Environmental Factors Of Ford Motor Company

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Rapid globalization and technological advancement has made the business environment more complex than before. Firms are therefore forced to understand and adapt to the environment they operate in to successfully retain their competitiveness. Such environmental factors are either internal or external and include the economic aspects, political framework, socio-cultural aspects, technological business ethics, management, corporate culture and legal aspects. These factors determine the location, nature, personnel policies, distribution systems and prices the firm is to charge for its products. It is therefore important for businesses to understand the environment they operate to avoid going bust. Competition is continually changing the motor industry and companies, such as Ford Motors has to keep on changing its strategies to fit the business environment. Ford Motors was founded in 1903 in Michigan Detroit and is one of the oldest motor companies in the world. The company sells commercial vehicles, automobiles and luxury cars and has stakes in various…show more content…
thereby forcing the firms to compete for markets in the emerging economies thereby increase their market share. Ford has taken advantage of the emerging markets, such as China, Brazil and India by establishing franchises in India and Brazil, acquiring Jiangling in China, as well as buying stakes in other companies around the world to ensure presence of the Ford brand in the global market. Moreover, the intensity of competition in the motor industry is also fueled by the high fixed costs of manufacturing and the low switching costs as consumers prefer other models and makes. Ford has adapted to such rivalry by making a model for each consumer needs, for example Lincoln for the luxury-seeking consumer and trucks for the business-oriented consumer in addition to considering quality, durability and
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