Analysis of Ford Motor Company

Analysis of Ford Motor Company

Business History: Ford Motor Company began business in 1903. With an initial investment of $28,000, Henry Ford began to create what today is one of the world’s largest corporations. Perhaps Ford Motor Company’s single greatest contribution to automotive manufacturing was the moving assembly line. This technique greatly increased efficiency through specialization by allowing individual workers to stay in one place and perform the same task repeatedly on multiple vehicles that passed by them.

Business Description: Ford owns a group of automotive brands including Ford, Lincoln, Mercury, Mazda, Jaguar, Land Rover, Aston Martin, and Volvo. Ford is a global company with two core businesses: the automotive business, and the financial services business. The financial services sector primarily includes two segments: Ford Motor Credit Company, a wholly owned subsidiary of Ford, and The Hertz Corporation, an indirect, wholly owned subsidiary of Ford. Ford Motor Credit provides vehicle-related financing, leasing and insurance. Hertz rents cars and light trucks, as well as industrial and construction equipment.

Environmental [SWOT] SWOT Analysis: A SWOT analysis provides some interesting insights about the challenges facing Ford Motor Company. As clarification, Strengths and Weaknesses involve factors that are internal to Ford, while Opportunities and Threats are factors that are external to the company.

Strengths and Weaknesses: Ford’s financial condition contains both strengths and weaknesses. For example, the last three years have been difficult at Ford. Lackluster financial performance and failure to meet sales and profit goals, according to Eric Mayne (2003), has led to the departure of several key executives. However, on a positive note, this has given Ford a reason to concentrate on improving operational effectiveness and profitability (Mayne, 2003). One of Ford’s weaknesses is its income statement. Total revenue for …

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