ford motor company proposal
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A proposal about the communications, finances, and advertising at Ford Motor Company.TRANSCRIPT
Proposal To: Ford Motor Company
P.O. Box 6248 Dearborn, MI 48126
Submitted By:
Patricia Langenau Heather Mueller [email protected] [email protected] 845.242.1921 240.506.3733
Scott Vollmin [email protected]
201.739.8731
Title: Vision Consulting: A Strategic Communication Plan For Ford Motor Company
Date Submitted: March 23, 2009
Principle Investigators: Patricia Langenau, Heather Mueller, Scott Vollmin
Signed:
Principle Investigators:
__________________________
Patricia Langenau Director of Public Relations
___________________________
Heather Mueller Financial Manager
___________________________
Scott Vollmin Director of Corporate Advertising
___________________________
Patricia Langenau (Student)
Authorizing Official: _________________________ Amy Becker-George Ithaca College 376 Roy H. Park School of Communications Ithaca, NY 14950 [email protected]
Vision Consulting: Ford Motor Company 2
TABLE OF CONTENTS
Executive Summary.........................................................................1 Vision Consulting ............................................................................1 Ford Motor Company’s Current Situation ...................................2 Ford Motor Company’s Organizational Structure ......................6 Ford Motor Company’s Identity ....................................................7 What Ford Motor Company Is Doing Correctly ..........................8 Vision Consulting’s Strategic Plan For Ford Motor Company...10 Vision Consulting Team ..................................................................12 Budget Description...........................................................................14 Conclusion ........................................................................................14
Vision Consulting: Ford Motor Company 3
EXECUTIVE SUMMARY
Ford Motor Company began with Henry Ford in October, 1908 with the introduction of
the Model T (Ford Motor Company, 2009). In 1913, the famous Ford assembly line began mass
producing the popular vehicle. The Model T is still recognized today as having a major impact
on human history because it changed the way people viewed transportation (Ford Motor
Company, 2009). Today, Ford is the second-largest automobile company in the world,
representing a $164 billion multinational business empire (Ford Motor Company, 2009). Known
primarily as an automobile manufacturer, Ford also has Ford Credit, which generates more than
$3 billion in income, as well as owning The Hertz Corporation, the largest automobile rental
company in the world (Ford Motor Company, 2009). The company manufactures vehicles under
the names Ford, Lincoln, Mercury, Jaguar, Volvo, Land Rover, and Aston Martin (Ford Motor
Company, 2009). Although a major component of American history, Ford Motor Company’s
image is experiencing a downfall. The purpose of this proposal is to explain how working
collaboratively with Vision Consulting to successfully adopt and implement our strategic plan,
will result in Ford’s image being saved and rejuvenated.
VISION CONSULTING
Mission:
Vision Consulting is an independent communications consulting company that provides
expert communications consulting services to businesses worldwide. We provide our customers
with leading, innovative, and revolutionary solutions, strategies and guidance to enhance their
performance in marketing and advertising. To accomplish this, we have assembled a team of
professionals to address clients’ issues accurately, responsively, and comprehensively.
Vision Consulting: Ford Motor Company 4
Vision:
To become the most successful and respected communication consulting company worldwide. Values:
Above all, we value our customers. In order to serve them effectively, we uphold to the
following values:
Taking responsibility for one’s own work
Using appropriate business conduct
Treating business partners and other stakeholders with respect
By promoting a pleasant, challenging and open environment and calling upon the capabilities,
creativity, drive and dedication of all involved, we hope to create a rewarding and productive
synergetic eco-system from which all stakeholders can benefit. These values guide our decisions
as we create strategic plans to help our clients reach their goals.
