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business Changes over 5 years. Presented By Chandrakanth. Dhanekula.
Table of Contents Industry definition Introduction to Industry Industry at current scenario Litera ture review of PEST PEST analysis of Ford SWOT Analysis of Ford Porter five forc e analysis of Ford Competitors Analysis of Ford Strategy of Ford Performance of Ford Conclusion Recommendations References .
. Economical. In that automobile industry i c hoose the Ford motor company to analyze their Macro and Micro Environment. This paper is focused on PEST Analysis of FORD.Executive Summery In Global markets among different Industries i found Automobile industry because the scope of the automobile industry is high when compared to the other industr ies. SWOT Analysis. strategies. Porter five force anal ysis. and its performance in share market and s ales. Social and Technological Factors wh ich are playing a major role business environment of Ford. In today’s life automobiles became necessary. I focused more on the Political. competitor analysis.
Some cars are designed to run on Electricity. Introduction to FordFord motor company is a global leader in automobile industry . This can be detailed from the fallowing statement. From the pa st records we can identify that America is dominating in automobile Industry. Present scenario of automobile industry – Global rescission influencing most of automobile manufacturing companies to stop their production due to lack of demand in the market. which is founded by Henry Ford. Cu rrently countries like India and Brazil are presenting their growth rate in the global markets of automobile industry. Introduction to Automobile IndustryFirst Automobile is a three wheeler which was invented by Nicolas J. four or more tyres. It employed 201. Ford manufactures Cars &Commercial vehicles. Initially invented automobile is made by steam e ngine and later it was designed by fuels which are currently available in the ma rket.000 people in their busines s. In the automobile industry by 2008 the sales are decli ned by 8% and in 2009 sales are rapidly declined up to 20%.Industry DefinitionAutomobile can be defined as the vehicle which runs on two. Cugnot. t hree. At present few Automobiles are running based on the renewable energies lik e Solar and Bio Fuels. Ford operating its business in f allowing continents North America Europe Asia Pacific Latin America Middle East Africa Caribbean . It is performing its business in 7 continents and 90 plants are speared worldwide. the purpose may be to travel on the roads by people or to carry the loads from one place to another place.
Technical Factors explain about Technological efficiency. Energy use cost and New Innvent ions. Political factors explain about taxation. Social and Technica l factors of an organization. health & welfare. employme nt laws. attitude to work an d living conditions. Economical. internal trade regulations and competitor trade regulations. Source – The Business Environment By Adrian Palmer & Bob Hartley 5th edition . Microsoft. Ford is partnering with companies like. t echnological transfers. life style changes. inflation and influence of exchange rates Social Factors explains about income distribution. PEST AnalysisPest analysis represents Political. Sony. BP. rate of spending in R&D.Ford is partnering with some of the companies to produce better optional vehicle s. Roush. Adventure island & Water country USA. policy towards unemployment . Economical Factors explains about economic growth by industry. labour.
Forced Groups (Labour unions) who plays a major role in the production of a vehicle in a ford manufacturing organization. Adopted from Nieuwenhuis & Wells . That is the major reason ford is operating in the countries like America.Ford pest AnalysisPolitical FactorsExchange rates.The growth potential of ta rget market will determine the purchasing power of the buyer. Foreign ownership regul ations and technological cooperation’s between countries helping the ford in raisi ng the funds and building the advanced models which can cope with the current sc enario.In most of the company’s investors had a premier role to play in the growth and development of t he company. oil prices & free trade flows which influence the consumer to invest on the vehicles. Economical FactorsGrowth potential of target market . The labour unions should work according to the rule s and regulations amended by the business laws. Investor’s climate. India and Brazil where t he growth potential is high when compared to the other markets. Introduction of new business laws Impacts the ford to change its rules a nd regulations which are necessary to producing a quality vehicle.
