Contemporary Developments in Business and Management

Contemporary Developments in
Business and Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
External influences along with their importance for the organisation...................................3
TASK 2............................................................................................................................................7
1) Marketing communication mix and its effect on the policies and decision making in
organisation............................................................................................................................7
2) Evaluation of impact of an organisation's response to marketing mix..............................9
3) Improvement in the response for the organisation...........................................................11
CONCLUSION..............................................................................................................................11

INTRODUCTION
Development or evolution of a business under any business environment which is executing
its business in a dynamically changing environment is called contemporary development. It is
helpful for an organisation to continue their business successfully. It also helps business to cope
up with any changes happening in environment and adopting them according to requirements. It
also provides organisation with a competitive advantage and helps it to attain sustainable
development for longer period of time. In order to survive for longer period, it is required by an
organisation to adopt changes taking place in environment (Zunk and et. al., 2020). For the
following report Ford motor is chosen. It is an automobile manufacturer which was set up in
1903. It was founded by Henry Ford. It provides its product as well as services throughout the
world. In this report PESTLE analysis of Henry ford is conducted in order to analyse all the
external factors affecting functions and operations of business. Following report also put light on
marketing communication mix. There are also a number of improvement that company has taken
in order to sustain in market competition for longer period of time.
TASK 1
External influences along with their importance for the organisation
Ford motor company is an American reputed automotive manufacturer, which performs all
over the world by contributing customers with good range of cars from economies to racing.
It has been evaluated that; external business factors have great effect upon overall working of
this organisation. Since this organisation (Ford), is performing business among different nations
like United Kingdom, India, China and many more. It is recommended that company should
focus on modification in order to cut out all the risks in specified time frame.
On the other hand, factors which comes under external environment is not under the control
the company but simultaneously, it creates impact upon business organisation's functions or
operations at the same time like Ford Motor Company (Bybee, 2013). In present scenario,
external factors like political, economic, social, technological, legal and environmental majorly
impacts on business and functions of Ford Motor Company and those are mentioned below:
PESTLE analysis
Since, Ford Motor Company is trading its business over worldwide, therefore we can say
that organisation would administrate its overall performance level despite focusing on small

areas, then only Ford could expand its business among different nations. Regarding this, external
environment may involve huge opportunities but, at the same time it also consists of huge risk
factors. Ignoring this, proper analysis of external environment may inspire managers of a
business organisation like Ford Motor Company to pull out all the competitors in front.
On the other hand, threat can be figure out by managers which helps in making effective
plans along with policies by which business expansion can be done (Voronkova and et. al.,
2020). At present PESTLE analysis has being done below which will assist Ford and its
management to conduct all the risk, information and other stuff which presents different range of
macro environmental factors. A detail of PESTLE analysis is mentioned below:
Political Factor – Political factor may impact upon overall working of company
therefore it is regarded as crucial factor of external environment. Government federal laws, rules
and regulations comes under this factor which changes as per time and requirement; therefore,
this factor also dominate spending power of customers. Since Ford Motors trades over
worldwide therefore it is important to follow rules and regulations implemented by nation’s
government all over the world. Company’s majorly controls in Asian countries, where they get
high volume of sales, but due to pressure of domestic car companies Ford can sell specific
amount of car in other nations. To set a limit within sector, every nation’s government controls
both import and export of products and services of a company. This impacts upon profit scale of
Ford because they get bounded by limit to earn certain amount only. This factor is important as
government provides fair opportunities to every company to expand their company at
international level.
Economical Factor – Economic factors refers to a number of different of economic
margins which include interest rates, inflation rate, foreign exchange rate, custom duty and so on
on the goods and services which are delivered by a company. It is necessary for a business to
make sure that they are in analysing the economic factors of different markets in which they are
expanding their business. When taking Ford motors into consideration it is seen that the marginal
cost on the car consist of different market opportunities for the business. It is necessary in order
to attain good marketing position for the company within the market. The fluctuation in gross
domestic product as well as growth rate of various economy can have some effect on the
company (Vveinhardt and Ganusauskaitė, 2020). The rising prices of cars as well as the raw
materials which are used for their production is affecting Ford motor. Ford motors can look for