Managing External and Internal Factors in Business

This assignment involves analyzing the significance of managing external and internal factors in a business setting. It also delves into the concept of marketing communication mix and its role in promoting a firm's offerings. The document provides references to various books, journals, and online resources related to the topic.

Contemporary Development In Business
And Management

Table of Contents
EXECUTIVE SUMMARY ..........................................................................................................3
INTRODUCTION ...........................................................................................................................4
TASK 1............................................................................................................................................4
Overview of the primary external influences and their importance for the firm.........................4
TASK 2 ...........................................................................................................................................7
1) Relevance of Marketing communication mix and its impact on the policies and decision
making of firm.............................................................................................................................7
2) Critical Evaluation of effectiveness of organisation's response............................................10
3) Demonstration of improvement in the response of firm.......................................................12
CONCLUSION..............................................................................................................................13
REFERENCES...............................................................................................................................14

EXECUTIVE SUMMARY
Both environments like external or internal provide influence to the organisational
profitability in positive or negative manner. Basically most of the organisations can handle their
internal environment because they are less effective then the external environment because they
are risky and also provide opportunities of growth and development to the organisation.
Therefore, every organisation in the marketplace consider the needs and wants of customers and
deliver the offerings accordingly. Present assignment is based on Ford Motors which was
established in 1903 by Henry Ford. Company operates its business internationally in across the
world like Australia, America, Africa etc. In this report, external factors along with its impacted
on the business operations and functions. Analysis of marketing communication mix are also
explained that has defined how it impacts on the decision making and policies of Morgan.

INTRODUCTION
Contemporary development can be termed as the planning or development of an
organisation in a specific condition so that upcoming changes can be adopted or implemented in
the workplace without facing any kind of difficulties. Furthermore, these changes are adopted by
the managers through evaluating present conditions and past experience. As competition is
rapidly growing in the marketplace therefore, it is very essential to all firms to make
modifications regularly so that demand and requirements of customers would be fulfilled in easy
manner. For gaining development, it is mostly required by the firms to make considerations on
these elements which can influences functions and operations of organisation. Taken firm for this
assignment is Ford Motors company which is an auto-mobile manufacturer along with providing
their products and services in several countries across the world. Present report will covers about
the PESTLE analysis along with its influences on business operations. Marketing communication
mix and its relevancy, analysis and improvement will also covered in this report.
TASK 1
Overview of the primary external influences and their importance for the firm
Ford is an auto-mobile manufacturer which provides motor vehicles in various nations like
Australia, America, Switzerland etc. along with based in Michigan, United States. Company was
started in 1909 but in present scenario company is providing its products and services in world-
wide.
There are numerous elements that influences the performance of organisation. These
factors are not connected with the organisation in direct manner but they gave their influences on
the operations and functions of organisation. These factors can also termed as Macro
environmental factors that comprises of political, economical, legal etc. Influences of these
elements on the business operations and functions of Morgan Motors can be better understood by
as under:
PESTLE analysis
Ford Motors operates their business functions in various nations and there are numerous
factors which influences their business functions. Company performs most of its activities in
external environment because it provides them huge opportunities for taking growth in the
marketplace. This environment also encourage the managers of company to identifying their

competitors and threats so that effective plans or policies can be formed accordingly which helps
the firm in in achieving growth or sustainability in this kind of environment. For analysing the
external environment the most appropriate tool is PESTLE analysis through which Management
of Ford can easily understand the macro environmental factors that can influenced their functions
and operations in adverse or favourable manner. This analysis is divided in some factors which
are defined as under:
Political Factor - As company is operating its functions across the world therefore, it can
influence the profitability of Ford Motors if the government of any nation make changes in their
laws or legislations. This factors plays a very important role in auto mobile and create barriers
and restrictions for the foreign company which indirectly influences the profitability of business
firm in negative manner. Political factor can also influence the spending power of customers
along with sales figures of the firm in adverse manner. Company performs its business functions
across the world so they have a large production network and also determined as the highest
vehicle seller in Asian countries. For example- company have sold their one million vehicle in a
single month of year, 2016 which has made a huge worth of firm in Asia Pacific region.
Therefore, it can be said that in Asia company can easily take growth and competitive advantage
in future time Whereas, problems of supply chains can make predictions of sale and profitability
wrong. So that, it is very important for the management to make more consideration on their
supply chain and distribution systems due to which difficulties of these factors can be overcome
in less time period (Wilton, 2012).
Economical Factor- If economic condition of a nation is good then it also provide a
positive influences on the operations of company as well as economic conditions directly
influence the prices of auto-mobile vehicles of Ford. It comprises of growth rate of GDP,
Inflation rate, currency fluctuations etc. for example, if inflation rates are high in a nation then
management of Ford have duty to cut down their prices so that sales figures can't be decreases in
a specific nation. As the economy of U.S nation is rapidly growing which can provide
opportunities to the firm in increasing their market share and sales figures in their home nation.
Company can also gain opportunity of expanding their market share in high developing nations
where the company has limited presence. Whereas, Pound in UK nation is rapidly growing which
can decrease the profitability and market presence of firm. From these positive and negative
factors, it can be said that company should improve their business efficiencies so that

