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Business Environment Assignment | PESTLE Analysis

Added on - 18 Oct 2019

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IntroductionThis article is going to discuss one of the significant tools of scanning the business environmentcalled PESTEL Analysis. The discussion of PESTEL Analysis in this article has been done inregard to Ford Motors an American multinational organization. Thus, the purpose of the article isto analyze the macro-environment of Ford Motors with the help of PESTEL Analysis. Anorganization operates in an environment which significantly affects the functions of theorganization. There are several factors in the business environment which control and affect thefunctions of the organization. It significantly influences the performance and productivity of theorganization and hence the organization needs to analyze these factors to function smoothly inthe market (Song et al., 2017). PESTEL Analysis is an important tool with the help of whichthese factors can be easily analyzed. PESTEL analysis also helps in creating strategic strategiesto avoid or minimize the effect of environmental factors on the company.Overview of the OrganizationFord Motor is one of the American based multinational organizations which sells commercialvehicles as well as automobiles. The Company offers the cars under the brand name of Ford.Apart from this, the organization sells its most luxury cars under the brand name of Lincoln.Ford Motors was founded on June 16, 1903. The founder of Ford Motors was Henry Ford and itsheadquarters is in Dearborn, Michigan, United States of America. The organization offers itsservices world-wide (Macdonald, 2017). The organization is the second largest in the USA interms of manufacturing vehicles while the 5thlargest in the world. There are more than 199000employees are working with Ford Motors currently.
PESTEL AnalysisThe concept of PESTELanalysis can be better understand with the help ofPESTEL definition.PESTEL analysis can be defined as a tool or framework which is extensively used by theorganization in order to monitor as well as analyze the factors of macro-environment of theorganization which can impact the performance of the company profoundly. This framework isextensively as well as regularly used by the organization to ensure smooth functioning of theorganization by avoiding or minimizing the impact of macro-environmental factors (Nurmi andNiemela, 2018). However, this tool is very helpful for the new organization. It is also very usefulfor the organization which is planning to enter into a new market (especially the foreign market).PESTELanalysis is an acronym which stands for;
PoliticalEconomicSocialTechnologicalEnvironmentalLegalPESTEL Analysis of Ford MotorsPolitical FactorsThe political factor is one of the significant factors which can determine the profitability of theorganization. The political factor can significantly affect the long-term profitability of FordMotors. The concerned organization has a presence in several countries and hence it exposesitself to several political systems. Therefore, it can be said that the organization is dealing with
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