Based on the data presented in the Table 2, it is revealed that Ford is a company that is good for the investment opportunity. The profitability ratios are one of the key ratios to determine the financial health of a company. Based on the data in Table 2, Ford Company demonstrates the increase in the profitability ratios between 2008 and 2011. For example, the OA increase from the loss of 5.9% to the gain of 11.78% between 2008 and 2011. The company recorded a loss in the OA in 2008 due to the economic crisis facing the United States during the period. However, between 2009 and 2011, the company recorded the increase in the OA. Similarly, the company recorded the increase in the Net Profit Margin from 2009 and 2011. The company recorded 544% increase in the net profit margin between 2009 and 2011 revealing that the company recorded the…… [Read More]
Ford Motor Company
Over the last several years, Ford Motor Company has been through a tremendous amount of challenges. This is because they were adversely impacted by the financial crisis and consumers switching to fuel efficient vehicles. Despite these issues, the firm has continued to adapt and become stronger. However, there are renewed worries that a secondary slowdown in consumer spending could adversely impact the automaker. To fully understand what is happening there will be a focus on the pre-tax operating profits, key financial ratios, strategies to improve performance and how the company's refusal of bailout funds may have impacted their results. Together, these different elements will highlight the current fiscal state of Ford. (Hiraide, 2012)
Based on the most recent quarter pre-tax operating profit, project the profit for the next four (4) quarters assuming that the U.S. economy stays the same as today, declines into a recession and modestly…… [Read More]
Nevertheless, the company needs to move on its own as well in a continuous process of internal reform and different approach to the market. It is clear than many of the automobile producers, Ford included, have based so much of their production activity on large vehicles, adapted to the then-necessities of the U.S. market, but nevertheless unsuited for the economic trends that saw high oil prices and an increasing concern for the environmental problems such cars caused.
Ford seems to have been one of the car producers that eventually realized the impact and danger of such a policy, but the current economic and financial crisis affected its operational activity and the viability of a statement declaring valid its change of path. Investments have since gone towards an attempt to change this approach and diverse the portfolio of product sufficiently for the company to survive.
Most likely, the right combination of…… [Read More]
ford Motor Company Analysis
Ford's History, Development and Growth
As Ford Motor Company itself proudly declares, "The dream became a business." The inception of Ford is one of the critical steps in the industrialization of America and the West in general. According to Ford's public relations department, "Ford Motor Company entered the business world on June 16, 1903, when Henry Ford and 11 business associates signed the company's articles of incorporation. With $28,000 in cash, the pioneering industrialists gave birth to what was to become one of the world's largest corporations. Few companies are as closely identified with the history and development of industry and society throughout the 20th century as Ford Motor Company." (www.ford.com)
As with most huge multinational corporations, Ford Motor Company's beginnings were humble. In fact, the car manufacturer suffered through many nervous moments in its infancy. The earliest record of a shipment is July 20, 1903,…… [Read More]
Ford Motor Company
Business Analysis Ford Motor Company
Ford Motor Company is 4th on Fortune 500 List and 4th on Global 500 List and is the 2nd largest auto manufacturer in the world. Ford Motor Company has the advantage of Ford Motor Credit however, due to Firestone tire recalls the prices are the lowest prices in years with cash reserves sunk to $4.1 billion and $13 billion on acquisitions with $3.5 billion to cover recall of tires. Ford Motor Company is Environmentally friendly including cleaner engine emissions and is presently working with environmental groups to clean the environment and is vested in solar power.
Ford Motor Company is focusing on cost reduction programs and is building smaller vehicles, which are more fuel efficient to balance its global portfolio and stay abreast of the worldwide shift in demand. While the company should be profitable, it will be a lower level of…… [Read More]
Ford Motors Company
Ford Motor Company is an American Multinational company that was founded by Henry Ford in the year 1903. Ford's headquarter is in Dearborn Michigan in the United States where it specializes in the production of automobiles both commercial and luxury. Under its commercial category of vehicles, it trades under the Ford brand while its luxury cars trade under the Lincoln brand. Ford Motors is a well established company which is listed in the New York Stock Exchange and has served many markets around the world with superior brands that have continued to dominate in several regions across the globe.
Apart from producing its own brands, the company has ventured into several other companies where it enjoys its presence in terms of having stake in other automobile manufacturers. The company enjoys stake in Mazda of Japan as well as Aston Martin of the United Kingdom. The company also…… [Read More]
Ford Motor Company was an early pioneer of industrial production, with Ford having developed the assembly line production of automobiles and used this to capture a dominant position in the U.S. automobile market. The company has remained dominant but fell upon difficult times in recent years due to a combination of poor product/marketing and high pension obligations. The company has begun to revive its fortunes in the past couple of years, however, and is once again pursuing leadership in the automobile industry.
Ford remains focused on the consumer automobile industry. The company sells a variety of cars, trucks and vans in dozens of markets around the world. The products are often tailored to local markets (i.e. smaller cars in Europe). Ford also generates a significant portion of its income from its financial arm, Ford Credit (Ford.com, 2011).
The GDP is the gross domestic product and is the aggregate figure describing…… [Read More]
Ford Motor Company: The future of H
What are the key business strategies?
