case study about ford company

Topics: Ford Motor Company, Automotive industry, Automobile Pages: 5 (1219 words) Published: February 10, 2014
Ford Motor Company

Ford Motor Company is one of the first American automotive companies that even today successfully manufactures and sells automobiles, trucks, buses and automotive parts. Ford is the second largest US automaker and the fifth largest vehicle seller in Europe and the world. Their headquarters are based in Dearborn Michigan. The company was founded in 1903 by Henry Ford. Ford owns a series of motor vehicle brands which includes Ford, Lincoln, Volvo and Mazda. Ford motor company has subsidiary companies in U.K, Japan and Sweden.

Swot Analysis
Strengths

1. One of the early market entrants and oldest car manufacturer 2. Offers a wide range of cars to different set of customers 3. Provides exclusive product features taking into consideration the targeted segments 4. Invested efforts to go green in order to help the environment 5. Has over 160,000 employees globally

6. Present across continents and has excellent visibility & marketing

Weaknesses

1.Adversely affected by the global recession & Euro crisis
2.Hasnt completely tapped emerging economies as compared to some other automobile giants

Opportunities

1. Expanding automobile sector
2. Improving business scenario due to expansion of consumer base 3.Capitalizing on the models exclusively designed for different markets e.g. ford Ikon for India

Threats

1.Competition from major international players
2. Increasing usage of public transport and increased fuel costs 3. Production problems in local plants due to labor and similar issues

Macro and micro analysis

Macro analysis :

The macro environment includes all the external factors affecting the organization.

1- Political factors effecting ford motor
company .
2- Economic environment .
3- Social environment .
4- Technological environment.
5- Legal factor .
6- Environmental factor .

1- 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. Looking at the current state of the political climate in the world, through globalization many government are forming alliances. This international corporation is a good surety to the company that the world political environment is favorable for its business. This shows that there is increased freedom for the company to penetrate in any growing markets in the globe which is a good opportunity. The political environment of the major Ford Motor Company markets which includes Japan, Australia, America, and U.K are conducive for business operation. These governments are moving toward free economy states hence providing multinationals with good business environment.

2- Economic environment :
The global financial crunch has affected the automobile industry negatively forcing some of the major automobile makers in the world to bankruptcy. The Ford Motor Company has not been spared either. The current economic environment for Ford Motor Company is hard but it is recovering with time. The company needs to adjust to the current economic conditions so as to survive and plan for come back during the boom period. This shows that although the current economic environment is not conducive the company can come up with the strategies that will protect it from bankruptcy.

3- Social environment:

The factor which is important for the Ford Motor Company on the social environment is the changes in the social classes in the world market. The emerging markets in the developing economies are providing growing demand for automobiles. This is a great opportunity for the motor company to expand market in these countries.

4- Technological environment :

There is the technological trend in the motor vehicle industry in the world to produce safer vehicles and which are economical in fuel usage. Consumers have become sensitive on the fuel consumption of...
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