Ford as a Fortune 500 Company Making Its

Ford as a Fortune 500 Company Making It’s Way to the Top Bernadette Bartold Jessica Martin Ashley Rocha Ariel 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 it’s 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. – My. Ford. Touch Infotainment System • Reportedly difficult to use and slow. – Eco. Boost 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 Eco. Boost 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 eyecatching, 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.