"It has been my observation that most people get ahead during the time that others waste," said Ford. "I do not believe a man can ever leave his business. He ought to think of it by day and dream of it by night."
The company saw the heights of achievement because of the way Ford himself believed his business should be run. Untiring devotion to his work was his priority. What took Ford to achieve the notoriety it obtains today has been unflinching hard work and that too coupled with learning from mistakes and not being setback because of them. For Ford only believed in the Future and the Future he envisioned with learning from the present incorporating the past. The vision of what was unacceptable to the mind and the vigor to produce the dream is the key success Factor of Ford Motor Company. Working against the critics it was the laborious hours of sheer hard work that made it all possible for Ford.
To break it into steps the first we come across is the preparation. This means one must be prepared for what he can accomplish and not rush neither his business nor ones decisions. In business one often wants to meet up with the presenting opportunities but it is the forward planning and vision for which one must prepare oneself and then act accordingly to really boost the business. This very factor is evident from the decision Ford took in perfecting his Model T.12 when he could have easily taken up with any of the investors. But instead it was his preparation of the future and what it would hold for them that made that very Model the ultimate hit of its time. Instead of rushing matters Ford took upon presenting quality and thereby earning popularity. The second important key factor in the company's success is the Teamwork. The teamwork at Ford is very unique in a manner that Ford treats all its employees as equals where they are encouraged to be vocal and even suggest at all levels to what they think could be an advantage and be responsible at their own ends. Moreover the hiring criteria for the workers is not the expertness in the field rather fresh minds for Ford believes that experts would have less to add to the technology compared to fresh minds regardless of backgrounds. For only the fresh mind would be willing to take more chances and have more solutions to problems. Hence Ford in this manner broadened its horizons. Ford ensured the loyalty of its workers by high wage benefits and considered it a service to the Nation itself.
The third factor of the Ford Motor company success is the value. By this Ford believes in the production of best serviceable cars that would appeal to the masses and would cater to their comforts. It is at the heart of Ford to make cars that provide the optimum for the money that its customers are spending for their comfort. Another important factor in the company's success is the Efficiency. Ford believes in detail. It is the little things which combined together make a bigger picture, and it is the detailing of these little things that has made the business excel and stand where it is today. The example of such efficiency is Ford's moving assembly line. To create efficient models that would be best answers for masses affordability was Ford's aim which was achieved and delivered results.
Ford Motor Company which started its business in 1919, produces trucks and cars. Ford company is a joint venture with Getrag Deutsche Venture GmbH and Co, Mazda, KG, Song Cong Diesel, Lio Ho Group,and Neumayer Tekfor GmbH. The financing of vehicles is its subsidiary along with other businesses. It is further divided into two areas of operation. One is the Automotive and the other is the financial services. The Automotive area further incorporates the Ford South America, Ford North America, Ford Europe and Ford Asia Pacific and Volvo. The Financial services cover the workings of Ford Motor Credit Company and misc financial services. The Automotive sector sells vehicles under names of Lincoln, Volvo, Mercury, and Ford. It is also responsible for transactions encompassing dealers for cars and trucks who sell them to governments, rental companies, leasing companies and commercial fleet customers. It is also responsible for the after sale vehicle services and products for the customers. This evolves the maintenance, repair, accessories, collision and warranty. This all is provided under the brand labels of Lincoln Mercury Parts and services, Genuine Ford, Ford extended Motor plan and Motor craft.
The financial Services area is responsible for the financing of products to the dealers via dealers. This encompasses wholesale financing which involves the process of loan sanctions to the dealers for buying vehicle inventory, renovating dealer facilities, working capital and real estate. It also handles retail financing which involves retail lease contracts from the dealers as well as retail sales contracts. It is also responsible for all the leases made, the purchases done, the finance receivables. This sector also provides the insurance services to the financing programs.
The models that Ford started selling outside of US were initially identical to ones which were sold inside the US. However with the concept of globalization at hand Europe specific Models were developed. But The Europe model which was named Ford Mondeo was not a hit in the market even by the name of Ford Contour. This was also true for the US based model Ford Taurus that did not do well in the Japanese markets and even the up gradation of the right hand feature could not save its doomed eventuality. So the models that were even a hit in the home markets failed to deliver similar results in other foreign markets except the European Model Focus that gained popularity throughout. Ford has sold approximately 4,816,000 cars at wholesale by December 2009.
Product of Ford
Comparing performance
Soy seats have been used since beginning of year 2010. It cuts down the petroleum oil usage by 1 million pounds per year.
The fuel Economy has been increased from 2007-2009 by 2.9 percent. Ford has worked upon systems guarantying to be the best from the start of year 2010.
For the fuel efficiency problem Ford has created the S series 1-4 automatic which has outclassed both the Toyota Camry and the Honda Accord. The cars get a 41 mpg city/36 mpg highway, and the gasoline S-Series I-4 automatics get 23 mpg city/34 mpg highway. The 2WD, manual five-speed is fuel efficient for the small pickup at 21 mpg city/26 mpg highway
Ford F-150 is the best for fuel efficiency doing 15 mpg city/20 mpg highway beatings the Toyota Tundra's 14 city/17 highway
Relationship marketing is the establishment , development and maintenance of relational exchanges. The relationship built between the company and the customers, employers, distributors, are very important for the sustainability , stability and growth of the company. It helps to form a strong foundation for the company to blossom. A company that can retain even 5% of its customers can boost its revenue by 50%. So in this manner the relationship between the company and the customer is very important and the company must strive to retain the loyalty of its customers in competitive market.
