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Ford Motor Company Swot Analysis

Essay by   •  August 13, 2011  •  Case Study  •  1,080 Words (5 Pages)  •  2,427 Views

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This is the final business analysis for Ford Motor Company before making the decision to invest in the company. The first section discussed the SWOT analysis, which determined the strengths, weaknesses, opportunities, and threats of the company. The second section discussed the financial health of the company, which determined if Ford is a good company to invest in and how it recovered during the recession. Topics that will be discussed include:

* How recent economic trends are influencing the business

* Ford strategies for adapting to changing market environments

* Tactics Ford has implemented or could implement to achieve their strategic goals

* The role human resources management plays in helping the company achieve its business goals

How Recent Economic Trends are Influencing Ford Motor Company

The recession has been one of the most challenging hardships for the United States. Due to this hardship, people are skeptical to spend large amounts of money. These people do not see a recovery occurring as many others are still unemployed. Banks are currently lending to consumers who have high credit scores, and the penalties for late payments are skyrocketing. Unlike many other companies, Ford has been able to recover and excel among its competition. "The company continues to lobby for transportation and infrastructure funding and has taken an active role in advocacy for government support of new technology and research to increase fuel efficiency in automobiles" (Ford Motor Co, n.d.).

Ford Motor Company values its stakeholders. The company takes into the effect that consumers are not spending as much, so the trend for producing smaller, more fuel efficient vehicles will encourage consumers to spend money. "Over the next decade, it is expected that growth is spending on vehicle and mix content will grow at least as fast as the real GDP per capita" (Key Economic Factors and Trends, n.d.). Ford also produces luxury cars with advanced technology to suit those consumers who can afford to spend more. This is a major contribution to Ford's global market. In order to stay in business, Ford must compete effectively globally.

Ford Strategies for Adapting to Changing Market Environments

Ford Motor Company focuses on increasing market share, while increasing the economic value of the company. Ford competes in a very competitive market where product offerings are similar. As a result, quantity offered will not raise or lower the price of their product. It is important that Ford maintains a sufficient market price because they cannot do much to affect it. Ford Motor Company continues to operate in this business environment by operating more efficiently than its competition.

Ford allows its consumers to set the price they are willing to pay for specific products and services. Generally, if there are more consumers than products or services available, consumers will pay more for them. "If Ford reduces their supply, competitors will produce more to make up for the shortage of supply" (Ford Report on the Business Impact, n.d.). This will cause a major loss in market share and prevent Ford from keeping up with the competition.

Tactics Ford has Implemented or Could Implement to Achieve Strategic Goals

Ford Motor Company has done an exceptional job surviving in a competitive industry driven by innovation. The company strives to meet the needs of its stakeholders by creating the best products and technology to keep their customers satisfied all over the world. Despite these



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