Ford's Business Strategy: Macro Environment and Internal Analysis

This report provides a comprehensive analysis of Ford Motor Company's business strategy. It begins with an introduction to business strategy and its application to Ford, a leading global automotive manufacturer. The report then examines the macro business environment using a PESTLE analysis, evaluating political, economic, social, technological, legal, and environmental factors impacting Ford. An internal environment analysis follows, utilizing value chain analysis and VRIO framework to assess Ford's strengths and weaknesses. The report also applies Porter's Five Forces model to analyze the competitive forces within the automotive industry. Finally, it explores various strategic planning models, concepts, and theories relevant to Ford's business, including stakeholder analysis, offering insights into the company's strategic decision-making processes and future directions.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
Macro business environment framework....................................................................................3
Internal environment analysis of Ford using effective frameworks............................................6
Implication of Porter's five forces model to analyse competitive forces in context of Ford......9
Theories, models, concepts and device strategic planning in context of Ford..........................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business strategy may define as complete contingent plan to acts that a venture utilize to
obtain desire outcomes and achieve set goals as well as objectives in market. It lists out different
possible circumstances a company is likely to search itself in and particular set of activities that it
must take in each of conditions to reach set aim. The current study will be based on Ford, which
falls under category of top car manufacturers in the whole world. It will explain implication of
appropriate strategic frameworks in context of analysing influence and impact of macro
environment on chosen firm and its tactics. It will define internal environment analysis relate to
selected brand by using effective concepts. This report will justify application of porter's five
forces models in regard to examine competitive forces of automotive sector for organization.
Furthermore, this assignment will clarify range of concepts, models, theories, interpret strategic
planning for chosen firm.
Macro business environment framework
Macro environment can be understood to be widely impacting functional scale
innovation actively withn varied parameters, for which FORD company asb one of the best
automobile company having varied functional scope to evolve on new domains as per the
wider external business environment. MACRO environment raise up imapct and working
influence towrads varied working targets where there is varied scope to generate informave
wider functional scake products and services for revenue targets actively fomring pace. Pestle
analysis will enable in dpeth analysis of varied factors which are as follows: Political factors: Government support within company performance growth is one of the
varied scale functional opportunity for brand to expand into new domains of varied
working innovation, evolving new parameters of varied evolving goals for intrenatinal
reach. Increasing trade agreements have been identfied as political scale opportuity
where Ford as one of then biggest automobile brand has varied new diverse scope for
enhnaced work goal efficacy among new horizons. (Dalirazar and Sabzi, 2020). Economical factotrs: Higher growth related rate of developing markets is opportunity
for Ford, but the srengthened US economy whcih is one of the companys biggest market
where the opportunity has also scaled diverse factored developed within. It can be
analysed that Ford products, considering mainly all raw material and parts are produced

in US has reduced profit margins and attarctive services considerng varied effective
market reach. Social fctors: Increasing consumer demands for hybrid and electronic autombiles have
been actively giving competitive push to brand and with increasing dynamic demands
among consumers, there is varied functional risk to brand goodwill on longer working
run. Company may progress by offering goods that address the emerging demand for
hybrid and electric automobiles and generate working innovation as identified among
consumers market for informative scale domains. Technological factors: With raising competitive factors in technology aspects in
automobile industry FORD has to expand and raise its functionl work growth
performance by generating stronger work diversity in technology factors. Ford has varied
working scale opportunities to invest in new automiobile technoogies, where consumers
have varoed demand for larger automated cars where brand has scope to leverage new
parameters. It can be understood that with wider digital promotion aspects coming on
there is also diverse focus evoved on using best technology within strategic marketing .
This also brings before scope for enlargely heading on extrenal competitive domains
where there is advnaced competency demanded in automobile industry for revenue
profits and consumers goodwill (Simões, 2020). Legal factors: The legal factors have varied scope to evolve on dynamic working
aspects where environmenal protection, increasing safety regulations within products
and services have varied scope to generate new keen performance domains for brand
goodwill. The increasing itellectual property rignts are the business opportunities where
legal factors shall be mopnitored for evolving informative scaled targets, to generate new
specific scale connective work avenues for.
 Environmental factors: Climate change , low carbon relese trend within autombiles and
declining oil reserves are some of the integral factors where there has to be given strong
focus given for wider imperative keen performance working goals. This creates business
opportunity where FORD by growin through advnaced eco friendly prducts and services
among society will be able to form effective environemental domains for imperative
new scale goals. This extrenal factor evolves on develoed advanced competemcy

