Business Decision-Making Case Study: Ford Motors

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Decision-making case assignment 1: Ford Regarding Option 2, completely shuttling the company's SUV and large truck brands would be problematic. First, many of these cars are iconic aspects of the Ford brand image. Secondly, although the price of gas is likely to continue to increase, consumer demand for larger vehicles cannot be predicted to reliably contract. This is particularly true internationally. "SUV demand in China jumped 20 percent last year, more than triple the growth in total passenger-car deliveries, according to data from the China Association of Automobile Manufacturers. SUV demand continues to outpace other vehicle segments, with sales up 18 percent in the first quarter, bucking the slump in the broader market, where deliveries fell for the first time since 2005" (Tiger moms cravings SUVs, 2012, Bloomberg). This development touches upon Option 3, namely the company's potential for profitability for it to expand internationally. While there is demand for more fuel-efficient vehicles, to remain competitive on the world scene, Ford must also respond to demand patterns abroad. And strategically, it seems unwise to cede China to its major competitor, GM, which has established an extremely strong foothold in this rapidly-expanding market. In contrast to the US, demand for vehicles is growing at a rapid pace in China because of the rise of the middle class. However, increasing capacity to produce smaller cars is necessary, particularly to remain competitive in the
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