CHAPTER - 1

INTRODUCTION

1.1 COMPANY PROFILE OF FORD MOTOR COMPANY

Ford Motor Company is based in Dearborn, Michigan, USA and is the worlds fifth largest producer of cars and trucks. Ford Motor Company employs 1, 98,000 people globally. The current Chief Executive Officer of the company is Alan Mulally. Fords annual profits as of 2009 stood at $2.717 billion. Ford owns a stake in Mazda (Japan) and Aston Martin (United Kingdom). The company had owned 75% of Aston Martin for the last couple of decades, and later acquired 100% of the company. Ford also owned Jaguar and Land Rover but sold these British car manufacturers to Tata Motors in 2008. Ford had also sold Swedish automaker, Volvo, to Geely Automobile, which is one of Chinas biggest automobile manufacturers. Ford sold the Swedish automaker for 80,96,54,40,000 rupees. Fords main operations are in the United States, Canada and Europe. Its annual turnover in 2009 was $118.3 billion. It has 90 plants and facilities across the globe. The current Chairman of Ford is William Clay Ford Junior. Lewis Booth is the Chief Financial Officer, Mark Fields is the Executive Vice President and John Fleming is the Executive Vice President of Manufacturing. The cars that Ford produces globally are: Ford E-Series Wagon, Ford Edge, Ford Escape, Ford Expedition, Ford Explorer, Ford Fiesta, Ford Flex, Ford Focus, Ford Fusion, Ford Mustang, Ford Shelby GT500, Ford Taurus, and Ford Transit Connect Wagon. Ford Motor Company, a global automotive industry leader based in Michigan,United States, manufactures and distributes automobiles across six continents.With approximately 176,000 employees and 80 plants worldwide, the company s automotive brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit
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Company. Ford Motor Company, a large United States automotive corporation, strives for success each and every year. The success of Ford Motor Company, as well as other corporations, can be measured by analyzing the two most important goals of management, maintaining adequate liquidity and achieving satisfactory profitability. Liquidity can be defined as having enough money on hand to pay bills when they are due and to take care of unexpected needs for cash, while profitability refers to the ability of business to earn a satisfactory income. To enable investors and creditors to analyze these goals, Ford Motor Company distributes annual financial statements. With these financial statements, liquidity of Ford Motor Company is measured by analyzing factors such as working capitol, current ratio, quick ratio, receivable turnover, average days' sales uncollected, inventory turnover and average days' inventory on hand; whereas profitability analyzes the profit margin, asset turnover, return on assets, debt to equity, and return on equity factors.

One of the leading transnational manufacturers of cars and trucks and even one of the principal providers of automobile financial services, popular modern symbol that affects the economy, ecology and society (2001) is Ford Motor Company. Products are produced in facilities operated by Ford Motor Company and/or joint ventures and Ford itself is a publicly traded company listed on the New York Stock Exchange. There are approximately 328,000 employees and has made an estimated 6.7 million vehicles globally in 2002. There are 25,000 dealers and more than 10,000 suppliers as business partners. For the past years, due to some consequences, the company encountered several challenges. However, with the efforts of gaining back what was lost, there is a significant development in the whole organization. , Jr., popular in his moniker, , the Chairman of Ford Motor Company, assured that the company would distinguish themselves excellently by their efforts to make the world a better place. This is in line with moving the companys vision from concept to reality. A public commitment was made to strengthen connection in the society and play a dynamic part in bringing about the transition to a greater economic, social and environmental sustainability. But before the glorious position of the said company in the marketplace, there were several
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problems that he needed to face. He underwent numerous challenges, dealt criticisms both constructive and destructive in nature, and the dilemma of proving himself. Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, manufactures or distributes automobiles across six continents. With about 164,000 employees and about 70 plants worldwide, the companys automotive brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company Ford Motor Company produces and sells automotive vehicles under the brand names Ford, Mercury, Lincoln, Volvo, and Jaguar. Ford also owns 33.4% of Mazda Motor Corporation and engages in other businesses such as car rental, through its Hertz Corporation subsidiary.

1.2 COMPANY OVERVIEW

The Ford Foundation was established on Jan. 15, 1936, with an initial gift of $25,000 from Edsel Ford, whose father Henry, founded the Ford Motor Company. During its early years, the foundation operated in Michigan under the leadership of Ford family members. Since the founding charter stated that resources should be used for scientific, educational and charitable purposes, all for the public welfare, the foundation made grants to many kinds of organizations. After the deaths of Edsel Ford in 1943 and Henry Ford in 1947, it became clear that the nonvoting stock of the Ford Motor Company they bequeathed to the Ford Foundation would create the largest philanthropy in the world. In response, the foundations board of trustees, led by Henry Ford II, Edsels son, commissioned studies to chart the institutions future. The seven-member Gaither Study Committee, headed by future Ford Foundation president H. Rowan Gaither, a respected San Francisco lawyer, recommended that the foundation become a national and international philanthropy dedicated to the advancement of human welfare. Perhaps most significant, the panel urged the foundation to focus on solving humankinds most pressing problems, whatever they might be, rather than work in any particular field, which, at the time, was the traditional and accepted approach taken by foundations. After thorough review and discussion, the board embraced the report in 1949. A summary
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published and distributed to the public in 1950 recommended support for activities worldwide that:

Promise significant contributions to world peace and the establishment of a world order of law and justice Secure greater allegiance to the basic principles of freedom and democracy in the solution of the insistent problems of an ever-changing society Advance the economic well-being of people everywhere and improve economic institutions for the better realization of democratic goals Strengthen, expand and improve educational facilities and methods to enable individuals to realize more fully their intellectual, civic and spiritual potential; to promote greater equality of educational opportunity; and to conserve and increase knowledge and enrich our culture

Increase knowledge of factors that influence or determine human conduct, and extend such knowledge for the maximum benefit of individuals and society

