Communication Audit Report on Ford Motor Co., Essay Example

Ford Company (Ford) is one of the biggest organizations that transform vehicles internationally. It fabricates various types of vehicles and conveys them to more than two hundred business sectors over all the world. The organization has numerous brands,which have been created in the years of its operations. A portion of the brands of autos made by Ford incorporate Jaguar, Lincoln, Volvo, Aston Martin, Land Rover, and Mazda. The organization’s operations are majorly in the United States of America and Europe, yet it has branches everywhere throughout the world. It has its home office in Dearborn, Michigan, and it has more than 300,000 workers in all its extensions and subsidiaries. As indicated the organization recorded a net benefit of $8.6 billion in 2013, which was an expansion from the $2 billion dollars that was recorded in 2012. (Ford, 2013) This report will major on the communications audit that examines and investigate the internal and external aspects of the Ford Motor Company. The key objectives of this reports are to discover the utilization of the key communication tools by using primary and secondary research of the business. Notwithstanding other composed references of Ford Motor Company were utilized, with a specific end goal to create the subject all the more in subtle element. This theme was chosen among an arrangement of points of general enthusiasm toward the region of key review for an organization. The report will additionally offer proposals to the organization on the most proficient method to enhance its operations.

Overview of the Company

Ford was built in 1903 by Henry Ford and different partners, and it made its first auto model and likewise making its first shipment in that year (Keatley, 2005). The acclaimed T model was propelled five years after the fact in 1908. In 1917, the organization moved up to trucks and tractors which were exceedingly utilized within cultivating and development exercises. The organization began handling extravagance vehicles in the wake of procuring the Lincoln Motor Company. Portage Motors opened up to the world in the year 1956 and before the end of ten years it transformed one of its most well-known and fruitful autos, the Thunderbird. The organization stretched its viewpoints in 1967 when it secured Ford Europe. The extension proceeded for a few years all around Europe and Asia. In 1987, Ford obtained the Hertz auto rental business by aiding in the establishment of the Park Ridge Corporation. The acquisitions of Ford proceeded as it encountered proceeded development and in 1990, it obtained Jaguar. In 1999, an alternate securingwas made of the repair of Kwik-Fit and Volvo’s traveler vehicle business was likewise obtained later in the year.

Ford Motor Company current mission statement is “One Team. People working together as a lean, global enterprise for automotive leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community Satisfaction. One Plan. Aggressively restructure to operate profitably at the current demand and changing model mix; Accelerate development of new products our customers want and value; Finance our plan and improve our balance sheet; Work together effectively as one team. One Goal An exciting viable Ford delivering profitable growth for all.”(Ford Motor Company, 2013).
In 2000, it obtained Land Rover from BMW, and it additionally spun off its Vieston car segments. In 2002 and 2003 Ford made its vicinity greater in China.Keatley (2005) states that Ford entered into a joint wander concurrence with the Changan Automobile and guaranteed that the Changan Ford gathering plant was in full operation, and it handled the Fiesta in 2003. Later in the year the Ford benefits in Thailand additionally got operational. Ford had additionally wandered into games autos, and in 2004, it sold Cosworth, its principle sport innovation building organization and Jaguar Racing and likewise its recipe one group.In 2005, it propelled the F-arrangement super obligation and the Expedition King Ranch. The series of advancements has kept on doing. In 2006 Ford posted its greatest working misfortune to date, $12.6 billion (Keatley, 2005). In that year, Allan Mulallywas enlisted as CEO and assumed control over the organization at the highest point of disappointment. He rebuilt the organization under the business strategy the “The Way Forward”. Within this new business strategy, included the conclusion of seven gathering plants and vital introduction towards “one Ford”. This system concentrated on making a standard Ford identity which is seen and felt inside every car prepared organization. Ford at the time, stated that Ford sold every last bit of its benefits in December 2006 for $23.4 billion line of credit.(Ford Motor Company, 2013). Ford, likewise agreed that the organization needed to be stripped some of its non-Ford brands and it sold to Tata Motors, the Land Rover and Jaguar divisions for $2.3 billion in 2008.

