Ford – Internal Environment Analysis
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Internal Environment
Resources
Tangible:
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Established manufacturing facilities globally.
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Highly trained managers.
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R&D facilities.
Intangible:
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Well known brand name associated with Industry Revolution and American Dream.
Capabilities:
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Ability to manufacture sufficient number of cars to meet demands globally.
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Capable of providing innovative products with Safety and Convenience features.
Core Competencies:
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Strong Engineering Capabilities.
Competitive Advantage:
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Strong brand portfolio.
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Large network of dealers and suppliers globally.
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Strategic alliances formed with auto manufacturers in different countries.
Value Chain:
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Inbound Logistics: Receiving, warehousing and input control of materials or parts.
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Operations: Transforms inputs — raw material and parts — to finished automobile.
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Outbound Logistics: Activities involved in delivering the automobile to customers and order fulfillment.
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Marketing and Sales: Attracting the customers to buy the products including distribution channel selection and advertising.
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After Sales Service: It includes customer support and repairs which will maintain or enhance the automobile’s value.
Financials (Automotive):
Sr. No.
Parameter
Sales
$143,307
$153,474
$147,119
Cost of Sales and Expenses
161,228
157,662
147,319
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:
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To realign its capacity to reflect the realities of the market.