Of all of the troubled 'big three' automakers, Ford was the only one not to need major financial help and government-supervised restructuring. This was seen partially as a result of Ford's commitment to incorporate sustainability into its car designs far earlier than either General Motors or Chrysler. "Ford's current strength stems from what was a literal bet-the-company decision in 2006 to borrow $23.6 billion, putting even the company's fabled blue logo up as collateral. That money helped Ford move more quickly than General Motors or Chrysler to bring out new lines of more fuel-efficient vehicles, and, more crucially, provided a cash cushion when the car market tanked along with the economy in late 2008" (Ford Motor Company, 2010, The New York Times). Ford has sold off of its luxury brands like Jaguar, and divested most of its…… [Read More]
Ford Motor Company -- Flowchart Analysis
Ford Motor Company is one of the largest manufacturing companies in the global marketplace. Fiscally, Ford has had two major recent periods; one of prosperity, one of decline. Period #1, the late 1980s to 19979, showed a steady pattern of growth, about 5-7% per annum. Sales in 1998 were down 6%, up 14% in 1999, giving the decade an average of 5.4% growth and a profit margin slightly above the industry of 7-9%. Costs of goods remained consistent at around 72%, and debt/leverage ratios steady. Since 2000, though, and most especially since 2007, Ford has seen its sales and profits diminish, its international market share decline, and its ability to compete effectively erode. For the primary market segment of Ford, the automotive side, financial and marketing decisions are based on numerous trends: competitive pricing, cost of goods and projections, ability to recap money through…… [Read More]
Ford Motor Company was the only one of America's Big Three automakers to turn down government assistance in 2009. The company wanted to maintain its independence, and believed that the strategies that were in place were going to be sufficient to bring about the financial recovery of the firm. In the past couple of years, the company has revamped its product line, cut its expenses, and sought to take advantage of the growth in overseas markets.
What this presentation will show is that for the most part, Ford has experienced something of a renaissance in the past couple of years as the result of these strategies. The analysis will consist of a ratio analysis, an examination of the current economic climate and how that affects Ford's strategy, and a qualitative analysis of both Ford and the auto industry in general. But there is a bigger question that must be answered.…… [Read More]
Those five steps are:
Analyze the Situation and ask the following questions:
Are we making any major changes in our business process?
How do those changes impact our employees job functions?
hat information and training will our employees need to continue being successful in their jobs?
How will our employees best accept and integrate this information and training?
How do our employees learn?
How can we get this information and training to our employees?
Are there any corporate needs that are not being met?
Does our staff have the skills they need to do their jobs effectively?
Evaluate the Training in Place: This is inclusive of training materials, manuals new hire orientation material etc.
Identify Gaps: Identify what the company can provide and that which it cannot provide thereby knowing what assistance should be sought for.
Assess Options: After identifying what is needed assess options by considering the questions of:…… [Read More]
Ford Motor Company's Current Market Position
Quality Issues at Ford Motor Company
Human esources ole
Financial Impact of ecalls on Ford Motor Company
The Ford Motor Company was founded by Henry Ford in 1903 who along with 11 other investors signed the article of incorporation for the organization. Since then, the Ford name has experienced tremendous growth and has been awarded with substantial significance in the automotive industry. It is one of the largest car producers in the world, which distributes automobiles across six continents. Its primary operations are located in Europe and the United States. The organization employs more than 164,000 personnel. This analysis provides an overview of the organization as well as the issues that challenge the organization. Then, it will direct attention to the way in which the problem has in effect on the future viability of the organization. Lastly, it…… [Read More]
Ford Motor Company
Business and corporate governance plan for Ford Motor Company
Key components for corporate governance plans
Current issues for Ford Motor Company in corporate governance plan
Shortage of Parts from OEM Suppliers
Corporate esponsibility Committee
Define the current need for a governance plan
Ethical business Approach
ole of Stake Holders
Structured Decision making Process
Share Holder's Concerns
Accountability and Transparency
Development of corporate governance plan
Corporate Code of Conduct
Audit and isk Committee
Process for implementation and periodic assessment
The corporate governance plans are developed on the basis of business vision, mission, and strategy. The business cannot inherit the corporate governance required by the whole industry. The company specific practices and objectives as well as the degree of willingness for transparency and accuracy…… [Read More]
Ford Motor Company Annual eport:
Ford Motor Company is one of the leading firms in the global automotive industry that produces and distributes automobiles in six continents. Currently, the company has approximately 164,000 employees working in its 70 plants across the globe. While Ford Motor Company headquartered in Dearborn, Michigan, it has several automotive brands including Ford and Lincoln. Apart from its engagement in the automotive industry, the firm provides financial services through Ford Motor Credit Company. Ford Motor Company completed another year of enhanced annual operating profits resulting in its announcement for reinstatement of paying quarterly dividends. Through its delivery of best-in-class vehicles to customers worldwide, Ford Motor Company had an improved cost structure and strengthened balance sheet in 2011.
Main Sections of the eport:
The 2011 annual report for Ford Motor Company has been divided into various sections based on the different aspects of its businesses. The major…… [Read More]
Ford Motor Company
Alan Mulally has transformed Ford Motor Company from a firm that only a few short years ago was floundering in an industry-wide morass of mismanagement, inefficiencies and no sense of direction. Since assuming the helm at Ford he has devised a plan that identifies specific, communicated goals for both management and labor that ensures that the transformation from the brink of insolvency to profitability not only takes place, but does so with a minimum of distraction to the company's focus. Mulally understands that the company's competition is not only from Ford's direct competitors but that other competitive forces are at work as well. He also understands that Ford must adhere to a business-level strategy that includes all aspects of automobile sales; not just the ones that take place at the dealership's lot.
