Ford Motor Company And The American Geopolitics

1324 WordsMar 16, 20176 Pages
Ford Motor Company and the American Geopolitics Name: Yixin Zhang ID: 1101494 Introduction Even in the most subliminal of forms, geopolitics has the capacity to impede the income generation ability of an organization. According to Munoz (2013), the essence of organizations to be consistently cognizant of geopolitics hinges on the need to mitigate the risks inherent to the operating environment. In line with this understanding, it is apparent that the implementation of effective risk management measures enables an organization to address the challenges attributed to geopolitics. Ford Motor Company has experienced some potentially negative aspects of geopolitics. In the recent presidential debate, the organization faced…show more content…
The existence of such detrimental claims presented some significant risk to Ford. Geopolitics has the potential of affecting the operations of an organization in the context of efficiency, profitability and public perception. According to Segal (2011), geopolitics has the potential of affecting the efficiency of business especially in the context of the local operations. In the context of Ford, the local manufacturing plants may start to record a decline in the performance level, emanating from reducing motivational levels of the employees. In line with the provision of Hertzberg’s theory of motivation, employees need to work in an environment characterized by enabling conditions, best exemplified by high satisfaction levels. Essentially, the perception of job loss by the employees tends to reduce the satisfaction levels, thereby culminating in a decline in the employee motivation level. Given the association between employee motivation and performance efficiency, the presence of negative geopolitics tends to pose a significant risk to the business. Aside from this, the profitability of a business can also be impeded by geopolitics, given the decline in demand (Jordão & Sousa, 2010). In the context of Ford, the decline in business profitability may emanate from the negative publicity, which is turn culminates in declining customer loyalty. According to Tarantino & Cernauskas (2009), there is an
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