1

Strategic management report

Submitted to
Mam shahzadi sittar

Submitted by
Qurat ul ain bhatti #17
Humaira liaqat #47
Hina shareef #19

2
3
 Table of
contents
Company profile

History of ford motors

Vision and mission statements
Core values
Successors and founders of ford
Home country operations
Changes in organization
Organization structure
Strategic business units of ford
SWOT, Steep competitor analysis
Strategies perused by ford
Strategic management in firm
Growth strategies in ford motors
Target customers
Indication towards globalization
Hofstede of culture dimensions

4
5
Company profile of ford motors

6
 LOGO

INDUSTRIES SERVED Automotive and Financial Services

GEOGRAPHIC AREAS Worldwide (62 countries)

SERVED

HEADQUARTERS Dearborn, Michigan, U.S.

CURRENT CEO Mark Fields

REVENUE US$149.558 billion (2015) 3.8% increase over US$144.077 billion (2014)

PROFIT US$7.373 billion (2015) 598% increase over US$1.231 billion (2014)

EMPLOYEES 199,000 (2016)

MAIN COMPETITORS Fiat Chrysler Automobiles, General Motors Company, Honda Motor Company, Hyundai-Kia

Automotive Group, PSA Peugeot Citron, Renault-Nissan B.V., Suzuki Motor Corporation, Toyota

Motor Corporation, Volkswagen AG Group and many other automotive companies.

Ford Motor Company (NYSE: F) is the worlds second largest manufacturer of cars and
trucks, with operations in more than 62 countries. 114 manufacturing plants. Major brands
include Ford, Volvo, Mazda, Mercury, Jaguar, Lincoln, Land Rover, Aston Martin, and, in the
Automotive Consumer Services Group, Ford Credit, Quality Care, Kwik Fit, Think Mobility,
and Hertz. Company revenue in 2000 was $181 billion.

History of ford motors

7
 1896: Henry Ford builds his first vehicle the Quadric cycle on a buggy
frame with 4 bicycle wheels.

1898: Ford creates the Detroit Automobile Company; two and a half years
later it is dissolved.

1903: Ford Motor Company incorporated with 11 original investors.

The Model a "Ford mobile" is introduced - 1,708 cars are produced.

1904: Ford Motor Company of Canada incorporated in Walkersville,

Ontario.

1906: Ford becomes the top selling brand in the US, with 8,729 cars
produced.

1908: Model T is introduced. 15 million are produced through 1927.

1909: Ford Motor Company (England) established, otherwise referred to

as Ford of Britain

1911: Ford opens first factory outside North America in Manchester,

England.

1913: The moving assembly line is introduced at Highland Park assembly

plant, making Model T production 8 times faster.

1913: Ford opens second world branch in Argentina as Ford Motor

Argentina

1920: Ford temporarily shuts down due to low sales. After removing
unnecessary administrative expenses and waste, Ford reopens. [58]

1922: Ford purchases Lincoln Motor Company for US $8 million

($113 million, adjusted for inflation).

1925: Ford introduces Ford Tri-Motor airplane for airline services, and a
factory was built in Yokohama, Japan in February.

1926: Ford Australia is founded in Geelong, Victoria, Australia,

1927: Model T production ends, Ford introduces the next generation Model
A, from the Rouge complex.

1929: Ford regains production crown, with annual production peaking at

1.5 million cars

1938: The German consul at Cleveland awards Henry Ford the Grand
Cross of the German Eagle.

8
 1939: Mercury division is formed to fill the gap between economical Fords
and luxury Lincolns. Operated as a division at Ford until 1945

1942: Production of civilian vehicles halted, diverting factory capacity to

producing B-24 Liberator bombers, tanks, and other products for the war
effort.

1945: Henry Ford II becomes president.

1945: Lincoln and Mercury are combined into a single division.

1947: Henry Ford dies of cerebral hemorrhage at the age of 83; Henry
Ford II becomes new chairman.

1949: The '49 Ford introduces all-new post-war era cars.

The "Woody" station wagon is introduced.

1953 Ford Canada Headquarters and Car Plant opens in Oakville, Ontario

1956: $10,000 ($88.1 thousand, adjusted for inflation) Lincoln

Continental Mark II introduced. Ford goes public with common stock shares.
Ford's emphasis on safety with is Lifeguard option package, including seat
belts and dash padding, earns the company Motor Trend's "Car of the Year"
award.[35]

1959: Ford Credit Corporation formed to provide automotive financing.

1960: Robert McNamara is appointed President of Ford by Chairman Henry

Ford II.

1967: Ford of Europe is established by merging the operations of Ford of

Britain and Ford of Germany.

1970: Ford Maverick are introduced. Ford establishes Asia Pacific

operations. Ford of Europe launches the third generation Cortina/Taunus -
merging the two previously independent product lines under a common
platform.

1972: Retractable seat belts introduced.

1978: Ford Motor Company celebrates 75th anniversary.

1979: Ford acquires 25% stake in Mazda. Ford becomes the final American
automaker to introduce downsized full-size cars with radically smaller Panther
platform.

1985: Purchases First Nationwide Financial Corporation, a savings and

loan. Sold in 1994 after large losses.

9
 1987: Ford acquires Aston Martin Lagonda and Hertz Rent-a-Car.

1987: Henry Ford II dies at age 70.

1988: Ford Festive, built in Korea by Kia is introduced.

1989: Ford acquires Jaguar. Mazda MX-5 Miata is unveiled.

1989: Acquires Associates First Capital Corporation, a finance company. In

1998, it is spun off to Ford shareholders.

1990: Mercury brand of automobiles production discontinued.

1996: Ford certifies all plants in 26 countries to ISO 9000 quality and ISO
14001 environmental standards.

1996: Ford increases investment stake in a troubled Mazda Corporation to

a controlling interest of 33.4%.

1999: Ford acquires Volvo car division from Volvo. Bill Ford becomes
Chairman of the Board.