Considering the fact that Mullally seems to be the type of leader that is "involved…… [Read More]
With Mullaly saying, "As we come through the recession of 2008 -- 2009, were going to be a turbo machine when the economy turns around." This was occurring when the company was posting yearly losses of $14.7 billion in 2008. ("Integrating Cases,' n.d.) What all of this shows, is that the combination of the different leadership styles; would allow Mullaly to provide everyone with an honest assessment about: the current problems facing the company, what needs to be accomplished to rectify the situation and what the long-term effects will be. This is significant, because it highlights how the change in leadership style would help to effectively unit the entire organization behind these objectives. Therefore, Mulally should continue with his current style of leadership, as it is achieving the desired results. If he attempts to change leadership styles, it could create confusion within the company. ("Integrating Cases,' n.d.)
2010 Ford…… [Read More]
Ford Motor Company is one of the largest automotive companies in the world. They had total sales of over 5.6 billion cars worldwide in 2011 and have over 16% of total market share in the United States alone ("Market share and sales," 2012). Maintaining a presence of this magnitude requires a substantial network of supply for both parts and labor. It is also essential that they be able to sell their products throughout the world, not just in the United States, so a global presence and supply chain must also be maintained. Pressure to increase sales and extend brand recognition has caused increased pressure on the supply lines, while the ongoing economic conditions have made it more difficult to continue to improve revenue. In spite of these existing external and internal pressures, Ford continues to produce some of the best known models in the world, including the Mustang and Focus.…… [Read More]
Ford Motor Company was founded by Henry Ford in 1903 and from there has emerged as America's leading car maker. Ford also makes many other automobiles including trucks. The Subsidiaries of the company also operate in auto financing, thus having two sectors, Automotive and Financial Services. The Automotive segment refers to the operations of Ford at North America, and South America, Europe, Africa, Asia and the administration of Volvo. The Financial services are under the banner of the 'Ford Motor Credit Company and Other Financial Services.' ("Ford Motor Company NYSE; Cyclical Consumer Goods & Services/Auto & Truck Manufacturers," 2011) Some of the success that the company achieves now is rooted to its basic creation and maintenance of the best known production method and constantly updating the method. The famous Ford Assembly line stands the company in good stead although there have been a lot of labor and competitive issues with…… [Read More]
In October they are forced to half dividend. On the 17th October Ford posts its first consecutive quarterly loss in a decade. (C News Ford chief Jacques Nasser ousted).
Though overwhelmed by the situation ill Ford does his best to improve their financial situation and succeeds for a short while. ut Ford's true "revitalization" would only be brought about by the CEO who came after ill Ford, Alan Mulally (who is the present CEO).
Ford Motor Company started the last century with a single man envisioning products that would meet the needs of people in a world on the verge of high-gear industrialization. Today, Ford Motor Company is a family of automotive brands consisting of: Ford, Lincoln, Mercury, Mazda, Jaguar, Land Rover, and Volvo. The company is beginning its second century of existence with a worldwide organization that retains and expands Henry Ford's heritage by developing products that serve the…… [Read More]
All of our manufacturing facilities and major suppliers' facilities have attained third-party certification to the standard" (Environment, 2008, p. 2). The company is also actively engaged in ongoing improvements in the environmental performance of its facilities. For example, the company reports that it has reduced global energy use by 27% and global water use by 25% compared to 2000 levels (Environment). The company reports that it seeks to improve its environmental footprint in the following ways:
Working to provide effective environmental solutions;
Working to continuously reduce the environmental impacts of our business in line with the company's commitment to sustainable development;
Measuring, understanding and responsibly managing the company's resource use, especially materials of concern and nonrenewable resources; and,
Working to eliminate waste (Environment, p. 4).
Impact of Increased Sales or Increased evenue on Ford's Pricing Strategy and Market Potential.
Assuming that the existing market saturation levels in some of Ford's…… [Read More]
Ford: ecent Decision
Organization: Ford Motor Company
Nature: Global Automaker and owner of additional subsidiaries
Time Period: First and Second Quarters, 2011
Inputs Used: Global search features using ProQuest, Questia, Google Documents, The New York Times, Ford Motor Company website
Despite economic trials, Ford Motor Company has come out of some of the most difficult economic times for automakers in better shape than many other auto makers in 2011. In fact in April, 2011, Ford reported its largest first-quarter profits since 1998, particularly because of a shift to smaller, more fuel-efficient cars. This is a welcome shift and change in reporting since its decision to borrow almost $24 billion in 2006, which helped Ford move more quickly than GM or Chrysler to bring out new lines of more fuel-efficient cars, and even more important, a cash cushion when the entire automobile industry ran into problems in 2008. In addition, Ford…… [Read More]
There is an Earth Mother and a Sky Father that organize the universe; an evil-trickster or anti-hero that needs to be subdued, and a reason for humans to populate the earth. There are similar "issues" to explain: water, the sky, stars, weather, seasons, the movement of the sun, etc. -- all part of the functional consciousness of discovery -- whether that be stories in front of the evening fire to pass the time and culturally educate, or to set some sort of order for society and a way to organize thought and action (Bierlein, 1994)
Bierlein, J.F. (1994). Parallel Myths. Ballantine Books.
Campbell, J. (1991). The Masks of God, Vol. 2., Penguin.
Cushing, F. (2007). Outlines of Zuni Creation Myths. Kessinger Publishers.
Dalley, S. (2009). Myths from Mesopotamia. Oxford University Press.
