Solution Acid and Base free essay sample

SOLUTIONS Title I. Objective: To study some phenomena related solution. II. Apparatus: Test tubes, Bunsen burner, mortar and pestle, conductivity Apparatus, test tube holder, calibrated test tube. III. Materials: Crystals of blue vitriol, benzoic acid, table salt, denatured alcohol, kerosene, 10ml of very diluted sulfuric acid, 2g brown sugar, 10ml of each of the following: 1 M solution of sodium acetate, ammonium chloride, ammonium hydroxide, sodium hydroxide and ethyl alcohol. IV. Procedure and Observation A. 1. Factors influencing Dissolving Velocity A. Each of 5 test tubes was filled up with 10ml of diluted H2SO4 solution. a. One crystal was dropped into the first test tube and set aside into the test tube rack, after several minutes the crystal was slowly dissolved. We will write a custom essay sample on Solution: Acid and Base or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page b. Another crystal was suspended into the second test tube by means of a sling made from a piece of mimeo paper about 1/4 inch wide and 4 inches long and set aside into the test tube rack, after several minutes the crystal was slowly dissolved. c. Powdered Blue Vitriol was placed into the third test tube and set aside into the test tube rack, after several minutes the powdered blue vitriol was slowly dissolved but faster than in 1. and 1. b. d. Powdered Blue Vitriol was placed into the fourth test tube and shaken vigorously until the powdered blue vitriol was totally dissolved. The powdered blue vitriol was dissolved faster compared to 1. c. e. Powdered Blue Vitriol was placed into the fifth test tube which was heated solution. Continuously heating of the solution until the powdered blue vitriol was completely dissolved. The powdered blue vitriol was dissolved faster compared to 1. d. B. Data and Results Solution |Factors |Rank | | | |(slowest -to- | | | |fastest) | |Blue Vitriol Crysta ls(CuSO4)+ H2SO4 |Particles Size |5 | |Blue Vitriol Crystals(CuSO4) + H2SO4 |Surface Area |4 | |Powdered Blue Vitriol (CuSO4) + H2SO4 |Particles Size |3 | |Powdered Blue Vitriol (CuSO4) + H2SO4 |Agitation |2 | |Powdered Blue Vitriol (CuSO4) + H2SO4 |Temperature |1 | 2. Solubility of Different Solutes in Different Solvents 1. a The 1/2g of table salt was divided into three equal portions in three separate test tubes. The first test tube was filled up with 2ml of H2O and the second test tube was filled up with 2ml kerosene. After filling up the two test tubes then shake. The third test tube was reserved for C. 1. a. The table salt was dissolved most in the 2ml H2O, and least dissolved in kerosene. 1. b The benzoic acid was divided into two equal portions in two separate test tubes. The first test tube was filled up with 2ml of H2O and the second test tube was filled up with 2ml kerosene. After filling up the two test tubes then shake. The benzoic acid was dissolved most in the 2ml kerosene, and least dissolved in H2O. 2. Data and Results |Solvents |Table Salt |Benzoic Acid | |2ml Water (H2O) |Soluble |insoluble | |2ml Kerosene |Insoluble |Soluble | |2ml Alcohol |Insoluble |Soluble | 3. Influence of Different Solutes in Different Solvents 1. The 1/2g of table salt from the third test tube from B. 1. a was filled up with enough water and added slowly pinch-by-pinch of table salt until no more table salt dissolved. The water-salt solution was thoroughly wet and being concentrated solution. 2. b The solution from C. 1. a was heated to almost boiling and added slowly pinch-by- pinch of table salt. After several minutes, when the solution was being cooled the table salt returned to its solid state. The water-salt solution was made supersaturated wherein the water was unable to dissolved the salt in the solution. B. 1. Electrolytes (Strong and Weak) and Non-electrolytes The Instructor had demonstrated. A. Each of the solution listed below had tested its conductivity by placing 10ml of each in a conductance tube and dipping it in the electrodes of the conductivity apparatus. a. 1 M HCL – Bright Light b. 1 M HOAc – Dimmed Light c. 1 M NaOH – Bright Light d. 1 M NH4OH – Dimmed Light e. 1 M NH4Cl – Bright Light f. 1 M NaOAc – Bright Light g. NaCl solution – Bright Light h. Sugar solution – Dimmed Light i. Distilled water – No Light j. Tap water – Dimmed Light k. Ethyl alcohol – No Light 2. Classification of all the solution listed as weak electrolyte, strong electrolyte or non electrolyte. Weak Electrolyte |Strong Electrolyte |Non Electrolyte | |Acetic Acid |Sodium Chloride |Distilled Water | |Ammonium Hydroxide |Hydrochloride |Ethyl Alcohol | |Tap Water |Ammonium Chloride | | |Sugar Solution |Sodium Hydroxide | | | |Sodium Acetate | | VI. Conclusion It takes time for a diluted Sulfuric acid (H2SO4) to dissolved the crystal blue vitriol compared to the powdered blue vitriol because they varied in the particles size, when shaking were applied on the solution the speed of the solubility were increased. In the heated solution the solubility was very fast due to the increased in temperature. The factor affected the solubility of water and salt solution, water and benzoic acid solution, was the nature of solute and the solvent, the polar solute were dissolved only in the polar solvent and slightly or insoluble to non polar solvent, then non polar solute were dissolved only in the non polar solvent and slightly or insoluble to polar solvent. Thus water is polar solvent and salt is polar solute therefore salt is soluble in water, whereas benzoic acid is a non polar and water is polar solvent so, benzoic acid is insoluble in water. Benzoic acid is soluble in kerosene and alcohol because they are non polar solvent. When salt was added into the water pinch-by-pinch, the salt absorbed the water wherein the amount of water in the solution were decreased by adding more salt, when water cannot dissolve more salt, the water-salt solution is saturated. Solutions having weak electrolytes are those weak acid or base solution, solutions having strong electrolytes are those strong acid or base solution. The non electrolyte solutions are those organic solutions.

Strategic Audit Ford Essay Example

