Sample Essay: Business Analysis of Company Ferrari Using Baldrige Award Criteria

Students need some decent knowledge and writing skills to write a business analysis of high quality. This writing assignment may become a challenge for many. Here’s a sample business analysis paper to help your efforts.

Contents:

A) Introduction: purpose of the business analysis and methodology;

B) Research based on Baldrige Award Criteria;

1) Leadership: organizational and social;

2) Strategic planning: strategy development and deployment;

3) Customers and market focus: customer relationships and satisfaction;

4) Measurement, analysis and knowledge management;

5) Human resource Focus: employee learning and motivation;

6) Process management: value creation processes;

7) Business results: customers and product focus results, financial and market results

Introduction:

ferrari wheelBusiness Analysis is aimed to present full and objective research of the efficiency of the European company “Ferrari”. In order to avoid wrong conclusions and estimations this Analysis is based on seven Baldrige Award Criteria. They cover main and important for our research fields of company’s policy. Each of them is examined in the form of analytical report with statistics. Giving detailed information on leadership, strategic planning, customers and market focus, measurement, analysis and knowledge management, human resource focus, progress management and business results, which are known as seven Baldrige Award Criteria, we estimate the policy of the company “Ferrari”.

Leadership: organizational and social

Company “Ferrari” maintains the image of leading company in the field of car industry. Being the first is the rule of development of the company and one of its values. Such policy on being the first is based on organizational and social leadership.

Ferrari formed well-organised structure of the company each branch of which is motivated Ferrari to become a leader. “Since Luca di Montezemolo became President of Ferrari and Maserati, one of the priorities has been to create an environment where people can work as a team with maximum motivation,” [1]commented Ferrari and Maserati Director of Personnel, Franco Garello. Ferrari construstors and its pilots has won four titles of the lasr years and three champion titles accordingly.   Leadership is also welcomed among Ferrari owners. In 1993 company started the Ferrari Challenge Pirelli Trophy in order to encourage Prancing Horse owners compete with peers and enthusiasts in one-make series for semi-professional and “gentlemen” drivers. The Ferrari Challenge Pirelli Trophy is divided into three international championships – the Italian Ferrari Challenge, the European Ferrari Challenge and the USA Ferrari Challenge, with a total of around 120 drivers taking part. The  International Final, which held competition among  drivers from all three series, concludes every season. [2]

Since 1997 the Historic Challenge Ferrari has started races for the rarest Ferrari cars with a competition past. In  1999 Maseratis, which is the trade of Ferrari-Maserati Group, also takes part in the races. Thus, three categories of cars single seaters, drum brakes and disc has been fighting  for leadership amoung the rarest cars. [3]

The Prancing Horse emblem is well-known for its image of strong, innovative, developing, safe and honoured trade mark among its customers. Employment in the company is based on the critera of being talented, motivated, enthusiastic and challenging. Thus, leadership of the employee encourages leadership of the whole company. Thus, according to a survey carried out by Price Waterhouse Coopers, the Financial Times and respected British  economics of more than 1000 top managers in twenty countries across the globe Maranello, presented Ferrari as the most respected Summing up, leadership is integral part of the development of the company Ferrari. It is being maintained on social and ordanizational levels through encouragement to be the best both techniqually designed  and sold.[4]

Strategic planning: strategy development and deployment

Development of the company “Ferrari” begins from 1947 when Enzo Ferrari left the Maranello factory and started his own business. First stages in company’s work pointed out the need to start new output of road cars based on competition versions of cars released earlier. [5] Although company progresses with working out new products Ferrari’s development is aimed in two directions, such as: technique innovation decisions on moderising cars and promotion of the trade mark Ferrari.

Technical specifications are taken as the garantee of Ferrari’s cars.  First Ferrari 125 S was  “very innovative in terms of technology and design, combining sporting performance and great elegance”. [6]  As the answer to the customers needs “who wanted a car which was not just capable of delivering exuberant performance, but one which had the comfort of a grand tourer, capable of completeing long journeys in comfort” [7]Ferrari launched 250 GT Lusso. This successful model of berlinetta, which is a car used both on the road and for racing, was more spartan, lighter and quick. Every new car from the first 125 S to the last lanched 550 Barchetta Pininfarina is the result of company’s constructors’ research, aimed to “improve driveability and power” and safety and comfort. [8]

