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Ford Mondeo- Case Study Analisys

Ford Mondeo- Case Study Analisys

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12/04/2012

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Automotive Industry

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Probably automobile industries occupy a large market share in the worlds market as well as in the Indian market.

§ Nearly 18% of the total national income is being incurred from the automobile industry. § In India automobile industry has a growth rate is at the average of 10-12%.
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"Make Every Day Exciting"

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Henry Ford (Biography) Born on July 28, 1863. Green field Township, Dearborn, Michigan, U.S. Founder of Ford Motor Company. Introduced Model T. Father of Assembly lines used in mass production.
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Awarded 161 U.S.

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Model T

Fordism: Fordism is the economic philosophy that widespread prosperity and high corporate profits can be achieved by high wages that allow the workers to purchase the output they produce, such as automobiles.
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Ford set out to build a car which everyone could afford to buy . Model T – Tin Lizzie – Flivver. The attraction of the Model T was that its price never increased. Costing $1200 in 1909, the price in 1928 was only $295. By 1928 Ford was producing more than one car per minute.
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Cars were mass produced and every part was standardized Only one color and one engine size were available. By producing large number of cars on an Assembly Line Ford needed fewer skilled people and that cut the cost of paying wages. Assembly Lines : ‘… each man and each machine do only one thing ... the thing is to keep everything in motion and
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More jobs are created in other industries.

More Standardized parts are needed

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T H E P R O CY O F C SP LE Y! ER IT
More people with jobs means that they can afford to buy a car!
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TOTAL COMPANY OUR PLAN . . . ONE
# Aggressively restructure to operate profitability at the current demand and changing model mix # Accelerate development of new products. # Finance our plan and improve our balance sheet # Work together effectively as one team # Create a global “ONE” Ford . . . leveraging our global assets # Introduce a complete, competitive, leading fuel-efficient product # POLISH THE BLUE OVAL family # Continuously improve our quality and productivity, and reduce our costs
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In 2007, Ford fell from the second-ranked to the third-ranked automaker in US sales for the first time in 56 years, behind General Motors and Toyota.

 In 2008, Ford produced 5.532 million automobiles  and employed about 213,000 employees at around 90 plants and facilities worldwide.

Major recent turn in ford co.
By 2009, Ford had become the second largest automaker in Europe (only behind Volkswagen)

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1929 model AA

1928 model A New ford fiesta

1931 model Tudor

Ford fiesta

1946 ford sedan

Ford Ikon

Endeavo ur
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Automotive Industry

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BRAZIL

BRITAIN

Produced almost 3 million vehicles in 2007.

Always been export oriented.

Global companies are present in brazil, such as fiat, Volkswagen, ford, gm, Nissan, Toyota, Mitsubishi, Mercedes-Benz, Renault etc

Today , employs about 850,000 people and produces about 1.5 million cars and 216,000 commercial vehicles per year, 75% of which are exported.

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CHINA

GERMANY

Rapid development since the year 2000. In 2008, 9.345 million motor vehicles were manufactured surpassing U.S. As the second largest automobile maker, after japan. The top 5 car sellers are Volkswagen, GM, Toyota, Nissan and Chery.
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The automobile was invented in Germany by Carl Benz.

Ten car manufacturers : Porsche, Volkswagen, Audi, Bugatti, Lamborghini, Bentley, Skoda Auto, MAN, SEAT and Scania AB.

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JAPAN
The biggest auto manufacturing country in the world. Nissan began making trucks in 1914, and sold cars under the Datsun brand until it switched to Nissan in the 1980s Other major companies include Subaru, Mitsubishi, Mazda, range rover, Chevrolets, Suzuki, and Isuzu
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SOUTH KOREA
The fifth largest in the world in terms of production volume and the sixth largest in terms of export volume

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INDIA
One of the fastest growing in the world. Domestic production is skyrocketing .The number of cars sold domestically is projected to double by 2010. The government’s 10-year plan aims to create a $145 billion auto industry by 2016. The auto sector could be worth $375 billion by 2015, up from $65 billion in 2002.

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INDIA
The production of automobiles in India is largely aimed at local consumers. Several Indian manufacturers also export a diverse variety of auto components. Prediction of sales of 42 lakh four wheeler automobiles in India by 2015. Indian passenger vehicle exports are also expected to rise from 1,70,000 in 2006 to 5,00,000 in 2010.

