FORD PRESENTATION Company Profile & Business Analysis in India.pptx

detailed business analysis of ford india pvt ltd., company profile and some controversies faced by the international corporation

1. CASE STUDY

2. June 16,1903:Henry Ford and 11 investors signed article of incorporation for ford motors in Michigan. OCT 1,1908:Model T the most famous model was introduced. OCT 7,1913:the first moving automobile assembly line in the world was introduced. Production of model T officially ended at May 2027 after total production of 1,54,58,781 cars. On FEB 4,1922:Lincoln Motor Company was started by Ford through which it reached the luxury auto market. Ford once owned 5 other luxury brands: Volvo, Land Rover, Jaguar, Aston Martin and Mercury. COMPANY PROFILE: HISTORY:

3. Ford came to India in October 1995. Ford India Private Limited’s headquarters is located in MarimalaiNagar,Chennai,TamilNadu. Ford invested US$ 2billion to expand its manufacturing units. Ford India Private Limited is the sixth largest car maker in India after Maruti Suzuki,Hyundai,etc. Ford India now has the manufacturing capacity of 6,10,000 engines and 4,40,000 vehicles annually. In March 2015 Ford started its new plant in Gujarat.The first car to roll out from that sector is Ford Figo Aspire. FORD INDIA

4. Vision: Global Leadership. Emphasis on stakeholders. Lean business. Mission: One Team. One Plan. One goal.

5. Currently Ford is the fifth largest in the world and second largest in U.S. based automobile manufacturer behind general motors. Revenue is US$134.3 billion. Operating income US$7.720 billion. Net income is US$5.664 billion. Total assets are US$190.6 billion. Total equity US$15.99 billion. Sales US$134252 million. ACHIEVEMENTS

6. S.W.O.T ANALYSIS Strength: Strong brand portfolio. Strong engineering capability. Wide network of distributors. High employee productivity. Weakness: Continued decline market share. Product recall. Declining returns. Threats: Entry by major car companies in India. Government norms getting tough . Opportunities: Launch of hybrid vehicles. Duel fuel vehicles can be developed. C.N.G & L.P.G car can be developed .

7. ORGANISATION CHART

8. LINE OF BUSINESS

9. Ford Motor Company is a top leader in the corporate social responsibility component and is recognised as one of the world’s most ethical companies by Ethisphere. Ford participates in the fight for labour rights of workers across the world. Ford has been making electric automobiles and producing better KMPL on their gasoline and diesel powered automobiles and steadily improving on lessening the carbon impact on the world. Ford Motors was spotted in second position in Interbrand’s 2013 Best global brand. COPORATE SOCIAL RESPONSIBILITY

10. The main purpose of communication is to inform and engage employees to support behaviour change build pride in business and to deliver measurable values to organisation. MODES OF COMMUNNICATION

11. STAKE HOLDER HIERARCHY Ford Motor Company’s corporate social responsibility (CSR) programs are designed to respond to the demands and interests of the firm’s stakeholders. Ford impacts these stakeholder groups through its business activities. The stakeholders are significant because they affect the company through their purchases.

12. Sells broad range of automobiles under different names. Strong growth in sales all over the world. 14 straight quarters of operating profit in 2012. Tough competition from other brands like GM and Chrysler. PRODUCTS,SALES AND REVENUE

13. The biggest controversy faced by Ford Motors is the gas controversy in the model named PINTO(1970-1980). During testing out of 40 tests,37 resulted in ruptured gas tank. More crash test further showed that one dollar piece of plastic stopped the puncture of tank. But the idea was thrown out as extra cost and extra weight. Pinto can be exploded if a car running at a speed of 30 miles per hour collides it at it’s rear gas tank. GAS TANK CONTROVERSY

14. In April 1974,the centre for Auto Safety petitioned the NHTSA to recall Ford Pintos to address defects after the reports of continuous deaths. In August 1977,Dowie’s “Pinto Madness” article was published a series of accusation of Pinto which included Ford knew about the “firetrap”. Ford did not make changes in design because they were concern about the benefits. On May 8,1978 it was declared that the engine was defective. NHTSA scheduled a public hearing for June 1978,and negotiated with Ford. NHTSA INVESTIGATION

15. Cost of change =$11 per vehicle Number of cars =11 million Number of truck =1.5 million ***************************** Total esteem cost=$137 million ANALYSIS Cost for a death =$(180*2,00,000) Cost for a injury =$(180*67,000) Cost for a vehicle =$(2100*700) ***************** Total esteem cost=$49.5million

16. Ford Motor Company had a long lasting business relationship with Firestone tires. Some of the cars like Ford Explorer used low pressured tires manufactured by Firestone tyres. Low pressure tires tend to cause increase wear and can detract from the driver’s ability to steer or respond to the problem. May 12 – July 3, 1999, 5 fatalities occurred due to tread separation on Ford Explorers with Firestone tires in the Jacksonville metropolitan area. Including these, there had been a total of 174 fatalities before the recall. The majority of the incidents occurred in warmer Southern states. Firestone tires controversy

17. Ford made tire replacement program which made a total replacement of around 13 million tires. Firestone tires paid $240 million to Ford after NHTSA found it responsible for the incident. Ford stock price declined and the company spent more than $3 billion for tire replacement. Ford lost almost $900 million dollars for the whole settlement. HOW DID THEY OVERCOME…

18. Ford had taken proactive measures towards improving its internal processes, such as improved testing methods and internal quality control. The firm made renewed commitment to consumer safety, environmental sustainability and stakeholders appreciation. This has lead to its four times nomination as a world’s ethical company. Although Ford faced significant ethical challenges in the past, it is taking a proactive approach for eliminating future issues. Conclusion

19. THANK YOU