Ford Motor Company Analysis

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External and Internal Environments

Automotive Industry - Ford Motor Company

Choose the two (2) segments of the general environment that would rank highest in their influence on the corporation you chose. Assess how these segments affect the corporation you chose and the industry in which it operates.

The general environment for Ford and the automotive industry in general can best be characterized by weakened economy and emerging social and political trends that are demanding higher efficiency vehicles. Although the economy has substantial stabilized since the Great Recession of 2008, it is by no means made its way back to a full recovery. Ford was also in the strongest financial position of the big three American automobile manufacturers and was able to post massive increases in sales and profits in as early as 2010 after broad sweeping restructuring efforts (Hirsch, 2010). The company also provided it could be profitable within a low volume sales environment which indicates its resilience in a new automotive market.

Figure 1 - Job Growth in the Auto Sector (Hwang, 2012)

Another critical environmental factor is the new demand for more efficient vehicles. Much of this is due to higher fuel costs as well as environmental concerns. Since June of 2009, vehicle sales are up greatly year-over-year, and it is sales of fuel efficient vehicles that are driving overall sales growth as consumers rank fuel efficiency as their top priority in seeking a new vehicle.
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