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Name Jithin Joice

Madonna ID 228834

Subject Business Policy
Subject Code: MGT_4950_WB_58_00_2014_30

Date October 2014

Ford Motor Company.

Case Analysis






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Ford Motor Company.

Executive Summary

In 1903 with $28,000 in cash, Henry Ford started the Ford Motor Company, whose
automobiles changed how the world moved. The Ford Motor Company is an American
multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit. The largest
family-controlled company in the world, the Ford Motor Company has been in continuous family
control for over 110 years. Ford now encompasses two brands: Ford and Lincoln. The company
sells automobiles and commercial vehicles under the Ford brand and luxury cars under the
Lincoln brand. Ford once owned 5 other luxury brands; they were Volvo, Land Rover, Jaguar,
Aston Martin and Mercury. But over time those brands were sold to other companies and
Mercury was discontinued.
The Companys industry and market share measures focus on 19 markets in Europe: Austria,
Belgium, Britain, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, and Switzerland. Ford
Europe's wholesales are more inclusive, tracking Ford-brand vehicles in every market in the
region, including wholesales in Turkey and Russia from its unconsolidated affiliates Ford Otosan
and FordSollers. Ford Asia Pacific Africa industry sales and market share data focus on its 12
major markets in the region; wholesales are more inclusive, tracking every market in the region.
Of the markets the Company tracks in this region, ASEAN, Australia, China, India, and South
Africa are its principal markets.
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The Company sells vehicles to its dealerships for sale to fleet customers, including
commercial fleet customers, daily rental car companies, and governments. Ford also sells parts
and accessories, primarily to its dealerships (which in turn sells these products to retail
customers) and to authorized parts distributors (which in turn primarily sells these products to
retailers). Through its dealerships, it also offers extended service contracts to retail customers.

Brief Profile:

Ford Motor Company was founded in 1903 by Henry Ford in Detroit, MI. Not only did Ford
revolutionize the development of the automobile as a product, he is also the visionary behind the
idea of mass production. Ford's ability to make automobiles affordable for the masses is cited as
a driving force behind both the automobile industry and the creation of a middle class in
America.
Ford Motor Company (Ford), incorporated on July 9, 1919, is a producer of automobiles.
The Company together with its subsidiaries is engaged in other businesses, including financing
vehicles. The Company operates in two segments: Automotive and Financial Services.
Automotive includes Ford North America, Ford South America, Ford Europe, and Ford Asia
Pacific Africa region. Financial services include Ford Motor Credit Company and Other
Financial Service. The Company manufactures or distributes automobiles across six continents.
Its automotive brands include Ford and Lincoln. Other Financial Services includes a range of
businesses, including holding companies and real estate. Effective September 26, 2013, Ford
Motor Company acquired Livio, a developer of software.
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Ford introduced methods for large-scale manufacturing of cars and large-scale
management of an industrial workforce using elaborately engineered manufacturing sequences
typified by moving assembly lines; by 1914 these methods were known around the world as
Fordism. Ford's former UK subsidiaries Jaguar and Land Rover, acquired in 1989 and 2000
respectively, were sold to Tata Motors in March 2008. Ford owned the Swedish automaker
Volvo from 1999 to 2010. In 2011, Ford discontinued the Mercury brand, under which it had
marketed entry-level luxury cars in the United States, Canada, Mexico, and the Middle East
since 1938.
Ford is the second-largest U.S.-based automaker and the fifth-largest in the world based on
2010 vehicle sales. At the end of 2010, Ford was the fifth largest automaker in Europe. Ford is
the eighth-ranked overall American-based company in the 2010 Fortune 500 list, based on global
revenues in 2009 of $118.3 billion. In 2008, Ford produced 5.532 million automobiles and
employed about 213,000 employees at around 90 plants and facilities worldwide.

History;
Ford Motor Company is one of the greatest automobile manufacturers of all time. They
started under Henry Ford in Detroit, Michigan. Ford had a skill for craftsmanship when he built
an experimental car in 1896. It was a twin cylinder engine with potential of 20 mph. In 1899 he
left his job in order to organize the Detroit Automobile Company. Ford's first production was in
1903, the Model A, with an under the floor engine selling for $850. In the first season it sold
1,708 cars.
Thereafter, Ford became increasing interested in speed. He built an experimental racing
machine called the 999, which reached 91.4 mph in 1904. He also produced the Model C the
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same year only later introducing the Model B for $2000. These models were improved in 1905
with the Model K that sold for $2500. In 1906 Ford introduced the Model N for $500 destroying
Oldsmobile's business, while only leading to the introduction of the famous Model T in 1909. In
1930, Ford introduced the Model A, the first car with safety glass in the windshield. Ford
launched the first low priced V8 engine powered car in 1932.