horizons where Ford has evolving scope to evolve on competitive domains ,specifically
focus on generating new stratetgies further.
The above dscussed external factors have in detail analysed varied aspects of macro
business environment where Ford has definte varied functional pace to evolve on varied
impertive competitive business goals (Shadman and et.l 2021). Pestle factors have
concluded in detail about varied external factors within business horizons, for bringing on
competent scope as per competitive business world which enables to bring on diversified
functional scope. Ford for bringing on varied growth horizons, need to bring on competent
scope as per functional growth goals.
Stakeholder analysis
The stakeholder analysis can be understood a process of assessning system and varied scale
potential scaled changes actively into relatable company, for staleholder goodwill into
performance parameters and assessing intrests into long term. Stakeholder model within FORD,
will be able to enhance functional connectivity domains, also to keenly bring on technical
functional growth towards diverse domains (Ford posts profit, but expects full-year 2020 loss,
2020). There are three aspects to identify stakeholders analysis matrix whcih can be discussed
as follows: Identofying stakeholders: FORD stakekeholders are the customers within the diverse
automobile industry where there are varied work goals targets coming on ,employees
who work in company and the external shareholders who invest in brand shares. Prioritizing the shreholders: This step focuses on factors where High power, highly
interested people are managed closely and are fouesd on with full engagment for
imperative wide scale performance horizons. High power, less interested people are
satisfied and next are the Low power, highly interested people which are to be kept
informed adequetly where people can be very helpful wth detailed produts and services.
Low power, less interested people are to be monitored for larger scale connective work
horizons within longer run.
 Understanding the key identified stakeholders: FORD has to identify aspects of
information whcih stakeholders want to be generated which motivates their visions and
also generate new infuencive work goal priorities to influence and generate larger scale
ifnformative targets (Strategy update: Ford Motor Company – 2020 edition, 2020).

Internal environment analysis of Ford using effective frameworks
An internal atmosphere refer to set of components that describe environment within a
business structure (Hollberg, Lützkendorf and Habert, 2019). It defines the way acts and
relations carry out insider companies, usually within co-workers. Analysing internal environment
is really very important to any brand, which is possible by use of effective and appropriate
models that are accessible in the world of business. Here in context of Ford, two different
strategic models such as Value chain analysis and VRIO use that has discussed below-
Value chain analysis-
Primary activities-
Inbound logistics-
Ford is able to deliver its quality products and services all over the world as it has spread
its manufacturing network globally (Kotler, Kartajaya and Setiawan, 2019). Assembly and
production plants of Ford are established throughout the universe from Africa to China. It

enables to manage each inbound acts in effective manner because of skilled workforce who
contribute in context of managing work and performance of brand.
Outbound logistics-
Ford and its management is able to handle outbound activities of business in systematic
manner. Administration shipped assembled vehicles from company's own production plants to its
dealerships. By using balanced mix of transport solution, firm successfully concentrate on
eliminating road miles and optimize efficiencies apart from sustainable environment.
Operations-
Centralisation of chosen organization logistics operations included resource handling for
7 stamping, 35 assembly plants, 7 casting plants, 21 engines dispersed internationally (Giampieri
and et.al., 2020). Firm man age all these operations in effective manner with talented and
experienced workers. It allows administration to reach at global level and serves its best to
consumers which is quite important and beneficial as well.
Marketing and sales-
Ford Company in order to be competitive and gain advantages of competitive
environment spends a big amount of money on sales promotions and marketing activities every
year, which in return increase its profitability, productivity and sales level even better than its
rivals. Along with this company also invest in usage of offline and online sales channels.
Products and services-
Ford and its administration focus on improving goods range and service quality through
continuous concentrate on research and development which is one of the most effective approach
that provide useful information relate to market and other things.
Support activities-
Technology development-
In order to grow its venture and gain competitive edge, Ford is able to build excellent
technological competences which is quite beneficial in term of driving better productivity in its
supply chain and production network. The best thing about organization is that it work on
improving production as operational efficiency via investing in technology and implementation
of top class IT programmes.
Company infrastructure-

