Business Model Deconstruction - Analysis of Ford Motor Company

This report analyses the business model canvas of Ford Motor Company, identifying critical success factors, contribution to downside risk, and changes required for sustainable success.

Running head: BUSINESS MODEL DECONSTRUCTION
Business Model Deconstruction
Name of the Student
Name of the University
Author note

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BUSINESS MODEL DECONSTRUCTION
Executive Summary
The report has helped in understanding the business model canvas of Ford Motor Company
wherein the different kind of issues and strategies has been identified. The different kind of
critical success factors has been analysed that has helped the company in solving the different
problems and this has helped the company in implementing the contribution to downside risk
as well. The changes has been identified and analysed that could have been implemented in
the business to make it better.

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Table of Contents
Introduction................................................................................................................................3
Overview of Ford Motor Company............................................................................................3
Products and services offered by Ford Motor Company...........................................................4
Management Team of Ford Motor Company............................................................................4
Business Canvas Model of Ford Motor Company.....................................................................5
Relationships between Nine Building Blocks of BMC..............................................................6
Critical Success Factors in Ford Motor Company.....................................................................7
Contribution to downside risk....................................................................................................8
Changes required in Fords Motor Company..............................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
The report helps in analysis of the different type of strategies that have been applied
in the business canvas model of Ford Company. The description of the business canvas
model of Ford Motor Company will help in understanding the critical success factors of the
business. The key relationships between the nine building blocks of the BMC has to be
described as this will help in analysing the factors that are required in the business.
The main aim and purpose of the report is to identify the relationships in the nine
building blocks as this helps in understanding the different kind of issues faced by the
organization. The identification of critical success factors is essential in nature as this will
help in understanding the contribution to downside risk.
The structure of the report includes the analysis of the BMC nine building blocks as
this will help in understanding the business as to achieve the sustainable success advantage in
the business in an effectual manner. Proper innovative strategies have to be adopted by the
company as this will help them in solving the different kind of issues in an effectual manner.
Overview of Ford Motor Company
Ford Motor Company is the American multinational auto maker that is headquartered
in Dearborn in the suburb of Detroit. The company was founded in the year 1903 in the
month of June. Ford introduced different kind of methods of large scale manufacturing of the
different cars with the help of engineered sequences of manufacturing and they manufactured
different kind of vehicles along with provided service of vehicle leasing and licensing. There
are more than 201,000 employees who are employed in the respective company and they

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have earned a revenue of more than US$151.8 billion ("Ford – New Cars, Trucks, SUVs,
Crossovers & Hybrids | Vehicles Built Just for You | Ford.com", 2018).
Products and services offered by Ford Motor Company
There are different kind of products and services that are offered by Ford Motor
Company wherein it includes the Automobiles luxury vehicles commercial automotive parts
to their target customers. The company is gaining huge amount of success by providing
automotive vehicle leasing service to the customers wherein the customers are gaining huge
profit in the entire market. The revenue that is earned by the company is about US$151.8
billion (2016) and this has helped the company in gaining huge profit and competitive
advantage as well (Joyce & Paquin, 2016).
Management Team of Ford Motor Company
Ford Motor Company was founded by Henry ford wherein he has developed different
kind of commercial vehicles and automobiles that has helped the company in gaining
competitive advantage in the market. The owner of the company has started with different
UK subsidiaries wherein it included the Land rover and Jaguar brands and this has helped the
company in gaining competitive advantage in the entire competitive market. There is
executive chairman along with president and CEO of the company wherein this has helped
the company in gaining and attracting more customers effectively (Klang, Wallnöfer &
Hacklin 2014).
Business Canvas Model of Ford Motor Company
Key Partner
Distributors
Gas Companies
Different
Key Activities
Proper
development and
manufacturing
Value
Proposition
Premium
kind of
Customer
Relationship
s
Proper and
Customer
Segments
Private kind of
individuals both in

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Universities
Distributors
Dealers
along with sale
of different kind
of engines
Equipping the
different
vehicles with
engines that
includes-
 Financial
kind of
services
 Automoti
ve
 Different
Motorcyc
les
services
Social as
well as
ecological
sustainabilit
y along the
entire
supply chain
Long-term
actions that
is
responsible
in nature
High
standards
that include
proper
quality and
technology
usage
strong bond
among the
different
customers
Aftersales
proper
relationship
with the
different
customers
Focus is
mainly on
the different
target
customers
middle and upper
income class
members
Car sharing and
rental car
companies
Company owned
cars
Key Resources
Workforce
Knowledge
Raw materials
Channels
Direct kind
of sales
Drive Now
Dealers
Cost Structure Revenue Streams