2000: Ford purchases Land Rover brand from BMW.

2002: Fifth-generation Fiesta is launched by Ford of Europe.

2003: Ford Motor Company's 100th Anniversary. The Ford GT is released,

along with limited Centennial editions of some Ford vehicles.

2004: Jaguar racing team sold to Red Bull GmbH

2006: Ford Taurus ends production after a 20-year run. Ford

Fusion, Mercury Milan, and Lincoln Zephyr introduced. Ford announces major
restructuring program The Way Forward, which includes plans to shut
unprofitable factories

2007: Ford sells Aston Martin to a British consortium led

by Prodrive chairman David Richards, and announces plans to
sell Jaguar and Land Rover.

2007: Ford reports losses of $12.7 billion for 2006.

2008: Ford of Europe launches sixth-generation Fiesta, based on the Verve

concept car.[63] and announces plans to sell Jaguar and Land Rover.

2009 Ford announces that it will leverage more of its European line-up for
the North American market

10
 2011: Mercury production ends; the last vehicle is a Grand
Marquis. Lincoln Town Car is discontinued.

2014: The Ford Mustang celebrates 50 years of production with the launch
of its sixth generation. The 2015 F-150 is launched, featuring an aluminum-
intensive body design .
CEOs of ford motors
John S. Gray
Born; October 5, 1841 Edinburgh, Scotland
Died; July 6, 1906 (aged 64) Detroit, Michigan
Occupation; Candy maker.
On June 16, 1903, the Ford Motor Company was incorporated, with
12 investors owning a total of 1000 shares valued at $100,000. At the first
meeting of stockholders, Gray was elected president, invest $10,500 in return for
a 10.5% stake in the company.
Henry Ford I
Born; July 30, 1863 Greenfield Township, Michigan, U.S.
Died April 7, 1947 (aged 83)
Occupation; Founder of Ford Motor, business magnate, engineering
Net worth; Increase $188.1 billion (based on February 2008 data
from Forbes)
Children Edsel Ford.

Although Ford did not invent the automobile or the assembly line, he
developed and manufactured the first automobile that many middle class
Americans could afford.
In doing so, Ford converted the automobile from an expensive curiosity
into a practical conveyance that would profoundly impact the landscape of
the twentieth century.
His introduction of the Model T automobile revolutionized transportation
and American industry.
As the owner of the Ford Motor Company, he became one of the richest
and best-known people in the world. He is credited with "Fordism": mass
production of inexpensive goods coupled with high wages for workers.
Ford had a global vision, with consumerism as the key to peace.
His intense commitment to systematically lowering costs resulted in many
technical and business innovations, including a franchise system that put
dealerships throughout most of North America and in major cities on six
continents.
Ford left most of his vast wealth to the Ford Foundation and arranged for
his family to control the company permanently.

11
Henry Ford II
Henry Ford II (September 4, 1917 September 29, 1987), sometimes
known as "HF2" or "Hank the Deuce", was the oldest son of Edsel
Ford and oldest grandson of Henry Ford. He was president of the Ford
Motor Company from 1945 to 1960, chairman and chief executive officer
(CEO) from 1960 to 1979,[2]and chairman for several months thereafter. Notably,
under the leadership of Henry Ford II, Ford Motor Company became a publicly
traded corporation in 1956. From 1943 to 1950, he also served as president of
the Ford Foundation

Philip Caldwell
(January 27, 1920 July 10, 2013) was the first person to run the Ford Motor
Company who was not a member of the Ford family. He orchestrated one of the
most dramatically successful turnarounds in business history. Starting at Ford in
1953, he successively headed truck operations, the Philco division.

Donald Eugene Petersen

(born September 4, 1926) is an American businessman who was
employed by the Ford Motor Company for 40 years, most notably as
its Chief Executive Officer from 1985 to 1990. Petersen was famously
known for instructing the Ford design staff to design vehicles they would
be proud to buy and park in their own driveways.

Harold Arthur red poling

(October 14, 1925 May 12, 2012)
Poling was widely considered as a savior of the company in his stint as executive
vice-president for North America in the early 1980s. He made his swift climb
through the company as a financial executive, serving as a manager, assistant
controller, and controller of the transmission and chassis division during
the 1960s, then as controller of the engine division, then controller of the
car product development group. During this time he was responsible for
codification of much of Ford's "Finance Manual", directing his
subordinates in standardization of the company's financial reporting and
analysis practice

Alexander James Trotman, Baron Trotman

12
 (22 July 1933 25 April 2005) was Ford Motor Company's first foreign-
born chairman and CEO.
One of Trotman's main contributions at Ford was the Ford 2000
initiative, launched in 1995. This was an attempt to unify and
consolidate Ford's manufacturing, marketing and product development forces
around the world. The initiative produced $5 billion in cost savings, and
produced $7 billion in profits for Ford in 1997.

Jacques A. Nasser
January 1, 1999[2] - 2001
Nasser became CEO when Ford was the world's most profitable
automaker, with profits of $7.2 billion on sales of $163 billion, so he
was given free rein to experiment. Under Nasser's watch, Ford
acquired Volvo Cars and Land Rover and placed them under the
newly Premier Automotive Group in order to expand its market share
in the luxury segment. Nasser proclaimed that he would transform
Ford "from a boring old car maker whose shares achieve a price-
earnings ratio of only ten, into a consumer-products and services company
commanding a multiple of more like thirty. Nasser also aimed to
overtake General Motors by developing car-related services, but hundreds of
millions of dollars were wasted on e-commerce, car distribution, junkyards, and
auto-repair shops.

William Clay "Bill" Ford Jr.

