Ford Motor Company: External Influences and Marketing Mix Analysis

This report provides a detailed analysis of Ford Motor Company, focusing on contemporary developments in business and management. The report begins with an introduction to contemporary developments and their importance for business success, followed by an examination of Ford Motor Company. Task 1 delves into the external influences on Ford, including a comprehensive PESTLE analysis of political, economic, social, technological, legal, and environmental factors. Task 2 explores the marketing communication mix and its impact on organizational policies and decision-making, evaluating Ford's response to the marketing mix and suggesting improvements. The report concludes with a summary of findings and insights into Ford's strategies for sustainable development and competitive advantage in a dynamic business environment. The report highlights Ford’s strategies to navigate challenges, adapt to changes, and maintain a strong market position.

Contemporary Developments in
Business and Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
External influences along with their importance for the organisation...................................3
TASK 2............................................................................................................................................7
1) Marketing communication mix and its effect on the policies and decision making in
organisation............................................................................................................................7
2) Evaluation of impact of an organisation's response to marketing mix..............................9
3) Improvement in the response for the organisation...........................................................11
CONCLUSION..............................................................................................................................11

INTRODUCTION
Development or evolution of a business under any business environment which is executing
its business in a dynamically changing environment is called contemporary development. It is
helpful for an organisation to continue their business successfully. It also helps business to cope
up with any changes happening in environment and adopting them according to requirements. It
also provides organisation with a competitive advantage and helps it to attain sustainable
development for longer period of time. In order to survive for longer period, it is required by an
organisation to adopt changes taking place in environment (Zunk and et. al., 2020). For the
following report Ford motor is chosen. It is an automobile manufacturer which was set up in
1903. It was founded by Henry Ford. It provides its product as well as services throughout the
world. In this report PESTLE analysis of Henry ford is conducted in order to analyse all the
external factors affecting functions and operations of business. Following report also put light on
marketing communication mix. There are also a number of improvement that company has taken
in order to sustain in market competition for longer period of time.
TASK 1
External influences along with their importance for the organisation
Ford motor company is an American reputed automotive manufacturer, which performs all
over the world by contributing customers with good range of cars from economies to racing.
It has been evaluated that; external business factors have great effect upon overall working of
this organisation. Since this organisation (Ford), is performing business among different nations
like United Kingdom, India, China and many more. It is recommended that company should
focus on modification in order to cut out all the risks in specified time frame.
On the other hand, factors which comes under external environment is not under the control
the company but simultaneously, it creates impact upon business organisation's functions or
operations at the same time like Ford Motor Company (Bybee, 2013). In present scenario,
external factors like political, economic, social, technological, legal and environmental majorly
impacts on business and functions of Ford Motor Company and those are mentioned below:
PESTLE analysis
Since, Ford Motor Company is trading its business over worldwide, therefore we can say
that organisation would administrate its overall performance level despite focusing on small

areas, then only Ford could expand its business among different nations. Regarding this, external
environment may involve huge opportunities but, at the same time it also consists of huge risk
factors. Ignoring this, proper analysis of external environment may inspire managers of a
business organisation like Ford Motor Company to pull out all the competitors in front.
On the other hand, threat can be figure out by managers which helps in making effective
plans along with policies by which business expansion can be done (Voronkova and et. al.,
2020). At present PESTLE analysis has being done below which will assist Ford and its
management to conduct all the risk, information and other stuff which presents different range of
macro environmental factors. A detail of PESTLE analysis is mentioned below:
Political Factor – Political factor may impact upon overall working of company
therefore it is regarded as crucial factor of external environment. Government federal laws, rules
and regulations comes under this factor which changes as per time and requirement; therefore,
this factor also dominate spending power of customers. Since Ford Motors trades over
worldwide therefore it is important to follow rules and regulations implemented by nation’s
government all over the world. Company’s majorly controls in Asian countries, where they get
high volume of sales, but due to pressure of domestic car companies Ford can sell specific
amount of car in other nations. To set a limit within sector, every nation’s government controls
both import and export of products and services of a company. This impacts upon profit scale of
Ford because they get bounded by limit to earn certain amount only. This factor is important as
government provides fair opportunities to every company to expand their company at
international level.
Economical Factor – Economic factors refers to a number of different of economic
margins which include interest rates, inflation rate, foreign exchange rate, custom duty and so on
on the goods and services which are delivered by a company. It is necessary for a business to
make sure that they are in analysing the economic factors of different markets in which they are
expanding their business. When taking Ford motors into consideration it is seen that the marginal
cost on the car consist of different market opportunities for the business. It is necessary in order
to attain good marketing position for the company within the market. The fluctuation in gross
domestic product as well as growth rate of various economy can have some effect on the
company (Vveinhardt and Ganusauskaitė, 2020). The rising prices of cars as well as the raw
materials which are used for their production is affecting Ford motor. Ford motors can look for