Strategic Audit Ford Paper contents 1. 0 Introduction3 2. 0 Strategic Issues of Ford4 3. 0 The External Environment5 3. 1 PESTEL Analysis5 3. 1. 1 Political Environment5 3. 1. 2 Economic Environment6 3. 1. 3 Social Environment7 3. 1. 4 Technological Environment7 3. 1. 5 Natural environment8 3. 1. 6 Legal Environment8 3. 2 The Industry Porters’ Five Model9 3. 2. 1 Buyer’s Power Moderate9 3. 2. 2 Suppliers’ Power Low10 3. 2. 3 Threat of New Entrants Low11 3. 2. 4 Threat of Substitutes – Slightly Moderate11 3. 2. 5 Industry Rivalry High12 4. 0 The Internal Environment13 4. The Value Chain Analysis13 4. 1. 1 Primary activities13 4. 1. 2 Secondary activities14 4. 2 Analysis of Ford’s Core Competencies16 5. 0 Strategy Formulation19 6. 0 List of Strategies19 6. 1 Financial Restructuring of Ford20 6. 2 Resource-based value20 6. 3 Retrenchment Strategy21 6. 4 Product differentiation21 7. 0 Recommendation and Evaluation23 8. 0 Conclusion23 9. 0 Appendix24 9. 1 SWOT Analysis24 9. 2 TOWS Matrix25 10. 0 Reference List28 1. 0 Introduction Ford Motor Company was incorporated as a company in the year 1906. The founder of the company was Henry Ford. Ford Motor Company was the first company to make use of assembly lines for the production of cars. Currently, Ford is the fourth largest car manufacturer in the world. In the year 2008, its global production of automobiles was approximately five million (World Automobile Industry Challenges and Prospects 2009). However, due to the automotive crisis in the year 2008-2010, Ford has experienced a critical situation. Therefore, in this report we explain the competitive position of Ford in the Australian and International Motor Vehicle Industry. Moreover, we have analysed the costs the company has been incurring. From this analysis, we provide our recommendation where Ford can cut it cost or it should financially restructure itself. Furthermore, we explain the reasons why Ford has been losing its market share and what should be done to reverse the situation. In order to analyse the situation of Ford Motor Company, we have used different analytical tools. For the external analysis, we have used PESTEL Analysis and Industry Porters’ Five Model. To have a more in-depth analysis of Ford’s internal environment, we analysed its core competencies and we make use of the value chain analysis. We will write a custom essay sample on Strategic Audit Ford specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Strategic Audit Ford specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Strategic Audit Ford specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Other analytical tools that were used are the SWOT Analysis and the TOWS Matrix. 2. 0 Strategic Issues of Ford Ford Motor Company is a global automotive industry, which is based in Dearborn, Michigan. The company manufactures and distributes automobiles in six different continents across the world. It currently employs approximately 180, 000 workers and it has 90 plants in different regions of the world. The company brands include Lincoln, Ford, and Mercury(Ref). Ford Motors Company bought many other car manufacturers in the past for example, Volvo, Aston Martin and Jaguar. In the process Ford was so proud to show off all the prestigious brands it own that it forget to concentrate on Ford itself. In the long wrong due to poor management and bad decision making Ford vehicles demand started to drop. Recently, the company had to lay off 40% of its workforce to cut manufacturing costs. At the same time the costs of materials needed to manufacture cars such as steel have been increasing globally affecting the cost to produce vehicles. Moreover, Ford has been losing its market shares as compared to other automobile companies such as Toyota. The loss of market shares can also be attributed to raising fuel prices. Additionally, another problem that Ford Motor Company is facing is the highly layered organizational structure, which makes decision making bureaucratic and a much longer process. Another strategic issues found is that Ford build to many variant of the same model, for example the Ford Mondeo of America is not the same as that in Australia or England. This further raised the price of the car as each variant needed research and development cost for the same model. 3. 0 The External Environment In this section of the report, we scan the external environment by using analytical tools like the PESTEL Analysis and the Industry’s Porters Five Model. . 1 PESTEL Analysis In this section we analyse the political, economical, social, technological, natural and legal environment of Ford Motor Company. 3. 1. 1 Political Environment The government of Australia is encouraging the buying of more â€Å"greener† vehicle. According to the Australian government choosing a greener car can h ave a direct financial benefit as well as helping to conserve the environment for all Australians and future generations. Buying a vehicle that is more fuel efficient can save thousands of dollars on fuel bills and many tonnes of greenhouse gas emissions over the vehicles life (Greener Vehicle Guide 2010). This political incentive is directly link to Focus on introducing the new environmentally-friendly technology engine for the Falcon, a bestselling car in the territory and the country. The Australian Transport Councils National Road Safety Strategy (NRSS) for 2001-2010 aimed to save 700 lives per year by 2010 (40%) and  3600 lives over the period. In 2001, 1736 people were killed. In 2009/10, this figure was  1424, making for an 18 percent reduction (â€Å"ANCAP Calling On Australian Political 2010). It is estimated that almost 25% of person could be save with safe cars. The government could in the future start a new more severe rating system for cars which will influence customer awareness before buying a vehicle thus have direct impact on demand for cars in Australia. Better rated car will have a competitive advantage compare to those car which are poorly rated. Stolen car is becoming an issue in Australia A workable and cost effective system of vehicle identification plates, combined with a national register of stolen vehicles, should make it more difficult for professional thieves to ‘re-birth a stolen car. The mandated use of immobilizer technology, steering wheel locks and vehicle alarms is also expected to reduce the incidence of car theft in Australia (Parker 2010). Finally, the labor government promise on cleaner car debate campaign that would see rebates given for the trade-in of old cars in favour of new and greener vehicles. With the ultimate aim of getting around 200,000 old vehicles off the nations roads, the program will offer a $2000 rebate on cars built before 1995 (â€Å"Gillard Government to Give $2000† 2010). 3. 1. 2 Economic Environment Analyzing the car industry it is important to have a global view of the economy. Australia is forecast to grow again at 2. 75 per cent in 2008-09 which is above the average growth rate of members of the Organisation of Economic Cooperation and Development (OECD) of 2. 