Analysis of Enterprise Environmental Factors for Ford Motors Co.

Introduction
Ford Motor Co. is an automaker company situated in the United States of America and was
established in the year 1903. The revenues of the company are approximately $164,196 billion.
Company has a presence in the entire world with 327,537 employees working for it across the
world. The company has a department called the Electrical or Electronic Systems Engineering
department and it has the responsibility of developing electrical systems and these systems are
valued at cost of $800 to $1000. These systems are then sent to more than 80 vehicle programs.
This particular department has almost 740 employees divided into teams with 25 engineers in
each team.
The department and its processes are well aligned with the mission of product creation
enumerated by Ford, which helps in intensification of communication. However, there are many
internal and external factors that have an impact on the functioning of the department. Hence,
this report presents an analysis of Enterprise Environmental Factors (EEF), their impact as well
as the plan of communicating with the stakeholders.
Enterprise Environmental Factors
The Ford Motors Co. operates in a highly volatile environment in which changes take place
rapidly. The changes, however, can be both internal as well as external to the company.
Therefore, with respect to Ford Motor Co. various Enterprise Environmental Factors can be
taken into consideration, which affects the operations of the company.
The term EEF can be defined as all those internal and external factors that have an impact on the
operations and activities of an organization (Institute of Leadership & Management, 2007).

There can be a positive as well as negative impact of these factors. Some of the factors internal
as well as external to the organization are mentioned below:
INTERNAL FACTORS
1. Human Resources
2. Operational Efficiency
3. Organization Structure and Organization Culture
4. Availability of Capital and Finance
5. Infrastructure
6. Uniqueness of the products offered
7. Imitation risk of the products
8. Management Decisions
9. Innovation
10. Communication within the organization
EXTERNAL FACTORS
1. Political Environment
2. Economic Environment
3. Technological Environment
4. Social and Cultural Environment
5. Ecological Environment
6. Legal Environment
7. Infrastructure
8. Suppliers and Creditors
9. Customer Demands

10. Market Conditions
In total, 20 environmental factors are listed in which 10 are related to internal environment and
10 are related to the external environment. Out of these, some important ones are explained in
the below section:
Internal Environmental Factors
Human resources- Most important resources of a company are its human resources and this
applies to Ford as well. The department first checks the requirement of the project and as per the
required skill set, human resources are allocated. The department has a diverse workforce, which
makes this process of allocating human resources easy. Furthermore, the advanced project
managers for this department are identified through individual development plans and they are
then provided with advance training so as to make sure that they will be able to take up
permanent leadership roles in the company.
Operational Efficiency- It is essential so as to ensure reduction in costs, avoidance of wastage
and timely delivery. At the Electrical/Electronic Systems Engineering department of Ford,
operational efficiency is greatly focused upon. This is evidenced by the fact that the company
tries to remain consistent in project management delivery. This is done by ensuring
standardization in processes and institutionalization of new processes.
Organization Structure- If the structure and the roles in an organization are well defined, then
ambiguity and mismanagement decreases to a great extent (Contreras, 2007). The
Electrical/Electronic Systems Engineering department is divided into three levels, the
governance board, the stakeholders and professional project managers. The prioritization work is
carried on by the governance board; technical knowledge is provided by the stakeholders and