various solutions which will help them in acquiring good market position and investing in
innovation in order to become successful.
Social Factor - Factors refers to various cultures, dislikes, preferences as well as values
and believes of customer. It is often seen that the values and believes of customer has great
impact on the decision making and buying behaviour of the customer. It is necessary for
company to examine this and make the products and services as follows. In order to make the
cars which are preferred by customers Ford made various different type of cars for different type
of consumers. They provide effective training to their staff in order to make sure that they are
increasing the overall productivity of the organisation and also enhancing the customer service to
make sure that all the customers of the company are satisfied with the services.
Technological factors-Technological factors are considered as one of the most important
factors which affects the business from its external environment. It can be seen that the world is
going towards digitalisation and a number of companies have already made sure that all the
processes are digitalised. This helps business to grow and expand their business in the areas
unknown to them. It has been made possible due to high speed internet and advancement in
technology. Just like all other companies Ford had also taken this step-in order to grow (Keränen
and Liozu, 2020). Ford is using this scenario of business opportunity in order to expand its
business at an international level., Social media platforms which are a part of technological
advancement have helped Ford motors to communicate its product in the market throughout the
world. This have widely increased customer base for the company. Due to changing
technological advancement in the new innovations being launched in market Ford is facing
demand of hybrids. These hybrid stand for hybrids car. It includes artificial intelligence, and
other enhancement in different features of a vehicle. Ford motor vehicles have taken a further
step and invested approximately $1 billion in order to make their cars filled with these new
technologies such as automation. They came up with the car which do not even requires a driver.
Search technological advancement have been beneficial for company providing them
competitive advantage over their competitors in marketplace.
Legal factors- There are a number of rules and policies which are to be followed by every
company while operating in the market. Basically, the general rules introduced in this factor of
advertising standards, consumer rights, employees’ rights, employee’s well-being, health and
safety, product labelling and so on. When taking auto mobile industry in light there are a number

of factors which may affect business functions as well as operation when these policies are not
followed efficiently. In context of Ford motor company, there are a number of such factors
which lead to change in functions as well as operations on overall working of this business
organisation (Bainton and Jackson, 2020). This have led forward to face a number of issues
while developing its business. There are a number of safety measures which have to be taken by
Ford motors while production of its vehicles in order to make sure that health and safety of their
employs are taken care of. Following this policy is required a lot of input which include
financial inputs as well. This often leads to decrease in revenues of company as well as decrease
in productivity of the employs in a company. The company also has to follow advertising
standards or they may face lawsuits in future. Resolving these lawsuits often needs huge part of
companies profit which is a great loss for company. Ford has followed all these requirements and
constructed its business strategy is such a way that all the requirements of policies as well as
welfare of employees is well taken care of. It may definitely result in improved productivity of
the company in the future.
Environmental factors- Environmental factors are considered to be very crucial for any
business organisation. It is said that businesses need to take care of the environment and nature
they are working on. When taking Ford motors into context it is required by company to make
sure that their functions and operations do not harm environment. They have to undergo a lot of
surveillance in order to make sure that they do not release any pollutants in year, land as well as
water. It is also required to make sure that optimum utilisation of all the resources is being done.
Company needs to develop various strategies through which they can make sure that no harm is
done to environment. In this category Ford motors is working towards different models such as
electric and hybrid cars in order to make profits for them as well as take care of environment.
Company is already developing prototypes of these cars which will soon be tested in market and
then launched if the results of prototypes in the market is positive.
TASK 2
1) Marketing communication mix and its effect on the policies and decision making in
organisation
Marketing communication mix