The report also recommended that the foundation operate under the general guidance of the trustees, with the president and staff officers having a high degree of discretion and the flexibility to respond to unforeseen issues and new opportunities. In 1953, under the direction of Henry Ford II, the trustees took a further step to fulfill the foundations new national and global mission by deciding to base the foundation in New York. The foundation leased space in the city until 1967, when construction of a headquarters building was completed. Diversification of the foundations portfolio was discussed as early as 1949, and divestment of the Ford Motor Company stock took place between 1955 and 1974. Henry Ford II was a key figure in the foundation from 1943 to 1976. Serving variously as president, chairman and member of the board of trustees, he oversaw its transformation from a local Detroit foundation to a national and international organization. He sought in nearly every major decision to create an institution of the highest order to pursue innovative solutions to the problems of humankind. Today, the Ford Foundation, led by Luis Ubias, our ninth president, remains committed to advancing human welfare. Headquartered in New York City, we make grants in all 50 states and,
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through 10 regional offices around the world, support programs in more than 50 countries. Over the years, our trustees have been drawn from the United States, Latin America, Africa and Asia and have brought experience in business, government, higher education, law, nonprofit management and the civic sector with a diversity of approaches and continuity of purpose.Reflecting our charter and the Gaither Study Committee report, our programs continue to serve the public welfare by strengthening democratic values, reducing poverty and injustice, promoting international cooperation and advancing human achievement. Ford is one of the largest automobile manufacturers in the world, with a current market cap of approximately $10.16 billion. The past five years have been particularly unkind to shareholders of American automakers, however, and the equity valuation of both General Motors and Ford Motor has fallen precipitously. Whereas Ford stock traded above $14.00 per share in February of 2005, it closed at $4.00 on April 17th, 2009. Ford experienced record losses in 2008, burning through cash on hand at an unprecedented rate. Ford will likely post continued losses through the 2009 fiscal year, and even optimistic estimates predict that the company will not return to the black until 2011. In 2011 Ford Motor Company completed its third year in a row of improved annual operating profits and announced the reinstatement of paying quarterly dividends for the first time in over five years. In 2012 we will go further to meet the needs of our customers, the challenges of our industry and the issues confronting our world. We believe the result of our efforts will be continuing profitable growth for all of our stakeholders. In the coming year we expect overall industry sales volumes to grow worldwide and we will continue to introduce great products at a rapid pace. At the same time, we will continue our efforts to improve our cost structure and strengthen our balance sheet. The automobile industry continues to face a number of challenges, including ongoing economic uncertainty, rising fuel and commodity costs, and the need to reduce CO2 emissions. In addition, growing worldwide sales volumes, particularly in developing markets, are raising concerns about traffic congestion in major cities. We plan to meet these challenges head on, with best-in-class vehicles that lead in quality, fuel efficiency, safety, smart design and value. We now offer advanced fuel-saving technologies
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across a full line of vehicles, as well as a variety of electrified vehicles. By next year our innovative EcoBoost engine, which delivers up to 20 percent better fuel economy without sacrificing performance, will be available in more than 90 percent of our North America vehicle portfolio and nearly 80 percent of our vehicles globally. We also are intensifying our efforts to develop vehicles that communicate with each other and the world around them to improve safety and reduce traffic congestion. Last year we doubled our investment in the development of wirelessly connected intelligent vehicles and we became the first automaker to build prototypes for demonstration across the U.S. As we did to address concerns about sustainability, our Blueprint for Mobility plan directs our future efforts and investments in this area, so that we will be the leader in wireless communication technology

1.3 HISTORY OF FORD MOTOR COMPANY

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Ford Motor Company is one of the greatest automobile manufacturers of all time. They started under Henry Ford in Detroit, Michigan. Ford had a skill for craftsmanship when he built an experimental car in 1896. It was a twin cylinder engine with potential of 20 mph. In 1899 he left his job in order to organize the Detroit Automobile Company. Ford's first production was in 1903, the Model A, with an under the floor engine selling for $850. In the first season it sold 1,708 cars. Thereafter, Ford became increasing interested in speed. He built an experimental racing machine called the 999, which reached 91.4 mph in 1904. He also produced the Model C the same year only later introducing the Model B for $2000. These models were improved in 1905 with the Model K that sold for $2500. In 1906 Ford introduced the Model N for $500 destroying Oldsmobile's business, while only leading to the introduction of the famous Model T in 1909. The Model T, or Tin Lizzie, became extremely popular for the next 18 years due to its price of $850, fuel consumption, engine size, and speed in the 40-mph range. More than 15 million cars were made under Ford between 1908 and 1927. It became the all-American automobile. Production increased rapidly over the years while recalling their first million-car year in 1922. As Ford continued to produce they expanded into Great Britain, France, and Germany. Ford became a strong automobile company but needed change as they realized their only color was black. In 1927 the Model T left the market only leading to new and highly innovative automobiles to be created. The Model A became the next popular car but caused a three-month changeover period while production occurred. The price of the Model A was $450, while 4.5 million were sold in the next four years. The car was also sold in a station wagon offering a change in style and shape. In 1932 a V8 3.6 litre automobile was mass-produced for $460 creating a great demand for Ford automobiles. Many cars were introduced over the years featuring new styles. The Model A and B were both sold with larger engines and greater amounts of horsepower. Also hydraulic brakes, column changes, and suspensions were introduced to better the company's profits. After World War II production slowed down until the entrance of the 1949 line. At this time power units were new along with the automatic transmission in 1950. Great automobiles were
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manufactured in the coming years. The sporty Ford Thunderbird was introduced with 5.1 litres and capabilities of 113 mph. In 1958 it became a convertible with five seats and a strengthened structure. Major restyling occurred in the late 1950's with such automobiles as the Falcon, a compact car, with the help of General Motors and Chrysler. During the 1960's competition increased and Ford had to become innovative in order to remain one of the top manufacturers. They put their minds together to create the Ford Mustang in 1964, a compact semi GT with four seats, at a price of $2480. The automobile had a 4.7 litre V8 engine with speeds exceeding 110 mph. The car was a great success and remained so until the present day selling over 500,000 in the first year and a half on the market. During the coming years Ford realized its potential. They have created some great cars including the Thunderbird, Model T, Fairlaine, Galaxie, Falcon, and Mustang. They have also increased their production well into the 1980's and further with the offerings of four wheel drive pickup trucks and all terrain vehicles such as the Bronco, Jeep, F series, and Ranger. They became increasingly aware of needs for change such as colors, convertibles, hardtops, and number of doors. With increased production, innovative styles, low prices, and customer satisfaction Ford Motor Company has become a worldwide leader in the manufacturing of automobiles

