Contemporary Development in Business and Management at Ford Motors

This report provides a comprehensive analysis of Ford Motors' business and management practices. It begins with an introduction to the company and its context, followed by an appraisal of frameworks affecting organizational decisions, including micro and macro factors such as customers, competitors, suppliers, PESTLE analysis (Political, Economic, Social, Technological, Legal, and Environmental factors). The report then evaluates Ford's responses to various global forces, with a focus on corporate social responsibility and sustainability. The analysis covers the relevance of these factors to the organization's decision-making processes and policies, evaluating the effectiveness of the responses and identifying areas for improvement. The report concludes with a summary of findings and recommendations for Ford Motors, highlighting the importance of adapting to a dynamic business environment.

Contemporary
Development in
Business and
Management
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
Critically appraise various frameworks which affect organisational decisions...............................4
TASK 2............................................................................................................................................9
Evaluate Organisational response to various global forces.............................................................9
Relevance to organisation and its influence on decision making and policies of the
organisation.................................................................................................................................9
Evaluation of effectiveness of organisational response: ..........................................................10
Areas of improvement with response to organisation: .............................................................11
CONCLUSION..............................................................................................................................13
REFERNCE...................................................................................................................................14

INTRODUCTION
There are many development which take place in business and management which posses
a impact on overall functioning of business. There is a requirement to make a analysis of various
factors which are having effect on all business operations. Ford of Britain has been chosen as
base company in this report which is a major manufacturing brand of UK. This is a subsidiary of
Ford Motor Company and its business was stared in the year 1909 and has its registered office in
Brentwood, Essex (Carey and Tanewski, 2016) . This report is based on various factors which
includes aspects such as framework which is having impact on organisational decisions, response
of a organisation on global forces, application of different theoretical concepts and application on
practical business situation and lastly there has been a discussion made on various factors which
posses a influence on performance of a business organisation in international markets. Corporate
social responsibility is chosen as a framework which is further analysed from point of Ford
Motors.
TASK 1
Critically appraise various frameworks which affect organisational decisions
External environment of a business comprises of both internal and external factors .
Which consists of various factors which have a similar effect on all firms functioning in a
industry. This comprise of micro and macro factors.
Micro factors: These factors are relate to immediate periphery of a organisation and this
has a direct influence on organisation on a regular basis (Fischer, 2015). This is also regarded as
the task environment. It is very necessary for organisation so that they are able to monitor &
analyse all the elements of micro environment this includes competitors, customers, organisation,
market, suppliers and intermediaries are part of micro environment of a business. These factors
in concern with Ford is discussed below:
 Customers: Customers are one of major stakeholders in a organisation who are
responsible for increasing sales of the organisation (Flammer, 2015). For becoming
successful it is necessary that business has to keep a close watch on consumers and
customers. Sales of a company is always depend on their customers. This is major reason
why organisation focus on increasing the satisfaction level of their customers. There are

effort made to ensure that there is regular monitoring of customer attitude and their
satisfaction level. With reference to Ford, they have top priority for the interest of their
stakeholders group. Customers help in having best innovation in terms of quality, safety
and fuel (Flammer, 201). Also, this brand has a smart mobility all this has lead to
increasing the satisfaction level of their customers.
 Competitors: This factor is associated with various similar brands which are operating in
the industry and having a equal goodwill and reputation. Such type of companies pose a
threat for organisations and can impact their sales in a negative manner . In Concern with
Ford, this company has a competitive advantage as they are able to survive in the
scenario of high competition because high quality products which they are able to
provide in their products. They have successfully build up customers trust with time and
this has lead to Ford giving a stiff competition to another brands.
 Suppliers: Suppliers are again one of very important stakeholder of every organisation.
They are ones who are responsible for smooth running of overall production process of a
organisation (Gerasimov and Gerasimov, , 2015). It is very important to maintain timely
supply of raw materials so that they are able to maintain relation with their suppliers.
Ford has made efforts to maintain long term relation with their suppliers which will help
them in effective implementation of cost effective strategies . This will also lead to
advantage of cost and increase in profit margins. Which will help in adoption of
economies of scale for a long term period for Ford.
 Employees: Employees are second level in priority for every organisation. They are
having a very significant place as they influence overall production capacity of a
business. If there is a slight decline in production capacity of business this is linked with
performance of employees in the company . Ford has made initiatives related top
corporate social responsibility such as they have a sustainable workforce, there is online
training which is provided to their employees. They have also started various programs of
global learning & development which offers continuous education with help of classroom
and various online courses which helps in maximization of employee performance. in
ensuring all round development of their employees. This ensures that there is individual
development of a employee which is very useful for them from future prospect.

