Ford Motor Company Strategic Audit

Ford Motor Company Strategic Audit

Abstract

The purpose of this paper is to give a brief detail of the strategic audit of Ford Motor Company. The method of research used was Internet research by topic. In addition to the class textbook audit example used, other written references in the area of Ford Motor Company were used, in order to develop the subject more in detail. This topic was selected among a series of topics of general interest in the area of strategic audit for a corporation, as a class requisite. The different aspects of development and research studies findings are discussed in detail or briefly. The subject of “Strategic Audit of a Corporation” is what this paper is about. Some of these topics are briefly discussed.

Ford Motor Company

The current situation of the Ford Motor Company, revenue of $44 billion, 6 percent above second quarter 2006. The company net income of $750 million, or 31 cents per share, for the second quarter of 2007. Profit of $258 million, or 13 cents per share, from continuing operations excluding special items. There was a significant year-over-year improvement for all automotive operations. Ford Motor Credit pre-tax profit of $112 million. Cost reductions of $600 million; $1.1 billion through the first half of 2007. There was automotive gross cash at June 30, 2007 of $37.4 billion.

Ford Motor Company sales and revenue over the last three years has fluctuated tremendously, 2005 was 176.8 billion, 160.1 billion and for the year of 2006 and 172.5 billion for 2007. The current return on investment is -10.4 as of 2007.

Ford Motor Company current mission statement is “committed to provide personal mobility for people around the world”. With that in mind their vision is to become the world’s leading Consumer Company for automotive products and services. By improving everything they do, the company provide superior returns to their shareholders (Vision, Mission, Values).

"Ford Motor Company's objective is to deliver a total return to shareholders in the top quartile of the S&P 500 over time”. The company will meet this goal by the transformation into the world's leading consumer company for automotive products and services which make attractive dividend yield and growth in their share price (Ford Motor Company increases fourth-quarter dividend by nine percent).

Over time, Ford business strategy has responded to the challenges of the motor industry. The corporate culture of Ford management is establishing strategic business units that complement the company's global scale and structure.