ford presentation
DESCRIPTION
• PRODUCTIVIDAD Alcanzar/mejorar los niveles de productividad de Toyota. Aumentar la utilización de recursos. Estandarizar las prácticas/procesos óptimos. Sistema de producción Ford estandarizado. • SATISFACCION DEL CLIENTE Mayor sensibilidad hacia los clientes. Decisiones rápidas e implementación ágil.” Así, el objetivo que Ford Motor Company persigue es "producir mejores productos más rápidamente y a un precio más bajo para satisfacer a más clientes en todo el mundo". Para conseguirlo va a llevar a cabo un rediseño tanto de sus procesos como de su estructura, basando la misma en sus productos y no en las áreas geográficas, como venía actuando desde su creación.TRANSCRIPT
![Page 1: Ford presentation](https://reader030.vdocument.in/reader030/viewer/2022013100/544f39fcaf79596a6a8b6a6b/html5/thumbnails/1.jpg)
Hamill BassueOwen Hendershot
Goran Nagradic
![Page 2: Ford presentation](https://reader030.vdocument.in/reader030/viewer/2022013100/544f39fcaf79596a6a8b6a6b/html5/thumbnails/2.jpg)
Overview• Company Overview
– Ford’s brief history– Mission and Vision statement– Current Objectives &
Strategies• New Mission and Vision• External Assessment
– Industry Analysis– Opportunities & Threats– EFE Matrix
• Internal Assessment– Strengths & Weaknesses– Financial ratios– IFE Matrix
• Strategy Formulation– SWOT Matrix– BCG– Space Matrix– IE Matrix– Grand Strategy Matrix– QSPM Matrix
• Strategic Plan for the Future– Objectives– Strategies
• Implementation – EPS/EBIT– Other issues
• Evaluation
• Ford 2008 Update
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About the Company
• Manufactures and distributes automobiles on six continents, strong presence in all 50 states.
• Employs approximately 224,000 people and operates 90 plants worldwide.
• Brands include Ford, Lincoln, Mercury, Volvo, Mazda and Ford Motor Credit Company (financial service).
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Ford’s Brief History
1903 – Ford Motor Company founded in Michigan1908 – Model T introduced1913 – first moving automobile assembly line in the
world1956 – Ford’s stocks go on sale (10.2 million shares
sold the first day)1987 – beginning of the acquisitions of other
brands1988 – Ford Motor Company reached the peek
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Management
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Mission & Vision Statement
"To become the world's leading consumer company for automotive products and services.“
- Ford doesn’t have vision statement
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Objectives
• To contribute to stabilizing the climate by considering reducing long-term emission
• To promote the development of an infrastructure that will expand the use of bio-fuels and help reduce our dependence on oil
• To cut the usage of global energy by 27% and the usage of water by 25%
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Strategies
• Utilizing their advance technology• Building of smaller vehicle• Cost reduction• Market expansion through joint venture and
strategic alliance
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New Mission & Vision Statement- Both mission and vision are one statement
“Our vision is to become the world's leading consumer manufacturing company for automotive products and services. To achieve this, we the company and all our employees are dedicated to provide all our customers and the community with safe innovative products and services of world class standards. Through our engineering excellence, high quality and the use of our constantly upgrading technology we limit the harm that we cause to the environment while delivering superior value to our customers. Our close knit working environment allows our employees, community and business partner to share in our success, while achieving a substantial return on our shareholders investment. “
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External Assessment
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Industry Analysis
Global Automobile Industry Value Global Automobile Industry Volume
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Industry Segmentation
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Industry Segmentation
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Industry Market Share
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Industry Forecast