 Intermediaries: These sorts of intermediaries also known as distribution intermediaries.
In context with Ford, these sorts of intermediaries are adopted by product manufacturing
manager in order to promote, sell and distribution of goods to the final consumers.
Intermediaries always comes in so many forms like marketing agencies, agents,
distribution firms and retailers as well ). Herein, marketing agencies and agents always
cope up with product promotion by which they can give final product to consumers.
Therefore, it is necessary for manager to follow these intermediaries by which functions
of Ford organisation can be influenced positively and make firms attractive in front of
their customers (Harjoto, Laksmana and Lee, 2015).
 Market: The other major factor which impacts on the overall decision taken by higher
authorities of an organisation. Change in the market trends directly changes the behaviour
of customers towards a product or service (Hope Sr, 2016). In order to cope up with the
market trends and to sustain at market place, it is necessary for senior management to
change promotional strategies of company. With reference to Ford Motors, customer
prefer to purchase those vehicles which dis not harm environment so it is necessary for
company to develop eco friendly vehicles that leads to raise in their sales & profit level.

Macro factors: These are the factors which are part of external environment of business and
they have a impact on business organisations.
There are many external factors which posses a impact on organisation and each factors
has its own importance which can be explained as below:
PESTLE analysis is used as a tool for making a detailed analysis of external forces
which is impacting a business organisation (Hui, 2019). This analysis helps a company in
formation of various strategies related with challenges which organisation are facing. There are
many factors which are part of external environment. There are certain factors which are part of
this framework and is explained below:
 Political Factor: This is a factor which includes governmental and political factors of
UK, which are posing impact on strategies and decisions of a organisation.
Positive: There is a Positive impact of this factor that is Government of UK is supporting
technological innovations and there are increasing trade agreement which is leading to expansion
opportunity for Ford and other companies which are part of automotive industry.
Negative: There is a negative impact of political factors such as there are many
restriction which are impose as manufacturing process of such Companies is quite complex and
lot of regulations are imposed which leads to large number of regulations.
 Economic Factor: This factor is having relation with various economic factors which are
flourishing in the external environment (Kurtz and Berston, 2019). This includes Factors
such as growth of a economy, growth rate in developing markets etc.
Positive: When a economy is at a growth stage there is automatic growth of a company.
Ford has a opportunity to expand themselves as UK economy is one of strongest economies
which has a high potential for development.
Negative: Economy of a country is always fluctuating and factors associated with it also
keeps changing this imposes a negative impact on profit margin of Ford.
 Social Factor: This factor has a relation with various factors which are part of social
economy and includes socio cultural trends which are part of consumer behaviour such as
there can be increase in gap between rich and poor. Which leads to impact on purchasing
power of consumers.

Positive: There is a need for continuous innovation tpo be done by a company so that
they can retain their customers for a longer duration of time and prevent them from switching to
any other brand.
Negative: If there are any changes which are part of sociocultural trends and they affect
the overall policies and framework which impact functioning of Ford (Kuznetsova and Markova,
2017).
 Technological Factor: This is a factor which is related with potential of development
related with external environment of a business.
Positive: There are many technological, innovations which are taking place such as there
have been taking place in the external environment and this includes mobile computing
technology which is creating more opportunities for Ford.
Negative: There is a very limited network of alternative station of fuel which is leading
which is a threat for Companies functioning in the automotive industry.
 Legal factor: This factor which is in concern with legal regulation and laws which have
to be compulsorily followed by every country compulsorily.
Positive: There are many environmental protection regulations which lead to more
customer trust on a particular brand (Lipiäinen, 201). For Ford, there has been all regulation and
measures which have been adopted by this brand which has helped them in building of goodwill
in for their target segment of customers.
Negative: There is a negative impact on sustainability of business as there is great impact
in the company many times lot of rules affect the employees and organisation. There are
situations of union pressure and strikes which can take place in Ford.
 Environmental Factor: This is a factor which is in concern with external environment
that is external environment in which all business are functioning. These factors are
highly influenced because of operations of a company. All organization especially those
who are involved in manufacturing procedure have to carefully consider concern for
environment.
Positive: The environmental factors affects positively on the working of an organisation.
It build positive reputation of company within the market due to which an entity have the
opportunity to enhance their market share high. In addition to this, electric vehicles of Ford