2 per cent (Australia in Brief 2008). AUSTRALIAS economy grew by nearly one per cent in final three months of 2009, after government stimulus helped it shrug off the worst of the global financial crisis, economists say. But the pace set by the economy could leave borrowers with higher interest rates by the end of 2010 (Lunn 2011). Australia is one of a few countries that have the facilities to design and produce a car from clean sheet to dealer sale. In 2008 Australia produced 171,432 vehicles for domestic sale. Australia is best known for designing and producing large sized passenger vehicles, which has seen a recent downturn in Australian markets resulting in many cutbacks including the February 2008 closure of Mitsubishi Motor plant in the country. It can be said the situation is going from bad to worse, new vehicle sales fell 3. % in Australia in 2008 to 1,012,164 units, but most worrying for the industry was the sharp 11. 3% fall in sales in December, despite dealers offering sharp discounts to attract buyers. Sales of cars produced by local manufactures slumped by 14. 5% last year. The Federal Chamber of Automotive Industries expects vehicle sales to fall by 12. 5% in 2009, with total sales forecast to be 880,000 units (â€Å"Midas Australia’s collapse adds to car industry chaos† 2009). The impact of the automobile industry on the U. S. economy is huge. According to the University of Michigan and the Center or Automotive Research, the automobile industry is the main user of computer chips, textiles, aluminum, copper, steel, iron, lead, plastics, vinyl and rubber (World Automobile Industry Challenges and Prospects 2009). 3. 1. 3 Social Environment Ford did not operate in isolation of society but form thus it is of importance that managers pays more attention to social element of the environment. The size and age of population associated with their standard of living plays an important role in the design of car. (Gabriel 2004, 19). Additionally, today’s society judges people on the type of car they drive. Although members of the society do not want to admit it, it is very true. Manufacturers know this and they target their market by these thoughts. Anyone having a luxury or nice car is thought to be wealthy. Conversely, those driving unattractive piece of junk are perceived as people from low social status. Consumers also like better cars because this makes them feel proud about themselves (World Automobile Industry Challenges and Prospects 2009). 3. 1. 4 Technological Environment Internet has made the industry more efficient and less costly. U. S manufacturers; Ford, GM and Daimler Chrysler, all opted for a global online exchange for their suppliers and equipment manufactures according to their plans for 2000. In August 2002, GM was set to start sending requests for quotes to suppliers through Covisint using a tool called â€Å"Quote Manager† (World Automobile Industry Challenges and Prospects 2009). 3. 1. 5 Natural environment The natural environment factor have bring increasingly important in the macro environment of almost all type of company irrespective of the business they are engaged with. The carbon footprint is now consider because they are aware of its impact on global warning. The customers now have increasing expectation over the company product performance over the natural environment but also the overall impact of the company on the natural environment. Ford provided a world premier for three new electrified products: the new Focus Electric, Fords first full-electric passenger car; the Ford C-Max Energi, the companys first plug-in hybrid electric; and the new Ford C-Max Hybrid. The C-Max is a seven-passenger, multi-activity vehicle with a hands-free liftgate, and a new version of what is already in use in Europe (Pearson 2011). There are basically two type of company tend to cope for natural environmental needs those who seek to comply with regulation and those who go above the regulation which ford is by providing electrified motor vehicles and hybrid engine to reduce the carbon footprint. 3. 1. 6 Legal Environment Legal conditions are often closely related to political condition. Legal conditions are often the result of political decision (Grant et al. 2011, 103). Since 1960’s, laws and regulations have had major impacts on the automotive industry. These regulations were mainly from consumers’ concern for the environment and safer automobiles. In 1966, the national Traffic and Motor vehicle Safety Act was the first safety act passed by the Congress, which compelled manufacturers to improve passenger’s safety, driver’s visibility, braking of cars and also, manufacturers had to inform the public upon when cars had to be recalled. The trigger for passing this safety act was Ralph Nadar’s 1965 novel, Unsafe at any speed: The Designed – in Dangers of the American Automobile. The only concern was not about safety but also about the environment, even before the oil crisis. In 1965, the Vehicle Air Pollution and Control Act was passed, which was the first act to set standards for pollution caused by automobiles. Later, in 1970s, the Congress passed the Clean Air Act which required a 90% decrease in automobile emission within the next six years. These laws have been strengthen recently to decrease the level of emission in the environment (World Automobile Industry Challenges and Prospects 2009). The oil crisis in the 1970s caused the Congress to pass the Energy Policy and Conservation Act which required automobiles to meet a certain mileage per gallon, that is, a standard of 20mpg for the 1980 model and 27. 5mpg for the 1985 model. Subsequently the Intermodal Surface Transportation act was passed in 1992 which required the installation of front airbags in automobiles (World Automobile Industry Challenges and Prospects 2009). 3. 2 The Industry Porters’ Five Model In this section, we analyze the Buyers’ Power, Suppliers’ Power, Threats of New Entrants, Threat of Substitutes and The Industry Rivalry in the automobile sector. 3. 2. 1 Buyer’s Power Moderate The worldwide trend for buyer’s power of car is low. This is because having a car is nowadays perceived not as a luxury but it is more a must for people. Therefore people do not have much option and are more likely to buy a car (World Automobile Industry Challenges and Prospects 2009). However, which car to buy varies from people to people and from country to country. Toyota is seen as the bestselling car over the world and it is the largest car manufacturer. In the United States, the bestselling car is Toyota. Ford is the fourth largest bestselling car in America (Edgerton 2010). In Australia, people who prefer luxury cars opt for BMW, Mercedes and Audi while BMW is the most preferred choice of luxury cars in Australia (Audi No Threat 2007). Ford’s reputation in the Australian market is increasing. This is because Ford is investing significantly to meet customers’ requirements. Additionally, as Ford is going for intense innovation in order to provide its customers with higher safety kits and comfort, it has been able to increase its market share by 14 percent. Moreover, analysts highlight that the new Ford Focus which is expected to enter the Australian market in the third quarter of 2011 is being impatiently awaited by car dealers and car resellers (Ford Defend Focus 2010). Therefore it can be said that Ford has a moderate buyer power as it has loyal customers. At the same time, the brand reputation of Ford is increasing. 