analyze and evaluate the factors that impact the performance of Ford Motor Company as an organization by examining the relationship between the nature of the organization and its external environment using SWOT, PESTLE and PORTERS FIVE FORCES. 1.2 Context
Ford Motor Company is one of the largest automotive manufacturers in the world. The company manufactures and distributes automobiles across six continents. With 80 manufacturing facilities worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury and Volvo. The company conducts its business through two divisions: automotive and financial services. Within these divisions, Ford's automotive business is further classified into reportable segments based upon its geographical and organizational structure. The automotive business division consists of the design, development, manufacture, sale and service of cars, trucks and service parts. Through this division, Ford produces a wide range of vehicles including cars for the small, medium, large and premium segments; trucks; buses/vans full-size pickups; sport utility vehicles (SUV) and vehicles for the medium/heavy segments. In Financial Year FY2009, the company sold approximately 4,817,000 vehicles at wholesale throughout the world. The company's automotive business is organized into the following segments: Ford North America, Ford South America, Ford Europe, Ford Asia Pacific and Africa, and Volvo. Ford UK (2011) 1.3 Structure
The main issues addressed in this report are to critical evaluate the key factors that impact Ford Motor Company performance using SWOT, PESTLE and PORTERS FIVE FORCES and also to provide strategic recommendations for the senior manager of the Ford Motor Company.
2. Swot Analysis
(I don’t have any books with me, can u do a one paragraph on what a swot analysis is and its advantage or use to an organisations strategy.) Strength:
Ford innovation has made their vehicles better with changes like Ford kinetic design, and developed new technologies that improve the driving experience. These technologies include Ford PowerShift transmission, EcoBoost, Ford Precision Drive, Ford Comfort and convenience and now the iosis-Max a Ford model. Ford UK (Ford Innovation, 2011)
Customer relationship management:
Ford Customers communicate through mail, e-mail, toll-free phone, and then reached back through focus groups and market research while tracking customer satisfaction. Feedbacks are also received from customers about the company and their products, through the company’s official website, and the social media, thus providing valuable communication through social media and an interactive website. Corporate Ford (Sustainability report, 2009/2010). Weakness
Low customer retention and product recalls:
Ford has been struggling to maintain consistent sales numbers. The first quarter of 2004 sales were twice what was expected and far more than the historical rival General Motors, but the rest of the quarters have been lagging behind. The company recorded revenues of $118,308 million in the financial year ended 2009 (FY2009) a decrease of 18.5 per cent compared to financial year 2008 (FY2008). (Data monitor, 2010). There has been a recall of Ford vehicles due to manufacturing and designing problems ranging from faulty ball bearing to bad window switches and defective firestone tires (Data Monitor, 2010). The company has also recalled recently 144,000 F-150 pickup trucks due to inadvertent airbag problems so far, they have been no deaths but injuries have been reported.(Jerry Hirsch, 2011). These recalls have indicated decline in product quality which could negatively affect the consumers’ confidence and cause a strain in sales Operations Management:
Ford operations in North America have gradually declined. The company has undertaken several cost reduction programs to save...
Please join StudyMode to read the full document