Alan Roger Mulally
September 5, 2006 to July 1, 2014 (CEO)
Mulally was named the President and CEO of Ford Motor Company on
September 5, 2006, mulally called his Lexus LS430 the 'finest car in
the world'.
One of Millays first decisions at Ford was to bring back the Taurus
nameplate. In 2006, mulally led the effort for Ford to borrow US$23.6 billion by
mortgaging all of Ford's assets. Mulally said that he intended to use the money
to finance a major overhaul and provide a cushion to protect for a recession or
other unexpected event.
In 2007, he presided over the sale of Jaguar Cars and Land Rover to Tata Motors,
an Indian car and truck manufacturer. Mulally said he had "no regrets" over the
sale, preferring to concentrate on the Ford brand.

Mark Fields
July 1, 2014 to present (CEO)
Fields was recruited by Ford in 1989 and moved up the ranks. He ran Ford's
Argentina operations at the age of 36.[6]He became the youngest person (at 38)

13
ever to run a major Japanese company when Ford placed him in
charge of Mazda Motor Corporation in 1998. In 2002, Fields became
chairman of the Premier Automotive Group, Ford's luxury unit which
at the time included Lincoln, Aston Martin, Jaguar, Land
Rover and Volvo Cars. He returned to the United States to head the
Americas division of the company in October 2005. In a December
14, 2006, announcement made by Alan Mulally (Chief Executive of
Ford Motor Company), Mark Fields, at 45, was named business unit chief of Ford
Motor Company's Americas operations. This is an attempt to make the company
leaner and more centrally driven in areas such as product development,
purchasing and engineering.

Henry Ford as a strategic leader

Founder of Ford Motor Co.

Founded: 1903 "I will build a motor car for the great multitude.it will be so low in

price that no man will be unable to own one."-Henry Ford

Henry Ford did not invent the automobile. He didnt even invent the

assembly line. But more than any other single individual, he was

responsible for transforming the automobile from an invention of unknown

utility into an innovation that profoundly shaped the 20th century and

continues to affect.

Innovators change things. They take new ideas, sometimes their own,

sometimes other peoples, and develop and promote those ideas until

14
 they become an accepted part of daily life. Innovation requires self-

confidence, a taste for taking risks, leadership ability and a vision of what

the future should be. Henry Ford had all these characteristics, but it took

him many years to develop all of them fully. Our lives today.

His beginnings were perfectly ordinary. He was born on his fathers farm in

what is now Dearborn, Michigan on July 30, 1863. Early on Ford

demonstrated some of the characteristics that would make him

successful, powerful, and famous.

He organized other boys to build rudimentary water wheels and steam

engines. He learned about full-sized steam engines by becoming friends

with the men who ran them. He taught himself to fix watches, and used

the watches as textbooks to learn the rudiments of machine design. Thus,

young Ford demonstrated mechanical ability, a facility for leadership, and

a preference for learning by trial-and-error. These characteristics would

become the foundation of his whole career.

Henry Ford was nearly 40 when he founded Ford Motor Co. in 1903. At the

time, "horseless carriages" were expensive toys available only to a

wealthy few. Yet in just four decades, Ford's innovative vision of mass

production would not only produce the first reliable, affordable

15
 "automobile for the masses," but would also spark a modern industrial

revolution.

Ford set up shop in a converted wagon factory, hired workers, then

designed and produced the Model A, the first of which he sold to a

Chicago dentist in July 1903. By 1904, more than 500 Model A's had been

sold.

While most other automakers were building luxury-laden automobiles for

the wealthy, Ford had a different vision. His dream was to create an

automobile that everyone could afford.

The Model T made this dream a reality. Simpler, more reliable and cheaper

to build than the Model A, the Model T-nicknamed the "Tin Lizzie"-went on

sale in 1908 and was so successful within just a few months that Ford had

to announce that the company couldn't accept any more orders-the

factory was already swamped.

Ford had succeeded in making an automobile for the masses, but only to

create a new challenge. How to build up production to satisfy demand. His

solution? The moving assembly line.

16
 Ford reasoned that if each worker remained in one assigned place and

performed one specific task, they could build automobiles more quickly

and efficiently. To test his theory, in August 1913, he dragged a chassis by

rope and windlass across the floor of his Highland Park plant-and modern

mass production was born.

At peak efficiency, the old system had spit out a finished Model T in 12

and a half working hours. The new system cut that time by more than half.

Ford refined and perfected the system, and within a year it took just 93

minutes to make a car.

Because of the more efficient production, Ford was able to cut hundreds of

dollars off the price of his car.

Cutting the price enabled Ford to achieve his two aims in life-to bring the

pleasures of the automobile to as many people as possible, and to provide

a large number of high-paying jobs.

Henry Fords Legacy

Henry Ford had laid the foundation of the twentieth century.

The assembly line became the centurys characteristic production mode,
eventually applied to everything from phonographs to hamburgers.
The vast quantities of war material turned out on those assembly lines
were crucial to the Allied victory in World War II.
High wage, low skilled factory jobs pioneered by Ford accelerated both
immigration from overseas and the movement of Americans from the

17
 farms to the cities. The same jobs also accelerated the movement of the
same people into an ever expanding middle class.
The Model T spawned mass auto mobility, altering our living patterns, our
leisure activities, our landscape, even our atmosphere.
Why He Innovated
There is a prophetic story of how the 13-year-old Henry Ford got a pocket
watch for his birthday, and then proceeded to take it apart. He simply
wanted to know how it worked.
It was a character trait that marked the rest of Ford's life. He wanted to
know how things worked and, just as important, why they didnt work.
Ford was interested in every aspect of life around him. He explored
innovative forms of education which, in time, lead to the founding of the
Edison Institute, known today as The Henry Ford. In a single location, Ford
brought together dozens of buildings and millions of artifacts. It was one
of the largest collections of its kind ever assembled, as well as a bold and
ambitious new way for people of all ages to discover and explore the
richness of the American experience for themselves.

Henry Ford took inspiration from the past, saw opportunities for the future, and
believed in technology as a force for improving people's lives. To him, technology
wasn't just a source of profits, it was a way to harness new ideas and, ultimately,
further democratize American life.