Hamilton, V. (1991). In the Beginning: Creation Stories from Around the World.
Sproul, B. (1979). Primal Myths:…… [Read More]
(Ford Motor Company: eoom enables Ford to drive into new technology)
II. Marketing Strategies:
Target Market: Target Market 1
This market consists of institutional sales with large manufacturers or independent manufacturing divisions of corporations having a huge network of broker, dealer or distributor network. For these categories the ideal vehicle suited will be the sports wagon and minivans. Only last January, the managers publicized the Ford Fairline concept at the Detroit Auto Show as their vision a new 'people mover' being a minivan category of vehicle. The Fairlane was on Ford's Mazda6-based CD 3 platform. However the plan has developed to an analogous styled vehicle which is built on Ford's larger D3 platform that started with Volvo. The two are front-wheel-drive platforms. Through the period of 2010, Ford will depend immensely on these two car platforms. The initial three vehicles on the Mazda-based CD3 platform which are the Ford Fusion,…… [Read More]
Purpose of Income Statement
The purpose of an income statement is to convey to interested stakeholders the level of income that the company has. In general, financial statements are used to provide a consistent method of presenting financial information that is used by creditors and investors to learn more about the financial health of the company. The income statement focuses on the revenues and costs that the company has in its operations, telling the reader about the company’s ability to earn a profit (Accounting Tools, 2018).
The income statement can be evaluated on its own, but because it covers a particular time period, it also has value in conveying information across multiple time periods. A growing business, for example, will have that growth illustrated in its income statement, as its income and costs will grow over time. The income statement is therefore a valuable tool for regulators as well –…… [Read More]
The cash flow statement is the third major financial statement that is mandated by the Securities Exchange Commission. Every public company must produce a statement of cash flows that highlights the acquisition and disposition of cash, for operations, investment and finance. The cash flow statement can lend context to the income statement and balance sheet both, which makes it a valuable statement to examine. One key difference between the cash flow statement and the other two is that there are not many ratios with which to perform analysis. Analyzing the cash flow statement is a little bit more intuitive.
As with the other statements, the cash flow statement is produced to help provide transparency to an organization’s stakeholders, and assist with evaluating the financial condition of the company. There are key financial stakeholders such as the shareholders and the creditors, but many other stakeholders as well such as customers,…… [Read More]
Ford faces many threats. In terms of operational/strategic threats, the company faces intense competition in all of its markets. There is no product or geography where Ford does not face intense competition. This drives down margins and exposes Ford to the possibility of declining sales. The competitors in the industry are innovating at a rate faster than Ford generally is. This creates new and unique competitive threats. Ford is under threat from electric cars and self-driving cars, both of which threaten to completely transform the landscape for personal transportation in the coming years. Thus, Ford's position in the marketplace is very much threatened by new technology, and whatever competitors (old or new) that master the new technologies before Ford can expect to win market share away from Ford.
Vehicle emissions standards are occasionally a threat to Ford's business. These are not a major threat today -- but they were in…… [Read More]
There is little indication in Ford's financial statements that things are going to improve any time soon. The company actually hailed the 14.2% market share in North America as "the lowest market share decline in the past ten years" (Ford Motor Company, 2009).
Ford's financial position is nothing short of awful. The company's condition has deteriorated steadily over the past five years, and its performance relative to industry peers is generally poor.
Ford Motor Company
Avg Collection Period
Fixed Asset Turn
Total Asset Turn
Total…… [Read More]
World's Most Ethical Companies: Analyzing Ford Motor Company
The Ford Motor Company, herein referred to as Ford, is a U.S.-based multinational manufacturer of transportation vehicles, particularly luxury cars and commercial trucks. It was formed by Henry Ford in 1903 and has its headquarters in Dearborn, Michigan. The company currently ranks second among America's largest automakers; and is fifth in Europe, and eighth in the world. Cisco Systems, one of its largest technological partners, acknowledges that the company's high-level moral consciousness in the treatment of its stakeholders has contributed to its success year after year. This text outlines the various ways through which Ford demonstrates its moral responsibility to different stakeholders and examines how these acts contribute to the company's overall success.
Ford's Moral esponsibility towards Customers
Organizations have a moral responsibility to ensure that customers receive value for their money and are kept satisfied through high-quality products. Ford goes out…… [Read More]
Protecting this proprietary pricing process is critical for the future of Ford's ability to win sales into the future. Ford Motor Company must focus on how to alleviate the many potential areas of pricing itself and pricing processes being compromised. What's needed is a risk management plan aimed at the dealer channel to alleviate the many financial risks to Ford Motor Company from trimmings its dealer ranks throughout the United States.
Ford's Need for a isk Management Plan
The risks specific to the isk Management Plan will include the following key sections, highlighting the need to manage risks by the probabilities of their occurrence, according to isk Management completed by the Department of Energy as it relates to best practices in risk mitigation and disaster recovery al;so apply to Ford Motor Company's dealer channel Department of Energy (2005). While specific to another industry the applicability of these key concepts are…… [Read More]
Ford Motor Company is facing the challenge of a changing external environment in the long-run. In the short-run, business will continue more or less as usual, but in the medium to long run the company faces technological changes that will make electric cars mainstream, and will introduce driverless cars to the roadways, which will be a transformative development for society, one that might only be a couple of years away (Hars, 2016). Further, the costs associated with burning fossil fuels are likely to escalate, in particular the potential for carbon taxes, consumer rejection of burning carbon and a gradual shift in the first half of the 21st century towards different models of transportation. Ford will need to examine the long-run impacts of these trends to its business, and seek to find the right long-run strategy to build around for the future.
