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Ford Motor Company

Ford’s European Organization Changes Strategy

Group V:

Sherin Khan

Ikram Nabi

Arslan Ahmed Saleem

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Presentation Sequence

1. Introduction

2. Rational for Ford 2000 Strategy

3. Ford 2000 Strategy

4. Ford 2000 Strategic Plan

a. Product Development

b. Manufacturing:

c. Vehicle Ordering and Distribution

d. After Sale Services

5. Failure of Ford 2000 Strategy

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Ford Motor Company

• Founded in 1903 • Over 370,000 employees worldwide • Manufacturing and Sales operations in more than 30

countries• HQ in the USA• Ford used a coordination strategy to achieve economy of

scale and reduce the cost of engineering• Ford designed cars that were suitable for most European

countries• 8th top selling company across Europe• In 1996 the company earned revenue of $ 147 bn• Company was assessed to be a successful organization in

its history

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Ford Motor Company

• By this time more competition like Japanese,

Malaysian and Korean car producers gained

market share.

• Ford created a strategic plan to face those

challenges and to deliver the Ford vision “ To be

the world’s leading automobile company in 21st

century”.

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Ford 2000 Strategy

Reorganizing of Ford Motor Company with more

global approach to doing business and driving major

efficiency improvements in reducing cost to deliver

greater value, quality and choice to the customer

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Ford 2000 Strategy

Strategic Plan

• Provide innovative solutions to competitor’s

challenges

• Boost Ford’s global competitiveness.

• Sustain their continuous growth.

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Ford 2000 Strategy

Product Development:

• Ford 2000 set out a good plan by coordinate and

streamline this system.

• Company reduced the investment cost for every

project and by cutting down on the time it take to

deliver their product to the market place.

• They also reduce the number of vehicle platform

chassis from 32 to 16.

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• In order to achieve these aims Ford set out the

quality, cost and speed of their processes, so that

they could deliver better value to their customers

– Product Development.

– Manufacturing.

– Vehicle ordering and distribution.

– After – Sales – Services

Ford 2000 Strategy : Strategic Plan

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Manufacturing

• Improving vehicle quality by aiming

– Zero defect

– Reduce the time of manufacturing process.

• Ford was the first automotive company in the world

to introduce “virtual factories”.

• Computer simulations were use in vehicle design

and for final assembly process.

Ford 2000 Strategy : Strategic Plan

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Vehicle Ordering and Distribution

• At the customer end of supply chain, the reliability

of supplies is judged by their ability to deliver the

right product at right time and price that customer is

willing to pay.

• The ultimate aim is to reduce this response rate for

6 weeks to 15 days.

Ford 2000 Strategy : Strategic Plan

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After – Sale – Service

• The quality of a company’s customer service plays a

crucial role in our decision to buy a car,

• after sale services is more customer driven.

• This was one of the objectives of Ford 2000

strategy.

Ford 2000 Strategy : Strategic Plan

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• Ford was loosing market share to competitors in

Europe. Centralized strategy was implemented

• Out of Five, Four manufacturing units were in North

America and one in Europe (Responsible for small

and midsize vehicles), European manufacturing unit

was partially independent and was mostly following

the strategy of the units in North America).

Failure of Ford 2000 Strategy

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• The 21st century brought new changes for Ford,

where restriction on Japanese cars were reduced or

eliminated.

• Introduction of European currency enable customer

to compare price across borders for best deals.

• Global car industry plagued by overcapacity

resulting in fierce competition

Failure of Ford 2000 Strategy

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Thank You