Professional Documents
Culture Documents
1
`
Sector Information
Introduction
The Indian auto industry became the 4th largest in the world with sales increasing 9.5
per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It was the
7th largest manufacturer of commercial vehicles in 2018.
The Two Wheelers segment dominates the market in terms of volume owing to a
growing middle class and a young population. Moreover, the growing interest of the
companies in exploring the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations for
the near future. Automobile exports grew 14.5 per cent during FY 2019. It is expected
to grow at a CAGR of 3.05 per cent during 2016-2026. In addition, several initiatives by
the Government of India and the major automobile players in the Indian market are
expected to make India a leader in the two-wheeler and four wheeler market in the
world by 2020.
Market Size
Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-19
with 26.27 million vehicles getting sold in FY19. Domestic automobile production
increased at 6.96 per cent CAGR between FY13-19 with 30.92 million vehicles
manufactured in the country in FY19
In FY19, year-on-year growth in domestic sales among all the categories was recorded
in commercial vehicles at 17.55 per cent followed by 10.27 per cent year-on-year
growth in the sales of three-wheelers.
Premium cars sales in India crossed one million units in FY18. During January-
September 2018, BMW registered a growth of 11 per cent year-on-year in its sales in
India at 7,915 units. Mercedes Benz ranked first in sales satisfaction in the luxury
vehicles segment according to J D Power 2018 India sales satisfaction index
(luxury).Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in
2017.
2
`
Market Share
2.2%
5.8%
7.8%
44.2%
16.8%
22.6%
30
25
20
15
10
0
F.Y. 13 F.Y.14 F.Y. 15 F.Y. 16 F.Y. 17 F.Y. 18 F.Y. 19
3
`
25
20
15
10
0
F.Y.13 F.Y.14 F.Y.15 F.Y.16 F.Y.17 F.Y.18 F.Y.19
Threat of
New
Entrants
Threat of
Substitutes
4
`
Company Information
Ford has been making in India, for India and the world, with its integrated manufacturing
facilities in Chennai, Tamil Nadu and Sanand, Gujarat. The company, since its entry in
India in 1995, has invested more than US$ 2 billion and is committed to building a
sustainable, profitable business in one of the world's fastest-growing auto markets.
Committed to bringing products that Indian customers want and value, Ford’s biggest-
ever product line-up today offers a vehicle to suit the need of nearly every consumer –
Ranging from Entry level hatchback and sedan in Figo and Aspire – to – CUVs/SUVs in
Freestyle, EcoSport & Endeavour and not to miss, a supercar in Ford Mustang. The
power of choice provided by Ford also extends to powertrains – with 1L Ecoboost to the
5L V8 Engine.
Ford remains committed to India as a centre of excellence for small cars and low
displacement engines for both the domestic market and exports. Following an
accelerated export plan, Ford exports Figo, Aspire, and EcoSport to over 70 markets
around the world. With Sanand being operational, Ford India has also doubled its
annual installed manufacturing capacity to 610,000 engines and 440,000 vehicles.
Along-side new product introduction, Ford continues to grow closer to customers with
the continued expansion of its nationwide dealership network as well as world-class
after-sales offerings. Till April 2019, Ford has 541 sales and service touchpoints in 292
cities across India.
Ford’s presence in India includes Ford Credit India, which started wholesale dealer
inventory and retail financing in 2015 as a non-banking financial company. Ford Credit
is known for its reliable and transparent loan products at competitive rates, flexible
terms, and outstanding customer service. With five decades of global experience, Ford
Credit’s operations span in as many as 100 countries where it has emerged as a
preferred automotive financier for both Ford customers as well as dealers.
5
`
Ford’s operations currently employ more than 14,000 hard-working, dedicated men and
women across its operations in India which also include Global Business Services, with
offices in Chennai, New Delhi, and Coimbatore.
Driving innovation from India, Ford has set up a new Global Technology & Business
Center in Chennai with an investment of over US$200 million. The centre creates
additional employment of 3,000 people over the next five years, making Chennai
become Ford’s second-largest centre of employment globally after Dearborn, United
States. The Global Technology and Business Center in Chennai will host Ford’s third
global product development centre in the Asia Pacific and employ Indian engineers,
scientists and skilled workers. It also will feature a wide range of laboratories and testing
facilities for both full vehicles and components, enabling Ford to conduct extensive
testing of future vehicles in India.
With the company’s global focus on Smart Mobility, Ford envisions to be the most
trusted mobility brand in India too and has invested in Zoomcar as its first foray into the
mobility services space. The partnership supports the company’s vision to develop
services that will make it easier for people to move to cities using multiple modes of
transportation.
Ford with its Smart Mobility LLC setup has been working with the cities of Indore,
Hyderabad and Mumbai to find innovative mobility solutions. While in Mumbai and
Hyderabad, Ford is helping design an integrated mobility solution for multimodal
transport and in Indore Ford is working to support the city authorities in encouraging the
use of the public transit system and improving general road safety.
