Essay about Strategic Analysis of Ford Motors Company

3516 WordsOct 30, 200915 Pages
Company Profile Ford Motor Company was founded in 1903 by automotive and industrial pioneer Henry Ford in Dearborn, Michigan. Being first to implement a moving assembly line for automotive manufacturing, Ford was able to more efficiently mass produce their products than their competitors. In 1908 the Model T was introduced and went on to sell over 15 million vehicles, firmly establishing Ford as the major player in the early automotive industry with 50% market share by the 1920s. The company went public 1956 and since then has grown to be a significant presence in the global automotive market. Financial ratios are useful indicators of a firm’s performance and financial situation (Friedlob & Schleifer, 2003). Ratios can be used to…show more content…
Prior to the economic crisis of 2007, Ford has become one of the most globalized of the automakers with research and design facilities as well as manufacturers and marketing operations around the world (Albaum et al, 2004;p).With its advantages in low costing, high volume, and availability of parts for service, it was able to rapidly expand its market (Leontiades 2000; p22-23). External Environment Challenges Economic Environment Doole and Lowe (2008) emphasizes how important it is for Global managers to understand the economic development in countries where it wants to expand to and how they impact on the overall strategy of the Firm (Doole &Lowe, 2008;pp 12-13). This knowledge is important at a world level in terms of the world trading infrastructure such as world institutions and trade agreements developed to foster international trade, at a regional level in terms of regional trade integration and at a country/market level (Doole &Lowe, 2008; pp 12-13). b) Technological Challenges A peculiar trend which was prevalent in the last decade, besides globalization, was a limited number of producers which emerged due to diversity among products and uniformity across national markets (Agarwal, 2004). Amid global conditions that amount to an economic and industry crisis, the world’s auto-makers still consider innovation and technology to be the most important trend over the next five years. Fuel efficiency improvements, alternative fuel technologies and

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