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 Focus more on the innovation
 Manufacturing the different cost of plants
that is the largest overhead of Ford
 Batteries are the most significant part of
the car cost
 Agreements of licensing with
different kind of designs
 Proper value added through the selling
of the cars that is manufactured in
nature along with different kind of
selling services
 Method of fixed pricing that is based
on different features and it is based on
customer segment along with values
Relationships between Nine Building Blocks of BMC
Proper kind of specific relationship is essential in nature in BMC wherein it will help
the respective company in gaining competitive advantage. Ford Company needs to
understand the relationship with the nine building blocks as this will help in understanding
the importance of all the particulars in an appropriate manner. The cost and revenue streams
are essential in nature wherein this helped the company in providing the customers valued
services in an effectual manner. Proper focus on the innovation is essential in nature wherein
this will help them in analysing the key partners who are essential in providing them the
competitive advantage in the market (Dijkman et al., 2015).
Furthermore, it has been seen that the key channels are essential in nature wherein this
will help in making different agreements in the company in an effectual manner. the key
resources are essential in nature as this will provide the customers a proper and accurate
value proposition to the customers in an effective manner (Souto, 2015). The distribution
channel is essential in nature in the organization as this will help the company in arranging

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the different resources effectively. The target customers are essential in nature wherein it will
help the customers in commenting more on the different kind of values that is offered to the
customers effectively (Foss & Saebi, 2017).
Critical Success Factors in Ford Motor Company
There are different kind of critical success factors that will help the Motor Ford
Company in gaining competitive advantage in an effectual manner. The respective company
has to understand and identify the different kind of success factors that will help them in
gaining success in the future that are as follows:
A good and proper brand image of the company is one of the critical success factors
wherein this helps in the process of decision making in the buying of cars. Proper
brand image will help the company in understanding the factors in making the
business successful (Aversa et al., 2015)
Proper and efficient channel of distribution is essential in nature for the respective
company wherein the supply and value chain analysis has been done in an accurate
manner. Proper distribution network is essential in organization to provide the
company with proper rules and regulations in an effectual manner (Bocken et al.,
2014)
Proper planning of cost is the other critical success factor of Ford Motor Company
wherein they have high margin of profit and this will help the company in gaining
huge amount of revenues in the market (Schaltegger, Hansen & Lüdeke-Freund 2016)
Contribution to downside risk
There are different kind of risks that can affect the performance of the Ford Motor
Company that are as follows:

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There can be issues relating to the regulation of the value chain management wherein
the company can face huge decision crisis and this is causing huge trouble for the
decision makers of the automobile company (Sinkovics, Sinkovics & Yamin, 2014)
The demand for the customers is changing and the preferences of the customers are
one of the huge issues in the organization. The difficulty will cause huge issues in the
car company and this can lead to shift in the demand curve of Ford Motor Company
However, there are different processes of mitigating the risks in an effectual manner
wherein the company needs to plan flexible process that will provide the employees the scope
of understanding the different issues and solve them in an effectual manner. Proper and
planned flexibility is essential in nature as this will help the company tom meet the demands
of the customers effectively (DaSilva & Trkman, 2014).
Changes required in Fords Motor Company
There can be different kind of changes that is required in Ford Motor Company that
could have been implemented by me if the entire business was mine. I would have
implemented flexible supply chain management is essential in nature wherein this will help
the company in solving the supply chain issues and this will help the company in
understanding issues and solve them effectively. I would have implemented the skills such as
proper communication and implementation of the value chain analysis that will help in
understanding such issues effectively.
Conclusion
Therefore, it can be concluded that proper BMC has been prepared by the respective
Ford Motor Company wherein the different kind of issues has been reduced. The different
kind of critical success factors has been analysed that has helped the company in
understanding the changes that is required to be done in the organization for gaining

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competitive advantage in the entire competitive market. Proper relationship between the nine
building blocks of the BMC of Ford Motor Company has been done as that has helped the
company in solving such issues and this has helped in understanding the scopes that can be
adopted by them as to increase the sales and revenues of the business effectively.

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References
Aversa, P., Haefliger, S., Rossi, A., & Baden-Fuller, C. (2015). From business model to
business modelling: Modularity and manipulation. In Business models and
modelling (pp. 151-185). Emerald Group Publishing Limited.
Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to
develop sustainable business model archetypes. Journal of cleaner production, 65,
42-56.
DaSilva, C. M., & Trkman, P. (2014). Business model: What it is and what it is not. Long
range planning, 47(6), 379-389.
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the
Internet of Things. International Journal of Information Management, 35(6), 672-
678.
Ford – New Cars, Trucks, SUVs, Crossovers & Hybrids | Vehicles Built Just for You |
Ford.com. (2018). Ford.com. Retrieved 27 March 2018, from https://www.ford.com/
Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: how
far have we come, and where should we go?. Journal of Management, 43(1), 200-227.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Klang, D., Wallnöfer, M., & Hacklin, F. (2014). The business model paradox: A systematic
review and exploration of antecedents. International Journal of Management
Reviews, 16(4), 454-478.
Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for
sustainability: Origins, present research, and future avenues.

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Sinkovics, N., Sinkovics, R. R., & Yamin, M. (2014). The role of social value creation in
business model formulation at the bottom of the pyramid–implications for
MNEs?. International Business Review, 23(4), 692-707.
Souto, J. E. (2015). Business model innovation and business concept innovation as the
context of incremental innovation and radical innovation. Tourism Management, 51,
142-155.