Ford Motor Company and the Impact of Globalization on Business

This report delves into the multifaceted impact of globalization on modern business operations, with a specific focus on the Ford Motor Company. It explores how globalization has reshaped the economic landscape, fostering increased competition, technological advancements, and changes in employment dynamics. The report highlights the significance of outsourcing and offshoring as key components of globalization, while also addressing the challenges, opportunities, and problems that companies face in this interconnected environment. Furthermore, it discusses strategies for international managers to stay ahead in the competitive market, including product differentiation, cost leadership, effective market research, and the importance of a diversified workforce. The analysis encompasses both the positive and negative aspects of globalization, providing a comprehensive understanding of its influence on business and the global economy. The report also analyzes Ford Motor Company's outsourcing practices, particularly its offshoring of accounting services to India, illustrating the practical implications of globalization in a real-world context.

MBA Assignment

MBA Assignment 1
Executive Summary
This report talks about globalization and its related concepts due to the fact that it has brought
vast changes in the economy across the world. During the last few decades this has become one
of the main factors in the life of the business. This is the phenomenon that creates the impact on
the economy, business life, society and the environment in various ways and in among the entire
corporation that has been affected by the changes. Managers of the company should be aware of
the globalization benefits in the international market and this helps them in leading ahead in the
market. The report includes the concept that is related to the outsourcing and offshoring
contribute to the globalization. This is the fact that apart from the positive aspect of the company
there are some negative aspects also which include challenges, opportunities and the problems
that are associated with the globalization with the help of the company.

MBA Assignment 2
Contents
Introduction......................................................................................................................................4
Globalization impacts on business today.........................................................................................6
Competition.................................................................................................................................6
Rise in technology.......................................................................................................................6
Employment.................................................................................................................................7
Fluctuations in prices...................................................................................................................7
Job insecurity in business............................................................................................................7
International Managers must know ways to stay ahead of the game..............................................8
Differentiation in products and services......................................................................................8
Cost leadership strategy...............................................................................................................8
Effective research of market........................................................................................................9
Diversified employees.................................................................................................................9
Outsourcing and offshoring contributes to globalization................................................................9
Challenges, opportunities, and problems that globalization presents............................................11
Benefits that globalization presents...........................................................................................11
Challenges that globalization presents.......................................................................................12
Problems that globalization presents.........................................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

MBA Assignment 3
Appendix........................................................................................................................................19
Appendix 1.................................................................................................................................19

MBA Assignment 4
Introduction
Globalization defines a process by which regional and national economies, societies and the
culture have become integrates through the global network related to the communication, trade,
immigration, and transportation. The globalization is increasing and has created the major impact
on the business in the current scenario. Moreover, the manager of the company should stay ahead
at a game to perform their responsibility in the competitive market. In the current past, this
phenomenon was absorbed towards the economic side of the world which include trade, FDI,
international capital flows and others. The emergence of globalization brought numerous
numbers of benefits to the international manufacturers and the national economies (Beck, 2018).
In simple words, globalisation is a term that is used to identify the way through which the
countries, people and the trades across the world are getting interrelated with the help of the
forces like technology, transportation, media and global finance which makes it easier for the
goods, people, services and ideas to cross the borders and boundaries (Economics Online, 2018).
This transaction takes places between the countries and affects the business that is conducted by
companies in the current environment.
Along with this, the globalization has also created the impact on the business today and this
impact can be positive and negative which is discussed in the report. The business activities that
are performed by the company are possible with the help of globalization only. This is the fact
that the globalization is a force that shapes the contemporary world, environment, business and
the society. Moreover, the report includes the outsourcing and offshoring that contributes to
globalization with the use of the company as the case study. This is the fact that there are
numerous companies who make use of the outsourcing in which they contract the work out to

