Ford's Business Environment Analysis: Macro and Micro Factors Report

This report provides a comprehensive analysis of Ford's business environment, examining both macro and micro factors that influence its operations. It begins with an introduction to the business environment and its importance, followed by an overview of the positive and negative impacts of the...Read More

Business & the Business
Environment

Table of Content
• Introduction
• Positive and negative impacts the macro environment
• Internal and external analysis
• Strengths and weaknesses interrelate with external macro factors
• Conclusion
• References

Introduction
Business environment is he sum or total of all the external and
internal factors that directly influence the business work and
activities. It is very much crucial for an organisation to evaluate
both micro and macro factors. Respective PPT is based on the
Ford that uses micro and macro environmental factors before
build various strategies and tactics in order to remain competitive.

Positive and negative impacts the macro
environment
Macro environment is a board and wider set of economical situation.
This includes an influences that impact the overall business economy as
well as this environment can not be controlled through organisation as
this is very much large and unpredictable to control. It is essential to
analyse various external factors as it affects the FORD operations in
both manner positively and negatively.

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Political factors - This factor states that macro environment is affected
in both manner positively and negatively which has impacted on
organisation. As it provides different opportunities and facilities to run
their business in emerging market which is beneficial for organisation.
Where as in free trade agreement with European country many
processes to reduction in market demand so this can affect businesses.

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Economical factors - This influenced in both manner as dealing with
stable interest rate in European country, trading of luxury cars and
commercial vehicles are increasing in international market which helps
to make higher profits. On the other hand, due to slump the trade of
cars and other products may be limited which can reduce the market
share and image of company.

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Social factors - It is related with society where need are changing
continuously, important for businesses to focus on them that influenced
in both manner. This creates strength for organisation to introduce kind
of product which helps to become most commanded company. On the
other hand, number of competitors are increasing as they are also
focusing on needs of people that is increasing competition for
organisation.

Internal and external analysis
SWOT analysis is the tools which is helpful in finding as well as
examining internal and external aspects effectively and efficiently. So,
the organisation such as FORD use this to do analysis of internal and
external aspects that is strengths, weaknesses, opportunities and threats.

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• Strengths: As they are renowned entities and selling standard
quality of products so its brand value is $12.74 billion according to
statical data which states it has high value in greater market. Also,
this spend money on research and development which helps to
introduce from new products in cars by improving existing products.
• Weaknesses: FORD has weak foothold in which operation is
diversified in many geographical areas. Also, they have various
competitors so this reduce the sale of business organisation.

Strengths and weaknesses interrelate
with external macro factors
Both macro (political, economical, social and others) and micro
(Strengths, weakness etc) factors essentially effects how firms operates
and therefore, these has to be considered efficaciously before
developing any kinds of decisions as efficacious analysis will aids
FORD to acquire understanding related to environmental dynamic
nature. Therefore, interrelation are:

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External Macro Factors Interrelation
Political factors Strengths: Due to UK stable condition, expansion of business
into another marketplace.
Weaknesses: After Brexit, agreement of free trade have affected
profitability as well as sales.
Economical factors Strengths: FORD to sell its luxury vehicles easily as well as
gaining higher profitability.
Weaknesses: Maximisation into international slump of cars
numbers reduce profit.
Social factors Strengths: It launching various feature vehicles and cars.
Weaknesses: Frequent modification into customers requirements
and demands reduces sales.
Technological factors Strengths: Initiated producing eco friendly vehicles, driverless
cars.
Weaknesses: Needs large amount for the adaption of updated
technology

Conclusion
From the above PPT, it has been summarised that analysis of micro and
macro factors is very much potential in order to build strategies to
remain competitive in market. By using PESTEL and SWOT analysis
organisation can make important steps and their interrelationship helps
to reach at verified results to take prompt actions to remain
competitive.

References
• Charter, M., 2017. Greener marketing: A responsible approach to
business. Routledge.
• Couto, E. S., Lopes, F. C. and Sousa, R. D., 2015. Can IS/IT
governance contribute for business agility?.

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