STRATEGIC PLANS

Strategic Plans for Ford and Honda Motors

Strategic Plans for Ford and Honda Motors

Introduction

Honda and Ford Motors have a leading position in automobile designing and manufacturing industry. Honda Motors has diversified its product offering in automobiles, motorcycles manufacturing, power products development, and financial service for customers and dealers. This paper compares the Ford Motors and Honda Motors, and presents a brief SWOT analysis of the companies along with strategy for addressing issues.

Ford Motors and Honda Motors Corporation Analysis

Company currently has 390 subsidiaries and 102 channel partners across the globe. Ford Motors is specialized in manufacturing and distribution of cars and trucks. It currently has more than 70 manufacturing facilities worldwide. Automotive segment of the company deals in designing, development, manufacturing, sales and service of cars, trucks and service parts. Ford Motors sold approximately 5,524,000 vehicles in FY2010 (Data Monitor, 2011b); whereas, Honda Motors sold approximate 3,392,000 units of vehicles. Honda Motors entered into a joint-venture company with Indonesian suppliers to expand its annual motorcycle production capacity to 3.5 million units, and expansion in production to 4 million units' of cars by the end of year 2015. Ford Motors is expecting to achieve a cumulative growth of 60% by the end of year 2018 (Data Monitor, 2011a).

Social and external challenges for both companies are similar. Honda and Ford Motors, both are addressing the community building prospects to expand the value of business as CSR responsibility. Honda is supporting the educational support for disadvantaged children in China, and performing forestation activities in Mongolia. Ford Motors is investing is establishing the educational support and coalition fund for poor people, and protection of environment as part of external challenges (Ford Co., 2011).

Ford invested $450 million in the electric vehicle plan 2016, to manufacture a hybrid and plug-in hybrid vehicle (Data Monitor, 2011b). In year 2010, Honda Motor introduced the Fit EV Concept electric vehicle as a midsize plug-in hybrid vehicle. Honda also introduced U3-X test-model, personal mobility unit as part of its alternative fuel and propulsion system (Data Monitor, 2011a).

Ford Motors Global Manufacturing Site

SWOT Analysis of Ford Motors

This section presents the SWOT Analysis of Ford Motors under the perspective of Fords Director of Strategic Planning, Thomas K. Brown.

Strengths

Strong Brand Image

Ford has a strong brand-image in the automobile industry. The annual BrandZ Top 100 survey, for the year 2011, ranked Ford brand eighth in the automotive brands. Ford Motors has a brand value of $7.4 billion, showing an increase of 5% in 2010 compare to Year 2009 (Data Monitor, 2011b). Brand recognition allows Ford to charge premium prices than its competitors and therefore register relatively higher margins.

Extensive Operational Network

The company has a strong and diversified operational network. Ford operates a strong network of assembly and manufacturing facilities, engineering centers, distribution centers, administrative and sales offices, and warehouses. Ford Motors currently have 73 manufacturing plants, 45 distribution centers, and 57 R&D centers. In addition, Ford operates 12,000 dealerships worldwide, including 10,719 Ford brand dealerships, 284 Lincoln brand dealerships, and 997 Ford-Lincoln (combined) dealerships ...