Strategic Audit Ford
contents 1.0 Introduction 3 2.0 Strategic Issues of Ford 4 3.0 The External Environment 5 3.1 PESTEL Analysis 5 3.1.1 Political Environment 5 3.1.2 Economic Environment 6 3.1.3 Social Environment 7 3.1.4 Technological Environment 7 3.1.5 Natural environment 8 3.1.6 Legal Environment 8 3.2 The Industry Porters’ Five Model 9 3.2.1 Buyer’s Power - Moderate 9 3.2.2 Suppliers’ Power - Low 10 3.2.3 Threat of New Entrants - Low 11 3.2.4 Threat of Substitutes – Slightly Moderate 11 3.2.5 Industry Rivalry - High 12 4.0 The Internal Environment 13 4.1 The Value Chain Analysis 13 4.1.1 Primary activities 13 4.1.2 Secondary activities 14 4.2 Analysis of Ford’s Core Competencies 16 5.0 Strategy Formulation 19 6.0 List of Strategies 19 6.1 Financial Restructuring of Ford 20 6.2 Resource-based value 20 6.3 Retrenchment Strategy 21 6.4 Product differentiation 21 7.0 Recommendation and Evaluation 23 8.0 Conclusion 23 9.0 Appendix 24 9.1 SWOT Analysis 24 9.2 TOWS Matrix 25 10.0 Reference List 28
1.0 Introduction
Ford Motor Company was incorporated as a company in the year 1906. The founder of the company was Henry Ford. Ford Motor Company was the first company to make use of assembly lines for the production of cars. Currently, Ford is the fourth largest car manufacturer in the world. In the year 2008, its global production of automobiles was approximately five million (World Automobile Industry Challenges and Prospects 2009). However, due to the automotive crisis in the year 2008-2010, Ford has experienced a critical situation.
Therefore, in this report we explain the competitive position of Ford in the Australian and International Motor Vehicle Industry. Moreover, we have analysed the costs the company has been incurring. From this analysis, we provide our recommendation where Ford can cut it cost or it should financially restructure itself. Furthermore, we explain the reasons why Ford has been losing its
1.0 Introduction
Ford Motor Company was incorporated as a company in the year 1906. The founder of the company was Henry Ford. Ford Motor Company was the first company to make use of assembly lines for the production of cars. Currently, Ford is the fourth largest car manufacturer in the world. In the year 2008, its global production of automobiles was approximately five million (World Automobile Industry Challenges and Prospects 2009). However, due to the automotive crisis in the year 2008-2010, Ford has experienced a critical situation.
Therefore, in this report we explain the competitive position of Ford in the Australian and International Motor Vehicle Industry. Moreover, we have analysed the costs the company has been incurring. From this analysis, we provide our recommendation where Ford can cut it cost or it should financially restructure itself. Furthermore, we explain the reasons why Ford has been losing its