Global Operations of Ford

This research paper provides an overview of the Ford Motor Company, its strategic overview, factors contributing to its success, and more.

Running head: GLOBAL OPERATIONS OF FORD
GLOBAL OPERATIONS OF FORD
Name of the Student
Name of the University
Author Note

1GLOBAL OPERATIONS OF FORD
Introduction
The research paper will provide an overview of the Ford Motor Company. It will also
provide the strategic overview of the company. The paper will also research on the factors which
has contributed much to the factors of the success of The Ford. It will cover the portfolio of the
company as well as the sales performance. It will also include the planning of various products
of Ford as well as the development of the products and the usage of the latest technologies. The
technological strategies also includes the development and the research of the vehicular
communication. The paper will conclude with a conclusion and various recommendations.
Global operations of Ford
The Ford Motor Company is one of the largest global automotive vehicles production
group in the world. It comprise of The Ford and the other Lincoln brands. As per the report as
well as the sales analysis it has sold about more than million vehicles by the year 2018. The
vision of Ford which was under the leadership of its ex- Chief Executive Officer (CEO) is to
accelerate the innovation of new vehicles accommodated with new technologies, which will be
able to capture the market. Ford is very aggressively addressing to the global share of market
according to the CAGR report in the (2017Law 2017). It will be selling around two million cars
by the year 2020. The main focus of the marketing strategies set by the managerial department is
to restructure and also arrange the operations regarding the products lining up. Launching new
model of cars which will meet the needs of the customers. Also improving the profit margin by
increasing it gradually. It is also dedicated as working as a single team effectively and
efficiently.

2GLOBAL OPERATIONS OF FORD
The company has also planned in establishing eight various engineering raise and
development centers in various parts of the world which is dedicated to work under a single
umbrella, and collaborate with the other team members across the whole world. The performance
group is under a single streamline in operating as well as improving the efficiency by combining
the platforms which had shirked in the year 2009. The platform of the cars development as well
as the Research and Development strategies of Ford is targeting to sale around two million of
cars by the year 2020. It is also targeted to increase the annual growth of the company by 25%
from the year 2014 to the year 2020 (Semmens and Guldberg 2014). Ford’s vision regarding the
2020 is fully dependent by the confidence shown by the company’s products plan which are
related globally. The plans which are implemented by the company mainly focuses on delivering
the cars to the families which will be able to accommodate each and every member of a full
family. The full family vehicles which will be produced will be able to meet the pillars which are
set by the company. The Ford Company’s four pillars mainly includes – eco-friendly, smart and
uses latest technologies, safety, and maintained quality. Ford is a leader in the market when it is
spoken about bringing the new features in the market and capturing the opportunities and
differentiates itself form the market competition. Ford is also known for its 2015 F – 150 which
was the first vehicles produced in the market consisting of the military grade aluminum alloys in
the mass of the market vehicles body so as to deliver the strength and the longevity of the vehicle
(MacDuffie 2013). This leads the vehicle to produce a Super Performance in the market when in
competition with the other vehicles. The usage of the improved aluminum in the body of the
vehicles allows it move and pick up speed faster and delivers a better mileage when running on
gas.

3GLOBAL OPERATIONS OF FORD
Ford has also made its operating as well as manufacturing operations worldwide which
includes the nations like Unites States, Mexico, Canada, China, United Kingdom, Germany,
Turkey, Brazil, Argentina, Australia and South Africa (Joshi Nepal Rathore and Sharma 2013).
North America
As reported in the year of 2003 Ford had increased its sakes by 25% by manufacturing
the vehicles which were made according to the demand and need of the customers. 38% more of
the sales came from the sales which were made by selling the fleets in the year 2010. Sales had
also increased by 18% to the individual customers (Tuman 2013).
Europe
Ford was first established and had its manufacturing nits in Germany and the engines
were assembled in various parts of Britain. Until the year 1965 various model were made but
they could not satisfy the needs of the customers. In the year 1964 Ford had introduced a very
new model to the customers which was very popularly known as the Ford Transit after that when
it had become very popular in the market a new modification was made in the existing vehicle
and with the use of the latest technologies Ford had introduced a new vehicle which was named
as the Ford Taunus. Along with that Ford had also introduced a new vehicles which was known
as the Ford Cortina in the year 1974. Both of the vehicles which were produced and
manufactured by Ford in Europe was designed to be driven both by the left hand drivers as well
as the right hand drivers. Later on when both of the models became very identical and had
become old fashioned Ford had introduced another new range of vehicle so as to capture the
market. Ford Sierra in the year 1922 was brought in the roads of Europe as well as in the roads of
Spain and Great Britain and Belgium. The latest model of the Ford was built in aerodynamic

