Sale and Prosperity of the Organization of Ford Motors - Term Paper Example

Final Term Paper Question In this age of extreme bargaining power and rivalry among the competitors, the only desire of the organizations, operating in four wheelers is to improve its sustainability and competitiveness in the market. But it became extremely difficult for the organizations to retain its position and reliability in the domestic markets due to the presence of numerous rival players. As a result of which, the American multinational automaker, Ford Motors also desired to expand its market share in numerous international markets. However, at the time of expansion into international market regions of Europe, it had to bear varied types of challenges and issues such as barriers in international trade, mitigation as well as investment (Beall, 2010). But due to the support of municipal government, all such international barriers reduced significantly that amplified its position and brand image in the entire globe among other rival players such as General Motors, Toyota etc. As a result of which the total sale and profitability of the organization enhanced that proved effective for the government of the Europe among other neighboring nations. The economic condition of the country enhanced as well as the rate o unemployment and poverty reduced to a significant extent (Ford.com, 2014). Other than this, at the time of expansion in the new market region of Europe, the organization of Ford Motors had to analyze the taste and preferences of the customers so as to improve its prosperity and portfolio in the market (Bradley, 2012). Moreover, due to the active participation of municipal government, the policy related issues such as tariff barriers, subsides to local firms etc reduced significantly that amplified its reputation and market share in the markets of Europe among others (Ford, 2014). Question 2 The organization of Ford Motors had to bear varied types of political challenges such as tariff rates, trade restrictions due to political instability in the nation of Europe. As a result of which, the brand image and competitiveness of the organization of Ford Motors attained a serious set-back (Kazmi, 2010). Economic factors: inflation is one of the important causes that hindered the total sale and prosperity of the organization of Ford Motors within the region of Europe as compared to many others. As a result, the organization had failed to enhance its profit margin and demand of the products that hindered its portfolio and prosperity in the market among others. Social factors: as the preferences of the customers are changing at a rapid pace so the organization of Ford Motors offers high attention over its research and development department (Bradley, 2012). It is done in order to satisfy the social factors such as health consciousness of the aging populations of the society. Therefore, in order to fulfill the requirements of the customers, it presented eco-friendly vehicles that do not present any harm to the environment. As a result of which, the demand and total sale of the vehicles of Ford Motors increased that amplified its brand value and profitability in the market among others (Kazmi, 2010). Technological factors: in order to enhance the range if customer bases, the organization of Ford Motors tried to amplify its technological aspects such as implementation of automated technology (Drummond & Ensor, 2006). This technology acted as a boon for the organization of Ford Motors that amplified its portfolio and demand in the market among many other rival players such as Toyota, GE, and Hyundai etc. Thus, from these above mentioned points, it might be analyzed clearly that, in order to enhance the position and market share, the organization of Ford Motors had to offer high attention over its research and development. Only then, it might become successful in amplifying its total sale and revenues in the markets of Europe as compared to its contenders. Moreover, due to the implementation of eco-friendly technology, the organization became successful in enhancing in amplifying its competitiveness and reliability in the market (Kotler & Keller, 2012). Question 3 The opportunities that the organization of Ford Motors achieved in this age of competitiveness are presented below: Highly positive attitude of the target customers towards green vehicles: now a day’s maximum extent of the customers offers high attention over green vehicles. This is done, in order to safeguard the environment from the harmful effects of green house gases such as carbon dioxide, carbon monoxide; methane etc as these gases offers a negative impact over the ozone layer (Cheratony, 1993). Increase of fuel prices: increase of the prices of fuel also proved to be extremely worthy for the organization of Ford Motors in this age as compared to others. As the organization became successful in developing highly fuel-efficient engines that reduced the emission of fuels and so these cars are highly preferred in this age of fuel price hikes (Werbach, 2013). Improved performance of Ford Motors: the organization of Ford Motors stopped developing