Birla Institute of Technology & Science, Pilani Second Semester (2012-2013)
A Report on Ford Motor Company
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Introduction
Ford Motor Company is an American multinational automaker headquartered at Deaborn, Michigan that manufactures or distributes automobiles across six continents. It was founded by Henry Ford on June 16, 1903.The first model introduced to the market was the T-model in 1908.It is listed in the New York Stock Exchange and is controlled by the Ford family, although they have minority ownership. Ford is the second largest US based automaker and the fifth largest in the world based on 2010 vehicle sales. [2] With about 171,000 employees and 65 plants worldwide, the company’s automotive brands include Ford and Lincoln
Product and Services
Ford Motor Company sells a broad range of automobiles under the Ford marque worldwide, and an additional range of luxury automobiles under the Lincoln marque in the US.
Ford has produced trucks since 1908.From the late 1940’s to 1970’s Ford’s F-series were used as the base of light trucks for the North American market.
Ford manufactured complete buses in the company's early history, but today the role of the company has changed to that of a second stage manufacturer
Ford also provides financial services through Ford Motor Credit Company.
Ford’s FoMoCo division sells aftermarket parts under the Motorcraft brand name.
Market and Market Share
Ford Motor market spreads across North America, Europe, Asia Pacific, South America, Africa and Middle East.
Ford’s sales in the U.S. were up 14.3 percent in 2011 compared to 2010. Ford’s market share for 2011 was 16.5 percent, up 0.1 percentage points over 2010 and 2.3 points over 2008.
Market share data for Ford Motors as of 2011 are as follows:
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Country/Continent
Share
US
16.5 %
Europe
8.3 %
Asia Pacific and Africa
2.7 %
South America
9.3 %
Sales and Revenue
Ford Motor Company delivered strong results in 2012 – achieving 14 straight quarters of operating profit and our fourth year in a row of positive net income.
The company reported revenue of about 6.3 billion USD of pre-tax profit from the automotive sector. (Nearly 72%)
As of year-end 2012, Ford Credit was financing about 5,200 Ford and Lincoln dealers and more than 3.6 million retail customers around the world. It reported revenue of 2.4 billion USD of pre-tax profit. (Nearly 28%)
Revenue grew +12.7% YoY to 136.3 billion USD. (From 2010 to 2011).
Competitors
Brands like General Motors, Chrysler, Toyota and Honda are giving stiff competition to Ford Motors all over the world.
With the evolution of hybrid engines, Ford is facing a threat in terms of decreasing market share. But recent strategies have been extremely helpful in regaining the lost share especially in the United States.
Organizational Culture
Values of an organization define its character and personality. Ford supports a participative culture and an open communication system. It is being characterized by a strong culture with the key values being intensely held and widely shared.Throughout the history of Ford Motor Company, inclusion has been as much a part of the company's success as the great products that the company’s diverse employee base has created.
People Orientation - Ford exhibits a culture that is adaptive in nature and managers in the company show care for their clients, stock holders and employees. Employees at Ford are treated as a very important asset to the company and their contribution is valued and always encouraged. Opinions of employees at Ford Motors are always listened to through their participative model and the organization offers them chance to air their opinions and have them weighed for chances of consideration. The company focuses on the development of future leaders and it runs a leadership development program that reaches an estimated 2000 managers round the globe.
Aggressiveness/competitiveness- The employee involvement plan put to work at Ford Motors makes a significant impact on the competitive nature of employees. This happens through the identification and promotion of factors that may be motivational to the employees, like sending top performers for better training to hone their skills. This itself make the culture completive enough to best fit according to the goals of the company.
Team Orientation – through one ford approach the company emphasizes the importance of working together as one team to achieve automotive leadership. Even though there are many types of employees and work arrangements all are made to work with each other the common goal of making ford a leader in automobile industry, be it in any part of the world.
Outcome Orientation- Company has always tried to focus on quality, even if it is at the cost of profits sometimes.
Attention to detail- Being a leading manufacturer, precision and reliability are the hallmark of ford’s products from its employees.