Management in Global Business Environment
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Added on 2020-05-16
Management in Global Business Environment
Added on 2020-05-16
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Running head: Management in global business environment Management in global business environment
Management in global business environment Introduction The main aim of the paper is to explain and analyze the international market to gain thevarious competitive advantages. Ford Company has been taken in the paper to outline andexplain the progress of the firm in the foreign market. Ford is an automobile company whichmaintains the fifth position in the global automobile industry. The effective innovation process isused and initiated by the firm to maintain a strong brand image globally. It is a top player in theglobal automotive sector which contributes to customer loyalty and product attractiveness.Furthermore, the paper explains challenges and barriers which are dealt by the firm whileoperating and managing business operations globally. It outlines how the company handles andmanages these challenges and issues to flourish business and to build a good image in rivalrymarket. Ford motor company is an American multinational automaker which was incorporated onJune 16, 1903. It’s headquarter is located in Dearborn, Michigan U.S. The firm sells commercialand automobiles vehicles under the Ford brand. It is the second biggest U.S based automakercompany and the fifth biggest organization in the world based on 2015 vehicle production.There are approx 201,000 employees employed in the organization. Ford is the fifth biggestautomaker company in Europe and eighth-ranked American based companies. Since Fordbeginning in 1903, it has become a pioneer in the global industry. The vision statement of thecompany is to work together as a global and lean enterprise for effective leadership. It will helpto generate more revenue and outputs in the organization. It is also trying to provide satisfactionto customers, dealers, suppliers, employees, and communities. The mission statement of thecompany is to offer various types of vehicles to customers for making a good image in thecompetitors market across the world (Ford, 2017). Also, it tries to improve and enhance businessperformance to achieve global leadership. The unique team of Ford creates inspired products andservices that help to make people lives well. In today’s era, the firm is exploring its businessactivities and operations globally. Competitors may influence the success and growth of the firmadversely. The competitors of Ford include general motor company, Toyota motor, Honda motorcompany, Daimler, Tesla motors and Spartan Motors. The firm should focus on the plans,policies, and strategies of the competitors to stay in the competitive market. The firm usesvarious promotional and advertisement strategies to overcome the competitors and to stand out2
Management in global business environment against the competitors in the global world. Ford motor company is one of the biggestautomotive manufactures in the world (Wilkins & Hill, 2011). Challenges in the organization In today’s competitive world, various challenges are faced by the company whileconducting business activities globally. A wide range of challenges and issues are affectingsuccess and growth of the firm. Current Ford’s automobile models are not as energy efficient andeffective, as they could affect the sustainability of the environment negatively. Along with this,global economic markets are performing well than the company had expected in prior planning.This poor and ineffective planning will affect needs, preferences and desires of consumersworldwide. Moreover, Ford’s market share in the foreign market is lower than desired, as it alsoaffects the profitability of the company (Esty & Winston, 2009). Additionally, the business planof the firm is not much effective in the market. Mechanical issues have been found in Fordmodels. Fuel efficiency is the biggest challenge for Ford motor company because fuel prices areso high thus it affects sales and revenue of the firm. In addition, the firm has recalled approx 4million vehicles for various reasons. Furthermore, innovation process is slow and vehicle cost ishigh in Ford compared to other brand. The oil prices fluctuate on regular basis (Pistoia, 2010). Along with this, Ford motor company uses several marketing channels such as TV,Radio, and other sources. It would be just a waste of time for consumers in the global market.There are various issues also existed in production line such as acceleration and safety issues thathave a direct impacted on the growth and expansion of the firm. Due to safety and quality issue,the company had to pay a large amount to the consumers as compensation who filed legal actionagainst Ford (Mallick, 2010). Therefore, the company recalled several vehicles of similar modeland exchanged their tires free of cost. Also, it affects the reputations and image of theorganization adversely. They lost their loyal and trustable customers. Furthermore, recall is doneby the firm to evaluate and adjust side curtain airbags as required. It also affects the goodwill ofthe organization adversely. Ford is not aware of any injuries and accidents related to airbagsissues. All these issues and challenges are being dealt by Ford motor company in theinternational market. All these challenges have a direct impacted on the strategies and position ofthe firm. Apart from this, various ethical and technical issues also have influenced their businessenvironment adversely from various ways (Johnson, 2010). The stakeholders and suppliers of3
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