The Ford Motor Company has a rich history with over 100 years of experience and a plethora of famous vehicles and company success. Ford was founded by Henry Ford and various investors in June 1903 the company then went on to design and produce the first Ford automobile, the Model A Fordmobile (pictured). This one vehicle helped to secure Ford as a leading and extremely popular US car company and by 1906 they were selling on average 8,500 cars per year. Although this figure may not seem large by todays standard; in 1906, a time with hardly any roads and even fewer cars, 8,500 was a goliath figure. On the back of the companys success, an English production plant was opened in Manchester. This helped to establish the company within the European market and was a great opportunity for company expansion.

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During the war, Ford developed military use 44 vehicles, including the Ford GP 1941 (pictured). These were the first Fords to have a metal grille above the front bumper, a practice that has been adopted by most modern 44 manufacturers today. After this time, Ford became a global leader for car manufacturing, with worldwide production set at approximately 1.68 million vehicles. From 1955 onwards the company started to develop Thunderbirds or T-Birds (pictured below) that became all the craze due to the rock and roll culture that was developing in the 1950s. These models were available as convertibles with the top smoothly lowering into the boot area. The companys success at this time allowed them to establish more of a European presence and in 1977 allowed them to buy significant shares in Mazda, Aston Martin, Hertz-Rent-a-Car and Jaguar. In the nineties the company went on to make highly popular vehicles, such as the Ford Explorer, Ford Aspire, Ford Tempo and Ford Focus. This latter model became a huge success due to its excellent handling, rear suspension and passenger comfort. In 1999 the company continued to grow and even acquired the Volvo car division and the rights to Land Rover from BMW. Ford is now set to enter the low-carbon car market with electric and hybrid vehicles, which should be available by 2013. At present there are plans to develop up to 5 vehicles in Europe, some of which will be commercial vehicles. One of these commercial vehicles will be an adaption of the classic Transit van but with a pure electric motor, which produces zero CO2 emissions. These vehicle should be available to buy at some point in 2011 and the company also has plans to release a Ford Focus Electric in 2012.

In 1899, Henry Ford founded the Detroit Automobile Company. In 1901 the company failed and it was re-launched as the Henry Ford Company in the same year. The first car that Ford manufactured was the Model A in 1903. By 1906, the Model N was produced. However, the first simple, affordable car that Ford produced was the Model T. The Model T was a car for the
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middle-class American and was the first car to be produced on the assembly line. It also had interchangeable parts. In 1902 Henry Ford left the company due to some misunderstandings and the Ford team changed the company name to Cadillac. Henry Ford still had rights to his name and 900 dollars of cash which he used to start another company under his name. Ford with the help of the coal dealer Alexander Malcomson, founded another company called Ford and Malcomson Company and the pair designed their first car.

In their efforts to raise more money, Malcomson contacted his uncle John S. Gray. Malcomson wanted Gray to join the Ford and Malcomson because he was a well-known investor and following his entry to the company, other investors would also pay attention to this new company. Malcomson succeeded as Gray agreed to join the company. Following Grays entry, Albert Strelow, Vernon Fry, John Anderson, Horace Rackham, Charles Bennett and James Couzens joined the company. In 1903, the Ford Motor Company was incorporated, with 12 investors owning a total of 1000 shares. Ford and Malcomson retained 51% of the new company in exchange for their earlier investment. Gray was elected president, Ford was elected as the Vice-President and James Couzens was elected as the secretary of the company. In 1914, Ford produced 3, 08,162 cars. In 1927, by the time the last Model T was built, the company produced an automobile every 24 seconds.

1.4 COMPANY VISIONS, VALUES AND MISSION

Ford has a vision to become one of the world's leading consumer companies for automotive products and services. Apart from that, its vision is to provide personal mobility for people all over the world.

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Four goals of Ford are:

To be a consumer-needs driven company. To respect and value each team members contribution. To be an environmentally responsible company that lives up to the standards of society. To constantly improve in everything the company does.

In an effort to become socially responsible, Ford also established its electric vehicle line, with the first car being the Ford Ranger Electric Vehicle. This car operates on batteries and thus does not cause pollution.Ford believes that quality comes first. Their goal is to achieve
customer satisfaction by providing customers products of high quality and good service. They also believe that customers are the focus of everything the company does. They aim to provide better products than their competition. Their goal is to strive for excellence in everything they do. They uphold the highest standards of employee satisfaction by treating their employees with trust and respect. To move their business forward, Ford aims to maintain healthy relationships with its vendors and business associates. The company does not discriminate against people of different caste, race, sex and religion.

The Ford Motor Company Mission Statement: People working together as a lean, global enterprise for automotive leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community Satisfaction 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

1.5 COMPANY FOUNDERS

Henry Ford, the founder of Ford Motor Company, was born in 1863 to a farmer in Dearborn,
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Michigan. He was the first of six children in his family. He worked in the nearby town of Detroit as a machinists apprentice and then he came back to his town and worked in a small machine shop there. Ford married Clara Bryant in 1881. He incurred a lot of expenses in his marriage due to which he joined the Edison Illuminating Company in 1881 and worked 24 hours a day to pay his bills. After that, Ford founded the Ford Motor Company with his invention of the internal combustion engines and the Quadricycle, a carriage that ran on gasoline and four bicycle wheels. Ford made some inventions and took some decisions that affected the sales of the company. Ford founded the popular V-8 Engine. He decided that Ford cars would be manufactured only in black which led Ford Motor Company to trail behind General Motors in its production numbers as General Motors produced cars of different colors which led to higher sales of General Motor cars as people preferred those cars.Henry Ford died in April 7, 1947. The current Chairman of Ford is William Clay Ford Junior.