Motors impacts positively on customer which leads to enhancement of sales and their
profitability level.
Negative: Environment factors also have negative impact on the functioning of business
activities (McWilliams, 2015). In order to cope up with the changes take place in environment,
an organisation need to spent amount due to which the cost increases and the profitability level
declines.
TASK 2
Evaluate Organisational response to various global forces
Corporate social Responsibility & sustainability: CSR is a concept which is used as a
self regulating business model which helps in company to become socially accountable to
themselves, their all stakeholders and public. This is a practise which is also referred as corporate
citizenship sometimes and they have impact on all aspects such as economic, society,
environmental and social (Rejnuš, 2015). This is a way which is helping in enhancing
environment and the society by making a positive contribution towards them. In this concept a
business can boost its brand value by making of positive contribution towards society and people
living in society. This concept is useful top both company and consumers, this is a great way in
raising morale of employees.
Sustainability is also a goal in case of Corporate social responsibility in organisations as
they help in a there are many actions which are in support tpo individuals, communities and
business environment. All these have to be successfully implemented in the organisation for
having a competitive advantage, there is a need for adoption of best practises of Corporate social
responsibility.
Relevance to organisation and its influence on decision making and policies of the organisation
Ford motors is a brand which is a leading brand in the car market across UK. This
company has able to successfully establish a different image in various aspects of management.
They have been taken lot of efforts in presenting themselves as a leader is adoption of practises
related with Corporate social responsibility (Rotich, 2015). This has played a very significant
part in making its employees realize their all over rights. CSR is a concept which has enables in
safeguarding of human rights of employees and protecting them from abuse. This concept has

also helped in ensuring that they are satisfied enough to deliver best efforts towards performing
their respective job.
Influence on decision making: All the aspects and function of a business posses a impact
on implementation of CSR activities in a organisation. As, CSR initiatives are a logical process
which is having a particular structure (Schaltegger, and Burritt, 2017). This has to be considered
in all functions of the organisation as it is their responsibility to give back to society as society is
also providing them with all the resources to establish their manufacturing process.
Managers in Ford are focussing on their approaches towards CSR practises. There has
been mandatory for organisations which are involved in manufacturing activities to adopt CSR
practises in their overall functioning. These practise are used by Ford in attracting employees and
retaining them for a longer duration of time . This also leads to transparency in overall practises
in the organisation. With implementation of CSR practises there has been a satisfied and happy
workforce in Ford. With CSR initiatives there is more investment which is made on training and
development of employees.
Evaluation of effectiveness of organisational response:
The stakeholders of Ford are addressed with help of different corporate social
responsibility initiatives. There are basically four type of stakeholders that get affected by the
CSR initiatives such as customers, investors, employees & communities. The CSR initiatives of
Ford are mentioned below -
Customers – Ford is an organisation which provides priority to customers when it comes
to stakeholders. The overall interest of stakeholder group is high. These are important
stakeholders as they help in determination of overall revenue of company. The CSR efforts for
customer group includes ford smart mobility, product innovation and ford driving skills for
their life program (Tambi, 2016). Ford company provides products to customers by continuously
improving them. The vehicles provided by this company are of good quality, have fuel economy
& have safety for maximising satisfaction for customers as their stakeholders.
Employees – The CSR initiative of Ford includes sustainable working force, product
availability online global learning, training & development and global leadership development
program. This company has adopted it's workplace safety policies with time for protecting
employees and ensuring regulatory compliance. This company has introduced new safety
standards across globe which have minimised workplace injuries by more than 90%. Ford has