4GLOBAL OPERATIONS OF FORD
style with all the latest features and specifications including the power clutch, power steering and
the power brakes (Iuga and Kifo 2013).
East and Southeast Asia
Ford was the first automobile company which had introduced the first passenger vehicle
in China in the year 1925 and at that time Ford was under the joint venture with two of the
Chinese companies which were The GM motors and the VW motors. At that time Ford had
decide to spent an amount of $50 million dollars to expand the lineup of its vehicles and double
the production of the vehicles in China by 60000 per year. The plan and the strategies was set in
the factory complex of Ford which is in the southwestern city of Choging. Ford had a market
capture of 15.65% along with the competitive brands in the market (Bloomfield 2017).
Origin of Ford Motor Company
The Ford Motor Company is a big multinational company which specially deals in
making the automobiles. The main headquarter of the company is at Dearbon, Michigan which
is a suburb of the Detroit. The Company was founded and established by Henry Ford which was
incorporated in the year 1903 on 16th June (Cugurullo 2018). The company is majorly known for
selling the automobiles as well as other types of commercial vehicles under the branding of Ford.
It is also known for selling the luxury vehicles under the branding of the Lincoln brand. Ford is
known for owning the Brazilian SUV manufacturer and designer Troller. It also holds 9% stake
in Aston Martin which is mainly in United States of America. It also hold a 34% stake in
Jangling which is luxury car maker brand well known for its luxury vehicles in Canada (Weis
2014). The Ford company is also a proud owner of joint ventures in China formerly known as the

5GLOBAL OPERATIONS OF FORD
Changan Ford , Russia which is known as Ford Sollers, Turkey which is known as Ford Oston
and at Taiwan which is known as Ford Lio Ho. All these companies are in a joint venture with
the Ford and y are listed under the New York stock exchange controller which is fully controlled
by the Ford Company. The also enjoy the ownership which is minor but they are majorly
controlled with their voting power (Simchi-Levi Schmidt and 2014).
Ford was the first company to introduce the Large – Scale manufacturing of the vehicles
which should be controlled by the large scaled manufacturing workforce along with the help of
the industrial working force team. They used the effective engineered manufacturing team and
followed a proper sequence by smoothly moving the assembly lines by the year 1914. The whole
world knows these techniques as the Fordism which was performed under the owner of Henry
Ford. Ford’s subsidiaries which are present in UK Jaguar as well as the Land Rover which were
acquired in the year 1998 and the year 2000 was sold off to Tata Motors in the year 2008
(Bloomfield 2017). Ford was also the owner of the luxury cars brand Volvo which was from the
year 1999 to the year 2010 (Pan, Liang and Wang 2014). In the year 2011 Ford had decided to
discontinue the model Mercury brand which was a luxury car brand sold in United States,
Canada, in the Middle East countries and in Mexico in the year 1938 (Cutlip 2013). Ford is now
the second largest auto-maker in the world whose origin was in United States behind the well-
known brands like General Motors, Toyota, Kia as well as Hyundai. In the year 2010 it was
known as the largest vehicles manufacturer in Europe.