3. 2. 2 Suppliers’ Power Low Ford Motor Company has a network of Aligned Business Framework (ABF) with forty-six productions and nineteen non-productions suppliers. Ford has entered into a network with these suppliers to reduce suppliers’ power. Ford and its suppliers work together to create value for customers. Additionally, the ABF agreement will help the suppliers in the network to strengthen collaboration and develop a sustainable business model to drive mutual profitability and technology development (Fact Sheet: Ford’s Family of Strategic Suppliers 2008). Moreover, Ford Motor Company has rewarding system which rewards its suppliers for good performance. For example, one supplier of Ford Motor Company is The Global Suppliers. Global Suppliers was rewarded by Ford for strong performance in 2010. Those suppliers who help to create higher customer value are rewarded because Mr Alan Mullaly, Ford President and CEO, said that suppliers high performance is crucial for the company to progress. He stated that â€Å"We made tremendous progress on the One Ford plan in 2010 and the partnership with our suppliers was absolutely critical in making that happen† (Ford Honors Global Supplier for Strong Performance in 2010 2011). Therefore it can be said that Ford suppliers power is low as it has entered into a strategic network with its suppliers for the purpose of creating value for its customers. . 2. 3 Threat of New Entrants Low The presence of new firms in an industry may force prices down and put pressure on profits. There are, however, barriers to entry that tend to protect established firms. One would expect the production of automobiles to require significant economies of scale, an important barrier to entry. The new entrant would have to achieve substantial market share to reach minimum efficient scale, and if it does not, it may be at a significant cost disadvantage. While the evidence suggests that economies of scale in the auto industry are substantial, there are also indications that large size may not be as important as commonly assumed. Nevertheless, entry would represent a large capital investment to any new firm and the body of research still indicates that economies of scale represent a substantial barrier to entry (World Automobile Industry Challenges and Prospects 2009). Consequently, entry is currently a weak threat to profitability. 3. 2. 4 Threat of Substitutes – Slightly Moderate While five-forces do not directly consider demand, it does consider two factors that influences demand ? substitutes and complements. Although new cars generally are slightly price elastic, suggesting few real substitutes (e. g. , bus and rapid transit), the demand for a particular model is highly sensitive to price because of the availability of close substitutes for a given model. A change in the price of a complementary product (e. g. , gasoline, batteries, and tires) could have a significant impact on the demand for automobiles. The rising price of gas, an important complementary product, is likely to affect some firms more than others depending upon the vehicle composition. Recent rising fuel prices are likely to have a greater impact on the big three (GM, Ford Motor and Daimler-Chrysler) whose most profitable models are energy inefficient pick-up trucks and sports utility vehicles (Automotive Industry Analysis – GM, DaimlerChrysler, Toyota, Ford, Honda 2011). On balance, the overall impact on industry profitability from substitutes and complements is weak to moderate. 3. 2. Industry Rivalry High The automobile industry is an oligopoly and companies in the industry are, to a large extent, able to determine the industry prices. As the industry is not fragmented and companies don’t indulge in price wars the industry have better opportunities to grow (World Automobile Industry Challenges and Prospects 2009). The competitors in the global automobile industry are facing the recession repercussions and their competing power has reduced giving new entrants from developing nations an opportunity to enter foreign markets more easily. In the early 2000 the US automobile manufacturers to some extent, were able to intensify competition because of the demand for the light trucks by American consumers, which was also compounded because of the low oil prices in the US. But in early 2008, oil prices increased and the customers switched to fuel-efficient cars made by foreign companies and even after the oil prices fell the perception that the oil prices would go up after economic recovery has taken hold and the demand for the American SUVs has remained low (World Automobile Industry Challenges and Prospects 2009). However, demand in developing nations has been growing and this provides the auto manufacturers in the US an opportunity to expand to newer foreign markets (World Automobile Industry Challenges and Prospects 2009). The cost conditions also affected the competition in the US. Auto manufacturers have high fixed costs and when the demand declined their sales fell below breakeven levels increasing the losses (World Automobile Industry Challenges and Prospects 2009). These factors also created high exit barriers, the companies are locked into an unprofitable industry where overall demand is declining and there is excess productive capacity. This has increased the intensity of rivalry. 4. 0 The Internal Environment In this section, we use the value chain analysis and we analyze the core competencies of Ford Motor Company to understand its operation. We also come up with a SWOT analysis and it was included in the appendix. 4. 1 The Value Chain Analysis 4. 1. 1 Primary activities 4. 1. 1. 1 Inbound Logistics Currently, all regional Ford motor companies, manages their inbound activities through the use through an information system called the extended warehouse management system with the assistance of SAP and Deloitte (Deliotte 2010). The system encompasses all the inbound logistics such as inbound delivery processing, put away location determination, quality management, return from vendor, goods receipt, put away and return from dealer (Deliotte 2010). As a result, inventory control becomes easier by using the just in time system. 