Ford Motor Company - 1

Topics: Ford Motor Company, Automotive industry, General Motors Pages: 13 (4402 words) Published: September 10, 2012
FORD MOTOR COMPANY
A Case Study
21715
Autumn 2012 - Weekly

Individual Assignment
Strategic Management
Due: 2nd April 2012

CONTENTS

1.0EXECUTIVE SUMMARY3
2.0FORD COMPANY STRATEGY4
3.0ANALYSIS OF ISSUES AND OPPORTUNITIES5
3.1PORTER'S FIVE FORCE ANALYSIS OF THE AUTOMOTIVE INDUSTRY5 3.2PESTEL ANALYSIS OF THE AUTOMOTIVE INDUSTRY6
3.3 SWOT ANALYSIS OF THE AUTOMOTIVE INDUSTRY7
3.4FUTURE KEY ISSUES AND TRENDS IN THE AUTOMOTIVE INDUSTRY8 4.0COMPETITIVE STRATEGY FOR FORD8
5.0STRATEGIC CONTROL AND LEADERSHIP9
6.0FORD IN AUSTRALIA10
7.0RECOMMENDATIONS12
8.0REFERENCES13
9.0BIBLIOGRAPHY14

1.0EXECUTIVE SUMMARY
Ford motor company manufactures or distributes automobiles across six continents. The company's automotive brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company. Under the leadership of CEO Alan Mulally, Ford Motor Company transformed their manufacturing operations to enable a complete turnaround of fortunes between 2008 and 2010. In 2010 it announced a profit of $2.7 billion dollars,1 its first since 2005, and sales during that year made it the world’s top-earning automaker.2 In 2011, the company has seen steady growth and now, in 2012, has posted a 14 percent increase in February US sales versus 2011 levels.3 In 2012, the focus for Ford Motor Company will not be on recovery, but rather on innovation and growth. The aim of this case study will be to analyse trends and issues in the automotive industry and particularly Ford Motor Company, to investigate the choices of strategies for Ford Motor Company and to discuss the effect of leadership in implementing these choices. It will be seen that that the three industry forces that are most critical to Ford currently are economic, ecological and competitive. In contrast, locally, the strategy of Ford Australia continues to be focused on recovery. With the slump in demand for larger cars, Ford Australia cut its Victorian workforce by 240 in 20114 and received $42 million in funding from the federal government and then again $103 million from both Detroit and Canberra in January 2012.5 Continued government subsidies are not sustainable in the long-term and so the choices for Ford Australia will be analysed and recommendations made.

2.0FORD COMPANY STRATEGY
The Ford corporate website7 promotes a "One Ford" plan with the mission stated as ''Ford Motor Company is focused on creating a strong business that builds great products that contribute to a better world.'' Mulally's "One Ford" approach is to provide an enthusiastic, yet sharp focus for everyone in the organisation and consists of: One TeamPeople working together as a lean, global enterprise for automotive leadership as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council and Community Satisfaction One PlanAggressively restructure to operate profitability at the current demand and changing model mix; Accelerate development of new products our customers want and value; Finance our plan and improve our balance sheet; work together effectively as one team One GoalAn exciting viable Ford delivering profitable growth for all Mulally then set about developing key behaviours for Ford which would be role modelled by his leadership team at all levels. They are described as:

Foster Functional and Technical Excellence
Own Working Together
Role Model Ford Values
Deliver Results

Mid-2012, Ford will also launch its "Go further" campaign which will reflect the "company's product strategy to save costs and improve efficiencies by building a single vehicle for each segment worldwide rather than its old approach where it would have different models in different markets." 11 The Ford approach is encompassing, focused, fun and has been successful so far. This case analysis will recommend further strategy in keeping with the current Ford values and vision while being...

References: 1. Collins, J (2010), Business: Ford – A Business strategy to deliver success, http://www.ecademy.com/node.php?id=143697
2. Trudell, C (2010)
3. Wernle, B (2012). Ford’s Feb sales rise 14%, led by Focus F series, March 2012. http://www.autonews.com/article/20120301/RETAIL01/120309980
4. Packham, B (2011), Ford to cut 240 jobs as sales of larger vehicles drop
5. Glover, P (2012), Ford avoids near-death with $103m lifeline. PerthNow, January 12. http://www.perthnow.com.au/business/business-old/ford-avoids-near-death-with-103m-lifeline/story-e6frg2qu-1226240592970
6. Dess, G et al (2012)
7. http://corporate.ford.com/our-company
8. Glover, P (2012), Compact cars in Cruze Control
19. Wikipedia, Mazda 3, http://en.wikipedia.org/wiki/Mazda3
20. ST.Motoring (2012), GM Holden gets $363 million Australian government handout, March 12 http://www.straitstimes.com/Motoring/Story/STIStory_780914.html
21. Dowling, N (2012), Ford will axe Falcon and Territory, January 12 http://www.carsguide.com.au/news-and-reviews/car-news/ford_will_axe_falcon_and_territory
9.0 BIBLIOGRAPHY
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