After World War II production slowed down until the entrance of the 1949 line. At this
time power units were new along with the automatic transmission in 1950. Great automobiles
were manufactured in the coming years. The sporty Ford Thunderbird was introduced with 5.1
litres and capabilities of 113 mph. In 1958 it became a convertible with five seats and a
strengthened structure. Major restyling occurred in the late 1950's with such automobiles as the
Falcon, a compact car, with the help of General Motors and Chrysler.
Ford offered the Lifeguard safety package from 1956, which included such innovations
as a standard deep-dish steering wheel, optional front, and, for the first time in a car, rear
seatbelts, and an optional padded dash. Ford introduced child-proof door locks into its products
in 1957, and in the same year offered the first retractable hardtop on a mass-produced six-seater
car. In 1965 Ford introduced the seat belt reminder light.
During the 1960's competition increased and Ford had to become innovative in order to
remain one of the top manufacturers. They put their minds together to create the Ford Mustang in
1964, a compact semi GT with four seats, at a price of $2480. The automobile had a 4.7 litre V8
engine with speeds exceeding 110 mph. The car was a great success and remained so until the
present day selling over 500,000 in the first year and a half on the market.
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During the coming years Ford realized its potential. They have created some great cars
including the Thunderbird, Model T, Fairlaine, Galaxie, Falcon, and Mustang. They have also
increased their production well into the 1980's and further with the offerings of four wheel drive
pickup trucks and all terrain vehicles such as the Bronco, Jeep, F series, and Ranger. They
became increasingly aware of needs for change such as colors, convertibles, hardtops, and
number of doors. With increased production, innovative styles, low prices, and customer
satisfaction Ford Motor Company has become a worldwide leader in the manufacturing of
automobiles.


Fords Statement of Mission, Values and Guiding Principles
Ford Motor Company is a worldwide leader in automotive and automotive-related products
and services as well as in newer industries such as aerospace, communications and financial
services. Our mission is to improve continually our products and services to meet our customers
needs, allowing us to prosper as a business and to provide a reasonable return for our
stockholders, the owners of our business.

One Ford Mission and Vision
ONE Ford expands on the companys four-point business plan for achieving success globally. It
encourages focus, teamwork and a single global approach, aligning employee efforts toward a
common definition of success and optimizing their collective strengths worldwide. The elements
of ONE Ford are:
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One Team
People working together as a lean, global enterprise for automotive leadership, as measured by:
Customer, Employee, Dealer, Investor, Supplier, Union/Council, and
Community Satisfaction
One Plan
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
One Goal
An exciting viable Ford delivering profitable growth for all.
Values
How do the company accomplish the mission is as important as the mission itself.
Fundamental to success for the company are these basic values:
People: Our people are the source of our strength. They provide our corporate
intelligence and determine our reputation and vitality. Involvement and teamwork are our
core human values.
Products: Our products are the end result of our efforts, and they should be the best in
serving our customers worldwide. As our products are viewed, so are we viewed.
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Profits: Profits are the ultimate measure of how efficiently we provide customers with
the best products for their needs. Profits are required to survive and grow.

Guiding Principles
Quality comes first: To achieve customer satisfaction the quality of our products and
services must be our number one priority.
Customers are the focus of everything we do. Our work must be done with our
customers in mind, providing better products and services than our competition.
Continuous improvement is essential to our success. We must strive for excellence in
everything we do: in our products, in their safety and value, and in our services, our
human relations, our competitiveness and our profitability
Employee involvement is our way of life. We are a team. We must treat each other with
trust and respect.
Dealers and suppliers are our partners. The Company must maintain mutually beneficial
relationships with dealers, suppliers and our other business associates.
Integrity is never compromised. The conduct of our Company worldwide must be
pursued in a manner that is socially responsible and commands respect for its integrity
and for its positive contributions to society. Our doors are open to men and women alike
without discrimination and without regard to ethnic origin or personal beliefs.
Ref: http://retailindustry.about.com (mission statement)


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Developed Objectives and Guidance

Ford Motor (NYSE: F) outlined its 2020 vision, which includes plans to substantially increase its
global vehicle sales and automotive operating margin, and achieve more balanced geographic
profitability.

By 2020, Ford projects annual global sales to increase 45 to 55 percent to approximately 9.4
million. Its automotive operating margin is projected to improve to about 8 percent during the
same period, with a long-term target of 8 percent to 9 percent.

Our long-term plan underscores the commitment we have to our One Ford plan, while
accelerating our pace of progress, delivering product excellence and driving innovation in all
areas of our business, said Mark Fields, Fords president and CEO. We remain completely
focused on offering customers the freshest lineup of world-class vehicles to meet their needs.
Their target is to meet customer demand: Fords 2020 vision is driven by the companys
confidence in its global product plans. Those plans focus on delivering a full family of vehicles
that meet and exceed customer expectations in Fords four brand pillars quality, green, safe
and smart across the world.

