STRATEGIC ISSUES:

1. Unavailability of credit lines and high unemployment rate

2. Offering employee prices to consumers/ low or zero interest rates to
lure buyers
3. Light vehicle production exceeded the production of cars and trucks in
North America and Europe
4. Experience a shift from trucks and SUVs to hybrid and small fuelefficient vehicles
5. Suffer from an oversupply for dealers

PRESENT STRATEGIES:
One Ford strategy
Ford Motor Company founded Ford One Program in 2009. The principal
purpose of One Ford is the understanding of the Company as a real Global
Entity, a unique family regardless function place or culture of their members.
The 3 elements of ONE Ford are:
ONE TEAM: ONE Ford emphasizes the importance of working together as one
team to achieve automotive leadership, which is measured by the
satisfaction of customers, employees and
Other essential business partners, such as dealers, investors, suppliers,
unions/councils and communities.
ONE PLAN: The companys four-point plan consists of: balancing cost
structure with revenue and market share; accelerating development of new

vehicles that customers want and value; financing the plan and rebuilding
the balance sheet; and working together to leverage all resources around the
world.
ONE GOAL: The goal of ONE Ford is to create an exciting and viable company
with profitable GROWTH FOR ALL.
(See

more

at:

http://operations.blogs.ie.edu/2010/12/one-ford-aiming-to-

global-processes-excellence.html#sthash.8ZzR35RO.dpuf)
ONE Ford expands on the Companys four-point business plan for achieving
success globally. The four-point business plan consists of the following:

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.

Growth strategy
Accelerate development of new products to suit customers want and value;
Finance plans and improve balance sheet; and work together effectively as
one team.

Concentration Ford has delivered consumer friendly, highly fuel

efficient and innovative vehicles most of the time and concentrated on
quality over quantity.

Vertical integration the ford motor credit company offers auto

financing to both dealers and customers in support of its parent
company. The company also assists dealerships with funding for such
purposes as improving sites and acquiring real estate. The Fords
motorcraft division offers premium parts/services ranging from motor
oil to transmission assemblies. In this way, the company has achieved
dual objectives, it has become its own suppliers as well as distributors,
thus achieving forward and backward vertical integration at the same
time.

Diversification Ford has combined with Aston Martin, Jaguar and Land
Rover, sports car manufacturers companies which are different but
related. Hence a related diversification can be seen here. (Pero
nakalagay sa case na binenta ng ford yung tatlo na yan nung 20072008. Haha di ako sure kung pwede ba ilagay to)

SUMMARY OF INDUSTRY ANALYSIS

Using the Porters Five Forces model, we examined and evaluate
various external factors impacting the automobile industry. The automotive
industry experiences low pressure arising from competition of new entrants.
New entrants face stringent industrial and governmental regulations that
make it relatively difficult for a new member to enter the market. Being the
third in the US market share of top 11 Auto firms during February 2009, we
can say that Ford Motor Company has an established name in the industry.
Due to dramatic decrease of monetary sales in the industry and competing
for a large market share, automotive manufacturers experience intense
pressure from competitive rivalry. Each firm have same general focus; price,
quality, and durability to provide consumers with options that will meet their

needs and requirements.

Industry members also receive intense pressure

stemming from customer bargaining power. In effect of economic recession

as consumer demand for new autos has dropped and frequent fluctuations of
purchasing power of the public, customers are not restricted on buying a
vehicle from one company over another which offers lower prices but of the
same quality. In 2008, the Big Three began offering lowered interest rates or
zero percent financing to lure buyers. The bargaining power of suppliers
remains relatively low. Many suppliers compete for large contracts and bulk
prices to make purchase agreements more attractable to automotive firms.
The industry also faces moderate pressure of substitute products as public
transportation is readily available to many citizens of urban locations but
may be subject to limited flexibility concerning destinations, seating,
schedules and delays. It can still be said that cars and other private vehicles
are viewed as a necessity for those who do not live in city centers.