6GLOBAL OPERATIONS OF FORD
Activities of Ford Company
The business activities which are performed by the company is that dealing and
designing, manufacturing, servicing as well as marketing a service line of the Ford cars which
also includes the trucks, the Sports Utilities Vehicles or the SUV and also the Lincoln Luxury
vehicles The company is known to perform in three major stages which includes the Automotive
Financial Services, Ford Smart Mobility vehicles, Central Treasury Operations. The Ford Smart
Mobility vehicles and the Central Treasury Operations are combined in one single segment. The
company is well known for selling its cars to the customers as well as the retailers who can
arrange a fleet of customers. It also sell cars to the dealership authorities for the retail selling, it
also includes commercial customers, companies which deal in daily rental of cars and to the
government. The company also sales various authorized parts and other accessories especially to
the dealerships of Ford which sells these products to the customers in various countries. The
company is also under the service of providing various extended services contracts to the
customers.
Vehicles sales in the respective years from 2014-2018 Sales in the value of 1000 units
2018 6,607
2017 6,651
2016 6,356
2015 6,323
2014 6,210
Fig 1. Ford motor company worldwide sales of vehicles from the financial year 2014 to 2018
(Source: Budde, Alkemad and Hekkert 2015).

7GLOBAL OPERATIONS OF FORD
The Automotive segment of the company is known for dealing with the sales of the Ford
and the Lincoln vehicles, serviceable pats and various kinds of other accessories in the world. It
is also deeply associated in developing, manufacturing, distributing, servicing and customizing
the vehicles parts and other accessories. The Automotive segments are placed in different
regional units of business in many parts of the world like North America, South America, Middle
and East Africa, Middle East countries and in Asia Pacific Ocean. The Central Operations of
Treasury is known for dealing the decisions making sin the investments of the company,
managing the risk in the activities, providing financial assistance to the Automotive Segments,
interesting area of investments, gains as well as losses owned by the company, deals in the
securities related to the market. It also deals in the foreign exchanges derivatives which are
related with the inter company trades including the balancing of the Central Treasury Operation.
The Company’s Financial Service development segment is indulged with the activity of
vehicles related financing as well as the leasing activities at the Ford Motor Company LLC also
known as Ford Credit. This segment offers to the customers a great range financing products of
automotive vehicles. Which consists of supporting the vehicles of the dealers. A portfolio of
finance is maintained by the Ford Credit which mainly operates the leases. Under the
classification of the portfolios offered by the company it mainly includes the consumers and the

8GLOBAL OPERATIONS OF FORD
non-consumers. The receivables of the finance and the operating lease to the portfolio of
customers mainly includes the products which are given to the consumers and the business.
These finance the Retail financing parties which includes installment of the sales contract for the
used as well as the new vehicles. Direct financing of the vehicles to the retail stores as well as the
commercial users or the customers. This also includes various leasing companies, the
government entities, the daily rental companies as well as the normal customers. The finance
which is not received to the non-customers portfolio is directly offered to the automotive dealers.
A brief history of its share prices
A brief history of the share price of The Ford Company from the year 2015 to the year
2019. The historical data which is shown below is adjusted in four different type of splits ranging
from open, high, low and close. The display is shown in 20, 50, and 200 moving average days.
The latest stock price for the Ford Motor Company as of March 2019 is around 8.53.
Fig 2.
Represents the share price market of The Ford Motors
2019 2018 2017 2016 2015
0
2
4
6
8
10
12
14
Year Open Year High Year Low Year Close

9GLOBAL OPERATIONS OF FORD
(Source: Gartman 2013)
Organizational Legal Structure of Ford Motor Company
The Ford Company’s organizational structure is fully developed on the needs various
business measures which vary according to the conditions of the market around the world. Ford’s
organizational structures mainly defines the configuration of the components of the organization
as well as their systems of interaction. In the case of the Ford the structure of the organization is
directly related with the global automotive industries condition. The scope for the international
market of Ford’s operations clearly determines the organizational structures which are needed in
withstanding the competitive brands of the risks in the market. Regarding the structure Ford
Company stands as the rank holder of the second biggest automobile manufacturer in US. The
rank of the company clearly defines the organizational effectiveness of the structure which is
involved in supporting the firm from continuing with the growth of business as well as showing
high performance. The company divides the organizational structure on the basis of structuring
the regional factors:
 Corporate Hierarchy – Ford has developed a corporate hierarchy in its structure which
consist of the Executive vice presidents, CEO Mark fields. The middle level manger if
are facing any problem report to the executives. This characteristics which is followed by
the Ford aims to control the top and the down approaches.
 Regional Geographic Regions – The Ford has very large geographic divisions in the
organizational structure. Generally the other companies divide their structure into various