Ford Motor Company is a leading producer of…… [Read More]
Marketing Plan for Ford Motors Company
The logic is really very simple -- when a model is supposed to be for women, it has to be designed by women.
It is clear that cars are now being purchased in USA for both men and women, and many times, women have their own cars. This fact had been realized as early as 1956 when there was a model called Dodge La Femme for women to drive and probably that was the reason why it failed. (Women and SUVs) There was a difference in the thinking of men who designed the car and women who were supposed to drive it.
The market for cars among women is large and it had been 20% of the new vehicles during 1984 and this has gone up to 28% in 1990. The decisions are taken by them in 80% of the cases of purchase. (Women…… [Read More]
This doesn't really turn the attention away from those companies but instead reinforce their brand image. Ford needs to stop playing a "me-too" game. (Economist, 2006)
Ford is focusing more on its weaknesses than its strengths. For one, customers have yet to be convinced that Ford vehicles have any real strength but there is a long history of manufacturing behind Ford and it can certainly develop its core strengths which must not be ignored during marketing. Second, by focusing on its weaknesses, it seems even more vulnerable and hence drives potential customers away.
First Ford needs to be very realistic about its vehicles. It must conduct an impartial survey to find out what are the real complaints against its vehicles, which vehicles are still selling better than others and where it can beat the competition. It should not insist on promoting its vehicles as just as good as anything else.…… [Read More]
Ford Motor Company and its human resources management practice. The company's human resources strategy is very closely tied to its strategy. As with other automakers, Ford's labor costs can be quite high, but there are also related costs of labor, such as benefits and pensions that can result in the total labor cost today being very high, even when much of the company's production is automated. Ford also must work closely with its main unions in order to negotiate the terms of each contract, something that also influences the company. Ford seeks to compete largely as a cost leader in its industry, but needs to have relatively low labor costs in order to pursue this policy profitably.
The HR position at Ford constitutes a number of different tasks. Labor relations is listed as the foremost specialty within the HR department, and with good reason given how critical it is to…… [Read More]
Ford Motor Company
Objective of this report is to use Ford Motor Company 2012 Second Quarter to carry out research on the company's production inventory levels, price and sales data and operational cost information.
Ford Motor Company (Ford) is one of the largest global automotive companies. The company manufactures and distributes automobile across six continents, and the company operates financing business through Ford Motor Credit Company. At the end of the 2011 fiscal year (FY2011), the company recorded total revenue of $136 billion, an increase of 5.7% over FY2010. Ford Motor also recorded the total net profit of $20 billion at the end of the 2011 fiscal years recording the increase of 4.3% over FY2010. The strength of Ford Motor lies with its strong brand that the company sells at premium price. Among its brands are Lincoln, and Ford which are among the strongest brand in the world. (Datamonitor, 2011).…… [Read More]
Ford Motor Company (herein referred to as Ford) has grown from a somewhat obscure automaker to one of the world's most recognized motor vehicle brands. Founded in the year 1919 by Henry Ford, the company's main business remains the production of trucks and cars. However, through some of its subsidiaries, the company also concerns itself with motor vehicle financing.
The Ford Motor Company: A Brief Overview of its Vision, Mission and Primary Stakeholders
Ford's mission according to Lewis et al. (2006) is outlined as:
We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world. We anticipate consumer need and deliver outstanding products and services that improve people's lives.
I am convinced that the statement above successfully captures the company's purpose. In so doing, it also succeeds in outlining the firm's overall goals going forward. On the other hand, the company's…… [Read More]
They clearly understand that none among them can be considered true candidates for advancement within the firm because they have an outlook that is not conducive with the company's new direction. Culture shift within marketing is driven by these outside managers and is critical to give the company the tools to establish a stronger, more integrated global marketing department.
Marketing strategy at Ford is driven now by the need to develop products that can be marketing globally, rather than regionally. The company has made several structural changes in order to implement this strategic shift. They have brought in external managers and they have made structural changes. In order to implement many of their marketing changes, they also needed to bring in the most powerful stakeholder within their marketing arm, their dealers. The dealers have been an important component to Ford's restructuring, since part of the company's malaise can…… [Read More]
Ford Motor Company's experience with its Ford Pinto model are some of the darkest in the long history of the company. Although the company only manufactured the Pinto for a short number of years, the vehicle left a lasting impression on the company's operation (Dowie M., 1977).
The production and marketing of the Ford Pinto began in 1970 in response to the public's demand for small, economical vehicles. Over the subsequent years, the Pinto became subject to repeated complaints about its susceptibility to catching fire in low-speed, rear-end collisions. There were numerous such complaints but little was done to address the problem but Ford did little to address the problem until the summer of 1978 when three teenage mid-American girls were tragically burned alive inside a Pinto that had been struck from behind. This time the prosecutor of the county in which the young girls had been killed decided to…… [Read More]
Ford Motor Company's efforts to redefine strategies to address key strategic issues during the upcoming fiscal year. The essay also reviews Ford's business-level strategy, the company's value chain activities and identifies Ford positioning with respect to the five forces of competition.
Ford's current business- level strategy was developed as a result of challenges the company has faced in the last decade. Ford saw their market share in the U.S. decline from 23.7% in 2000 to 15.5% in 2006. Over the same period Ford's North American division reported billions in losses from the Ford, Lincoln and Mercury product lines. To return the North American division to profitability, Ford launched an ambitious restructuring plan, the Way Forward. (Kirtane, Shukla, Wang and Zhan, 2006).
