Unit 4 Individual Project

Unit 4 Individual Project

Introduction

The aim of this assignment is to compare and contrast two giants of automobile industry including the Ford Motor Company and Toyota Motor Corporation. This assignment would analyze the internal and external environment and the propose strategies for the two multinational organizations. The assignment aims to better identify the current position of the companies along with their future plans in order to achieve competitive advantage.

The SWOT analysis of both the companies can be used as a tool of identifying the weaknesses of the companies and action plans to convert these weaknesses into strengths. Within its community, an organization develops a relation between political forces and economic forces. Both, Toyota and Ford recognize the significant of coming up with strategic plans that direct them on how to achieve productive relationships. This enables the companies to build brand name, which is done by both companies successfully. In order to represent the current position of Toyota and Ford in the market, this paper would include the evaluation of the companies.

Discussion

There are various common problems that are currently being faced by both of the organizations including the competition with other auto firms, current economy, and customer's demand for ecological friendly, lower cost and alternative fuel vehicle.

Present your data in the form of a comparative table

Issues

Ford

Toyota

Legal, Social and Economic Environments

 It becomes important of the company to follow each and every law regarding the running of the company in United States. Fords has been quite successful in taking care of all necessary precautions to ensure that the vehicles of the company fulfill the inspections as imposed by the American federal government.

The company is currently facing the problem of patients as other companies in the industry are trying to copy the products of Ford.

The economic factors for the automobile companies in America did not prove to be fruitful for Ford Motor Company. Due to the 2008's recession, the company has to suffer decrease of sales revenue. However, the strategy of Ford to adapt the changing economic factors enabled it to maintain a strong competitive position in the market.

The company has invested a large sum of money in promoting itself through advertisement in order to let customers understand the creativity and innovation of the company. Environmental factors are extremely important for Ford as they are catering all kinds of consumers in the market.

 Legal factors for Toyota include the rules and regulations of Japan along with international laws that may influence the running of the company. Toyota's products are widely sold in the Asian market.

The changes of import duty rates have huge impact on the profitability of Toyota. The company has been very consistent in following all the legal obligations. The industry of automotive has shown effective recovery after the recession in Japan.

The company has to pay dollar 8.1 billion for the government emergency loans.

The compliance of laws regarding the corporate social responsibilities is quite strict for the companies running in the sector of ...