Ford Company has numerous representatives overall and markets its vehicles under four brands specifically Ford, Lincoln, Mercury and Volvo. The Company is isolated into two offices that are Automotive and Financial Services. It offers credit benefits in vehicle financing to both retail customers and merchants. Magee (2011) reports that vehicles sold inside the United States by dealerships connected with the organization in 2008 were financed by Ford credit. Ford’s car portion plans, transforms and administrations autos, trucks, SUVs and vehicle parts and extra parts. This segment is broken around the district and the areas incorporate North and South America, Africa, Asia Pacific, and Europe (Magee, 2011). The main provincial exemption model is Volvo. Ford retail deals operations work under a dealership model. As per Magee (2011) at the end of 2008, Ford worked about 3,800 dealerships inside the United States. The organization’s key items and administrations incorporate cars, trucks, transports, tractors, money related administrations, motorsport and auto parts.

Data Collection

Within this report, the data was collected using primary and secondary research methods. The data includes their strategic communication practices that include aligning with their vision and their mission statement. Their vision is identical to their mission of “one Ford, one plan, and one goal.” (Ford Company, 2014) Financial information of Ford reflects decidedly as an industry titan holding solid in its position after a hard-hitting subsidence that left numerous organizations in durable recuperation, insolvency or shut. The fiscal wellbeing of Ford has enhanced and is on focus to build income, benefits, and stakeholder engages. Administration must keep on accelerating the ONE Ford arrange effectively. Short and long haul money related arranging with checking money stream, plan advancement and stronghold of budgetary controls to analyze organization objective accomplishment (Magee, 2011). Ford improvement in territories of fuel proficient autos, worldwide distinguisher, cutting edge innovation and the brought together ONE Ford Plan expands their chance for manageable quality. The ONE Ford arrangement hardens distinguishes of Ford as a worldwide association that constantly prepares quality items, inner and outside stakeholder attachment and better brand distinguishes (Ford, 2012) Ford claims 16.5% of the piece of the overall industry overall and their life span holds in the business region on 6 landmasses. Ford Motor Company, in the same way as its items, is constructed to last. Their item offerings are comprehensive of and coordinated by shopper request.The ONE Ford technique speaks to the organization’s maintainability attempt and attempts to appropriately serve their clients through the merchandise and administrations they supply.

The defined goals of the company includes a business strategy to regularly review their business environment, opportunities and risks, their plan, strategy, and identify the areas of their plan in which need to spend particular attention to, to pursue opportunities to improve their business strategy. (Ford Motor Company, 2014) More critically in creating their new mission and vision plan to correlate to their business objectives and goals, they needed to hire a group of people that work as a lean and global enterprise that measures the employee, customer, investor, supplier, dealer, and community satisfaction. They decided to target select audiences that include those looking for affordable and innovative new cars, which had longer mileage and dependability. They did this by concentrating aggressively on social media in order to target customers and influencers. Ford worked with WPP, and developed programs that were unique to allow them to engage with Facebook, Twitter, and blog users that would add value to the company. The company sent out emails to influencers and bloggers, and let them test drive their new line of cars on their spring vacations. In an exchange of emails the company encourage the bloggers to share their experience on social media, and gained some followers and insight through these strategic communication tools. (JB, 2010)

From this early experience with social media, they begin to develop a new message in order to reach a younger, more influential target audience. They develop more social media presence on Pinterest, LinkedIn, and Google +. Their users grew to over 159 million in 2012. (Soat, 2012) The company has developed a message to their “community of advocates”, in which they have created a CRM system that allows the company to engage and respond to users comments, and other media interactions. The company continues to use traditional communications outlets such as television, magazine, and other print advertisements, but has gained considerable traction using social media platforms to sparked renewed interest in the company. The risks and contextual variables that can affect communications success includewhat Scott Munty, Manager of Digital and Multi-Media communications has said,
“Rather than continually moving on to the next big thing, I think it’s our responsibility to look at that thing that we have done, and to look at what worked, and what didn’t work, and to constantly improve the process, even if it means doing the same or a very similar thing over again to make it a better users experience for the customer or for the end user.” (Soat, 2012)