FORD MOTOR COMPANY’S CURRENT SITUATION
Our research has illustrated that members of all of Ford’s constituencies are currently
unhappy with Ford. Consequently, the Ford image has suffered. Image is how a company is
viewed by its constituencies and it can vary between each (Argenti, 2007, p. 66) . These
constituencies include:
• Investors
• Customers
• Employees
• Communities
Vision Consulting: Ford Motor Company 5
There are many causes to Ford’s image problem. One cause is that Americans have
communicated that they prefer foreign cars, in particular, cars made of Asian and German auto
makers (Amend, 2008, p. 1). As stated by journalist James Amend, “Rising gasoline Prices
[have] sparked a market shift away from trucks and SUVs, to smaller, thriftier cars and
cross/utility vehicles” (Amend, 2008, p. 1). Although Ford has tried to communicate a
commitment to the environment, this message is not effective when twelve of its eighteen
vehicles are either trucks or SUVs. Overall, research has found that Americans actually, “want
Detroit’s car companies to suffer for the mistakes they made,” ( Halliday, 2009, p. 2).
Investors are also unhappy with Ford. Shares have fallen more than fifty percent since the
start of 2005 illustrating that investors do not have confidence in the company (Richardson,
2006). The company has been experiencing financial losses since 1999. In 2006 the company
was worth half of what it was in 2001: $14 billion (Kiley & Welch, 2006, p. 1). Like employees,
investors are not impressed with Ford’s constant management turnaround and are frustrated with
its monstrous debt.
Lastly, communities and employees are frustrated with Ford. As stated by one employee
in 2006, “We’re four years unto fixing it already, and it be three more years til we see daylight.
Who ever heard of a seven-year turnaround plan?” (Kiley & Welch, 2006, p. 2). Employees feel
that Ford continuously presents plans to fix its situation but never follows through. While these
plans are in action, and things are supposed to be getting better, employees are being laid-off. As
stated by Kiley and Welch, “What outsiders can’t detect is the depth of employee despair, much
of which stems from internal problems such as managerial churn and constant strategy changes.”
(Kiley & Welch, 2006, p. 2). Having four different heads of North American operations in four
years is evidence of this statement (Kiley & Welch, 2006, p. 2). Not only does the cycle of
Vision Consulting: Ford Motor Company 6
executives convey a message of disvalue to employees, it has also cost the company money and
slowed its turnaround. Employees are expressing extreme distaste for the Ford working
environment. A 20-year employee was quoted stating, “I like the atmosphere here better than I
like work these days,” in reference to a hamburger restaurant where he liked to eat (Kiley &
Welch, 2006, p. 1).
Overall, Ford’s constituencies have determined a negative image for the company and it
is imperative that the image be repaired if the company is to recover from its current situation.
FORD MOTOR COMPANY’S ORGANIZATIONAL STRUCTURE
Ford Motor Company has a formal organizational structure that is centralized since all
the departments are “under one senior officer at headquarters” (Argenti, 2007, p. 44). The
structure of the company directs all communication to the upper management, Chairman William
Ford and President and CEO Alan Mulally. The functions within the company are media
relations, marketing communications, internal communications, investor relations, government
relations and corporate social responsibility (Appendix A). Some key functions are missing from
the structure, or have been combined with other functions. The important functions that do not
have a department are reputation management, corporate advertising and advocacy, and crisis
management. These functions are key to clear and organized communication and Ford should
create new departments for the missing functions. In addition, Ford should form direct
connections between functions to allow for better internal communication.
Ford’s current structure potentially allows for direct and consistent communication, however
this is not the case since the structure is unorganized. Employees lower down on the organization
never speak directly with Mr. Ford or Mr. Mulally, so they feel neglected and angry. There
should be a direct line to William Ford and Alan Mulally to allow for open communication. Ford
Vision Consulting: Ford Motor Company 7
should decentralize its’ structure because it would “assure quality, consistency, and coordination
of messages across the board” as well as improve employee’s image of the company, as well as
other constituencies images of the company (Argenti , 2007, p. 45). Decentralized
communication is better for larger global companies that are involved in many activities because
it allows for flexible communication and constant interaction with senior management to keep
communication clear. Decentralization is also useful in times of economic uncertainty because it
forces the “communications department to handle activities they would generally outsource to a
full-time PR agency” which keeps Ford employees focused on their communication functions
(Argenti, 2007, p. 45). If Ford changed the organizational structure of the company to a more
decentralized structure, it would help to improve all internal and external communication.
