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Ford Motor Company

Essay by   •  November 25, 2011  •  Case Study  •  419 Words (2 Pages)  •  1,879 Views

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The objective of this report is to provide the reader detailed information on how to face current and future challenges for Ford Motor Company, related to the impacts of the rising oil prices. It also should encourage our company to redesign future car.

A global view of the oil price issue at hand and its effect on the Ford Motor company business were identified. There are many issues which could alleviate the influence of rising oil price and the key issues were identified.

Furthermore the main reasons for rising oil prices are speculation, political instability, U.S. dollar, world demand growth, low interest rates, emerging market demand, global economy is seemingly set for growth and reduction in available export volumes. The report also discovers natural gas, hydrogen, electricity and biodiesel powered car and biodiesel electric hybrid and hybrid electric car would be the best solution for alleviate the pressure of rising oil price and gain profit from it. Finally the future improvement on these six types of car and implication of this plan are being examined in this report.

The report recommends Ford Motor Company to adapt and respond quickly to a fast changing business environment due to rising oil prices. Oil price challenges thereby should also be seen as chances to develop advantages for the company. Finally decision making in order to achieve long-term success for the company needs to be encouraged.

. Introduction

Higher oil prices are beginning to trigger havoc far beyond the petrol bowser. Slowly but certainly, the rise in the price of oil is pushing up interest rates and inflation and affecting share markets and people's spending habits. (Bina, 2006) Oil consumption is around 5 per cent of the world's gross internal prices and product increase 20 per cent recently, Gavyn Davies of Fulcrum Asset Management predicted that the recent price rises would raise total expenditure on oil by about 1 per cent, with offsetting reductions in demand for other services and goods. (Chris, 2011)

The objective of this report is to inform the CEO of the Ford Motor Company and his management team about impact of oil prices on Ford Motor Company and recommendations the ways to deal with this issue and how to implication plan were provided.

It was predicted that the oil price will continue rising, natural gas, hydrogen, electricity and biodiesel may become Ford Motor Company's alternative future fuel resource and biodiesel electric hybrid and hybrid electric vehicle may alleviate the pressure of oil price and that the company have to reconsider our car design.

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