Statistics demonstretes development of Ferrari’s Formula 1 cars. “In the past six years, Ferrari won four Constructors’ world titles (1999, 2000, 2001 and 2002) while two slipped away in the last race”. [9] Michael Schumacher being the  pilot of the company won three World Drivers’ titles.  Many Ferraries racing cars are being named after successful racing like 250 Tour de France and 250 California. “Development testing is as vital to Ferrari’s Formula 1 successes as it is to the unparalleled high-performance characteristics of its production cars”. [10] So company is testing all F1 and Grand Tour cars on Florano since 1971 and on Mugello test tracks since 1988 . Efficient racing results, especially of Formula 1, confirm correctness of the chosen policy on innovational and technical modification. [11]

Development of the company is connected with the services  Ferrari produces. In February 1990, the Galleria Ferrari was opened in modern functional building. History of creation, racing cars, innovative technologies, trophies, modern photographs and modern road cars represented in the Galleria attract nearly 180,000 visitors to come to each year. As the result, this increases profit of Maranello’s hotels and restaurants. In the store visitors are offered to buy books, brochures, Ferrari accessories. [12]

Company opened Ferrari specialized shops in Austria, Belgium, Croatia, Cyprus, Czech , Denmark, Finland, France, Great Britain, Greece, Italy, Luxemburg, Netherlands, Norway. Portugal, Slovenia, Spain, Sweden, Switzerland, Egypt, South Africa, Bahrain, China, Japan, Kuwait, Lebanon, Macao, Malaysia, Oman, Saudi Arabia, Singapore, Taiwan, Thailand, Turkey, United Arab Emirates, Canada, Mexico, United States of America, Argentina, Brazil, Venezuela, Australia, New Caledonia and New Zealand.  [13]

Customers and market focus: customer relationships and satisfaction

Sport, berlinetta and racing Ferrari’s cars with well-known name and quality define the price of its cars that defines its customers.  Therefore, a car that costs  $140,615 and more, which is paid for modern technical specifications and safety, is available for well-off people with stable income. Owners of the car love speed, power of the engine, risk and emotions. At the same time, they prefer Ferrari for its comfort and safety. There are mostly men among them as women prefer avoid risk on the road. [14]

Ferrari sells cars at the automobile stores or in the Internet all over the world. In the Europe, Africa, Asia, America and Oceania there are Ferrari specialized shops. In the countries where there is no representation of the company, customers are proposed to buy a car online through Internet.[15] Selected and licensed to use Ferrari’s trade mark companies producing video games, peripherals for video games, toys, model kits, replica helmets, luxury watches, philately, perfumes, bicycles, crystal products and accessories are included in the sphere of Ferrari’s activity. [16]

Ferrari encourages being the owner of its cars. Once you buy it, you become a member of Owner Club organizing club meetings and events all over the world.  The oldest and the most active are official Clubs Owners’ Club of England, the Ferrari Club France, the Ferrari Club of America and the Ferrari Club Italia. [17] Company has been running its Pilot Ferrari driving courses reserved for owners of its GT cars since 1993. [18] After Basic Courses at Mugello in Tuscany Ferrari owners are proposed to start Advanced Course at the Florano track in Maranello. Throughout the two-day course clients learn sporting techniques and try F1 transmission-equipped 360 Modenas and manual 550 Maranellos at the tracks. They are provided accommodation in a prestigious hotel in the area. At the end, they earn a “Pilota Ferrari” certificate. [19]

Summing up, Ferrari created strong relationship between its customers both potential and present. Owners of Ferrari cars are able to have opportunities in order to improve their technical and driving skills. Therefore, potentional owners are welcomed to buy car through Internet or local  shops.

Measurement, analysis and knowledge management

Measurement of the company is directed into opening new offices and hiring new talented workers. Company also encourages growth of Ferrari Clubs of fans of the team Ferrari. There are 400 officially recognized clubs in Italy and abroad which number is being increased. Thus, groups of fans interested in setting up their own Club should send a request in writing to the Ferrari Club Office giving definite documents. [20]

Workers are free to present their ideas and propositions on modernization and innovation. Racing, technical or engine branch of the company’s management is searching the proposition. Approved propositions are launched into innovational process and the work starts. Such enthusiasm is awarded buy promotion, bonus or award. Every good idea directed into company’s development is taken into account and encouraged. For example, Renzo Piano presenting new wind tunnel said: The wealth of knowledge already acquired is fundamental but combined together the area of research can be expanded still further. [21] Usually, wind tunnels are part of a bigger structure, however in this case we wanted to show off its form, as beautiful as the F300. We wanted to site this extraordinary structure, the wind tunnel in a simple environment in keeping with the ideals of Enzo Ferrari.” At the result, the company  can test car models from 65% of full size to full size reducing its expenses. [22]