Overall, Ford is trying to communicate to each constituency through specific departments
but these departments are not united under a corporate communication leader who has access to
the CEO (Appendix B). Furthermore, some vital functions are missing resulting in some
constituencies receiving little or no communication. In order for its constituencies to be reached
effectively, structural change must occur and key functions must be added.
FORD MOTOR COMAPANY’S IDENTITY
Ford does not see itself as its constituencies see it. Ford Motor Company’s mission
statement states that Ford is, “a global family with a proud heritage, passionately committed to
providing personal mobility for people around the world, [and] anticipates consumer needs and
delivers outstanding products and services that improve people's lives” (Marister, 2009).
The company has additional values that are an important part of its strategy and identity. Ford,
“business is driven by [its] consumer focus, creativity, resourcefulness, and entrepreneurial
spirit. [It is] an inspired, diverse team. [Ford] respect(s) and value(s) everyone's contribution.
Vision Consulting: Ford Motor Company 8
The health and safety of [its] people are paramount. [Ford is] a leader in environmental
responsibility….. [Ford] makes a positive contribution to society,” (Marister, 2009).
After comparing Ford’s image and identity, the following central communicative
problems were discovered:
Ford is not communicating effectively with its constituencies
Ford’s image is not congruent with its identity
Ford has not adapted to the changing environment
WHAT FORD MOTOR COMPANY IS DOING CORRECTLY
Although Ford faces numerous communication challenges and has made poor
communication decisions in the past, it is important to acknowledge what the company is doing
correctly. The company has been successful in allocating the appropriate funds for research and
development. This has allowed Ford to be one of the leaders in developing new technologies.
In regards to technology Ford led the charge on automobile connectivity and voice
communication with the introduction of its SYNC© technology. SYNC© provides the user with
hands-on connectivity and voice activated control (How Ford Sync Works, 2007).
HowStuffWorks writer Ed Piotrowski explains, “Ford partnered with Microsoft to create Sync as
a way for vehicle owners to stay connected with their cell phones and digital music players.
Instead of needing separate connections for these devices, Sync works as an all-in-one solution
that can be updated as new phones and players are released. Ford Sync looks to provide a
simpler, one-stop-shop for connection and use of cell phones and MP3 players,” (How Ford Sync
Works, 2007). Coupled with the connectivity of these devices is the voice-activation feature,
which allows the user to “speak” with the vehicle through voice commands and Bluetooth
technology.
Vision Consulting: Ford Motor Company 9
Ford also included new ignition technology in the Lincoln MKS. Lincoln is a luxury
division of the Ford Motor Company, and therefore has also seen improvements in vehicular
technology. The 2009 Lincoln MKS’s tag line is “Boot Up. Lift Off”. This is a direct reference to
the ignition technology in the vehicle, which allows the user to start the car with the push of a
button (Lincoln MKS, 2009). To enter the car, the user can use the SECURICODE© invisible
touch screen. The numbers on the keypad light up when touched and the car can be opened with
the correct key code (Lincoln MKS, 2009). The user can then use the push-button startup, never
actually requiring the use of a car key. The company describes the experience by claiming that,
“Starships don’t need keys” and that “Keys are yesterday” (Lincoln MKS, 2009). Clearly, the
company has aimed to market these vehicles as “technologically superior” and have used
technology as a direct selling point.
Ford has also been effective in creating sustainable vehicles and adopting alternative
fuels. Sustainability has been a large focus of the Ford Motor Company. CEO Alan Mullaly’s
keynote speech at the LA Auto Show in November 2007 was a testament to this. Ford has
recently unveiled new “EcoBoost” engine technology, which will be used in half a million Ford
vehicles annually (Ford Announces New Ecoboost Technology, 2008). According to the
company, EcoBoost is a combination of direct injection and turbo-charging, boosting four and
six cylinder engines. With direct injection, fuel is injected into each cylinder of an engine in
small, precise amounts (Ford Announces New Ecoboost Technology, 2008). Compared to
conventional port injection, direct injection produces a cooler, denser charge, delivering higher
fuel economy and performance. This will reportedly increase fuel economy by up to 20 percent
(Ford Announces New Ecoboost Technology, 2008). The EcoBoost technology is an example of
Ford’s interest in sustainability and the environment of its constituencies.