Ford’s commitment to India is not just business-centric. At the heart of our business
plans are people and communities. Going further with its CSR philosophy, Ford
continues to play a significant role in addressing issues in the areas of Education,
Sustainability and Auto Safety – with campaigns like Happy Schools, Sujal and Cartesy
in India.
6
`
Porter’s 5 Forces Model for Automobile Sector
Low
Threat of In the automobile industry
New the threat of new entrants is
Entrants low. This is so because it
requires a huge upfront
capital requirement.
High
7
`
Financial Statements
In the books of Ford Motor Company
Profit & Loss Account for the year ended 31-12-18
Particulars Note No Amount Amount
31-12-17 31-12-18
Revenue
Automotive $ 145,653.00 $ 148,294.00
Ford Credit $ 11,113.00 $ 12,018.00
Mobility $ 10.00 $ 26.00
Total Revenue $ 156,776.00 $ 160,338.00
Cost & Expenses
Cost of Sales $ 131,221.00 $ 136,269.00
Selling, Administrative, Other Expenses $ 11,527.00 $ 11,403.00
Ford Credit Interest and Other Expenses $ 9,047.00 $ 9,643.00
Total Expenses & Cost $ 151,795.00 $ 157,315.00
Interest Expense on Automotive Debt $ 1,133.00 $ 1,171.00
Interest Expense on Other Debt $ 57.00 $ 57.00
Other Income $ 3,267.00 $ 2,247.00
Equity in Net Income of Companies $ 1,201.00 $ 123.00
Income before Income Taxes $ 8,159.00 $ 4,345.00
(-) Provision for Income Tax $ 402.00 $ 450.00
Net Income $ 7,757.00 $ 3,695.00
(-) Income attributable to non controlling assets $ 26.00 $ 18.00
Profit After Tax $ 7,731.00 $ 3,677.00
8
`
9
`
10
`
$ $
Collection of Finance Recieveables and Operating Leases 44,641.00 50,880.00
$ $
Purchases of Marketable and Other Securities (27,567.00) (17,140.00)
$ $
Sale of Maturities of Marketable Securities 29,898.00 20,527.00
$ $
Settlement of Derivatives 100.00 358.00
$ $
Other (29.00) (177.00)
$ $
Net Cash Flow from Investing Activities (19,360.00) (16,261.00)
11
`
Financial Ratios
12
`
SWOT Analysis
WEAKNESS STRENGTH
1. Limited Global Scope for Production Network 1 Strong Brand Image
2. Higher Cost compared to Competitors 2 Global Supply Chain
3. Slow Innovation Processes 3. Effective Innovation Processes
THREATS OPPURTUNITIES
1. Aggressive Competitive Rivalry 1. Global Expansion through Market Penetration
2. New entry of High Tech firms 2. Growth through Product Development
3. Fluctuating Oil Prices 3. Cost reduction through effective Supply Chain Management
STP Model
Segmentation:
Ford EcoSport is a vehicle which is having the features of high end SUV vehicles which
are in the Indian Market for quite a long period of time. So the Ford EcoSport has been
segmented in the mini SUV segment where the car is not a fully built SUV but it is a
smaller variant of SUV that’s why the company has named it a Mini SUV. Where the car
offers the same performance as that of a sports car. It is placed in the competitive
segment where many companies are offering their products like Maruti Suzuki Ertiga,
Renault Duster, Hyundai i20, Maruti Suzuki DziRe, Mahindra Quanto and many more. It
is having the features of mini SUV, which has been named by the company and fulfills
the needs of the basic requirements of SUV
Targeting:
Ford EcoSport targets mainly the people who are businessman and young executives of
the company as it gives a rich and standard look to the personality of the people. It also
targets people of the middle economy section of the society who want a comfortable car
at a less cost and who cannot afford costly SUV crossovers offered by competitors. It
can also be considered as a family car, because a family of 5 people can go for a
vacation with luggage without any trouble. So it is a car which can be used by any
section of the society, where they can use it without any prestige issue.The
businessman can use the car for official use also, as it is a better alternative for the high
end SUV that are used by businessman for their official transportation. And young
generation of people who want a vehicle which offers them tough, bold, stylish look can
opt for EcoSport as it matches aspects like performance, mileage, looks etc. so it’s the
13
`
perfect car for business purposes as it can be used extensively for long distance travel
as business requires travelling long distances sometimes and can meet the requirement
of the business.