MBA Assignment 5
any of the external company and offshoring that is getting the work done in the different
countries which are possible with the help of the globalization. Along with this, there are
numerous challenges, opportunities and problems are associated with the globalization that is
presented in the report with the help of the company. These challenges and problems might
affect the operation and might leads to the closure of the business in the competitive market.
Along with this, the opportunities of this phenomena support the company for the expansion of
the business. The phenomena of globalization can offer the tremendous opportunity for the
growth of the economy which directly leads to the improvement in the life of many people.
Along with this, it provides an opportunity to rise in the living standard of the people in the
economy.
The company that has been selected as the case study is Ford Motor Company. The company is a
well-known Amercian multinational company with the headquarters in Dearborn, Michigan, a
suburb of Detriot. The company was established by Henry Ford in the year 1903. Ford Motor
company deals in the commercial vehicles under the Ford Brand across the many areas of the
world and falls under the automobile industry.

MBA Assignment 6
Globalization impacts on business today
Globalization is a continuous process through which they can link the people, regions, cities and
different countries closer together. Globalisation has brought numerous changes in the business
which is related to the rise in the competition and the changes in the technology (Financial
Times, 2018). The company needs to consider few points to face the effect created by the
globalization of business today. Below given are the positive and negative impacts of
globalization on business.
Competition
The globalization has brought the rise in the competition among the companies. This competition
can be related to the products and services cost or price, target markets and many others. Due to
the rise in the competition growth companies and foreign brands have been obliged to enhance
their standards and customer benefits which positive affect numerous people across the world
(Lawrence and Weber, 2014). With the help of this positive effect, the company can provide the
effective services to their customers.
Rise in technology
Globalization brought the rise in the level of the technology used in the today’s world. There are
many international and entrepreneurial forms who have obtained the help of technology to
generate the new opportunities in business. The rise in the technology provided the support to the
small firms to implement the advanced technology which is a positive example (Baylis, Smith
and Owens, 2017). Example of advanced technology is increasing in the use of E-commerce
procedures in the business.

MBA Assignment 7
Employment
The rise in the employment was possible because of the globalization as this phenomenon linked
the movement of people from country to other through which the people of different countries
got the jobs easily (Mayer‐Foulkes, 2015). This reflects the concept of the outsourcing as most of
the companies offer the work related to supporting, marketing and accounting to the developing
companies like India, Nepal, etc.
Fluctuations in prices
The emergence of globalization has created a negative impact in the form of a rising in the prices
across different areas. The rise in the competition among companies in the developed companies
forced the firm to reduce the cost of the products and services.
(Source: Hirst, Thompson and Bromley, 2015)
Job insecurity in business
The developed countries faced the problem of the job security because the globalization leads to
the rise in the outsourcing of jobs from developing countries. This has reduced the job
opportunities in the developed countries (Hirst, Thompson and Bromley, 2015). The business
today tries to manage the price of products for which they always look to hire cheap labor from
the developing countries. This is one of the negative impacts of the globalization.

MBA Assignment 8
International Managers must know ways to stay ahead of the game
The globalization has brought tough competition in the national and international market due to
which the managers of the company might not able to manage the operations of the company
effectively (Deresky, 2017). The international managers need to identify the ways through which
they can stay ahead of the game. The rise in the competition will enforce the manager to bring
some strategies through which the company can stay ahead of the game. These strategies are
discussed below: -
Differentiation in products and services
The international managers should ensure that whatever they are offering is different from the
products and services of the other companies in the market as this is the only way through which
the managers can contribute in managing the effective position in the market (Hoberg and
Phillips, 2016). This will help the company to face a strong competition and they will be able to
generate the effective competitive advantage.
Cost leadership strategy
Cost leadership strategy is forming a competitive advantage for a company by having the lowest
cost of the operations in the industry. The manager should follow the lowest cost strategy in
which they should try to manufacture the products and services at lowest cost so that they can
provide the products at lowest prices in the market (Banker, Mashruwala, and Tripathy, 2014).
This is an effective way to which they can lead to the customer satisfaction in the market.
Moreover, they can generate the customer loyalty which is essential for the international
manager to lead in the game.