1.6 PRODUCTS AND SERVICES

AUTOMOBILES As of 2012 Ford Motor Company sells a broad range of automobiles under the Ford marque worldwide, and an additional range of luxury automobiles under the Lincoln marque in the United States. The company has sold vehicles under a number of other marques during its history. The Mercury brand was introduced by Ford in 1939, continuing in production until 2011 when poor sales led to its discontinuation. In 1958, Ford introduced the Edselbrand, but poor sales led to its discontinuation in 1960. In 1985, the Merkur brand was introduced in the United States to market products produced by Ford of Europe; it was discontinued in 1989. Ford acquired the British sports car maker Aston Martin in 1989, later selling it on March 12, 2007, although retaining a 15% stake, and bought Volvo Cars of Sweden in 1999, selling it
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to Zhejiang Geely Holding Group in 2010. In November 2008, it reduced its 33.4% controlling interest in Mazda of Japan to a 13.4% non-controlling interest. On November 18, 2010, Ford reduced their stake further to just 3%, citing the reduction of ownership would allow greater flexibility to pursue growth in emerging markets. Ford and Mazda remain strategic partners through exchanges of technological information and joint ventures, including an American joint venture plant in Flat Rock, Michigan called Auto AllianceFord sold the United Kingdom-based Jaguar and Land Rover companies and brands to Tata Motors of India in March 2008.

TRUCKS Ford has produced trucks since 1908. Countries where Ford commercial vehicles are or were made include Argentina, Australia, Brazil, Canada (badged Mercury too), France, Germany, India, Netherlands, Philippines, Spain (badged Ebro too), Turkey, UK (badged also Ford sonand Thames) and USA. From the 1940s to late 1970s Ford's Ford F-Series were used as the base for light trucks for the North American market. Most of these ventures are now extinct. The European one that lasted longest was the lorries arm of Ford of Britain, which was eventually sold to Iveco group in 1986, and whose last significant models were the Transcontinental and the Cargo.In the United States, Ford's heavy trucks division was sold in 1997 to Freightliner Trucks, which rebranded the lineup as Sterling. Freightliner is in the process of discontinuing this line.

BUSES Ford manufactured complete buses in the company's early history, but today the role of the company has changed to that of a second stage manufacturer. In North America, the E-Series is still used as a chassis for small school buses and the F-650 is used in commercial bus markets. In the 1980s and 1990s, the medium-duty B700 was a popular chassis used by school bus body manufacturers including Thomas Built, Ward and Blue Bird, but Ford lost its market share due to industry contraction and agreements between body manufacturers.

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TRACTORS The "Henry Ford and Son Company" began making Fordson tractors in Henry's hometown of Springwells (later part of Dearborn, Michigan from 1907 to 1928, from 1919 to 1932, at Cork, Ireland, and 19331964 at Dagenham, England, later transferred to Basildon. They were also produced in Leningrad beginning in 1924. In 1986, Ford expanded its tractor business when it purchased the Sperry-New Holland skid-steer loader and hay baler, hay tools and implement company from Sperry Corporation and formed Ford-New Holland which bought out Versatile tractors in 1988. This company was bought by Fiat in 1993 and the name changed from Ford New Holland to New Holland. New Holland is now part of CNH Global

1.7 EXPAND MARKET SHARE IN CHINA AND INDIA

The Chinese automobile market has experienced consistent growth in the past ten years,and 2008 industry sales surpassed the United States for the first time with nearly ten million vehicles sold. Ford currently holds agreements with Changan Automotive of China; through their joint venture Changan Ford the companies manufacture the Ford Focus, Fiesta, and Mondeo lines. In 2008, this joint venture sold approximately 204,000 vehicles.

As a result of a recent stimulus package passed by the government, Chinese demand for vehicles is expected to rise by nearly 20% in the year 2009. China is the only major market in which sales growth, let alone growth of this magnitude, is expected. Yet Ford currently holds only a meager two percentage points of market share in China.The Ford Fiesta is already experiencing strong sales in China, and we believe that this vehicle is the key to enhancing Fords market share. We at Oasis believe that sales of the sedan and hatchback Fiesta models combined should surpass the 100,000 unit mark and significantly boost Fords overall 2009 China sales.

Given the economic incentives provided by the

Chinese government and GMs ongoing

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difficulties, we believe now is the opportune time for Ford to make a full push to steal market share in China and establish itself as the dominant American brand.

While there is inherent risk to this strategy, we believe that a narrow window of opportunity exists for the company to overcome its poor start in the Chinese market. India is a much smaller market, with industry sales holding steady at two million over the past two years. After twelve years within the Indian market, Ford has little progress to show. Unlike China, Ford would need to make a significant capital investment into the Indian 78 Indian cities. market if it wished to ramp up production. Monthly sales only recently exceeded 2000 units, and Ford only has dealerships in

Given the current economic uncertainties, we do not believe that Ford should invest significant capital in the Indian market at this time. Once the global economy has stabilized, however, we believe Ford should revisit this question and seek to expand its operations in India.

CHAPTER 2
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GLOBAL STRATEGY

2.1 THE COMPANY FOLLOWS A GLOBAL STRATEGY:

Production of a standardised vehicle, which can be sold in multiple markets

Co-ordinate operations around the world

Sourcing suppliers and choosing assembly locations depending on costs

Taking over rival companies, or creating mergers and alliances

2.2 WHY FOLLOW THIS GLOBAL STRATEGY?

Allows them to produce one car for all world markets

Cut development costs as a result of knowledge sharing

Allow them to allocate resources wherever they were needed to best serve market needs

Ultimately allow them to establish a dominant global presence

Maximise sales around the world

Beat competitors, become market leaders

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Lower costs and increase economies of scale

Allows them to standardise advertising for one type of car

Get around trade barriers which may have been put in place to protect home markets

