Ford Space Matrix
SPACE MATRIX | Financial Strength | Ratings | Return on investments is high, increasing to 5.86%. | 2.0 | Liquidity Ratio (Cash) increased to 0.98 | 3.0 | Inventory Turnover is high, increasing to 13.2. | 1.0 | Working Capital improved to $23.55. | 3.0 | Target EPS for 2011 of 1.89 was achieved. | 2.0 | Ford reported a 6.8 percent sales increase in December 2010 | 4.0 | | 15.0 | Industry Strength | The growth potential is very high most especially for the existence of small cars like Focus. | 5.0 | Profit potential is high due to the needs of cars. | 2.0 | Financial stability is low. Due to the increasing prices of fuel in the world market and increasing prices of materials needed. | 3.0 | Technology is rapidly developing. New cars and styles were selling out to the market. Ford for being an innovative one in making their cars eco-friendly makes them outsold other companies like G.M in February 2010 | 2.0 | Resource utilization is low due to the increased price of materials that are needed for production. Some companies like Ford shift for being eco-friendly to save and utilize the limited resources. | 4.0 | New comers in automotive industry have difficulties to compete to the large and known logo in the said industry. Since Ford is the pioneer to the industry. | 3.0 | | 19.0 | Environmental Stability | | Relatively low flexibility in adapting to new technology | -5.0 | Interest rates have increased | -2.0 | Demand declined due to economic conditions | -3.0 | Price difference between products is not that far | -3.0 | Capital intensive and high capitalization industry disabling entrants | -4.0 | Close competition between company rivals | -5.0 | Risk is minimized due to diversification | -3.0 | | -25.0 | Competitive Advantage | | Ford is increasingly winning new customers from competing brands | -5.0 | Ford quality jumps 11 percent, soaring above the industry’s 2 percent improvement. | -4.0 | Six Ford