Research & Analysis of Ford Motor Company's Business Strategies

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FINAL PROJECT-RESEARCH & ANALYSIS PAPER – PART II 1
Final Project-Research & Analysis Paper – Part II
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FINAL PROJECT-RESEARCH & ANALYSIS PAPER – PART II 2
Summary
The report will be based on the outcome taken from the previous research paper keeping
in mind effective strategies adopted by the organisation and output of the same on the
development of the organization. The report will be studying the micro and macro environmental
constraints on the development of business strategies. The organization that will be analyzed in
the research is Ford Motor Company of Canada, which was established in 1904 by MR. Henry
Ford. The company’s primary focus is to deliver authentic and customer friendly cars which are
evolving in recent years. A significant product that has been made by the company includes
SUVs, Trucks, Hybrids, commercial vehicles, fleet vehicles, etc. The mission of Ford is to
sustain the heritage of Canada and develop a workforce talented enough to develop business
opportunities and a healthy future of Canada (Ford, 2019).
The research will be depicting my understanding of the strategies of the company and
what qualities I have learned in operation and structuring of the organization. In the study, I will
adapt SWOT analysis to determine the internal structure of the organization and will also use
PESTLE analysis to determine the practical impact of the macro environment. I will be studying
the company strategies and core values and the understanding I can gather for future work
process.
SWOT Analysis
The primary analysis and learning aspect can be determined by studying the internal
features of Ford Motor Company, and this can be seen as:
Strength:

FINAL PROJECT-RESEARCH & ANALYSIS PAPER – PART II 3
As the company has good demand in the market and customer satisfaction level is also
high the company can focus more on innovation and creative development of tools and
techniques to sustain the value in the market. moreover, the company can invest the finance in
subsidiaries and also develop associate business structures as well. This can help the company to
develop long term business ventures.
Weakness:
The company is needed to make a vigorous and robust marketing strategy to deal with the
sales and branding issues in the market. The focus should be on the overseas market value and
market expansion to deal with the demands in the overseas market. The company should take
customer feedback seriously and give tailored services to customers.
Opportunity:
The company should focus on developing countries like China, Mexico, and India and
focus more on the innovation that leads to eco-friendly and fuel saving vehicles that can help the
company to make a different position in the market. They should capture small scale industries
and associate them to provide high-end commercial vehicles. The company has a vast
opportunity to sustain the loyal customer base thus providing them with attractive and various
facilities and schemes.
Threat:
As the world is growing towards fuel-saving cars, the company can develop the interest
of youth towards such a car. The company can lower the price of the product to penetrate deeper
into the customer base. The company can make appropriate financial and budgeting strategy to

FINAL PROJECT-RESEARCH & ANALYSIS PAPER – PART II 4
effectively deal with changing the value of the currency and develop better opportunities for the
business to fight the competition (van Wijngaarden, et. al., 2012).
Environmental Constraints
The factor that has been determined in the research includes macro environment factors
affecting Ford motors; this includes:
Political
Ford has low stability in
European countries. The
political backing in these
countries is weak thus
affecting the overall demand
and supply of the company.
Economic
The economic impact was
seen in previous years due to
the recession. The countries
like China and India has been
helping in maintaining the
position and stability, but the
same is not very good in other
countries as well.
Social
The market has been saturated
with the competition
providing the same cars to the
owners; thus the demand is
decreasing and shifting to eco-
friendly vehicles thus
imposing pressure on
innovation and technology.
Technical
The increasing demand for
technologies like Bluetooth,
Wi-Fi, rear view cameras, and
more has been keeping the
company on toes to service
Legal
Laws like labour laws,
employee salaries, and safety
inspections for their vehicles
have been affecting the
performance of the company.
Environmental
Making electric and hybrid
electric automobiles is one of
the major tasks in the
company.

