Ford Motor Company Proposal

Proposal To:
Ford Motor Company
P.O. Box 6248
Dearborn, MI 48126

Submitted By:

Patricia Langenau Heather Mueller
plangen1@ithaca.edu hmuelle1@ithaca.edu
845.242.1921 240.506.3733

Scott Vollmin
svollmi1@ithaca.edu
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: Authorizing Official:
_________________________
Amy Becker-George
Ithaca College
__________________________
376 Roy H. Park School of Communications
Patricia Langenau Ithaca, NY 14950
Director of Public Relations abecker@ithaca.edu

___________________________

Heather Mueller
Financial Manager

___________________________

Scott Vollmin
Director of Corporate Advertising

___________________________

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


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:

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


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


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


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.


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.


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.


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


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


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


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.


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.


APPENDIX A


APPENDIX B


APPENDIX C


APPENDIX D


APPENDIX E


APPENDIX F


APPENDIX G


APPENDIX H


APPENDIX I


References

Amend, J. (2008, September). Survey says americans favor foreign car brands

[Electronic version]. Ward's Dealer Business, 11.

Ford Announces New EcoBoost Technology. (2008, January 7). Ford Motor Company Global Auto

Shows. Retrieved February 28, 2009, from Ford Motor Company Web site:

http://autoshows.ford.com/‌196/‌2008/‌01/‌07/‌ford-announces-ecoboost-engine/

Ford Motor Company. (2009). Financial results. In About Ford. Retrieved March 21, 2009,

from http://www.ford.com/about-ford/investor-relations/company-reports/financial

results

Ford Motor Company. (2009). Plan and progress overview. Retrieved March 1, 2009, from

http://www.ford.com/

Halliday, J. (2009, January 27). Ford aims to unify worldwide message. Retrieved March 1,

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academic/delivery

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http://auto.howstuffworks.com/‌ford-sync.htm

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http://www.lincoln.com/‌2009mks/‌?intcmp=B_MKSLaunchPhaseI_lincolnHomeBanner_Lincoln


MKSReachHigher_20080604

Lombardi, C. (2009, January 2). Ford offers Lincoln ‘Park Assist’. In CNET: Planetary Gear. Retrieved

February 29, 2009, from http://news.cnet.com/‌8301-17912_3-10130360-72.html

Marister. (2009, February 27). Ford motor company. Message posted to Customer Relationship

Center electronic mailing list, archived at www.customersaskford.com

Richardson, K. (2006, December 18). Ford's Debt Load Has Shareholders Bailing Out. Wall

Street Journal - Eastern Edition, 248(143), C1-C3. Retrieved March 22, 2009, from

Business Source Premier database.

Walsh, D. (2005, September 5). World's socialist website [One-third of detroit's population lives

below poverty]. Retrieved February 22, 2009, from

http://www.wsws.org/articles/2005/sep2005/detr-s02.shtml

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