The luxury brand Lincoln sales seen tripling as brand expands to China. The reinvention of
Lincoln as a world-class luxury brand continues in North America and China and will lead to
long-term sales growth and an increase in operating margin. By 2020, Lincoln targets a tripling
of vehicle sales to approximately 300,000 because of the brands debut in China and increased
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market coverage. Lincoln anticipates a long-term operating margin in line with leading luxury
brands.

Our Lincoln sales and profit margin targets are supported by our aggressive product investment
strategy and growth plans in China, said Kumar Galhotra, president of Lincoln. Our
opportunity is to attract luxury customers who are looking for new and personalized customer
experiences.


Ref:-
http://www.streetinsider.com/Corporate+News/Ford+Motor+(F)+Updates+on+Growth+Objectives,+Guidance+at+I
nvestor+Day/9868432.html
















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SWOT Matrix



Ford: Strengths, Weaknesses, Opportunities, Threats

Strengths:
Stability and Predictability:- Ford was founded in 1903 and has been producing cars for over 100
years. Ford will be still be a very strong and popular in the next few decades.
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Brand Recognition and Loyalty:- The iconic Ford logo is known by nearly every person in the
world, and many potential car buyers will choose Ford because of their long track record of
producing quality cars.
Strong position in US market:- Ford is the second largest automaker in US, the second largest
vehicle market in the world. Ford has great reputation in its home market and strong commercial
vehicle sales that are the most profitable Fords vehicles.
Global Presence:- Ford sells vehicles in 180 countries around the world, and also Ford had set up
several plants in China, which is now the largest vehicle market in the world. According to data
Ford announced in a month, in 2013, Ford sold out 935813 cars in China, which increased by
49% from 626616 in 2012 . The huge success in China and Asian-Pacific region gave Ford a
strong finical support.

Weaknesses:
Poor environmental record:- Ford has been criticized for poor efforts to decrease environment
pollution. Not only the huge volume of vehicles like Mustang but also Fords manufacturing
plants is rated as a huge air polluter. The US Environmental Protection Agency also linked Ford
to 42 toxic waste sites.
High cost structure:- Although One Ford initiative led to substantial cost reduction and sold
most pre-owned brands in recent years, Ford still has a high cost structure, compared to other
automobiles manufacturers. Fords costs are driven by its generous employee compensation and
pension plans. But Ford may benefit from this kind of policy in a long term.
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Loss money in Europe:- In 2012, Ford lost $1.75 billion in Europeand expects a $1.8 billion
annual loss in Europe 2013although the official data hasnt came out. Because of the rise of
German cars, Ford will be still struggle in Europe in the next few years.

Opportunities:
Positive attitude towards green vehicles:- Cars that are fuel inefficient and emit large quantities
of CO2 heavily pollute air and negatively affect the environment. The new Eco-boost series
engines are providing a better brand image for Ford. The new vehicles with new engine inside
are emitting much less CO2 and are more fuel-efficient. At the same time, Ford is developing a
variety of electric and hybrid cars, which is good news for the future.
Strategic partnerships:- Ford has great experience in creating strategic alliances and partnerships
with other automotive companies. Now Ford is developing a new 9/10 speed gearbox with GM,
new engines with Mazda, new hybrid cars with Toyota. Thats the great chance Ford could do
something with those.

Threats:
Intense Competition:- The automobile industry is one of the most competitive industries in the
world, and this fierce battling to provide the best product for the lowest price can lead to margin
contraction. In recent years German brands are leading the industry in the technology field. And
also they are having more profits than Ford and other US or Japanese brands.
Debt:- The company still has $13.1 billion left on their balance sheets from loans taken out
during the great recession in 2008. This could be the most terrible finical problem Ford has ever
met in the history.
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CPM

EFE Matrix






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Ratios









IFE Matrix



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BCG Matrix

IE Matrix



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SPACE Matrix

Grand Strategy Matrix

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QSPM


Financial Position

Ford Motor Company [NYSE: F] reported a 2014 first quarter pre-tax profit of $1.4 billion, its
19th consecutive profitable quarter. The company also affirmed its full-year pre-tax profit
guidance of $7 billion to $8 billion as it launches 23 new global vehicles, the most in a single
year in its history.

The companys pre-tax profit of $1.4 billion was $765 million lower than a year ago. After-tax
earnings per share were 25 cents, excluding special items, 16 cents below a year ago. Net income
for the quarter was $989 million, or 24 cents per share, a decline of $622 million, or 16 cents,
from a year ago. Net income included pre-tax special item charges of $122 million for
separation-related actions, primarily to support the European transformation plan.

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The companys results were adversely affected by several significant factors that were not
representative of its underlying business run rate. In North America, these included warranty
reserve increases for field service actions for prior models, including safety recalls and other
product campaigns, and weather-related costs. For South America, these included balance sheet
currency exchange effects.

In total, these factors reduced first quarter pre-tax profit by about $900 million, or the equivalent
of 17 cents per share. They also account for a year-over-year decline in company pre-tax profit
of $700 million. While similar factors could occur in the future, it is unusual for items like these
to occur in this magnitude in the same quarter.