Organizational structure plays vital role in success and excellent progress of ventures.
The infrastructure of Ford included legal department, marketing and other functional units that
help and contribute enhancing performance of its business even better than other vehicle
manufacturing brands. Organization organize its venture operations on regional and international
basis appropriately, which bring benefit in form of increasing operational efficiencies.
Human resource management-
HR manager to support Ford in competitive business environment and to manage its
venture performance, has managed the competences and develop the new skills of around
190,000 workers that employed by firm. Furthermore, in order to achieve set objectives and
goals, human resource management hire new staff members as well that have required skills and
knowledge.
Procurement-
To manufacture the best quality vehicles and satisfy target segments, Ford receive raw
materials from thousands of suitable suppliers from around the world who are trustable and
faithful. International procurement at company permit management and authority to support to
local economics, inspire entrepreneurship and thus enhance living standards of people where
firm operates and its suppliers are located.
VRIO analysis-
Value-
The internal environment include workers, competences of staff, leadership styles and
management practices (Katsaros, Tsirikas and Kosta, 2020). All these resources allow Ford to
establish its global presence in business world, which is quite valuable and important in varied
forms. Firm is international brand with wide network of vendors, suppliers and distributors. All
these things are valuable for company in term of increasing its consumer satisfactory level.
Rare-
Global presence, effective brand image and consumer loyalty are key resources that is
impossible to imitate and rare as no one can obtain all these things easily. To get all these
components, companies needs to conduct a lot of attempts and develop strategic plans. Consume
loyalty is the key source of business success, which is impossible to build by any brand. M&S
has build strong buyer base who all are loyal.
Imitability-

Ford has great brand image in market which is imitable and no other brand can build the
same because it requires hard work and effective strategic plans as well as strategies. Customer
loyalty is another resource that other companies while operating in automotive sector imitate.
Organization-
Ford as global brand has successfully managed its wide distribution network and supply
chain across large number of organizations in the world. With strong and experienced workforce
company has gained a lot of benefits in term of gaining competitive advantages and increasing
profitability by selling top quality vehicles.
Implication of Porter's five forces model to analyse competitive forces in context of Ford
There are different types of competitive forces are accessible in the business world that
impact current practices of management and a company as well. It included consumers, potential
entrance of new firms, suppliers, substitutes etc. Here, porter's five forces model as strategic
framework use in regard to Ford as it help identify potential forces that affect organization
business activities and operations management acts (Kabeyi, 2018).
Bargaining power of suppliers-
The degree of this competitive element is low because apart from being small or medium,
they are distributed all around the world. It put positive impact upon supply chain and other
operations of brand in term of making raw material purchase less costly. Ford purchases a wider
variety of raw materials from its suppliers in each area of the world (Cong, Pang and Peng,
2020). Low bargaining power of suppliers allow suppliers to stay with firm for longer and permit
supplying and delivering the best parts for each vehicle that organization procure on demand of
its target segments. The chosen brand has entered contractual relation with many suppliers which
enable it to supply its products all over the world. Due to low bargaining power of suppliers, firm
within auto mobile sector grow even better more than its rivals that are available in similar
industry.
Bargaining power of customers-
Extent of this force is high and increased over time due to increased competition in
automotive industry and because of high accessibility of information as well as substitute. In
recent time, degree of competition in chosen sector is quite high and apart from that 21st era