Ford Motor Companys Vision

Statement
People working together as a lean, global enterprise for automotive
leadership.
The company also explains, Automotive leadership is measured by the
satisfaction of our customers, employees, investors, dealers, suppliers and
communities. Thus, Fords vision statement has the following major points:
1. Global leadership
2. Emphasis on stakeholders
3. Lean business

Fords mission statement

One Team. One Plan. One Goal.

One Team: People working together as a lean, global enterprise for automotive
leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier,
Union/Council, and Community Satisfaction.

18
 One Plan: 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 plan and improve our balance
sheet; Work together effectively as one team.
One Goal: An exciting viable Ford delivering profitable growth for all.

OUR CORE VALUES

Our core values are the pillars that support our Mission statement. They form the
rock solid foundation that guides our individual and collective actions. These
core values are intertwined so that each supports the other.
INTEGRITY
We always strive to do the right thing. Our commitment to the truth is
unwavering, both in actions and in words.
SERVANTS ATTITUDE
We only exist to serve our internal and external customers, so their concerns are
always at the forefront of our business. We will serve our clients with a genuine
humility that leaves no doubt that they are the sole focus of all of our endeavors.
ACCOUNTABILITY
A personal choice to rise above ones circumstances and demonstrate the
ownership necessary for achieving key results: to see it, Own it, Solve it, and Do
it. Doing it right the first time is not our goal, but our standard. We will hold
ourselves responsible for this attention to detail in all of our duties.
CONTINUOUS IMPROVEMENT
We are a dynamic organization that constantly seeks areas of growth and
innovation. This growth starts teamwork.
TEAMWORK
Teamwork is our individual actions, brought together for our common purpose,
which subordinates our individual needs to the needs of the group. We put aside
our individual needs to work towards and accomplish the larger group objective.
We cooperate, using our individual skills, and provide constructive feedback
despite any personal conflict between individuals.

FUN

19
Fun is key to an enjoyable workplace. It encourages energetic contributions from
our team members and creates an upbeat environment for our internal and
external customers that helps differentiate us from our competition! At the
personal level and continues into all aspects of our business.

Business operations of ford motors

Ford has manufacturing operations worldwide, including in the United States,
Canada, Mexico, China, the United Kingdom, Germany, Turkey, Brazil, Argentina,
Australia and South Africa. Ford also has a cooperative agreement with Russian
automaker GAZ.

Business operations with respect to regions Operations in regions

North America Europe
Oceania
East and Southeast Asia
South and West Asia
South America
Africa

Logo evolution

1903 1909 1912

1912 variant 1927 2003-present

Features of Ford Motor Companys

Organizational Culture
20
Fords organizational culture is defined in the companys One Ford plan, which
was implemented under former CEO Mulleys leadership in 2008. In the plan, the
firm aims to unify its global organization to achieve consistency and synergy.
Based on this plan, the following are the main characteristics of Fords
organizational culture:
F: Foster Functional and Technical Excellence
O: Own Working Together
R: Role Model Ford Values
D: Deliver Result

Organizational structure of ford motors

Products

21
 Automobile
Luxury Vehicles
Commercial Vehicles
Automotive parts

Services
Automotive finance
Vehicle leasing
Vehicle service

Product line of ford motors

CARS

MUSTANG
FIESTA

C-MAX
FOCUS

TAURUS
FUSION

CROSSOVERS & SUVS

22
ESCAPE FLEX

TRANSIT CONNECT
EXPLORER

EDGE
EXPEDITION

TRUCKS

TRANSIT

TRANSIT CONNECT

SUPER DUT

F-150

HYBRIDS & EVS

23
 FOCUS Electric
FUSION Hybrid SE

C-MAX Energi
C-MAX Hybrid SEL

FUSION Energi SE

COMMERCIAL

E-SERIES CUTAWAY

TRANSIT CONNECT

TRANSIT

TRANSIT CC-CA

SUPER DUTY PICKUP

STRIPPED CHASSIS

24
 F
UTURE

2017 Raptor
CHASSIS CAB

Ford GT

F-650-750

2017 Super Duty

2017 Chassis Cab

25
 Diversified business of Ford motors
Ford Motor Credit Company
Motor Credit Company LLC, Ford
Credit, is the financial
services arm of Ford Ford Motor Credit Company Motor Company, and is
headquartered in Michigan. Its business
activities are concentrated primarily
in the area of automobile loans in
support of its parent company.
The company offers consumer loans and
Type Subsidiary
leases to car buyers, as well as business
loans and lines of credit to dealerships
selling Ford Motor Industry Diversified financial Company products. The
firm also issues paper and other
debt instruments on Ford's behalf.
Founded 1959
Ford Credit also owns Lincoln Automotive
Financial Services, the arm that
Headquarters Dearborn, Michigan, U.S.
finances Lincoln vehi cles.

Products Automobile financing

Revenue US$ 8.996 billion (2014)[1]

Operating income US$ 1.854 billion (2014)[1]

Net income US$ 1.705 billion (2014)[1]

Total assets US$ 122.1 billion (2014)[1]

Total equity US$ 11.37 billion (2014)[1]

Owner Ford Motor Company

26
 Business Divisions of ford motors
Lincoln Motor Company
Lincoln Motor Company
The Lincoln Motor Company (also known
simply as Lincoln) is a division of the U.S.-
based Ford Motor Company that sells luxury
vehicles under the Lincoln brand. Founded in
1917 by Henry M. Leland, Lincoln has been
a subsidiary of Ford since 1922. While
currently sold primarily in North America, Ford
introduced the Lincoln Type brand to China in 2014.
Division
[4]
Lincoln vehicles are also officially sold in the
Middle East, South Korea and Japan.
Industry
Automotive

Founded Dearborn, Michigan, U.S.

(August 1917; 98 years ago) [1]:4

Founder
Henry M. Leland

Wilfred Leland[1]:4

Headquarters Dearborn, Michigan, U.S.

