Ford: Team Taurus

Group 1: Strategic Management

Vision Framework



Mission

Ford Motor Company is a worldwide leader in
automotive and automotive-related products and
services as well as in newer industries such as
aerospace, communications, and financial services. Our
mission is to improve continually our products and
services to meet our customers needs, allowing us to
prosper as a business and to provide a reasonable
return from our stockholders, the owners of our
business.
Values

People-Our people are the source of our strength. They
provide our corporate intelligence and determine our
reputation and vitality. Involvement and teamwork are
our core human values.
Products-Our products are the end result of our efforts
and they should be the best in serving customers
worldwide. As our products are viewed, so are we
viewed.
Profits-Profits are the ultimate measure of how efficiently
we provide customers with the best products for their
needs. Profits are required to survive and grow.

1. Core Ideology

Core Values
Treat employees as
partners
Build for the future
Recognize the road to
success
Involve associates iat
all levels in total
decision making
process




Core Purpose
Saving People
Money So They
Can Live Better


2. Envisioned Future
BHAG: To become a $125 billion
company by 2000
OBJECTIVES
Financial Objective:
Strategic Objective:
Social Objective:
Maximum profit, market share growth, technological and service leadership

Key determinants of Strategy
TOWS
Threats Opportunities Weaknesses Strengths
Societal Expectations


Personal values
Catholic Social Teaching: Respect for individual
(one of three basic belief of Wal-Mart top
management)

Respect Work and the Worker. According to
Genesis, God not only creates man but puts him to
work naming the animals and caring for the
garden.






6 Major Segments of the Macroenvironment

Change in Macroenvironment: Gasoline shortages in 1979
Effect of change on the determinants/barriers:
Effect of change on the forces:
Conclusion: Threat or opportunity
Financial Ratios
Financial
Ratios
Fiscal Years Ending January 31
2008 2007 2006 2004 20002 2000
Current
Ratio
0.8 0.9 0.9 0.0 1.0 0.9
Return
on Assets
8.4% 8.8% 9.3% 9.7% 0.0% 10.1%
Return
on
sharehol
ders
equity
21.!% 22% 22.9% 22.4% 20.7% 24.5%
COMPETITIVENESS OF PRICES & COSTS
Thompson and Strickland: A Representative Company Value Chain
Supply Chain
Management
Operations Distribution
Sales and
Marketing
Service Profit Margin
Product R&D, Technology, and Systems Development
Human Resources Management
General Administration
Primary Activities and Costs
Support
Activities
and Costs
Value Chain
Values to Customers

1. Convenience
2. Availability various choices
3. Affordability
4. Overall Shopping Experience

Value Chain
Primary
Activities
Activities Secondary Activities
Product,
R&D,
technology
and Systems
Development
Human
Resource
Management
General
Administratio
n
Supply Chain
Management
Pressuring
suppliers to
follow set
standards to
maintain low
prices of
goods
Developing in-
house
software
systems
Hiring top
calibre IT
programmers
Operations
Value Chain
Primary
Activities
Activities Secondary Activities
Product,
R&D,
technology
and Systems
Development
Human
Resource
Management
General
Administratio
n
Distribution Penetrating
untapped
territories
Conducting
research and
feasibility
studies
Sales and
Marketing
Offering sales
promotion
advertising
Service Creating
pleasant
environment
for customers
Providing
incentive
scheme to
motivate store
personnel
Specialization
STRATEGIC MAP
The Competitive Advantage Cycle