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Export scenario
India has emerged as one of the world's largest manufacturers of small cars In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.  General Motors  to export about 50,000 cars manufactured in India by 2011. India automobile companies, mainly Maruti Suzuki, Tata Motors and Mahindra, have been aggressively expanding their overseas market too.
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Industry Trends
At the end of the 2006 fiscal year, Ford presented the following record: the group ranks were in second place of American car manufacturers (after General Motors) and the third in the world (after Toyota and General Motors). It displays a turnover of $160.1 billion (against $176.9 billion in 2005) and a historical loss amounting to $12.7 billion (against a profit of $1.44 billion in 2005) (...)
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FORD ENTERING INTO INDIA

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Ford has been in India since 1907, but received government approval to forge a 50:50 partnership with Mahindra and Mahindra in 1995. In 1998, got the green signal to increase its stake in the joint venture to 92.18 percent and the company was re-christened as Ford
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FORD IN INDIA
cars spring to life at Ford's ,Rs. 1700 crore integrated, manufacturing plant at Maraimalai Nagar, 45 kms from Chennai. The plant, equipped with advanced manufacturing technology from Ford, covers 350 acres, provides employment to about 2,000 people directly and thousands indirectly . has a capacity to manufacture upto 100,000 vehicles per annum. Ford is a 6-Sigma company. Every step of every
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Commitments As A Leading Car Manufacturer In India:
The company has a special cell called the "Environmental Management system" to deal with the glaring environmental needs. Apart from this Ford India Ltd. has always been vital in looking into the matters of social commitments. tries to employ locals in the manufacturing unit.
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Strategic Postures
MISSION

TO BE A GLOBAL, DIVERSE FAMILY WITH A PROUD HERITAGE, PASSIONATELY COMMITTED TO PROVIDING OUTSTANDING PRODUCTS AND SERVICES.”

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Plans
Aggressively restructure to operate profitably at the current demand and changing model mix. Accelerate development of new products our customers want and value. Finance our plans and to improve our balance sheet. Work together efficiently as one team.

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Goals
An exciting and viable FORD, delivering profitable growth for all . To sell all its car manufactured under its name by satisfying all the needs and demand of its customers. To gain operational efficiency in its work place

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SWOT Analysis

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The first model was the Ford Escort, which was later replaced by locally produced Ford Ikon in 2001. It has since added Fusion, Fiesta, Mondeo, Endeavour and Endeavour Thunder to its product line.

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Marketing Strategies
Building and managing profitable customer relationships. Building and managing strong brands. Harnessing new marketing technologies in this digital age. Marketing in a socially responsible way around the globe.

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Ford Mondeo

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MONDEO was a product in the D-segment

Elegant, muscular exterior and stylish interior designed with quality, makes driving a pleasure. Innovative technology is used . Originally launched in Europe. Was rated as the car of the year in Europe, and was quite successful especially in the case study analysis 35 07/17/09

Models
o IN India MONDEO was launched in two variants:

Petrol variant 2.0

Diesel variant 1.8

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Features
Electronic Automatic Temperature Control AC with 4 speed blower and heater. Power adjustable driver and front passenger seats. Front foot well courtesy lights, Rake and tilt adjustable steering.

Front passenger seat lumber support, Analogue
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The Indian Reaction
MONDEO was not quite popular in India as FORD did not indulge in aggressive marketing. Moreover, it also faced competition from other cars in this segment like Honda accord and Hyundai Sonata. The posture in the front seat was uncomfortable. It was not preferred during long journeys. During rains, the discs made a screeching noise.
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What Went Wrong ???
First and foremost, the company did not have an effective advertising strategy in place. Ford indulged in slow skimming i.e launched MONDEO at an exceedingly high price and spent less on promotion. It was priced at an exceedingly high price of 16lacs. Lack of availability of car parts and service
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The New Ford Mondeo
#The Ford Mondeo is one of the most adorable new luxury cars to have come out from the Ford stable.

#Powered by a 2 litre 16 V DOHC engine and uses a refined sequential Electronic Fuel Injection System.

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The Mondeo’s New Clothes
The Mondeo is back — and Version 2.0 claims to be stronger, fitter and a better rival to the allconquering Honda Accord. the headlamps have modified, the expensive Xenon lamps being discarded in favour of twin halogen units, and there’s a new bumper, with a wide air-intake and angular fog lamps, replacing the sporty, round-foglamp unit.

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A Dreamy Ride

The Mondeo is still, by far, the best driver’s car in the segment, with brilliant, crisp steering, and a real eagerness to dive into corners. The ride is still quite firm, and can still be jarring over potholes and ridges. It feels absolutely planted and stable, even at maximum pace, making it a delightful

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