Ford Motor Plc Integrated Capstone Project: Business Analysis Report

This integrated capstone project provides a comprehensive analysis of Ford Motor Plc, examining various aspects of its business operations. The project begins with an executive summary and background of the company, followed by an in-depth analysis of the issues faced by Ford, including financial crises, competition, and market challenges. The analysis delves into industry and competitive landscapes, company resources and capabilities, global strategies, and e-business strategy issues. It also covers diversification strategies, financial conditions, staffing, people management, and organizational structure. The project further explores corporate culture, ethics, communication, and public relations. Finally, the project concludes with a set of recommendations aimed at improving Ford's operational efficiency, financial performance, and overall business strategy, supported by relevant references.

Integrated Capstone Project

SECTION 1: EXECUTIVE SUMMARY
• Improving the operational and financial condition of an organisation on which there have
been necessity of identifying various issues and obstacles which are required to be
governed and monitored with respect to make better determination business issues.
• In the present ppt, there have been discussion based on Ford Motor plc’s ascertainment
regarding the industry, company resources, business strategy issues, ethics, financial
issues as well as policies undertaken by the professionals.
• Therefore, such analysis will be effective for recommending the adequate changes in the
business operations to be made.

SECTION 2: BACKGROUND OF THE COMPANY
• International player in the automotive sector
• Offers various models and types of vehicles such as commercial or utility vehicles,
luxury cars, SUV’s etc.
• Collaboration with various other organisations
• Operating in various nations having 90 plants as well as more than 213,000 workforce

SECTION 3: ISSUES ANALYSIS
There have been various problems which were being faced by Ford Motor Plc:
• The company have been closed due to the financial crisis hitting bankruptcy in 21st
century. It defines that, the financial condition of company was not appropriate and does
not according to business gains and motives.
• It was due to increasing incentives, cost of gaining workforce, soaring, gasoline prices,
eroding market share and an over dependence which decides declining of SUV sales.
• Therefore, due to such issues on which company has dropped various unprofitable and
inefficient models, consolidates the production line, closed off 14 factories as well as cut
30000 jobs.

SECTION 4: DETAILED ANALYSIS
• In analysing the corporate culture of Ford Motor Plc on which analysing various factors
would be adequate in determining the performance of business.
• It can be analysed through competition stated in the market, industrial efficiencies,
financial stability etc. however, these are the issues which can be resolved and effective
in accordance with managing the performance in the right manner.
• It can be adequate in terms of determining the operational growth and profitability
through such analysis on which managerial professionals would become able to make
corrective decisions.

Industry and competitive analysis:
• There has been consistence of worldwide automation of the industries which is consists of various
number of producer with no single dominant producer.
• There are several manufacturers which accounts for the major proportion of sales revenue in
particular countries on which mainly in their regional country.
• However, there have been key competitors of this organisation such as Late Chrysler Automobiles,
GM company, Honda, Hyundai, PSA Peugeot Citroen, Renault, Toyota and Volkswagen AG group.
• Therefore, these are the competitors which are challenging operational practices by their popularity
among consumers, market share as well as product quality and price.
• The consumer satisfaction rate has been considered and measured with respect to have effective
decision regarding designing the product and services and making corrective decisions at the right
time.

Company resources and capabilities:
• Ford Motor Plc is one of the largest company in the automotive industry. It has a huge
number of resources and capabilities.
• The most important resources of the company is its brand image in the global market.
• With the help of its strong image, it becomes able to achieve a larger amount market
share. Further, its strong management system is also its one of the major resource.
• The company also have various capabilities like there green technology system. It helps
it in producing its cars without leading pollution

Global or multinational strategy:
• Being a multinational corporation, it needs to develop a range of global strategies through
which it could enhance its profitability and marketability in the global market.
• For maintenance of sustainability in the global market, company has strong competitive
strategies.
• leads in helping the company in developing the most appropriate selling, marketing and
other financial objectives through which it enhances its positioning in the global market.
• Ford also has strong strategy to enhance its brand equity at global level.
• Company has strong advertising policies through which it enhances its brand equity in all
over the world at attracts maximum amount of customers towards it as well.

E-business strategy issues:
 Ford motor plc started doing e business in late 90's.
 The major issue was enhancement of fear among the members of company of loosing
their job due to computerisation of every activity.
 Further, as at that time, people were not much aware about the latest technologies.
 In addition, making customers to use their websites for buying their product was also a
huge challenge of for in late 90's.
 Therefore, employment dissatisfaction, cost enhancement, training and development
requirement, lack of customer interest was one of the major e business strategies of Ford.

Diversification strategies and the analysis of multi-business
corporations
• Diversification refers to strategy developed by a business for the purpose of
entering into a new market or launching new products in the existing markets.
• Being a multinational business organisation, It is a major requirement of ford to develop
diversification strategies, as diversification helps the business in developing enhancing
the business at global level.
• Ford motor plc has developed diversity policy with the help of which it keeps
researching the need of customers and produce its new automobile products accordingly.
• It leads in attracting larger amount of customers towards it and enhance its sales and
profitability as well.

Financial conditions and financial analysis
Profitability ratios Liquidity ratio
2016 2017 2018
0%
5%
10%
15%
20%
25%
Profitability ratios
Gross profit ratio Net profit ratio
Return on capital employed
2016 2017 2018
1
1.05
1.1
1.15
1.2
1.25
Liquidity ratio
current ratio Quick ratio

CONTD..
Efficiency ratio analysis
2016 2017 2018
0
2
4
6
8
10
12
14
16
Efficiency ratio
Inventory turnover ratio Asset turnover ratio