Case Analysis for Ford Motor Company
Case Analysis for Ford Motor Company
Group 3
Elina Cordon
Sanya Ith
Karen Palmer
Aydely Santiago-Taiman
Table of Contents
Table of Contents………………………………………………………………………...1
I. Executive Summary……………………………………………………………..2
II. Introduction……………………………………………………………………...3
III. Issues………………………………………………………………………….....4
IV. External Audit…………………………………………………………………...4 Opportunities…………………………………………………………....4 Threats…………………………………………………………………..5
V. Internal Audit…………………………………………………………………….6 Strengths………………………………………………………………...6 Weaknesses……………………………………………………………..7 Financial Analysis………………………………………………….…...9
VI. Strategic Alternatives…………………………………………………………...11 S-O Strategies………………………………………………………….11 W-O Strategies…………………………………………………………12 S-T Strategies…………………………………………………………..13 W-T Strategies………………………………………………………….14
VIII. Implementation………………………………………………………………….16
IX. Review & Evaluation…………………………………………………………....17
X. Appendices………………………………………………………………………18 Appendix I………………………………………………………….......18 Appendix II……………………………………………………………..19 Appendix III……………………………………………………………20 Appendix IV……………………………………………………………21 Appendix V…………………………………………………………….22 Appendix VI…………………………………………………………....23
I. EXECUTIVE SUMMARY
Ford Motor Company (“Ford”) has been a leader in the auto industry. However, over the past few decades Ford has continued to lose market share to foreign competition. The current weak U.S. economy combined with rising fuel prices and increased political pressures regarding global warming presents several challenges to Ford and the entire auto industry.
According to the financial analysis, Ford's debt to equity ratio was 24.92 in 2007 and 5.46 in 2011. The ratio is improving however, it is still very high. Another issue is Ford’s receivable turnover ratio is low compared to the industry.
Although Ford has increased sales in 2011 it needs to continue with R&D to develop a more fuel efficient vehicle as well as take corrective actions in
Group 3
Elina Cordon
Sanya Ith
Karen Palmer
Aydely Santiago-Taiman
Table of Contents
Table of Contents………………………………………………………………………...1
I. Executive Summary……………………………………………………………..2
II. Introduction……………………………………………………………………...3
III. Issues………………………………………………………………………….....4
IV. External Audit…………………………………………………………………...4 Opportunities…………………………………………………………....4 Threats…………………………………………………………………..5
V. Internal Audit…………………………………………………………………….6 Strengths………………………………………………………………...6 Weaknesses……………………………………………………………..7 Financial Analysis………………………………………………….…...9
VI. Strategic Alternatives…………………………………………………………...11 S-O Strategies………………………………………………………….11 W-O Strategies…………………………………………………………12 S-T Strategies…………………………………………………………..13 W-T Strategies………………………………………………………….14
VIII. Implementation………………………………………………………………….16
IX. Review & Evaluation…………………………………………………………....17
X. Appendices………………………………………………………………………18 Appendix I………………………………………………………….......18 Appendix II……………………………………………………………..19 Appendix III……………………………………………………………20 Appendix IV……………………………………………………………21 Appendix V…………………………………………………………….22 Appendix VI…………………………………………………………....23
I. EXECUTIVE SUMMARY
Ford Motor Company (“Ford”) has been a leader in the auto industry. However, over the past few decades Ford has continued to lose market share to foreign competition. The current weak U.S. economy combined with rising fuel prices and increased political pressures regarding global warming presents several challenges to Ford and the entire auto industry.
According to the financial analysis, Ford's debt to equity ratio was 24.92 in 2007 and 5.46 in 2011. The ratio is improving however, it is still very high. Another issue is Ford’s receivable turnover ratio is low compared to the industry.
Although Ford has increased sales in 2011 it needs to continue with R&D to develop a more fuel efficient vehicle as well as take corrective actions in