Fords Automotive operating-related cash flow was $1.2 billion in the first quarter. The company
ended the first quarter with Automotive gross cash of $25.2 billion, exceeding debt by
$9.5 billion, and a strong liquidity position of $36.6 billion, an increase of $400 million from
year-end 2013.

Although not yet included in the companys total liquidity, Ford is in the process of amending
and extending its revolving credit facility. The facility is expected to grow to about $12 billion
from $10.7 billion after its anticipated completion at the end of this month. This will improve
further the companys strong liquidity position as it expands globally. Consistent with its capital
and funding strategy, Ford plans to allocate $2 billion of the facility to Ford Credit to support its
liquidity.

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Ford Motor Company [NYSE: F] reported a 2014 second quarter pre-tax profit of $2.6 billion,
its 20th consecutive profitable quarter and its best since second quarter 2011. The company also
affirmed its full-year pre-tax profit guidance of $7 billion to $8 billion as it continues to
implement its One Ford plan to deliver profitable growth for all.

The companys pre-tax profit of $2.6 billion, excluding special items, was $44 million higher
than a year ago. After-tax earnings per share were 40 cents, excluding special items, 5 cents
below a year ago. Net income for the quarter was $1.3 billion, or 32 cents per share, an increase
of $78 million, or 2 cents, from a year ago.

Net income included pre-tax special item charges of $481 million. These include the impairment
of Fords equity investment in the Ford Sollers joint venture in Russia, reflecting the present
outlook for the business, including a weaker ruble, lower industry volume and industry
segmentation changes that negatively impact sales of Focus. Also included in special item
charges are separation-related actions, primarily in Europe to support Fords transformation plan.
Second quarter wholesale volume and company revenue declined 1 percent year-over-year. The
company achieved higher market share in Asia Pacific, driven by record share in China.

Our One Ford plan continues to deliver, enabling us to reach our 20th consecutive quarter of
profitability, said Mark Fields, president and CEO. Moving forward, our commitment is to
build on this success by accelerating our pace of progress, while delivering product excellence
and driving innovation in all areas of our business.

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Fords Automotive operating-related cash flow was $2.6 billion in the second quarter, its
17thconsecutive quarter of positive performance. The company ended the second quarter with
Automotive gross cash of $25.8 billion, exceeding debt by $10.4 billion. The company
completed its corporate credit facility amendment and maturity extension in the second quarter.
The facility is now $12.2 billion, of which $2 billion has been allocated to Ford Credit. The
company ended the quarter with Automotive liquidity of $36.7 billion.

In the second quarter, Ford declared a dividend of $0.125 per share on the companys
outstanding Class B and common stock and paid about $500 million in dividends. This is the
same level of dividend paid in the first quarter, and a 25 percent increase from the level of
quarterly dividends paid in 2013. Ford is currently implementing the previously announced share
repurchase program for up to 116 million shares, or almost $2 billion, to offset an up to 3 percent
dilutive effect of potential convertible debt conversions and stock-based compensation.

Fords second quarter operating effective tax rate was 44 percent, reflecting calendarization
effects, including the impact of regional profits. Ford continues to expect its full-year operating
effective tax rate to be about 35 percent, assuming retroactive extension of U.S. research credit
legislation in the fourth quarter. Fords third quarter rate is expected to be about equal to the
second quarter rate.
Ref:- http://corporate.ford.com


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Income Statement showing income fluctuation (2009 to 2013)

Fiscal year is January-December. All values USD
millions.
2009 2010 2011 2012 2013
Sales/Revenue 118.37B 128.92B 136.27B 134.27B 146.92B

Cost of Goods Sold (COGS) incl. D&A 95B 99.36B 107.76B 109.61B 121.5B

COGS excluding D&A 86.98B 93.36B 102.37B 103.42B 114.99B

Depreciation & Amortization Expense 8.02B 6B 5.39B 6.19B 6.52B

Depreciation 8.02B 5.9B 5.38B 6.18B 6.5B

Amortization of Intangibles 0 97M 12M 10M 11M

Gross Income 23.37B 29.56B 28.51B 24.66B 25.42B

Gross Income Growth - 26.49% -3.55% -13.52% 3.08%

Ref:- http://www.marketwatch.com/investing/stock/f/financials









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Total Company Analysis of Financial Condition
Net income attributable to Ford Motor Company was $7.2 billion or $1.76 per share of Common
and Class B Stock in 2013, an improvement of $1.5 billion or $0.34 per share from 2012.

