Ford Motors: Strategies for Success in the Global Business Environment

This report provides an analysis of Ford Motors within the global business environment, focusing on the cultural risks the company faces, such as language barriers, adapting business models to local preferences, understanding regional and sub-cultural differences, and human resource management challenges. It also examines the comparative and competitive advantages Ford possesses, including technological innovation, product range, HR management, production and distribution capabilities, brand image, global presence, and supply chain management. Furthermore, the report delves into the impact of industrial policy, factor conditions, and related supporting industries on Ford's success, highlighting the role of shareholders, technology, differentiation strategies, and cost leadership. The analysis considers political, economic, social, technological, and environmental factors influencing Ford's operations, concluding with the importance of market analysis and strategic adaptation for success in the global market.

Global Business
Environment

Contents
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Major cultural risks............................................................................................................................3
Comparative and competitive advantages..........................................................................................4
Industrial policy, factor conditions, related and supporting industries...............................................6
CONCLUSION....................................................................................................................................8
REFRENCES.......................................................................................................................................9

INTRODUCTION
Global business environment is defined as a surrounding system of a company in
which it operates its business. Global business environment consists of various internal
external factors which could impact the functioning of companies (Kotabe and Helsen, 2020).
The following report is based on an automobile company named Ford motors which is an
American multinational automobile company. The company was established by Henry Ford
an incorporated-on 16 June 1903. The following report discuss what major cultural
challenges the respective company could face and what steps it will take to overcome them.
The report also pays focus on comparative and competitive advantage which help company in
accomplishing success on international level. Furthermore, explanation about how industrial
policy, factory conditions, related in supporting industries helps in achieving success of
certain company.
MAIN BODY
Major cultural risks
Cultural challenges are defined as those risk factors which are associated with
traditions and customs of any country which could impact expansion of business. There are
various cultural challenges which Ford motors could face theatre explain below
Language barrier
Language is considered as a very important factor while expanding business in
international markets. It is very vital for organisations to understand language of specific
country in which they want to expand their business (Amponsah and Ahmed, 2017). In case
of selected company, it could face risk of not knowing language which could result in failure
of expansion of business.
Failure of not attempting business model
Behaviour and attitude of customer are highly impacted by culture. When is company
expand its business into new market its business models must be modified in a certain way
which could reflect local preferences and customs? In case of the selected company, it could
face risk of not implementing business model according to the local market which could
result in failure of business operations.

Examining Regional and sub cultural differences
It has been observed that as the market is expanding the preferences of customers and the
conditions of market is also changing. Sub cultures are not only limited to ethnic variations.
In case of respective company, it could fail to determine cultural diversity off local market
which could result in losing of potential customer segments.
Failed to adapt human resource management
human resource management is linked with organising operations of a company through
managing workforce of companies (Usunier, 2018). The ignorance in related to culture might
risk the respective company’s Ability to track at potential candidates towards company.
In order to minimize the impact of these challenges auto overcome cultural challenges
on international market the company needs to implement falling strategies
Ensure clear and polite communication
the respective company best implement effective communication among workforce. It will
help the company in conveying its message among employees which could assist it in
accomplishing its objectives more clearly. The company could use different methods of
communication such as visual methods or nonverbal methods.
Improve knowledge about different cultures
The company needs to enhance its knowledge about cultural environment of a country it
wants to expand its business operations. The company is required to learn about various
cultural backgrounds which could help it in building strong relationship with its employees
(Yilmaz and Flouris, 2017). The company needs to be patient and respectful towards different
cultural and take steps against discrimination at workplaces.
Employee diversity training
this is in another method which could be used by company to make its employees aware
about importance of diversity. The respective company needs to implement diversity training
programs which could help it in foster inclusive work culture environment as well as
motivate its employees towards creating a positive environment in the company. These
training programs will assist workforce of the company in understanding and embracing
cultural differences of each other.

Comparative and competitive advantages
Technological innovation
technological innovation is described as main source of competitive advantage in the sector
of automobile industry and it is a method to represent their product more attractive among
customers globally. The selected company that is Ford has invested over large amount of
money in research and development 10 in 2019 it has invested around $7.4 billion. As the
respective company relies on product differentiation which is held death in growing on global
scale as well as became key source of competitive advantage (Sinkovics and Sinkovics,
2019). Company has bought a large range of fuel efficient and safer cars in the automobile
sector along with launching of several attractive SUVs.
Product range
The respective company has launched a large attractive range of several products which is its
key source of competitive advantage. In USA the company is among bestselling brand and is
popular on international level. It has launched a wide range of automobile products in the
market such as smack, truck, cross overs and hybrids. Furthermore, the company has also
launched a wide range of commercial vehicles, vans, truck, electric cars and performance
vehicles. The selected company offers a large number of distinctive products which help it in
gaining competitive advantage.
HR management
human resource management is also considered as a key source of competitive advantage
which helps people in gaining employment worldwide. In the year 2019 the company has
employed over 1 Lac 90,000 candidates on global level (ATWA, IBRAHIM and SALEH,
2017). Furthermore, the company also invest in growth and job satisfaction of its employees.
Production and distribution capabilities
the selected company has a strong global presence buy its white manufacturing distribution
network. The company has almost eight regional engineering, development and research
centres along with 55 production in assembly plants on international level. The company also
has a distribution network worldwide off nearly 11,000 dealerships (Cohen, 2018).
Production image and marketing

