Republic of the Philippines

NUEVA VIZCAYA STATE UNIVERSITY

Bayombong, Nueva Vizcaya

Ford Motor Company, 2015

“Go Further”

Prepared for:
Mrs. Cherrie Prelle D. Pascual

Prepared by:
Antonino, Kristine Joy M.
Burlaos, Lester Josh M.
De Gracia, Ana May
Lizardo, Jennica Faye G.
Oligo, Arlyn T.
(2022-2023)
 STRATEGIC AUDIT OF A CORPORATION
I. Current Situation
A. Current Performance
(SUMMARY) -
 Global market share grew to 7.6 percent.
 Our net income attributable to Ford Motor Company was $7.4 billion or $1.84 per share
of Common and Class B Stock in 2015, an increase of $6.1 billion or $1.53 per share
from 2014.
 Ford has a 63.4B Market Capital.
 Best company quarterly profit since 2000.
B. Strategic Posture
1. Mission
 Early developed: “One Team, One Plan, One Goal”
 Updated in 2015: “One Ford, One Team, One Plan, One Goal”
2. Objectives
 Align employee efforts toward a common definition of success and optimize their
collective strengths worldwide.
 Work together as one team to achieve automotive leadership, which is measured
by the satisfaction of our customers, employees, and essential business partners,
such as our dealers, investors, suppliers, unions/councils, and communities.
 Aggressively restructure to operate profitably at the current demand and changing
model mix.
 Create an exciting and viable company delivering profitable growth for all.
3. Strategies
 Ford has reduced its energy use, emissions, and waste in its factories and its
vehicles.
 Includes Blind Spot Information Systems, lane alerts and rear parking assistance
for safety system.
 More vehicles t
 o launched (2014)
 Increasing capacity by opening new plants
 Successfully sold over 85,000 Tesla, as attempt to produce from last year 2013
 Launch new products.
 Plans to introduce a 150% new product turnover (2018)
 Aggressively launching new redesigned products.

4. Policies

II. Corporate Governance
A. Board of Directors
 Only one EC & Charmain of the Board.
 Fundamental responsibilities – reasonable market value.
 Dedicatedly involved in environmental sustainability.
B. Top Management
 Newly positioned President & CEO
 12 internal head officers from different offices with 4 sub-officers under COO
 Hired new department officer (CAO)
III. External environment:
Opportunities and Threats (SWOT)
A. Natural Environment
 Climate change. (O)
 Low-carbon trend. (O)
 Alternative fuels. (O)
B. Societal Environment
A. Economic
 Fuel prices may threat company’s sales since fuel prices are influencing the
types of vehicles consumers may purchase. (T)
 Gas price pressure and increasing in interest rate will push automotive
revenues down in the region. (T)
 High growth rate of developing markets. (T)
B. Technological
 Many automakers have introduced their numerous extra features which are
one of their profitable sources. (T)
C. Political – legal
 Recalls and Fines. (T)
 Environmental protection regulation. (O)
 Increasing safety regulations. (O)
 Increasing intellectual property laws. (O)
D. Sociocultural
 Increasing demand for hybrid and electric automobiles. (O)
 Moderate attitude about customer service. (O)
 Increasing wealth gap. (T)
C. Task Environment
 Entrants of New High-Tech Vehicles among competitors– (T)
 High Rivalry Among Competing Firms - Rapid changing of customer’s
demand. (T)
 Low Potential Entry of New Competitors – The industry is massive and
mature. (O)
 Moderate Potential Development of Substitute Products. Gas price rapidly
changing. (T)
 Low Bargaining Power of Suppliers- Lower power due to many existing
suppliers. (T)
 Moderate to High Bargaining Power of Consumers. Sales are expecting to
grow, increasing buying power, & low buyer threat due to many customers.
(O)