customized engines for different regions but tried to implement diverse regional preferences within a single engine. As a result of this thought and idea, the organization improved its total sale and profitability in the recent years that amplified its market share and dominance in the market (Gondek, 2011). Thus, among all these above mentioned opportunities, the best opportunity for the organization of Ford Motors is the recent hike of fuel prices and high consciousness for green vehicles. Due to these causes, the idea of Econetic initiative proved extremely beneficial for the organization that amplified its prosperity and brand value to a significant extent as compared to many other rival players. Other than this, due to these opportunities, the upcoming threats of intense competition as well as substitute products offered no harm to the organizational productivity and profitability (Beall, 2010). As a result of which, the portfolio and brand value of the organization of Ford Motor and its product lines increased significantly in this aggressive market scenario. 4. Understanding risk of opportunities The opportunities that proved extremely worthy for the organization might also offer negative impacts in future era, for example: Decrease of fuel price: in case the prices of the fuels decreased, then it might offer highly negative impact to the organization. This is because, the total sale of compact fuel-efficient hybrid as well as newly designed flexible fuel cars might get lowered that may hinder its prosperity and demand in the market among others. As a result of which, the position and brand value of the organization of Ford Motors might get reduced thereby decreasing its dominance in the market (Academia.edu, 2014). Intense competition: the organization of Ford might face intense competition from other existing players in the segment of small cars with hybrid engines. As a result of which, the total sale and demand of the product lines of Ford Motors might get reduced significantly. Numerous substitute products: the organization of Ford Motors might retain its image and position among many other substitute products only if, it maintains constant research. Otherwise, its market share and fame might be easily captured by any other rival players. Therefore, in order to improve its profitability and efficiency, the organization of Ford Motors might make use of the upcoming opportunities in an effective way. Therefore, the organization of Ford Motors might try to offer high attention over research and development so as to present high inventive vehicles so as to satisfy the changing demands of the customers. Only then, it might become successful in enhancing its brand image and position in the market among other existing rival players in future era. Apart from this, the organization of Ford Motors might try to analyze the changing demands of the target customers through extensive research so as to act accordingly. This is the most important way by which, the organization of Ford Motors might improve its sustainability and profitability in the market among others and may tackle its risks and challenges effectively (Beall, 2010). 5. Identifying an action plan to act on the opportunity. Opportunity Task Time Status Increase of fuel prices Presentation of fuel efficient vehicles By 6 months Prove effective for Ford Motors in amplifying its profitability and brand value in the market Positive attitude towards eco-friendly vehicles Extremely effective for the initiative of econetic By 6 months This opportunity might prove helpful for Ford Motors thereby amplifying its prosperity and demand in the market. As a result its portfolio might get amplified to a significant extent. However, if the above mentioned action plan is followed effectively, then it would surely present best results for the organization of Ford Motors as compared to others. Along with these action plan tasks, the organization of Ford Motors also needs to offer high attention over research and development, in order to understand the changing requirements of the customers. Only then, it might become successful in satisfying the upcoming threats and challenges thereby amplifying its position and competitiveness in the market. References Beall, A, E. (2010). Strategic Market Research: A Guide to Conducting Research to solve problems. Boston: Harvard Business School Press. Bradley, N. (2012). Marketing Research: Tools & Techniques. New York: McGraw-Hill. Cheratony, L. (1993). Marketers and consumer concurring perceptions of market structure European. Journal of Marketing, Vol. 23 Issue 1, pp.156-157. Drummond, G. & Ensor, J. (2006). Introduction to Marketing Concepts. New York: Cengage Learning. Ford. (2014). About Ford Motors. Retrieved from: www.fordmotor.com. Gondek, C. (2011). The product Ford Fiesta: A Marketing Analysis - Part I &, Part 2. London: GRIN Verlag. Kazmi, S, H, H. (2010). Marketing Management. Germany: Springer. Kotler, P., & Keller, K. (2012). Marketing management. Harlow, NJ: Pearson Education. Werbach, A. (2013). Strategy for Sustainability: A Business Manifesto. London: Harvard Business Press. Read More