Strategic Plan Alignment: Ford Motor CompanyStrategic Plan: Ford Motor Co.
Executive SummaryFord Motor Company (Ford) has been a leader in the auto industry, however, over the past few decades has continued to lose market share to foreign competition. The current weak U.S. economy combined with rising fuel prices and increased political pressures regarding global warming, presents several challenges to Ford Co. and the entire auto industry as we can see in appendix "A". These current challenges provide exciting opportunities for the auto company who must reduce cost, get fresh capital, and quickly develop and produce, new efficient and economic autos, and alternative fueled vehicles. The global auto industry will continue to grow with 80% of the global auto industry's growth from now until 2013 is expected to come from emerging markets. However, for Ford to succeed will need to address several internal issues regarding legacy costs, unions in USA, and the development of a wide range of new vehicles that consumers consider the new "must have" vehicles instead of the large trucks and SUVs.
Looking to the future Ford will have a global presence in these critical emerging markets like China and India, and have the knowledge and expertise in efficient and alternative vehicle technologies required to move the company forward. For Ford to achieve the vision of being synonymous with alternative vehicles (low fuel consumption, fuel celled hybrid, ethanol, and electric / battery). When consumers think of the innovative technology in the auto industry they will think of Ford for this to happen Ford can no longer be a quick follower, but must be an industry leader in technological advances in the auto industry. Ford must offer a variety of alternative vehicles that meet consumer demands and government regulations. Ford has significant fixed costs and large capital investments are needed. Cash flow is the lifeblood of any business and should be considered in every decision which could impact the company expenses. By 2009, Ford expects to reduce structural cost as a percent of revenue by 40%, and by 2012 by 80%; these would be considered benchmark levels of cost.
The reduction will be invested in new plants in growing markets; fund the research required, development, and production of alternative vehicles. The global auto industry market is growing, and the opportunity for Ford to recapture market share lost in the past few decades is there for the taking. Ford can win, and to do so needs to expedite change to meet the challenges and seize opportunities.
Company BackgroundFord Motor Company (NYSE: F), was founded by Henry Ford I n 1903 and become a corporation in 1919, it is the second largest manufacturer of cars worldwide. Ford Corporation includes Ford North America, Ford South America, Ford Europe, Premier Automotive Group, Ford Asia Pacific and Africa/Mazda segments. Volvo, Mercury and Lincoln motors. At the beginning of 2007 Ford sold Aston Martin division and in June of 2008 Ford sold to Tata motors its Jaguar, and Land Rover divisions. Ford needs a sense of urgency regarding revising a strategic plan that incorporates the next generation of vehicles, reduces cost, and expands in the world growing markets. In today's global economy and highly competitive auto industry Ford has no time to procrastinate. Ford has just too much at risk in not planning a new strategy and become an industry leader in alternative fuel technology.
Ford New VisionFor Ford Motor Company is to become the automotive industry leader in, fuel efficient economic vehicles, alternative fueled vehicles and providing superior quality products that global consumers call to mind when they think of quality and innovation, In other words, the car of the future.
New Mission Statement:The new proposed mission statement will be as follows: Ford Co will become an industry leader, not a follower. To regain lost market share that was lost to foreign...
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Appendix "A"Changes in Market Share from 2004 to 2007Cars ' prices keep going down for several years as a result of strong competition and shrinking economy
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