When the target market GDP growth is high t he consumers will show more interest to have a premium or luxury vehicle. and strategy to provide the price of the vehicle. margin cost of the operations. But the Brittan consumers are h abituated to use the cars or commercial vehicles which are designed by small eng ines. re turn rate on the investment. Social Factors Social factors plays a role in trend in demand based on the various factors like attitudes. Altogether the mentioned economical factors will d etermines the growth of the potential markets. Target Market Size – Again the sales of the ford was influenced by the Market size where it is operating its business. Cost conscious customers may not show interest to buy the car s which provides low mileage.The US for consumers will use the cars or commercial vehicles which have large engines. Oil Price Fluctuations. demographical. .The consumers of ford had changed from one geographical r egion to another geographical region Eg.The oil fluctuations influence the sales of t he ford company. we can state that ford is o perating its business in the potential target markets. beliefs of the consumers in that particular market re gion Some of social factors of Ford are given below Geographical Changes .Based on the above geography of demand for vehicles. If the oil prices are more it will difficult to sell the premiu m and luxury cars. Econom ic Development – Economic development is the major part which will determines the development of a particular economy as a whole and which will influence on indiv idual GDP.
Technological Factors Technological factors of the ford motor company are very advanced when compared with their competitors. Ford is a medium cost car which can be affordable by the mediu m class people. so Fo rd operations are very efficient so it is able to providing quality vehicles at right time. Travel Habits – The ford company is designing the cars based on the travel habits of the consumers. .Adopted from Windecker Consumer Attitude – Consumer attitude plays a role in selecting car model and desi gn. But if the consumers are cost and safety concerned them proba bly will choose a normal car which will provide mileage and better safety. because the consumers of car are more concerned about the ordering and when th e company is going to deliver the car. The Ford Company is having strong supply chain collaboration which is in more than thirty countries. Operations Capabilit y – Ford Operation are more capable to provide the better service to consumers. It is providing the facilities based on the travel habits of the whole family. The technological factors of the automobile company will influence on most of the things like sales percentage of the cars. Fo rd motor company is operating its manufacturing in more than 30 countries. If the consumers are favour about sport they will select the sports model ca r for their usage. Supply chain collaboration – It is the Initial and too crucial factor in the ford motor company . consumer sat isfaction which leads to the automatic growth in the sales figure.
The ford company cars manufa cturing will be influenced based on the consumer customization needs.Ford Company is maintaining the relations with high profiled companies like Suzuki and Isuzu Motors Company to develop qualitat ive vehicles and in the part to technological aspect for motor company is mainta ining relation with Toyota and Honda motor services.Ford brand is well-known in automobile industry. colour.Ford is the rich in its op erations and distribution because it is operating its business more than 30 coun tries and it enhances its manufacturing process more than ninety plants. The Customer will get the delivery after min 1 month and max 2 mo nths. In online the consumer is allowed to customize the engine. Online Mar keting capability . Product Development – Ford Motor Company is providing the consumer to customize th e car and its needs.co.Ford is one of the well-known automobile company which is pr oviding the online consumer selection of cars through its website. Vans. Ford is manufacturing fallowing kind of vehicles. Relatio ns with high profile companies . One more advanced technological thing is consumer can customize the materials what he requires inside as well as outsi de of the car. If the ford is having the booked car in the assess they will deliver withi n one or two weeks.ford. Cars Commercial Vehicles (Jeeps. interiors and exteriors. More consumer choices – Ford is one of the automobile company which is providing t he consumer more variety of cars and commercial vehicles. Its brand image is well know in the global markets due to huge marketing & advertising. So ford had gained a chance to innovate a new car based on the most of the customer’s selection and preferences. .uk . & Trucks) Hea vy Vehicles. Operations and distribution efficiency . Swot Analysis of Ford Motor Company Strengths of Ford – Brand Image.Technological Improvements in distribution – Ford motor company is one of the auto mobile companies which is providing the car view and specification in online thr ough its website named a www.