Area served
East Asia

North America

Middle East[2]

Key people Jim Farley (President until September

1, 2014)

Kumar Galhotra (President from

September 1, 2014)[3]

Products Luxury vehicles, Limousines

Parent Ford Motor Company (1922-

present)

Website www.lincoln.com

27
 MOTORCRAFT
Motor craft

Is an auto parts brand of American automotive corporation Ford Motor Company

History
The Ford Motor Company launched this auto parts division in 1972 to provide
replacement parts and original equipment parts. This brand replaced Auto lite as
Ford's official parts brand. Motor craft was originally launched in the 1950s with
and was temporarily discontinued after Ford had purchased the Auto lite trade
name and utilized it as their primary auto parts brand.

Today
Today parts are designed and engineered to fit for installation
on Lincoln, Mercury, and Ford vehicles.

Motor craft products are sold through Ford and Lincoln-Mercury dealerships, as
well as select auto parts stores. These products must meet quality standards set
by the Ford Motor Company to be considered for retail sale. Other brands such
as Mazda use motor craft products in vehicles which both partner when
producing. Although Motor craft can only be contacted through the Ford website,
Motor craft parts and products can sometimes be used on other non-Ford
vehicles.

Motor oil
Motor craft also sells motor oil for automotive use. As of the late 2000s most of
their oil is a synthetic blend or fully synthetic.
Corporate strategy of ford motors
Ford through its ONE FORD PLAN has tried to implement its growth and
renewal strategies.

Growth strategy
Accelerate development of new products to suit customers want and values;
finance and improve balance sheet; and work together effectively as one team,

28
leveraging the company s global assets are some of the major steps taken by
the company in recent years

Concentration
Ford has delivered consumer friendly, high fuel efficient and innovative vehicles
most of the time concentrated on quality over quantity.

Vertical integration
The ford motors credit company provides automobile loans in support of its
parent company. The company offers consumer loans and leases to car buyers,
as well as business loans and lines of credit to dealership selling ford motors
company products. The firm also issues commercial papers and other debt
instruments on fords behalf. In this way company has achieved dual objectives it
has become its own superliners as well as distributer, thus achieving forward and
backward integration at the same time.

Horizontal integration
Fords competitors are themselves some of the oldest automobile companies, like
Chrysler and general motors, hence any kind of collaboration was not simply
possible as these companies know it better to resolve the crisis by other means
possible.

Diversification
Ford has combined with Aston martin, a sport car manufacturer, a company
which is different but related .hence a related diversification can be seen here.

Stability strategy
Since its inception ,one of the most remarkable achievement of the ford is its
constant focus on production of highly fuel efficient vehicles .ford global
vehicles showcase their commitment to fuel efficiency. Technologies like Eco
Boost, direct injection of gasoline or diesel fuel, six speed transmissions, and
hybrid and plug in hybrid powers train are some of the innovations in this regard.

Renewal strategy
To maintain status quo ford has come up with some solutions.

Retrenchment strategy
Owning to its financial deficits, the company discontinued its production of
luxury vehicle under mercury brand in 2008

Divestment

29
Ford's plan called for divesting, selling, and closing some businesses in order to
raise cash.
Jaguar Cars and Land Rover on 2 June 2008, Ford sold both of its British
operations to Tata Motors of India for a cost of 1.7 billion.
Aston Martin on 12 March 2007, a British consortium led by Dave
Richards of Prodrive purchased the iconic automaker for 479 million.
Automobile Protection Corporation Extended warranty company APCO
will also be sold
Mazda, On November 18, 2008, Ford announced that it would be selling a
20% stake in Mazda, bringing its stake to 13.4%, and surrendering control of the
company.
Mercury (automobile), On June 2, 2010, Ford officially announced the
closure of Mercury by the end of Q4 of 2010.

Business level strategies

Ford Motors Generic Strategies

Fords generic strategy has changed over time. Initially, Fords generic strategy
was cost leadership. This generic strategy supports business competitive
advantage on the basis of cost reduction and low prices to attract customers. In
the early 1900s, Fords vision was to make its automobiles affordable for
working-class Americans. To apply this generic strategy, the firm developed the
assembly line method to minimize costs and maximize productivity. Ford
succeeded in attracting customers based on this generic strategy. A strategic
objective for competitive advantage based on this generic strategy is cost
minimization through process streamlining.

However, Ford Motor Companys generic strategy did not protect the
business from competition with General Motors. By 1927, GM overtook
Ford to become the largest American automobile manufacturer. GM used
its generic strategy of broad differentiation to offer a wider array of
products. Americans were gaining higher wages and started valuing style
and design, and not just low prices. Today, given its current One Ford
plan, Ford Motor Company has been moving its generic strategy to
emphasize differentiation for competitive advantage. Ford still maintains
its cost leadership generic strategy. However, the firm is moving toward

30
 the broad differentiation generic strategy to compete against firms like GM
and Toyota. Thus, a strategic objective based on Fords current generic
strategy adjustment is product innovation to gain stronger competitive
advantage.
Ford Motor Companys Intensive Strategies
(Intensive Growth Strategies)
Market Penetration. Fords primary intensive growth strategy is
market penetration. This intensive strategy entails selling more products
to current customers to grow the business. Ford applies this intensive
growth strategy by increasing the number of its dealerships and
increasing sales volume. This intensive growth strategy is linked to the
strategic objectives of increasing customer retention and increasing sales
to existing customers. This intensive strategy is linked to Fords generic
competitive strategy by highlighting the benefits of low costs and
increasing differentiation to gain a bigger market share.
Product Development. Ford Motor Company uses product
development as its secondary intensive strategy for growth. This intensive
growth strategy involves offering new products to increase sales
revenues. Ford applies this intensive strategy through R&D investments
for new products, such as the all-electric Ford Focus Electric. A strategic
objective based on this intensive growth strategy is to increase R&D
investments for product innovation to improve business growth and
competitive advantage. This intensive growth strategy supports Fords
generic strategy adjustment toward broad differentiation .
Market Development. Market development is only a minor or
supporting intensive strategy for Fords growth. This intensive growth
strategy involves providing entirely new products or entering new markets
or market segments. Ford already has global operations, which means
that market development is not as significant as it has been for the
business in its early years. Also, Ford has not taken any significant
strategic action to enter entirely new industries or market segments in
recent years.
PESTLE Analysis of ford motors

