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Critical analyse of the external and internal environments of Ford Motor Company

TABLE OF CONTENTS

1.Introduction (3)

2.Background of Ford Motor Company (3)

3.External environments of Ford (4)

3.1Political factors (4)

3.2Economic factors (4)

3.3Social factors (5)

3.4Technological factors (5)

4.Internal environments of Ford (6)

4.1Strengths (6)

4.2Weaknesses (6)

4.3Opportunities (6)

4.4Threats (7)

5.Strategies for Ford in the next five years (7)

6.Conclusion (8)

Reference (9)

1.Introduction

Globalization will impact on the formulation of organizational strategies. The boundary of the country can no longer restrict the imagination of people, so whether the decision makers can formulate proper strategies for their organizations is the key factor that determines the future development of the organizations. In the process of formulating strategies, it is important for decision makers to have a detailed analysis of its external and internal environments so as to formulate ideal and proper strategic objectives(Superkentman, 2011a). In this report, it will analyse the external and internal environments of Ford Motor Company, and then based on the analysis of external and internal environments, it will suggest plausible strategies for Ford in the next five years.

2.Background of Ford Motor Company

Ford Motor Company is one of the world's largest automotive companies. Henry Ford founded Ford Motor Company in 1903 in the United States. After years of evolution and development, Ford Motor Company has become the world's super-multinational companies in automotive industry. In the meantime, Ford Motor Company is also the world's fourth largest industrial enterprise(Mitra et al., 2011). As Ford has a wide range of businesses which include electronics, glass, auto parts, space technology, satellite communications, and defence engineering, equipment leasing and car rental, etc., it has been estimated that there are about 360,000 employees are employed in Ford around the world serving for the automotive, agricultural, financial and communications industries. It is not accidental for the success of Ford(Mitra et al., 2011), but instead, the decision makers of Ford have made proper and accurate strategic objectives according to the external and internal environments. As one of the most successful multinational companies, Ford has to overcome a great number of challenges and difficulties in order to have sustainable development in the changing business environment. In such case, it is extremely important for decision makers to analyse the external and internal environments of Ford to make out its advantages and disadvantages, and thus make a practical strategies.