Total Company results are shown below:

2013 2012 2011
(Mils.) (Mils.) (Mils.)
Income
Pre-tax results (excl. special items) $ 8,569 $ 7,966 $ 8,763
Special items (1,568) (246) (82)
Pre-tax results (incl. special items) 7,001 7,720 8,681
(Provision for)/Benefit from income taxes 147 (2,056) 11,541
Net income 7,148 5,664 20,222
Less: Income/(Loss) attributable to noncontrolling
interests (7) (1) 9
Net income attributable to Ford $ 7,155 $ 5,665 $ 20,213




Net income includes certain items (special items) that have grouped into Personnel and
Dealer-Related Items and Other Items to provide useful information to investors about the
nature of the special items. The first category includes items related to Fords efforts to match
production capacity and cost structure to market demand and changing model mix and therefore
helps investors track amounts related to those activities. The second category includes items that
do not generally consider to be indicative of Fords ongoing operating activities, and therefore
allows investors analyzing companies pre-tax results to identify certain infrequent significant
items that they may wish to exclude when considering the trend of ongoing operating results.

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Ford allocate special items to a separate reconciling item, as opposed to allocating them
among the operating segments and Other Automotive, reflecting the fact that management
excludes these items from its review of operating segment results for purposes of measuring
segment profitability and allocating resources among the segments.

The following table details automotive sector pre-tax special items in each category:

2013 2012 2011
(Mils.) (Mils.) (Mils.)
Personnel and Dealer-Related Items
Separation-related actions (a) $ (856) $ (481) $ (176)
Mercury discontinuation/Other dealer actions (71) (151)

Total Personnel and Dealer-Related Items (856) (552) (327)
Other Items
U.S. pension lump-sum program (594) (250)

FCTA -- subsidiary liquidation (103) (4)
CFMA restructuring 625

Loss on sale of two component businesses (174)
AAI consolidation (b) 136

FordSollers gain 401
Belgium pension settlement (109)

Debt reduction actions (60)
Other (15) (27) 13

Total Other Items (712) 306 245
Total Special Items $ (1,568) $ (246) $ (82)

Not shown in the table above are tax benefits of $2.2 billion, $315 million, and $14.2 billion
for 2013, 2012, and 2011, respectively, that Ford consider to be special items. For 2013, these
included the impact of a favorable increase in deferred tax assets related to investments in
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European operations and the release of valuation allowances held against U.S. state and local
deferred tax assets. For 2011, these primarily consisted of the release of almost all of the
valuation allowance against net deferred tax assets in the United States, Canada, and Spain.

Discussion of Automotive sector, Financial Services sector, and total Company results of
operations below is on a pre-tax basis and excludes special items unless otherwise specifically
noted. References to records by Automotive segments North America, South America,
Europe, and Asia Pacific Africaare since at least 2000 when Ford began reporting results for
these segments.
The chart below shows 2013 pre-tax results by sector:














Total Company 2013 pre-tax profit of $8.6 billion was among the best in Fords history.
Compared with 2012, total Company pre-tax profit increased by $603 million, explained
by higher Automotive sector results.
Ref:- www.annualreport.ford.com


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FORD MOTOR COMPANY INCOME STATEMENT (2011,2012&2013)

Period Ending Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Total Revenue 146,917,000 133,559,000 135,605,000
Cost of Revenue 128,094,000 116,107,000 117,225,000
Gross Profit 18,823,000 17,452,000 18,380,000

Operating Expenses

Research Development - - -

Selling General and Administrative 13,176,000 11,494,000 10,884,000

Non Recurring 208,000 77,000 (36,000)

Others - - -

Total Operating Expenses - - -

Operating Income or Loss 5,439,000 5,881,000 7,532,000


Income from Continuing Operations


Total Other Income/Expenses Net 1,322,000 1,964,000 1,466,000


Earnings Before Interest And Taxes 7,830,000 8,433,000 9,498,000


Interest Expense 829,000 713,000 817,000


Income Before Tax 7,001,000 7,720,000 8,681,000


Income Tax Expense (147,000) 2,056,000 (11,541,000)


Minority Interest 7,000 1,000 (9,000)


Net Income From Continuing Ops 8,224,000 6,253,000 20,713,000


Non-recurring Events


Discontinued Operations - - -


Extraordinary Items - - -


Effect Of Accounting Changes - - -


Other Items - - -


Net Income 7,155,000 5,665,000 20,213,000
Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares 7,155,000 5,665,000 20,213,000





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FORD MOTOR COMPANY BALANCE SHEET (2011,2012&2013)



Period Ending Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Assets
Current Assets

Cash And Cash Equivalents 14,468,000 15,659,000 17,148,000

Short Term Investments 22,100,000 20,284,000 18,618,000

Net Receivables 87,309,000 81,869,000 78,541,000

Inventory 7,708,000 7,362,000 5,901,000

Other Current Assets - - -
Total Current Assets 131,585,000 125,174,000 120,208,000
Long Term Investments 3,679,000 3,246,000 2,936,000
Property Plant and Equipment 47,600,000 40,245,000 35,209,000
Goodwill - - -
Intangible Assets - - 100,000
Accumulated Amortization - - -
Other Assets 5,847,000 5,556,000 4,770,000
Deferred Long Term Asset Charges 13,315,000 15,185,000 15,125,000
Total Assets 202,026,000 189,406,000 178,348,000
Liabilities
Current Liabilities

