Executive Summary
Case Statement
Ford Motor Company is the world’s leading consumer company for automotive products and
services. Ford faces challenges of extreme competitive pressures, declining sales and slow innovation
processes. This industry advances quickly and Ford must surpass competition by developing alternative
revenue options.
Mission and Vision Evaluation
Using the matrices evaluations, Ford Motor Company does an outstanding job of implementing
components, the business relies on, into their mission and vision statements. Some of these include; the
company’s philosophy, their concern for employees and customers, and Ford’s self concept, by bettering
others.
Milestones
In 1914, Henry Ford accelerated the manufacturing process by developing a “moving assembly
line”. This assisted the company to surpass the production levels of its competitors, while making
vehicles more affordable. Ford Motor Company has a colorful background including; aerospace, tractors,
supplying the allies’ needs for WWI, alternative fuel, and much more.
External Assessment
Ford Motor Company has several great opportunities that will help their position in the industry.
They have more options for eco-friendly vehicles as they exemplify an innovative attitude towards
“green” vehicles. Along with, development in self-driving technology, which could increase demand for
new models and sales. Ford is focusing on innovation due to the intense competition. This shows the
company is making the right moves to keep up with competition and making the customers happy.
Internal Assessment
Ford is a recognized brand in the global market because of its success in marketing and
advertising. The returns on capital expenditure conveys that the company is successful at execution of
new projects. Ford has a strong reputation and brand portfolio which will be extremely useful when they
want to expand into new ventures. Ford’s commitment allows them to continuously improve the
performance, efficiency, safety and customer satisfaction of their vehicles.
Industry Analysis
Ford faces extremely strong competitors. The company’s strategic growth plan consists of
diversifying the firm which will allow a competitive advantage over others. With new products being
manufactured, customers will have a larger variety of products to choose from. Therefore, increasing
their buyer power. Ford must focus on meeting customers’ changing demands.
Financial Analysis
The most significant factors pertaining to the company’s growth consists of sales revenue and net
income. Ford Motor Company’s current sales/revenue growth rate is a 1.38% increase year over year.
The industry as a whole is experiencing a -1.35% growth rate. Ford’s high current price/earnings ratio is
extremely important because it indicates that the stock is over-valued or that investors are expecting high
growth rates in the future.
Competitive Strategy
If Ford can boost revenues and income, the company would be in a much better position. The
three strategic alternatives that were suggester were; improving the Asian market, expanding
manufacturing network, or develop diverse product. Any of these options address the threats,
weaknesses, and opportunities Ford faces.
Ethical and Social Responsibility
Ford company must remain careful when expanding manufacturing networks. The small details
could negatively influence customers, communities, and the environment. A total of 39 Ford
manufacturing facilities are part of a zero waste fill program. Ford remains to have moral and ethical
responsibilities towards the land and consumers.
Recommended Strategy
According to the created QPSM matrix, the evaluated best option was that of expanding the
manufacturing network. Pinpointing on the electric and autonomous vehicles market, focusing in the
largest automotive market, China. The implementation strategy would take advantages of the Ford’s
strengths while using the opportunities presented.
Implementation Plan
A plan to expand the manufacturing network is doable with Ford. The plan will not be
cheap, it is estimated at a cost of 750 million dollars. Ford will follow a functional
organizational structure. The company will divide the tasks according to business department,
guaranteeing efficiency. Clear objects will be commented to investors, partners and
employees. Between debt financing, majority stock, and majority debt financing, the best
option for Ford Motor Company to finance the development of manufacturer expansion would
be use debt financing.
