FORD CASE ANALYSIS

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 ABOUT FORD:
• Ford is an American Multinational Automobile Manufacturing Company , headquartered in
Dearborn, Michigan, United States.
• It was founded by Henry Ford and incorporated on June16,1903.
• The company sells automobiles and commercial vehicles under the Ford brand, and luxury cars
under its Lincoln luxury brand.
• Ford also owns Brazilian SUV manufacturer Troller, an 8% stake in Astro Martin of the United
Kingdom and a 32% stake in Jiangling Motors.
• The number of employees in Ford worldwide are 1,86,000 as per Official Ford Website .
Continued …

 It is the second largest US based automaker and the fifth largest in the world.
 It has manufacturing operations world wide, including in the United States, Canada, Mexico, China ,
India , the United Kingdom, Germany, Turkey, Brazil, Argentina, Australia, and South Africa.
 As per the latest reports Ford plans to explore expanded semiconductor manufacturing opportunities to
support the automotive industries.
 It also supports the cause to build a healthier planet by going electric and by reducing emissions and
encouraging best practices.
 VISION

 Ford’s vision statement is “people working together as a lean, global enterprise for automotive leadership.” The

company also explains, “Automotive leadership is measured by the satisfaction of our customers, employees,
investors, dealers, suppliers, and communities”.

MISSION

 Ford’s corporate mission is “to make people’s lives better by making mobility accessible and affordable. “ This

mission statement focuses on moving people, which is the basic function expected on automobiles and the
transportation sectors. Such emphasis on mobility indicates the purpose of Ford’s business in society.
INTERNAL ASSESSMENT
Comprises of
 Internal Strength and weakness.
 Basis of establishing objectives and strategies.

Ford’s strength includes

 Strong brand image
 Continuous development and unique product

Ford’s weakness includes

 Diversification
 Dependency on particular country
EXTERNAL ASSESSMENT
Comprises of
 External threats and opportunity
 Competitive Dynamics
 Industry analysis

Ford’s threats
 Competition
 Price fluctuation of RAW material
 Government Regulation

Ford’s Opportunity
 Ready and equipped to bring/accept new technologies
 Increase the customer base
 SWOT ANALYSIS

Strength Weakness

1. Strong brand image 1. Limited global scope of the

2. Global supply chain production network
3. Effective innovation 2. Higher costs compared to
process competitors
3. Slow innovation process

Opportunity
Threat
1. Global expansion through 1. New entrants
market penetration 2. Hi-tech firms
2. Growth through product 3. Fluctuating oil
development prices.
 High Low

High
South America
Europe Asia pacific
BCG Matrix

Matrix of Boston consulting Group

Low North
Middle East &
America
Africa
PORTER’S FIVE FORCE MODEL
PESTLE ANALYSIS
POLTICAL FACTORS TECHNOLOGICAL FACTORS
 Government stability and policies Increasing use of online fulfillment services
  Governmental effort for infrastructure in developing countriesRising use of mobile computing
 International trade agreements Limited network of alternative fuel stations

ECONOMIC FACTORS ENVIRONMENTAL FACTORS

Growth of economy Climate change
High growth rate of developing markets  Declining oil reserves

SOCIAL FACTORS  LEGAL FACTORS

Environmental protection regulation
 Increasing demand for hybrid and electric automobiles
Increasing intellectual property laws worldwide
 Moderate attitude about customer service 
RECOMMENDATIONS
 Research Before designing a new model
 Innovation
 Green vehicles
 Marketing
 Price
EPS-EBIT ANALYSIS
 A tool to optimize the capital structure from Income statement.
 Balance a company’s debt with its equity.
 FINANCIAL STATEMENT
  1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Revenue, $ 1,46,997 1,53,627 1,44,416 1,62,558 1,70,064 1,62,412 1,63,420 1,64,196 1,71,652 1,77,089 1,70,425

Gross margin, % 25.9 29.1 27.4 26.8 25.8 20.5 23.4 20.9 20.9 18.2 6.9

Operating Margin, % 10.7 13.1 11.8 11.4 10.4 2.1 6 4.9 6.2 4 5.1

Operating income, $ 15,707 20,142 17,013 18,592 17,718 3,354 9,857 8,118 10,681 7,010 8,167

Net Income, $ 4,381 6,866 21,964 7,222 3,452 5,468 995 495 3,487 2,024 12,613

Cash flow from oprations,

$ 19,257 27,634 23,100 29,811 33,746 22,764 18,633 20,195 24,514 21,674 9,609

Free cash flow, $ 10,411 18,585 14,373 21,276 25,416 15,756 11,355 12,446 17,769 14,157 2,761
CONCLUSION
 Ford Motor Company has definitely lifted the view of what a car is today compared to 15 years ago, and
social media has only helped expand the option of what a car company can do. By connecting with as
many groups as possible, Ford can get people excited about their cars, and make them more excited when
new vehicles are announced.

 At the North American International Auto Show (NAIAS), Ford announced a new
program, called Ford Pass, that would allow Ford owners to gain benefits through their cars. These
benefits, which are gained through an application on the owner’s phone, will only help expand the scope
of what a car company will be able to do for the consumer after a vehicle is purchased.

 In addition, services like parking solutions, will not require ownership of a Ford
vehicle, which shows the company’s dedication to the general consumer. Through this new app, Ford
should be able to acquire even more car shoppers and keep the ball rolling.
THANK YOU