Brand image is also considered as a vital source of competitive advantage in the automobile
industry as customers only trust a particular brand on global scale. In context to the selected
company, it has maintained the highest focus on making its positive reputation in the market.
Furthermore, the respective company also engage itself in marketing campaigns along with
encouraging its potential customers through social media. Through focusing on marketing
strategies, the selected company is a bill to maintain its brand identity and differentiate itself
from others in the market. The company also use social media platform as a marketing
channel which helps it in attracting large number of customers.
Global presence
In order to achieve higher success rate in automobile industry, Companies are required to
maintain their image in global market. The selected company has a stroke market presence
on global scale. Ford motors has a largest market in United States which serves its potential
customer through offering a wide number of dealerships. If the year 2019 around the world
there were approximately 10921 dealers who was selling Ford motors products (Peng, 2021).
Furthermore, the company has also invested in improving its digital technology so that it
could reach more customers on global level.
Supply chain management
Strong supply is considered as a backbone of Companies in automobile sector which helps
them in building connection with suppliers in order to maintain good Quality of their
products. In case of the selected company, optimizing strong supply chain management has
helped it in minimizing its manufacturing cost along with providing quality products. The
company also focus on building long term relationship with its suppliers on global level. Row
raw material Row raw which are required for the production of cars respective company
collect it from various suppliers across the world which involves precious metals, plastics,
energy and base metals.
Industrial policy, factor conditions, related and supporting industries
Ford is a multinational company which is publicly traded. The shareholders of the
company play a very vital role in examining market strategies to enhance profit. Furthermore,
play the company also focus on building strong interpersonal relationship with its
shareholders because strengthening communication with various investors and encouraging
them to participate in annual conferences (Xu, David and Kim, 2018). This strong
relationship with its potential shareholders has helped the company in achieving success. This

approach allows the company in controlling and operating its business operations as well as
improving leadership. The respective company also focus on improving its technology which
facilitate its efficiency off making good quality products in the automobile industry. The
respective company also supports price leadership and focus on promoting its product
through advertising. Turn free structure of selected companies related with work of
marketers, distributors and its specialist. The main strength of the company includes its
strong position in the USA market and its significance presence in international market the
company also focus on increasing its margin and utilising cost-effective strategies in order to
balance expenses and profits. The effective strategies which are related to regulation of
capital allow the company for funding research and development areas so that it could
develop new technology and improve production of automobiles (Namada, 2018). The
company also implement principles of both differentiation strategies and cost leadership
which help the company in providing high quality products to its potential customers which
could meet their expectation as well as demands. The principle of cost leadership helps the
company in adjusting minimising its manufacturing cost while offering quality products to its
customers.
In terms of political factors, the company has its presence in international market
which could impact its business. The stability of political government is also necessary for
the success of respective company. In case of economic factors reduction in oil prices could
be considered as important factor which could impact the capacity of consumers and trading
of automobiles. According to social factors the preferences of customers good influence the
operation of selected company (Kourula, Pisani and Kolk, 2017). In terms of technological
factors, the company has also invested a lot of amount in research and development
department in order to it warns its technologies as compared to its rivals present in the
market. When it is about concerning factors of environment the respective company is also
taking various initiatives so that it could minimised its carbon footprints and save the planet.
Respective company has launched many eco-friendly vehicles show that it could minimised
the impact of greenhouse gases. The number of buyers and their capability could directly
impact eco-friendly trading and market situations. In the present time Ford has implemented
differentiation strategies which help it in distinguishing itself from its competitors (Alonso
and Kok, 2018). This method is applied by the respective company in order to promote its
vehicles which could be viewed as profit pillars. The company is also preserving its
reputation and offering consumers with most innovative and efficient vehicles. Furthermore,

the company also paid its attention on implementing strategies which could help it in
overcoming financial crisis. Thus, the selected company is also flexible while examining
manufacturing cost and prices that are adjusted on the basis of circumstances.
CONCLUSION
From the above discussion it has been evaluated that it is very vital for business firms
to analyse their market situations in order to operate smoothly in the market. Before
expanding their businesses on international level, it is very important for companies to
examine what challenges they could face there. It has also been evaluated from the above
report that companies need to make marketing strategies that could help them in overcoming
those challenges. It has also been seen that competitive and comparative advantages aid
company in making successfully on international level. It has also been examined that various
factor conditions policies and supporting industry elements contribute in the success of a
company.

REFRENCES
Books and journals
Alonso, A.D. and Kok, S., 2018. Adapting through learning and knowledge acquisition: the
cases of four global family firms. Journal of Family Business Management.
Amponsah, C.T. and Ahmed, G., 2017. New global dimensions of business
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ATWA, S.M., IBRAHIM, M.G. and SALEH, A.M., 2017. Green business parks towards
sustainable cities. WIT Transactions on Ecology and the Environment, 214, pp.9-19.
Cohen, R.B., 2018. The new international division of labor, multinational corporations and
urban hierarchy (pp. 287-315). Routledge.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Kourula, A., Pisani, N. and Kolk, A., 2017. Corporate sustainability and inclusive
development: Highlights from international business and management
research. Current opinion in environmental sustainability, 24, pp.14-18.
Namada, J.M., 2018. Organizational learning and competitive advantage. In Handbook of
research on knowledge management for contemporary business environments (pp.
86-104). IGI Global.
Peng, M.W., 2021. Global strategy. Cengage learning.
Sinkovics, N. and Sinkovics, R.R., 2019. International business and global value chains.
In Handbook on global value chains. Edward Elgar Publishing.
Usunier, J.C., 2018. Intercultural Business Negotiations: Deal-making Or Relationship
Building?. Routledge.
Xu, M., David, J.M. and Kim, S.H., 2018. The fourth industrial revolution: Opportunities and
challenges. International journal of financial research, 9(2), pp.90-95.
Yilmaz, A.K. and Flouris, T., 2017. Corporate risk management for international business.
Springer.