Over the last decade, Ford's business-level strategies were ambiguous, with the result that they were neither a successful differentiator nor cost leader. Ford failed to innovate on many of…… [Read More]
Now "battered by soaring gas prices and plummeting sales" Ford has been "forced to slash production of the trucks that have been its lifeblood -- from half of its vehicles today (and 70% in 2005) to a projected "one-third by 2012" (arner 2008). Congress is calling for Ford along with the other American car companies demanding a bailout to show a real commitment to raising fuel economy standards and creating a leaner, meaner production machine.
Ford must point to its previous good-faith attempts to raise fuel standards to support its calls for government assistance. Many point to previous CEO Bill Ford's inability to sell his vision to other members of the company: "no matter his personal convictions, Bill Ford had neither the operational skills nor the management talent to make his green aspirations a reality. Instead, the chairman tried to tack environmental changes onto a business model focused obsessively on…… [Read More]
Stakeholder Analysis Ford Motor Company
Key Stakeholders Ranked by Level of importance
Corporate officers -- Responsible for establishing the goals and mission of the company and ensuring that managers and employees at all levels are properly carrying out the strategy of the company. (Luca, 2007)
Customers/Car owners -- customers make an investment when purchasing a vehicle and they expect the vehicle to be safe and reliable. Customers depend on their vehicles for work, school and general transportation. As such they have an interest in Ford's ability to develop good dependable vehicles.
Managers -- Managers carry the information received from corporate officers to employees and make certain that the goals established are realized.
The General Public -- Everyday people are killed or injured in car accidents. Because Ford cars are popular and a mainstay on roads throughout the world, the general public is interested in knowing the…… [Read More]
CEO Ford Motor Company
In 2006, ill Ford hired Allan Mullaly as the CEO. The reason why is because he realized that the company was facing severe challenges from: their high cost structure and they were losing market share to foreign competitors. (Hill, 2010, pg. 454) These two factors pushed the company to begin undergoing a major transformation. At the heart of this strategy, was a process known as strategic planning. This is when Mullaly created a plan that would help the company to: mitigate the losses that it was experiencing and introduce changes to help turn it around. To fully understand how this took place we will examine: the kind of leadership style that was utilized, how others are involved in the process, the way this occurred over the long-term and the strategy itself. Together, these different elements will provide the greatest insights as to the underlying challenges facing…… [Read More]
Multi-National Report on Ford Motor Company:
Ford Motor Company is a worldwide company that operates in both the Automotive and Financial Services sectors with its major operations being to build up, devise, produce and service cars and trucks. hile Ford's automotive sector basically sells vehicles under various brand names such as Ford, Volvo, Mercury and Lincoln, the financial services sector provide several automotive financing products both through and to automotive dealers. Ford's automotive sector is responsible for marketing trucks, cars and vehicle parts through the retail dealers, distributors and dealers in North America. Additionally, this sector offers a series of after-sale vehicle products and services in several segments like car accessories, maintenance, repairs and extended service. On the contrary, the financial services sector provides retail financing, wholesale financing and financing to profit-making customers.
Ford's financial services sector also provides other financing services incorporating loans to dealers for operational capital, developments…… [Read More]
Leadership Development Practice at Ford Motor Company
Given the enormous effect of an informed and effective leadership team on a company's profitability, it is not surprising that leadership development has become an important part of the practices of many Fortune 100 companies. By identifying potential leaders today and providing them with the training and education they will need to become effective leaders in the future, these companies are making an investment in their futures. The costs that are associated with providing these leadership development programs are significant, though, making the need for informed and effective practices essential. To determine how one Fortune 100 company is approaching the need for such leadership development programs, this paper provides a review of the relevant literature concerning Ford Motor Company, followed by a summary of the research and important findings in the conclusion.
eview and Discussion
One Fortune 100 company that has clearly embraced…… [Read More]
CEO as Leader of Ford Motor Company
The leadership of any large, diverse multinational corporation needs to concentrate on a unifying vision coupled with transformational leadership skills to keep the company moving forward over the long-term (Wang, Oh, Courtright, Colbert, 2011). At the Ford Motor Company, the challenge is to not only manage these core aspects of effective leadership, the CEO must also initiate and continually improve innovation over time as the auto industry is going through significant transformation (Luca, McNamara, 2010). The intent of this analysis is to evaluate how effective leaders are in the auto industry in synchronizing these many tasks, in conjunction with serving as a catalyst of effective innovation and transformational growth over time.
Analysis of the CEO ole at Ford
Alan Mulally is currently CEO of Ford Motor Company, and his background is heavily based on aerospace, defense and commercial airline industries. In these industries,…… [Read More]
Ford Motor Company is - according to its financial statements for the last year - in relatively good financial shape, especially if one considers the current weak state of the economy, the past recessionary months and the still extremely shaky state of the recovery. This paper analyzes the current strengths and weaknesses of the company as it moves toward increasing globalization.
A useful tool in analyzing the external environment in which Ford is presently situated can incorporate Michael Porter's Five Forces model, which is graphically summarized below: (http://www.marketingteacher.com/Lessons/lesson_fivefoces.htm)
Ford is vulnerable to the threat of both new entrants (in terms generally of new car models as well as specifically of new environmentally friendly cars) as well as the threat of substitute products from other car companies eager to attract the same consumers that Ford wishes to attract. Honda, for example, is likely to become one of Ford's primary…… [Read More]
Product Liability Claims: Grimshaw v. Ford Motor Company
What is the official citation?
