Ford Space Matrix

Topics: Investment, General Motors, Automotive industry Pages: 2 (422 words) Published: February 10, 2011
Financial Strength | Ratings|
Return on investments is high, increasing to 5.86%.| 2.0| Liquidity Ratio (Cash) increased to 0.98| 3.0|
Inventory Turnover is high, increasing to 13.2.| 1.0|
Working Capital improved to $23.55.| 3.0|
Target EPS for 2011 of 1.89 was achieved.| 2.0|
Ford reported a 6.8 percent sales increase in December 2010| 4.0| | 15.0|
Industry Strength|
The growth potential is very high most especially for the existence of small cars like Focus.| 5.0| Profit potential is high due to the needs of cars.| 2.0|
Financial stability is low. Due to the increasing prices of fuel in the world market and increasing prices of materials needed.| 3.0| Technology is rapidly developing. New cars and styles were selling out to the market. Ford for being an innovative one in making their cars eco-friendly makes them outsold other companies like G.M in February 2010| 2.0 | Resource utilization is low due to the increased price of materials that are needed for production. Some companies like Ford shift for being eco-friendly to save and utilize the limited resources. | 4.0| New comers in automotive industry have difficulties to compete to the large and known logo in the said industry. Since Ford is the pioneer to the industry.| 3.0| | 19.0|

Environmental Stability| |
Relatively low flexibility in adapting to new technology| -5.0| Interest rates have increased| -2.0|
Demand declined due to economic conditions| -3.0|
Price difference between products is not that far| -3.0|
Capital intensive and high capitalization industry disabling entrants| -4.0| Close competition between company rivals| -5.0|
Risk is minimized due to diversification| -3.0|
| -25.0|
Competitive Advantage| |
Ford is increasingly winning new customers from competing brands| -5.0| Ford quality jumps 11 percent, soaring above the industry’s 2 percent improvement.| -4.0| Six Ford vehicles...
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