Accounts Payable 19,531,000 19,308,000 63,093,000

Short/Current Long Term Debt - - -

Other Current Liabilities - - -
Total Current Liabilities 19,531,000 19,308,000 63,093,000
Long Term Debt 114,688,000 105,058,000 99,488,000
Other Liabilities 40,462,000 48,259,000 -
Deferred Long Term Liability Charges 598,000 470,000 696,000
Minority Interest 33,000 42,000 43,000
Negative Goodwill - - -
Total Liabilities 175,312,000 173,137,000 163,320,000

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Period Ending Dec 31,2013 Dec 31,2012 Dec 31,2011
Stockholders' Equity
Misc Stocks Options Warrants 331,000 322,000 -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 40,000 40,000 38,000
Retained Earnings 23,658,000 18,077,000 12,985,000
Treasury Stock (506,000) (292,000) (166,000)
Capital Surplus 21,422,000 20,976,000 20,905,000
Other Stockholder Equity (18,231,000) (22,854,000) (18,734,000)
Total Stockholder Equity 26,383,000 15,947,000 15,028,000
Net Tangible Assets 26,383,000 15,947,000 14,928,000







FORD MOTOR COMPANY CASH FLOW STATEMENT (2011,2012&2013)



Period Ending Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Net Income 7,155,000 5,665,000 20,213,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation - - -
Adjustments To Net Income - - -
Changes In Accounts Receivables - - -
Changes In Liabilities - - -
Changes In Inventories - - -
Changes In Other Operating Activities - - -
Total Cash Flow From Operating Activities 10,444,000 9,045,000 9,784,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures (6,597,000) (5,488,000) (4,293,000)
Investments 32,498,000 29,447,000 35,762,000
Other Cash flows from Investing Activities (45,632,000) (38,249,000) (34,510,000)
Total Cash Flows From Investing Activities (19,731,000) (14,290,000) (3,041,000)
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Period Ending Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid (1,574,000) (763,000) -
Sale Purchase of Stock (213,000) (125,000) -
Net Borrowings 9,663,000 4,434,000 (4,333,000)
Other Cash Flows from Financing Activities 257,000 159,000 92,000
Total Cash Flows From Financing Activities 8,133,000 3,705,000 (4,241,000)
Effect Of Exchange Rate Changes (37,000) 51,000 (159,000)
Change In Cash and Cash Equivalents (1,191,000) (1,489,000) 2,343,000

Ref:- finance.yahoo.com/q/is?s=F+Income+Statement&annual [Annual Date Ford Motor Co.(F)]


Financial Ratio Analysis of Ford Motor Company(2010 to 2013)

Period Ending: Trend 9/30/2013 9/30/2012 9/30/2011 9/30/2010
Liquidity Ratios
Current Ratio








307% 214% 611% 733%
Quick Ratio








265% 171% 583% 702%
Cash Ratio








159% 63% 417% 556%
Profitability Ratios
Gross Margin






21% 13% 22% 22%
Operating Margin









2% 11% 9% 8%
Pre-Tax Margin









0% 11% 9% 8%
Profit Margin







1% 33% 13% 9%
Pre-Tax ROE









0% 36% 11% 7%
After Tax ROE





2% 105% 16% 8%


Ref:- http://www.nasdaq.com/symbol/ford/financials?query=ratios
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After comparing the financial ratio of Ford Motor we can analyze that the company enjoyed a
good performance in liquidity ratio. Furthermore when we come to Profitability ratio, only the
Gross Margin has increased from 13% to 21% in 2013 and rest all figures including Profit
Margin has decreased which shows that the firm is not having an ability to pay back short-time
liabilities. This shows that Ford Motors is not financial health during the period of 2013, but
these figures are not sufficient enough for us to conclude about the companys performance in
this current year. According to the sales in half quarter of 2014 and the innovation techniques
implemented by the company makes us hope that the company is running under a healthy
financial background.

Marketing and Distribution
The organization of Ford is using Differentiated Strategy in their businesses. This
strategy is to targets two or more segments by developing marketing mix for each segment. Ford
Motor Company designed to appeal to many different types of consumers and to satisfy many
different needs in the form of economy cars, sports cars, luxury cars, station wagons, vans,
trucks, and so on. Now the latest cars that the company produce is FORD FIESTA, this car are
focus on young people and ladies.
Segmentation variables
Segmentation variables used by FORD Motor Company are Geographic segmentation,
Demographic segmentation, Psychographic segmentation and Behavioral segmentation. Ford
automobile is mainly segmented to the United Kingdom automobile market industry but it also
segmented to others country like Malaysia, Indonesia and so on to various basis which are the
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parts of above mentioned factors. The latest model FORD FIESTA is using Demographic
Variables which is age, gender and income. It is because this model is focus for young people,
ladies and average income consumer. In the other hand, FORD FIESTA also uses behaviorist
variables with the benefit for safety and fuel efficiency.

