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16 July 2009case study analysis 2
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"Make Every Day Exciting"
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Born on July 28, 1863. Green field Township, Dearborn, Michigan, U.S.
Founder of Ford Motor Company.
Introduced Model T.
Father of Assembly lines used in mass production.
Awarded 161 U.S. Patents
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Ford set out to build a car which everyone could afford to buy .
Model T – Tin Lizzie –Flivver.
The attraction of the Model T was that its price never increased.
Costing $1200 in 1909, the price in 1928 was only $295.
By 1928 Ford was producing more than one car per minute.
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Cars were mass produced and every part was standardized
Only one color and one engine size were available.
By producing large number of cars on an Assembly Line Ford needed fewer skilled people and that cut the cost of paying wages.
Assembly Lines : ‘… each man and each machine do only one thing ... the thing is to keep everything in motion and take the work to the man not the man to the work’
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Car Industry Mass productions &
Standardization lead to increased car sales.
More Oil is used
More roads are built.
More Standardizedparts are needed
More people withjobs means that
they can afford tobuy a car!
More jobs arecreated in other
industries.
Steel
Glass
Rubber
Leather
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In 2007, Ford fell from the second-ranked to the third-ranked automaker in US sales for the first
time in 56 years, behind General Motors and Toyota.
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By 2009, Ford had become the second largest automaker in Europe (only behind
Volkswagen)
In 2008, Ford produced 5.532 million automobiles and employed about 213,000
employees at around 90 plants and facilities worldwide.
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1928 model A
1929 model AA
1931 model Tudor Sedan
Ford fiesta
New ford fiesta
1946 ford sedan
Endeavour
Ford Ikon
Automotive Industry
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BRAZIL
Produced almost 3 million vehicles in 2007.
Global companies are present in brazil, such as fiat, Volkswagen, ford, gm, Nissan, Toyota, Mitsubishi, Mercedes-Benz, Renault etc
BRITAIN
Always been export oriented.
Today , employs about 850,000 people and produces about 1.5 million cars and 216,000 commercial vehicles per year, 75% of which are exported.
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CHINA
Rapid development since the year 2000.
In 2008, 9.345 million motor vehicles were manufactured surpassing U.S. As the second largest automobile maker, after japan.
The top 5 car sellers are Volkswagen, GM, Toyota, Nissan and Chery.
GERMANY
The automobile was invented in Germany by Carl Benz.
Ten car manufacturers : Porsche, Volkswagen, Audi, Bugatti, Lamborghini, Bentley, Skoda Auto, MAN, SEAT and Scania AB.
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JAPAN
The biggest auto manufacturing country in the world.
Nissan began making trucks in 1914, and sold cars under the Datsun brand until it switched to Nissan in the 1980s
Other major companies include Subaru, Mitsubishi, Mazda, range rover, Chevrolets, Suzuki, and Isuzu
SOUTH
KOREA
The fifth largest in the world in terms of production volume and the sixth largest in terms of export volume
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INDIA
One of the fastest growing in the world.
Domestic production is skyrocketing .The number of cars sold domestically is projected to double by 2010.
10-year plan aims $145 billion auto industry by 2016.
$375 billion by 2015, up from $65 billion in 2002.
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INDIA
The production of automobiles in India is largely aimed at local consumers.
Several Indian manufacturers also export a diverse variety of auto components.
Prediction of sales of 42 lakh four wheeler automobiles in India by 2015. Indian passenger vehicle exports are also expected to rise from 1,70,000 in 2006 to 5,00,000 in 2010.
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Export scenario
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It displayed a turnover of $160.1 billion (against $176.9 billion in 2005) and a historical loss amounting to $12.7 billion (against a profit of $1.44 billion in 2005) (...)
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FORD ENTERING INTO INDIA
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Ford has been in India since 1907, but received government approval to forge a 50:50 partnership with Mahindra and Mahindra in 1995.
In 1998, got the green signal to increase its stake in the joint venture to 92.18 percent and the company was re-christened as Ford India Pvt. Ltd.
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FORD IN INDIA
cars spring to life at Ford's ,Rs. 1700 crore integrated, manufacturing plant at Maraimalai Nagar, 45 kmsfrom Chennai.
The plant, equipped with advanced manufacturing technology from Ford, covers 350 acres, provides employment to about 2,000 people directly and thousands indirectly .
has a capacity to manufacture upto 100,000 vehicles per annum.
Ford is a 6-Sigma company. Every step of every process is planned to perfection.
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special cell called the "Environmental Management system”
Apart from this , Ford India Ltd. has always been vital in looking into the matters of social commitments.
tries to employ locals in the manufacturing unit.
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TO BE A GLOBAL, DIVERSE FAMILY WITH A PROUD HERITAGE, PASSIONATELY COMMITTED TO PROVIDING OUTSTANDING PRODUCTS AND SERVICES.”
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Aggressively restructure to operate profitably at the current demand and changing model mix.
Accelerate development of new products our customers want and value.
Finance our plans and to improve our balance sheet.
Work together efficiently as one team.
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An exciting and viable FORD, delivering profitable growth for all .
To sell all its car manufactured under its name by satisfying all the needs and demand of its customers.
To gain operational efficiency in its work place
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SWOT Analysis
STRENGTS WEAKNESS
•Strong Ford Asia, Africa and Ford
Mazda operations
•Growing Ford Europe
•Profitable financial services division
•Weakening North American
automotive operations
•Tarnished brand image
•Large unfunded pension and other
obligations
OPPURTUNITIES THREATS
•The way forward plan
•Hybrid vehicles
•Opportunities in India and China
•Rising raw material prices
•Increasing competition
•Low capital spending
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Ford Mondeo
MONDEO was a product in the D-segment
Elegant, muscular exterior and stylish interior designed with quality, makes driving a pleasure.
Innovative technology is used .
Originally launched in Europe.
Was rated as the car of the year in Europe, and was quite successful especially in the UK.
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Electronic Automatic Temperature Control AC with 4 speed blower and heater.
Power adjustable driver and front passenger seats.
Front foot well courtesy lights, Rake and tilt adjustable steering.
Front passenger seat lumber support, Analogue clock, Audio system.
Rear seat folding center armrest.
Rear seats with adjustable height and Fuel computer.
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MONDEO was not quite popular in India as FORD did not indulge in aggressive marketing.
Moreover, it also faced competition from other cars in this segment like Honda accord and Hyundai Sonata.
The posture in the front seat was uncomfortable.
It was not preferred during long journeys.
During rains, the discs made a screeching noise.
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First and foremost, the company did not have an effective advertising strategy in place.
Ford indulged in slow skimming i.e launched MONDEO at an exceedingly high price and spent less on promotion.
It was priced at an exceedingly high price of 16lacs.
Lack of availability of car parts and service stations.
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# The Ford Mondeo is one of the most adorable new luxury cars to have come out from the Ford stable.
# Powered by a 2 litre 16 V DOHC engine and uses a refined sequential Electronic Fuel Injection System.
The Mondeo is back — and Version 2.0 claims to be stronger, fitter and a better rival to the all-conquering Honda Accord.
the headlamps have modified, the expensive Xenon lamps being discarded in favour of twin halogen units, and there’s a new bumper, with a wide air-intake and angular fog lamps, replacing the sporty, round-foglamp unit.
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