Ford Motor Company: Challenges and Strategies in Global Business

This report analyzes Ford Motor Company's global business operations, focusing on its strategies, challenges, and competitive advantages in the international automotive market. It examines Ford's market position, vision, and mission, highlighting the company's innovative approaches. The report identifies key challenges, including competition, economic factors, fuel efficiency, and recalls, while also exploring opportunities for growth. It suggests strategies to overcome these challenges, such as building brand loyalty, forming partnerships, and utilizing innovative technologies. Furthermore, the report includes a SWOT analysis to assess Ford's strengths, weaknesses, opportunities, and threats, and concludes with recommendations for future success in the global market. The report emphasizes the importance of adapting to market changes and implementing effective supply chain management to achieve sustainable growth and maintain a competitive edge.

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 the
various competitive advantages. Ford Company has been taken in the paper to outline and
explain the progress of the firm in the foreign market. Ford is an automobile company which
maintains the fifth position in the global automobile industry. The effective innovation process is
used and initiated by the firm to maintain a strong brand image globally. It is a top player in the
global automotive sector which contributes to customer loyalty and product attractiveness.
Furthermore, the paper explains challenges and barriers which are dealt by the firm while
operating and managing business operations globally. It outlines how the company handles and
manages these challenges and issues to flourish business and to build a good image in rivalry
market.
Ford motor company is an American multinational automaker which was incorporated on
June 16, 1903. It’s headquarter is located in Dearborn, Michigan U.S. The firm sells commercial
and automobiles vehicles under the Ford brand. It is the second biggest U.S based automaker
company 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 biggest
automaker company in Europe and eighth-ranked American based companies. Since Ford
beginning in 1903, it has become a pioneer in the global industry. The vision statement of the
company is to work together as a global and lean enterprise for effective leadership. It will help
to generate more revenue and outputs in the organization. It is also trying to provide satisfaction
to customers, dealers, suppliers, employees, and communities. The mission statement of the
company is to offer various types of vehicles to customers for making a good image in the
competitors market across the world (Ford, 2017). Also, it tries to improve and enhance business
performance to achieve global leadership. The unique team of Ford creates inspired products and
services that help to make people lives well. In today’s era, the firm is exploring its business
activities and operations globally. Competitors may influence the success and growth of the firm
adversely. The competitors of Ford include general motor company, Toyota motor, Honda motor
company, 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 uses
various promotional and advertisement strategies to overcome the competitors and to stand out
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Management in global business environment
against the competitors in the global world. Ford motor company is one of the biggest
automotive manufactures in the world (Wilkins & Hill, 2011).
Challenges in the organization
In today’s competitive world, various challenges are faced by the company while
conducting business activities globally. A wide range of challenges and issues are affecting
success and growth of the firm. Current Ford’s automobile models are not as energy efficient and
effective, 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 consumers
worldwide. Moreover, Ford’s market share in the foreign market is lower than desired, as it also
affects the profitability of the company (Esty & Winston, 2009). Additionally, the business plan
of the firm is not much effective in the market. Mechanical issues have been found in Ford
models. Fuel efficiency is the biggest challenge for Ford motor company because fuel prices are
so high thus it affects sales and revenue of the firm. In addition, the firm has recalled approx 4
million vehicles for various reasons. Furthermore, innovation process is slow and vehicle cost is
high 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 that
have 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 action
against Ford (Mallick, 2010). Therefore, the company recalled several vehicles of similar model
and exchanged their tires free of cost. Also, it affects the reputations and image of the
organization adversely. They lost their loyal and trustable customers. Furthermore, recall is done
by the firm to evaluate and adjust side curtain airbags as required. It also affects the goodwill of
the organization adversely. Ford is not aware of any injuries and accidents related to airbags
issues. All these issues and challenges are being dealt by Ford motor company in the
international market. All these challenges have a direct impacted on the strategies and position of
the firm. Apart from this, various ethical and technical issues also have influenced their business
environment adversely from various ways (Johnson, 2010). The stakeholders and suppliers of
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Management in global business environment
Ford were also affected by the company acceleration problem. In addition, the organization has
not been able to solve the issues and problems of the customers; they hesitated and avoided the
issues of consumers. As a result, customers are losing their lives in various injuries and
accidents. These are the biggest issues for the company which could have a negative impact on
the productivity and outcomes of the organization. Rising gas prices also affect the fuel
efficiency of the company. Due to poor business model, Ford has not been able to maintain
sustainability in the workplace as well as a marketplace (Lubin & Esty, 2010). Additionally,
supply chain management of the company is not effective and attractive thus, the managers have
not been able to maintain an optimum level of inventory within the organization. Furthermore,
managers and top management are not able to maintain proper communication and cooperation
with suppliers in the market. Globalization in the supply chain is a major concern which could
affect the quality of vehicles in the competitive market. It will also influence the growth and
progress of the organization if Ford explores and conducts its trading activities in the
international market (Wee & Wu, 2009).
