Macro environmental forces for ford motors

industry analysis of ford motor company

But ford suddenly facing the problem in sales due to the economical problem. More consumer choices Ford is one of the automobile company which is providing the consumer more variety of cars and commercial vehicles.

Ford invests more money on maintaining a good working environment.

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From the past records we can identify that America is dominating in automobile Industry. Currently Ford Motor Company is ranked the fourth largest automobile maker in the world.

Recommendations for ford motor company

However, now it is investing in a new driverless car unit Argo which is fully funded and majority owned by Ford. Political factors effecting ford motor company Ford motor company is a multinational company, which has its operations in many countries so the political environment in these countries is very important to the companys operations. Thus, Ford must implement strategies to globally expand based on these opportunities. The better the purchasing ability of the customers, the more profitable is the environment for these companies. Bureaucracy and interference in Auto Manufacturers - Major industry by government. Both China and India which are the trading economies of the region have kept performing well. Altogether the mentioned economical factors will determines the growth of the potential markets, margin cost of the operations, return rate on the investment, and strategy to provide the price of the vehicle. Threats to fordPrice Rise in raw material prices Raw material prices like hard steel and rolling steel cost will influence the margin price of the car.

Ford also has the opportunity to improve its services, especially aftersales services to attract more customers. If this improvement is drastic, then other firms in the industry suffer more heavily.

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This can be achieved by reducing the number of workers in the company operation and utilizing the remaining employees effectively. Economic Factors: Economic factors have a major role in deciding how markets behave and how profitable the environment is for brands.

The other strong competitor of the Ford Motor Company includes the Toyota motor company and the General motors. In the recent years, the focus has shifted towards deeper engagement of the customers and improved customer service.

Internal environment of ford

The competitors have come up with very appealing brands in market that are threatening the competitive position of the Ford brands, for example, Toyota brands are becoming more popular and are threatening to take over market. This is driven by fuel prices and environmental sensitivity of buyers. The following are the economic external factors significant to Ford: Growth of U. That is the reason ford fiesta is a most successful car in these two markets. In developing nations there is an expected boom in the middle class from countries in China, India, South America, and Southeast Asia. Huge unfunded pensions and other obligations - Ford is one of the automobile company which takes more responsibilities in the health and safety of the employee. Economic growth in these areas has resulted in an influx of foreign brands that are partnering local brands to hack into the Asian markets. These companies have strong brands in market that gives the Ford brands stiff competition. Implementing the proper regulations may be expensive, but Ford Motor Company has to engage in it, not only due to the law but also out of Ford Motor Company's personal feeling of ethical and social responsibility to other human beings. The recession has passed and the situation has improved a lot since then. As a part of Hybrid Strategy ford motor company is providing the customers with low prizes when compared to the others. Both China and India which are the trading economies of the region have kept performing well. Ford is performing good even in recession time because the ford motor vehicles are not too costly when compared with competitors.

The risk of military invasion by hostile countries may cause divestment from ventures.

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External Analysis for Ford Motors