10GLOBAL OPERATIONS OF FORD
other divisions according to the business strategies. But here it is divided only into three
types namely: The Americas, Europe Middle East and the Africa and the Asia Pacific.
 Global functional groups – The Ford motor company has various global functional
groups like Global manufacturing and labor affairs, Global marketing sales as well as
service, Human resource as well as corporate services, Global Products development.
Organizational Structure of Ford motor
Fig 3. Represents the Organizational Structure of the Company
(Source: Shalender 2015).
FordMotorCompanyVicePresidentEuropevicePresidentNorthAmericaVicePresidentOfAsiaVicePresidentofNorthAmericaPrsidentortheCEO

11GLOBAL OPERATIONS OF FORD
Organizational Structure of a company refers to the ways and procedures a company uses to
arrange its people and their job so that everything is well managed and performed well. Doing
this will help the company to meet the goals. In larger organizations like Ford various decisions
has to be made regarding the delegations of the tasks. Thus keeping in mind various procedures
are established where responsibilities are assigned to various functions.
Company branding and individual car branding
Ford’s family branding is an individual effort where it has supported each and every
product having a very important and individual importance. Rather than expertising the
unnecessary effort on various products the company uses the family branding where it can
advertise various products which allows the usage of harmony where each and every car’s job is
to compliment the other car. Whereas in the case of individual branding the various department
of the cars which are produced by the Ford company is promoted individually. The cars here has
a unique position and this allows the marketing to go off in any other direction where it wants to
go. Example of individual branding of Ford is branding the SUV series of Ford.
Marketing Mix of Ford
Ford Motor’s Product Mix

12GLOBAL OPERATIONS OF FORD
Ford motor offers huge variety of cars. The output of the organization are included in the
marketing mix elements. The main products of Ford are shown below
Fig 4. Product Mix of Ford
(Source: Self Made)
Ford motor company is very popularly known for the automobiles it produces including
the luxury sedans. But the firm is also known for producing buses, tractors, and heavy duty
trucks in its product mix. The Ford Company in its automotive parts also includes parts for the
most used cars and vehicles owned by Ford. The company also provides leasing of vehicles to
the corporate client of various other companies.
Ford Motor’s Place or distribution Mix
The Ford Company typically uses the venues which are used in the product strategies
distribution, the elements mainly includes the marketing mix. The mix mainly focuses on the
1.Automobiles2.Trucks

13GLOBAL OPERATIONS OF FORD
locations and different venue which are used to reach out to the customers of the company to sell
the cars produced by the company. In the case of Ford motor company the places which are
important are used for the product distributions. The name of the distribution places are given
below in a diagram:
Fig 5. Place Mix of Ford motors
(Source: Self-made)
Ford Motor’s Promotion Mix
The company also promotes the products through the conventional tactics. The activities
which are included in advertising of the products are considered as the promotional mix of Ford
which are given below:
DealershipsAutomobilePartsStoresOnlinewebsiteofFordmotorFordmotorsCreditcompany

14GLOBAL OPERATIONS OF FORD
Fig 6. Promotion Mix of Ford
(Source: Self Made)
Ford motor’s Price Mix
Prices of the cars and luxury vehicles vary in Ford which fully depends on the market. The
element of the marketing mix is very much involved in the strategies which are made to use so as
to determine the appropriate prices of the product and services provided by the company. The
two of the main and very important pricing strategies which re applied by the Ford motors Is
AdvertisingPersonalSellingDirectSellingSalesPromotion

