BUSINESS ANALYSIS OF FORD MOTORS COMPANY
Ford Company (Ford) is one of the largest companies that produce vehicles globally. It manufactures different kinds of automobiles and distributes them to more than two hundred markets across all the continents. The company has many brands which have been developed in the years of its operations. Some of the brands of automobiles manufactured by Ford include Aston Martin, Ford, Jaguar, Land rover, Lincoln, Mazda and Volvo (Goss, 2008, p. 35). The company’s operations are majorly in the United States of America and Europe but it has branches all over the world. It has its headquarters in Dearborn, Michigan and it has more than 300,000 employees in all its branches and subsidiaries. According to Goss (2008, p. 34) the company recorded a net profit of $6.6 billion in 2010 which was an increase from the $2.7 billion dollars that was recorded in 2009. It also reduced its debts from $33.6 billion to $14.5 billion. This report will major on business and financial analysis of Ford Company and give recommendations to improve the operations of the company. The report will utilize different models such as the Porter’s competitive forces, the PESTEL analysis and the SWOT analysis. The report will give full analysis and description of the company profile, its history, its business profile, the products and services it offers and its organizational structure. The comparative analysis of Ford and its competitors such as General Motors and Toyota will also be done in the report and the company’s SWOT and financial analysis. The report will also give recommendations to the company on how to improve its operations
History of the company
Ford was established in 1903 by Henry Ford and other associates and it made its first automobile model and also making its first shipment in the same year (Keasley, 2005, p. 40). The famous T model was launched five years later in 1908. In 1917 the company upgraded to trucks and tractors which were highly used in farming and construction activities. The company started producing luxury vehicles after acquiring the Lincoln Motor Company. Ford Motors went public in the year 1956 and before the end of ten years it produced one of its most famous and successful cars, the Thunderbird. The company expanded its horizons in 1967 when it established Ford Europe. The expansion continued for several years throughout Europe and Asia. In 1987 Ford acquired the Hertz car rental business by helping in the formation of the Park Ridge Corporation. The acquisitions of Ford continued as it experienced continued growth and in 1990 it acquired Jaguar. In 1999 another acquisition was made of the repair of Kwik-Fit and Volvo’s passenger vehicle business was also acquired later in the year. In 2000, it acquired Land Rover from BMW and it also spun off its Vieston automotive components. In 2002 and 2003 Ford made its presence bigger in China. Keasley (2005, p. 39) states that Ford entered into a joint venture agreement with the Changan Automobile and ensured that the Changan Ford assembly plant was in full operation and it produced the Fiesta in 2003. Later in the year the Ford services in Thailand also became operational. Ford had also ventured into sports cars and in 2004 it sold Cosworth, its main sport technology engineering company and Jaguar Racing and also its formula one team. In 2005 it launched the F-series super duty and the Expedition King Ranch. The string of innovations has continued to date. In 2006 Ford posted its biggest operating loss to date, $12.6 billion (Keasley, 2005, p. 36). In the same year, Allan Mulally was hired as CEO and took over the company at the top of failure. He restructured the company under a campaign titles “The Way Forward”. This plan involved the closure of seven assembly plants and strategic orientation towards “one ford”. This strategy focused on creating a standard Ford...
Connelly, Mary, "Ford 's Biggest Job: Lift Lincoln," Automotive News, July 31, 2000, p. 23.
Data from: Ford Motor Company form 10k
Data from: European Automobiles Manufacturers Association, located at http://www.acea.be/index.php/news/news_detail/new_vehicle_registrations_by_manufact urer/
Data from: Ford annual reports located at http://www.ford.com/doc/annual_report.pdf
"Ford: Will Slow and Steady Win the Race?," Business Week, May 10, 2004, p. 43.
Gross, Ken. 2008. "Ford: Big, Bigger, Biggest," Automotive Industries, July 2000, p. 64
Keatley, Robert, "Ford Reorganizes to Stay Competitive and Reach New Markets in the World," Wall Street Journal, July 22, 2005, p. A4
Morris, Betsy, "Can Ford Save Ford?," Fortune, November 18, 2010, p. 52
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