Human resource Focus: employee learning and motivation

Ferrari’s team is the basis of developing company. “Working in an excellent environment is the best basis for coming up with an excellent product, as well as ensuring enjoyment and motivation in terms of working and obtaining results.” Company develops hiring new enthusiastic employees through Internet or its typical form and learning its team. [23]

Company’s web-sites www.company.ferrari.com,  www.ferreri.com and www.maserati.com, which is a corporate site of Ferrari-Maserati Group, has on-line CV-form to fill in and submit to the company. Alternative way is to appeal to Ferrari’s local office. For example, in order to find a Formula 1 Driver Company holds F1 driving license quiz at the Ferrari World Club. Anyway, plenty of passion, talent and a good dose of good luck is the formula to get a job at Ferrari.

Company does not forget its team colleagues and encourages their innovations. Ex-Ferrari works driver, Andrea De Ademich, runs Pilota Ferrari driving courses. Good enthusiastic workers are promotioned in their career in order to maintain Ferrari’s policy on leadership. [24]

There are over 100 people, all of them highly specialized, contribute decisively to the success of a Formula 1 driver. Only those who are most highly motivated and physically fit can be at their best. Therefore, Ferrari has decided to offer its F1 team the best possible Wellness program, in order to put everyone in the same optimal psychophysical condition as the drivers.[25]

On December 14 2002, the Great place to work institute (Gptw) on behalf of the European Union established Modena has the best conditions to work. A combination of surveys of twenty thousand questionnaires in 800 companies employing more than 50 people and analysis of human resources management policies proved that Ferrari as the part of Ferrari-Maserati Group. [26]

Process management: value creation processes

Since the very beginning, Ferrari maintains the image of its trademark basing on company’s values. Changing of managers and Presidents of the company has not changed it policy on satisfaction of consumers’ needs.  Ferrari’s main values are high quality of the cars, the best results and tribute to the trademark and its protection. [27]

Enzo Ferrari started with launching innovative car 125 S with sporting performance and elegance. The following models where designed basing on technological innovation, reaching high speed, able to complete long journeys, elegant, safe and comfortable, which defined the quality of Ferrari cars.   Ferrari is proud of its cars each detail of which is designed and constructed by the company. Cars are being tested on the specialized tracks in order to launch well-done production car. [28]Company produced berlinette, which enabled customers to use cars on the roads and for racing.

Four Constructors’ world titles of 1999, 2000, 2001 and 2002 won by Ferrari highly value constructors’ decisions in producing cars. Leadership of Ferrari’s pilot Michael Schumacher on Formula 1 in 1994, 1995, 2000, 2001, 2002 and the best results of Ferrari cars on another racings promote its trademark all over the world. [29]

Ferrari protects its trademark well known to its customers from unlicensed use. The company granted selected companies a license to use its Prancing Horse emblem. Thus TSS&P is let to merchandise; Electronic Arts Inc. and Sega Enterprises proposes video games; Revell AG, Tamea kits and Tamiya’s business is model kit; Amalgam, Sports Europe and BBR propose collectors’ models; Cartorama produces stationery; Girard Perregaux sells luxury watches; Satinine’ s business are perfumes, Colnago’s bicycles; crystal products are produced by Glacler Imaging; Tod’s produce accessories and Bradford Exchange’ business are collectibles. All in all 20 companied are officially granted permission to work under Ferrari trademark. Company does not betray red color of its cars, which is traditional value like Prancing Horse emblem. [30]

Summing up, Ferrari’s values were established since the beginning of the output of the cars. High quality of the cars, the best results and tribute to the trademark and its protection are the mail values of the company to satisfy consumer’s need. Spirit of Ferrari is to progress, improve, tackle new challenges, knowing that the best car yet to be built, reflecting the view of Enzo Ferrari.

