FORD MOTORS COMPANY

Ford Motors Company

Ford Motors Company

Introduction

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.

Literature Review

There are different challenges faced by the Ford Motor Company. These challenges can be better understood by using the different analysis tools like PEST Analysis, Porter's Five Forces and SWOT Analysis.

PEST Analysis

Following is the PEST analysis of Ford Motor Company.

Political Factors

The main political factors associated with the Ford Motor Company are as followed. The local authority support for the automobile is declining continuously. There is a great potential of withdrawal preceding the changes in the administrative control. There is also lack of coordination in the cars agenda. The political factors have greatly influenced the regulation of the automotive industry in UK (Aaker, 2009, p. 137). According to the research and other findings there is stability in the UK environment. The only issues that affected the political stability of the government are the extension of European Union and the war against terror. The taxation policy of the government is also increasing day by day and has affected the buying behaviour of the people in UK.

Economic Factors

There are some economical factors which can affect the market of Ford Motor Company for UK. These are the factors through which the purchasing power of the potential clients is affected. The economy of UK has low inflation rate which is considered as the benefit and good sign for the companies. The rate or inflation has decreased to 1.3%. Another good factor for the Ford Motor Company is that the unemployment rate of UK is very high and; therefore, the rate of spending is also high. This is a very good sign for any company who wants to start its business in UK (Bartlett, 2009, p. 34). It is calculated that the GDP of the country is also increasing at an accelerated rate and which is also increasing consumption level of customers in UK.

Social Factors

In UK, the access of the Internet is growing day by day. Statistics show that almost 29.8 million households have access to the Internet. This ratio increases the trend of online buying and marketing, which could be helpful for the Ford Motor Company in a sense that they can start their online marketing ...