A case study of Ford

Company, UK
PART 1 – GROUP PRESENTATION
 • Assessing how well a company's
marketing and operational strategies and
tactics integrate.
Key Points • In terms of marketing and operations, the
organization should work to enhance its
strategic and tactical fit.
 1. The company
2. Operations management
3. External analysis
• PESTLE Analysis
• Porter’s 5 Forces
4. Internal situational analysis
Index • Mckinsey 7s framework
• Porter’s Value Chain
5. SWOT analysis
6. Marketing strategy
7. Conclusions and recommendations
  Ford Motor Company is a major global automaker.
 It sells luxury brands under the Lincoln brand and commercial vehicles under Ford brand.
 United States-based Dearborn, Michigan is the company's primary base of operations.
 With the Ford and Lincoln brands, the corporation was created by Henry Ford on June 16,
1903 (Business Insider, 2015).
 There are also some tiny stakes in Aston Martin (UK), Mazda (Japan), and Ford Credit lines
as financial services (Japan).
The  Among Ford's various product lines are the Ford Fiesta; the Ford Focus; the Ranger; the

company Escape; and many others.

Vision

To
become
world’s
most
trusted
company
Mission
To improve the quality of people's
lives and build local communities. Its
goal is to promote human progress by
allowing people to travel freely.
Competitive
position

Fig 1: Ford car market share in the UK from 2016-to 2020

(Statista, 2022a)
 Sales
comparison

Fig 2: Ford car sales from January 2017 to December 2020 in the UK,
(Statista, 2022b)
 Product and service Human resources and
design job design
Management of quality Inventory control is
Designing capacity and important
Operations processes Programming
management Choosing a location Maintenance
Management of the
supply chain (Forbes, 2018).
Design and planning for
the layout
 Variety

Volume
Four V’s of
Ford
variation

(Ford Media, 2019)

Visibility
 Innovative global logistics

Fresh thinking for every challenge

Process and Tools for flawless

layout design moves

Exceptional
Resale
Vehicles

(Forbes, 2019)
Process
map
  In order to maximize resources and workflows, Ford's OM
has been used.
 The major purpose is to create, run, and deploy a centralized
Objectives of logistics network.
operations  Improvements in supplier and carrier responsibility and
management performance can be achieved by streamlining procedures
supplying
 Ford with up-to-the-minute financial and supply chain data.
 They also sought to increase consumer satisfaction and
improve product quality, both of which they achieved
(Barrons.com, 2020)
 The theories/frameworks:
External 1. PESTLE ANALYSIS
analysis 2. PORTER’S 5 FORCES
 PESTLE
ANALYSIS
PESTLE ANALYSIS
PESTLE continue……

• Getting clients in an increasingly saturated market would be tough. 25

percent of those under 45 said they would change their transportation
mode, and 16 percent would pay more for more environmentally friendly
Social options. However, it is also the most costly electric car for middle-income
families. Ford wants to invest $11 billion in new technology for cleaner,
greener communities by 2022.

• With cutting-edge technology, you may compete in the car sector and
acquire a competitive advantage. Because the UK is exiting the EU in
December 2020, a carbon price should be implemented. The UK carbon
tax was designed to exempt low-emission installations, allowing firms to
Technology invest in low-carbon power generation and technology (Gov.uk, 2020).
(Gov.uk, 2020). Ford may obtain a competitive edge by focusing on
energy lines, ignoring other industries' high levies, even with hybrids. Also
in April 2019, the “Go Electric” event allowed Ford Europe to show out
electric automobiles (Ford Media, 2019).
Pestle continue…..

• Ford must comply with all local laws in order to function successfully.
Wage and hour laws, as well as product safety and human rights laws,
apply to employers. Ford uses a certified audit procedure to verify
employee health and safety and management system performance (Ford
Sustainability, 2020). As of 2019, 270,000 Ford Fusions were recalled
Legal owing to transmission difficulties, and 3 million will be recalled in 2020
due to the door latch and brake issues (CNBC, 2019). Ford's quick
response to the findings benefited its long-term legal and moral
compliance.

