Ford Motor Company's Value Enhancement Plan (A) Case Study Help
Introduction
The Ford Motor Corporation is the largest truck manufacturing in the entire world and after trucks, it is well known for the production of general motors. (Perold A. F., January 22, 2001)The ford motor corporation is the world's second largest manufacturer of trucks and cars. The company was established by Henry Ford and some investors in the year 1903.The ford motor corporation also does the business of running vehicles on rent. The corporation also manufactures the spare parts of the trucks and other automobiles. From the 1950 to 1960, the corporation completely focuses on the diversification of business.
After a few years in 1990, the corporation increase its attention to the financial services and business of automotive. With the changing in economic factors the company affects. The company increase its value and brand recognition mainly through the Acquisition with other companies of automobiles. In 1987, the ford motors acquire the hertz corporation. In1989, the company gain the jaguar cars and in 1999 the company the company acquire the Volvo cars and at the start of 2000 the Ford Motors acquire the land rover corporation.
Problem Statement
What is the effect of the acquisition of ford motors with other companies? And what is its effect on the future expenditures of the corporation?
Goals and Objectives
Ford Motor Corporation, being one of the familiar and reliable vehicle has set some goals.
'Goal is to create a distinguishable, appreciable, reliable and hysterical brand experience which at the same time provides sustainable lifestyle and maintains the safety and standard of customers' life and indirectly affecting on the growth of business'.
- Supports the idea of an air of friendly environment by minimizing the CO2 release
- Facilitates the transport of goods with more safety and protects the goods from any excessive jerks
- To Promote and Aware the Society about the Autonomous Driving providing benefits to the customer
- To provide more comfort and excellent services to the customers
Competition
The rate of competition is high in the industry of automobile manufacturing. Some competitors are listed below. The major competitor of the company is General Motors. (Pedro, 2014)
Competitive advantage of the Corporation
The Ford Motors Corporation is the tough competitor for all the auto motors companies which manufacture trucks and other vehicles. (Elmuti, 1997)Ford Motors earns a lot of revenue from its vehicles in multiple markets. The competitive advantage of a company originates from their advance research and technology. By understanding the environmental factors, the company gains the competitive advantage. Ford Motors also gives complete focus on cost leadership strategy. The competitive advantage of the company is that the vehicles of Ford Motors differ from other in battery limit, designs and product portfolio. The tesla has diversified vehicles. Competitive edge for the corporation is the customer loyalty and brand image.
Case Analysis
In the case analysis, we analyze the factors which affect the business of the Ford Corporation and what is their impact on the Acquisition. For better understanding of the situation of Ford Motor Corporation, we discussed below the SWOT analysis, Pestle analysis, value chain analysis and porters' five forces model.
SWOT Analysis
Strengths
Ford Motor Corporation has strong brand equity because the customers are loyal to brand and the automobiles of the Ford Motors are influential. Research and Development department of Ford Motor Corporation is very strong because all innovations in product planned in this centre. The company has the strong acquisition chain with some mind blowing automobile corporations.(Wee H. M., 2009)
Weakness
Competition rate is very high some competitors those who also the offer same type of, automobiles so the competition is a major weakness for Ford Motor Corporation. The financial prosperity of the corporation is also not much good.
Opportunities
Ford Motor Corporation must take benefit of the markets of India, Bangladesh and Pakistan and be directing in assembling alternatives. The Ford Motor Corporation increases the product portfolio, which increases the revenue of the company and satisfies the investors by giving them good dividends.
Threats
Changing trends: changing trends are the basic threat for Ford Motor Corporation because change in climate, divert the brain of people towards these automotive products. People are more conscious towards their health and most of the countries going to obsolete cars and other vehicles. Other threat for the company is that many substitutes are to become in the market who offer greater features vehicle in reasonable rates compare with Mercedes.
PESTEL Analysis
The pestle analysis is also important for understanding the factors which affect the operations of the Ford Motor Corporation.
Political factors
Political factors affect the Ford Motor Corporation because they are doing business in international level.
The political forces can be work positive for the Ford motors the government support, trade agreements of international level are the beneficial for corporation.
Economic Factors
The economic factors all affect the business of the Ford Motor Corporation in a positive and negative manner.(Keating, 1999) Currently, the increase in inflation, unemployment and tax rates affect negatively to the company because the purchasing power of the customer is depends on these all factors and the vehicles became more expensive. So the people must search for the substitute.
Social Factors
The social factors of the company has positive effect on the business. Because socially, the services of the Ford Motor Corporationare high in demand and most of the customers feel safe to travel on the vehicles of ford motors. The Corporation adapts the culture of every country where they expand the business and this thing increases the market value of the Ford Motor Corporation.
Technological factors
The Ford Motor Corporation has the strong research and development departments. With the advance technology of company the passengers can book the vehicles online from where they want to purchase. The technology of the company is also on the advance level, which helps the corporation to expand its business in huge business portfolio.
Environmental Factors
The company understands the environmental factors of every market and then starts its operation in the new market. It is favorable for the Ford Motor Corporation. The employees of the corporation manage the factors which can be mitigate.
Legal Factors
The legal factors are also in favor with the Ford Motor Corporation because the company follows all the legal factors of health and safety of employees, government policies of workplace and the laws of employment with the safety measures of customers. The copy writers, patents are also safe for the Ford Motor Corporation in every market because the intellectual property of the company is most valuable and the corporation invest a lot of money on standards and benchmarks of the company.....
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