Ford had one more option in designing the cars and commercial vehicles based on electric engines.The sales figure of the ford company was declined from the year 2008 to 2009 due to global recession in the world financial market. so management is missing focus on some lines performance a nd it influence the ford to cause the low productivity.4%.Ford expanded its business operations in diversifie d geographical areas. cars which can run on renewable energies like solar p ower and bio fuels.Ford is havin g the market opportunities in India and china countries because two countries ar e having huge geographical market and population.Ford motor car company recruits a qualified and skilled em ployees in all its functions. Low productivity . The revenue of Ford was declined by 2 . Ford invests more money on maintaining a good working env ironment.Employee are assert . Toyota etc. the reason is the car maintenance charge will low when the ca r is run on electricity. Production of Hybrid Vehicles . If the car s are designed based on electricity engines the consumers will show more interes t to buy the cars. Ford will maintain good relation with the employee s by paying them better wages in automobile industry. The most of the people in thes e two countries are more interested to own a four wheeler for their family. Huge unfunded pensions and other obligations . Recession is one of the major factor for decline of sales and one more important factor is f ord will manufacture the standard cars which are not able to cope up with curren t market automobiles. Opportunities of Ford – Production of the fuel efficient cars – At present ford is producing the cars with low mileage and pick up. That is the reason ford fiesta is a most successful car in these two markets. The automobile industry is having one more fuel efficient types like. Weakening operations in North America – In the North America part ford operations has been declined due to the huge competitors like GM. . Weakness of Ford – Sales Decline . Ford is having a great opportunity to produce fuel eff icient cars and commercial vehicles. Ford is more concerned abo ut the working environment and safety aspects of the employees. Opportunities in India and China markets.Ford is one of the automobile company which takes more responsibilities in the health and s afety of the employee.
Less Capital spending .Ford is spending low on its operatio ns and research development activities. The co mpetitors are spending huge amount on R&D programmes. As a who le it will influence the profit margin of the ford because of low margin price. BMW. etc. Toyot a. From the beginning Ameri ca demanded automobile industry. Rapid growth of competitors . . ford provides customers to choose their vehicles. Honda. Porters Five Force Analysis Source – The Business Environment by Worthington & Britton. Sixth edition Threat o f new entrants – Threat of new entrants will be low for the ford because the ford is one of automobile which is providing the best services with low cost of price . when compared to its competitors. Ford is having cost advantag e because it is providing the vehicles with low cost when compared to the other competitors.Threats to fordPrice Rise in raw material prices – Raw material prices like hard s teel and rolling steel cost will influence the margin price of the car. Ford’s main competitors are General motors.Ford growth and development may effected by rapid growth in no of competitors in the automobile industry.
Ford is having goo d relations with suppliers for the output of quality cars.www. Competitor Analysis – Source from .usnews. T he bargaining power of customer is low when compared to the other automobile. Toyota. All the above mentioned forces will lead to the rivalry among thes e companies to provide the customer with competitive advantage and provide the c ustomer with quality cars and commercial vehicles. Th reat of substitute – Substitutes for ford motor company are less but their are som e substitutes which the cars are running on the electricity and other bio fuels.com The Core Competencies of Ford are it is very innova tive in using the high technology in the manufacturing the cars & commercial veh icles. Rivalry among existing compani es . Bargaining Power of c ustomers – Customers of Ford are comfortable with ford way of providing the vehicl es customization and way of delivering the products within the specified time.The important competitors of Ford motor company is Genral motors. Ford is more concerned about safety and more over ford is gave the opport unity to its customers to customize their interiors and exteriors of Cars.Bargaining power of suppliers – Ford motor company enhances the relations with six teen new suppliers to gain the bargaining power of suppliers. H onda and BMW. eg – riva one small car which runs on electricity. .
Overall ford sales are good when compared to g eneral motors and Toyota.bbc.The important competitive advantage is ford is the first motor company to come w ith active park assist. which can help the driver to park with a touch of a butt on . General Motors sales are high among these automobile companies.ford.co. Ford is performi ng good even in recession time because the ford motor vehicles are not too costl y when compared with competitors.co.uk . Source – www.uk Comparing the sales of top automobile companies like Gener al Motors and Toyota The sales of these companies are from the year 2004 -2009. Source – www.