Marketing communication mix is one of the most crucial approach which company needs to
follow in order to promote its products as well as services in market and target customers in
segmented markets. Marketing mix consist of two distinctive factors which include
communication mix as well as marketing (Guliyeva, 2020). Taking Ford motors into context
there are a number of elements which company use in their marketing mix such as sales
promotion, print advertisement, media, event sponsorship, advertising and so on. These are
various methods used by companies in order to communicate their products to market and their
potential customers. Is required by a company to choose amongst the various options and
consider which is best for their company. These elements are very crucial as they have impacted
all policies and decision-making as well as financial status of a firm. Below mentioned are some
of these elements used by Ford motors:
Advertising- This is the most common tool which is used by every business organization in
order to promote and communicate their products as well as services in the target market.
Advertising contains a number of media tools in it to perform its duty which are newspaper,
online websites, social media, television, radio and many more. When taking Ford motors into
consideration it is seen that major part of advertising for the company is done through social
media platforms. The benefit of this platform to company is that it communicates huge number
of customers with small efforts.It can also very deeply define all the features in products of the
company. Human resource as well as management of company are crucial elements in
developing search advertising campaigns of Ford. Ford is using this tool in order to spread
information about its business as well as awareness about the offerings of the company to its
customers.
Public relations- Public relation is another such tool which helps the company to market its
products to its customers also allowing company to expand its business in the international
market. This is connected to newspapers, social media and so on it gives direct aid to
communicating customers about products more efficiently and effectively. It is the most
influential way of communicating a product. It is highly effective when used wisely. There are a
number of examples through which Ford does this practice in its organization. Some of them are
the HR policies for its organization such as providing training and development to the replies
regularly which is very beneficial for growth of firm. When customers come to know about this

policy of Ford it brings a positive image of company in the mind of customers. It is very
necessary to have a good management structure in order to develop public relations.
Personal selling- Personal selling is another advertising tool for communicating tool which
is used by companies in order to directly target their customers. It is important that proper
attention is paid to every customer arriving to you. Ford motors pays extra attention in order to
make sure that all the demands and needs of its customers are fulfilled and they are well taken
care of. In order to make sure this step is effectively carried on managers at Ford train their
employees in such a way. Employees are provided with enough information about products and
services so that they can effectively communicate with customers.
Direct Marketing- Direct marketing can be connected to telephonic marketing, online
marketing or direct mail. It has a great impact upon customers taste and preferences in positive
as well as negative manner (Pisani and Perez, 2020). Management at Ford motors uses messages
or direct mails in order to attract the customers and also built a good relationship with these new
customers. The target market for this process is the range of customers who are selected by
employees from a vision to be their potential customers.
Sales Promotion- it is considered as one of the most powerful tools in marketing mix which
contains of both sales as well as promotional tool it the same time. It is used by Ford motors
effectively and efficiently. In this tool company needs to make sure that the awareness about the
product and services are still in market to all their potential customers in a given timeframe. Ford
have issued a number of loyalty cards and rewards for their customers. It has been done for their
old clients as well as potential clients it always have a positive effect on revenues of company.
Event Sponsorship- with the help of this tool company can attract a number of customers
with an offering for a small period of time. There are various examples where Ford has
conducted this method. Company is organising a number of events for launching its new cars and
services. This has helped Ford to build positive image in the minds of customers in a given time
period which is usually very small.
2) Evaluation of impact of an organisation's response to marketing mix
In today’s market scenario it is seen that every business organization uses a number of
methods of communication in order to increase buying behavior of the consumers. The concept
of marketing as well as communication mix is very wide which is supports a number of
companies and help them to influence their customers to buy the products. Application of a

