Ford Motor Australia: Sales Impact on Profitability Research Project

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This report presents a research project investigating the influence of sales on the profitability of Ford Motor Australia. The study explores the relationship between sales, revenue, and overall financial performance, considering the competitive landscape and market dynamics. The research employs a qualitative approach, analyzing primary and secondary data sources, including company reports and industry analyses, to identify key factors that drive sales and their impact on profitability. The report examines the significance of sales in enhancing the company's performance and goodwill, and it also discusses various strategies Ford Motor Australia can implement to increase sales and revenue. The findings highlight the critical role of sales in driving organizational growth and development, providing valuable insights for business development and management studies. This research offers a detailed analysis of the automotive industry, focusing on the impact of sales on profitability, market perception and sustainable growth.
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Research Project
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Executive summary
The potential purpose of this research is to provide appropriate detail on a professional
project that aim at investigating the influence of sale on the profitability of company which is
then explained with the support of research questions. The present investigation work is based on
a management research in which the potential influence of organisational sales in the growth and
development of organisations. In the present investigation work qualitative investigation will be
applicable in creating a theoretical framework that signifies the research issue with the support of
suitable facts or figures. In this inductive approach will be taken place to detailed analysis of the
qualitative investigation. Along with this primary and secondary sources will apply in the
accumulation of relevant information. Data collected through the companies’ websites to analyse
the links between sustainability reports, industry and market performance. The results is that
sustainability reports have effective relationships with industry and market perception. This
study concludes that sales is effective for the growth and development of organisations.
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Table of Contents
Executive summary..........................................................................................................................2
TITLE:.............................................................................................................................................1
Introduction......................................................................................................................................1
Literature Review.............................................................................................................................5
Research Methodology....................................................................................................................8
Finding and Analysis.....................................................................................................................10
Discussion......................................................................................................................................18
Conclusion and Recommendation.................................................................................................20
REFERENCES..............................................................................................................................22
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TITLE:
“To identify the impact of sale on profitability of company. A case study on Ford Motor,
Rolls Royce and Jaguar Land rover limited Company of Australia”.
Introduction
Overview of the Research
Sales and marketing is the fundamental core in the growth and development of an
organisation name or increase their profits. Marketing and sales are the two different aspect that
are interconnected with each other and plays vast role in development of organisational operation
at wide scale (Niresh & Thirunavukkarasu, 2014). In today's modern business environment
competition is so high at market place and the major focused area of a small as well as large
business enterprises is to attaining higher growth and profitability through increasing the sales
and operations of the firm at global level. High sales cause higher profitability of the firm, as
marketing or sales has a positive or direct influence on the development of growth of the firm.
Ford Motor Australia, Rolls-Royce and jaguar land rover is the selected organisations f or this
particular project (Lee, 2011). The company is known by its trading name Ford Australia. It is a
auto maker company and widely concern on enhancing its profitability by developing sales or
revenue of the firm.
Background of the Research
In today's modern business environment, profitability is referring as the key consideration
of an organisation or its management. Increasing sales of an organisation cause higher
profitability and growth. Ford Australia is a large auto maker company. It is the Australian
subsidiary of United States based auto-maker Ford Motor company. The company was
established by the potential efforts of Henry Ford, in the year of 1925, within Geelong, Victoria
as an outpost of Ford Motor Company of Canada, Limited. The headquarter of the firm is in
Campbell-field, Australia. The company majorly operates in variety auto motive products and
significantly concern on enhancing its sales and revenue by developing more attractive or
innovative products for customers (Lunardi, Becker, Maçada & Dolci, 2014). The major focused
area of Ford Motors Australia is to developing its manufacturing for the purpose of increasing
sales and revenue at global level. Positive financial development is a challenge for the
management of every company. Rolls-Royce Limited is an original organisation that is
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established in the year of 1971. Rolls-Royce Limited, now renamed Rolls-Royce Plc. It
incorporated Rolls-Royce Motors to own its car division in 1973 and then sold it to Vickers in
the year of 1980. The company is also having its global operations and widely concern on
enhancing its sales and revenue by improvising its operations through developing sales of the
company. Jaguar Land Rover Automotive Plc is the holding organisation of Jaguar Land Rover
Limited, it is a British multinational automotive firm and the headquarter of the firm is in
Whitley, Coventry, United Kingdom. The operations that are profitable are usually developed
even further, whereas unprofitable operations are valued and estimated whether they have any
strategic value for the company.
