PESTLE Analysis of Ford Motors : Assignment
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Added on 2019-10-16
PESTLE Analysis of Ford Motors : Assignment
Added on 2019-10-16
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IntroductionThis article is going to discuss one of the significant tools of scanning the business environment called PESTLE Analysis. The discussion of PESTLE Analysis in this article has been done in regard to Ford Motors an American multinational organziation. Thus, the main purpose of this article is to analyze the macro-environment of Ford Motors with the help of PESTLE Analysis. An organization operates in an environment which significantly affects the fucntions of the organization. There are several factors in the business environment which control and affect the functions of the organization. It significantly influence the performance and productivity of the organization and hence it is important for the organization to analyze these factors to function smoothly in the market. PESTLE Analysis is an important tool with the help of which these factors can be easily analyzed. PESTLE analysis also helps in creating strategic strategies to avoid or minimize the impact of environmental factors on the business. Overview of the OrganizationFord Motor is one of the American based mutinational organizations which sells commercial vehicles as well as automobiles. The organization sells the vehicles 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 its headquarters is situated in Dearborn, Michigan, United States of America. The organization offers its services world-wide. The organization is the second largest in the United States of America in terms of manufacturing vehicles while fifth largest in the world. There are more than 199000 employees are working with Ford Motors currently. PESTLE Analysis
The concept of PESTLE analysis can be better understand with the help of PESTLE definition. PESTLE analysis can be defined as a tool or framework which is extensively used by the organization in order to monitor as well as analyze the factors of macro-environment of the organization which can impact the performance of the organization profoundly. This framework is extensively as well as regularly used by the organization to ensure smooth functioning of the organization by avoiding or minimizing the impact of macro-environmental factors. However, this tool is very helpful for the new organization. It is also very useful for the organization whichis planning to enter into a new market (specially foreign market). PESTLE analysis is an acronym which stand for;PoliticalEconomicSocialTechnological
EnvironmentalLegalPESTLE Analysis of Ford MotorsPolitical FactorsPolitical factor is one of the significant factors which can determine the profitability of the organization. Political factor can significantly affect the long-term profitability of Ford Motors. The concerned organization has presence in several countries and hence it exposes itself to several political system. Therefore, it can be said that the organization is dealing with several types of political system risks as well as political environment. Any disturbance in the political system of one country can have significant impact on the profitability of the organization. However, the organization cannot exercise control over political factors. Hence, it is necessary tomonitor the political factors closely so that associated risks can be identified in advance and the organization can develop strategies to deal with the identified risk. There are several political factors which affect the functioning of the organization such as level of political stability, risk of military invasion, level of corruption, etc. America is a politically stable country which will help Ford Motors to enhance profitability. Apart from this level of corruption is also low. So, it can besaid that the political factors of America is favorable for Ford Motors. Economic FactorsEconomic factor plays a very crucial role in making the organization successful. There are several economic factors which directly affect the performance of the organization such as the rate of inflation, interest rate, saving rate, employment rate, economic growth rate, foreign exchange rate, education level in the economy, etc. If the economy growth rate is high, it would
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