IV. Internal Environment:

Strengths and Weaknesses (SWOT)
A. Corporate Structure
 Very Complex structure mechanistic. (W)
 Rigid departmentalization. (W)
 Low span of control. (W)
 High Centralization. (W)
B. Corporate Culture
 The culture has changed dramatically. (S)
 Poor reputation of America Auto Brands compared to European and Japanese
competitors. (S)
 C. Corporate Resources
1. Marketing
 By providing many types of vehicles, Ford is able to meet and fulfill the needs
of their customers who came from different kind of interest. (S)
 Higher costs compared to Toyota. (W)
2. Finance
 Global market share grew to 7.6% after-tax-earnings per share off 47 cents, up
7 cents from a year ago. (S)
 Net income of $1.9 billion, up $574 million or 44 percent from a year
ago. (S)
 Ford derives approximately 60% of its revenues from the U.S, Canada, and
Mexico. (W)
3. Research and Development
 Ford improve and strengthen their research and development to ensure that
they made an effort to improve the performance of their products. (S)
 Ford also made an advancement of technology. (S)
 Ford takes a longer period to come out with their innovation for the next
model car. The gap created by Ford provides a chance for competitors to offer
better technologies in their product. (W)
 F150 pickup truck – most popular truck. (S)
4. Operations and Logistics
 Ford Motor Company also diverse in its operations and distributions. (S)
 Ford have a manufacturing presence across the world. (S)
5. Human Resources Management (HRM)
 Labor expenses were reduced after labor unions agreed to concessions. (S)
6. Information technology (IT)
 Ford’s product now includes Blind Spot Information System, lane alerts, and
rear parking assistance. (S)
V. Analysis of Strategic Factors (SWOT)
A. Situational Analysis
1. Strengths
a. Labor expenses were reduced.
b. Diverse Offering
c. Advancement of technology.
d. Manufacturing presence across the world.
e. Culture has changed dramatically.
f. Blind Spot Information System
g. Increased Net Income
2. Weaknesses
a. Higher costs compared to competitors.
b. Rigid departmentalization.
c. Slow Innovation Process.
3. Opportunities
a. Low-carbon trend.
b. Alternative fuels.
c. Increasing intellectual property laws.
d. Demand for Hybrid and Electric Automobiles
e. High growth rate of developing markets.
f. Increasing buying power.
4. Threats
a. Fuel prices
 b. Increasing wealth gap.
c. High-tech Vehicles.
d. Rapid changing of customer’s demand.
B. Review of Mission and Objectives

VI. Strategic Alternatives and Recommended Strategy

A. Strategic Alternatives
B. Recommended Strategies


VII. Implementation
A. What Kinds of Programs (for Example, Restructuring the Corporation or Instituting
TQM) Should Be Developed to Implement the Recommended Strategy?
B. Are the Programs Financially Feasible? Can Pro Forma Budgets Be Developed and
Agreed On? Are Priorities and Timetables Appropriate to Individual Programs?
C. Will New Standard Operating Procedures Need to Be Developed?

VIII. Evaluation and Control

A. Is the Current Information System Capable of Providing Sufficient Feedback on
Implementation Activities and Performance? Can It Measure Strategic Factors?
B. Are Adequate Control Measure I Place to Ensure Conformance with the Recommended
Strategic Plan?

EXHIBIT 1
Opportunities WEIGH RATE WEIGHTED COMMENTS
T SCORE
Low-carbon trend. 0.10 3 0.30 Environmental Conservation
Alternative fuels. 0.10 3 0.30 Less consumption of fuels
Increasing intellectual 0.10 3 0.30 Protection on their company and
property laws. properties
Demand for Hybrid and 0.10 3 0.30 New model to release and increase in
Electric Automobiles demand
Increasing buying power. 0.10 3 0.30 More revenues to generate
Threats
Fuel prices 0.08 2 0.16 Less customer to avail
Increasing wealth gap. 0.10 3 0.30 Competition on capital
High-tech Vehicles. 0.09 2 0.18 New and improve models from
different competitors
Rapid changing of 0.12 4 0.48 New and better models from other
customer’s demand competitors
High growth rate of 0.11 4 0.44 New Competitors
developing markets.
Total scores 1 3.06
EXHIBIT 3
Strategic Factors Weight Rating Weighted Short Intermediate Long Comments
Score

Total Scores

EXHIBIT 2
Internal Factors Weight Rating Weighted Comments
Score
Strengths
Labor Expenses were Reduced 0.09 3 0.27 Boost Productivity and Enhance Profits
Diverse Offering 0.09 3 0.27 Variety of new models to increase sales offered
Advancement of Technology 0.10 3 0.30 High Quality
Multinational Corporation 0.10 3 0.30 Manufacturing Presence Across the World
Culture has Changed Dramatically 0.10 3 0.30 More effective management
Blind Spot Information System 0.10 3 0.30 Upgraded Version
Increased Net Income 0.10 3 0.30 Effectiveness of Strategies
Weaknesses
Higher Costs Compared to Competitors 0.11 4 0.44 Low Capital
Rigid Departmentalization 0.08 2 0.16 Not Flexible
Slow Innovation Process 0.13 4 0.52 Longer production, Lower
Total Scores 1 3.16