consumers are well-informed buyers, they gather all data about topic or subject in which he or
she is interested in form of purchase. High bargaining power of customers may put negative
impact on pricing structure and strategy of Ford as it lead to decrease profitability and market
revenue. In today's duration, people have varied options and alternatives such as transportation
vehicles, bus, cabs etc. which they can use for travel purpose instead of purchasing own. They
examine each option carefully before taking decision to purchase.
Threat of new entrants-
Extent of this competitive force is low because high competitive environment within
automotive industry require a lot of investment and hard work which is not possible at all for any
brand to do excluding Ford. As it already give touch competition to its rivals and consider in list
of top car manufacturing brands in the world. Competition within selected industry is intense and
companies are aggressively spending on market expansion as well as innovation which is
actually very important to invest as it enable them to gain competitive edge and allow gain
further growth opportunities (Ho, 2016). This force put positive impact on Ford in term of
holding their position in market. Its marketing, production and other operational strategies could
also not get affected due to this factor.
Competitive rivalry: Ford faces competitive rivalry as high threat as the potential
factors within various new companies coming in within auto mobile industry at global level
which generates specific compritive domains on which new scaled innovation needs to be
gnerated. It can be understood that the competitive rivalry as one of the biggest factor impacting
business scenarios within business evolving efficacy generates keen parameters for evocative
goals innovatively and also potentially there is wider efficiency demanded among business
strategic development for larger vision oriented performance domains. Competitive rivalry
generates innovative business scale positioning where Ford has to generate expansion into
untapped working horizons, head on keen informative working domains and determine larger
diversity within services.
Threat of substitution: The threat of substitution is low where FORD products have
promising quality structure which shows that there has been effective focus towards consumers
goodwill and evocative new range of keen parameters evocatively. This generates effective
focus on future business scenarios on which Ford has specific varied domains and exploratory
operational scope for keen new paradigms to enhance business goodwill. The brand has been

actively heading on commercial operations where substitution scope for consumers is less which
develops new imperative parameters for keen development.
SWOT analysis-
Strengths-
 The key strength of chosen company is global recognition, it included in category of
well-known brands in auto mobile sector (Huo and Parmar, 2020). Because of its
excellent success and growth, firm is recognized by each consumer all over the world.
 Ford provide its products to all types of demographic groups that consider it as another
valuable strength of company. It caters to all forms of consumers with diversified car
models and brands.
Weaknesses-
 Weak foothold is one of its weaknesses that put negative impact on sale and productivity
of brand. As its operations are spread in several geographical areas, it lacks concentrate in
productivity and performance of venture.
 Dependency on United. State markets is another weak point of Ford which lead to limits
revenues and market share.
Opportunities-
 Development of digital marketing tools and platforms is one of the best opportunities that
Ford company may grab in order to promote its products worldwide.
 Demand relate to Eco-friendly vehicles is the best chance that organization grab as it
enables it to boost brand image in market successfully.
Threats-
 Intense competition is the biggest threat which company face while operating venture
within auto motive sector.
 Because of environment improvements, threat relate to regulatory and compliance have
increased in last few years that impact overall auto-motive industry and companies that
has operated within it like Ford.
Theories, models, concepts and device strategic planning in context of Ford
Ansoff Matrix-

Market penetration-
According to chosen model, it is one of the best and most effective business growth
strategies because it makes Ford able to keep its existing position in market and allow retaining
potential buyers for longer period of time. The best thing about this tactic is that it enhance
current products quality which is possible when Ford management focus on improving
operational activities (Li and Luo, 2020).
Product development-
When Ford chosen this tactic it needs to produce new product or vehicle for current target
segment which enable management to retain profitable customers.
Market development-
This strategy drive attention of Ford and its management towards creating new market
segments for current ranges of products.
Diversification-
It is one of the most risky and difficult strategies that Ford may adapt to gain competitive
edge and great success in market by manufacturing new product for new target consumers.
Porter's generic strategies-
Cost leadership-
With this strategy, Ford may set low cost in context of different vehicles which is quite
beneficial in term of increasing customer base, profitability and sales level as well.
Differentiation strategy-
Just like above tactic, differentiation also provide benefits to chosen company but in
different manner. As it enhance customer brand loyalty when Ford develops new and attractive
vehicle for people who seek to purchase branded cars from well-known brand.
Focus strategy-
It drives the attention and focus of organization authority towards targeting niche market
which cater benefits in form of improving pricing format.
Bowman's strategy clock-
Low price and low added value- By using this tactic company may set low price and
offer low added value.
Low price- according to this strategy, Ford need to set low price of its items that people
can easily buy.