Ford as a Fortune 500 CompanyMaking It’s Way to the Top

Bernadette BartoldJessica MartinAshley RochaAriel Skellett

In the Beginning

• Ford Motor Company– established in 1902

• six years after Henry Ford completed his first vehicle

– followed by• GM, established in 1908• Chrysler, established in 1928

The Big Three

• Ford, GM, and Chrysler are known as the “Big Three.”– These three companies

made cars an essential component of the average person’s way of life.

Honda Takes the Lead

• In 1970, consumers realized oil was imported from overseas.

• Laws were enacted which introduced new emission standards for vehicles.– Honda was the only company producing an

engine that met emission standards and therefore took the lead.

Quality is Number One

• By 1980, Ford’s CEO came up with a new goal for the company.

“Quality is Number One”

• Ford upheld the goal by:– shutting down plants that

didn’t meet standards – halting production of the

Ford Escort.

Rising Above Competitor Sales

• After two years of working on their quality, Ford reported a profit nearly double to that of GM.– Ford’s concentration had been on quantity, and

not quality.• In 1983, “formal quality ratings for every

supplier” were created.– A Quality Supplier must rank at 85 or above

out of 100, rising to 90 or above by 1990.

Going the Extra Mile

• In the early 90’s:– Ford was meeting consumer desires as well as

emissions standards while GM recalled around 10,000 vehicles.

– Ford continued improvements by incorporating enhanced safety features into their vehicles.

»These features were added to ensure the well-being of the driver.

Safety Since the Beginning

• Early safety features included:– Rear seat belts– Padded instrument panels– Padded sun visors– Outside rear view mirrors– Windshield washer– Back up lights– Four-way emergency

warning flasher

Road Blocks

• Ford hit some minor roadblocks along the way to success.– In 1996, Ford had the highest recall of a single

car manufacturer.• Production had been rushed and quality was

sacrificed.• Ford reacted quickly to the issues to ensure the

safety of their customers while using the recalls as a learning experience.

Promoting Safety• In 1999, the company began a radio launched

safety campaign to reclaim the support of its customers.

• Advertisements included:– directions for buckling seatbelts– how not to tailgate– dangers of aggressive driving– and later on, promotions of enhanced safety

features.

Enhancing Safety With Technology

• Some enhanced safety features include:– Belt-Minder– Personal Safety System– Pressure Monitors– Blind Spot information system – Blind Spot Mirrors– Rear inflatable seatbelts

Pleasing the Buyers

• Customer feedback has led Ford to adjust their technology and design.

• In 2006-2010, Ford was recognized for their achievement of unparalleled success in quality as well as customer satisfaction improvement.– A contributing factor was the extensive

decrease in “things-gone-wrong.”

Stuck In Another Rut

• Recently, Ford has received negative feedback on their launch of two new products.– MyFordTouch Infotainment System

• Reportedly difficult to use and slow.– EcoBoost Engines

• Did not meet projected statistics.

Surprising Turnaround

• Despite the recalls and setbacks, production rates have increased.– Ford has added two more sizes to their line of

EcoBoost engines.• This has proven to be a beneficial move.

– Consumer demands are rocketing.– Ford hopes to manage the change efficiently

with the recent downsize of their suppliers .

Eye-Catching Image

• New exterior and interior components are eye-catching, from a distance.– Heightened door panels cut down on outward

visibility.– Trim does not fit properly.– High quality materials were used without

installation of the like.

What does it take to be on the top?

• The Fortune 500 list is based on revenue for a company’s fiscal year.

• The more you sell, the higher you are on the list–Ford is #10 in the United States –GM is # 7 in the United States

Revenues for Ford and GM

• 2011–Ford’s revenues were $136,264 million.–GM’s revenues were $150,276 million.

• 2012–Ford’s revenues were $134,252 million.–GM’s revenues were $152,256 million.

Can Ford Grasp First?

• What will it take for Ford to power ahead of GM?– Finding the perfect balance between quality

and quantity.– Reestablishment of their luxury line.– Marketing reliable and efficient vehicles.– Building products to please buyers.

Balancing Quality and Quantity

• Finding the perfect balance between quality and quantity is one major concern that the company should strive on. – Ford seems to rush their products to the market

before they’re ready.• This has led to multiple recalls.

Reestablishing Lincoln

• Many people do not consider Lincoln to be a luxury brand.

• Sell more units in this category would increase revenue.

• To date, Ford has two marketed brands while GM has four.

Ford vs. GM

• Ford’s Major Brands –Ford and Lincoln

• Lincoln as their luxury brand• GM’s Major Brands

–Chevrolet, GMC, Buick and Cadillac• Cadillac as their luxury brand

Efficiency and Reliability

• Ford has popular acronyms– Found on Road Dead– Fix or Repair Daily

• Burying the negative views and marketing reliable and efficient vehicles will:– gain support– show concern for occupant safety

Manufacturing to Sell

• Ford can maximize its profits by building products that they know customers will love.– Communicating with consumers.– Responding to feedback with vehicle

modifications.– Creating vehicles around consumer lifestyles

and needs.

Yes They Can!

• Grasping a larger market and understanding the wants and needs of their consumers will give Ford the power they need to reach the top.

• Ford is trailing behind, but has the ability to make its way to the top of the list.

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