Internal Environment of Ford Motor Company
Ford, like many automobile manufacturers, has shifted their post-recession focus towards sustainability. They are investing in innovative new models, new fuel-saving technologies, remodeling existing plants for better efficiency, and building new plants around the world. They have converted some of their factories, which previously manufactured their F-series line of trucks exclusively, to produce their fuel efficient cars and SUVs. They are building six new plants in the coming years, “three in China, two in India and one in Thailand” (Niemann, 2013). One of the plans in China will exclusively build the Ford Focus line because they have seen a great customer response to the small car line in the country. Ford feels that consumers in China will also have more opportunities to purchase automobiles as they see the poverty levels decreasing. They want to be the brand that everyone can recognize and identify in the country, and that is why they are focusing so much of their investment funds in the area. On the tail end of the economic downturn, Ford began issuing its quarterly stock dividends again in March of 2012. The quarterly dividend program was suspended from 2006 to 2012 (Niemann, 2013). As they provide more small and mid size cars, Ford also looks to increase fuel efficiency in its larger vehicles. In 2012, they introduced the 2013 Ford F-150, the best selling truck for the past decade, as the most fuel efficient model in its class. Ford had outstanding debt of $13.1 billion just a few years ago, but by introducing their ONE Ford strategy they have brought the balance sheet back to pre-recession ratios. Ford boasts they have “increased Automotive gross cash, reduced debt and improved liquidity” all without any bailout money (Niemann, 2013). Ford also plans to make profit sharing payments to all 41,600 eligible employees in the United States with an average payment of $6,200 for the year per employee based on...