Upload
kashanpirzada
View
9
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Strategic Management Presentation on FORD Motors.
Citation preview
1Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
1
2008 Case Study
2Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
INTRODUCTION AND BACKGROUND
PRODUCT LINE AND LOGO
ANALYSIS OF VISION AND MISSION STATEMENT
2
3Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
Ford Motor Company, a global automotive company based in Dearborn, Mich., manufactures
Distributes automobiles across six continents. about 213,000 employees and about 90 plants Worldwide
Wide variety of product line
3
4Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
The Dream Becomes a BusinessFord Motor Company entered the business world on June 16, 1903, when Henry Ford and 11 business associates signed the company's articles of incorporation.
With $28,000 in cash, the pioneering industrialists gave birth to what was to become one of the world's largest corporations.
Ford Motor Company's beginnings were modest.The earliest record of a shipment is July 20, 1903, approximately one month after incorporation, to a Detroit physician. With the company's first sale came hope young Ford Motor Company had taken its first steps.
5Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
The StoryThe logo of FORD is the white letters “F O R D” with blue background. Its inspiration is from the founder Henry Ford, who loves little animal very much, so the logo designer has the idea to draw the FORD letter as a little rabbit accordingly
6Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
Ford Motor Company offers a wealth of variety to the automotive consumer. As they start their second century of business, they are in a position to appeal to the widest range of potential customers. Each of their automotive brands has a unique personality and holds a distinct place in the Ford Motor Company family.
7Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
Aston Martin
Ford
Jaguar
Land Rover
Lincoln
Mazda
Mercury
Volvo
8Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
8
9Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
Ford Credit
Genuine Parts
Motocraft
10Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
Our Vision to become the world's leading Consumer Company for
automotive products and services.
10
11Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
The new mission answers the following questions 1) Customers: Who are the firm’s customers?2) Products or services: What are the firm’s major products?3) Markets: Geographically, where does the firm compete?4) Technology: Is the firm technologically current?5) Concern for survival, growth, and profitability: Is the firm committed to growth
and financial soundness?6) Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities
of the firm?7) Self-concept: What is the firm’s distinctive competence or major competitive
advantage?8) Concern for public image: Is the firm responsive to social, community, and
environmental concerns?9) Concern for employees: Are employees a valuable asset of the firm?
12Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world. We anticipate consumer need and deliver outstanding products and services that improve people's lives. Our business is driven by our consumer focus, creativity, resourcefulness, and entrepreneurial spirit. We are an inspired, diverse team. We respect and value everyone's contribution. The health and safety of our people are paramount. We are a leader in environmental responsibility. Our integrity is never compromised and we make a positive contribution to society. We constantly strive to improve in everything we do. Guided by these values, we provide superior returns to our shareholders.
12
13Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
EFE MATRIX
IFE MATRIX
SWOT MATRIX
13
14Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
14
15Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
15
16Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
16
17Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
17
18Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
YRC SWOT Matrix
Strengths – S 1. Large scale of operations 2. Operating leverage 3. # 3 in ground transport / #1 in LTL 4. Large range of assets / non assets 5. # 1 “Most Admired Company 6. Joint venture in China 7. Cost of purchasing synergies by
merger
Weaknesses – W 1. Driver turnover 2. Various brand names 3. Low operating margin 4. High wages to Teamster drivers 5. Underutilized trucks 6. Overlap due to mergers
Opportunities – O 1. Growing Truck Industry 2. Penetrate FedEx / UPS / DHL
market 3. Global market 4. In Position to be regional carrier
after Roadway merger 5. Increase in rail / intermodal and air
transport tonnages
SO Strategies 1. International Expansion (S1, S2,
S5, S6, O1, O3, O5) 2. Expand services to parcel, pallet,
and less than pallet (S1, S3, S5, O2, O4)
3. Do larger loads / larger trailers (S1, S2, S3, S4, S5, O1, O4, O5)
4. Acquire Conway (S1, S2, O1, O5)
WO Strategies 1. Expand Internationally (W6, O1,
