Beruflich Dokumente
Kultur Dokumente
Owen Hendershot
Goran Nagradic
Overview
Company Overview
Fords brief history
Mission and Vision
statement
Current Objectives &
Strategies
Internal Assessment
Strengths & Weaknesses
Financial ratios
IFE Matrix
Strategy Formulation
SWOT Matrix
BCG
Space Matrix
IE Matrix
Grand Strategy Matrix
QSPM Matrix
Implementation
EPS/EBIT
Other issues
Evaluation
Management
Objectives
To contribute to stabilizing the climate
by considering reducing long-term
emission
To promote the development of an
infrastructure that will expand the use
of bio-fuels and help reduce our
dependence on oil
To cut the usage of global energy by
27% and the usage of water by 25%
Strategies
External Assessment
Industry Analysis
Global Automobile Industry
Value
Industry Segmentation
Industry Segmentation
Industry Forecast
CPM
DiamlerChrysler
Ford
GM
AG
Toyota
Weigh Rati Weighted Rati Weighted Rati Weighted Rati Weighted
ts
ng
Score
ng
Score
ng
Score
ng
Score
0.0 to 1 to
1 to
1 to
1 to
1.0
4
4
4
4
Global Expansion
0.14
0.28
0.42
0.28
0.42
Financial Position
0.10
0.2
0.4
0.3
0.3
Growth
0.16
0.16
0.48
0.16
0.64
US Market Share
0.20
0.6
0.8
0.4
0.4
Customer Loyalty
0.15
0.6
0.45
0.6
0.45
0.18
0.54
0.54
0.36
0.36
Management Experience
0.07
0.21
0.28
0.21
0.21
Totals
2.59
3.37
2.31
2.78
Threats
Weak USD
Increase in steel and
resin pricing
Increasing gasoline
prices
Stricter CO2 emission
standards
Increasing mortgage
rates
EFE Matrix
Internal Assessment
Stock performance
Financial Highlights
Income Statement
Balance Sheet
Cash Flow Statement
Ratios
Weaknesses
IFE Matrix
Key Internal Factors
Internal Strengths
Strong and globally positioned brand names
Large employee base with highly educated engineers and good R&D
department
One of the largest automotive manufacturer (along with a long
history)
1285% increase in net cash
Huge increase in total equity
Internal Weaknesses
A lot of time spent to actually put the product on the market
Recording continuous losses (net income) from 2006
Low quality of new products (recalls - causing losing customers)
Bad management of the company
EPS very bad - in negative numbers (unattractive for the investors)
Totals
Weights Rating
0.0 to 1, 2, 3 or
1.0
4
3 or 4
0.13
4
Weighted
Score
0.52
0.09
0.27
0.06
0.09
0.11
3
3
4
0.18
0.27
0.44
2
1
1
2
1
0.2
0.12
0.12
0.16
0.1
2.38
1 or 2
0.1
0.12
0.12
0.08
0.1
1
Strategic Formulation
SWOT Matrix
Strengths S
1.Strong globally positioned brand names
2.Large employee base with highly educated
engineers and good R&D department
3.One of the largest automotive manufacturer
(along with a long history)
4.1285% increase in net cash
5.Huge increase in total equity
Weaknesses W
1.A lot of time spent to actually put the product
on the market
2.Recording continuous losses (net income)
from 2006
3.Low quality of new products (recalls - causing
losing customers)
4.Lack of management of the company
5.EPS very bad - in negative numbers
(unattractive for the investors)
Opportunities O
1. Consumers demand hybrid and fuel efficient
vehicles
2.Increase in consumer spending trends
3.Consumers demand more innovative vehicles
4.Global expansion
5.Industry experiences slow and steady growth
SO
1.Developing new vehicles on alternative
fuels (S1, S2, S4, O1, O3. O5)
2.Offer new innovative products increase
market share - motorbikes (S1, S2, S3, O2,
O3, O5)
3.Concentrate on making the best fuel
efficient cars (S1, S2, S3, S4, O1, O4, O5)
WO
1.Relocate the production to cheaper country
with lower taxes (W2, W4, O4, O5)
Threats T
1.Weak USD
2.Increase in steel and resin pricing
3.Increasing gasoline prices
4.Stricter CO2 emission standards
5.Increasing mortgage rates
ST
1.Build eco-friendly products from
alternative materials (S2, S3, S4, T2, T3,
T4)
2.Produce more cars for foreign market
(S1, S2, S4, T1, T4)
WT
1.Merge with competitors (W1, W2, W5, T2,
T3, T5)
2.Manufacture only parts for automobiles
(W1, W2, T1, T2)
SPACE Matrix
FS
Conservative
Aggressive
+6
+5
+4
+3
+2
+1
IS
-6
-5
-4
-3
-2
-1
-1
+1
+2 +3
+4
+5
+6
-2
-3
-4
Defensive
-5
-6
Competitive
28
BCG Matrix
Revenu
es
%
Revenue
s
Profit
%
Profit
%
Market
Share
%
Growth
Rate
NA
69365
45%
-4161
61%
-0.1
SA
7585
5%
1172
30%
+33
Europe
36330
24%
744
81%
-3
PAG
33067
21%
-1872
+10
Asia
8032
5%
206
38%
+3
Total
154379
100%
-3911
BCG Matrix
High +30
Medium 0
Low -3
Industry sales growth
rate
High 1.0
APA
NA
IE Matrix
Hold and
Maintain
31
QuadrantI
Weak
Competitive
Position
Strong
Competitive
Position
QuadrantIII
QuadrantIV
SlowMarketGrowth
Matrix Evaluation
Alternative Strategies
BCG
IE
SPACE
GRAND
COUNT
Forward Integration
Backward Integration
Horizontal Integration
Market Penetration
Market Development
Product Development
Concentric Diversification
Conglomerate Diversification
Horizontal Diversification
Joint Venture
Retrenchment
Divestiture
Liquidation
Possible Strategies
Developing new vehicles on
alternative fuels (S1, S2, S4, O1, O3,
O5) SO1
Offer new innovative products
increase market share (S1, S2, S3, O2,
O3, O5) SO2
Concentrate on making the best fuel
efficient cars (S1, S2, S3, S4, O1, O4,
O5) SO3
QSPM
Recommendation
Manufacturing of new small fuelefficient vehicle $ 7,000,000,000
Entering the Latin American and
Asian market with hybrids $
20,000,000,000
Implementation of electric car in the
US market $ 13,000,000,000
Total Cost = $ 40,000,000,000
Implementation
EPS/EBIT
EPS/EBIT
*data in $ billion
Common stock financing
Debt financing
Recession
Normal
Boom
Recessio
n
Normal
Boom
EBIT
10
20
40
10
20
40
Interes
t
1.5
1.5
1.5
EBIT
10
20
40
8.5
18.5
38.5
Taxes
EAT
10
20
40
8.5
18.5
38.5
#shar
es
2.695
2.695
2.695
2.695
2.695
2.695
EPS
3.71
7.42
14.84
3.15
6.86
14.28
Other Issues
Laws and regulations in foreign
countries
Regain lost trust in the Fords brand
Evaluation
Industry Update
Sources
Ford Motor Company Annual Report
2007
General Motors Annual Report 2007
http://www.ford.com/about-ford/investorrelations
Datamonitor
Global Automobile Industry manufacturer
2006
Questions???