Reducing costs by gaining access to cheaper labour and raw materials

Be closer to large markets and potential customers

Fords business strategy is embodied in our ONE Ford plan. ONE Ford expands on our 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. Building on this plan, ONE Ford encourages focus, teamwork and a single global approach, aligning employee efforts toward a common definition of success. It emphasizes the importance of working together as one team to achieve automotive leadership, which is measured by the satisfaction of our customers, employees and essential business partners, such as our dealers, investors, suppliers, unions/councils and the communities in which we operate. We have defined a set of behaviors that are expected of all employees to support the ONE Ford plan. The goal of ONE Ford is to create an exciting and viable company with profitable growth for all. The output of ONE Ford is: Great Products, defined as those that are high quality, green, safe
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and smart. Strong Business, based on a balanced portfolio of products and global presence; and Better World, accomplished through our sustainability strategy. As detailed in the Financial Health section, Ford has made a remarkable turnaround over the last several years, fueled by disciplined adherence to the ONE Ford plan and resulting in the reinvention of our Company as a highly competitive force in the global automotive industry. Looking ahead, industry-wide vehicle sales are expected to rise significantly in the next few years, driven by accelerated expansion in developing markets, recovery in mature markets and sales of smaller and more fuelefficient vehicles. We expect our sales to increase to about 8 million units by mid-decade, up about 50 percent from 5.3 million units in 2010. By 2020, nearly one-third of our sales will come from the fast-growing Asia Pacific and Africa region, more than doubling the current percentage of global sales volume we achieve in that region.

2.3 MARKETING STRATEGIES OF FORD

PRODUCT DIFFERENTIATION BASED ON OPERATIONAL EFFICIENCY

Ford tries to differentiate its offer onthe plank of service. It has gone in for a new norm in customer service.Ford is also supplying videotapes showing how repairs have to bedone. ADOPTING OFFER TO SUIT TARGET SEGMENT

Ford modifies its models for India: Ford modified its models for the Indian target segments as shown below: Higher ground clearance to make the car more compatible to the rougher road surface in India. Stiffer rear springs to enable negotiating the ubiquitous patholes on Indian roads. Changes in cooling requirement, with greater airflow to the rear. Higher resistance to dust. Compatibility of engine with the quality of fuel available in India. Location of horn buttons on the steering vehicles. (As the India motorist uses the horn more frequently, for cars sold in India, the horn buttons are kept on the steering wheel and not on a lever on the side as in the models sold in Europe.)
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STRATEGIC SEGMENTATION OF CARS

The Ford in India has launched the car only for few segment of people. The segmentation of car buyers based on price preferences are Family car segment These cars forms a reasonably sizeable segment of the market(around 15 percent).Preferred price range is from 5 lakh to 6 lakh. ford ikon and ford fusion come under this type of segment.

Premium car segment This segment represents buyers who need a real world-class car and are willing to pay the due price. Preferred price range starts from 8 lakh to 12 lakh.FORD FIESTA, FORD MONDEO come under this segment of cars. SUV segment The buyers of this segment like to have a big vehicles. And these cars are also useful for sport riding and even on hill areas. There body is designed similar to off road vehicles, which can withstand to Indian roads. ford endeavour occupies this segment.

2.4 MARKETING STRATEGY AND ANALYSIS:

A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Any organization that wants to exchange its products or services in the market place successfully should have a Strategic Marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organizations overall corporate strategy and serves as a guide for specific marketing programs and policies. Marketing strategy is based on a situation analysis- a detailed assessment
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of the current marketing conditions facing the company, its product lines, or its individual brands. From this situation analysis, a firm develops an understanding of the market and the various opportunities it offers, the competition and the market segments or target markets the company wishes to pursue. Marketing strategy is the complete and unbeatable plan, designed specifically for attaining the marketing objectives of the firm/business unit. The marketing objectives indicate what the firm wants to achieve; the marketing strategy provides the design for achieving them. For example, if the marketing objectives of a business unit stipulate that next year, it should achieve a sales revenue of Rs. 1,000 crore and a net profit of 15 percent of sales revenue, it is the job of marketing strategy to indicate how and wherefrom this sale and profit will come, which product lines/products/brands will accomplish this task and how.M a r k e t i n g s t r a t e g y f o r m s a n i n t e g r a l p a r t o f m a r k e t i n g p l a n n i n g . A m a r k e t i n g strategy is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. It is partially derived from broader corporate strategies, corporate

missions ,a n d c o r p o r a t e g o a l s . A s t h e c u s t o m e r c o n s t i t u t e s t h e s o u r c e o f a c o m p a n y ' s r e v e n u e , marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

2.5 FORD MOTOR COMPANYS ONLINE MARKETING STRATEGY

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MotionPoint client Ford Motor Company has spent the past three years engaging customers using an impressive, progressive digital marketing strategy. The carmaker's efforts are paying off: Ford's U.S. sales are up nearly 22 percent this year. That's "twice the growth rate of the industry overall," according to a recent Reuters story featuring the company. Thanks to the company's commitment to creating resonant relationships with consumers, resources, and hiring online-savvy marketers such as Scott Monty (Global Digital and Multimedia Communications Manager), Ford has quickly become a leading brand within the digital marketing and social media spaces. Through deft and fleet-footed use of free platforms such as Twitter, Facebook, YouTube and other content-driven online campaigns, Ford has successfully addressed PR challenges, created unified, yet diverse messages to attract different customers, and embraced an "accessibility and transparency" strategy that has successfully increased consumer interest in the brand. The impact has been so positive that Ford's marketing chief Jim Farley suggests the company's money is better spent on online promotion than on ultra-expensive ad buys, such as those played during the Super Bowl. "Customers are spending as much time with the mobile smart phone or online as they are watching TV now, so our advertising dollars have to flow to where the people are," Farley told Reuters. The goal, he explained, is to successfully "break into their world." That requires an understanding of the public's perception of your brand, the vision to change if it needed, and a commitment to executing clever ways to achieve it. Ford saw the opportunity in the digital marketing space. It invests 25 percent of its advertising budget on digital media, Reuters reports. It's also crafting resonant messaging within those advertisement with different niche consumers. "Ford is playing up the new elements in its product line-up," Reuters wrote, "both new vehicles and new technology like the MyFord Touch system for navigation, entertainment and communications in campaigns that include videos for Google's YouTube."

