Ford - Internal Environment Analysis

Internal Environment

Resources

Tangible:

пÑ"ј Established manufacturing facilities globally.

пÑ"ј Highly trained managers.

пÑ"ј R&D facilities.

Intangible:

пÑ"ј Well known brand name associated with Industry Revolution and American Dream.

Capabilities:

пÑ"ј Ability to manufacture sufficient number of cars to meet demands globally.

пÑ"ј Capable of providing innovative products with Safety and Convenience features.

Core Competencies:

пÑ"ј Strong Engineering Capabilities.

Competitive Advantage:

пÑ"ј Strong brand portfolio.

пÑ"ј Large network of dealers and suppliers globally.

пÑ"ј Strategic alliances formed with auto manufacturers in different countries.

Value Chain:

пÑ"ј Inbound Logistics: Receiving, warehousing and input control of materials or parts.

пÑ"ј Operations: Transforms inputs вЂ" raw material and parts вЂ" to finished automobile.

пÑ"ј Outbound Logistics: Activities involved in delivering the automobile to customers and order fulfillment.

пÑ"ј Marketing and Sales: Attracting the customers to buy the products including distribution channel selection and advertising.

пÑ"ј After Sales Service: It includes customer support and repairs which will maintain or enhance the automobile’s value.

Financials (Automotive):

Sr. No. Parameter 2006 2005 2004

1 Sales $143,307 $153,474 $147,119

2 Cost of Sales and Expenses 161,228 157,662 147,319

3 Operating Income/(Loss) (17,921) (4,188) (200)

It is clear from the above table that Ford’s Automotive division is suffering from high inefficiencies. During past three years, Cost of Sales and Expense have always been exceeding the sales thus generating heavy losses.

Strategic Intent:

пÑ"ј To realign its capacity to reflect the realities of the market.