The Balanced Scorecard for Ford’s North American Business Unit
Table of Contents
Executive Summary…………………………………………………………………….2
Mission Statement………………………………………………………………………2
Balanced Scorecard…………………………………………………………………….3
Financial Perspective………………………………………………………………......5
Customer Perspective………………………………………………………………....10
Internal Business Process Perspective……………………………………………….12
Learning & Growth Perspective……………………………………………………..14
Conclusion………………………………………………………………………….….16
References……………………………………………………………………………..17
Executive Summary The Ford Motor Company, founded in 1903 by Henry Ford, is synonymous with American innovation and capitalism. With iconic branding and revolutionary
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The Balanced Scorecard for Ford’s North American Business Unit
Financial
Objectives |Metric |2009 |2010 |2011 |Target | |Revenue Growth |Annual Rate of Growth |-19.02% |10.90% |5.67% |5.5% - 6.0% | |Operating Profit Growth |% EBIT/Sales |0.72% |1.11% |1.13% |= or >1.13% | |Solvency |Net Profit + depreciation/Total Liabilities |1.4% |4% |12.3% |13 -14.5% | |
Customer
Objectives |Metric |2009 |2010 |2011 |Target | |Customer Satisfaction |Global Quality Research System customer satisfaction (3 months in service), percent satisfied1 |n/a |n/a |68 |75 | |Value to Customers |Ford U.S. fleet fuel economy, combined car and truck, miles per gallon (higher mpg reflects improvement) |27.1 |26.9 |27.8 |>30 | |Quality/Safety |Percent of Nameplates Achieving IIHS Top Safety Pick by Manufacturer |n/a2 |52% - for 2011 models |75% - for 2012 models |80% for 2013 models | |
Internal Business Process
Objectives |Metric |2009 |2010 |2011 |Target | |Outsell competition |US Market Share |15.3% |16.4% |16.5% |=>16.5% | |Sustainability |Ford U.S. fleet CO2 emissions, combined car and truck, grams per mile (lower grams per mile reflects improvement) |326 |329 |318 |315 or less | |Innovation |U.S. Utility Patents Issued to Ford and Subsidiaries |325 |430 |444 |>450 | |
Learning & Growth
Objectives |Metric |2009 |2010 |2011 |Target | |Employee Satisfaction |Pulse survey, overall,
15.Henry Ford founded the Ford Motor Company in 1903 and in 1908, introduced the car that not only made him famous (and a multi-millionaire), but literally put the world on wheels. What was Ford's car called?
The Ford Motor Company is an automotive manufacturer that was started in the late 1900’s. Many people have run the Ford Motor Company but the founder Henry Ford, he was unlike any other. Henry Ford’s imagination was unlike any other and his brain could come up with some of the greatest things. Until the day Mr. Ford died he created and succeeded in the automotive world and never failed to give to America.
Ford Motor Company is America's one of the largest car manufacturer and seller. In year 1987 it faces an external business environment change in the form of new warranty policy announcement by its major competitors General Motor, which changes the current philosophy of warranty in U.S car market. This policy change may have implications not only on Ford’s sales and market share but also on various departments within organization (such as manufacturing, quality assurance, parts and service, and extended service plans) and their dealer network. In answer, Ford executives have to respond through a best suitable course of action by carefully analyzing the current market variables.
I will be comparing both companies General Motors Company and Ford Motor Company for the past three years. We will be able to see all the trends these two automotive manufacturers have and which one may be better to invest in by looking at the last few year’s ratios and percentages. This will give us a better understanding and the knowledge of who maybe the industry leader and who is the follower. These are both major corporations that strive off customer loyalty and both competing on a global scale to make their mark in the one of the top automotive manufacturers in the world. This analysis will give us an understanding of what lies ahead in the future for these two manufacturers.
