Ford_Environmental_Scan

Environmental Scan The Ford Motor Company has been a force in the automotive industry since the early 1900’s. Ford has been a company that has endured trials and tribulations and has even recently been able to prevail in our economic downfall. An analysis of their standards, views, missions and values, we can understand how it is that they have remained a strong force within the automotive industry. Mission, Vision, and Values Ford takes a unifying approach in their business stance when concerning their mission. Their mission is to work as “One Team,” in which “People working together as a lean, global enterprise for automotive leadership, as measured by: Customers, Employees, Dealer, Investors, Supplier, Union/Council, and Community Satisfaction,” are all one (Ford.com). Unifying the human elements that create a network become a means for measurement of presence and success. They also incorporate a “One Plan” approach addressing Ford’s approach to their products. • Aggressively restructure to operate profitably at the current demand and changing model mix • Accelerate development of new products our customers want and value • Finance our plan and improve our balance sheet • Work together effectively as one team In having “One Goal,” Ford is “delivering profitable growth for all,” meant to tie all the elements that Ford believes in together. Their mission focuses on two key words, “aggressively,” and “accelerate,” implying a progressive approach towards a profitable goal that pushes boundaries beyond traditional expectations (Ford.com). Broad Environmental Forces The Ford Motor Company has faced many obstacles since its inception however, has always overcome these issues. Operating in a more environmentally conscious market, Ford has had to adapt and change their product lineup by creating vehicles that are better suited for today’s environment. While companies such as Toyota began rolling out economically and environmentally friendly vehicles, Ford responded by developing hybrid technology without losing the Ford feeling. These vehicles are the new “American standard by maintaining a Ford feeling without minimizing quality or performance. Ford continues to develop a lineup that pushes technology without increasing price or diminishing the quality and image. Ford does have a global presence in three continents (Ford.com). These plants are positioned to help build marketing and distribution channels in an effort to increase their global presence. Strengths 1. 8th on the Fortune 500 list 2. Defined goals 3. Industry leaders in technology 4. Global positioning 5. Domestic positioning 6. Strong revenue growth 7. Alternative fuel sources 8. Philanthropic efforts Weaknesses 1. Image as bulky inefficient vehicles 2. Economic problems lead to profit decrease 3. Vehicle recalls 4. Not a strong enough presence globally Opportunities 1. Environmentally friendly vehicles 2. Investing in alternative fuels and power supplies 3. Web based/Internet strategy 4. Philanthropic efforts to raise perception Threats 1. Many competitors 2. Internal conflicts 3. Inability to adapt ahead of others with alternative fuels 4. World wide economies Analysis In order for Ford to continue to push forward they need to fully utilize the Porter Five Forces Model in addition to the SWOT analysis and tie in the factors that cause problems with weaknesses and strengths with opportunities so that they can turn their downfalls into successes. Thus far Ford has managed to maintain itself as the top rated automotive company in the US for the 2010 year according to Fortune 500 (CNN.com). Their mission and vision enable Ford to work as “One Ford” (Ford.com). This shift focuses on the vehicles that Americans need into vehicles that they also want. In addition, Ford can use these charts to realize where they have another opportunity to provide better financing opportunities so that they can help the consumer that in turn helps their profits increase. Conclusion Realizing strengths and weaknesses and how a corporation fits into their market are essential to realizing a firm’s capability to survive and exceed. These strengths can be implemented by strategically placing them within the mission statement and vision so that the firm as a whole has forward momentum. It is this momentum that pushes success in critical times. Reference CNN Money. (2010). Fortune 500 2010: Fortune 1000 Companies 1-100. Retrieved from http://money.cnn.com/magazines/fortune/fortune500/2010/full_list Ford Motor Company. (2010). One Ford Mission. Retrieved from http://www.ford.com/about-ford/company-information/one-ford