Political Factors Affecting Ford Motor Companys Business

31
Fords business must address the political aspect as an external influence.
Governmental impact on firms remote or macro-environment is considered in
this component of the PESTEL/PESTLE analysis. The following are the political
factors significantly affecting Ford:

1. Governmental support for technological innovation (opportunity)

2. Increasing international trade agreements (opportunity)
3. Increasing governmental effort for infrastructure in developing countries
(opportunity)
Governments are increasingly supporting technological innovation to enhance
economic conditions. This situation provides opportunity for Ford to use
governmental incentives for innovation, environmentally friendly products and
sustainability. Ford also has the opportunity to expand its operations based on
trade agreements, which make it easier for companies to enter foreign markets.
In addition, high-growth developing countries are improving their infrastructure,
including transportation infrastructure. This remote/macro-environment
condition contributes to the increasing demand for vehicles in these countries,
thereby giving Ford Motor Company the opportunity to grow internationally. This
component of the PESTEL/PESTLE analysis shows that the political external
factors create significant opportunities for Fords growth and expansion.

Economic Factors Important to Ford

Ford must always keep an eye on changing economic conditions. This

component of the PESTEL/PESTLE analysis identifies the influence of the
economy on the firms remote or macro-environment. The following are the
economic external factors significant to Ford:

1. Growth of U.S. economy (opportunity)

2. High growth rate of developing markets (opportunity)
3. Strengthening U.S. dollar (threat)
Ford has the opportunity to grow based on the slow but notable growth of the
U.S. economy, which is the companys biggest market. Ford also has the
opportunity to grow in high-potential developing countries, where the company
still has limited presence. However, the strengthening U.S. dollar is an external
factor that reduces profit margins and the attractiveness of Fords products,

32
considering that many of the firms raw materials and automotive parts are
produced in the United States. Such remote/macro-environment condition
indicates that Ford must improve business efficiencies to maximize the
opportunities in foreign markets identified in this component of the
PESTEL/PESTLE analysis.

Social/Sociocultural Factors Influencing Fords Environment

Ford Motor Companys remote or macro-environment is subject to the influence

of social conditions. The impact of sociocultural trends is considered in this
component of the PESTEL/PESTLE analysis. The following are the social external
factors most important to Ford:

1. Increasing demand for hybrid and electric automobiles (opportunity)

2. Moderate attitude about customer service (opportunity)
3. Increasing wealth gap (opportunity & threat)
Ford can grow by providing products that address the increasing demand for
hybrid and electric automobiles. Ford also has the opportunity to improve its
services, especially aftersales services to attract more customers. However the
increasing wealth gap is a remote/macro-economic environment condition that
threatens Fords Lincoln automobiles, which are luxury products with high prices.
Based on this component of the PESTEL/PESTLE analysis, Fords intensive growth
strategies need to emphasize more on product innovation to satisfy changing
customer preferences and address the sociocultural external factors in its
business.

Technological Factors in Fords Business

Technologies enable Ford to develop its potential and compete in the

remote/macro-environment. This component of the PESTEL/PESTLE analysis
deals with the technological changes and conditions that affect firms. The most
significant technological external factors in Fords business are as follows:

1. Rising use of mobile computing (opportunity)

2. Increasing use of online fulfillment services (opportunity)
3. Limited network of alternative fuel stations (threat)

33
The rising use of mobile computing is an external factor that creates
opportunities for Ford Motor Company to grow through mobile service support
and mobile marketing. Also, the firm can improve its performance through
enhanced online fulfillment services. For example, Ford parts can be delivered to
customers through these fulfillment services. On the other hand, the companys
potential growth in providing alternative-fuel vehicles may suffer because of the
limited alternative fuel stations. Thus, based on the technological component of
the PESTEL/PESTLE analysis, Ford needs to focus on service improvement and
technological enhancement to ensure competitiveness despite challenges in its
remote or macro-environment.

Ecological/Environmental Factors

Ecological concerns partly determine the conditions of Fords remote or macro-

environment. Issues regarding the natural environment are considered in this
component of the PESTEL/PESTLE analysis. The most significant ecological
external factors in Fords business are as follows:

1. Climate change (opportunity)

2. Low-carbon trend (opportunity)
3. Declining oil reserves (opportunity)
Climate change is an external factor that creates opportunities for Ford to grow
through products that help in environmental conservation. The same effort could
take advantage of the low-carbon trend. Also, Ford can offer new products that
use alternative fuels or electricity to address the impact of the declining oil
reserves on the remote or macro-environment of auto firms. Thus, based on the
ecological component of the PESTEL/PESTLE analysis, Ford must emphasize
product innovation to improve its business performance.

Legal Factors

Fords business must satisfy legal requirements. The effects of regulations on the
remote or macro-environment are identified in this component of the
PESTEL/PESTLE analysis. The following are the legal external factors notable in
Fords business:

34
1. Environmental protection regulation (opportunity)
2. Increasing safety regulations (opportunity)
3. Increasing intellectual property laws worldwide (opportunity)
Ford can improve its business sustainability to address the effect of
environmental protection regulation. Also, Ford can improve product design to
take the opportunity based on safety regulations. Moreover, increasing
intellectual property laws are improving the remote/macro-environment of Ford
by creating more protection for their intellectual properties and rights. This
component of the PESTEL/PESTLE analysis shows that Ford can grow based on
changes in the external regulatory landscape.

Ford Motor Companys PESTEL/PESTLE Analysis

Recommendations

Ford has major opportunities for growth and improvement, as shown in this
PESTEL/PESTLE analysis. Ford can enhance its product innovation to address
various opportunities linked to climate change, demand for hybrid and electric
automobiles, and related external factors. Fords international remote/macro-
environment also offers opportunities for growth through expansion, especially in
high-growth developing economies. Thus, Ford must implement strategies to
globally expand based on these opportunities.