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Ford's online advertising is also focused on connecting with the right consumers. For instance: the brand connects with technology enthusiasts who watch or listen to This Week In Tech, one of the most popular independently-produced technology programs on the web. Tech-driven product features such as MyFord Touch are often promoted. Ford also leverages the relationships that online influencers such as prominent bloggers have with their audiences. In 2009, Ford built relationships with such thought leaders and entertainers to help promote the U.S. release of its Fiesta subcompact car. Not long after, Ford leveraged the ubiquity of Facebook to present new product features to fans, long before traditional press opportunities (such as car shows) were available. The takeaway from Ford's marketing success is clear: present a relevant message where consumers are, and where they interact ... and can amplify your message. It's working for Ford -its brand image has improved since it launched this progressive strategy. According to ALG, a firm that tracks consumer perceptions, Ford vehicles "lead all brands in gains in perceived quality since 2008," Reuters reported. "Everyone is involved in digital marketing," consumer auto consulting expert Charlie Vogelheim told Reuters. "The extent that Ford is doing it, wrapping it around events and utilizing the media with its launches, that is where Ford is taking leadership."

2.6 FORD IMPLEMENTS GLOBAL SOLUTION TO MANAGE EMISSIONS

One of the worlds leading vehicle manufacturers, Ford Motor Company regards environmental performance as a business priority. It undertook a project to standardise reporting and management of carbon emissions internationally. Logica and CarbonSim implemented a solution that centralised reporting and aligned emissions management with business goals. This has since been extended to cover other environmental metrics including energy, waste and water. THE BUSINESS CHALLENGE
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Ford Motor Company manufactures and distributes vehicles in more than 200 markets across six continents. Each manufacturing site produces vast amounts of data on carbon emissions and other environmental aspects. This needs to be standardised and collated for legislative compliance and emissions management purposes.

Environmental assets and liabilities must now be regularly reported on, and can be openly traded between companies under regulations such as the EU Emissions Trading Scheme (ETS) and through voluntary arrangements such as involvement in the Chicago Climate Exchange. Ford had an immediate need for a solution to meet a growing pressure of legislative reporting requirements, as well as to develop a consistent companywide approach to managing and reducing carbon emissions. This initially involved collecting and collating data across 54 manufacturing plants throughout Europe and the US. THE SOLUTION Logica and CarbonSim worked closely with the Ford environmental team to rapidly deploy the EMISSIONS logic solution to cover dozens of sites in Europe and the Americas. EMISSIONS logic is a comprehensive emissions management solution that has enabled Ford to track greenhouse gas emissions and compliance against obligations as well as manage emissions allowances. It can also be used to evaluate strategies and projects for emissions reduction and generate internal and external reports. As a result, Ford has been able to achieve a consistent approach to managing emissions across multiple manufacturing facilities, regulatory regimes and emissions calculation methodologies. A quickly realised benefit has been time savings related to tracking and managing large quantities of data to satisfy complex reporting requirements. This allows Ford to spend more time and effort on environmental improvements instead of data management. The solution has since been extended, in line with Fords specific requirements, to cover comprehensive plant-specific metrics including energy, water, waste and overall performance
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against environmental objectives and targets. A regulatory module was also added which allows Ford to store facility and regional environmental regulations to support manufacturing operations.

2.7 COMPANY EXPORTS

In 2007, Ford India manufactured Ford Fiesta and exported the car to South Africa. The company exported 5,000 units of the car that year. Ford India is exporting the Ford Figo to South Africa. By mid-July 2010, the company exported 1,200 petrol and diesel engine Figo vehicles to South Africa. By the end of 2010, the company had exported 5,000 Figos to South Africa, said Ford Indias managing director Michael Boneham. Between January 2011 and April 2011, Ford India had exported 1,167 units of cars. Total exports of Ford India up to May 2011 are 42,395 vehicles. Ford had set up its production facility in India in 1996. The Ford products are generating a lot of buzz in the international markets. As per the international markets, Ford Philippines hit 950 million dollars in export revenues up to 2010. Its cumulative exports are 75,000 units. Between January November 2010, the company exported 9,092 units. The Sta Rosa factory in Philippines has a production capacity of 15,000 units out of which it exports 10,000 units and sells the rest 5,000 cars in the country. This facility exports the Ford Escape, Focus and Mazda.

2.8 FORDS NEW PRODUCT STRATEGY

A year after taking over from Bill Ford, Jr. as president of the Ford Motor Company, Alan Mulally has gone public with the overall outline of Fords new product strategy. Dining with reporters recently, Mulally, joined by the head of Ford product development, Derrick Kuzak, and other executives, said what to expect from Ford over the next few years. First, Ford will be cutting the number of separate platforms on which it builds vehicles by 40%
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from the current level. Moreover, 70% of its production will be based on only 10 platforms. Second, it will reduce the number of separate six cylinder engines in production from eight to two. The number of seat frames will drop from 28 to 2. Mulally referred to these moves as the all-time opportunity. Third, Ford will not attempt to market a global luxury brand. It is, as is well-known, selling Jaguar and Land Rover. It will not attempt to move any Ford product into that segment of the market. Mulally pointed out, in this context, that other automakers who have tried to move into the luxury market have failed, specifically citing Volkswagen as an example. Fourth, Mazda is a part of Fords core strategy. Ford owns the controlling interest in Mazda and has already, in some, instances integrated Mazda platforms into the Ford product line. Mulally said that Mazda is part of our plan going forward. That, of course, is what Mulally sees as the future. The reality today is that Fords market share fell in July to 12.5%, down about %.