Ford's Globalization plan 2000
Alex Trotman announced in April 1994 that Ford was to become one single entity. The plan was to merge the North American and the European vehicle business under Ford Automotive Operations. This would include product development, sales, marketing, and manufacturing so as to eliminate duplication of design, development and engineering of the models. The problem faced by Ford was the losses in the European market even though their Brand was the best selling. Their objective was to cut their costs. The $ 291 setback in profits in the European market led to this decision and the agenda was to bring the profit graph up. Apart from this there were other minor concerns as well like creativity. With the help of globalization the company aimed at saving $3 billion a year with the launch of their plan of low development and product design. The company achieved at lower costs and produced products of higher value.
Acquisition and Diversification moves
The acquisition of the series Volvo, Aston Martin and Jaguar helped Ford beat General Motors when it came to performance. Ford newly acquired companies helped the company maintain the market share at 23%. By the start of 2002 Ford made another diversified move and that was the announcement of incentives which involved rebates on some of its best selling models. The company moreover announced the phasing out of some of its models by year 2002. The concept was to get rid of the companies forging units. The aim was to cut costs and increase profits by $1 billion by doing this alone. There were other cost cutting measures used as well which included the sale of the company's corporate jets, and cutting food at meeting etc.
Global markets
Ford started out by selling models to the international market similar to those of the home market. Later the models that were sold to Europe were specifically designed for the Europe market. To globalize the model line failed with the Ford Mondeo which sold poorly in the united States as Ford contour.
Europe
Initially Ford in Britain and Ford in Germany built different models till 1960's. Later the company started making identical models with few variations. It has been Ford Of Europe that the company has depended for its world cars. Car production came to an end in the year 2002 in Britain. There exists a Ford Transit Connect in Romania. Ford Otosan is a joint venture production unit of Turkey. A similar venture exists in Portugal. The cars that have been produced in the Europe have done well and have been quite advanced for their times. It has always worked with the demand. By 1970s Ford started producing smaller cars as per their popularity and sold many of them.
South America
Ford built very different models for the different countries regardless of economy scale. The cars made were under supervision of the manufacturers that the company had acquired or the factories they had bought there. Autolatina was formed as a result of merging of Ford of Argentina and Ford of Brazil with Volkswagen. It started functioning in 1987 and by 1995 the company ended because of loss. Ford Focus is made only in Argentina and Ford Fiesta only in Brazil.
Market shares and their sales
Unite States Shares
2004
2003
United State Sales2004
2003
Ford North America
3,623
3,810
83.0
83.6
Ford South America
292
210
3.0
1.9
Total
3,915
4,020
86.0
85.5
Ford Europe
1,705
1,609
26.5
22.2
PAG
771
774
27.6
24.8
Total
2,476
2,363
54.1
47.0
Beyond 2000
By 2001 Ford saw a decrease in its profits of up to 4%. The cause was the sport vehicle model security issue. The country saw a lot of deaths and so the company had to recall their tires of Firestone which cost them $ 500 million. The law suits the company spent remained undisclosed but nonetheless that too attributed to the company first quarter slump. The sales also fell from 6% to 1.8 world over and also the revenues fluctuated by 1% to $42.4 billion. [1] There were many setbacks but still Ford was able to gear up its profits to $ 88 million from the Europe market with the sales rising from 22% to $8.7 billion.
In 2002 Ford came up with many solutions to cut the costs which included incentives to customers and sale of its corporate jets but in the end they did not add up to make a big difference. By 2003 Ford based its Futura and other models on Mazda 6. After all efforts Ford sales still fell by 50%. By 2004 Ford used marketing tactics like computers with certain models were being given, rebates were offered on some .
Future Strategies
Because of the increase in the fuel prices The SUVs and bigger trucks would have to take a back seat and Ford will move on to make smaller cars to meet the demands of their customers and help their decline in sales graphs.
SWOT ANALYSIS
Strengths
Growing Ford Europe and PAG. [2] : The revenue generated by Europe and Turkey alone is $60,258 as per year 2005 with a growth rate of 11.3% over 2004.
Profitable financial services division: In 2005 there was a growth increase by $873 million compared to 2004.
Strong Ford Asia, Africa and Ford Mazda operations: This saw an increase of growth by 18.5 % over 2004.
Weaknesses
Large unfunded pensions and other pending objectives: There are much insurance, health care and pensions at Ford that have to be taken care of.
Tarnished Brand Image: The recalls of its products has given Ford a bad name for which they have faced heavy losses.
Weakening North American automotive operations: The Japanese companies have taken the edge and so the market of Ford is affected. The market trend and boom is towards fuel efficient cars. Increased fuel prices have given Ford a setback.
Oppurtunities
Hybrid Vehicles :Due to increase in fuel prices the Ford company will switch to hybrid technology in their systems by year2010.
Opportunities in India and China: To generate revenue Ford can look for the popularity of the light vehicles in these countries.
Threats
Low Capital spending: The capital spending of Ford is much less to that of its Japanese Competitor.
Increased Competition: The major competition is from the Japanese company that has shifted the market trend a lot.
Misc: Hot rolled steel coil price and Unstable steel prices.
Objectives set in 2005
Improving the quality of the cars.
Working towards better customer care
Enhanced results at all the levels.
Improving market shares and revenue.
Making and deliverance of better products also new products.
Maintaining overall costs of 2004.
Key threat of Japan
It was Toyota in the year 2003 that took the lead on Ford Motor Company. By the year 2006 Toyota has conveniently put Ford on the 2nd position in sales. Toyotas Hybrid technology has provided the edge which is now been worked upon as an integral design of all vehicles produced.