The risks include reaching the millennials and the baby boomers, who do not have a large presence on social media. The company has to constantly compete with other automobile companies that are producing similar models, and use social media tactics. Their implementation of their communication strategies is to tackle the major social media platforms, reach out to influential bloggers, and customers, and have them tell their experience of the vehicles. In doing so, the company has not only created a large following and presence online, but has created an innovative way in which to engage customers. They have developed effective means to implement their strategy, revamped their website to be user friendly, and consistently conduct steady outreach mechanisms to keep their audiences sustained. Ford Company is actively monitoring and evaluating their strategy, as described in their mission and value statements, as well as, through their CRM systems to handle their social media programs. (Soat, 2012)
By actively engaging their internal members, the official includes the directorate and the corporate officers. Parts of the board are mindful of settling on real vital choices in the organization. The corporate officers are dependable of usage and execution of the key plan to guarantee that the vital targets and objectives are attained.Ford has created a propelled arrangement of casual correspondence that demonstrations as a facilitator when formal correspondence is blocked by procedures and administration. These instruments incorporate casual group gatherings, notice sheets in the regular regions, and leaflets gave by the Human asset office. Discoveries drawn out from the meeting procedure found that the “grapevine” in the association reduced the organization’s capacity to convey successfully to its staff, a case of this was given as redundancies. By utilizing casual methods for correspondence, they discovered the issue could be determined by the group administrators being receptive in a casual way from staff to examine the issues. They have gained support and integration through their constant correspondence with Shareholders and Stakeholders. Fordhas a decently intricate framework for informing their financial gurus of the monetary state and prosperity of the organization. The most widely recognized method for telling existing clients is through their web site (Ford.com) Thatis overhauled normally with all the freshest reports, money related monetary records, and so forth. Their annual fiscal reports are likewise sent specifically to their financial gurus through the postal administrations; these reports are additionally accessible at all organization extensions and work places Fordlikewise utilizes outsidedistributors to report their budgetary welfare; these distributors typically incorporate business magazines, diaries, and substantial media aggregates.

From the way in which Ford has implemented their strategic communication plans, they have exhibited the type of level of communication business practices that Ford is on is, Level 5 optimized, where they regularly reflect on their business practices in order for continuous improvement. (Coffman, 2004) Ford has acknowledged in place for their rebuilding to work they need to place it in movement, so they quickened advancement of new items the clients need and quality. Accomplishment in the car business is focused around item. No component of “Our Plan” is more essential a quickened the advancement of new vehicles. This will get attained through: an adjusted and complete arrangement of little, medium, and huge vehicles; item greatness through the initiative in efficiency, advancement, security, quality, and heading edge of solace and accommodation, innovation; and substantial and constant change in building and speculation effectiveness encouraged by leveraging the worldwide stakes of “One Ford”.
In the last few years, Ford has conveyed six new world-class little to medium measured vehicles in the United States and this will empower the auto and hybrid item portion to build from 48% to 60% and bring about volume and offer development. Fordwill have fundamentallylessenedtheir van, game utility, and truck vehicles items from 52% to 40% in just three years. To understand an adjusted portfolio, they are expanding their venture assignment in autos and hybrids from 59% to 82% of the aggregate financing (Ford Motor Company, 2008). This has largely been based on their feedback from their social media communications strategies, in which Ford has relied on to invest in innovative ideas such as including hybrid- electric cars in their vehicle lines. (Roura, 2013). They are constantly going over their business strategy in order to please and reach out to new customers, which go along with consumer trends and demands. As Coffman (2004), points out, Ford demonstrates on level five, “an even higher level of organizational commitment to the practice, as the organization care enough about it to learn from and improve their performance over time.” (Coffman, 2004)

