swot and business analysis of the ford motor company 1004

SWOT and Business Analysis of The Ford Motor Company MGT/521 Management University of Phoenix November 18, 2011 SWOT and Business Analysis of The Ford Motor Company The purpose of this research is to assuming the role of a Fund Manager deciding whether to invest in The Ford Motor Company. By Identifying Internal and external stakeholders, wants and needs , Strength, Weakness, Opportunities and Threats (SWOT) of The Ford Motor Company. This to detriment whether the company is profitable and competitive in the automobile industry. Ford Motor Company SWOT Analysis Strength Ford Motor Company is a Multi international Company with 90 plant and facilities selling vehicles in 200 markets. It is the second biggest plant in the world, with approximately 345,000 employees. (http://www. freeonlineresearchpapers. com/ford-diversity-commitment) , (http://media. ford. com/article_display. cfm? article_id=7670) • The Ford Motor Company is the Fifth largest vehicle manufacturer in the world and the second in the U. S. with a total (Sales 2010) of 4,988,031 vehicles manufactured including Cars, land craft vehicles (LCV), Heavy Commercial Vehicles (HCV) and Heavy Buses. Oica. net, 2011) (http://oica. net/wp-content/uploads/ranking-2010. pdf) • Ford Motor diversity in Ford Credit is a subsidiary of The Ford Motor Company that finance vehicles to customer and dealers to support Ford Motor Company sales. They also provide financing on Lincoln vehicles, offering: competitive rates, innovative products, flexible terms (http://www. fordcredit. com/companyInfo/profile. jhtml) • Ford Motor merges with Hertz Rent-A-Car, the world’s leading vehicle renting organization, operates from approximately 8,100 locations in 143 countries orldwide. (http://media. ford. com/article_display. cfm? article_id=7670) • Ford Motor Company is in ten place in 2011 Fortune 500 list (Us), with Revenues of (Millions) 128,954. 0 and Profits of (Millions) 6,561. 0 (http://money. cnn. com/magazines/fortune/fortune500/2011/full_list/index. html) and in the 2011 Global 500 list, Ford Motors in twenty fifth place. (http://money. cnn. com/magazines/fortune/global500/2011/full_list/index. html) Weakness • Ford Explores rollover and firestone tires recalls controversy announced on August, 2000, approximately 14. million tires contain a safety-related defect. Harmed Ford brand image. (http://www. nhtsa. gov/PR/FirestoneRecall) • Ford Motors doesn’t have a fuel efficient stander pickup or cargo van, compared to Chevrolet Silverado (Pickup) that gives 20mpg in city and 23mpg in highway and the Chevrolet Express (Van) that gives a 15mpg in city and 20mpg in highway. (http://www. fueleconomy. gov/feg/bestworstepatrucks. htm) • Ford Motors only has seven subsidiaries, Lincoln, mercury, Mazda, Volvo, Jaguar, Land Rover, Aston Martin. Opportunities Fuel efficient cars, Ford Motor Company is launching the most fuel-efficient cars in the market. The All-new 2012 Ford Focus will be powered by a fuel-efficient 2. 0-liter DOHC four-cylinder engine with twin independent variable camshaft timing (Ti-VCT) and direct gasoline injection that will deliver up to a projected 40 mpg highway. The combinations of these technologies helps to lower gas emission but, still have horse power. For a 4 cylinder 2. 0 liter engines it is rated at 160 horse power and 146lbs of torque. (http://media. ford. com/article_display. cfm? rticle_id=33438) • Big donator to charity and victims of natural disasters. October 27, 2000 – Ford Motor Company will donate $1. 4 million to the San Diego Environmental Foundation (SDEF) for the preservation, protection and enhancement of the San Eliot Lagoon Ecological Reserve, which is one of San Diego’s and Southern California’s most precious and unique natural resources. (http://media. ford. com/article_display. cfm? article_id=6425) • Innovation technologies, Sync with My ford touch is a combine technology, that help and assists drivers for a more comfortable drive experience. The

