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Ford case study

The paper will provide a brief a discussion of the Ford Motor company, specifically focus on relevant information, SWOT and pestle. Ford, is an American international automaker   which develop various motors for the cars and other vehicles. The company gain its revenue from various corner of the country such as United States, Asia, united Kingdome and china. The main headquarters of the company is situated in Dearborn, Michigan which a suburb of Detroit. The company was developed first by Henry Ford on June 16, 1903. The company trades automobiles as well as commercial vehicles under the Ford brand, while it sells greatest luxury cars under the Lincoln brand.

Considering the manufacturing business of the company,   Ford also owns Brazilian SUV manufacturer Troller, accounting for  8% of  stake in Aston Martin of the United Kingdom while accounting for  32% stake in Jiangling Motors.  The company is well known for its excellent marketing and products and often listed on the New York Stock Exchange. The company is controlled by the Ford family. However, they have political power and influence on the revenue because   minority ownership and majority of the voting power are major driver of the company.  The United States highlights indicated that the company the second-largest U.S.-based automaker after General Motors and it is the fifth-largest in the world where other companies are placed before it in the rank such as Toyota, Volkswagen, Hyundai-Kia and General Motors. Ford was the fifth largest automaker in Europe.

 Large -scale manufacturing of cars as well as large-scale management are the specialty of the company with industrial workforce. These methods were known around the world as Fordism and gained patent for such methods. Ford's previous UK subsidiaries Jaguar as well as Land Rover and they are   acquired in 1989 as well as 2000 respectively. They are sold to the Indian automaker Tata Motors in March 2008. Ford possessed the Swedish automaker Volvo from 1999 to 2010.  Similarly, Ford out-of-date the Mercury brand and it has advertised entry-level luxury cars in the United States, Canada, Mexico, and the Middle East since 1938.

SWOT Analysis of the Ford:

Strength:

  • Global recognition is one of the major strengths of Ford. Ford is a well-known brand in the automobile industry and it is also recognized in the global markets.  The current statistics and 2018 report, brand value is 12.74 billion, indicating higher value than many companies.
  • Research and Development are second strength of Ford. Ford’s research as well as development is key strengths because the company is dedicated to develop novel products. They are endlessly trying to advance the enactment of their cars. The features that are assessed for better product development are fuel, competence, safety as well as client satisfaction.
  • The company has a wide product as well as services collection which provides them strong influence and less dependence on just one product variety. Their promise to adopting different technologies also offers them an improvement in the competitive market. They are also working on light weighting, cabin technology as well as powertrain to improve their invention quality.
  • Huge Network is another strength of the company. The Company is also diverse in its operations and distribution and it develop cars in standardized procedure.

Weaknesses:

  • Product Recalls is the first weakness of the company.  First Ford faced an enormous damage as well as their brand image agonized due to the creation recalls back in May 2016. They recalled approximately 830,000 Ford along with Lincoln automobiles to substitute faulty side door latches. It also recollected vehicles in May 2015 because of the safety failures of airbags.
  • Weak Foothold note is the second weakness of the company. As Ford’s processes are expanded in many topographical areas, they absence focus in presentation as well as productivity in automobile. They do not have a stranglehold in developing markets in various third world country such as India.
  • Poor Reputation is the third weakness of the company.  The company has a poor reputation related to its European as well as Japanese rivals. Lincoln is considered a mediocre brand as likened to English as well as German luxury car brands.
  • Dependence on U.S Markets the fourth weakness of the company. Ford is extremely reliant on the U.S as well as European market based greatest luxury cars under the Lincoln brand. It restrictions its profits as well as revenues. Experts predict that the mainstream of future greatest luxury cars will come from emerging markets such as China and India.

Opportunity:

  • Eco- Friendly Vehicles is first opportunity. They can build vehicles that run on different forms of energy and hence, designing eco-friendly vehicles such as C-Max and Fusion Hybrid car model can be opportunity.
  • Increase Customer Base is first opportunity second opportunity. They have an outstanding chance to capture small republics in the world as well as grow their customer base.