development programs and global leadership and these programs defines CSR and dedications of
this company for supporting interest of employees.
Investors - Investors of this company are responsible for maximising the profit earned by
the company. These are important stakeholders and for these capital of the company is important
factor. The One ford plan helps in minimising costs & maximising profit of the company. This is
part of Ford's CSR strategy for improving performance of the company.
Communities - There are number of CSR programs for various external communities
and all their stakeholders. The main interest of this stakeholder group consists of support for
community development and environmental conservation. These are important stakeholders and
can affect the perceptions of customers Ford (Wilkinson, Redman,and Dundon,, 2017). This
company provides different types of sustainability training to the suppliers for improving the
sustainability performance. The Ford organization Fund & community services is basically a the
non profit organisation for different philanthropic efforts for communities.
Partners: Ford is a brand which is providing best quality services to their customers and
all their business partners. They have provided assurance to their customers with accreditations
like ISO 9001:2015 in context of quality management. They have successfully maintain
commitment towards assessment, certification and work so that they are having continuous
improvement practises. This leads to quality assurance to their customers.
Environment: Ford has make attempts to reduce wastage which includes water, energy
and materials. With help of working practises Ford is making efforts to reduce landfill wastage to
minimum. They are using updated technology so that waste can be decreased and maximum
effectiveness can be there is whole production process. ITAD management service is sued by
Ford in disposing technology in a more ethical and responsible way.
It has been concluded that Ford has superior corporate social responsibility performance.
This company has major programs and strategies for addressing interests of stakeholders. This
company CSR initiative i.e. One Ford Plan has helped in improving performance of this
company in the year 2008. Organisations essentially have focus on cost minimisation and
product development in CSR efforts. This can be explained by an example – hybrid, more fuel
efficient, affordable vehicles can enhance customer satisfaction and performance of the company
is also enhanced.

Areas of improvement with response to organisation:
Ford motors is a brand which is already involved in CSR practises as they are highly
committed towards all their stakeholder. They have taken responsibility for environment and
social impacts of their business to whole society and to a individual.
There is a high requirement that Ford is able to have a highly committed workforce in
their organisation. For this Ford must provide more opportunities for growth to their employees,
a positive working environment, timely increments all these are part of their CSR practises in
their organisation.
Ford is a brand which has made all efforts to successfully follow and implement all
practises related with CSR in their organisation. Many business in UK are now obliged to to
report on various issues (Saebi and Foss, 2015). Greenhouse gases has been a major issue which
has been raised by UK government. Hence, there is a requirement on part of Ford that they have
to follow such as there is always a need for continuous evaluation of production process of
business and their overall plan. Continuous checking has to be done by concerned authorities that
they have to continuously monitor all the practises related with harmful emission of gases which
are harmful for the environment.
Ethical Corporate social Responsibility
This is related with having focus on all the stakeholder of business. Ford has to make sure
that they are having continuous fair treatment of all their stakeholders from all employees to
customers. Ethical responsibilities are related with initiatives which a company takes to be
morally right rather than because of obligations.
Supply chain process: This is concern with overall network of supply chain which is used
by Ford in their company. There is a requirement of shared commitment of suppliers, retailers
and manufactures. These all are components of a effective network of supply chain. There is a
requirement of collaboration in the automotive industry, which can be established with the help
of effectiveness in overall process of supply chain in their organisation.
For keeping themselves updated with technology there is a requirement for Ford to keep
their suppliers who belong to Tier 1 top have direct channel with Tier 2 suppliers. This will help
them in investing in a supply chain system which is web based. This will help in investing in
latest technology and also allowing tier 2 suppliers in having access to system production
progress.

There must be adequate alignment of product development with purchasing department
which will help in management of cost as there will be increase in efficiency in the overall
system (Shirokovа, Bogatyreva and Beliaeva, 2015). There is a aspect of concept of CSR
practises that customers must be offered products at worth its prices. This will help in increasing
their level of satisfaction. There can be a use of outsourcing to their party for forecasting of
consumer demands which can help dealers in Ford to work cover their presence across all parts
of globe.