Market Segment Profiles
FORD Motor Company profile offers a comprehensive analysis for the organization; it is
business segments, and competitors. It used to analyze the business and marketing strategies
adopted by the company, and to gain a competitive edge in the market industry. This profile also
evaluates the strengths of the company and the opportunities present in the market. It is also
involves analysis of the company at three levels - segments, organizational structure and
ownership composition. Beside this, both business and geographic segments are analyzed along
with their recent financial performance. It further discusses the major subsidiaries of the
company and the recent merger & acquisitions. Most of the consumer for FORD Motor
Company may choose our product because the organization has the needs of the consumers.
Evaluate Relevant Market Segment
The FORD organization is selling FORD FEISTA for a reasonable price. It is because
this product has the necessary that are good for the consumers such as save fuel. This product is
increasing the sale potential for the company. It also determines the market industry that the Ford
Motor Company is segment to the right position for the product that the consumers are likely to
buy this automobile for their daily use.
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Target Markets
FORD Motor Company designed as the new model FORD FIESTA is target to young
people and ladies. The young people that the organization focuses on 18-25years old which are
teenagers and ladies with average income can affordable to purchase the cars. And this kind of
model is suitable for those unmarried people because this car only have 5 seats that are not for a
big size family. Therefore, this automobile size is average so it is suitable for those consumers
that like middle size car.
Industry Factors and Competitors
FORD view environmental forces as uncontrollable and maintain passive and reactive to
the environment. In the automobile market, FORD is facing many competitors like TOYOTA,
HONDA and NISSAN. Competitors are affecting the FORD Company by reducing the sales
rate. In this situation, FORD is producing a new model car which is FORD FIESTA this season
of car is focus to attract young people and ladies. Not only that but FORD Motor Company also
focused on creating a strong business plan that produce great products that contribute to this new
generation. As part of organization plan, the company may continue to press forward to globalize
automobiles platforms that can be adapted to meet specific regional needs. Flexible
manufacturing capabilities allow us to bring products to market with greater speed and efficiency
than ever before. The marketers define the FORD companies as an oligopoly competition in the
market structure because in the market there are many substitutes available but only one
company offerings for another.


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Product, Promotion, Pricing and Distribution Strategies

Product Strategies
The Ford classified the brand names of midsize cars, elegant and generous by research
techniques. Ford uses blue oval that Ford branding which determines price and value. The Ford
oval is proud and historic symbol for Ford Motor Company and one of the most recognized
trademarks in the world.
Promotion strategies
Ford has use difference promotional strategies to maintain their marketing edge over the
competitors. Ford is the one of the top 20th of the highest media spend companies list. During
the recession, the Ford starting to cut cost to reduce their promotional budget and cancelled all
the promotion advertising. Ford organized a lot of campaigns and tied up with the long lasting
sponsorships and regular to conducted sport events. The advertisements and logos with attractive
strap line, amazing designs and advertisement are giving edge over competitors activities. Ford
promotional strategy has classifications, 2 type of promotion such as above the line promotion
and below the line promotion.
Pricing Strategies
Ford has implemented their own pricing strategies which are more demand or market
based pricing oriented. Ford has use new strategies call Blue Tag is expanding from its large
car to the small car range. The price reductions are between 6%-15% on the Ford Fiesta. The
Ford Motor Company is setting two types of price which is price skimming and penetration
pricing in the market industry.
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Distribution Strategies
For the marketing channel selection, Ford Motor Company uses the channel of producers,
dealers and consumers. Vehicles that are manufactured at Ford factories are distributed to dealers
through road or train transportation. Consumers can buy the cars directly at the dealers show
room.




Recommendations: -

Since Ford is the only one auto motor industry in the US who tried to sustain its
leadership and its market position with effective strategies to match the market requirements
and needs. It should give concern to update its products with latest technology gadgets and
equipped its products with the latest ones.
After conducting the in depth analysis of the companys success factors, revamped
process and other operational strategies as well as the study of case study. I came to the
following recommendations for the Ford Motors that can help the company to leverage its
market position and sustain profitability:

Recommendations: Objectives and Policies
Establish a positive reputation of long duty, safety, honesty, and customer service in the eyes
of all publics about Ford.
Invest more in research and development.
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Manufacture genuine parts with an affordable price.
Provide first year free car insurance to attract the buyers.
Ford dealers must provide emergency 24hrs recovery services.

Recommendations: Strategy
To make the face of Ford shine brighter and to replace the companys current damaged
reputation with a new, positive image proper campaign is recommendable.
Well maintained financial planning which improve companys balance sheet and short-term
liabilities.
Accelerate the speed of developing new products which customers want and value.