  Threat:

  • High Competition is major threat due to cut-throat competition Toyota, Tesla, and Tata. Ford which make it difficult to develop number one position.
  • Increased Prices of Raw Materials is the second weakness because of rising raw material prices of steel.
  • Regulations as well as compliance is the third weakness of the company. The compliance and regulatory threats for automobile brands which often increases the environmental.

Pestle Analysis of the Ford:

Political influence:

 The statistics of the company must consider the political influence as external factors.

  • Governmental backing up for scientific innovation is an opportunity.
  • Cumulative worldwide employment arrangements is an opportunity.
  • Increasing administrative effort for infrastructure in developing countries is an opportunity.

 Economic influence:

Ford must always track the altering economic conditions in the country and United States is the biggest driver of the revenue for the company.

  1. Development and expansion of U.S. economy is an opportunity
  2. High evolution rate of emerging  automobile markets is an opportunity
  3. Consolidation U.S. dollar is a threat.

Sociocultural influence:

Macro-environment is subject to the influence of social conditions and hence, it influences the   aftersales services for attracting more consumers.  The following parts will provide more details of the factors:

  • Increasing request for hybrid as well as electric automobiles is an opportunity
  • Reasonable attitude about client service is an opportunity
  • Increasing gap in terms of wealth is is an opportunity as well as threat.

Technological Factors:

Use of mobile computing is a significant outside factor that generates opportunities for Ford Motor Company to produce through mobile service support as well as mobile marketing. Also, the firm can recover its presentation through enhanced online completion services. 

  • Increasing use of mobile  engineering is an opportunity
  •  Increasing use of online fulfillment services  is an opportunity
  • Limited system of additional fuel positions is an  threat

Environmental Factors:

Climate change is an outside influence that generates chances for Ford to produce products that assistance in environmental conservation

  • Climate change is an opportunity
  • Low-carbon trend is an opportunity
  • Declining oil reserves is an opportunity

Legal Factors:

Ford can recover its occupational sustainability in order to discourse the effect of environmental protection as well as regulation. 

  • Environmental protection regulation is an opportunity
  • Increasing safety regulations is an opportunity
  • Increasing intelligent property laws worldwide is an opportunity

Ford can improve creation project to take the chance based on protection regulations and development.

 

References:

Morritt, B.T., 2021. Systems of Male Privilege: The Industrial Relations Policies of the Ford Motor Company in the 1940s. Enterprise & Society, pp.1-28.

Day, B., 2021. Ford Motor Company v. Montana Eighth Judicial District Court: Redefining the Nexus Requirement for Specific Jurisdiction. Duke J. Const. L. & Pub. Pol'y Sidebar16, p.1.

Carmo, M.J.D., Sacomano Neto, M. and Donadone, J.C., 2018. Analysis of financialization in the automotive sector: the case of Ford Motor Company. Nova Economia28(2), pp.549-577.

Vargas, M.J., 2020. Dodge v. Ford Motor Co. at 100: The Enduring Legacy of Corporate Law's Most Controversial Case. Business Lawyer75(3).

Sebata, F., 2020. Ford Ranger wins coveted International Pick-Up Award. The Dairy Mail27(1), pp.94-97.

Micinski, N.R., 2017. The changing role of the Ford Foundation in international development, 1951-2001. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, pp.1301-1325.

Mohtar, R.H., Shafiezadeh, H., Blake, J. and Daher, B., 2019. Economic, social, and environmental evaluation of energy development in the Eagle Ford shale play. Science of the Total Environment646, pp.1601-1614.

Lipscombe, K., Grice, C., Tindall-Ford, S. and De-Nobile, J., 2020. Middle leading in Australian schools: professional standards, positions, and professional development. School Leadership & Management40(5), pp.406-424.

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