4. 1. 1. 2 Operations The organization has embarked on sustainable manufacturing practices to address environment issues such as efficient energy use, waste management and their carbon emissions. Ford Motor is restructuring all its assembly plants around the globe to a flexible manufacturing system, to assemble different vehicles models on the same plant. This will help to gain efficiency and meet customer’s ever changing demand. Most of the US assembly plants have already been changed up to now. However over the past decade, the production of the small cars is not profitable due to the increasing production cost and manufacturing expenses. Ford has also developed a new program development to develop new car in a smaller lapse of time in 8 to 14 months. 4. . 1. 3 Outbound logistics/ Service Ford Motor Company has appointed dealers around the globe to manage their outbound logistics. However over the last 6 years, the company noticed that it has an overcapacity of dealers to represent their product. Therefore, the management of the company has reduced their dealer network by 14% to strategically align with the market share for sustainable profits. In addition, the Fordà ¢â‚¬â„¢s dealers provide customer service in terms of after-sale support, maintenance of vehicles and sale of spares parts. 4. 1. 1. 4 Marketing and sales Ford Motor Company has a wide presences and distribution network in the following geographical region: North America, Europe, Asia Pacific, Latin America, Middle East, Africa, and Caribbean. At the outset of promoting new product designs, Ford attractive packages to their potential clients such as technological gadgets. Further to this, the company offer discount offer and financing options to the buyer. However, the downturn in their financial performance and that of their dealers, are limiting their ability to provide fully these financing facilities. Besides, the company attempts to increase their sales and improve their brand image by marketing their product in the media and participating in car exhibition 4. 1. 2 Secondary activities 4. 1. 2. 1 Organizational Infrastructure Ford’s organizational structure is very complex and bureaucratic. It comprised of a six layers management. As a result, implementation for changes in the organisation will take considerable amount of time. In addition, Ford’s family members in top management level have most decision making power and influence in the company. . 1. 2. 2 Human Resource Management The motor company strategically aligns its global human resource management activities towards the same goal through the â€Å"ONE Ford† program, for the success of the whole Ford team. The management of the company invest massively in training and development programs to develop a learning organisation as well as to strengthen the employees’ technical and leadership skill. The training programs include in-house training and web based training sessions together with mentoring and coaching programs. Ford Motor has created an internal college to cater for different types of training and development programs for all their departments and their global managers and executives. The enterprise acknowledged the benefits of a diverse workforce as part of its recruitment strategies to have a talented workforce. This diversity strategy embraces five focused areas to have a motivated workforce which are: â€Å"leading the way, fostering a respectful and inclusive environment, supporting work/life flexibility and supporting their diverse workforce and strengthening their external partnerships† (Ford Motor Company 2010). In a recent survey conducted in 2009, employees were satisfied with management. The company also ensure that it continuously promote a health and safety workplace. 4. 1. 2. 3 Technology development At Ford Motor Company, has invested massively to gear their manufacturing activities towards using a global lean production system for their product development in term of new technologies. They attempt to create superior product by using the following concepts to create superior product for customer: cross-functional integration, top-hat focused, virtual vehicle development and voice of the customer. Undeniably these ends will enable the enterprise to reduce cost of production. In addition, they use information technology in all their departments to improve their value chain. In addition, the company has invested in $14 billion in 2008 in advanced technologies to be able to provide fuel economy technologies to meet demands. 4. 1. 1. 4Procurement The automobile company developed a program called the Aligned Business Framework to conduct business with selected suppliers (Ford Motor 2010). The fundamental purpose of this program is the number production suppliers from 3300 in 2004 to 750 long term suppliers (Ford Motor 2010). The company will gain competitive advantage in terms of the cost and quality of manufacturing components when few suppliers will get large amount of purchases to assist them with their global programme. Ford used innovative information technology tool to enhance their procurement processes. The company has also form alliances and partnerships with different companies as well as with its own subsidiaries. 4. 2 Analysis of Ford’s Core Competencies To gain advantage over their competitors, Ford has several core competencies that can help them. Those core competencies might even help Ford overtake competitors such as General Motors or Japanese automakers in the automotive market industry. For instant a research conducted by the company Merrill Lynch and the Bank of America (2009) predict that due to Ford core competencies and good planning they will surely, by 2013, have higher market share than GM, Toyota, Nissan and Honda. The research predict that Ford will have a 3. 0% market share followed by Honda with 3. 0%, Toyota with 1. 0%, Nissan with 0. 5% and finally GM with -5. 