StudentShare solutions
Triangle menu
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

International Business Strategy for Ford Case Study - Essay Example

Ford also started to build electric cars. The political forces facing this industry are getting more and more severe. There are many groups in the society which are demanding stricter environmental norms for the automobile industry (Hoffman, 2012, p. 211). Ford has so far done a good job in maintaining the image as a worker’s truck. Ford has attracted the attention of other social and economic groups which have high-class luxury vehicles. Ford operates in many international countries such as Australia, Japan, UK and America where the business operations are conducive. In 1975, the Corporate Average Fuel Economy took effect, and Ford was able to abide by the regulations. Non-compliance with these laws caused heavy fines, which would prove costly to the company. This made Ford manufacturer one of the most fuel efficient and environmentally friendly cars. The Government also discourages Ford to fully automate its operation which would otherwise result in increase of the unemployment rate. Economic forces The leading manufacturers of the vehicles were mainly companies from United States, Western European and Japanese companies. Ford used to produce more vehicles outside their home country than within their own country. The auto industry remained fragmented. In 2010, there were a total of 18 manufacturers with their annual output being more than 1 million vehicles. 3-firm concentration ratio which is measured by the units of production was around 31.5 percent. There were many mergers and acquisitions in the auto industry; still they faced new competition from other countries especially India and China. Figure 1: Mergers & Acquisitions among the major automobile manufacturers. (Source: Ledderhos, 2003, p.68) (Source: Ledderhos, 2003, p.67) Strong competition from the companies forced Ford to go for cost reduction through economies of scope, economies of scale, worldwide outsourcing, off-shoring, just-in-time scheduling and collaboration. In spite of the many cost reduction techniques, the major automakers were still unable to rival the low cost automakers from India, China and elsewhere. The euro zone crisis further exasperated the problem of Ford (Ireland, Hoskisson and Hitt, 2010, p. 75). Social Factors The social factors which affect Ford are the changes in the social classes in the world market. With increasing globalisation the car market is witnessing increase in spending from the middle and upper middle income families all across the world. The lines between the social strata are diminishing. Hence companies all around the world are now targeting the middle income group to increase their volume sales. This helps the motor company in expanding their market across the world. This results in more manufacturers coming out with products which cater to the middle income people and results in rise in competition (Stead, Stead and Starik, 2004, p. 89). The consumers are now demanding better quality, safer vehicles at lower prices which have forced Ford Company to produce cars at cheaper ways like outsourcing the parts of their production in outside countries. Hence the company needs to adopt new processes and methods of creating attractive, unique automobiles ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“International Business Strategy for Ford Case Study Essay”, n.d.)
Retrieved from https://studentshare.net/business/115947-international-business-strategy-for-ford-case
(International Business Strategy for Ford Case Study Essay)
https://studentshare.net/business/115947-international-business-strategy-for-ford-case.
“International Business Strategy for Ford Case Study Essay”, n.d. https://studentshare.net/business/115947-international-business-strategy-for-ford-case.
  • Cited: 0 times

Summary

International Business Strategy for Ford Case Study Table of Contents Question 1 4 PEST Analysis of Ford 4 Political forces 4 Economic forces 4 Social Factors 6 Technological Forces 7 Opportunities of Ford Company 8 Threat of Ford Company 8 Barriers to Entry 9 Question 2 9 Strengths 9 Weaknesses 10 Ford’s Strategies to Address Internal Weaknesses 10 Key Strategic Resources and Core Competencies 11 Question 3 15 SAF Framework 15 Question 4 20 References 23 Question 1 PEST Analysis of Ford Political forces The political forces influence the strategic decisions of Ford Motor…
Author : okonjimmy
Download 2
International Business Strategy for Ford Case Study
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"International Business Strategy for Ford Case Study"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

International business strategy case
The selection decision of multinational firms by Brazil depends on low costs of goods from countries such as China. China produces less costly materials, which Brazil sees as an advantage when it comes to assembling cars. As Marco Polo suggests, the main attraction of business in china is usually cheap labor, low interest rates and effective infrastructure.
6 pages (1500 words) Essay
International Business Strategy Case Study
This therefore required a greater flexibility as well as determination in the negotiation process in order to ensure that different phases of the project are conducted in most optimum manner. What is however, important to understand that Shell has not be successful in ensuring that its stakes are completely secured.
3 pages (750 words) Essay
Business strategy
As a result of that, companies nowadays formulate and pursue flexible strategies. The development of the corporate strategies takes into account the scope and purpose of the activities of the organization and also the nature of business. Apart from that the external factors such as business environment, the position of the company in the market place, and the intensity of competition it has to face are also considered while formulating the corporate strategy.
4 pages (1000 words) Essay
Business Strategy Case Study
But from then on, spiraling oil prices resulted in a customer shift away from the big GM cars to more fuel-efficient small Japanese cars. Even though GM has successfully adopted Japanese lean manufacturing technology, thereby reducing defects per car, inventory holdings and costs, its competitors - the American, Japanese and European - have fared better.
10 pages (2500 words) Essay
International Business Strategy Case Study
Problems associated with too much or too little subsidiary or joint venture autonomy, and too much or too little entrepreneurial behaviour by subsidiary or joint venture managers. The report analyzes the internationalisation strategy required in identifying and selecting a suitable country in Europe that will best meet the major objectives of the Indian Motors in terms of both technology and manufacturing aspects.
9 pages (2250 words) Case Study
International Business Strategy - Case study
The early market leaders capitalized on the developed market's demand for oil refining, cables, heavy manufacturing, and energy; coupled with the national agenda to boost exports through consolidated economic growth in electronics, refining and chemicals, the chaebols and the Korean electronics industry found it easy to expand their businesses.
4 pages (1000 words) Essay
Case Study International Business
The secondary reason has to do with the fact that IBM had reached a level of maturity at which it necessarily saw fit to develop its assets into a more multinational enterprise. As such, at this
2 pages (500 words) Essay
Business / Total Quality Management - Xerox case study
At the same time, the company has offered automotive finance, vehicle leas and vehicle services among others. As a large multinational enterprise, Ford Motors has emphasized innovation and
8 pages (2000 words) Essay
FORD BUSINESS REPORT
Instead of relying on the government, the company was stable enough to overcome the tumultuous time. Notwithstanding these accomplishments, some factors that have recently emerged could
10 pages (2500 words) Essay
International Business Strategy / Case Study 2
al., 2011). Correspondingly, this particular study will focus on comprehending the strategic positioning of HSBC in the present day business environment. The company is one of the noteworthy names
5 pages (1250 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic International Business Strategy for Ford Case Study for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us