Porters five forces model

35
 SWOT analysis of ford
motors

Market share of ford and its competitors

36
Ford motors revenues world wide

Revenue of ford competitors worldwide

37
 Major subsidiaries of ford motors

1. Ford Motor Credit Company, LLC

Ford Motor Credit Company, LLC is a financial services company offering
financing products to Ford consumers and Ford dealers. The company provides
automobile loans and leases to retail, commercial and government buyers of
new and used Ford vehicles. It also offers business loans and lines of credit to its
dealers for inventory and facility investments and other approved business uses.

Ford Motor Credit Company handled 45% of all loans and leases for new Ford and
Lincoln vehicles sold in the United States in 2014, an improvement from 40% in
2013. In Europe, it increased its financing share from 34 to 36% in 2014. Ford
Motor Credit Company is a wholly owned subsidiary of Ford Motor Company. It
operates in Europe under its own subsidiary, FCE Bank plc, which is
headquartered in the U.K.

38
2. Changan Ford Automobile Corporation, Ltd.
Changan Ford Automobile Corporation, Ltd. is a Chinese joint venture between
Ford Motor Company and China's state-owned Chongqing Changan Automobile
Company, Ltd., one of China's four biggest auto manufacturers. Each company
holds a 50% ownership stake in the joint venture, which produces and distributes
Ford-branded vehicles in China. As of October 2015, Changan Ford has an engine
plant, a transmission plant and three assembly plants providing a production
capacity of 1 million vehicles per year. A fourth assembly plant is expected to
open before the end of 2015, adding capacity for another 300,000 vehicles. Ford
Motor Company reports the carrying value of its investment in Changan Ford at
$1.3 billion in 2014.

3. Auto Alliance (Thailand) Co., Ltd.

Auto Alliance (Thailand) Co., Ltd. is a joint venture in Rayong, Thailand, between
Ford Motor Company and Mazda Motor Corporation. Ownership in the joint
venture is split equally between the two companies. Auto Alliance operates an
integrated automotive manufacturing facility for compact trucks and passenger
cars. The company produces Ford- and Mazda-branded vehicles for the Thai
market and markets in other developing countries in Southeast Asia and beyond.
Ford values its investment in Auto Alliance at $428 million in 2014.

4. Getrag Ford Transmissions GmbH

Getrag Ford Transmissions GmbH is a joint venture held equally between Ford
and the German-based company Getrag International GmbH. Getrag Ford
Transmissions produces manual transmissions for Ford automobiles in Europe at
its manufacturing plants in Germany, England, Slovakia and France. Ford valued
its investment in Getrag Ford Transmissions at $232 million in 2014. In July 2015,
the Canadian automotive supplier Magna International, Inc. acquired Getrag
International, which, as of October 2015, continues operations under the Getrag
brand.

5. Ford Motor Land Development Corporation

Ford Motor Land Development Corporation is a full-service real estate company
originally established in 1970 to develop acreage surrounding Ford Motor

39
Company's corporate headquarters in Michigan. As of 2015, Ford Land owns and
manages over 5 million square feet of commercial real estate in southeast
Michigan. The company also provides planning and engineering services, facility
management services, and dealership design services in support of Ford's
international operations. Ford Land is a wholly owned subsidiary of Ford Motor
Company.

Joint ventures of ford motors

Transmission Size: 55 acres

United States - Livonia
Transmission Plant
Type: Transmission
Employees: 1,245
Year Opened: 1952
United States Legal
FNA Plant
Size: 3,300,000 sq ft Site
Size: 182 acres
Details
- Sharonville Transmission
Type: Transmission
Employees: 1,628
Year Opened: 1958
Legal Entity: FNA Plant
Size: 2,415,000 sq ft Site
Size: 182 acres
Details
United States - Van
Transmission Plant
Type: Transmission
Employees: 1,497
Year Opened: 1968
Legal Entity: FNA Plant
Size: 1,980,473 sq ft Site
Size: 145 acres
Details
United Kingdom - Halewood
Transmission Plant (Joint venture
50% Ford/50% GETRAG)
Type: Transmission
Employees: 715
Year Opened: 1964
Legal Entity: FOE Plant
Size: 1,247,548 sq ft Site
Details
China - Changan Ford
Automobile Co., Ltd.,
Transmission Plant
Type: Transmission
Employees: 1,486
Entity: Year Opened: 2014
Legal Entity: FAP Plant
Size: 973,251 sq ft Site
Size: 370 acres
Details
France - Bordeaux Automatic
Transmission Plant
Type: Transmission
Employees: 1,037
Year Opened: 1972
Legal Entity: FOE Plant
Details
Germany - Cologne Transmission
Dyke Plant Joint Venture (50% Ford /
50% Getrag)
Type: Transmission
Employees: 1,288
Year Opened: 1935
Legal Entity: Joint Venture
Details
Slovakia - Kechnec Transmission
Plant Joint Venture (50% Ford /
50% Getrag)
Type: Transmission
Employees: 835
Year Opened: 2005
Legal Entity: Joint Venture
Details
Brazil - Taubate Transmission
Type: Transmission

