Ford: Team Taurus

Group 1: Strategic Management

Vision Framework

Mission

Ford Motor Company is a worldwide leader in automotive and automotive-related products and services as well as in newer industries such as aerospace, communications, and financial services. Our mission is to improve continually our products and services to meet our customers needs, allowing us to prosper as a business and to provide a reasonable return from our stockholders, the owners of our business.

Values

People-Our people are the source of our strength. They provide our corporate intelligence and determine our reputation and vitality. Involvement and teamwork are our core human values.Products-Our products are the end result of our efforts and they should be the best in serving customers worldwide. As our products are viewed, so are we viewed.Profits-Profits are the ultimate measure of how efficiently we provide customers with the best products for their needs. Profits are required to survive and grow.

2. Envisioned FutureBHAG: To become a $125 billion company by 2000

OBJECTIVESFinancial Objective:Strategic Objective:Social Objective:Maximum profit, market share growth, technological and service leadership

Key determinants of Strategy

TOWS

ThreatsOpportunitiesWeaknessesStrengths

Societal Expectations Personal valuesCatholic Social Teaching: Respect for individual(one of three basic belief of Wal-Mart top management)

Respect Work and the Worker. According to Genesis, God not only creates man but puts him to work naming the animals and caring for the garden.

6 Major Segments of the Macroenvironment

Change in Macroenvironment: Gasoline shortages in 1979Effect of change on the determinants/barriers:Effect of change on the forces:Conclusion: Threat or opportunity

Financial Ratios

Financial RatiosFiscal Years Ending January 312008200720062004200022000Current Ratio0.80.90.90.01.00.9Return on Assets8.4%8.8%9.3%9.7%0.0%10.1%Return on shareholders equity21.!%22%22.9%22.4%20.7%24.5%

COMPETITIVENESS OF PRICES & COSTSThompson and Strickland: A Representative Company Value ChainSupply Chain ManagementOperationsDistributionSales and MarketingServiceProfit MarginProduct R&D, Technology, and Systems DevelopmentHuman Resources ManagementGeneral AdministrationPrimary Activities and CostsSupport Activities and Costs

Value Chain Values to Customers

1. Convenience2. Availability various choices3. Affordability4. Overall Shopping Experience

Value Chain

Primary ActivitiesActivitiesSecondary ActivitiesProduct, R&D, technology and Systems DevelopmentHuman Resource ManagementGeneral AdministrationSupply Chain ManagementPressuring suppliers to follow set standards to maintain low prices of goodsDeveloping in-house software systems Hiring top calibre IT programmersOperations

Value Chain

Primary ActivitiesActivitiesSecondary ActivitiesProduct, R&D, technology and Systems DevelopmentHuman Resource ManagementGeneral AdministrationDistributionPenetrating untapped territoriesConducting research and feasibility studiesSales and MarketingOffering sales promotionadvertisingServiceCreating pleasant environment for customersProviding incentive scheme to motivate store personnel

SpecializationSTRATEGIC MAP

The Competitive Advantage Cycle

**Catholic Social Teaching: c-389

*Page C-375*Are the Companys Prices and Costs Competitive?*Ford: 8 brands (Ford, Lincoln, Mercury,Mazda,Volvo,Jaguar,Land Rover,Aston Martin)GM: 13 brands (Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Pontiac, Opel, Saan, Saturn, Vauxhall and Wulin)Chrysler: 4 brands (Chrysler, Dodge, Jeep, Mopar)*