PowerPoint Presentation

Strategic Audit Report Kayla Parkhouse, Sienna Rivera, Logan Roberts, Isaac Shutt , Anthony Stoltzfus.

[Audio] Ford Motor Company was founded in 1903 by Henry Ford. With its revolutionary release of the Model T in 1908, Ford quickly became arguably the most popular car in the world. Today, Ford produces a large variety of vehicles for its worldwide market as a leader in the automotive industry.

[Audio] In 2020, the annual revenue was $127.144 billion which was a 18.45% decline from 2019. Revenue for 2022 was $158 billion which was a 15.93% increase from 2021. As of March 13, 2023, Ford's market share price was $12.03 which is significantly lower than the closing price on January 14, 2022, which was $22.96. Ford's return on investments (ROI) has increased over the last few years. In 2020 the company had an ROI of -3.06%, 3.33% in 2021, and 4.83% in 2022..

[Audio] Mission - "Our purpose as a company- To help build a better world, where every person is free to move and pursue their dreams." Objectives – "Our company is rooted in the effort to remove the obstacles that limit people's progress. Everyone, we believe, deserves to move freely in the world, to pursue their dreams and live the best life possible. From Henry Ford to Bill Ford today, the company acts decisively to create and promote a sustainable future for our shared planet – often veering from the status quo to help change our world for the better. Strategies – Market penetration, product development, market development. Policy – Sustaining and building U.S. based operations, committing to environmental sustainability.

[Audio] Economic Trends. Spending on durable goods remains high in the industry, drops among consumers. If interest rates are high, people invest less. Retailers drown in inventory as they brace for reduced consumer spending. Energy crisis in Europe continues. Technological Trends. Artificial intelligence on the rise. Robotic Process Automation (RPA) is an option to automate jobs from emails, transactions, and more.

[Audio] Political-Legal Trends. Lawsuits regarding vehicle safety. Socio-Cultural Trends. Green energy innovation and awareness. Social Media marketing and consumer trends.

[Audio] Threat of New Entrants – Low threat, difficult to get into automotive industry. Bargaining Power of Buyers– Moderate force, customers play a part in the prices of Ford's product to a certain degree. Buyers primarily influence company's profitability . Threat of Substitutes – Moderate force, other modes of transportation, other brands of cars. Bargaining Power of Suppliers – Moderate force, suppliers want a competitive price against other suppliers. At the same time, buyers do not have much of a say what suppliers' prices are. Rivalry Among Competing Firms– High force, pressure to maintain market dominance.

[Audio] From the strategic analysis we see that Ford has made themselves well known in terms of diversity, while aslo maintaining affordable prices in relation to their competitors. From this consumers can see the usefullness of the company, and want to purchase more..

[Audio] From the summary of external factors one can see how much weight is placed into each section, and how important each section was..

[Audio] Strength - Ford has a strong brand image. Strength - The company received green car and truck awards. Strength - They made an investment in electric vehicles. Weakness - Vehicle recalls happening almost every year. Weakness - Ford has a dependence on US and European markets. Opportunity - AI and autonomous driving are on the rise. Opportunity - Digital marketing is becoming more popular. Opportunity - Supply chain digitization can help Ford grow. Threat - There is intense competition within the automotive business. Threat - Ford is faced with the rising cost of materials and labor..

[Audio] Use Ford's strong brand image and product diversification to enter new markets in India and China. Introduce a new production mechanism to reduce the amount of vehicle recalls. Ford needs to utilize the rise in digital marketing and partner up with vehicle services such as Uber and Lyft to raise its revenue and customer base.

[Audio] Ford should focus on expanding in growing auto market and continue investing money towards research and development. Additionally, Ford should invest in international markets. Ford should continue to use their financial information (various ratios) to assess the company's performance no matter where the operations are taking place.