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Ford' Business Analysis

Essay by   •  October 26, 2011  •  Case Study  •  1,624 Words (7 Pages)  •  2,070 Views

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Article from Automotive News: Ford credit rating may get Moody's upgrade after UAW accord (October 2011).

My education, professional experience, and research finesse will serve me well when beginning to decide whether or not to invest in Ford Motor Company. As a mutual fund manager I decide where the best place is to recommend that my clients invest their money. The customary place to start in most businesses would be with a business analysis that would outline the strengths and weaknesses of the Ford organization. The information gained from this analysis would drive my business practices I will use for my own investment strategy.

The most relevant parts of my analysis that drive my decisions are the proven competency that FMC has sustained over the last one hundred years. Ford has been in the automotive business for a century. During that time they utilized their strategic management skills to generate income. The challenge would be for me to go beyond what is happening today with my current income, family situation, and financial restraints. I am looking to invest now in something, that will stand the test of time. The investment in Ford will be used for my retirement and my family's future financial security.

When I decide whether or not to invest in Ford Motor Company, I will find out as much information that is available about FMC's company history and financial stability. What was found in my research into the history of the Ford Corporation was that the first successful endeavor began with the Ford's Model T. Henry Ford designed the Model T back in the early 1900's and was the first successful inventor to get the automobile to work properly.

Since then, Ford has grown to a multi-billion dollar business. More recently over the last 10 years the market has changed due to the economic recession. In order to explain the trends of the business industry and how Ford compares to the financial history of that industry gives the background information to address any fears clients may have for their money. Although the market may change and my needs may change I feel comfortable with the choice to invest in Ford because they have remained constant. They are not as affected by the vulnerability of the recession and business cycles as other businesses in their field of expertise.

Their strong market image, diverse product base, and potential to serve a large customer base helped me decide that this would be a great investment opportunity. The past performance and trends in business, including the financial and automotive industries have remained relevant and profitable. By staying up with new business trends, market demands, and facilitating solid business practices FMC has remained a top market competitor. Ford's mission today is "One Mission, One Team, One Plan, One Goal," ( Article (January 2007). Retrieved from Achieving Business Excellence).

While conducting my strategic business analysis of Ford's current business practices I discovered that Ford did not require any assistance from the government. The government was busy bailing out financial institutions, automotive companies, and other companies. Ford did not require any assistance because of their solid business practices and investments. Ford's financial situation in 2010 was "net income of $6.6 billion, a $3.8 billion increase from a year ago and its highest profit in more than ten years," (Sustainability Report (2009/2010). Ford Motor Company website ).

Ford Motor Company financial product lines include: loans, leases, business loans, and lines of credit for businesses. In addition, PRIMUS Financial Services provides the non-Ford financing for other automobile financing income. This adds the solid base of a low risk investment due to a diversified portfolio that FMC has developed and maintained over time.

While I was searching for specific weaknesses of the internal environment of the FMC it helped me gain the necessary information to give a full analysis of where the company stands currently. I proceeded to identify any external opportunities or threats that would affect the return on my investment. I used the information to guide me on solidifying my decision or revealing any potential problems with my choice to invest. Although the financial market has no guarantees if I let my investment grow and leave it alone it will grow into a nest egg

Utilizing the core competencies in the key areas of Ford's business would be a great place to begin my analysis. Most people would probably ask why they should invest in a company before they do so. Fortunately, those clients would have heard of Ford, because they have been around for a while. However, they probably



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