Grimshaw v. Ford Motor Company, 9th Circuit, 849.F.2d 460 (1968).
On August 10, 1978, three teenage girls driving a 1973 Ford Pinto sedan stopped to refuel the car they were driving. After they got done filling up, the driver then loosely put the gas cap back on the tank which then by accident fell off as they drove back down U.S. Highway 33. Looking to find the cap, the girls made a stop again directly in the right lane of the highway shoulder. They did this because there was not any kind of space on the highway for cars to be able to safely pull away from the roadway (Boyce, 2015). Not long after, a van that weighed over 400 pounds and improved with an unbending plank for a front bumper was moving at fifty five…… [Read More]
Alan Mulally the CEO of Ford
Discuss the role of leadership and how it can impact organizational performance?
Prior to Mulally's arrival at Ford in 2006, he carefully studied the organization, he took detail notes on the company. Mulally knew every detail about the organization prior to his arrival at Ford. His background in engineering and leadership is a great asset to Ford. He was selected by the Ford family to become the next President and CEO because of his intellectual capabilities and his vision for the organization. Mulally's first decision at Ford was to create a strategic plan for success for the organization. He looked at the products, the sales charts and made decisions based on previous records and current trends. Mullaly first major decision at Ford was to bring the Taurus model back. This car was a best seller until the 1990's, so Mulally made some changes to…… [Read More]
Strategic Case Study: Ford Motors
Ford Motors is one of the oldest and largest auto manufacturers in the world, and despite being enormously hard-hit by the economic downturn of the recent past the company has returned to profitability and has been successful in redefining its strategy and realigning its resources to achieve its strategic ends (Ford, 2012; Hoover, 2012; euters, 2012). With internationally-based sourcing, manufacturing, distribution, and sales operations, the company is also quite large in terms of geographic spread, which comes with advantages and disadvantages (Ford, 2012; euters, 2012). The following pages present a brief overview of the company's current strategy in the light of the recent near-collapse of the company and its climb to profitability, and also gives a summary of a strategy the company could possibly pursue to further solidify its position and increase profitability.
Existing Objectives and Strategies
Many companies underwent serious…… [Read More]
4 the Competition
Ford Motors Company activates in a mature and highly competitive market and threats come not only from within the United States, but also from abroad. Due to globalization and market liberalization, the automobile manufacturers from Asia are easily capable to sell their products to the American consumer. Brands play a pivotal role in competition as customers tend to make purchases based on it. The competition is also intensified by the vast offering of substitute products, often materialized in public transports or personal automobiles running on alternative combustibles. Another source of rivalry is that the products often seem to look alike, and there are few features that offer one vehicle a point of difference.
The effects of the intense competition are various and often depend on the unique characteristics of the company, its served customers and the market where it operates. There are two most common outcomes. The…… [Read More]
Introduction of the company - Ford
Ford Motor Business began in 1903 by Henry Ford and it has constantly remained within family group possession ever since that period. The business created and applied assembly line manufacturing from the launch of the Model T. In the year 1909, and created planes and automobiles for U.S. Allies in The Second World War. Ford has worked globally since 1904, in the event it opened a division in Canada to acquire entry to Commonwealth marketplaces. With regard to the initial half in the Twenty-first century, Ford continued to be the prominent automobile manufacturer in the marketplace it had successfully developed. In 1956, Toyota released its initial automobile in the United States of America, and started acquiring marketplace share. In hindsight this became the turning point within the U.S. marketplace, and since the Twenty-first century came to an end Ford experienced declining marketplace…… [Read More]
Throughout the few recent years, the Ford Company has ended fiscal years with negative profits. Despite this however, they remain strong and able to finance their operations without endangering organizational stability. Nonetheless, the past profits are not able to sustain long periods of time of losses. In this order of ideas then, the financial objectives of the managerial team at Ford can be summarized as follows:
"Finance our plan and improve our balance sheet" (Ford Motor Company 2008 Annual eport)
Increase sales to generate more revenues
Increase investments with the aim of generating sustainable revenues, not only in terms of actual revenues, but also in terms of prestige and position within the market
6. Target Markets
As it has been mentioned before, modifications have occurred in the way Ford segments its customer base. Once appealing to wealthy individuals who wanted to make a socio-economic statement, the marketing team…… [Read More]
If Boca Raton, Fla. buys 32 Explorers, we need to let the entire municipal market know about it.
The key to foreign sales is understanding that the Explorer will be a luxury item in much of the rest of the world. Ford Explorers may be driven by middle-class families and soccer moms in the United States, but the $30,000 price tag is going to make the Explorer an upper-class item in countries with a lower standard of living than the United States.
Naturally, to overseas upper-class drivers, the vehicles they drive are status symbols, and we must focus on the prestige element of owning an Explorer. We should look for luxury lifestyle magazines - foreign versions of the Robb Report, for example - and purchase adverting that focuses on the luxury features and prestige factor of owning the Explorer. Ads with American celebrities, who often are even more…… [Read More]
The government estimates that quality improvements in light trucks have an estimated retail value of $361.76 (Robb and Schroeder, 2006). Improvements included many high demand items such as tire monitoring systems, better air bags, improved power trains, reduced emissions, and a number of other changed to standard option packages (Robb and Schroeder, 2006). The Bureau of labor Statistics reports that similar changes have been made to passenger cars, totaling $139.96 for the average 2007 model (Foster, 2006).