Significance of the Research
The considered investigator work is based on the study of the impact of sale on
profitability of a business organisation. In today's modern market being competitive and
profitable is a matter of survival in the market. The operations of a business organisation must be
cost-effective, productive and profitable in nature. If a single segment of an organisation is
weaker, it instantly reflects on the profitability of the firm (Eggert, Hogreve, Ulaga &
Muenkhoff, 2011). This is a management research which provides appropriate knowledge and
idea to the learners to develop their knowledge base in the area of marketing or management
studies. The major purpose of conducting the research of the investigator is personal interest.
Researcher is having personal interstate in the area of management studies and this study
provides potential knowledge base to develop their marketing or sales ability (Frey & Osborne,
2017).
Research Aim:
“To identify the impact of sale on profitability of company. A case study on Ford Motor
Company of Australia”.
Research Objectives:
Potential objectives of this particular research are associated as below:
To investigate the influence of sale on profitability of Ford Motor Australia.
To identify the impact of sale on performance and goodwill of Ford Motor Australia. To analyse different ways through which Ford Motor Australia can increase its sale.
Research Questions:
The significant questions of this exploration work are associated as under:
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What are the influence of sale on profitability of Ford Motor Company of Australia?
How business sale impact on performance and goodwill of Ford Motor Company of
Australia?
What are the different ways through which Ford Motor Company of Australia can
increase their sales?
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Time Scale
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Literature Review
The influence of sale on profitability of Ford Motor Australia.
As per the views expressed by Pooja Chatterjee, 2016, Sales promotion is considered as
an initiative which is widely undertaken by the business organisations in respect to promote
increase in sales, usage or trial of an organisational products or services. Sales is the key
consideration of each small as well as large business firm as increasing sales of a firm cause
higher profitability and growth. As a largest auto-maker company the major focused area of
Ford Motor Australia is to enhancing its profitability and revenue through developing the sales of
the firm (Nichols, Street & Cereola, 2012). The potential motive of the firm is to satisfying the
needs and wants of people within the commercial centre in respect to attaining higher sales
which reflects growth in the profitability of firm (Penrose, 2017). The profitability and revenue
has generated through the sales of vehicle, parts and accessories, an organisation mainly treat
sales and marketing initiatives as a reduction in revenue. The year of 2017 is the transition or
change for Ford Motors. The company has taken its steps forward to become the most trusted
mobility company around the globe. In 2017, the company has achieved their eighth consecutive
year of solid earnings and positive operating-related cash flow (Beets, 2011). The consistent
profitability of the firm has enabled them to distribute more than $15 billion to our shareholders
since 2012. While the organisation is pleased and proud to deliver these substantial profits, we
know that business as usual is no longer good enough in the rapidly changing business
environment (Soininen and et. al., 2012). As per the details of the annual report, profit of the firm
has rapidly increased, thus in the year of 2014 the estimated profit was around $12,174,000
which is increased and reached at $16,340,000. This estimation shows the drastic growth of the
firm which occurs through the increasing level of sales of the company. Sales has the positive
influence on the profitability of the firm.
The impact of sale on performance and goodwill of Ford Motor Company of Australia.
As per the opinion of Brian Beers, 2018, Sales is referring as the crucial aspect which
plays vast role in developing the overall performance of an organisation at global level. Now a
day's competition within market is on peak and the major concern area of an organisation is to
developing their brand image and profitability through increasing sales and revenue within the
market place (Sharma & Kumar, 2011). Ford Motors Australia is a large auto-maker company
and the key focused area of the firm is to satisfying the needs and wants of people within the
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market place in respect to developing the goodwill and brand image of the firm. Goodwill is
referring as the intangible asset which is owned and associated with the operations of the
company. The sales of an organisation are based on its brand image or reputation, so the key
consideration area of Ford Motors is to increasing organisational sales and revenue through
developing innovative and high tech products and facilities for their end users (Penrose, 2017).
