The Ford Motor Company Essay

Ford Motors Company

Ford Motors Company started manufacturing process with a mass motor vehicle production in the twentieth century. At the moment, the firm is one of the world’s largest automakers. The corporation has a number of well-known brands that can be found in practically every part of the world (“Ford, General Motors,” 2014.)

Environmental Policy Changes under President Trump’s Administration

Environmental policy in the United States are expected to change under President Trump’s administration. The present Federation has vowed to review various rules, including those aimed at lowering the amount of carbon dioxide released by these power facilities. The environmental policy changes are likely to have an impact on Ford production. The uncertainties with these laws put Ford in a challenging situation. Some of the questions that have been raised is whether they should wait until the new policies are in place before they act, or do they make an assumption that the policies will be relaxed and move toward the lower Mpg vehicles, or assume that the hold standards will be retained and therefore invest in the production of high mpg vehicles.

Environment as Source of Resource Perspectives

Ford Motors Company hires the best possible people its production plants in the world. These employees are required to carry out their activities in line with the company’s objectives which is to achieve global consistency. In this company controlling involves correction and measurement of employee performance and other resources to achieve the desired outcome. When it comes to a decision making the management makes sure it assesses the future outcome before investing in any particular business. The company has already spent over one billion to develop some of the fuel efficient cars such as F-150 truck which will be in line with the anticipated regulations. The newly produced cars are built to meet the current fuel economy standards.

Breakdown

The investment in the new model of cars that are fuel efficient remains to be uncertain for a long time until the policies are fully implemented. It takes a long time for any motor company such as Ford Motors to develop a new model so institutions must remain prepared. The breakthrough in the above perspective can be achieved by efficiently structuring the planning process. The planning process involves the basic managerial functions that any firm must address (Nevins and Hill, 2008). With an understanding of the environmental context in which the companies operate the management comes up with certain specific goals that have to be achieved.

External and Environmental Analysis

Most Valuable Competitive Forces

The most valuable competitive forces include the threat of substitute of products and the completive rivalry. This company operates in an industry that contains so many firms that offer products that have closer substitutes, for instance, Toyota Motors Company. Because of stiff competition, no single firm can control prices, if the company increases its prices consumers will shift to purchase commodities from other businesses.

The General Environment

Ford Motor company’s strategies indicate all the challenges it faces have been identified in the PESTEL. The PESTEL analysis presents the most significant environmental factors based on macro- environment and external factors. First, Ford is affected by the political factors, for instance, the increasing government effort to increase technology innovations has pushed increased the company’s production capacity. The second factor is the economic factor; Ford regularly keeps an eye on the changing technology for instance strengthening of the dollar and the growth rate in the United States economy (Patrina, 2014). Third are the social factors, this company’s production is greatly influenced by macro-environment, for instance, the increasing gap between rich and poor and growing demand for hybrid cars. Ford is also affected by technical factors, for example, the rising cost of the mobile computing provides Ford with an opportunity of growth through mobile marketing. Lastly, their company is also affected by environmental factors. Some of the most ecological factors include the declining amount of oil, low carbon dioxide, and climate change. The company is mainly affected by the economic and environmental factors. Most of the policies that have implemented aim at environmental regulations, other factors such as economic cycles also have a significant impact on the company’s production capacity.

Advantages and Disadvantages of Performing Environmental Analysis

The environmental analysis offers an easy and straightforward framework that facilitates a smooth analysis; it also provides a greater avenue that gives the organization a chance to exploit new opportunities implying the entering into new markets can be smooth both global and national level. On the downside, the information that is used in the decision-making process is oversimplified. The decision that is made based on environmental analysis is subjective since so many assumptions are made. The most beneficial factor that I found during this analysis was learning about markets and factor that determine a company’s success. While some of the detrimental factors include lack of substantial information that could facilitate decision making.

Conclusion

Ford Motors Company has managed to expand the level of production despite the stiff competition that exists in that exist in this industry. There is, however, room for improvement in most parts of the market around the world such as Asia and Africa remain unexploited.

References

Ford, General Motors. (2014). Auto Tech Review, 3(5), 4-4. http://dx.doi.org/10.1365/s40112-014-0605-y

Nevins, A. and Hill, F. (2008). Ford. New York: Scribner.

Patrina, E. (2014). Managing the organizational development through global expansion: case study of Ford Motor Company. NEW UNIVERSITY: ECONOMICS & LAW, (5-6), pp.52-56.