Scribd
Upload
893 views

Ford Motors Value Chain Analysis

Ford is an American automaker founded by Henry Ford with headquarters in Michigan. It manufactures and services cars, trucks, and SUVs worldwide. Ford uses generic strategies like cost leadership through operational efficiency and differentiation through focus on safety and environmental impact. It pursues intensive strategies like market penetration using marketing techniques. Ford analyzes its value chain including primary activities like inbound logistics, operations, and products/services and support activities like technology, infrastructure, human resources and procurement to increase efficiency. It focuses on cost minimization through automation and computerization while using activity based costing for accurate cost allocation to remain competitive.

Uploaded by

Aditi Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
893 views

Ford Motors Value Chain Analysis

Ford is an American automaker founded by Henry Ford with headquarters in Michigan. It manufactures and services cars, trucks, and SUVs worldwide. Ford uses generic strategies like cost leadership through operational efficiency and differentiation through focus on safety and environmental impact. It pursues intensive strategies like market penetration using marketing techniques. Ford analyzes its value chain including primary activities like inbound logistics, operations, and products/services and support activities like technology, infrastructure, human resources and procurement to increase efficiency. It focuses on cost minimization through automation and computerization while using activity based costing for accurate cost allocation to remain competitive.

Uploaded by

Aditi Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 9

Ford

A presentation on
Accounting Decision and Control

By-
Nitesh Arora- 2019BMS035
Aditi Jain- 2019BMS004
About - Ford Motor Company
The Ford Motor Company is an American multinational automaker. Henry Ford is
the company’s founder. Its headquarter is in Michigan City.
Ford manufacturing operations are spread worldwide, including in the Turkey,
Germany, the United States, Argentina, Mexico, Australia and many more.
Major business of Ford includes manufacturing, designing, and servicing a line of
Ford cars, marketing, trucks, and SUVs.
Strategies for Growth

Generic Strategies Intensive Strategies


• Cost Leadership- By maximizing • The strategy is an extensively used
operational efficiency, they decrease strategy of the company and is used
the product cost which helps them to in growing sales and market share.
achieve a higher target of sales and a The product and tech innovations
competitive advantage. became crucial in the enhancing the
bond between the company and its
• Differentiation- It is the key generic customers and maintaining its
growth strategy done by all leading market value .
brands and ford places a high level of
focus on passenger safety, • Market penetration- the marketing
environmental impact of product and strategy focuses in getting the
through marketing, it keeps its maximum sales of the product where
customers exclusive. they use various marketing
techniques and tools to maintain
customer relationship.
Value Chain Analysis
Value chain analysis is the process of
looking at the activities that go into
changing the inputs for a product or
service into an output that is valued
by the customer.

Companies conduct value-chain


analysis by looking at every
production step required to create a
product and identifying ways to
increase the efficiency of the chain.

Chart taken from-


https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.smartsheet.com%2Fvalue-chain-
model&psig=AOvVaw0Ti9CzhyF_AceRX5W2tUyS&ust=1602498654893000&source=images&cd=vfe&ved=0CA0QjhxqFwoTCODAvfe
qrOwCFQAAAAAdAAAAABAD
PRIMARY ACTIVITIES OF VALUE CHAIN

Q1 Q2 Q3 Q4

Inbound Logistics Outbound Logistics Operations Products & Services


With the help of third party Ford partners with its Having its assembly With a large range of
Supply chain company, Ford logistics partners to plants and dealership products and services,
manages the movement of accurately measure and this operations globally, it Ford improves its
prototype parts from global henceforth improves the owns assembly facilities, products via a regular
suppliers, to its R&D locations transport with relation to warehouses and focus on R&D.
supply chain distribution centers.
SUPPORT ACTIVITIES OF VALUE CHAIN

Q1 Q2 Q3 Q4

Technology Infrastructure HRM Procurement


Ford manages to have great Ford has its business Ford focus on strategic Ford allows to contribute to local
technological capabilities operations globally and HRM and invests in the economies, encourage
driving higher productivity. It regionally. Each region has development of its Human entrepreneurship and enrich
focuses on improving its head, a Vice President Capital through appropriate livelihoods in the communities
manufacturing efficiency via and CEO who oversee the financial and nonfinancial where it operates and where its
investment in excellent IT business operations in the rewards. suppliers are located.
service. region.
Cost Minimization
Ford has successfully worked upon the facets of engineering automobiles with context of
minimizing the total cost of production.

Production in the past could be related to slowness and delay of production rate in factories
because of the usage of labor intensive techniques.
In today’s scenario, automation and computerization of production process contributing to
lower cost of automobiles leading to higher sales and profits.

Though, minimization has played a major role in layoffs as work has been automated.
Despite this, minimization has been a win-win in the growth of the engineering practice of
Ford.
Costing Method

• The Ford Motor Company has always preferred the Activity


Based Costing Method to remain competitive in the automobile
industry.
• The ABC method is suitable in the automobile sector as it
improves business process and eliminates the use of wasteful
products.
• Ford’s profits grew in the last fiscal years when checked to the
fiscal year 2014.
• With a widely spread business in various geographical location,
Ford Motor Company has invested abundantly in technological
elements that have significantly improved effectiveness.
Thankyou!

You might also like