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Ford: Company Analysis

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Ford: Company Analysis
ABSTRACT

Ford Motor Company have been around since 1903, and although in the past they lost market shares due to production and marketing scandals, they remain robust in 2005. This paper has been written to thoroughly analysed Ford through PESTEL analysis to comprehend the macro environment in, Porter’s Five Forces analysis to determine the competition and lastly SWOT analysis to depict the micro environmental factors of the company in question. It has been concluded that due to the fierce competition in the industry, and due to the changes in the environmental factors, Ford Motor Company needs to concentrate on improving on its weaknesses in order to avoid and overcome the threats.

COMPANY ANALYSIS: FORD MOTOR COMPANY

Introduction

Ford Motor Company was founded in 1903, in the United States of America, by Henry Ford and eleven other investors. By 1919, the business began to prosper. Following disagreements with the other investors, Henry Ford and his son, Edsel Ford bought the shares of the investors and became the sole owners and decision makers of Ford Motor Company (Brinkley, 2004).

Today, William Clay Ford Junior is the leader of a company with a well established product portfolio of cars, trucks, vans and Sport-Utility Vehicles under the following brands; Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar, Land Rover and Aston Martin (Ford 2005; BBC, February 2002).

The world’s largest car manufacturer in the world by volume is General Motors Corporation, followed by Ford which is then followed by DaimlerChrysler (Reuters, 2005; Yahoo Finance, 2005).

This paper will be thoroughly analysing Ford through the use of various analytical tools, such as PESTEL analysis to comprehend the macro environment in which Ford operates in (Campbell et al., 2002), Porter’s Five Forces analysis to determine the competition (Clegg et al., 2004) and lastly SWOT analysis to depict the micro environmental factors of the company in question (Stone,


References: BBC, February (2002). “Automotive empires” http://news.bbc.co.uk/1/hi/business/678496.stm (Accessed: 9/11/05) BBC, January (2002) BBC, October (2005). “Oil costs fuel US trade deficit” http://news.bbc.co.uk/1/hi/business/4338778.stm (Accessed: 9/11/05) BBC, November (2005). “GM and Toyota said to hold talks” http://news.bbc.co.uk/2/hi/business/4398718.stm (Accessed: 9/11/05) BBC, November (2005) http://news.bbc.co.uk/2/hi/business/4417618.stm (Accessed: 9/11/05) BBC, June (2004) BBC, September (2003). “Car giants sign labour deal” http://news.bbc.co.uk/1/hi/business/3112246.stm (Accessed: 9/11/05) BBC, April (2005) BBC, September (2005). “Ford plans huge cull of suppliers” http://news.bbc.co.uk/1/hi/business/4293484.stm (Accessed: 9/11/05) BBC, January (2002) Bloomberg, (2005). “Ford extends sponsorship of Nascar race for 10 years” http://www.bloomberg.com/apps/news?pid=10000103&sid=ah2.0NAil6AM (Accessed: 10/11/05) Brinkley, D Business Week Online (2005). “Here come Chinese cars” http://www.businessweek.com/bwdaily/dnflash/may2005/nf20050526_0195_db016.htm (Accessed: 13/11/05) Campbell, D., Stonehouse, G., Houston, B China Daily (2005). “Chinese-made cars debut in US market” http://www.chinadaily.com.cn/english/doc/2004-06/29/content_343812.htm (Accessed: 13/11/05) Clegg, S Ford Annual Report, (2003). http://www.ford.com/NR/rdonlyres/ejxygjpahwomelqsa5oyna6ovwnl3au4x6vqqazcti4nncayc27ax3l4ym3e bnl3nh34l6i7tzdcxigagq3ewhxjwxe/2003_annual_report.pdf (Accessed: 9/11/05) Ford Motor Company, (2005) Official website. http://www.ford.com/en/default.htm (Accessed: 10/11/05) Ford Motor Company (2005) Gower, J. (2002), The European Union Handbook. Routledge UK. Kerwin, K. (2002). Ford: Luxury is job one. Business Week. No.11 November, pp.48-50. Key Note (2005), Motor Industry. Tenth Edition. Edited by, Dominic Fenn. Kochan, A. (2001). Ford pioneers force-controlled robots for transmission assembly. Industrial Robot: An international journal. Volume 28 No.6, pp. 473-478. Mintel Reports (2004). Cars – UK – September 2004. Muller, J., Kerwin, K., Welch, D., Moore, P.L., Brady, D., Tierney, C., Schmidt, K.A., Dawson, C. (2001). Ford. Why it’s worse than you think. Business Week, No.25 June, pp.48-55. Reuters, (2005). US Sales fall at GM and Ford, Toyota, Honda gain. http://today.reuters.com/news/newsArticleSearch.aspx?storyID=115095+02-Nov-2005+RTRS&srch=ford (Accessed: 10/11/05) Stone, F Taylor III, A. (2003). Getting Ford in gear. Fortune, pp.42-5 The Guardian, (2005) Yahoo Finance, (2005). Auto manufacturers – Industry Profile. http://biz.yahoo.com/ic/profile/330_1019.html (Accessed: 10/11/05) Verezpej, M.A
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