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Hamill Bassue
Owen Hendershot
Goran Nagradic
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Overview
Company Overview Fords 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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Fords Brief History
1903Ford Motor Company founded in Michigan
1908Model T introduced
1913first moving automobile assembly line in the
world1956Fords stocks go on sale (10.2 million shares
sold the first day)
1987beginning of the acquisitions of otherbrands
1988Ford Motor Company reached the peek
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Management
William Clay Ford, Jr.
Executive Chairman
Alan Mulally
President and CEO
Donat R. Leclair
Executive V.P. andCFO
Lewis Booth
Executive V.P. Ford ofEurope/PAG
Mark Fields
Executive V.P. andPresident, The
Americas
Mark Schulz
Executive V.P.
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Mission & Vision Statement
"To become the world's leading consumer
company for automotive products and
services.
- Ford doesnt 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 manufacturingcompany for automotive products and services. To achieve this, wethe company and all our employees are dedicated to provide all ourcustomers and the community with safe innovative products andservices of world class standards. Through our engineeringexcellence, high quality and the use of our constantly upgradingtechnology we limit the harm that we cause to the environmentwhile delivering superior value to our customers. Our close knitworking environment allows our employees, community andbusiness partner to share in our success, while achieving asubstantial 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 GM
DiamlerChrysler
AG Toyota
Critical Success factors
Weigh
ts
Rati
ng
Weighted
Score
Rati
ng
Weighted
Score
Rati
ng
Weighted
Score
Rati
ng
Weighted
Score
0.0 to
1.0
1 to
4
1 to
4
1 to
4
1 to
4Global 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 consumerspending 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
http://www.reuters.com/finance/stocks/incomeStatement?stmtType=INC&perType=ANN&symbol=F.Nhttp://www.reuters.com/finance/stocks/incomeStatement?stmtType=BAL&perType=ANN&symbol=F.Nhttp://www.reuters.com/finance/stocks/incomeStatement?stmtType=CAS&perType=ANN&symbol=F.Nhttp://www.reuters.com/finance/stocks/incomeStatement?stmtType=CAS&perType=ANN&symbol=F.Nhttp://www.reuters.com/finance/stocks/incomeStatement?stmtType=BAL&perType=ANN&symbol=F.Nhttp://www.reuters.com/finance/stocks/incomeStatement?stmtType=INC&perType=ANN&symbol=F.N8/12/2019 ford presentation.ppt
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Ratios
Ratio
Compass
Group PLC Industry
Debt-to Total assets 0.60 -
Debt-to Equity 29.94 47.47
Long-term debt-to Equity 29.94 110.45
Time-interest-earned -2.64 0.01
Net Profit Margin -0.02 1.75
Gross Profit Margin 0.11 15.3
Operating profit Margin 0.11 2.99
Ratio
Compass
Group PLC Industry
Return on Total Assets -0.01 1.38
Return on Equity -0.48 5.19
EPS -1.24 -
P/E -5.98 14.53
Sales (growth) 7.74 -7.24
Net Income (growth) 463 1.75
EPS (growth) 1101 14.91
Dividends (growth) -100 1
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Strengths & Weaknesses
Strengths
Strong and globally positioned
brand names
Large employee base withhighly 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 actuallyput the product on the market
Recording continuous losses
(net income) from 2006 Low quality of new products
(recallscausing losingcustomers)
Lack of management of thecompany
EPS very badin negativenumbers (unattractive for theinvestors)
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IFE Matrix
Key Internal Factors Weights Rating
Weighted
Score
0.0 to
1.0
1, 2, 3 or
4
Internal Strengths 3 or 4
Strong and globally positioned brand names 0.13 4 0.52
Large 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 0.18
1285% increase in net cash 0.09 3 0.27
Huge increase in total equity 0.11 4 0.44
Internal Weaknesses 1 or 2
Alot of time spent to actually put the product on the market 0.1 2 0.2
Recording continuous losses (net income) from 2006 0.12 1 0.12
Low quality of new products (recalls - causing losing customers) 0.12 1 0.12Bad management of the company 0.08 2 0.16
EPS very bad - in negative numbers (unattractive for the investors) 0.1 1 0.1
Totals 1 2.38
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Strategic Formulation
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SWOT MatrixStrengthsS
1. Strong globally positioned brandnames
2. Large employee base with highly
educated engineers and good R&D
department
3. One of the largest automotive
manufacturer (along with a long
history)
4. 1285% increase in net cash
5. Huge increase in total equity
WeaknessesW
1. A lot of time spent to actually put theproduct on the market
2. Recording continuous losses (net income)
from 2006
3. Low quality of new products (recalls -
causing losing customers)
4. Lack of management of the company
5. EPS very bad - in negative numbers
(unattractive for the investors)
OpportunitiesO
1. Consumers demand hybrid and fuel
efficient vehicles
2. Increase in consumer spending trends
3. Consumers demand more innovative
vehicles
4. Global expansion
5. Industry experiences slow and steadygrowth
SO
1. Developing new vehicles on
alternative fuels (S1, S2, S4, O1, O3.
O5)
2. Offer new innovative products
increase market share - motorbikes
(S1, S2, S3, O2, O3, O5)
3. Concentrate on making the best fuelefficient cars (S1, S2, S3, S4, O1, O4,
O5)
WO
1. Relocate the production to cheaper
country with lower taxes (W2, W4,
O4, O5)
ThreatsT
1. Weak USD
2. Increase in steel and resin pricing
3. Increasing gasoline prices
4. Stricter CO2 emission standards
5. Increasing mortgage rates
ST
1. Build eco-friendly products from
alternative materials (S2, S3, S4, T2,
T3, T4)
2. Produce more cars for foreign
market (S1, S2, S4, T1, T4)
WT
1. Merge with competitors (W1, W2, W5,
T2, T3, T5)
2. Manufacture only parts for
automobiles (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 +6
IS
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% -3PAG 33067 21% -1872 - - +10
Asia 8032 5% 206 - 38% +3
Total 154379 100% -3911 - - -
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BCG Matrix
Relative market share position in the industryHigh 1.0 Medium .50 Low 0.0H
igh+30
Medium0
Low-3
In
dustrysalesgrow
thrate
SA
APA
NA
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IE Matrix
Hold and Maintain
31
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Grand Strategy Matrix
Rapid 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 productsincrease
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 incomeand 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 Fords brand
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Evaluation
Excellent
Good
Unsatisfied
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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-
relations
Datamonitor
Global Automobile Industry manufacturer 2006
Pictures taken from Web
http://www.ford.com/about-ford/investor-relationshttp://www.ford.com/about-ford/investor-relationshttp://www.ford.com/about-ford/investor-relationshttp://www.ford.com/about-ford/investor-relationshttp://www.ford.com/about-ford/investor-relationshttp://www.ford.com/about-ford/investor-relationshttp://www.ford.com/about-ford/investor-relations8/12/2019 ford presentation.ppt
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Questions???