BUSINESS

Business



Business

Introduction

The main purpose of this paper is to make an analysis on the two companies which are to be extinct by 2030. The two companies selected for this purpose are Ford Motor Company and Jefferies & Company Inc. These both companies are in bad period, and the business of these companies is decreasing day by day.

Ford Motor Company

Ford Motor Company (Ford) deals in production of cars and trucks around the globe and is considered as the largest producers. Ford Motor Company has many subsidiaries and affiliates and is famous in specialization of producing cars, sport utility vehicles, trucks and other products and services. Ford Motor Company supplies these products to almost 122 countries and serves the automotive consumers of these countries. The company also performs other functions like car financing, leasing, rentals and other operations related to financing activities. The main brands of Ford Motor Company are Ford and Lincoln. The main operations of Ford Motors are classified into two business sectors i.e. Financial and Automotive Services. Ford Motors Company has its headquarter in Dearborn USA. The main competitors of Ford Motors are Toyota Motor Corporation, Tata Motors Limited and Hyundai Motor Company.

The Ford Motors company is facing two management issues one from macro environment and one from micro. From the macro level, the company is facing problems with the government regulations on duties of cars on export. Similarly, in micro level, Ford Motors is facing problem of employee turnover. The turnover rate of Ford's employees is increasing day by day which is a serious problem for Ford Motors. Ford Motors can improve its strategic posture by finding buyers who possess the least power to influence it adversely (Aaker, 2009). Different companies may select different buyers. Porter (Baalbaki, 2003) stated that the basic strategic principles to determine the best buyers were 1) Diagnosing the purchasing needs of buyers; 2) Investigating the buyer's growth potential; 3) Identifying buyers with low intrinsic bargaining power; and 4) Identifying buyers with high costs of serving.

Following are the main threats and weaknesses faced by Ford Motors:

Development and promotion of the automotive industry in other localized areas closed to the department, with a wide range of infrastructure and promotion activities (Baalbaki, 2003).

Exchange rate policy, with respect to neighbouring countries and region

Limited range of recreational and diversified automotive products, where the existing proposals work in isolation and individual, which leaves them less weight in the concert of the regional market.

Ford Motor Company is facing a strong competition with other automotive companies having the similar activities and has gained a competitive marketing advantage.

The devaluation of currency is also a threat for Ford Motor Company because it affects the increase in price.

Lack of infrastructure at the departmental level: signage, information points in the interior, etc. Insufficient guidance to suppliers

Poor coordination between different areas of government in the automotive industry (national and municipal)

Lack of regulatory frameworks governing the functioning of the sector at the departmental level

Thus, the sales of the company are also declining with ...