1. Ford and the World Automobile Industry Presented By: ShallyRathi Vijay Sangtani Anuj Jain PoojaArora
2. About The Company Founded June 16, 1903 Founder – Henry Ford Headquarters Dearborn, Michigan, United States Products-Mainstream/Performance vehiclesAutomotive parts Ford is currently the world's fourth largest automaker
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4. Crisis in Automobile Industry Effect of 2008 oil price shock Crash of the credit markets Pressure to produce fuel efficient model Overburdened Health insurance cost
5. Issues of Ford 1) Internal Issues: Lack of Dialogue Inadequate Cooperation Weak accountability Cross functional Conflicts 2) Excess Capacity 3) Inflexible Work Practices 4) Slow New Product Development 5) Erratic Decision Making
6. SWOT Strengths: Strong Ford Asia, Africa and Ford Mazda operations Growing Ford Europe and PAG Profitable Financial services division Weakness: Weakening North American automotive operations Tarnished brand image Large unfunded pension and other obligations
7. Opportunities: Innovations Hybrid vehicles Continuing to expand globally Threats: Rising fuel prices Growth of competitors Rising supply cost
8. PURCHASE DECISION MAP FIRM /BUSINESS UNIT FORD INFLUENCER Car magazine, reviews Car TV and radio shows Environmental Activist Groups, Calcars.org Governments and government agencies DIRECT CUSTOMER DEALERSHIP, FLEET AND CAR RENTAL COMPANIES DEALERSHIP, FLEET AND CAR RENTAL COMAPNIES OTHER FIRM /BUSINESS UNITS GM, TOYOTA. CRYSLER,HONDA ENDUSERS CUSTOMERS/DRIVERS
19. TQM Japan West deals with quality of people customer-oriented upstream process-oriented, aimed at improving the total performance company-wide, everybody's responsibility deals with quality of products manufacturer-oriented downstream product-oriented, aimed at detecting and eliminating defective parts responsibility of quality control managers
20. Measures for Revival Restructuring Cancellation of bonuses for management employees America first Going green for real at a realistic price 80% funding for hybrid or full electrical vehicle Slimming and trimming
21. Current Outlook Early signs of stabilizing in the US market share Uses cash from its global automotive operations Enough liquidity without additional funding S&P gives CCC+ credit rating Tender offer to reduce its debt by 38% contract with UAW leading to insourcing Ford FOCUS and ESCAPE - two of the top eight in Cash for Clunkers program Competitive access to capital at Ford Capital
22. Recommendations Continued salaries cut Steady execution of company’s product introductions Continued discipline in the company’s production/inventory strategy Outsourcing