A report on Ford Motor Company covering its structure, culture, strategy and Swot Analysis.

1. Ford Motor Company
Presented By –

2. Introduction
 American multinational automaker, founded by Henry Ford on
June 16, 1903 with headquarters at Deaborn, Michigan
 Second largest automaker of US and fifth largest worldwide.
 Ranked 9th on the 2012 Fortune 500 list.
 Symbol of success for other motor companies in the world.

3. Products, Sales and Revenue
 Sells broad range of
automobiles under
different brand names.
 Strong growth in sales
all over the world.
 14 straight quarters of
operating profit in 2012
 Tough competition from
other brands like GM
and Chrysler.

4. Organizational Culture
 People Orientation - care for clients, stock holders
and employees.
 Aggressiveness - employee involvement plan
 Team Orientation - importance of working together
as one team to achieve automotive leadership
 Outcome Orientation - focus on quality
 Attention to detail
 Innovative and risk taking

5. Corporate social responsibility
 Participates in solving labour issues across supply
chains round the world
 Factories themselves put out a carbon footprint
 Making electric automobiles and producing better
MPG on their gasoline and diesel powered
automobiles
 Rated among the top 25 companies in the world in
CSR; earned best-in-class status for its
environmental and social performance
 Recognized as one of the world's most ethical
companies by Ethisphere.

6. Corporate Strategies
 Growth strategy
 Concentration – Focus on quality over quantity
 Vertical integration - Consumer loans and credit to
dealerships through Ford Motor Credit Company
 Horizontal integration
 Related Diversification – Joint Venture with Aston
Martin
 Renewal strategy – Discontinuation of brands
owing to financial debts.
 Stability strategy – Focus on production of
fuel efficient vehicles

7. Competitive Strategies
 Bargaining power of Suppliers - Significant buying
power over its parts suppliers.
 Bargaining power of buyers - Limited scope of
bargaining in retail. Concession given by dealers are
financed by Ford Motor Credit Company.
 Threat of new entrants - Barriers for new entrants in
the field.
 Threat of substitutes - Public transport as an
imperfect substitute.
 Current Rivalry - Five major competitors

8. Organizational structure
 Very complex structure fairly mechanistic in nature.
CEO
CHAIRMAN
Chief financial Chief operating Chief technical Executive vice Group vice
officer officer officer presidents presidents
 Rigid departmentalization
 Low span of control
 High Centralization

9. STRENGTHS
US market position WEAKNESSES
Financial performance High cost structure
ECOnetic approach Unprofitable Europe operation
ONE FORD approach Low exposure to Asia Pacific
Growth in China
SWOT
ANALYSIS
OPPORTUNITIES THREATS
Green Vehicles Decreasing fuel prices
Increasing fuel prices Rising raw material prices
New emission standards Intense Competition
Strategic partnerships Fluctuating exchange rates

10. SUGGESTIONS BASED ON
SWOT
 Try to expand sales in the Middle East.
 Try to gain share in some major oil companies
 Take advantage of the growing needs of public
transports.
 Reduce cost structure
 Risk sales in the US to cover the subsidy in third world
countries, given the large size of potential customers
 Multiple raw material suppliers
 Production of cheaper motor vehicles in masses
rather than the making of luxury cars
 Reduce the degree of centralization