• Ford isn't the only automaker recognizing the importance of sustainability

as a differentiator in the industry. Cars that use less fuel and release fewer
Environment CO2 are part of Ford's overall environmental strategy, which extends
beyond lowering production impacts (Ford Sustainability, 2020). Fusion
al Hybrid and Focus Electric are two of Ford's current lines of electric
vehicles, but the company wants to expand electrified options to all
models in a lucrative growth strategy (Ford Media, 2019).
 Porter’s Five
Forces Analysis

Porter’s five forces model

 Porter’s five forces analysis
New entrants barriers Buyers powers Threat of rivalry

Due to the high expense of founding an Consumers make little, discrete

automobile firm, new competitors are
unlikely. Ford uses innovation and
technology to maintain and attract new
customers while keeping existing ones.
Ford's product requirements are regularly
assessed for materiality (Ford
Sustainability, 2020).
purchases when the company's
supply is constrained. Switching
brands is simple for customers.
Due to a lack of substitutes, Ford
should ensure consumer
satisfaction.
Strong competitors like BMW,
VW, Mercedes, Audi, Toyota, and
the like can affect Ford. Ford's
rivals would invest a lot to stay in
the auto industry because of the
high barriers to entry and exit.

Threat of substitute Power of suppliers

Ford faces a moderate danger because of
lower-cost alternatives, but the company's
excellent customer service and
commitment to environmental
sustainability help mitigate this risk. High
quality and design competitiveness in the
car sector along with comparable costs.
Due to an effective network of various
suppliers, Ford possesses modest
bargaining strength. In order for Ford to
achieve backward vertical integration, the
Ford River Rouge Complex provides the
corporation with the necessary scale and
lower expenses (Business Insider, 2015)
 Internal Analysis frameworks:
situational 1. Mckinsey’s 7s framework
2. Porter’s value chain analysis
analysis
(Resources, capabilities,
and competencies)
 The 7S of Mckinsey’s 7S strategic
framework are –
1)Strategy
2)Structure
Mckinsey’s 3) Systems
7 s model 4)Skills
5)Staff
6)Style
7)Shared Values
 The 7s framework for FORD UK:
Hard
1) Strategy: Ford needs to achieve a balance
between short-term cost savings and long-
term competitive advantage. With Ford, you
get more than you pay for, according to the
common perception.
2) Structure: Process improvements, such as
risk management and CRM are needed across
the whole organization.
3) Systems: There are a number of factors that
might threaten the long-term viability of Ford
Motor, including climate change, geopolitical
tensions, and other issues. Ford's hierarchical
structure is in need of improvement.
(Horton et al., 2016)
Soft
1) Skills: Ford Motor Company's human resource management
might be strengthened by: remote hiring and onboarding.
The ability for anybody to approach anyone at any level for
a conversation.
2) Staff: It is possible for Ford to build a comprehensive
training and development program for remote employees.
It's possible that Ford Motor Company will want to hire
fresh talent since some of its current employees are not
demanding enough.
3) Style: In order to increase output, managers should take on
a more cooperative and inclusive approach. Smaller teams
inside larger ones should be formed by leaders.
4) Shared Values: Its core values, mission, and goals are at the
heart of the company's strategic strategy. In terms of
common values, there have been little if any alterations.
 Porter’s value chain model