Looking at the company externally, their Strategic Communication Audit Matrix uses a variety of strategies that aligned with their mission and vision statement, as well as choosing to be a lean global enterprise, that leaves all components of their business satisfied, In a way to revamp their business plan, they sought new communication strategies to target a select audience of influencers, to develop a message a clean, friendly, customer-centric, and innovative car company. They decided to develop social media programs in order to communicate with prospective customers, and build on their customer base. From this implementation, they have amassed a large following, and becoming one of the leading car companies in the world. Ford Motor Company has encountered numerous changes in their marketable strategy to help better their monetary circumstance. They accept that the movement to more modest, more fuel-productive vehicles is perpetual, trucks, vans, and game utility vehicles will keep on being an essential a piece of the North American business sector (Ford Motor Company, 2008). Ford has and will keep on attempting to satisfy the customer with their innovative developments and fuel effectiveness vehicles their pieces of the overall industry are looking to a guaranteeing future.

Ford helps both interior and outside stakeholders. This might be closed by the recorded benefits of Ford; along these lines giving employment steadiness, venture returns, and expanded business movement through the improvement of new Ford models. The organization has made a great rebound with hopeful fiscal remaining in the wake of encountering the demolition of a fallen economy. Ford is at present equipped to give profits and keep up its remaining inside the main three vehicles makers close by Toyota and General Motors (GM). Ford’s anticipated development is on a slope with no immediate dangers hindrances in its way. Ford has demonstrated a noteworthy budgetary rebound from a short of what engaging safeguarded picture and ended up being a solid substance in the car business. Their profit for every offer have climbed from a -.26 to a great .35 as measured from 2011 to the first quarter of 2012 (CNN 2012).Ford has likewise indicated a 14.8% development on their profit for speculations and rank 14 in deals benefit in correlation to Toyota being 112 and General Motors at 45 (CNN, 2012). Presently, Ford positions as number nine of the Fortune 500 organizations in America climbing from number 10 in 2011 (CNN, 2012). The brand name of Ford is an image of American Pride. They must continue to engage with their target audience, and create innovative ideas that sets them apart from the competition, and aligned with their mission and vision.

References

Coffman, Julie. (2004). Strategic Communications Audits. Communication Consortium Media Center. Retrieved from http://www.ccmc.org/sites/default/files/WorkingPaper1.pdf

Annual Report 2013. (2013). Ford Motor Company. Retrieved from http://corporate.ford.com/annual-report-2013/index

Financial Reports and SEC Filings. (2014). Ford Motor Company. Retrieved from http://corporate.ford.com/our-company/investors/investor-quarterly-results/quarterly-results-detail/ir-20140128-fourth-quarter-results?releaseId=1377632166171

Ford Motor. (2012). CNN. Retrieved from http://money.cnn.com/magazines/fortune/fortune500/2012/snapshots/160.html

J.B. (2010). Beyond Print. Case Study: Ford Drives Best Practices. Communication World. Retrieved from www.iabc.com/cw

Keatley, Robert. (2005). Ford Reorganizes to Stay Competitive and Reach New Markets in the World. Wall Street Journal.

Magee, David. (2011). How Alan Mulally Saved Ford. International Business Time. Retrieved from http://www.ibtimes.com/how-alan-mulally-saved-ford-294423

One Ford. Mission and Value. (2014). Ford. Retrieved from http://corporate.ford.com/our-company/our-company-news-detail/one-ford

Roura, Philipe Schoene. (2013). Ford Executive Chairman Showcases Future of Automobiles. Caribbean Business Newspaper.

Soat, Molly. (2012). 10 Minutes with Scott Monty. Marketing News. Knowledge Base.