0%. Beginning with Ford brand equity, According to William Clay Ford, Jr. 2010) the executive chairman at Ford Motor Company, Ford conducts many brand tracking studies in different countries. Ford brand has a strong and high recognition worldwide and this recognition is growing rapidly in countries like China, India and Indonesia. One reason this is so, is that in all those country, people can access the Ford website and see all the models that they sel l worldwide. This mean two things, first that everybody can see and buy all the models that Ford produce and this make Ford models owners in China, India and Indonesia proud because they are driving the same car as American, English and French people. The second outcome is that long ago and still today some car manufactures sell old technologies and old car models to those countries, leaving the customers frustrated and no choice than to buy out-dated models. Thus Ford has managed to create high brand equity in those countries, despite the fact that Ford does not have a strong presence there yet (Ford, 2010). In some remote countries where cars are not a popular medium of transport, people recognise and have a high esteem for the Ford brand. For example in Chile where people still pass on cars from generation to generation. Jose, Mendez, Podlech and Olave (2004) conducted a research to know the best way for Ford to have good brand equity. They found out that Ford should make an advertisement that shows the emotional bond a person have with his Ford car model rather than showing the vehicle functionalities. This shows that even if Ford is not well present in some countries they care that people have a good image about the company and Ford brand. Ford has an excellent supply chain management, which is another core competency. This is due to the fact that Ford has maintain a good standing and long-term relationship with their raw materials suppliers such as steel, glass, plastic and many more. This has allowed Ford to maintain a constant flow of raw materials coming in for production. Furthermore there logistics system allowed high coordination between the outsourced firms and this has lead in a brilliant inventory management and steady flow of automotive parts for smooth production activities. Some of the suppliers are Bosch, Hankook, Superalloy, Siemens, Sanyo, Panasonic, Pirelli, Johnson Matthey, and many more. Bosch for example deals with engines parts. Bosch is not the only supplier of Ford Motors but all Ford Motors joint ventures and associates like Mazda who benefits from the same improvement and progression found in Bosch engine parts. Moreover Ford being the first mover in the moving assembly line detained here another core competency. Ford is the pioneer of the mass production system, which later on has been copied by Mr Toyoda from Toyota. This core competency has allowed them to manufacture and deliver their product at high speed not to mention that this save time and costs in the process. Ford loss that competency when they try to buy and manage many different car manufactures at the same time in the past but recently when they sold all the other car manufacturers and focus on their core business, that is to sell Ford models they reacquired this competency. The last but not the least Ford is listening to their stakeholders namely, investors, consumers, NGOs and others in terms of a more sustainable vision. Stakeholders are more environmental conscious and believe in sustainability and made Ford aware that they need to consider environmental and social costs as genuinely as they take financial costs. As such, Ford has given enormous attention to its research and development department in terms of efficient vehicles. This can be seen in recent models of Ford were by they are more economical in fuel consumption yet powerful, smaller in size yet spacious-well design interior and less expensive yet high quality. Ford has integrated sustainable development into their planning and business enterprise measurement systems in order to achieve the sustainability vision potential. This has proved to be a good move by Ford as many investors are increasingly seeking sustainable companies and investors tend to avoid companies that have low environmental performance. This is so, as investors believe that sustainable companies have a better chance to survive over the long run. In addition to that consumers are not only searching for environmental friendly cars but more economic cars as the price of petrol is always on the rise and they find it more and more difficult to use big engine cars on a daily basis (Alan Mulally, 2010). 5. 0 Strategy Formulation To be able to develop sound strategies for Ford Motor Company, it is important that we highlight the problems Ford is facing. These problems were already mentioned in our strategic issues section. One of the most pertinent issues is the loss of the share market. Therefore, we develop our strategies in such a way that will help to counter the loss of market share. Additionally, we developed a TOWS Matrix which helped to formulate strategies based on our strengths, weaknesses, opportunities and threats. We have included the TOWS Matrix in the appendix. . 0 List of Strategies Based on the problem that Ford is currently facing, we believe that there are three strategies that might help to overcome its loss of share market. These strategies are the Financial Restructuring of Ford, Retrenchment Strategies, The Resource-Based Value Strategy and Product Differentiation. 6. 1 Financial Restructuring of Ford In 2008, Ford Motor Company was at a loss of $8. 7 billion. Nevertheless, the restruct uring of the organisation, make it reap a net income of $6. 6 billion for the financial year 2010. The enterprise’s declining financial performance is mainly because of the two main reasons, the accentuating production cost and operation expenses and decrease in demand for their product. Fierce competition in both foreign and domestic market, and the financial crisis as well as the soaring price of fuel had a negative impact on their sales and market share loss. The annual sales of Ford fell down to 31% in 2008. Currently, that is before any restructuration of the company, it has an excess capacity and duplication of their operations as they are done separately at different geographical areas. In addition the financial position of the company suffered because of their $13. 2 billion paid in 2009 to meet their obligations to give post-retirement benefits to retired employees. As a result, they have to develop a new corporate strategy to resolve the issues. 6. 2 Resource-based value Mr Henry Ford painted the Ford Model T in black only because black dries quicker than any other colour. That is the spirit that Mr Henry Ford left in the company and Ford is still using model such as the just in time management to produce its vehicles. Two or more ideas came out under the â€Å"ONE Ford† plan. â€Å"ONE Ford† plan consist of producing the same Ford model for the world market, for example the new Ford Focus will be the same in Mauritius, America, England, France etc Ford Motors has realised that instead of using different platforms for different models they can reduce the number of platforms and make it more polyvalent, that is more models can be build on only one platforms. 