Business Analysis Essay examples

3963 Words Sep 23rd, 2012 16 Pages
Business Analysis: Ford Motor Company
Milan C. Kelly
MGT 521
Christopher Romano
August 1, 2011

Abstract

In recent years several American corporations have seen record low sales and profit accumulation. Ford Motor Company is a company that has made steps toward improving sales, profit, and meeting the needs of all stakeholders. As a mutual fund manager, I will examine the SWOT Analysis, financial statements, and trends in the market to determine if Ford Motor Company is a wise investment.

Recently, Ford has changed to make the company more appealing to investors. Strengths in the company include: strong engineering capability, extensive dealer network,
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Forbes Magazine ranked Ford eighth in revenue for large American corporations that solidifies their market position.
The weaknesses of Ford Motor Company are recalls for products, issues with acceleration pedals, and inadequate cash flow. Manufacturing and design issues have resulted in several product recalls. When examining Ford as an investment, this proves problematic because there are concepts during development that are overlooked. Product recall can be interpreted as poor quality that can deter consumers from purchasing the product thus, impacting sales. In June 2010, Ford had to recall 200,000 vehicles in China and 170,000 vehicles in South America due to issues with the ignition, ball bearing, and bad window switches. Although there have not been recent recalls in the United States, knowing that there are recalls taking place in growing global markets is important in examining the overall investment potential of the company. In America, Ford models such as Fusion, Escape are under fire for problems with the acceleration pedal. This safety issue compromises Ford’s commitment to safe vehicles and puts the company in a position to be penalized by the National Highway Traffic Safety Administration. Being penalized by the government can result in fines and production of vehicles can be suspended. Both outcomes could be very costly to the company and its stakeholders. Ford has reported a 2.8% decline in

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