This essay describes the sustainable management futures of Ford Motor Company, that was first established in the year 1911 on 8th March. The researcher focuses on the discussion of the company and provides PESTEL and SWOT analysis as well as the history of Ford company. …
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Globalisation had increased the trade flow between countries by liberating trade barriers which had helped Ford to expand their sales in foreign countries. Several governments of foreign countries had developed good technological collaboration and permitted foreign ownership which had helped Ford to increase their resources and develop latest model to manage with the current market condition (Ivory Research Ltd, 2011). Economic Economical factor can influence the automotive industry. The GDP growth rate can determine the purchasing power of any country which is the most crucial factor for operating any business. Ford Motor Company operates in major economies such as China, America, the UK, India, Australia and others where the GDP growth rate and vehicle market condition are good (Ivory Research Ltd, 2011). Social Social factors such as customer attitudes, demographic factor play a vital role in automotive industry. For example, in countries such as America, people prefer large comfortable car, while on the other hand, people of the UK usually prefer small vehicles. These factors can affect the attractiveness of vehicle market in a particular country. From the graph below it can be seen that the demand of large vehicle had increased by 202% between the year 2003 and first quarter of 2004. Source: (Ivory Research Ltd, 2011). Technological In this era, the preferences of technological improvement had increased rapidly. People prefer more advanced and technological features in their cars. The Ford Motor Company always utilises good technology in their vehicle and it provides high quality vehicle for efficient use. It also allows customers to view the product’s features online and...
The researcher states that in the 21st century, Ford Company had experienced several issues and most important issues are economic recession, usage of energy and other environmental aspects. This essay focuses on the discussion of how Ford had responded every issue and proved as one of the top car manufacturers in the world today. It has developed new technology and decreased the CO2 emission along with increased sales. It is stated that Ford is concerned for both green environment and global economy and thus it develops car which has less impact on environment and is affordable by most customer. Ford focuses on developing solution to resolve global issues and help customer live better life. Ford strives to be a leader in fuel efficient technology. The researcher states that Ford aims to create electric vehicle in order to capture the electric vehicle market. Over the years, Ford has decreased the usage of energy by initiating various programs, mentioned in the essay. Ford had made continuous progress with regards to product quality, durability and security of vehicle and continued good progress in various environmental issues. In 2010, Ford was awarded as the ‘World’s Most Ethical Company’ because of good corporate social responsibility attempts and sound business practices. The researcher then concluds that Ford always provides product according to customer choice and with their convenient strategic business policy, Ford is determined to rank among the leaders of global automobile industry.
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Ford has been in crisis for some years now. The reasons that have lead to this crisis are many. There are external factors as well as internal factors that lead to the present crisis situation. But it is found that the center of all the issues of Ford is the serious mismanagement which has been undergoing in the company for years.
The author states that the company can also drive cost efficiencies by focusing its attention towards the international suppliers. It can be observed that big companies are generally focused upon the purpose as well as profits. Therefore, the company feels proud since it assists in improving the lives of people.
According to the discussion the work culture is very conducive to the employees, and it definitely helps in generating the employee productivity, which has helped Ford Motors to become one of the leaders in the automotive industry. The Managers in the organization maintain a good corporate outlook and boost the employees to perform well.
It operates under two segments: Automotive and Financial Services. The Automotive segment includes the operations of Ford North America, Ford South America, Ford Europe and Ford Asia Pacific Africa. The Financial services include the operations of Ford Motor Credit Company and Other Financial Services” (Reuters, 2011).
In 2010, this auto manufacturer earned a net income of $ 6.5 billion. And by 2011, net profits soared to $ 20.2 billion. In 2008, as a result of a recession, and the entire Auto Industry sales went down to its lowest level, Ford had reported a Net Loss of over $14.7 billion.
A company will have many departments and audit should be done on every departments accounts and then valuate the viability of merger of acquisition. After audit if it is found that functioning of all the departments are healthy and profitable then a memorandum is made between the companies.
As the report, Ford Motor Company, declares company’s mission statement is reminiscent of a reflection of its core principle, identity, and values. Ford Motor Company operates its business throughout the world and endows with ‘personal mobility’ for the communities. The company is committed to serve the people with enthusiasm.
Ford’s domestic sales have been low and stagnant for quite some time, in comparison to its European operations that has increased by producing many quality acclaimed vehicles. The reason behind the difference between domestic and international operations is expensive manufacturing facilities caused by “high wages and expensive health care".
The Ford F-series has been the leading product for the company for the last 33 years. Ford is the second largest motor-vehicle producers in the US but 5th in the world considering based annual sales by 2010. By 2008, the company had around 213,000 employees working on its 90 plants around the world with annual production reaching the 5 million mark.
Ford Motors believes that change in the climate of natural environment poses major opportunities and threats to the company. The company concentrates on stabilizing the effects of greenhouse gas in the environmental atmosphere to a certain extent that would result in a minimal effect on the climate change through producing cars in which the level of carbon emissions is relatively lower.
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