Suggestion to address these challenges
Ford should address all these challenges and issues to maintain a good image and to
fulfill its mission and vision. The company needs to develop and build brand loyalty and
consumer acquisitions by addressing changing needs of stakeholders and consumers. It will also
help to eliminate and reduce the challenges which could directly affect the strategies and policies
of the company. It is recommended that the firm should begin a public relation campaign which
is monitored on educating consumers about the current status of the automotive sector.
Moreover, the organization should focus on the production process to beat the competitors in an
effective way (Wee & Wu, 2009). Qualified and experienced workers shall be appointed for
different positions at public relations departments and research and development department in
the organization. This step can be considered successful force which will help to maximize
production of the association. To overcome various challenges, Ford must start to build and
develop healthy partnerships and relationships with leading energy firms. By generating
cooperative research and development facilities, the company has been able to reduce
accelerated rates in the international market. The organization should gain a cooperative
relationship with the majority of leading engineering and energy firms. With effective
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Management in global business environment
cooperation and communication, Ford has been able to gain a competitive edge against rivalries
in the world.
Along with this, Ford should use innovative and advanced technologies to increase the
number of customers and to maintain sustainability in the workplace. Effective strategies and
approaches shall be initiated and used by the company to explore and expand the trading
activities and operations globally (Christensen, 2013). Also, the organization should expand its
production network to maximize economies of scale which can help to reduce prices and costs to
make Ford motor company more attractive and effective. It will help to eliminate the barriers and
hurdles of the market (Denton, 2016). Moreover, the association should focus on the strategies,
plans, and approaches of the competitors to make a good financial image in the minds of
consumers worldwide. The prices of vehicles should be appropriate to gain competitive
advantages in the market. Ford motor company must differentiate its products from competitor’s
products and services. It should also monitor and identify the strengths and weaknesses of the
competitors to maximize outputs and returns globally (David, 2011). If the firm operates and
manages its activities and operations in global market then the managers should provide cross-
cultural training to employees to understand culture and environment of the foreign market. It
also will help to generate more and more revenue and outcomes in the international market. The
external analysis must be done by Ford to evaluate and identify the growth opportunities in other
countries. Also, it will help to create a attractive and effective goodwill in the foreign market
(Dutta, 2017).
Apart from this, growth level strategies and corporate level strategies shall be used to
increase the growth rate of the firm. In this way, the company can gain rivalry benefits in the
international market. Dynamic and effective supply chain management should be used by Ford in
order to maintain coordination among suppliers, retailers, customers, and distributors. Also,
supply chain managers should provide right and appropriate information to clients to increase the
sale of the company (Hugos, 2011). In this way, the firm can attain desired goals and objectives
and it also helps to conduct business activities globally. Segmentation, targeting and positioning
strategies shall be used to reach its target audience in the world. Various promotional strategies
shall be adopted to promote and encourage its vehicles and services in the world. All these
suggestions will help to grow and explore its business globally (Emadi, 2017). SWOT analysis,
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Management in global business environment
porter five forces analysis, and Pestle analysis must be done by Ford to analyze and evaluate the
challenges and opportunities of the market as well as competitors (Christine, 2017). The SWOT
analysis has been stated below.
Strengths Weaknesses
 Ford is one of the older care
manufacturers in the market.
 The company provides a variety of cars
to different consumers in the overall
world.
 It provides products in several features
by taking consideration of the target
audience.
 Apart from cars, the firm also produces
trucks, tractors, buses etc.
 High and intense competition exists in
the competitive market.
 Poor reputation in the market and
heavy dependence on Europe and U.S
auto markets. As a result, it will affect
sales and growth of the firm.
 In addition, poor and ineffective
reputation with investors which can
also influence the firm’s ability to raise
capital in the rivalry market.
Opportunities Threats
 Growing automobile industry can be
tapped in the overall world by Ford.
 Due to the expansion of consumer base,
the company is trying to improve the
business scenario.
 Increasing level of e-commerce can
become a good source to gain success
and growth in the world. It will also
help to increase the demand for light
commercial vehicles.
 Competition from various international
leaders can decrease Ford’s market
share.
 Production issue is also a major threat
to the organization. Being a global
brand, it is influenced by global
economic crisis and recession.
 Increasing fuel cost can also become
the biggest threat to the organization.
 Various threats related to
environmental regulations being faced
by Ford in the market.
All these recommendations help to increase and improve the scope of its production network in
the market. It will also help to overcome the aggressive competition in the universal market.
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Management in global business environment
Conclusion
On the above-mentioned study, it can be concluded that marketing audit is essential to
enter in the foreign market. Ford motor company has been selected for the task to analyze and
explain the trading activities in the international market. Ford is largest automobile producers
across the world. The firm sells its products globally to attract more consumers in the global
world. Young executives, small families, and businessmen are main and primary target group of
the company. Various challenges and hurdles also being faced by the organization while
conducting its activities and operations in the international market. At the end, some
recommendations have been given to improve and overcome the challenges and issues
worldwide.
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Management in global business environment
References
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Management in global business environment
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