72% of all vehicles that are sold under the Ford brand will be build on 15 platforms by 2012. Furthermore Ford had such trust in its supplier, Johnson Matthey for example, that Ford has given the company the liberty of designing and engineering parts for the seat. This allowed Johnson to produce the seat on a global market perspective and the outcome is that Ford Motor was able to reduce the cost of seat by 40% on the new Focus. Ford has redesign and reorganise its resource- based value to make the company more efficient in building its vehicles. (Ford Motor Company 2011). 6. 3 Retrenchment Strategy Under this strategy the company will have to reduce the diversity of their operations in various around the globe. This means that the company has to undertake activities such as divestment, liquidation of assets, and withdrawal of their products in saturated market such as Europe while focusing on new emergent markets such as India and China. Further to this, they have to focus on the contraction of the operations in few assembly plants. These activities will make the company to become stable (Grant et al. 2011) while ensuring their growth. The management has to close down further the four plants that they announced in 2008 and sell their remaining four ACH plants. 6. 4 Product differentiation Ford core product in Australia is the ford falcon and ford territory which are sold in Australia as well as exported to market such as New Zealand, South Africa and Thailand. (Elly Haug 2006). Ford did not anticipate that vehicles such as the ford territory will be regarded as a polluting motor car going against the new green purchasing mind set of customers during the previous years. Another factor that goes against the Ford territory is the rising oil prices from 2005 oil crisis until now the Libya oil crisis which had made petrol prices reach record prices. This continuous increase in the prices of petrol did have consequences on the buying criteria of customers that shifted from high petrol consuming vehicles such as the ford territory to more economic cars. The combine factor which not green vehicles and high consuming vehicles make Ford surely consider changing the features of the Ford territory, for example equip the vehicle will more eco engine will help to remove the poor image of SUV such as done by Lexus for it SUV by making use of the hybrid technology. This engine also drops petrol consumption making the petrol bills for customers becoming more attractive. Ford must establish a sustainability plan to achieve continuous and innovative improvement in fuel reduction and CO 2 reduction. The Australian car market is one of the most competitive market in the world, with more than 50 brands offering over 350 models in a relative small market by global standards (Elly Haug 2006). The resulting effect of this situation is low market share per brand with a continuous decrease of locally manufactured brand such as Ford territory and falcon. The above analysis show clearly that it will be more and more difficult in the future to manufacture and sell car in Australia, Ford will have seriously to consider the option of restructuring the company by selling it production plants especially the ford territory and make use ONE Ford plan thus making small, medium and large vehicles in the car, utility and truck segments facilitated by using Ford’s world class vehicles available in all of our regions. ONE Ford plan enforces product excellence through leadership in fuel economy, innovation, quality, safety and leading edge â€Å"comfort and convenience† technology. The maintenance cost is another factor which consumers seek before purchase of a car, it thus of importance in ford product offering to consider the cost of maintenance by providing competitive price for space part and servicing at ford concession. This will enable the company to gain competitive advantages over its competitor, in an area ignore by many others company. 7. 0 Recommendation and Evaluation The different strategies we mentioned in the above section can be used to overcome the loss of market share. However, Ford should adopt the Financial Restructuring of the Organization. This is because it will help to avoid unnecessary costs. Strategic restructuring reduces financial losses, simultaneously reducing tensions between debt and equity holders to facilitate a prompt resolution of a distressed situation. Moreover, a company that has been restructured effectively will theoretically be leaner, more efficient, better organized, and better focused on its core business with a revised strategic and financial plan. It is also important that the strategic financial restructuring of Ford is done in the shortest possible delay or precisely before three months. This is because we are experiencing a dynamic business environment whereby competitors are also looking forward to capitalize on the market share. The financial restructuring will be successful only if it is implemented in the right time. 8. 0 Conclusion From our analysis, it can be said that there exist opportunities in the external environment of Ford as it has a moderate external environment. Ford also has some key competencies which might help the company to create and sustain its competitive advantage. Among the different problems that Ford has been experiencing, the most pertinent one is the loss of market share. There are different strategies that can be adopted to overcome this problem. The best strategy will be the strategic financial restructuring of the Ford Motor Company as it will help to avoid duplication of activities and will help to prepare a better financial statement report. 9. 0 Appendix 9. 