opportunities of expansion in foreign markets can be taken by the company in limited time-
frame.
Social Factor- This element comprises of taste and preferences, age distribution,
demographic changes, likes, dislikes of the customers etc. which can also impact the sales figures
and revenue of firm in positive or negative manner. Culture of the nations can also impact the
business operations of Ford. For e.g. a family person wants to buy the car in order to fulfilling
the needs of its family without prioritizing the cost, but if sales representatives would show them
those vehicles which are not beneficial or not fulfilling their desires so, they would change their
perception and shift towards another brand. Therefore, staff training is also important because it
can provide profitable results in fulfilling the wants and desires of customers. Management of
Ford should make focus on the needs and wants of customers and manufacture the products
accordingly so that any difficulty wouldn't be faced by the company in future time. As the
demand of hybrid and electric cars are increasing rapidly in the marketplace which can provide a
opportunity to the managers of Ford in building their good market presence in the mindset of
customers (Symon, 2012).
Technology Factor - It is the element which helps the firm in gaining competitive
advantage over their rivals or can impact the business operations in terms of decreasing their
sales figures. More uses of mobile devices are external element which can create opportunities
for the Ford motors in building strong relationships with their customers. With the help of new
applications or software the performance level of employees will be improved which would be
profitable for the organisation in increasing their customer base. In present scenario, safety and
consideration about the environment are rapidly growing therefore, demand of hybrid cars are
increasing in various nations and citizens are looking for those vehicles which are less
consumptive in terms of fuel. Technology can decrease or increase the attractiveness, sales
figures and revenues of firm in the marketplace therefore, Management of Ford should make
more investment in technology so that vehicles would be made more safer and convenient for the
customers. The company has decided to make investment of around £1 billion dollar in next 5
years to bring hybrid and driverless cars in their showroom by the year of 2021. Production of
these vehicles would be more beneficial and provide opportunities of gaining competitive
advantage in the marketplace.

Legal factors- This factor is generally related with health and safety of employees,
advertising standards, rights and authorities of customers and firms, product labelling, quality
and safety of vehicles etc. This factor provides a clear understanding to the managers of firm
about what is legal or illegal for their firm. In the context of Ford, it can influence the business
operations or functions of firm in positive or negative manner. In previous years, management
have not considered the importance of quality and safety in their parts due to which their sales
figures were decreased in that time. But now management is focusing on the design of their
vehicles and safety of spare parts for this they have appointed quality specialist in their
production department so that all parts like breaking system, crash tests, tyres, airbags can be
designed according to the safety and quality regulations. With the help of it, firm will gain
growth and success in the marketplace. This factor is not only based on the company or
customers whereas, it facilitates staff members to maintain the balance between their work-life
and personal life by providing them insurance policies, health and safety systems at workplace.
Environmental force- Management of ford wants to operate their functions without
harming the environment and nature of society. For this, they have recruited environmental
officers in across the world so that less carbon can be discharged by the company. They are also
working for optimal consumption of resources along with eliminating unnecessary activities
from the production process so that growth and sustainability would be achieved by them in a
shorter period of time. Company can put more focus on new kinds of vehicles like electric or
hybrid cars so that attention of a large number of customers can be received by them. As
Management of Ford have decided to bring hybrid and electric cars on roads by 2021 therefore,
this step of management can prove beneficial for them in satisfying those customers who more
prefers energy efficient cars (Osborne,2014).
TASK 2
1) Relevance of Marketing communication mix and its impact on the policies and decision
making of firm.
Marketing communication mix
It can be defined as the specific methods which are used by the organisations for
promoting their products to their targetted customers. In addition to this, this mix is made by two
factors like marketing and communication mix in which marketing is a broad term that is use by