FINAL PROJECT-RESEARCH & ANALYSIS PAPER – PART II 5
more to the customers
regularly.
Ford has been planning to
introduce driverless cars in the
future as well.
Ford vehicles are having
problems with their fuel
systems, airbags, and
transmissions
I believe the significant impact is of the environmental factors that have been forcing the
company to make fuel friendly and economical cars. The organization has been developing
technology to deal with these issues thus sustaining the customer bases and effectively
developing the consumer values. I believe the company should focus more on changes to be
adapted quickly in the vehicle and not giving competitions an opportunity to win over
(Pestleanalysis, 2018).
Stakeholders
Major stakeholder for Ford is its customers as they are the one eventually using the
product. Thus their needs and demands are mandatory to be fulfilled in time. The company
should make a separate department to take ideas and feedback from the customers and make
active development in the product. Another important stakeholder is the employees that are
involved in the designing and implementation of policies in manufacturing the product. Another
important stakeholder is the community that the company has been serving; this community
decides the development and sustainability of product in the market. Finally, the dealers,
suppliers, and investors play a significant role in the development and working of the company
with subsequent changes in the market.

FINAL PROJECT-RESEARCH & ANALYSIS PAPER – PART II 6
Organizational Structure and Design
Figure 1: Organizational Chart
(Source: Motorcyclepict, 2019)
The company most follows the organic structure in the development of culture and
workspace of the organization thus keeping the teams well informed and fully furnished with the
following features. The company has an open culture for the employees to share their ideas and
innovation in the growth of the company keeping in consideration various feedbacks and ideas
given by the customers and making practical application in the business form. This environment
helps in developing an understanding between management and the employees. I believe this
kind of organizational design develops creativity and develop innovation among the people and
making practical application in the development of cars in Ford. The organic method is useful in
leading to the organic framework and develops teamwork in the organization to deal with ideas

FINAL PROJECT-RESEARCH & ANALYSIS PAPER – PART II 7
of each other. They also support external feedback and resources to make the organization
better. I believe this kind of organization is mandatory to make an active and productive work
environment and develop advanced products. This kind of structure is necessary to deal with an
n urgent need in the organization that needs multiple efforts and team collaboration in the
development of the organization (Paradis & Sutkin, 2017).
Motivating Employees
The company can motivate the employees by adopting the Hawthorne Effect in the
workplace. This theory suggests that if the employees are being observed, they tend to work
harder and perform better. This theory can be applied in Ford Motors by observing the
employees on each level and motivating them to perform as per the selected targets were given to
them. This kind of behavior will help the organization to take better results from the employees.
The employees can discuss the issues with the management and can deliver the results to them in
the given time interval. This theory can be applied in testing and evaluating the performance of
the employees and motivating them to perform better (Paradis & Sutkin, 2017).
Recommendation
Based on the PESTLE analysis I believe the company is needed to focus more on the
political structure of European countries. I have chosen this analysis because the position of Ford
in the European market is very questionable and with upcoming changes in the currency
regulation there is a need to make strategy effectively used in the development of business
standards. Another recommendation is to act quickly towards the development of technology that
can make fuel effective and eco-friendly cars. The company is needed to adopt innovation
quickly in the development to fight the competition and develop effective chances to sustain the

FINAL PROJECT-RESEARCH & ANALYSIS PAPER – PART II 8
customer database and develop further aspects of the company. The company is needed to hire
more technical staff to impose innovation and culture in the organization.
Controls and Recommendations
The technique that will be used to analyze the development of the company is the
concurrent technique. This technique is useful to analyze the performance and development of
employees on each level. This strategy can be applied by adopting management by walking
around and keeping a watch on the growth and application of innovation in the organization. to
check the successful application of goals, it is necessary to identify the result and the subsequent
feedback collected from the stakeholder on the performance of the products thus applying the
knowledge in the development of future strategies in the organization.

FINAL PROJECT-RESEARCH & ANALYSIS PAPER – PART II 9
References
Ford. (2019). About us.Ford Canada. Retrieved from: https://www.ford.ca/about-ford/?
gnav=footer-aboutford
Paradis, E., & Sutkin, G. (2017). Beyond a good story: from Hawthorne Effect to reactivity in
health professions education research. Medical education, 51(1), 31-39.
Pestleanalysis. (2018). PESTLE/PESTEL Analysis of Ford Motors: Shifting towards Electric
Automobiles to Combat Saturation. Pestleanalysis.com. Retrieved from:
https://pestleanalysis.com/pestle-analysis-of-ford/
van Wijngaarden, J. D., Scholten, G. R., & van Wijk, K. P. (2012). Strategic analysis for health
care organizations: the suitability of the SWOT‐analysis. The International journal of
health planning and management, 27(1), 34-49.