Pure battery electric vehicles . . Ford manufactures vehicles under several names under standardized procedures with a high quality. Ford is providing the custom ers to choose their design of the car and their interiors through online sales. Overall we can conclude that Ford is concentrating on product approach rather than customer approach. It focuses more on new technology and innovative products. Ford is providing the small engi nes with high pickup and mileage. Ford manufactures th e some models like CRV. D Ford Motor Company implements the Hybrid strategy to perform well in the automobile industry and to provide the competito r edge. As a part of Hybrid Strategy – ford motor company is providing the custome rs with low prizes when compared to the others.Strategies of ford – I am going to analyze the strategies of ford through Bowmen’s clock Source – Marketing strategy by Mercer. SUG for the people who are interested in using premium a nd luxury cars. Ford attracted eleven millions people per annum Ford manufactures cars with smal l engines and mostly it is for focused group like a family.In future ford is coming with c ars which will run on bio fuels and electricity to attract the cost concerned cu stomers.
Now ford shares are incr easing due to loyal customers and increased satisfied .http://www.Performance of Ford Performance of Ford in Share Market Source .com/doc/2008_annual_report The performance of Ford is d eclining in the share market due to recession in global market. But the ford per formance in share market was not too declined when compared with the general mot ors.ford. The performance of ford in the year 2009 was increasing. the share value of ford according to 2009 market it was increased by 12%.
It will helps the organization to develop in environmental factor. Recoveries in some markets are modes t due to weak labor markets and tight credit RecommendationsFord should concentrate more on revenue growth by manufacturing p remium and luxury cars and should use the focus group strategy. But ford suddenly facing the problem in 2008 sale s due to the economical problem.ford. Ford have the op portunity to manufacture cars which can run of electricity. solar energy and bio fuels. From the above chat we can interpret that sales of ford from 2003-2007 went well some fluctuations but in the year of 2008 the sal es of ford was declined due to various reasons like Recession in the global mark ets. and environmental. economic al.Sales Performance of ford Summary of vehicle unit sales Source . huge competitors who are providing better competitive edge.com. Global economic c onditions are improving but remain fragile.http://www. (decline of markets and GDP’s). social. Conclusion – Ford automobile company is performing well in the aspects of political. .
htm. The Analysis of Strategic Rationale and I mplications of ford uk plant closure.html. 2008.http://www. The Business Environment. Accessed on 25th-03-2010. Sixth edition.com/marketing/342-fordmotors-swot-analysis. Available from URLhttp://www. (Online). Ted Reed. Accessed on 14th-04-2010.com.thestreet. 2000. www. Ford Market Sales and Shares. Pearson Education Limited. Mc Graw-Hil l Higher Education.c om/worldindustries/automobile/. fifth edition. History of automobile industry.ford. The Business Environment. GM & Ford – Roadmaps for Recovery. 2009.php. Accessed on 30th-03-2010.com.mba-tutori als.ivoryresearch. Andre Clark. Adrian palmer & Bob Hartley. UK. Accessed on 27th -03-2010. www. 2008. Pearson Education Limited. first edition. Ac cessed on 9th-04-2010.(Online). 2009.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA. UK.economywatch. Available from URL. UK. UK.com/microsites/sustainability-report-200809/economy-data-market. 2007.com/investor/content/mar2006/pi20060314_416 862. Available from URL. Avai lable from URL-http://www. Ford Motors Swot Analysis. S ixth Edition. Mc G raw-Hill Higher Education.bu sinessweek.com. (online).economywatch.http://www. The Business Environment. 2010. 2006. . 2006. ww w.mba-tutorials. Ford Stock Feels The Love.com/sample3. www.com.com/_yahoo/story/10727277/1/ford-stock-feels the-love. 2009 .References – Adrian palmer & Bob Hartley.ford.ivor yresearch. Available from URL-htt p://www.com. (Online). (Online).businessweek. www. Accessed on 4th-04-2010. Organisations competitions and the business environment. (online). Available from URLhttp://www. Worthington & Britton.
yahoo. (On line).com/news/Ford-Europes-TopSelling-Brand -prnews4090456575. .yahoo. Accessed on 14th-04-2010. com. Accessed on 14th-04-2010.html?x=0&. 2010. http://finance.yahoo.yahoo.v=1. Available from URLhttp://finance.Europe’s Top Selling Brand in March. 2010.html?x=0&.com. (Online ).com/news/Ford-Now-Has-Industrys-pr news2389427271. Ford.v=1.http://finance. Available from URLhttp://finance. Ford now has industry’s highest customer satisfaction with quality.
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