Ford Motor was incorporated in Delaware in the year of 1919. The company has around 202,000
employees who operates the business operations of Ford at global level (Sierzchula and et. al.,
2014). The company majorly deals in designing, manufactures, markets and services a full line
of Ford cars, trucks, sport utility vehicles, electrified vehicles and Lincoln luxury vehicles etc. In
this competitive business environment, organisations require to develop their goodwill in respect
to attaining a higher competitive position within the market area (Malmendier, Tate & Yan,
2011). Ford has a good value and brand image within the commercial centre, thus company has
attained rapid growth in its sales which may cause higher profitability for the firm. High brand
image is effective for grabbing the attention of customers at global level.
Different ways through which Ford Motor Australia can increase its sale.
According to the opinion of Jennifer Lonoff Schiff, 2014, Each business organisation
wants its sales people to be more reliable and successful, as that is one who is very much close to
the sales operation of the firm. Ford Motor Australia is a large auto-maker company, which
operates its business operations at global level, thus for maintaining its position within the
commercial centre Ford Motors Australia has taken various measures in which some are
associated as below:
Pushing Price Down: In an automotive industry the potential concern on sales manager
is to consider the price of products and make appropriate changes in the price of product in
respect to fulfilling the desires of people within the market place (Clibborn, Lansbury & Wright,
2016). Matching the lowest prices on the market at any time can, however, be challenging as it
appears automotive businesses are already cutting costs wherever they can. The sales department
of Ford Motors is focused on selling the products in less price so that effective services can be
offered to the final users.
Detailed sales Report: As a large Auto-maker company it is essential for Ford Motor
Australia to keep proper details of sales and revenue in respect to making appropriate decision
for the benefits of the firm (Ford, 2011). Businesses dealing with automotive parts have many
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levels of information which requires to be included or excluded in respect to produce relevant
sales reports (Ford, 2011). Different customer types, product types or ranges, suppliers, and
geographical areas the business trades in all add to the complexity. Creating the right reports, the
traditional way can be near impossible for non-technical users.
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Research Methodology
Research Methodology is considered to be the most essential part of research project as it
plays effective role in providing support to the literature through selection of suitable
methodology (Bloomfield, 2017). This section of the investigation work is based on various
application that are effective or suitable for the research to reach at the potential outcome.
Type of Investigation
There is various sort of research that are being used by the researcher to perform different
types of research in appropriate manner. Research can have performed in two parts such as
Quantitative research and qualitative research. Qualitative research concerned on to give
qualitative outcome of research (Ford, 2011). On the other side, quantitative research related
with finding outcome of numerical part of research process. Researcher consider the qualitative
part because it gives effective outcome in the form thesis and hypothesis which can be read and
analyses in effective manner.
Research Design
Research design is recognised as the blue print of the research, which provides
appropriate outline specification to the investigator to implement all investigation activities in
appropriate manner (Beets, 2011). This section has categorised among three major aspects like
experimental, exploratory and descriptive research design. In the present exploration work
descriptive research design as it is most suitable tool for qualitative research and provides
descriptive analysis of the research issue.
Research Philosophy
It deals with various source, nature and development of Knowledge. Modern Research
philosophy can be divided into two section that is interprtivism and positivism. In this report
researcher have taken interpretivism research approach because this approach gives a qualitative
report which help the researcher to analyse the data at different aspects of certain phenomenon
(Smith, 2013). It interprets the social role of various other individuals based on researcher set of
meanings.
Data Collection tools
A research project is based on data and information which are accumulated by the
investigator to overcome with the research issue in appropriate manner. In an investigation work
data has been gathered through primary or secondary source of data collection. In the existing
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