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CPM
Ford GMDiamlerChrysler
AG Toyota
Critical Success factorsWeigh
tsRating
Weighted Score
Rating
Weighted Score
Rating
Weighted Score
Rating
Weighted Score
0.0 to
1.01 to
4 1 to
4 1 to
4 1 to
4
Global Expansion 0.14 2 0.28 3 0.42 2 0.28 3 0.42
Financial Position 0.10 2 0.2 4 0.4 3 0.3 3 0.3
Growth 0.16 1 0.16 3 0.48 1 0.16 4 0.64
US Market Share 0.20 3 0.6 4 0.8 2 0.4 2 0.4
Customer Loyalty 0.15 4 0.6 3 0.45 4 0.6 3 0.45
Hybrid/Fuel Efficient Vehicles 0.18 3 0.54 3 0.54 2 0.36 2 0.36
Management Experience 0.07 3 0.21 4 0.28 3 0.21 3 0.21
Totals 1 2.59 3.37 2.31 2.78
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Opportunities & Threats
Opportunities• Consumers demand hybrid
and fuel efficient vehicles• Increase in consumer
spending trends• Consumers demand more
innovative vehicles• Global expansion• Industry experiences slow
and steady growth
Threats• Weak USD• Increase in steel and resin
pricing• Increasing gasoline prices• Stricter CO2 emission
standards• Increasing mortgage rates
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EFE Matrix
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Internal Assessment
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Stock performance
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Financial Highlights
• Income Statement• Balance Sheet• Cash Flow Statement
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Ratios
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Strengths & Weaknesses
Strengths• Strong and globally positioned
brand names• Large employee base with
highly educated engineers and good R&D department
• One of the largest automotive manufacturer (along with a long history)
• 1285% increase in net cash• Huge increase in total equity
Weaknesses• A lot of time spent to actually
put the product on the market• Recording continuous losses
(net income) from 2006• Low quality of new products
(recalls – causing losing customers)
• Lack of management of the company
• EPS very bad – in negative numbers (unattractive for the investors)
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IFE Matrix
Key Internal Factors Weights RatingWeighted
Score
0.0 to
1.01, 2, 3 or
4 Internal Strengths 3 or 4 Strong and globally positioned brand names 0.13 4 0.52Large employee base with highly educated engineers and good R&D department 0.09 3 0.27One of the largest automotive manufacturer (along with a long history) 0.06 3 0.181285% increase in net cash 0.09 3 0.27Huge increase in total equity 0.11 4 0.44Internal Weaknesses 1 or 2 A lot of time spent to actually put the product on the market 0.1 2 0.2Recording continuous losses (net income) from 2006 0.12 1 0.12Low quality of new products (recalls - causing losing customers) 0.12 1 0.12Bad management of the company 0.08 2 0.16EPS very bad - in negative numbers (unattractive for the investors) 0.1 1 0.1Totals 1 2.38
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Strategic Formulation
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SWOT MatrixStrengths – S
1.Marcas posicionadas a nivel mundial Fuertes 2.Gran base de empleados con los ingenieros de alto nivel de educación y un buen departamento de I + D 3.Uno de los mayores fabricantes del automóvil (junto con una larga historia) 4.Aumento de 1.285% en el efectivo neto 5.Enorme incremento en el patrimonio neto
Weaknesses – W1. gran cantidad de tiempo dedicado a poner en realidad el producto en el mercado 2.Grabación de continuas pérdidas (ingresos netos) a partir de 2006 3.La baja calidad de los nuevos productos (recuerda - que causa la pérdida de clientes) 4.La falta de gestión de la empresa 5.EPS muy malas - en números negativos (poco atractivos para los inversores)
Opportunities – O1.Los consumidores piden vehículos híbridos eficientes y bajo consumo de combustibles 2.Aumento de las tendencias de consumo 3.Los consumidores piden vehículos más innovadores 4.La expansión global 5.Crecimiento de las experiencias de la industria lento y constante
SO1.El desarrollo de nuevos vehículos en los combustibles alternativos (S1, S2, S4, O1, O3. O5) 2.Ofrecer nuevos productos innovadores - Aumento del mercado - motos (S1, S2, S3, O2, O3, O5) 3.Concéntrarse en hacer los mejores vehiculos de combustible eficiente
WO1.Realizar producción mas economica y de bajos impuesto