Sync technology consist in integrating Bluetooth- enable cell phones and Mp3 players in to the car, providing hand free call and music selection capabilities using voice activate commands. My ford touch replaces many traditional buttons with clear, colorful and user friendly LCD screens. (http://media. ford. com/images/10031/Drive_Smart_HR. pdf) • Driving Technology, Blind Spot Information System (BLIS) gives out three warnings when a vehicle not visible or enters ones blinds spot. The signals consists in a Yellow light appears in the corresponding side view mirror, an audio alert and a message warning displayed. http://media. ford. com/images/10031/Drive_Smart_HR. pdf) • Rear view camera and Forward Sensing System, helps drives to see on screen when parking in reverse. The Forward Sensing System helps to determine how close are the objects form the vehicle. (http://media. ford. com/images/10031/Drive_Smart_HR. pdf) • Electric Power-Assisted Steering (EPAS). This technology consists in adapting to the road conditions and help drivers to compensate directional shifts caused by crowned roads surface or steady crosswinds. (http://media. ford. com/images/10031/Drive_Smart_HR. df) • Active Park Assistants uses ultrasonic based sensing system and EPAS for parallel parking. (http://media. ford. com/images/10031/Drive_Smart_HR. pdf) • Rain-Sensing Wipes has a optical sensor that auto adjust to the climate conditions. (http://media. ford. com/images/10031/Drive_Smart_HR. pdf) Power train and convenience • Adaptive cruise control allows the vehicle to set and mating speed without using the pedals. It also has a radar- based system that’s can monitor the vehicle in front up to 600 feet. (http://media. ford. com/images/10031/Drive_Smart_HR. df) • Easy fuel or cap less system helps drives when filling the car with gasoline a hassle-free, odor free, and have a more consistent seal compared to traditional manual cap. ( http://media. ford. com/images/10031/Drive_Smart_HR. pdf) • Eco-Boost gains of up to 20 percent and reduction of CO2 emissions by as much as 15 percent compared with larger, less efficient engines. (http://media. ford. com/images/10031/Drive_Smart_HR. pdf) • Dual-clutch Power Shift six-speed transmission combines the responsive performance and fuel economy of a manual gearbox with the convenience of a traditional automatic transmission. http://media. ford. com/images/10031/Drive_Smart_HR. pdf) Threats • Government regulations. Do to the pollution and the Global warming caused by the Co2, car manufactures are trying to develop fuel efficient cars. In Jul 29,2011 Major car developers and manufactures joined President Obama to discusses the further in fuel economy and proposed a new Fuel-efficiency standers. Today’s stander is 27. 3mpg by 2025 the stander should be at 54. 5 mpg. Its estimated that this new “stander” will save a average of $8,000 on fuel bill per vehicle, and will reduce U. S. oil consumption by 2. 2 billion barrels per day. (http://news. onsumerreports. org/cars/2011/07/government-raises-fuel-economy-standards-to-545-mpg-by-2025. html) • Change of oil price, is one of the most volatile components oil, is very heretical as it prices increases and decreases. Consumer are more aware that fuel efficient vehicle can guarantee more performance for their money. For example; in 03-01-2010 oil crude open at $91. 3 an close $91. 6 (http://www. livecharts. co. uk/futures_commodities/oil_prices_historical. php? type_symbol=futures_wi&start=150) in 26-07-2011 oil crude open at $99. 0 an close$99. 6 (http://www. livecharts. co. uk/futures_commodities/oil_prices_historical. hp) • Increase of raw materials. This effects the manufacturing of the automobile if the steel components raises then the car will have to be a lot more expensive. According to the World Carbon Steel Transaction Prices in Mar,2011 medium steel sections were $719/Ton in April,2011 it was 926/Ton. (http://www. steelonthenet. com/price_info. html) • Recession is a other factor that Ford Motor Company has to battle. As the economy declines in activity, more people are not investing or spending their incomes in new vehicles. It is estimate that the US unemployment rates is at 13. 9 million persons a (9. percent) http://www. bls. gov/news. release/empsit. nr0. htm) Ford Motor Company Internal and External Stakeholders, Wants and Needs. Internal Stakeholders • Employees- In every job most likely the manager our bosses know what makes a employee happy and productive. They understand that with tangible rewards (good pay, nice office and benefits) are the best way to appreciate an employee, little that they know, the most important think in term of intangible, such as respect, trust, and fairness makes employees happy and more productive. (http://www. csmonitor. com/Business/2008/0128/p13s03-wmgn. tml) A good example of the intangible that a good company haves is to offer buyouts rewards. In October 10, 2006 The Ford Motor is offered their employees the opportunity to acquire a educational opportunity to its entire US work force or to select 8 different types of retirements and other programs. This includes two or four year of a college degree and retirement incentive. This good will help employees the process of transition into their lives after have work with the Ford Company. (http://media. ford. com/print_doc. cfm? article_id=24554) • Dealerships- Sells to the consumers and but buy from a distributor.