1 SWOT Analysis Strength| Weakness| * Strong Brand image and equity. * Manufacturing capacity are in lined with customer demand. * Lean product development strategies at the plants. * Flexible manufacturing plants. * New product development process to reduce the development time for new vehicle. The adoption of new business structure, â€Å"One Ford† to work as a global organization. * Ford is ranked among top fourth non-luxury brands in the automobile industry. * Leading company for quality, safety and technology product. * Competence in producing fuel economy vehicle through cost-effective technology. * Balance product portfolio. * Product excellence and innovation. * Embark on susta inability projects. * Has flexible work arrangement. | * Too many suppliers for manufacturing components and there are overlapping of supplier networks. * Financial position is still dim. Low profitability for the production of small cars. * Labour constraints, including unions are reducing the company’s ability to restructure the organization. * Inefficiencies in the inventory and control process. * Operational expenses are high. * Poor financial planning and forecasting, accounting to large amount of debt. * Inability to maintain communication with all employees. * Inability to provide more benefits to employees compared to before. * Investment on other non-core assets. * Inefficient, complex and bureaucratic organisational structure with too many management layers. The members of Ford family has more power and influence in decision making power. | Opportunity | Threats| * Huge potential of investment exist in emerging economies such as Brazil, China and India. * The global economy is recovering from the recent global financial crisis. * Many governments wish to raise the living standard of their citizens. * Most economies are strengthening Intellectual Property Rights. * More emphasis being laid on greener cars. * Global demand for fuel efficient cars. * Global increasing rate of high skilled workers. * Better technologies availability. The tsunami in Japan benefits American and European car manufacturers . * Consumers want cars which reveal their personality. | * High level of rivalry in the Automobile Industry. * Trade unions are constantly fighting to safeguard employees’ interest. * Cost of labour is increasing. * Skilled employees prefers to work into different companies. * Fluctuations in exchange rates. * Environmentalists are increasing their campaign to reduce the number of cars on road. * Cultural clashes may hinder overall progress. * Natural disasters and calamities. * Suicide bombings and Terrorist attacks. 9. 2 TOWS Matrix OPPORT UNITIES| THREATS| 1. Huge potential of investment exist in emerging economies such as Brazil, China and India| 1. High level of rivalry in the Automobile Industry| 2. The global economy is recovering from the recent global financial crisis| 2. Trade unions are constantly fighting to safeguard employees’ interest| 3. Many governments wish to raise the living standard of their citizens| 3. Cost of labour is increasing| 4. Most economies are strengthening Intellectual Property Rights| 4. Skilled employees prefers to work into different companies| 5. More emphasis being laid on greener cars| 5. Fluctuations in exchange rates| 6. Global increasing demand for fuel efficient cars| 6. Environmentalists are increasing their campaign to reduce the number of cars on road| 7. Global increasing rate of high skilled workers| 7. Cultural clashes may hinder overall progress| 8. Better technologies availability| 8. Natural disasters and calamities| 9. The tsunami in Japan benefits American and European car manufacturers | 9. Suicide bombings and Terrorist attacks| 10. Consumers want cars which reveal their personality| | | | | S1+O1: Using the strong brand image, establish in the emerging economiessuch as Brazil, China and India| S1/S8/S11+T1: Using and maintaining the good image and product quality of the company, can lead to ford surviving and making profitsin the industry| S10/S12+O5: Introduce greener cars to the balance product portfolio| S6+T7: Employees will be acquainted to the culture of One ford of the company, seeking to enhance th e performanceof workers working together| S8/S11+O8: Constant innovation and using the better technologies available to gain competitive edge. S4/S13+T2: Owing to the flexible manufacturing plant and work arrangement, employees interest will be safeguarded, reducing the risk of disagreement with trade unions| S1/S8+O9: Using the strong reputaion, exploit the advantages of american car manufacturers due to the tsnami in Japan. | S8+O4: Skilled employees would be keen to work for Ford as the company is deemed as a highly reputed one and employees can make career advancements| STRENGHTHS| 1. Strong Brand image and equity| 2. Manufacturing capacity are in lined with customer demand| 3. Lean product development strategies at the plants| 4. Flexible manufacturing plants| 5. New product development process to reduce the development time for new vehicle| 6. The adoption of new business structure, â€Å"One Ford† to work as a global organisation| 7. Ford is ranked among top fourth non-luxury brands in the automobile industry| 8. Leading company for quality, safety and technology product| 9. Competence in producing fuel economy vehicle hrough cost-effective technology| 10. Balance product portfolio| 11. Product excellence and innovation | 12. Embark on sustainability projects| 13. Has flexible work arrangement| | | | WEAKNESSES| 1. Too many suppliers for manufacturing components and there are overlapping of supplier networks| 2. Financial position is still dim| 3. Low profitability for the production of small cars| 4. Labour constraints, including unions are reducing the company’s ability to restr ucture the organisation| 5. Inefficiencies in the inventory and control process| 6. Operational expenses are high| 7. Poor financial planning and forecasting, accounting to large amount of debt| 8. Inability to maintain communication with all employees| 9. Inability to provide more benefits to employees compared to before| 10. Investment on other non-core assets| 11. Inefficient, complex and bureaucratic organisational structure with too many management layers| 12. The members of Ford family has more power and influence in decision making power | W4+O7: The global increasing rate of skilled workers can compesate for the labor constraints| W10+T8/T9: Due to uncertainties, the company can invest in other well evaluated core assets to minimize risks| W5/W6+O8: Better technologies can lead to efficient inventory management and control process, further reducin operational costs| | W3+O10: Consumers will tend not to focus on small cars, instead on those cars that will reveal their personality| | W8/W9+S8: Efficient communication channels can be established within the company as well as performance management system to better reward employees| | 0. 0 Reference List Ford Defend Focus: Ford boss claims Focus sales are â€Å"exceeding expectations†, despite slump. 2010. http://www. goauto. com. au/mellor/mellor. nsf/story2/DAA074726BEB71A7CA2577C000010E9F Audi No Threat: BMW’s true rivals in Australia are Lexus and Mercedes, not Audi: Seemann. 2007. http://www. goauto. com. au/mellor/mellor. nsf/story2/29BD68AA9B6E146DCA2 572F900097F05 Edgerton, Jerry. 2010. 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