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Ford Case Study Analysis
According to studies, Henry Ford was the builder of the renowned organisation Ford. The organisation was started by building experimental car within a workshop during the year of 1896. Researchers have mentioned that the company was known as an American automaker which was known as the fifth strongest as well as largest vehicle sales considering the entire world. The company was firstly known as the quadricycle during the year of 1896. Studying the timeline of the organisation, it is important to know that the company is known as the maker of Lincoln brand and the company also contains all the stakes considering different vehicle-makers. The company was once known as the founder of Land Rover and Jaguar however, these companies are now sold to the Indian company Tata Motors during the year of 2008. During the year of 2010, Volvo was sold to Geely Automobile by Ford. Along with this, the company discontinued to serve the Mercury during the year of 2010. The official website of the organisation contains a detailed timeline of the organisation and also it records the corporate history. However, the company is associated with different issues including weak revenue generation, weak guidance and different weak sales. The study will analyse the performance of the company with two strategic tools including SWOT and PESTLE case study.
SWOT Analysis Technique
The following section will mention a proper swot analysis containing the elements of – strengths, weaknesses, opportunities and threats. The following diagram will be helpful to understand the strengths and weaknesses of Ford company and measure their performance issue.
Strengths | Weaknesses |
| · The company contains a global recognition. · The company invest a good amount on the procedure of research and development. · The company also provides diverse offerings to their consumers. · It also exhibits greater adaptability. · The company contains a huge network to support the diverse nature of the consumers. | · The company is observed with weaker foothold. · The company is also observed with declining reputation. · It is highly depended on the markets of United States.
|
Opportunities | Threats |
| · Opportunities completely depends on the external factors. · The company can utilise the concept of eco-friendly vehicles. · They can invest more on the procedure of strengthening the consumer base. · They can utilise the procedure of digital marketing to promote the name. · They can invest on providing self-driving car utilising the procedure of artificial intelligence. | · The company is threatened by huge competition. · Increased price of the raw materials is also a potential threat for the organisation. · The company is also associated with different regulations and compliances. |
Strengths
As shown in the aforementioned diagram, the company contains a huge global reputation. It is a well-known brand within the automobile industry. The company is also recognised for the huge success and excellent brand value ($12.74 billion) as per the financial report of 2018. The company is also observed investing a greater amount on the procedure of research and development. Along with this, Ford is always amusing the consumers with their diverse offerings. Along with this, the company has achieved the position within the industry through its capability to adapt new technology and serve the consumers with their excellent consumer portfolio. Finally, the company is connected with more than 62 countries covering the entire world.
Weaknesses
Apart from the strengths, the company is also observed with different weaknesses that have created different challenges for the organisation. Firstly, the company has suffered from an extreme loss to maintain their brand image as the products recall during the year of 2016. Researchers have also mentioned the products were also recalled during the year of 2015. Secondly, the company promotes diversified operations in different geographical regions. Hence, they feel difficulty in focusing solely on the procedure of productivity and performance. They do not contain any stronghold within the developing market place including India. As a result, the company is associated with weaker brand reputation. Finally, the company is also remaining completely depended on the foreign marketplace and losing its originality.
Opportunities
The environment contains huge opportunities within the environment. Firstly, they can invest on the eco-friendly transportation. The company features an adaptive nature to provide fuel-efficient vehicles. The company also include different initiative to enhance their consumer base. In this regard, researchers have suggested to invest on different digital marketing strategies. Digital marketing including the social media promotion and search engine optimisation will be helpful for the organisation. They can fetch more potential consumers for their business and maintain a long-term relationship with the important consumers. Finally, researchers have mentioned that the company should continue their investment on launching the self-driving car by adopting the latest means of artificial intelligence.
Threats
Considering the emerging challenges present in the macro environment, there are certain emerging threats creating huge obstacles for the organisation. Firstly, the company is associated with huge competition considering both the domestic and international marketplace. Secondly, the company is also observed with threat of increased prices of the raw materials and different restrictions related to regulations as well as compliances.
PESTLE Analysis
PESTLE components include – political, economic, social, technological, legal and environmental factors. As per the name suggest, all the factor belongs to the macro or external environment of the organisation. Analysis of all these factors will be helpful to understand impact of these external environmental factors on the organisation.
Factors | Analysis |
Political | To perform in a proper manner, the company needs to address different political aspect. It may include the aspect of political stability or political unrest of the country the company is presently operating with. It also includes government support for supporting the technological investment by the organisation. Secondly, the company is also need to understand the government policies and regulations related to different domestic and international trading agreements. Finally, the company also need to understand the initiative of the government to develop the technological infrastructure for the developing nations. All these situations belong to the political factor where the company can utilise different government initiative to support their agreements. Researchers have provided the instance of Europe where the company face different obstacles due to their political instability. |
Economic | Economic factor helps to understand the situation of government funding to help the company grow in different countries. Researchers have mentioned the example of Chinese market where the government is very rigid and restricted to invest on new businesses. Along with this, the existing organisations are also facing different restrictions to launch new product or adapt new facilities for the consumers. However, the researchers also mentioned that, the international trading market is not always rigid or restricted for the automobile industry as it represents the status of the entire nation. |
Social | As per the name suggest, this particular factor represents the perception of the consumers about the company. Including the trucks and vans, the company is much popular to its consumers. The consumers do not contain many options to propose a harder challenge for the organisation. Utilising the opportunity of eco-friendly automobile facility, the company can enhance the performance to attract the consumers at a greater extent. Along with this, the company is also providing a positive eye to promote the electric car and targeting the low- and middle-class consumers. In this regard, the company is winning over millions of hearts of the consumers. |
Technological | Technology plays an important role in promoting the business name over the entire industry. The company is also decked up with latest version of technology including the artificial intelligence and machine learning. The company is also actively adding new technologies to promote their vehicles. It is an expensive investment for the company where the company is also reusing the old cars of the consumers. Ford is becoming a preferred name for the consumers covering the entire world. the company has won millions of hearts covering the past decade. Researchers have identified that the infusion of modern technology will help the organisation to maintain their position within the market. |
Legal | Legal factors include the procedures or aspects of laws and lawsuits. This factor also includes labour and laws. The employees of the organisation are also provided with proper security and safety assurance maintaining the employability laws of a particular nation. Along with this, researchers have identified different issues the company is facing right now. For example, their fuel systems, transmission and airbags are associated with different lawsuits. However, the company is dealing in a proper way to remain ethically compliant in serving their offerings to the consumers. |
Environmental | It is the final component of the PESTLE analysis. As per the name suggest, the company is much concerned about the notion of sustainability and sustainability development. The company is trying to follow all the objectives of sustainable development goals developed by the member states of United Nations. Along with this, the company is also promoting eco-friendly services considering the community where they are dwelling. In this way, the company is maintaining the corporate social responsibility. It is one of the procedures to enhance their competitive advantage. These initiatives are also enhancing the corporate image of the organisation and keeping them one step ahead of their rivals. |
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