Ford Motor Company develop a program called “Back To School” in Northwood University, it was the first customized college degree program for dealerships employees. This program provided specific retail objectives, such as tools for attracting career-oriented employees, and improve employees retention. This program helped employees enhance their retail business and management skills, and integrate Ford Motor Company Training with a tangible and focused college degree opportunity. (http://media. ford. com/article_display. cfm? article_id=11648&make_id=trust) External stakeholder Customers or looking for more than fuel efficient vehicles. They are also concern of their safety features. Besides the traditional airbags, The Ford Motor Company is leading the way in developing new safety technologies. Some of the safety features that Ford Motor offers are inflatable seat belt. There deigned to enhance protection for rear-seat occupant. Curve control technology are also introduce like a new innovation that helps maintain drivers control of their vehicles. (http://media. ford. com/images/10031/Drive_Safe_HR. pdf) • Governments leaders change the Fuel-efficiency standers from 27. 3mpg to 54. 5mpg in 2025.

Under the new standers the car industries Including Ford Motors are increasing 5 percent a year. SUVs and pickups would be allowed to increase by a less-stringent 3. 5 percent a year through 2021, before rising more sharply to 5 percent a year from 2021 to 2025. (http://news. consumerreports. org/cars/2011/07/government-raises-fuel-economy-standards-to-545-mpg-by-2025. html). In November16, 2010 Ford Motors Company launches its most fuel efficient pickup. The new 3. 7 liter V6 engine in the 2011 Ford F-150 giving a performance of 17mpg in city and 23mpg in highway. (http://media. ford. com/article_display. cfm? article_id=33377) Conclusion

The Ford Motor Company, as the pioneer that invented the assembling line and perfected it. Is now the second largest automobile manufacturer in the word and it is a Multi International Company with more than 90 plant, facilities and 350,000 employees worldwide. Ford Motors sells vehicles in 200 markets worldwide and offers some of their clients to finance their new car with their subsidiary Ford Credit. The Ford Motors Company is adapting to the changes and being a more compipetive manufacture, innovating new cars that are more fuel efficient and with better technologies to help there consumer feel more saver when driving there automobiles.

As mutual fund manager, the decision in investing in the Ford Motors Company it is positive, do due such innovating as well solid company. The Company is ranked Top Ten in the 500 Fortune (US). Their devotion in helping disaster victims, charity and local industries give a great opportunity to local US citizen in helping their own local manufacturer (It is a win to win business). References International Business Ethics Institute. (2011). Business Ethics Primer. Retrieved from http:/www. business-ethics. org/primer1. html Ford Motor Company, (2011). About the Ford Motor Company. Retrieved from http://corporate. ford. com/about-ford

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