O3, O5) 2. Ocean Shipping (W1, W4, W6, O5) 3. Put underutilized trucks to work in
alternative ways – i.e. hauling wood / wood chips (W5, W6, O1)
4. Driver Retention Programs (W1, O1)
Threats – T 1. Alternate shipping methods 2. Shortage of long haul drivers 3. High fuel prices 4. Regulation of trucker hours 5. Increasing toll rates 6. Competition 7. Antitrust
ST Strategies 1. Ocean shipping (S1, S2, S5, T1,
T2, T4, T5) 2. Air shipping (S1, S2, S5, T1, T2,
T4, T5) 3. Expand services to parcel, pallet,
and less than pallet (S1, S3, S5, O2, O4)
4. Acquire Conway (S1, S2, T6)
WT Strategies 1. Put underutilized trucks to work in
alternative ways – i.e. hauling wood / wood chips (W5, W6, T2, T6)
2. Air Shipping (W1, W4, T1, T2, T4, T5, T6)
3. Ocean Shipping (W1, W4, T1, T2, T4, T5, T6)
4. Driver Retention Programs (W1, T2)
19Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
19
20Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
20
21Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
SPACE MATRIX
BCG MATRIX
BALANCE SCORE CARD
21
22Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
22
FINANCIAL STRENGTHS (FS) ENVIRONMENTAL STABILITY (ES)
Return on Asset (ROA) 1 Rate of Inflation -4
Leverage 1 Technological Changes -3
Net Income 2 Price Elasticity of Demand -3
Net Asset 2 Competitive Pressure -6
Return on Equity 1 Barrier to entry into the Market -2
Financial Strengths (FS) 1.4 Environmental Stability (ES) -3.6
COMPETITIVE ADVANTAGE (CA) INDUSTRY STRENGTH (IS)
Market Share -3 Growth Potential 5
Product Quality -2 Financial Stability 3
Customer Loyalty -2 Ease of entry into the market 6
Technological know-how -1 Resources Utilization 3
Control over supplier & Distributors -2 Profit Potential 4
Competitive Advantage (CA) -2 Industry Strength (IS) 4.2
X-axis: -2 + 4.2 = 2.2Y-axis: 1.4+ -3.6 =- 2.2
23Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
Financial Strength rating is 1 (worst) to 6 (best) Ratings1 Operating revenue 5.02 Operating income 5.03 Net income 5.04 Debt-asset ratio 4.05 Cash flows 5.0
Industry Strength rating is 1 (worst) to 6 (best) 24.01 Growth Potential 5.02 International expansion 5.03 Wages 3.04 Insurances and benefits 3.0
Environmental Stability rating is -1 (best) to -6 (worst) 16.01 Competitive Pressure -5.02 Increase in Fuel Prices -5.03 Rate of Inflation -3.04 Exchange rates -3.05 Antitrust -3.06 Increased regulation of working hours for truck drivers -3.07 Increase in the number of toll road and rates on existing ones -3.08 Technological advance -2.0
Competitive advantage rating is -1 (best) to -6 (worst) -27.01 Large scale of operation -2.02 #3 ground transport provider -2.03 #1 single LTL (less-than-truckload) provider -1.04 Ranked #1 “America’s Most Admired Companies” by Fortune for
3 consecutive years in early 2000s -1.05 Joint venture with China’s conglomerate (Jin Jiang) -2.06 Cost and purchasing synergies by merger -2.0
-10.0
ES average -3.57CA average -1.67IS average 4.00FS average 4.80
X Coordinate 2.33Y Coordinate 1.23
Strategy ->>>>Aggressive
24
Ford motor credit & financingVehicle Brands
Genuine parts and
25Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
1. FINANCIAL Ford company is continuously facing loss Ford has high debt ratios. Low return on investment.
2. CUSTOMER Customers loyalty with ford Strong customer service Comparatively low market share.
25
26Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
3. PROCESS Focusing on product approach rather than customer approach Efficient supply chain management Ineffective employment policy
4. LEARNING AND GROWTH Focusing on new technology Innovate their products Strong in learning hybrid products
26
27Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
CPM
FINANCIAL RATIOS
BLUE OCEAN STRATEGY
CONCLUSION
RECOMMENDATIONS
27
28Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
29Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
Current ratio = 1.3
Quick ratio = 1.3
Receivable turnover =1.3
Inventory turnover = 12.4
ROI = -20%
ROA = -6.7%
Leverage ratio = 12%
29
30Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
Ford’s electrifications strategy
• Pure battery electric vehicles
• affordability
•Fuel economy solution
Planning to invest in new, smaller, fuel efficient vehicles
Blue ocean strategy
31Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
All operation results are worse in 2008
Volvo caused the huge loss
Global recession has adversely affected dealers and suppliers
Lower oil and raw material price offset the weak demand condition
Exchange rates involment
The delays in new models
Conclusion
32Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
32
33Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
33
34Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
34
35Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher
Reducing salary personnel and achieving additional efficiency
Reducing inventory cost
Long-term restructuring action
Developing incremental source funding, including sale of non core assets
Increase warranty cost
Recommendation
36Takifumi Kawahara, Matt Bouchard, Darius Parker, Danielle Boucher