MBA Assignment 9
Effective research of market
The international manager should always analyze the market effectively because this is the only
way through which they can understand needs of the customers available in the market. It is
essential for the business to understand the needs of the customers present in the market because
then only the company will be able to satisfy the customers (Babin and Zikmund, 2015).
Moreover, this research will help the international manager to understand the nature of the
market according to that they can make the changes in their strategy of the business. There are
many companies who take the advantage of globalization in performing the research.
Diversified employees
The manager should ensure that they are employing the diversified employees in which they hire
the people from the different cultures. This is possible with the help of the globalization as this
concept has provided an opportunity to the companies with the use of which they can hire the
employees easily (Saxena, 2014). The hiring of diversified employees is essential because this is
the way through which the manager can get some information about the culture, taste, and
preference of the different countries where they are operating their business.
Outsourcing and offshoring contributes to globalization
Offshoring refers to as the getting the work done in a dissimilar country. On the other hand,
outsourcing refers to as the contracting work out to an outside business. Offshoring is often
assessed for the transferring of the jobs to the other countries. The outsourcing and offshoring
contribute to the globalization. The outsourcing provides the opportunity to the companies to get
the work done from the external business which is possible in through globalization only. The
development of the communication, global networks, public and freely available information

MBA Assignment 10
makes the people believe that the world is different. The outsourcing offers an effective
implementation of the concept in both developed and developing countries. On the other hand,
offshoring also contributes to globalization. There are numerous companies who are getting the
work done in the different country. The getting the work done from the different country
contributes in globalization because this is the way through which the political connection
between the countries gets stronger and this is essential for the effective globalization (Domazet
and Bulajic, 2012). The outsourcing makes the work of bringing towards the people and easy
movement of the services and people. This leads to the enhancement of the globalization in the
developed and developing countries. (Refer Appendix 1 for more details related Outsourcing and
offshoring contributes to globalization)
There are numerous companies who are involved in outsourcing of the services from the
different countries. One of them is Ford Motor Company who recently began to outsource most
of work from the accounting department to India. The company conducted a research and found
that the developing countries like India can offer a high level of the quality and dependable
services. This ultimately makes them outsource their software development centers so that
company can effectively manage their e-commerce solution across India (Contractor, et.al,
2010). The company outsourced and offshore their operations of a call center to India because
they were able to find the labors at low wages. Being in India, the company was able to use the
flexible pricing options, premium quality services with the effective technological infrastructure
and capabilities, IT strategies and many others. The company generates the high employment in
the country. This outsourcing has contributed by providing the support to the globalization across
the world. In the current business scenario, most of the companies are outsourcing projects to

MBA Assignment 11
offshore companies to save costs because in developing countries they can easily get the work
done at low cost.
Challenges, opportunities, and problems that globalization presents
There are some of the challenges, opportunities, and problems that globalization presents which
are faced by the ford company in the current market which is explained below: -
Benefits that globalization presents
 Utilitarian: - One of the biggest benefits of the emergence of globalization is Utilitarian.
The company makes use of the globalization concept for the expansion of the business
because this is the only way through which they can offer their maximum services to a
large number of customers across the world. This ultimately means that there is a large
volume of sales and exchange, large growth rates in GDP, additional empowerment of
entities and political systems which is possible through acquisition of an extra amount of
capital and resources.
 Enhance the brand value/reputation: - Most of the companies are willing to expand
their business under the globalization concept because they want to globalize their
services and want to earn a good brand value in the market through its effective services.
This is the reason due to which Ford Company is having operations in numerous
companies.
 Rise in profit and reduction in cost: - Ford Company has expanded their business with
the motive of profit. The revenue of the company increases when they take a step to
establish their business operation in other countries. Moreover, another factor behind the
use of the globalization concepts by the company is to achieve the low-cost structure