Threats – T1.Débil USD 2.Aumento de los precios del acero y resina 3.El aumento de los precios de la gasolina 4.Estrictas normas de emisión de CO2 5.El aumento de las tasas hipotecarias
ST1.Construir productos ecológicos con materiales alternativos (S2, S3, S4, T2, T3, T4) 2.Producir más autos para el mercado exterior (S1, S2, S4, T1, T4)
WT1.Combinar con los competidores (W1, W2, W5, T2, T3, T5) 2.Fabricación únicas partes de automóviles (W1, W2, T1, T2)
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SPACE Matrix
FS
+6
+1
+5+4+3
+2
-6
-5
-4
-3
-2
-1-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6IS
Conservative Aggressive
Defensive Competitive28
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BCG Matrix
Revenues % Revenues Profit % Profit % Market Share
% Growth Rate
NA 69365 45% -4161 - 61% -0.1
SA 7585 5% 1172 - 30% +33
Europe 36330 24% 744 - 81% -3
PAG 33067 21% -1872 - - +10
Asia 8032 5% 206 - 38% +3
Total 154379 100% -3911 - - -
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BCG MatrixRelative market share position in the industry
High 1.0 Medium .50 Low 0.0 High +30 M
edium 0 Low
-3
Industry sales growth rate
SA
APA
NA
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IE Matrix
Hold and Maintain
31
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Grand Strategy MatrixRapid Market Growth
Quadrant II Quadrant I
Strong Competitive
Position
Slow Market Growth
Weak Competitive
Position
Quadrant III Quadrant IV
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Matrix EvaluationAlternative Strategies BCG IE SPACE GRAND COUNT
Forward Integration x 1
Backward Integration x 1
Horizontal Integration x 1
Market Penetration x x x 3
Market Development x x 2
Product Development x x x 3
Concentric Diversification x x 2
Conglomerate Diversification x x 2
Horizontal Diversification x x 2
Joint Venture x 1
Retrenchment x x 2
Divestiture x x 2
Liquidation x 1
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Possible Strategies
• Developing new vehicles on alternative fuels (S1, S2, S4, O1, O3, O5) – SO1
• Offer new innovative products – increase market share (S1, S2, S3, O2, O3, O5) – SO2
• Concentrate on making the best fuel efficient cars (S1, S2, S3, S4, O1, O4, O5) – SO3
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QSPM
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Strategic Plan for the Future
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Objectives for the 2008 - 2010
• Reduce manufacturing expenses by 15-20% 2008• Introduce new small fuel efficient vehicles 2009• Enter Latin American and Asian market with
hybrid vehicles 2010• Develop affordable electric car for US market
2009-2010• Increase market share 2009-2010• Build up strong financials (increase net income
and EPS by 15%) 2009-2010
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Recommendation
• Manufacturing of new small fuel-efficient vehicle $ 7,000,000,000
• Entering the Latin American and Asian market with hybrids $ 20,000,000,000
• Implementation of electric car in the US market $ 13,000,000,000
Total Cost = $ 40,000,000,000
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Implementation
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EPS/EBIT
• Amount needed: $40,000,000,000• Stock price: $7.42• Interest rate: 7.5%• Tax rate: 0% (firm is having a loss)• # of shares outstanding: 2,195,000,000• # shares needed: 500,404,312
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EPS/EBIT
Common stock financing Debt financing
Recession Normal Boom Recession Normal Boom
EBIT 10 20 40 10 20 40
Interest 0 0 0 1.5 1.5 1.5
EBIT 10 20 40 8.5 18.5 38.5
Taxes 0 0 0 0 0 0
EAT 10 20 40 8.5 18.5 38.5
#shares 2.695 2.695 2.695 2.695 2.695 2.695
EPS 3.71 7.42 14.84 3.15 6.86 14.28
*data in $ billion
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Other Issues
• Laws and regulations in foreign countries• Regain lost trust in the Ford’s brand
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Evaluation
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Ford 2008 Update
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Industry Update
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Sources
• Ford Motor Company Annual Report 2007• General Motors Annual Report 2007• http://www.ford.com/about-ford/investor-rel
ations• Datamonitor
– Global Automobile Industry manufacturer 2006
• Pictures taken from Web
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Questions???