Business results: customers and product focus results, financial and market results

According to Ferrari Maserati 2002 annual, report the results for ordinary operations in 2002 showed its growth and success towards the previous year. Total sales for the Group amounted to 1.208 million Euros, which is an increase of 14%over 2001. With good Maserati sales figures, analysts estimate Ferrari could be worth between €1.2bn and €1.5bn, allowing Fiat to rise around €500m. By the way, improvement in Ferrari’s business increases chances of Fiat to float Ferrari shares this year. [31]

Maserati’s relaunch, together with successful sporting activities, although re-entry into the US market, after an absence of some ten years, was difficult for the company. The aim of Ferrari Maserati Group is to make this market number one in the future as among 3,300 taken delivery of in 2002, US market compiles 26% of buyers. Maserati plans to sell 1,200 ordered cars by 800 firms in the US this year. At the end of the year 2002 financial position decreased from 172 172 million euros in 2001 to 50.2 million euros, which coursed payment of dividends to shareholders of 120 million Euros, or 10.000 Euros per share. Increase of 13.7% compared to the results of the previous fiscal year to 70.5 million Euros on consolidated operations is the result of growth in the results of the current business. [32]

Material and non-material funds marked for investments, for research and development amounted to 283.4 million Euros for the year, and increase of 25.6% compared to 225.3 million Euros for the previous year. This confirms Company’s strategy on developing its cars. [33]

Ferrari, who last year won its third straight Formula One Constructors’ Championship, said it delivered 6,158 Ferrari and Maserati cars worldwide, up from 6,099 in 2000.

Sales continued to grow in the first two months of 2002, with revenue up 6.9 percent to 159.7 million euros, it said. The automaker said earlier this month that it was considering an initial public stock offering. [34]

Summing up, the Year 2002 is characterized by growth of Ferrari’s sales, income and investments. This increases the value of Ferrari on the world market, which is confirmed by the intention of Fiat Company to float Ferrari shares this year. Popularity rating is based on winning the third Formula One Constructors’ Championship by Ferrari. [35]

Referencing and Bibliography

  1. Ferrari-Maserati Group is the most respected Italian company in the world  04/07/200 http://www.ferrari.com/cgi-bin/fworld.dll/ferrariworld/scripts/magazine/news_details.jsp?oid=1610638270
  2. Consumer Reports http://autos.yahoo.com/consumerreports/
  3. Ferrari-Maserati Group is the most respected Italian company in the world
  4. Official Ferrari Site www.ferrari.com
  5. Official Ferrari Site
  6. Official Ferrari Site
  7. Maserati, the ideal place to work  12/14/02 http://www.ferrari.com/cgi-bin/fworld.dll/ferrariworld/scripts/magazine/news_details.jsp?oid=1610636859
  8. Todt: `The years go by but the motivation always remains the same´02/07/03 http://www.ferrari.com/cgi-bin/fworld.dll/ferrariworld/scripts/magazine/news_details.jsp?oid=1610637254
  9. Official Ferrari Site
  10. The new wind tunnel 01/08/98 http://www.ferrari.com/cgi-bin/fworld.dll/ferrariworld/scripts/magazine/news_details.jsp?oid=11501
  11. Official Ferrari Site
  12. 2002 results of the Ferrari Maserati Group03/19/03 http://www.ferrari.com/cgi-bin/fworld.dll/ferrariworld/scripts/magazine/news_details.jsp?oid=1610637782
  13. 2002 results of the Ferrari Maserati Group03/19/03
  14. 2002 results of the Ferrari Maserati Group03/19/03
  15. Ferrari Maserati 2002 annual report: another year on the road to growth03/19 http://www.ferrari.com/cgi-bin/fworld.dll/ferrariworld/scripts/magazine/news_details.jsp?oid=1610637758
  16. Consumer Reports
  17. The Team http://www.ferrari.com/cgi-bin/fworld.dll/ferrariworld/scripts/racing/ferrari_team.jsp
  18. Ferrari-Maserati Group  http://www.maserati.com/jsp/index.jsp?geographicArea=2
  19. Ferrari-Maserati Group
  20. Ferrari-Maserati Group
  21. Consumer Reports
  22. Ferrari-Maserati Group
  23. Ferrari Owners Club http://www.ferrarimarketletter.com/
  24. Official Ferrari Site
  25. Official Ferrari Site
  26. Consumer Reports
  27. Consumer Guide on Autos http://auto.consumerguide.com/auto/new/
  28. Consumer Guide on Autos
  29. Consumer Guide on Autos
  30. Consumer Guide on Autos
  31. Galleria Ferrari http://www.galleria.ferrari.com/
  32. Consumer Reports
  33. Consumer Reports
  34. Galleria Ferrari
  35. Galleria Ferrari

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