40
Employees: 2,749 Details
Year Opened: 1974 Japan - Hiroshima Plant
Legal Entity: FSA Type: Transmission
Size: 388,587 sq. ft. Site Year Opened: 1931
Details Legal Entity: FAP
France - Bordeaux Transmission Details
Plant Joint Venture (50% Ford / Japan - Hofu Plant
50% Getrag) Type: Transmission
Type: Transmission Year Opened: 1981
Employees: 851 Legal Entity: FAP
Legal Entity: Joint Venture Size: 537,000 sq ft Site
Size: 1,557,807 sq ft Site
Size: 161 acres
Assembly Thailand - AutoAlliance
(Thailand) Co., Ltd. (Joint
Russia - Ford Sollers St. Venture - 50% Ford, 45% Mazda,
Petersburg Assembly Plant (Joint 5% Thai Affiliate of Mazda)
Venture 50% Ford / 50% Sollers) Type: Assembly
Type: Assembly Employees: 6,900
Employees: 2,961 Year Opened: 1995
Legal Entity: FOE Legal Entity: Joint Venture
Taiwan - Ford Lio Ho Motor Co., Plant Size: 3,512,414 sq ft
Ltd. (Joint Venture - 70% Ford / Site Size: 209 acres
30% Lio Ho Group) Turkey - Ford Otosan Plant (Joint
Type: Assembly Venture - 41% Ford/41% Koc
Employees: 799 Holding/18% Public
Year Opened: 1973 Type: Assembly
Legal Entity: FAP Employees: 7,534
Plant Size: 1,566,311 sq ft Year Opened: 2001
Site Size: 86 acres Legal Entity: Joint Venture
Plant Size: 3,444,451 sq ft Site Size: 116 acres
Site Size: 395 acres Russia - Ford Sollers
Vietnam - Haiduong Assembly Naberezhnye Chelny Assembly
Factory - Ford Vietnam (Joint Plant (Joint Venture 50% Ford /
Venture - 75% Ford/25% Song 50% Sollers)
Cong Diesel) Type: Assembly
Type: Assembly Year Opened: 2014
Employees: 670 Legal Entity: FOE
Year Opened: 1995 Plant Size: 645,834 sq ft
Legal Entity: FAP Site Size: 42 acres
Plant Size: 300,000 sq ft Engine
Site Size: 74 acres
Russia - Ford Sollers Elabuga Taiwan - Ford Lio Ho Engine
Assembly Plant (Joint Venture (Joint Venture 70% Ford/30% Lio
50% Ford/50%Sollers) Ho Group)
Type: Assembly Type: Engine
Employees: 1,164 Employees: 97
Year Opened: 2008 Year Opened: 1972
Legal Entity: FOE Legal Entity: Joint Venture
Plant Size: 2,385,153 sq. ft. Size: 3,759,715 sq ft Site

41
Size: 86 acr

42
 Target customers of ford now a
days
FORD Motor Company designed as the new model FORD FIESTA is target to
young people and ladies. The young people that the organization focuses on 18-
25years old which are teenagers and ladies with average income can affordable
to purchase the cars. And this kind of model is suitable for those unmarried
people because this car only have 5 seats that are not for a big size family.
Therefore, this automobile size is average so it is suitable for those consumers
that like middle size car.

Future strategy

HOFSTEDE'S 5 CULTURAL DIMENSIONS

Five dimensions of culture

Armed with a large database of cultural statistics, Hofstede analyzed the results
and found clear patterns of similarity and difference amid the responses along
these five dimensions.
Power/Distance (PD)
This refers to the degree of inequality that exists - and is accepted - among
people with and without power. A high PD score indicates that society accepts an
unequal distribution of power and people understand "their place" in the system.
Low PD means that power is shared and well dispersed. It also means that
society members view themselves as equals.
According to the above explanation henry Ford's strategy is categories under the
low power/distance (PD). The characteristics of an organization to identify
whether a high PD or low PD is are,
It should be a flat (horizontal) organization which means, an organization with
less or no levels of intervening management between its staff and management.
Equalize, the way they treat to the managers or the supervisors are same as the
way treat to the employees
Ford motor company is an organization with a less management between its
staff which relief employees from extra pressure and they are able to see the
result of what they have really done, what is the outcome of his action. There are
more possibilities to try their new ideas and management can identify the
creativity and it can be used for company's success. Employees are loyal to the
company. Henry treated everyone in a same manner by appreciating their work
not considering who he is, what position he/she hold.
Individualism (IDV)
This refers to the strength of the ties people have to others within the
community. A high IDV score indicates a loose connection with people. In
countries with a high IDV score there is a lack of interpersonal connection and
little sharing of responsibility, beyond family and perhaps a few close friends. A
society with a low IDV score would have strong group cohesion, and there would
be a large amount of loyalty and respect for members of the group. Ford motors,
itself is also larger group and people take more responsibility for each other's
wellbeing, so in ford low IDV exists.
Masculinity (MAS)
This refers to how much a society sticks with, and values, traditional male and
female roles. High MAS scores are found in countries where men are expected to
be tough, to be the provider, to be assertive and to be strong. If women work
outside the home, they have separate professions from men. Low MAS scores do
not reverse the gender roles. In a low MAS society, the roles are simply blurred.
You see women and men working together equally across many professions. Men
are allowed to be sensitive and women can work hard for professional success.
Henry appointed anyone who has a talent in automobile without any
consideration, whether male or female and appreciated in same manner. So the
ford company is categories under low MAS. No matter male or female, if
company recognized your talent and admire and respect it that persons
motivation level is high. That would help an organization to motivate their
employee's.
Uncertainty/Avoidance Index (UAI)
This relates to the degree of anxiety society members feel when in uncertain or
unknown situations. High UAI-scoring nations try to avoid ambiguous situations
whenever possible. They are governed by rules and order and they seek a
collective "truth". Low UAI scores indicate the society enjoys novel events and
values differences. There are very few rules and people are encouraged to
discover their own truth.
Entering and starting a business in automobile industry is not a tranquil thing.
Person must have a knowledge of the industry, product and the economy and
talent of course. Henry was risk taker (one of his great leadership quality) which
we has seen it from him, when was moved to aviation. His vision aimed the
future and strategies were long term. Henry didn't take the decisions by looking
at the present economy statues. So it's a low UAI.
Long term orientation

Henry ford, he is the creator of ford motors he has the power to shut it
down and treat the others in the company as he want. There was always a
chance for creativity and innovation in the ford company. He didn't falter
to do any changes according to the market and the economy. Because of
those reasons according to the Hofstede's Cultural Dimensions it's a low
LTO