March 1, 2010
Executive Summary Pg. 3
2. Ford Motor Company Study
Macro Environment Scanning Pg. 4-6
Industry Analysis (Automotive Industry) Pg.6-12
Intra Industry Analysis (Ford and main competitors) Pg. 13-15
Internal Analysis (Ford)Pg. 15-17
Cuatro Consulting Groups Findings Pg. 18-21
Summary Pg. 22
References Pg. 23
Thank you for your time.
The Ford Motor Company is an American multinational corporation based in Dearborn, Michigan. It was founded by Henry Ford on June 16, 1903. After over a century of success,rough times have arrived and threaten Ford’s reputation as well as the company. The way that Ford is perceived by consumers is different than what Ford is in reality. Ford is not seen as the company that is soon launching the first hybrid to be the most fuel efficient luxury sedan in America. They don’t see that this year Ford gained U.S. market share for the first year since 1995 and for the firsttime since Alan Mullay became CEO, with new models such as the revamped Taurus sedan while other companies such as General Motors and Chrysler reorganized with federal aid. That is the reality of the situation; unfortunately it may not be enough to pay off the outstanding debt turn this company around. That is where we (Cuatro Consulting Group) come in, to explain to you what is going on and mostimportantly what can be done.
In the US, the environmental aspects heavily influenced what occurred in the automotive industry meaning security wise, income wise and of course fuel prices. Also the industry is not attractive making it that much harder to enter it and to be profitable once you have passed the entry barriers. Ford is at an advantage in comparison to its competitors with regardsgovernmental bailout in the US however Ford is heavily indebted. Now taking this into account we came to the conclusion that the next logical step though a drastic one can provide many solutions to these problems and many advantages. Growth through horizontal integration using Honda because of its success worldwide is the corporate strategy that we recommend along with internal short term goals aswell as long term ones. Due to the tarnished image that Ford has and its financial position, this is a solution that would resolve these problems. Honda has a strategy that has been successful throughout the years and they can provide Ford with a reputation internationally that you could use at this time.
External environment analysis is the first step to determine the riskfactor that is the major source of uncertainty. In this paper, we, the consultants will use PEST analysis for the US and will be continued with opportunities and threats.
Since Barack Obama was elected as the president of United States, people’s trust has grown domestically and internationally. During the recession time, Obama decided to give bailout funds to major automakers such asGeneral Motors and Ford, which Ford refused. Internationally, US had gained more respect due to the bold political action taken, refusing to continue the predecessor’s decision. Other country’s which do not have the same background as the US such as Saudi Arabia, Emirates, China and India began to work in favor for US benefits. This could be the source of funds for the use of US. Currently, USpolitical dimensions are in stable condition even though there are some debates on the health care system bill.
After being hit with the financial crisis, the impact of recession is still deep in the US economic condition. All sectors have been more or less trying to increase efficiency by laying off workers and even declared bankruptcy to protect the company future. Due to the culture of...