Vision Consulting: Ford Motor Company 10
In order for Ford to recover from its current situation, it is imperative that the company
highlights what it is doing correctly and communicates this to each constituency.
VISION CONSULTING’S STRATEGIC PLAN FOR FORD MOTOR COMPANY
Visions Consulting’s plan for Ford Motor Company encompasses a variety of strategic
communication endeavors aimed at bringing consistency between Ford’s identity and image.
Transparency is vital to communications resulting in positive response. With this in mind, the
plan has three main objectives:
1. Communicate the positive things Ford is doing to all constituencies
2. Create and communicate individualized messages to each constituency
3. Communicate a dedication to financial recovery, its communities, and its employees
We have established a one-year campaign to achieve the objectives above (Appendix C).
The first part of the campaign is a kick-off event titled, “Let Ford Feed You”. This event invites
local community members, Ford owners, and employees to a weekend celebration where food
will be provided for free. One may argue that providing free food will not help Ford’s ever-
growing debt. However, Vision Consulting believes that the messages this event will
communicate will result in greater sales. Thus, curbing the debt with greater profits and
community loyalty.
The event targets employees, community members, and Ford customers because they are
primary constituents. Employees and community members are frustrated due to layoffs and they
feel that Ford is abandoning them during a hard economic time. “Let Ford Feed You” is intended
to communicate a commitment to these constituents. In essence, these constituents make up the
“Ford Family” that Ford speaks to in its mission statement. In hard economic times, Ford needs
to communicate that it does not want its “family members” to suffer. Holding an event such as
Vision Consulting: Ford Motor Company 11
this allows people to celebrate Ford. Not only will the event shine a positive light on the
company, but it will also bring an exclusive, family-like feel to the organization since it is an
invite-only event. Lastly, one-third of Detroit’s 918, 849 citizens live below the poverty line
(Walsh, 2005). This fact allows us to assume that “Let Ford Feed You” would have a high
attendance rate and be appreciated.
This event will be advertised in local newspapers through press releases, and on through
the blogs and the website we plan to establish (Appendixes D & E). Personal invitations will also
be sent out. The event and campaign progress will also be communicated through the employee
newsletter (Appendix F). These channels have been chosen because they are local and personal
in matching the feel of the event. Vision Consulting will work with Ford to ensure that the event
is cost effective, well organized, and fun for attendees. We believe that a casual, barbeque style
event would be the most effective. However, we are willing to discuss ideas, concerns, and
options.
The second stage of our campaign is advertising. The same messages communicated at
the “Let Ford Feed You” event will be communicated in the ad campaign. The ad messages will
target both current and prospective customers and investors. These advertisements will stress a
commitment to affordable and sustainable vehicles, technological advancements and innovation,
and to employees and community. The ads focusing on sustainable vehicles will communicate
quality and care for the environment. It is important that sustainability does not sacrifice the
current identity of Ford vehicles. For example, trucks should still be “Ford Tough” and Lincolns
should still be luxurious (Appendix G).
The other message we want to focus on is Ford’s commitment to, and innovations in the
field of technology. One reason customers have expressed a greater interest in foreign cars, such
Vision Consulting: Ford Motor Company 12
as Toyota, is that they feel foreign vehicles are more reliable and innovative. Ford needs to
communicate the technologies that it has not only embraced but that it has created (See
Appendix H). Although indirectly, both of these ads will communicate to investors that there is
investment-value in Ford.
Lastly, we have created a website to support this campaign (Appendix I). The purpose of
the website is to reinforce the transparent nature of Fords communications during its recovery.