Recommendations: Personal Experience
As a successful seller of automobiles, Ford must focus on giving dealership of the brand to
authorized party. A dull dealer will make customers dissatisfaction; hence the brand will lose
its goodwill. Therefore, appealing to the customers and potential customers is the most
important factor in reaching the short-term goal of selling more cars.

Research: Not only from the case analysis, but also from my personal experience after using
ford vehicles I recommend Ford motors should conduct a market research and survey with
different nations to understand the customer preferences. Vehicles must be produced
according to this preference and specifications. The company should keep an eye on the
market trends and needs because one wrong step can lead it to the deepest pit which the
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company is scared of. Instead of changing the models each year, they should bring out the
quality and performance in the existing projects by improving the production operations of
the company. The company should focus more on the designs of its products and come up
with more diverse and efficient models.

Innovation: In Middle East market and other market, Japanese car makers are already
providing small cars and catering to the needs of the people in the segment. Fords main
competitors in this market are Toyota, Honda and others. Who are offering products that are
priced low, carrying nice features and their performance is not under rated in anyway.

According to my analysis its a fact that Ford must expand sales in Middle East. Ford must
consider the interest of Middle East customers; of course they prefer four wheel suv for the
dry desert. Ford can make more sales on vehicles like F-150 Raptor and other heavy duty
four wheel drives.

Green Vehicles: Due to the increasing emphasis by the government of US and other countries
on the production of eco-friendly cars and other vehicles, it has become extremely very
important for every car maker to introduce the cars which are more fuel efficient than those
V8 Hemi engines producing by Ford. The Japanese car makers like Honda and Toyota has
introduced more fuel efficient cars like Civic and Corolla, which even come with hybrid
engines to save petrol. Even though Ford has also taken initiative of producing environmental
friendly cars like Ford Fiesta SFE, it only scored a rank of seven in the ACEE list. Producing
greener vehicle not only increases sale,but also helps us to save from the increasing fuel cost.
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Marketing: Today it is an era of marketing. Only those who market them-self well are likely
to succeed in this competitive market. Ford has won the marketer awards several times, I
suggest that the company should continue with the current marketing strategies and the other
promotional channels it is already into. They should also engage into aggressive marketing
and promotional activities to attract the customers about the newly introduced products.
Savvy marketing and re-defined focus can be a good sign for this iconic company. The
company should link up with the TV sponsorship and engage in the public relations activities
to attract the general public about how concerned the company is towards the social issues.

Ford has a lot of scope for producing buses to take advantage of the growing needs of public
transports, utility vehicles as well as other vehicles that may find their use in some other
industries. For example, manufacturing buses and trucks for India and African nations, oil
tankers for oil producing countries, etc.

Case as well as SWOT Analysis Recommendations:

The Company in order to gain public favor in Asia and China and to gain profits in recession
hit Europe may try to reduce its cost structure for these countries as a short term plan.

The company may risk its sales in the US to cover the subsidy given in third world
countries, but given the large size of potential customers in the target countries, possibility of
profits in long term cant be ruled out.

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The company may resort to multiple raw material suppliers and may even try to set up its
own unit for production of raw materials. This will reduce dependence and make company
more competent with rapidly shifting raw material prices.

The production of cheaper motor vehicles in masses for mass sales rather than the making of
luxury vehicle is a good option because this will offer a large market and there is safety in the
numbers because of the large market share presented.

There should be some more less degree of centralization than present standards with some
more autonomy to regional heads to match different demands.

Promote 24hrs service centre for vehicles and customer service to answer questions regarding
complaints, recalls and changes within the company.

Institute a policy that features free car accident services for breakdowns or miner issues
related to the vehicle. This will attract customers and may result in gaining more customers.

Conclusion:
Ford Motor Company is considered as one of the largest automobile makers throughout the
world. We have a wrong believe that Ford products are expensive and only available for higher
income people. Ford changed this believe with the introducing of economical vehicles like Ford
Focus, Ikon, Fiesta and so on. This automaker transformed the world by making fuel efficient,
heavy duty and performance vehicles. Ford F-150 Raptor is one of a kind off-road vehicle with a
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6.2liter performance engine which was a large success for the company. The success story
continues by winning several awards, "Accessory-Friendly Pick-up" Design Award from SEMA
is one among them. Ford has gain global recognition by staying focus to its product and by
delivering to the customer a full range of vehicles with outstanding fuel economy. Technology
has not remained standstill with this automobile maker. They continue to develop new affordable
automobiles with new advance technology that has captivated the suppliers, dealers,
shareholders, employees and the communities.


References:
Geyer, G. (2011). Ford Motor Company: The greatest corporate turnaround in U.S. history.
S.l.: Gerhard Geyer.
Hoffman, B. G. (2012). American icon: Alan Mulally and the fight to save Ford Motor
Company. New York: Crown Business.

Bibliography:
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http://corporate.ford.com
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http://www.marketwatch.com/investing/stock/f/financials
http:// www.annualreport.ford.com
www.finance.yahoo.com/q/is?s=F+Income+Statement&annual
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