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2.9 FORD MOTOR NEW PRICING STRATEGY

Price is not just a number on a tag. It means everything to a manufacture like Ford Motor, because price is related to Ford's income, cost, revenue, employee benefit and etc. Price is the only one element of the marketing mix that produces revenue; the other elements produce costs. Ford Motor must understand making a proper pricing strategy is very important. The relationship between price and demand is the higher the price, the lower the demand. As we all known, automotive market is price sensitivity, because automotive is expensive for most customer, customers are less price sensitive to low-cost items. The higher the elasticity, the greater the volume growth resulting from a 1 percent price reduction. If demand is elastic, sellers will consider lowering the price. A lower price will produce ,ore total revenue. Throughout most of history, prices were set by negotiation between buyers and sellers. But in 21 centre there are many types of pricing strategies that can be used for a certain product or service. First is 'premium pricing' that uses high price and uniqueness within a product or service. Second is 'penetration pricing' wherein prices are artificially low in order to gain market share. Third is 'economy pricing' wherein the cost of marketing and manufacturing are both kept low. Fourth is 'price skimming' wherein there is high price for a substantial competitive advantage. Fifth is 'optional product pricing' wherein the initial goal is to increase customer through optional extras. Sixth is 'captive product pricing' wherein companies charge premium prices where the consumer is captured. Right now Ford is facing elastic demand and also facing pressure of lower profit margins. Ford has to maintain penetration pricing in order to improve the capacity utilization and to withstand the competition.

2.10 COMPANY TECHNOLOGY

Ford has launched two new technologies: the global avatar and the Sync. The Sync is in collaboration with Microsoft. The global avatar is in an effort to reduce costs. Ford has launched an animation technology which allows the company to create a global avatar
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that will design the car in an online environment. This will allow the company to design and test many parts of the car without incurring the huge costs of physical building and testing. The avatar will assemble the vehicle parts and build a digital prototype. Ford has also launched a technology called the Sync. The Sync is developed by Microsoft and is a voice-control technology that allows the user to give commands via voice. The system listens to the commands and gives the output. For example, if you want directions to a restaurant near your house, you speak out Please find the way to Pizza Hut and the Sync technology system will process your voice and give you directions. Sync also changes radio channels and updates your Twitter status when you tell it to. It works with Mapquest for directions, Pandora for radio and the iPod, for music. Alan Mullaly, Chief Executive Officer of Ford feels that this new technology will improve sales of Ford vehicles and plans to introduce this technology in many new models of the car. If you are stuck on the road and have a flat tyre, or if you are alone in some area and need protection, you can call 911 from Sync.

Unfortunately, the Sync is not available yet in Indian models. Sync is offered in 14 Ford vehicles in North America, 5 Lincoln vehicles and the Mercury Milan. It is available as an add-on at a retail price of $395, according to the company.

2.11 COMPANY FUTURE PLANS

Ford plans to bring more global products to the Indian market which will increase its sales thereby making up for its dull sales in Europe and the United States. The car manufacturer plans to launch a new car every 12-18 months in India and open 28 dealerships.

Ford plans to convert India into an export hub for the Figo and launch new models in India. Ford
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is also planning to invest more money in operating production plants, dealerships and customer sales in India. Apart from making India the export hub Ford also plans to invest US$ 350 million on the JV truck in Thailand in partnership with Mazda.

Ford announced a 1million scholarship program called the Ford Blue Oval Scholarship Programme for sponsoring university students in 2011. The great grandson of the worlds fifth largest car manufacturer, Mr. Ford started this program in order to sponsor each student for each year that Ford has been in Britain, which is a total of 100 years.

The program will be funded by the Ford Motor Company Fund, which is an arm of Ford Motor Company and Ford of Britain. Ford Fund is working with the Society of Manufacturing Engineers Education Foundation in order to fund this program.

2.12 SUPPLY CHAIN

Fords suppliers are critical allies in helping us to achieve success in the marketplace and meet our sustainability goals. We maintain long-term relationships with our suppliers and seek alignment with them on sustainability-related issues such as greenhouse gas emissions and human rights. The basis of our work with suppliers is the Ford Code of Basic Working Conditions. This Code was formally adopted in 2003 and applies to our own operations as well as our $65 billion supply chain. We work to ensure that Ford and our suppliers have management systems in place to mitigate potential risks, ensure continuity of supply and improve the overall sustainability of the complex global automotive supply chain. Our aim is to leverage our supply chain and our industry to make a positive impact in the markets in which we do business. We take a threepronged approach to engagement with suppliers on sustainability issues: Building capability at individual supplier facilities:

We work with suppliers to encourage the management of sustainability issues. We conduct

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supplier training supported by assessments and remediation at individual factories. Engagement with strategic suppliers:

Ford and our strategic production suppliers work together at the corporate level to align and enhance approaches to a range of sustainability issues. Collaborating with peers in the automotive industry:

To achieve truly lasting change, we are leading work with our counterparts in the automotive industry, often through the Automotive Industry Action Group (AIAG), to develop common approaches to a full range of sustainability issues. In 2010, Ford initiated a holistic risk assessment of direct and indirect raw material supply chains. Ford feels strongly that stakeholders, will be required human cooperation within industry, as well as with multiple

rights and environmental impacts of mining and other raw material production processes.

2.13 FORD'S GLOBAL STRATEGY

Ford's international operations were a source of strength that allowed the company to maintain its position as the second largest auto maker in the world and to respond to GM's competitive moves. During the worst years of the industrial recession in 1970s, those operations provided the cash that saved the company from bankruptcy, and gave it key products that were essential to stem its competitors' moves while it invested in new product development. Today, and even if its US operations still represent the bulk of Ford's total operations and world assets, its foreign operations still make substantial contributions to the company's strong performance and leadership in the industry. the company's long-term strategy of adopting the industry's new best practice of production and the strategic importance of its US operations (as production site, market, and source of revenue) explained the paradox that Ford did not fully utilize the advantage of having an extensive network of foreign operations, which were also superior to its competitors. Once Ford decided to use its foreign assets in order to maximize efficiency it did so on a trial-and-error basis.

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It was not until April of 1994, when Ford 2000 was launched, that Ford undertook the most comprehensive worldwide reorganization ever undertaken by the company. The underlying aim was to transform the company's organization from one based on regional profit centers to a global car-manufacturing business organized by product line. The program was built on the basis of several organizational reforms and innovations that had been previously introduced to exploit corporate competencies throughout Ford's network of subsidiaries around the world. In the year 2000 that global strategy was again modified to recuperate Ford's regional competencies, which had traditionally constituted the basis of that company's strength in different markets around the world. The global organization that managed global priorities in manufacturing, purchasing processes, and technology resources and platforms, introduced by Ford 2000, was maintained. The last organizational changes introduced at Ford are so recent that it makes it difficult to evaluate how the company's worldwide operations are presently structured. Assessing the extent to which a multinational enterprise has succeeded in implementing a global integration strategy is further complicated by the different views that exist about the meaning of such strategies.