Essentially, the website would be added to Ford’s current website, as an augmentation to the
current structure and content. In order to communicate effectively to each constituency, each
constituency needs its own Blog. These Blogs will be updated bi-weekly by the CEO with
updates, facts, and honesty. The website will also help advertise the “Let Ford Feed You” event
as well as its new advertisements and its low-cost sustainable vehicles. A timeline and/or list of
goals and objectives may also be present for viewers. This would allow constituents to see how
and when goals are being met. As a result, they may feel content when a goal is accomplished
and a positive feeling will be associated with the company.
VISION CONSULTING TEAM
Vision Consulting is comprised of well-trained, experienced, creative, and motivated
individuals that want to help companies see financial advances as a result of strategic
communication. A special team has been established for Ford Motor Company based on what the
company needs.
Patricia Langenau: Public Relations Director
With Bachelor’s Degree in Communication Management, and Design from the Roy H. Park School of Communications at Ithaca College, Trish has studied and honed her communication skills. She is a strategist who works tirelessly to help her clients reach her goals. While working for State Farm Insurance Trish created a training guide to help other employees master computer programs. This experience illustrates her ability to understand an
Vision Consulting: Ford Motor Company 13
audience and communicate to them effectively. In her spare time Trish enjoys boating, listening to music, and running.
Heather Muller: Financial Manager/Public Relations Co-Director
Heather handles the budgets for the clients of Vision Consulting. She evaluates the clients’ funds and decides how to divide the budget, as well as handling Vision Consulting financial concerns. She helps to manage the flow of information between the clients company and the public as well.
Heather obtained her bachelors degree in Communication, Management and Design with a concentration in Strategic Communication from Ithaca College. She was the treasurer for
a student run organization called Created Equal, which focuses on social justice and equality. She was responsible for managing budgets, requesting funds, and organizing receipts. This position strengthened her time efficiency skills, and the ability to pay attention to details while handling funds. She has strong skills in communication, organization, and leadership because she worked collaboratively with many clubs to integrate Created Equal into the Ithaca Campus. This allows her to work independently a well as with a team, and to efficiently interact with clients. She was previously employed at McGinn IP Law firm as a secretary/paralegal. She was responsible for writing several documents in the process of each patents, trademarks and copyrights. This taught her to be conscious of the fast-paced environment of the corporate world, and improved her writing skills. Scott Vollin: Director of Corporate Advertising
Scott Vollmin is responsible for creating various advertisements for Vision's clients. He earned a bachelor's degree in Communications from Ithaca College and went on to graduate school at New York University, where he earned a master's degree in communications. Scott has been working with Vision for five years and has quickly ascended to an executive position, working closely with the Corporate Advertising team and its various clienteles.
Vision Consulting: Ford Motor Company 14
BUDGET DESCRIPTION
The budget for Ford Motor Company is divided into two major operating areas: Labor
($157,570) and Advertising ($814,759); resulting in a total fee of $972,259. $814,759 was spent
on advertising on print ads in magazines and newspapers, television commercials, and Internet
banners. The mediums for the advertisements for Ford Motor Company were chosen based on
Mediamark Research & Intelligence Plus, a database of consumer demographics and
psychographics for products and brands, as well as what we choose as new mediums to expand
to. The results of the advertising will bring in greater profits for Ford Motor Company,
concluding in greater success.
$157,500 will be charged for labor costs because Vision Consulting employees are
professional communication consultants who helped to improve Ford Motor Company. The total
hours of labor was 300 hours. This fee includes all overhead charges of accounting fees,
depreciation, insurance, interest, legal fees, rent, repairs, supplies, taxes, telephone bills, travel
and utilities costs.
CONCLUSION
Vision Consulting believes that with its strategic plan and Ford Motor
Company’s commitment, Ford will recover from its current situation. Strategic communication is
vital to success and results in congruency between image and identity.
Vision Consulting: Ford Motor Company 26
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Vision Consulting: Ford Motor Company 27
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