proper mix in an organisation helps to deter mine the requirements as well as desires of customer
and also helps in delivering goods and services as per their specific requirement in the given
timeframe. There are a number of benefits of using this concept in a business which are
mentioned below:
 Helps internal management- It is a very wide concept with support and aid internal
managers in order to analyse market preferences and trends of customers so that they can be
attracted to words the products. It is used by managers to build up a proper advertising
campaign which will have effects on mind of most of the population. Customers these days
are very well equipped with ways to research about particular goods as well as services.
Because duty of manager to look for the unrecognized needs of customers. In context of food
manager uses concept of advertisement in order to feature their new products in the global
market. This helps in increasing revenues as well as profit for company (Kapp, 2020).
 Helps to modify marketing policies- Another benefit provided by marketing communication
mix is that it enables managers to form strategies. Policies can only be formed after proper
recognition of customers their needs as well as desires. The price expectancy of customer for
a product is also a major point acknowledged here. Managers at Ford motors identify the
middle-class families who have a limited budget and still want a car which is upgraded and
features. In order to satisfy these customers companies, come up with payment policies such
as EMI is in order to reduce the burden on customer. This will help company to provide aid
to customer and also help them to make its policies.
 Event sponsorship encouragement- Companies uses event management position in order to
promote their products to the actual customers. When taking Ford into context it is seen that
marketing managers identify their potential customers and put all their efforts towards them.
Various events are managed and reviews from customers are collected in order to make any
modification in the products and services provided by company. This is a very profitable
method for company which effectively helps it to expand its business in global market and
influence as many customers as it can.
 Personal selling- Through the help of this method company markets its products to specific
customers. Ford motors have been successful in developing an effective direct salute Lee
which helps in promoting their products to the specific target customers who are definitely
going to use their products.

These are all those benefits which helps the company to improve its business structure
however along with all these benefits marketing communications mix also brings along a
number of drawbacks. Below mentioned are drawbacks of marketing mix.
 Marketing mix is a very wide concept and in order to optimum utilisation of this policy there
is a lot of time and effort required. The time in effort is devoted towards the framing
powerful policies for the company also adding extra features in their products and services.
All these alterations we require a lot of thought and also impact decision-making process in a
negative manner
 The basic objective behind marketing mix is providing the customers with their needs, while
doing so managers usually take close decisions and do not consider any other areas of
business while fulfilling these needs of customers (Shetty, 2020)
 This may have great impact on revenues of the company. Ford motors or face this problem as
revenues of its business have decreased leading to overtime work given to employees and
increase in employee turnover rate can be seen.
 All the concepts of marketing communication mix use customers feedback as well as their
wishes in order to increase revenues and improve profits for the firm. However, the fact is
overlooked that basic idea behind marketing mix is using various promoting features and
making customer aware about the product. This is the reason why clashes between customer
expectation and value provided by company may arise. Managers at Ford motors are
continuously bringing in new products for their customers and focusing less on actually
communicating their existing products to customer.
3) Improvement in the response for the organisation
It can be seen that there are a number of improvements seen in company with respect to
implementation of proper communication mix. All this improvement in Ford are mentioned
below:
 With the help of a proper communication mix, managers have been able to attract customers
by delivering them with goods as well as services which they want. Company has been able
to derive the needs and wants of customer. Managers at Ford motors have now started
collecting feedback from its customers in order to make sure that they enhance their future
services. They try to provide maximum customer satisfaction (Pop, 2020).

 Communication mix have also helped managers at food to decrease the overall time required
for production as Willis cost. It has also helped in hiring better skilled employees who bring
maximum productivity to company increasing its revenues and bringing maximum customer
satisfaction.
 Ford motors is dealing overseas in the global market. Communication mix have helped them
to develop the policies in order to make sure that working in oversee market does not have
any barrier and proper business operations are followed there as well.
 They have also started using a number of social media platforms which is in trend these days.
It has effectively enhanced customer base of company making it reach to a number of
customers through these platforms (Sigué, ed., 2020).
CONCLUSION
Taking the help of above-mentioned report, it can be clearly seen that macro
environmental factors majorly affect business operations of any business. These factors include
elements such as political, economic, social, technological, legal and environmental factors.
Apart from this it can also be said that in order to manage and control of business and the
products and services by it there are a number of marketing as well as communication tools
present in market. Every business organisation needs to make optimum utilisation of these tools
in order to make sure they do not face any losses in future and their product is accepted by
customers and society at large.

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