Ford many other countries. The company designs

Ford
Motor Company (Ford) is based in America and was originated in June 16th,
1903 by Henry Ford with eleven (11) associate investors. In 1919 the company
was reincorporated, with Ford, his wife and his son obtaining complete
ownership of the business. Henry Ford’s first car was assembled at the Mack
Avenue plant in July 1903. In the 1911 he established the U.S. branch and
opened the first foreign production plant in England in 1913. The brand includes Ford, Aston Martin, Jaguar, Lincoln, Mazda, Mercury,
Land Rover and Volvo. Ford is a multinational enterprise with approximately 300,000
employees and 108 plants worldwide including the United States, China, Mexico,
Canada, the United Kingdom, Germany and many other countries. The company designs
and manufactures a line of Ford cars, sport utility vehicles, trucks, tractors,
as well as service parts and accessories across the world. Ford main
competitors are General Motors Company, Toyota Motor, Honda Motor Company and
Tesla Motors. The company sells its dealership for retail sale, car rental
companies and government organizations. Ford aim is to develop products that
serves the changing needs of people globally in the automotive industry.

 

 

 

EXTERNAL FACTORS
AFFECTING FORD MOTOR COMPANY

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GOVERNMENT INVOLVEMENT
IN BUSINESS

 

One of the external factors affecting the auto industry is
the way in which government is involved in business. Their involvement can negatively
impact the profitability and sustainability of the organization. In some
regions government has increased taxes on luxury vehicles which can
significantly impact the profits that some of these companies make and as such,
can lead to a competitive disadvantage. This can affect customers in an adverse
way resulting in higher prices for vehicles. However, there have been
implications for Ford. Ford makes it more affordable by offering consumers a
build and price model based on their budget.

 

CONSUMERS DEMANDING
MORE VALUE FOR MONEY DURING A RECESSION

 

The economic
climate also affects the decision making of the auto industry. Economic upturn,
downturn and recession can affect the purchasing power and spending habits of
consumers. When the economy is in a recession, consumers are spending less and
demanding more value. Ford has introduced a new line of cars such as the hybrid
that can be more affordable for consumers and beneficial for the environment.
The hybrid electrical vehicle saves the customer the expense of purchasing gas
resulting in a competitive advantage. Ford and Toyota jointly develop the
hybrid vehicle and split the cost of research and development.

 

 

 

Threats of substitutes

 

The threats of
substitutes in the auto industry is considered to be high when there are alternative
products and services with lower prices and superior performance. In some regions
the gas prices has increased and people are now switching to public modes of
transportation. This will significantly impact the level of sales in the auto
industry but not reverse them resulting in a competitive disadvantage. In order
to minimize this threat, Ford offers