15GLOBAL OPERATIONS OF FORD
given below:
Fig 7. Represents the Price Mix of Ford motor
(Source: Self-made )
The strategies which are applied in the market are fully based on the price orientation, the
goal of Ford is to set the prices of the cars which are very much appropriate in the marketing
condition along with the competitive brands which are present in the market. These are the things
which should be considered when in a competition with other brands. The company should also
consider the other factors like demand, perception of the consumers as well as other variables.
Ford applies this type of pricing strategy for most of the products which are manufactured by
Ford (Ba and Stallaert 2013). The range of the products are only the sedan class cars and the
heavy pick-up trucks. Whereas the company on the other hand applies the most premium pricing
strategies which are set by the managerial head to the premium cars so as to set higher prices to
some of the products.
MarketingorientedpricingstartegiesPremiumCarpricingstartegies

16GLOBAL OPERATIONS OF FORD
This pricing strategy is also used for the Lincoln automobiles which are also known as
the Ford’s luxury line vehicles. Thus from the above study we can clearly understand the
importance of different pricing strategies so as to support the effort which will help the company
to secure the different stage the segments of the market.
Taxes which are paid as a proportion of the profit
The foreign taxes which are paid by the Ford company has risen by almost 3.7% in the
next second quarter it has risen by $20.5 billion dollars, the company has now decided to reduce
the tax which was prepaid for the rest of the year. It has also reduced the tax rate which is paid in
the US market for the last five years. It is only because of the high price of the steel
manufacturing prices. In the present finding it is also found out that the pretax earnings of the
company profit has also declined by $9 billion which was originally projected in the year 2018.
Though in the recent times Ford has boosted the earning which was before $8 million; in its
earnings per share just because of the most favorable tax rates which is produced in the recent
years (Acharya, Schaefer and Zhang 2015).
Ford has also presented that the tax rate which has also dropped in the second quarter by
10 percent; it was less than the third quarter which had represented 32 percent rate paid in the
year 2014. Ford also had to pay a huge cost as well as the profit was also hurt by almost $145
million dollar for a June Recall which consisted of taking back around 402,256 numbers of
transit vans in North America for the drives shift separations (Erhemjamts and Venkateswaran
2013).

17GLOBAL OPERATIONS OF FORD
Present Issues which are faced by Ford in the recent years
Ontario who is the leader of Ford recently has made various announcement regarding the
issues which are being faced by the company in the recent times. The most important
announcement which was made in the last lecture was about the reductions of the statutory tax
rates for the next year. Overall Ford has also faced a $2.55 billion dollar drop in the net income
which can be compared with the second quarter of the 2018 where there was noticeable revenue
drop of the market of Ford by 6% to $33.56 billion. Ford is now expecting to operate with the
full year tax operating profit to be lower than $8.46 billion which was earned in the previous year
2017. The stock of Ford has also dropped by half which was earned in the last year in the
beginning of 2017. The share of Ford is now in the present times is trading almost below $8. In
the regions of North America Ford has noticed a drop of the pretax operating profit which was
just over $2 million dollars (Shalender and Singh 2015).
Favorable and unfavorable Press or Media
Ford has started using asocial media site known as the Tumblr which is attracting the
younger demographic through the newly launched site. It is the perfect platform where the
company targets to display an eye-catching content of its market strategies in short content forms
like GIF, memes, photos as well as graphics. And is better is the new invention of the Tumbler
where it promotes the new campaign with different names. Ford also uses its Instagram channel
where the content is not found repeated anywhere else. In the channel various cool images of its
luxury and old fashioned cars. Ford is also running a very beautiful campaign in Facebook where
it advertises to show Ford motor the deepest potholes, so that Ford can modify its vehicles
according to the customer preferences and needs. Ford was one of the first companies which had

18GLOBAL OPERATIONS OF FORD
the choice of using the Twitter. Ford uses its Twitter channel to engage various new information
about its engine modifications (Canis and Webel 2013).
Conclusion
From the above study we can draw a conclusion that Ford motor company is still a
growing global automotive company. It is steam –lining as well as also globalizing the
operations so as to introduce more new products which the customer demands. It has also
aggressively restricted all the operations so as to match the production of the demand. It has also
shifted in operating a more balancing product line so as to offer the highest quality keeping in
mind the safety of the vehicles and also the economy of fuel.

19GLOBAL OPERATIONS OF FORD
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