FORD

Strategic Analysis of Ford



Strategic Analysis of Ford

Introduction

Ford is one of the oldest and the most trusted manufacturers of trucks and vehicles, in the world. It builds designs and sells cars. The main automotive brands of the company include Lincoln and Ford. Through its subsidiaries, Ford also offers vehicle financing services to its clients all over the world. The company has over sixty plants all over the world, across Africa, Asia Pacific, North America and Europe. The operating activities of the company consist largely of two segments; financial services and automotive services. Within this automotive business, the company is involved in the development, manufacturing, selling and servicing of trucks, cars and various service parts. Ford is known to all for producing a big range of vehicles, consisting of cars for medium, large and small premium segments, (Birsch, 1994). In 2012, the company sold more than five million vehicles all over the world.

Ford's automobile business is well organized into; Ford Europe, Ford North America, Ford South America and Ford Asia Pacific Africa. The sale of Ford and Lincoln brands are looked after by the Ford North America. In 2012, this sector sold more than two million cars. Ford South America and Ford Europe are largely associated in selling Ford related service parts in European regions and in South America. In 2012, these two sectors successfully sold more than four million vehicles, (Bradley, 2005). Likewise, the Ford Asia Pacific and Africa segment deals with Ford parts in Asian and South African regions of the world. In 2012, these sectors sold more than ten million vehicles.

Apart from the retail sale, the company is also involved in selling trucks and cars to its dealership for the purpose of sale to commercial fleet, everyday rental car companies and federal government departments. Ford also provides a big range of after-sale car services and products that include light repair and maintenance, along with collision repair and heavy repair with service contracts that are extended, (Bradley, 2005). These services and products are marketed under various brands that include Lincoln services, Ford custom accessories, Moto craft and Ford services. Ford's financial services segment includes Ford credit and various other financial services.

The Ford credit offers finance that is related to leasing, financing and insurance. There are other financial services in form of holding companies, leasing and real estate, for that matter. In the discussion, the external and internal factors that play their impact on the strategic decisions made by Ford is discussed, (Bradley, 2005). The external and internal environmental factors, such as the PESTAL analysis, SWOT analysis and market forces are discussed.

All these three play an important role in determining where the company stands and where it intends to go in the future. The internal environment of the company enables it to face the challenges that it faces in its external environment, and come up with ways of meeting the demands of the people and by offering them something different that no other company has provided ...