2.14 STRATEGIC RECOMMENDATIONS

The following strategic recommendations are designed to address short run and long run problems facing the company. We believe that Ford faces three distinct challenges: 1) The need to minimize cash burn and bring costs down as quickly as possible in order to stay afloat in this difficult economy. Losses must be brought under control by 3Q 2009 or the company will face extremely difficult choices regarding its future. 2) The bailout of General Motors and Chrysler has placed Ford in a strategically difficult position. While Ford is currently in a much better financial position than GM or Chrysler, government funding of these competitors generates significant risk. A highly managed bankruptcysuch as the one being proposed for GMmay lead to a significant GM cost advantage, thereby mitigating all of the progress Ford has made in recent years. In addition, any
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bankruptcy or liquidation could seriously disrupt Fords supply chain. 3) Ford must execute the One Ford vision and continue to differentiate itself from its competitors even as the economic crisis unfolds. The failure of One Ford or the Ford Fiesta model would be disastrous for the company. In recent years, Ford has redeveloped a coherent corporate strategy.

CHAPTER - 3 SWOT ANALYSIS

3.1 INTRODUCTION
SWOT analysis is a very useful technique, which is opted by almost every organization nowadays. It gives the detail idea of where the company has competitive advantage and where it is lacking. SWOT analysis of Ford Motor Company also focuses on these factors, which are explained below:

3.2 STRENGTHS
Ford Motors recorded the strongest as well as effective operation performance in 2005 Ford motors is the second largest automobile manufacturer Ford Motors is termed as one of the supportive tool after various attacks Ford Motors is one of the best auto manufacturer which are offering credit services Ford Europe along with PAG also known as premier automotive group also recorded the strongest revenue in year 2005

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 Extensive supply chain is the leading and the best contributor towards the betterment of the company Ford motor is termed as the best manufacturer in terms of diversity

3.3 WEAKNESSES
Due to the competition with the Japanese company, Ford Motors suffered a lot and thus went far away from fuel based light trucks Due to the product recalls, Fords brand image was also harmed and thus the company suffered a lot Cash reserves was ruined to around $4.1 Billion Ford Motors stock prices suffered greatly to $14.70 Ford motors suffered lack of diversification Ford Motors have a very small share of market which results in a great loss to the company Various obligations are termed as the weakness of Ford motors

3.4 OPPORTUNITIES
Restructuring plan was launched in order to improve the performance of the Ford Motors Various products were predicted to switch towards the hybrid electric engines

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 Ford tried to diversify their market towards India and china in order to diversify their revenues Ford motor is termed as environment friendly Generosities is one of the best opportunity which results in betterment for the company Well researched programs are under consideration in order to gain more popularity Other companies doing well oriented task is also the greatest opportunity for Ford Motors

3.5 THREATS
Rising oil prices are one of the major contributor towards the loss of the company Rising raw material prices Rise in competition is one of the major threat towards the productivity of the company Another important threat for Ford Motor is the low capital spending Other automobile manufacturers ideas and programs are the biggest threat for Ford Company Competition is one of the major threat. Ford Motor is thus trying to generate automobiles with best technology in order to minimize this Working with different techniques is one of the major threat

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CHAPTER - 4 CONCLUSIONS

4.1 SUGGESTION
Ford Motor Company takes a substantial risk when we review non-patented ideas from outside of the Company. A mere idea is not valuable until a significant amount of money is invested developing it, so we must be extremely cautious about which ideas receive funds. In addition, ideas that are submitted to the company may already be disclosed in prior literature and patents, may have been previously considered or already developed by us, or we may be developing an idea that is similar to your idea. This can cause confusion about the origin of the idea. We must be able to prove that our idea was developed independently of your idea. Determining who developed what aspects of an idea can be a complex and time-consuming process involving hundreds of people. There is considerably less risk if we develop ideas from the people we employ. In fact the vast majority of the ideas used by Ford Motor Company originate with our employees or suppliers.

4.2 RECOMMENTATION
TNCs are the dominant institutions of our time They are driving the process of economic globalisation
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Growing opportunities presented to TNCs due to globalisation

In conclusion, to think that this company, one mans dream, has made it through the Depression, recession, market crashes, and bailouts, is not just interesting it is amazing. Ford Motor is the ultimate American dream come true, that also helps others dreams come true. This dream come true is why immigrants migrate to America; and why so many others die trying. Ford has definitely earned its place on the Fortune 500. The Ford Motor Companys mission is clear; they will do what it takes to keep consumers, community, education, and hope alive in America (Ford Motor, 2011). Although Ford Motor Company is one of the largest companies in the world, we can still attribute accounting trends to some of the key events in Ford's history. In 1990, Ford acquired Jaguar Cars, Ltd. Jaguar was a company suffering terrible loses due to poor quality, and lack of sales. Jaguar has been in the black since Ford purchased them until 1994. It is important to note that Ford's net income trend from 1991 to 1995 illustrates this. In 1992, the Ford Taurus became the number one selling car in the United States, which helped increase 1992 net earnings, and in 1994 the Ford Falcon was the top selling car in Australia, helping maintain the trend of increasing net income. It is important to note that Ford's net income has increased from 1991 to 1994, and then decreased in 1995. There are several possible causes for this change in the trend. In 1995, Ford acquired 20% equity in a major Chinese truck manufacturer, and launched several new vehicles; including the Ford Contour, Ford Mondeo, Mercury Mystique, Ford F-150, and Ford Taurus. These additional investments and expenses help explain the decrease in net income in 1995. Overall, the company has done well, and with reorganization in 1996 to decrease spending and increase efficiency, Ford is striving for future periods of growth.

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4.3 WEBLIOGRAPHY www.fordindia.com www.fortuneford.com www.wikipedia.com www.google.com

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