Ford Motor Company has been and till the date is known as the king of innovations in the automobile industry. Their research & development department and innovation of interchangeable parts in moving assembly lines resulted in extraordinary global extension for them. They are an old heritage who ruled and still doing impressive jobs in the global automobile market. Some prestigious motor brands are also owned by Ford.
Ford Motor Company is an American automaker, it is the world's fifth largest automaker based on worldwide vehicle sales. Its headquarters are based in Dearborn, Michigan, which is a suburb in Detroit. Henry Ford founded Ford Motor Company on June 16, 1903 and it became one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Depression. Ford Company is the largest family-controlled company in the world; it has been in continuous family power for over 110
Similarly government regulations in the United States and Europe are tightening up, consequently requiring cars to be cleaner and more fuel efficient. As a result, the collaboration with BMW is paramount to getting the most fuel efficient vehicles to the market in a timely manner so that GM can harvest a substantial profit. (3) In addition General Motors is working on the next generation of fuel efficient and gasoline free vehicles to help reduce the impact of the vehicle on the environment, while preserving personal mobility, which further indicates its commitment to innovation. (6)
Ford Motor Company is an American automobile manufacturer founded and headquartered in Dearborn, Michigan but incorporated in the state of Delaware. The company was started by Henry Ford in 1903 and is historically famous for the creation and implementation of the assembly line in manufacturing processes. Ford’s mission is to produce and sell automobiles – cars, trucks, SUVs, etc – from the ones initially designed and engineered by Henry Ford all the way through the newer versions created in the last few years. (Profitable Growth for All, 2012)
Ford Motor Company was incorporated in Delaware in 1919. They acquired the business of a Michigan company, also known as Ford Motor Company, which had been incorporated in 1903 to produce and sell automobiles designed and engineered by Henry Ford. They are one of the world’s largest producers of cars and trucks. They and their subsidiaries also engage in other businesses, including financing vehicles.
The mission statement of Ford is not written because in past decades, U.S. vehicle industries have changed dramatically. However, Ford has a vision statement which can be substituted for mission statement, “People working together as a lean, global enterprise to make people’s lives better through automotive and mobility leadership.”
Four of Ford’s strengths include research and development, a strong position in the United States, strong market share all over the world, and a solid portfolio of automotive products. Ford has an extremely strong research and development capabilities that are helpful in launching new vehicles (Ford Motor Company SWOT Analysis, 2016, p. 6). Ford recorded $6.4 billion of engineering and R&D costs in FY2013 and $6.9 billion in FY2014 (p. 6). In January of 2015, Ford opened a new Research and Innovation Center in Palo Alto to speed up developing technologies and experiments regarding customer experience, mobility, connectivity, etc.
Ford has had to face various challenges and current goals are to obtain the market share from its competitors and build the vehicles consumers are demanding. By meeting these needs, the company can redefine itself. With consumers trying to decrease their debt and an increasing number of competitors showcasing fuel-efficient vehicles, Ford needs to create affordable high quality and fuel efficient vehicles to remain competitive. An internal analysis of Ford Motor Company will evaluate its resources and capabilities. This analysis can aid in determining Ford’s cost position, competency, and competitiveness in the current marketplace.
With stringent federal fuel efficiency laws looming on the horizon, combined with growing technology that is becoming increasingly affordable, every major automaker is currently selling or developing an eco-friendly vehicle. The 2012 environmental flagship models are not just electric vehicles (EV), hybrids and fuel cell vehicles (FCV). In fact, great strides are being made to improve the performance and productivity of diesel, gasoline and natural gas vehicles as well.
The Ford Motor Company has been facing a steady decline in market share for approximately the past twelve years. This decline is largely attributable to their reputation for building poor quality vehicles that break down easily, and rising gas prices reducing demand for large trucks and SUVs, which is Ford’s main source of sales.
Ford motor company offers a wealth of variety to the automotive consumer. As they start their second century of business, they are now in a position to appeal to the widest range of potential customers. Each of their automotive brands has a unique personality