Porter’s
value
chain
(Primary and
secondary
activities)
 Primary activities
1. Inbound logistics: The ability to receive, store, and distribute goods is crucial.
Insufficient analysis of incoming logistics may cause problems in product
development.
2. Operations: We are ready to turn raw resources into completed items and then put
them on the market when they come. Machining, packing, assembly, and testing
Primary are all part of the job. Repair and upkeep of equipment are also covered.
3. Outbound logistics: An intermediary is used to deliver the goods to the customer.
activities Ford Motor Firm may analyze and optimize its outbound logistics in order to
FORD UK acquire a competitive edge and build its company
4. market and sales: Ford Motor Company will emphasize the benefits and
distinctive characteristics of its items to convince buyers that they are superior to
rivals. For example, Ford leverages its salespeople to build connections with
channel members through promotions and events.
5. Services : Building client loyalty will be facilitated by Ford’s pre-and post-sale
services. Marketing and promotion are no longer enough for today's customers.
They need after-sale care as well.
 Secondary activities
1. Firm infrastructure: With good infrastructure management, Ford Motor
Company may be able to maximize the value chain. Controlling infrastructure
operations gives Ford a competitive advantage.
2. Human resource management: Ford Motor Company may be able to reduce
Secondary competition pressure by enhancing employee motivation, devotion, and
competence. Analyzing the relative return on recruiting and training expenses
activities may also assist reduce costs.

FORD UK 3. Technology development: To remain competitive in production, distribution,

marketing, and human resources, Ford must embrace technological
development.
4. Procurement: Product development and process development are two types of
technology development. Ford Motor Company's procurement practices should
be carefully scrutinized due to its value chain connection.
 SWOT
Analysis
 Strengths:
1. Popular brand globally.
2. Significant customer loyalty
2. Remarkable reputation
3. The long-term viability of a company’s
human capital and its suppliers
4. Huge distribution network and
manufacturing plants (SMMT, 2020).
SWOT for
FORD UK Opportunities:
1. Presently Ford has 55 manufacturing
and assembly plants.
2. Over 400 dealership networks in
Britain.
3. Electrified vehicles for lowering carbon
footprint.
4. Top selling brand in UK with high
market share.
5. Shake hands with Volkswagen to
reduce the intensity of competition in
Europe (Reuters, 2020).
Weaknesses:
1. Low vehicle dependency compared to
competitors.
2. Limited design phase and innovation
structures
3. Lack of focus on high performance
lines.
4. Poor cost management results in
decline of sales.
Threats:
1. Probability of increasing fuel price
and raw materials.
2. Revenue and growth still lagging
behind big competitors.
3. Insecurity of advanced technology.
4. After covid-19, the overall economy
is temporarily down in the UK (The
Conversation, 2019)
 4 Ps of Ford company the UK
Product:
1. Automobiles Place:
2. Trucks 1. Dealerships
3. Buses 2. Automobile repair shops
4. Tractors 3. Parts.ford.com
5. Automotive parts/components 4. The Ford Motor Company Credit
Marketing 6. Financial services Union
7. Vehicle leasing
Strategy
Promotion:
1. Direct selling Price:
2. Personal selling 1. Pricing strategy based on the
3. Advertising market
4. Sales promotions 2. Strategy for premium pricing
5. Public relations
Conclusion and recommendations
• The evaluation of the strategic and tactical fit of the organization from a
marketing and operations perspective the organization should do to
improve its strategic and tactical fit in respect of marketing and
operations.

• Ford has a strong foothold in the European automotive industry,

Marketing particularly in the UK, where the company's commercial vehicles are
making a profit.
strategy • To guarantee that goods are properly tailored to differing worldwide
preferences, regional product diversification is required.

• Its purpose is to build a competitive business in the emerging sector of

electrified cars in Europe over the next several years, including
appropriate research, development efforts, and a new vehicle design.
Continued….
• Focusing on Ford’s high-performance lines in Europe, the company
has restructured its business structure. In light of the company's
worldwide facilities, this is a reasonable course of action.

• In spite of reducing the number of distribution channels in Europe,

Ford can still serve all areas and ensure that consumers who want
Operational to buy their goods or need assistance have quick and easy access
(Forbes, 2018).
strategy • It is also possible for the organization to obtain a high level of
client satisfaction via the use of cutting-edge technology and
outstanding service.

