SWOT Analysis Ford
January 9, 2012
Daniela Schultz, MBA
SWOT Analysis Ford
Located in Dearborn, Michigan, a suburb of Detroit, Ford Motor Company is an American automaker and the world's fifth largest based on worldwide vehicle sales. The company was incorporated on June 16, 1903 and founded by 40 years old Henry Ford. Among the few companies to survive the Great Depression, the company would also become one of the largest and most profitable companies in the world. Additionally, the company is the largest family-controlled company in the world, for over 100 years the Ford Motor Company has been in continuous family control.
In 1899, Henry Ford founded the ...view middle of the document...
As a result, Ford badly lost market share to the competition especially the Japanese and European companies that otherwise had a much wiser approach. Ford survived probably because of their quality that maintained the respect in consumer’s mind about the reliability, performance and quality of the products, and unique innovations.
Irrespective of the major financial hits that they suffered intermittently and While the company has been surviving for quite some time, their real testing times have emerged now when the entire world is reeling under a severe financial crisis.
In March 2008 amidst a total loss of USD 2 Billion in the two years before the deal thus expecting to break even, Ford Motors sold the British motor companies, Jaguar & Land Rover to Tata Motors of India for USD 2 billion. [http://www.nytimes.com/2008/03/26/business/worldbusiness/26cnd-auto.html; Wright, Natisha and Frailing, Kyle et al. 2005] Miel van Blitterswijk & Rosen Karadzhov 7
As a mutual fund manager, I need to decide whether to invest in Ford Motor Company. I will conduct a business analysis in the remaining weeks based on the company. I will then conduct a SWOT analysis for the company and based on that information that I have gained from this analysis I will determine which parts of the SWOT analysis are most relevant to my decision of whether or not to invest in this company?
Ford Motor Strengths:
Innovations in Technology and Procedures like virtual assembly line, single supplier model, centralized global risk management framework, etc. Commitment to environment protection by developing low emissions technologies. Repeatability of technologies – like same spares can be used in multiple models in what they termed as virtual assembly lines. Excellent engineering and production workforce possessing global competencies as well as capabilities of localization of products in respective countries. Excellent knowledge and analytics of the global markets that helped them to grow into a truly global company. Capability to reach out to developing countries like Indonesia, India, etc. and adjust to their local demographic conditions. Excellent Brand Equity with legacy strengths and high levels of dignity of Ford brand heritage at the global level. Proud owners of some of the best car models of the world. Excellent leadership and management strengths. Strong entrepreneurship at global level as well as at local markets level. Excellent marketing abilities in countries that are still out of reach of many competitors of Ford Motor Company. Miel van Blitterswijk & Rosen Karadzhov 32. Excellent network of suppliers and supply chain management. Excellent management of global workforce with less unionization except for UK where shop floor militancy led to closure of Dagenham manufacturing plant.
Ford Motor Weaknesses: ...