the firms for delivering their products to targetted customers. Whereas, communication mix is
defined as the methods that are used for building awareness about the products in the mindset of
customers.
Management of Ford uses various elements of marketing communication mix like media,
print advertisements, sales promotions, event sponsorship etc. Firm uses these methods for
communicating their marketing message to targetted customers. There are five kinds of
marketing communication mix like advertising, public relations, sales promotions, personal
selling which can also influence the policies and decision making of organisation.
Advertising - This is an important tool which is used for promoting the products. There
are various methods which can be used by the firms for promoting their business like newspaper,
radio, TV etc. Management of Ford are using print and media advertising methods for making
awareness about the offerings of firms. Company also use various policies like HR, CSR and
Management for making their advertisements. Such as for recruiting the employees they use
advertising channels whereas, for training and development of employees or CSR activities
company uses various promotional tools and it influences these policies in positive manner. But
some times it can impact on the policies and decision-making in negative manner like some
private informations and important strategies revealed through advertisements. Therefore, it can
be said that these methods are very much helpful for creating awareness about the offerings and
services of Ford among the customers (Botha, 2014).

Sources: Marketing communication mix,(2018).
Public relation- It help a business to create a positive image of them in the society and to
increase the value of their products in the mind of the consumer with the help of different paid
and unpaid communication. It include social media, newspaper and by interact through different
people. Public relations has a positive side that they advertise products through paid and earned
media only. So it create a difference that they cannot advertise the products by paying methods.
Like public relation officer create a method for communication that work reciprocally between
customer and company. For example- If the company will use better HR policies in the
workplace such as providing training to their employees on regular basis, it will beneficial for the
firm's growth. Whereas, if company have not proper management structure then it impacts the
business operations and functions in negative manner (Chawla, 2012).
Personal selling- This is also an effective tool which is used for communicating with the
individuals. It helps the management in identifying the actual needs and preferences of customers
so that adjustment can be made accordingly and it can also influences the policies or decision
making of Ford Motors. For e.g. if the management should provide better training to their
employees through using their HR policies it will bring positive results for the organisation in
terms of attracting a large number of customers whereas, negative feedback or preferences of
customers can impact adversely on the decision making. By using these tools, company would
Illustration: Marketing communication mix

get direct feedback from their customers which would be beneficial for decision making and
solving the upcoming problems.
Direct marketing - There are various tools are involved in it like telephone marketing,
direct mail, online marketing etc. which can influence the preferences or tastes of customers in
positive or negative manner. Such as management of Ford motors is using direct mail or message
method for attracting the customers which will help them in building good relation with new
customers. Whereas, most of the individuals admits that direct marketing is annoying and
disruptive in nature that can influence the decision making process of firm in negative manner.
Direct marketing can also impact the customer base of firm in negative manner like if
management will not produce products as per the requirements of customers then it will create
dissatisfaction in them which is not beneficial for the profitability or sales figures of firm.
Sales promotion- This is also an effective tool of marketing communication mix and a
part of marketing strategy which is used by the organisations for a specific time period. This tool
is used when company wants to spread awareness among the larger number of customers in a
small time period. For example Management of Ford have provided loyalty cards and attractive
bonuses to their existing or old customers so that future decision would be made in positive
manner (De Massis, 2014).
Event sponsorship – In it, Company wants to get attraction of ample number of
customers towards their offerings in a shorter period of time. For e.g. if management of Ford
Motors organise an event or makes sponsorship in sports programmes then it automatically
builds positive image of the organisation in the mindset of customers within a small time-frame.
It can also influence the decisions of firm of organising an event in adverse or favourable manner
such as when large number of customers are present in the event it will be positive for decisions
but if there are less customers presents in even then expected it will negatively influences on the
decisions of organisation.
2) Critical Evaluation of effectiveness of organisation's response
Marketing communication mix is a wide concept that is used by the organisations for
influencing the buying behaviour of targetted customers. With the help of this concept, business
organisations can easily identify the specific needs and wants of customers or provide products
and services accordingly so that their specific requirements would be fulfilled in an effective
manner. Some advantages of this concept are given as under:

 It is a wide concept which encourage and assist the managers of firm in capturing huge
market share along with a strong customer base. Advertisements are effective method
through which company can deliver its messages to their targetted customers so that they
can easily attracted or aware regarding the new products or services of Ford. With the
help of this method, company can easily enhance their sales figures or profitability in
marketplace.
 From this wider concept, Managers of Ford can easily chose the method which is
beneficial for the organisation in terms of cost or efforts like they have chosen personal
and direct selling, from which they will easily identify the targetted customers and know
their specific needs and requirements.
 Main advantage of marketing communication mix is that, it allows the managers to chose
their channels or make modifications in their marketing activities. It can be possible when
the managers have identified who are the targetted customers, prices of offerings, what
are their willing to pay etc. In the context of Ford motors, their targetted customers are
those individuals who belongs from middle income groups and wants to purchase
vehicles from the Ford. For this, Managers have to make modifications in their policies
and prices like if cost of a vehicle is £5,000 such as they can make down payment for it
of £1000 and remaining amount will be paid in instalments. With the help of this, strong
brand image of firm would be build which leads the firm towards growth and success.
 All the methods of marketing communication mix are related with each other therefore,
Managers of Ford can't make decisions through making focuses on a single method. As
this concept is related with promoting the products or services so that managers can't
make decisions by ignoring other aspects of this concept. For e.g. direct selling and
personal selling both methods are important and used for making close relations with the
customers. Therefore, managers have to chose both methods and making better
considerations on each aspects so that better profitability and customer base would be
gained in future period (Grint, 2013).
 In event sponsorship, Marketing managers of Ford can easily identify their targetted
customers and promote their services in effective manner. With the help of this method,
chances of gaining positive response from customers are higher but it is depends on a
specific time period because when event is finished then response of customer will also

over. So, it can be said that this method can provide profitability to the organisation for a
small time frame.
Apart from that, there are also some major disadvantages of this concept which are given as
below:
 This concept is wider and demands more time and efforts for forming effective strategies
and implementing additional features in the products and services. As all modifications
are necessary for the products and services which can influence the strategies or decision-
making in negative manner.
 These concepts are used for focusing the behaviour and main preferences of customers so
managers are making decisions accordingly but they does not considered the other
sections of firm while making decisions which can influence the sales figures and
customer base in adverse manner. Management of Ford have no ability of making
decisions in that areas in which the requirements of customers are most important need.
 This concept is only used for identifying the preferences and taking feedbacks of
targetted customers so that sales figures and revenues can be enhanced. But customers are
not considered as the main element of this procedure because main objectives of this
procedures are to promoting the product and building awareness of offerings among the
customers which can decreases profitability and sales figures some time. In the context of
Ford Motors, Managers are not focusing on their relations with customers while making
decisions which can reduce the customer base of firm in marketplace (DesJardins, 2014).
3) Demonstration of improvement in the response of firm.
 With the help of this concept, Management of Ford will be able in attracting a large
number of customers along with identifying their actual needs and wants from the
offerings of organisation. It also guides the managers to take feedbacks and suggestions
from the customers regarding the offerings of firm so that modifications can be made in
the offerings on the basis of their feedbacks.
 Customers are the main elements which can impact the sales figures and profitability in
positive or negative manner. For satisfying their needs in effective manner, Management
of Ford should provide pre and post sale services so that healthy relations would be made
with the customers. By using this method, company will be able in attracting an ample

number of customers towards the offerings of firm and also build an effective image in
the mindset of customers.
 In order to decreasing the time and money, organisation should recruit a person who have
specific knowledge and a long time experience in this field. Through it, company would
easily cut the cost and efforts which is beneficial for them in enhancing the satisfaction of
customers along with increasing the satisfaction of customers (Kaufmann, 2012).
 Company is operating its business functions worldwide therefore, Managers of Ford
should form effective strategies such as global marketing which will helpful for them in
smooth functioning of their business operations.
 They can also use social media platforms or digital marketing in upcoming period of time
that will be beneficial for them in enhancing their market-share and profitability.
CONCLUSION
From the above report, it has been concluded that there are various macro-environmental
factors like political, economical, environmental etc. which can influence the profitability or
customer base of organisation. Managing or controlling of this factor in a specific time period is
very important because it can influence the business operations and functions in negative
manner. Apart from that, marketing communication mix is also very important concept because
it encourage and supports the managers of organisation to chose an appropriate method so that
offerings of firms can easily promoted that would be beneficial for gaining competitive
advantage in the marketplace.

REFERENCES
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<http://www.themarketingguywhodrivessales.com/crashcourse/promix.htm>.