• Supply chain expenses might be reduced by centralizing logistics

activities, which would boost network velocity and visibility.
References
• Autonews, 2019. Why Ford is restructuring in Europe — again. https://www.autonews.com/blogs/why-ford-restructuring-europe-again
• Barrons.com, 2020. Ford Stock Is Falling After Earnings Missed Forecasts. The Guidance Was Disappointing Too.
https://www.barrons.com/articles/ford-stock-is-falling-after-a-disappointing-outlook-51580852696
• Business Insider, 2015. Tesla could learn something from Henry Ford.
https://www.businessinsider.com/tesla-could-learn-something-from-henry-ford-2015-9
• CNBC, 2019. Ford recalls 270,000 Fusion cars to fix glitch that can cause vehicles to shift gears and roll away.
https://www.cnbc.com/2019/05/15/ford-recalls-fusion-cars-to-fix-glitch-that-can-cause-them-to-roll-away.html
• Forbes, 2018. How Committed Is Ford Motor To Its European Operation?
https://www.forbes.com/sites/neilwinton/2018/01/21/how-committed-is-ford-motor-to-its-european-operation/#49e4cf5620ea
• Forbes, 2019. Ford Europe Starts Restructuring, But Profitability Looks Distant.
https://www.forbes.com/sites/neilwinton/2019/03/17/ford-europe-starts-restructuring-but-profitability-looks-distant/#118b5b52dfcc
• Ford Media, 2019. Ford European Sales hit 21-year record. https://media.ford.com/content/fordmedia/feu/en/news/2019/09/16/ford-european-sales-
hit-21-year-record.html
• Ford Sustainability , 2020. Sustainability Report 2020. https://corporate.ford.com/microsites/sustainability-report-2020/index.html
• Gov.uk, 2018. Policy paper Industrial Strategy: Automotive Sector Deal (HTML).
https://www.gov.uk/government/publications/automotive-sector-deal/auto
• Gov.uk, 2020. Policy paper: Changes to tax provisions for Carbon Emissions Tax.
https://www.gov.uk/government/publications/changes-to-tax-provisions-for-carbon-emissions-tax/changes-to-tax-provisions-for-carbonemissions-t
ax
• Horton, J., Cc, H., Lillie, C. and Decker, T., 2016. Ford: The Evolution of Autormobiles, Components, and Design. University of North Carolina at
Pembroke.
• Independent, 2017. Brexit uncertainty is dragging the UK economy down and people's wages with it, says Mark Carney.
https://www.independent.co.uk/news/uk/politics/brexit-uncertainty-mark-carney-uk-eu-economy-future-wages-eu-single-market-customs-unionban
k-a7874956.html
• Independent, 2020. Coronavirus: Pound falls to lowest level against the dollar for 35 years.
https://www.independent.co.uk/news/business/news/coronavirus-pound-value-dollar-market-crash-gbp-exchange-rate-a9408881.html
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https://www.independent.co.uk/news/business/news/coronavirus-pound-value-dollar-market-crash-gbp-exchange-rate-a9408881.html
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https://www.financialdirector.co.uk/2019/06/07/how-will-brexit-impact-the-uks-automotive-industry/
• Reuters, 2018. Ford follows GM's Cruise move with self-driving spinoff.
https://www.reuters.com/article/us-ford-motor-autonomous-idUSKBN1KE24P
• Reuters, 2020. Ford, Volkswagen target 8 million vehicles in van alliance.
https://www.reuters.com/article/us-ford-motor-volkswagen-electric-idUSKBN23H1T1
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https://www.smmt.co.uk/industry-topics/europe-and-international-trade/
• Statista Research Department, 2020. Leading car companies' monthly UK market share 2020.
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https://www.statista.com/statistics/300423/ford-car-market-share-in-the-united-kingdom/
• Statista. 2022b. Ford car sales in the United Kingdom (UK) from January 2017 to December 2020.
https://www.statista.com/statistics/300381/ford-car-sales-in-the-united-kingdom/
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