Strategic Plans

Strategic plans for the Ford Motor Company and the Honda Motor Corporation

Table of Contents

Introduction3

Auto Industry3

Honda Motor Corporation4

Ford4

SWOT ANALYSIS5

Honda Motor Corporation5

Strength5

Weakness5

Opportunities6

Threats6

Ford motors6

Strength7

Weakness7

Opportunity7

Threats8

PEST analysis8

Honda Motor8

Ford Motors9

Strategies9

Honda's strategy to Cost structure9

Ford's strategy to Product recall (jaguar)10

Honda's alternative fuel strategy10

Introduction

The research will highlight the current scenario and position of the two giant companies of the automobile industry: Honda Motor Corporation and Ford motor company.

Auto Industry

The global world is trapped in the stage of recession. The financial crisis, which has been witnessed at its worst in the couple of months, has aggravated the recession and weakens economic growth coming in the succeeding months. Around the world, specifically talking about America, about 4% of the aggregate GDP has been spent on producing new vehicles. Because of such heavy investment on the production of new vehicles, the auto industry is one of the first to suffer from bad economic conditions. As the financial crisis continues, both credit accessibility and consumers' shaken assurance have contributed to a devastating turn down in motor vehicle sales. The further financial position is also negative, with a broad variety of probable result due to the doubtful financial market atmosphere. In America, expenditure by consumers has fallen at a yearly rate of nearly 4%. According to the economists, recession and fiscal crisis has resulted in the automotive industry sales volumes at the lowest yearly level in 25 years. (www.media.ford.com).

It is believed that the worldwide economic and industry recession will be broader and deeper than previously expected, with industry volumes in the current year is probable to decline from the low levels of the preceding years. Automobile's suppliers and dealers, who are already in serious depression, are expected to be effected the most. Furthermore, continuing turmoil in the U.S. and global economies and tensed credit markets are more likely to weaken customer confidence and impact to the automobile business.

Honda Motor Corporation

Honda Motor Corporation was established in 1948 and is the largest manufacturer of motor vehicle in Japan, after Toyota and Nissan. Being the world largest producer of internal combustion engines, Honda Motor is also recognized internationally for its knowledge and management in producing and manufacturing a broad range of products, from small to sport engines. The global network of Honda motor company is huge, as it comprises of 434 subsidiaries, which also includes 118 production facilities in more than 33 countries (www.web.mit.edu). The highest consumption of Honda motor cars is seen in Japan and North America which totals 40% of the company's revenue.

Ford

After General Motors, Ford is the second largest maker of cars and trucks. Famous brands like Aston Martin, Volvo, Lincoln, jaguar and mercury, come under the umbrella of Ford Motors. Ford Motor Company not only operates in the production of motor vehicles, but also it is the top auto finance company in America. Ford also owns the top car rental company of the world by the name of Hertz and also has a 33% stake in Mazda (www.cisco.com).

SWOT ANALYSIS

SWOT analysis is the internal evaluation of the company's competitive advantage, the factors which ...