Drops in prices, combined with rising costs means that many other manufacturers like Ford will have to do some drastic restructuring. Ford's lay offs will add to national unemployment levels in the future. Ford has a solid plan for recovery, although it may not be fast enough for many analysts. Ford estimates that it will be in the black again by the end of 2009 (Gharib, 2006). The immediate future does not bode…… [Read More]
Additionally, aside financial resources, they also used their assets. The most relevant example in this sense is the selling of part of its interests in Mazda. It as such transformed its assets into liquidities -- the 20% shares in Mazda were converted into $540 million (Murphy) -- that better allowed them to pursue their innovation objectives.
The matter of technological innovation is not only a core focus of Ford's, but of all players within the American automobile industry. The reasons for the rivalry in terms of &D are numerous, the most outstanding however being constituted by the desire to attract and satisfy as many customers as possible, managing as such to increase organizational revenues. "&D efforts in the U.S. Auto industry are channeled into a variety of processes such as stamping, casting, machining, and assembling. Within the time-frame of our investigation, &D efforts had to embrace sudden changes in taste…… [Read More]
Normally, the designer's direct involvement into the user-research process is noted to be limited. There is however a need for a close collaboration between the researchers and the designers so that the quality attributes that are desired by the clients are adequately included into the final product (Donnelly, 2000).
It is therefore clear that for the user's perceptions of quality to be adequately captured and incorporated into the design and production stages of a given product, usability research must be thoroughly conducted and the results clearly communicated by the researchers to the design team. Ford Motors's application of a user-centric approach to the production of its products makes it very crucial for the company to actively be connected to the latest thoughts and perceptions that its clients may harbor.
The successful the initiative
It is important that the success of the TQM initiative to be gauged so as to highlight…… [Read More]
The company is now considered the second largest automaker in the world. Within one year after its inception, the company brought well-known brands under its name such as Cadillac, Cartercar and Pontiac. The company was originally owned by William Durant but excessive debt cost him the ownership in 1910 when the bank took it over. Durant then started the Chevrolet Motor company. In 1920s, the company sales surpassed those of Ford Motor Company due to brilliant leadership of Alfred Sloan. In the next decade, the company expanded and started Greyhound bus service. During the Second World War, the company faced threat of nationalization from Nazi government. But due to personal and business contacts, the company abandoned its German operations in return for a complete tax write-off. Its post war growth was impressive as General Motors became the first ever U.S. company to pay $1 billion in taxes. It was also…… [Read More]
According to the site Ford's Human esource goal is " to build a team of people who possess strong consumer instincts and innovative ideas, who draw strength from diversity, and who can deliver the performance needed to compete effectively in a global marketplace." Of all these opportunities I would be most interested in learning and development because I like to teach others how to do things and this would be a fine way of demonstrating that skill and contributing to human resource strategy.
In order to improve Human esource strategic initiatives at Ford I would suggest to make the company as friendly as possible to work for. This would include listening and respecting to their many employees. Often better pay and benefits works to placate the worker into obeying and toeing the company line, but sometimes letting the workers contribute to the actual strategic planning of the business would provide…… [Read More]
Price elasticity of demand
Traditionally, large ticket items do not have a great deal of elasticity in terms of price, because they are viewed as necessary goods, although they are not as elastic as a supermarket item one can 'stock up' on in bulk when it goes on sale. Car demand can be somewhat elastic in the sense that people can elect not to buy a new car, purchase a used car, or lease a model until prices decline -- there are market substitutes that can be cheaper, if the car market prices goods too high, as Ford was pricing its vehicles too high, and producing too many high-cost vehicles. Also, the price of compatible goods like gas can impact the choice of vehicle consumers chose to purchase. The Toyota Prius' popularity grew with the price of gas.
Ford's North American operations lost $1.6 billion in 2006,…… [Read More]
Ford orld Automobile Industry 2009
hich companies are likely to be most successful over the next five years?
The companies likely to experience the greatest market success in the coming years are those that find a way to simultaneously innovate and, in the case of the Detroit Big 3 especially, find intuitive ways to reduce their capacity. Something that the case study published in the text by Grant (2009) makes quite clear is the notion that the American automotive market's crisis was essentially predicated by a series of assumptions that haven't evolved in several decades and by an oversaturated marketplace.
The text reports that, in fact, in the face of the growing financial crisis, "by the time President Obama took office in January 2009, U.S. auto sales were half of those a year previously. This fall in demand was unprecedented in the industry's history." (Grant, p. 534) The article goes…… [Read More]
S.. Over a period of time, even the manufacturers, like Ford, move their manufacturing bases to China. (Chain eaction: Big Three's Outsourcing Plan: Make Parts Suppliers Do it) manufacturing company that is giving employment to a large population of a town closes its operations and shifts its operations to elsewhere; this leads to loss of jobs. The entire town gets affected. As the public are not earning, they cannot buy and cannot pay taxes. The whole economy comes to a standstill. Hence, moving manufacturing base weakens the economy. Ford closed its New Jersey plant after 55 years of its existence. This closing resulted in early retirement of about 300 workers. The balance 600 workers were transferred to other Ford plants. By this closing down, about 400 jobs were eliminated. Ford is shrinking American operations, but is investing in Asia. When American companies are moving out of U.S., foreign companies starts…… [Read More]