FORD Business Analysis Part I
Through conducting a SWOT and stakeholder analysis as a mutual fund manager, this assessment will determine if Ford Motor Company should be included in the portfolio. The strengths, weaknesses, opportunities, and threats will be identified and discussed through the eyes of a possible investor. In addition, the internal and external stakeholders of the company will be reviewed and assessed on how well Ford has met those needs. The decision is based on the information gathered from this analysis. Background of Ford Motor Company
In 1903 Henry Ford and three partners founded the Ford Motor Company. As a young man he developed a passion for the internal-combustion engine. Henry Ford’s vision for the future was to create a vehicle inexpensive enough for everyone to afford (Lamm, 2003). The Model T created the assembly line and is considered a blueprint for manufacturing today. Henry fought through many challenges and won the Seiden patent, which forever changed the automobile industry and made its mark in history. Ford Motor Company has become a product of its history. Each decade the company has experienced ups and downs; however, always have managed to keep its name up there in the rankings. Consumer Reports (2009) reports Ford Motor Company currently owns Ford, Lincoln, Mercury, Volvo, and 13.4% of Mazda. They operate primarily in North America, Europe, and Asia. The company is composed of automotive and financial services through Ford Motor Credit Company. In 2011, revenues reportedly reached $136,264 million while profits reached $20,213 million and has ranked among the top 10 of the Fortune 500 list for 50-plus years (CNN, 2012). This is a 5% increase in revenue and a 4.8% increase in profit compared to the previous year. This increase in profit and history of challenging times is the premises for this business analysis. SWOT Analysis
The strengths, weaknesses, opportunities, and threats of Ford Motor Company are assessed below to determine if Ford will be added to the investment portfolio. Ford currently has a decent portfolio with 2011s profit margin and a wide range of product diversification; however, multiple recalls and fluctuating consumer demands have had an adverse impact on the financial and operational conditions. Strengths of Ford Motor Company
Ford spends a great deal of time and money on research and development is at the forefront of the company. “The company operates 56 engineering, research and development centers worldwide. Ford maintains extensive engineering and R&D centers in Dearborn, Michigan; Dunton, England; and Aachen and Merkenich, Germany,” (“Ford Motor Company,” 2012, p. 5). The strength of R&D includes everything from customer satisfaction, safety of the consumer, software development and design, and performance of fuel efficiency. It has been noted the company spent $5.3 billion on R&D in Fiscal Year 2011 (“Ford Motor Company,” x2012, p. 5). Ford is a strong leader in smartphone applications. In 2010 “Ford introduced MyFord Touch and the next-generation of SYNC technology that would help in accessing and personalizing vehicle settings and functions,” (“Datamonitor: Ford Motor Company,” 2010, p. 5). This application programming interface technology combines touch, graphic, and voice user interfaces. Ford is leading the industry with these interfaces and is quickly becoming the preferred vehicle accessory. The company also portrays a widespread portfolio and has a growing worldwide dealer network. In addition to 56 engineering and R&D centers the company operates 69 manufacturing plants, 41 distribution centers and warehouses, and 110 sales offices globally (“Ford Motor Company,” 2012, p. 5). With so many manufacturing plants, this allows growth of new product launches to stay competitive. Ford produces vehicles in the range of small, medium, and large. They also...