Positioning:
Ford EcoSport has been positioned as a fuel efficient car which is at 18.9/L which is
quite good range because when compared with its competitors which provide a little
less mileage. It also has been positioned as a feature packed car at such low price and
the company is providing many high quality features at a price which can be afforded by
the middle class of the society. The company also claims that the car is cheaper
compared to its competitors like Nissan Terano, Renault Duster etc. and the company
also says that the servicing cost of the EcoSport will not be very costly and it provides
safety of the passenger travelling in the car. The company is also trying to position the
car at a cheaper alternative for the high SUVs and it offers various high end
entertainment features like infotainment system with Bluetooth connectivity, USB
connectivity, keyless entry which is also not available in may other competitor vehicles
where the EcoSport has been placed and various top end features. The Company
claims that the Ford EcoSport is able to provide better ride quality than the other
competitor vehicles.
2018 110.574
2017 63.150
2016 57.294
14
`
Products & Services of Ford
Ford is a manufacture of a varied number of automobiles like cars, trucks, SUV etc. In
the car segment it includes Sedans like Fiesta, Fusion & Mustang. In the SUV and
Crossover segment it produces the EcoSport, Escape, Flex, Edge, Explorer and many
more. It also manufactures trucks like Ranger, Transit Connect and many more.
EcoSport
15
`
Fusion
Mustang
16
`
Ranger Escape
COW DOG
Fiesta Fusion
10
0
1 2 3 4 5 6 7 8 9
PLC
17
`
CEO, Director
Executive VP
VP Sales
Operations
Managing
Director
Director
18
`
Organizational Culture
Ford Motor Company’s organizational culture influences the firm’s drive toward higher
performance to achieve its vision of industry leadership. A company’s organizational
culture defines the values, customs and traditions that affect individual and group
behaviors. Ford uses its corporate culture to maintain a high-performance workforce. As
the fifth biggest player in the global automobile market, the company needs to maintain
high productivity and effective support for technological and process innovation. These
needs are met through an organizational culture that embodies
Ford Motor Company succeeds partly because of tis organizational culture. The
features of this culture are linked to the firm’s mission and vision, and the nature of its
business.
Own Working Together. In the One Ford plan, teamwork is among the most important
priorities in the company’s organizational culture. This characteristic of the firm’s
organizational culture entails employee participation. The company also emphasizes
personal development through team involvement and support. Ford’s organizational
culture facilitates teamwork combined with individual knowledge and skills development.
Role Model Ford Values. Ford Motor Company’s employees represent the business
and its values. This feature of the firm’s organizational culture builds integrity and
positive behaviors among workers. For instance, Ford’s values include initiative,
courage, and corporate citizenship. The company’s organizational culture also focuses
on quality, safety and sustainability in all business activities.
19
`
Deliver Results. This characteristic of Ford’s organizational culture is all about
effectiveness in satisfying customers and achieving business goals. The company also
highlights responsibility and accountability. By delivering results, Ford maximizes
financial performance through its organizational culture. In addition, this feature of the
organizational culture motivates Ford’s employees to achieve higher levels of career
development to deliver more to customers and other stakeholders.
20
`
Training Needs of Ford
Technical Training
Service Technician Specialty Training (Web Based and Instructor Led Classroom)
Web Based and Instructor led training provides fleets access to the same best in class
technical training that Ford and Lincoln dealers utilize. The Ford Fleet Training Package
is available via a subscription to all our fleet customers.
Click Here for more information on Ford Fleet Publications and Training Subscriptions
On-Site Technical Training
Ford Motor Company knows how important it is to keep your fleet operating and that
trained technicians are key to that goal. Ford offers an option for on-site training to meet
your technicians where they perform their repairs.
Motorcraft Service Training
Ford Motor Company offers web based training that can be purchased direct without a
subscription or classroom scheduling. This training is a great fit for those fleets that wish
to purchase a select few courses versus a large-scale program.
Tech Talk Videos
Watch and learn diagnosis and repair tips for Ford vehicles on YouTube. What’s the
latest powerful tool in the Motorcraft and Ford Parts world? Ford Power Force Tech
Talk. It’s a series of video blogs that are targeted to Ford and Lincoln service
technicians, independent repair facility techs and interested DIY-ers. The Series
provides an insider’s scoop via Ford engineering-approved repair tips, diagnostic
information and even testing processes. Watching Tech Talk helps techs and Ford fans
fix it right the first time, creating more satisfied customers.
21
`
JD & JS of Ford Motor Company
Business Unit AUTOMOBILE
Roles & Responsibilities 1. To work with the team and to achieve the
organisational goal.
2. To Help in drafting new HR Policies for the welfare
of the employees.
3. To assist the team in achieveing the target in time.
Recruiter Name
Recruiter Designation
Recruiter Contact Details
22
`
Conclusion
From the above analysis of the various fields of Marketing, Human Resources and Finance it is
clear that the company is enjoying a good financial position also. But with the advent of Electric
Vehicle it may face some problems. Considering the Marketing aspect the it has seen a
substantial increase in sales if its products like EcoSport.
Bibliography
I have taken the help of the following websites to collect the data
1. www.ibef.com
2. www.ford.com
3. www.naukri.com
23