ECONOMIC ENVIRONMENT ANALYSIS

Economic Environment Analysis of the Business

Executive Summary

In this paper, we try to focus on the Ford Motor Corporation. The paper highlights the basic introduction of Ford Corporation. The paper also discussed the overview of business that is products, markets, value creation. In this paper, we also highlight the Business Cost in the short run and the Long run. The paper also discussed the Market Structure and Ford competitors & regulators. It also explains macroeconomic environment of the Ford. The paper also discusses the International environment that is Ford global business conditions and exchange rates. It also discussed the competitive strategy covering next four years of Ford. In the final paper, conclude with the overall discussion in the paper.

Economic Environment Analysis of the Business

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 it headquarter in Dearborn USA. The main competitors of Ford Motors are Toyota Motor Corporation, Tata Motors Limited and Hyundai Motor Company. In this paper, we try to focus on the Ford Motor Corporation. Henry Ford's introduction of the moving assembly line at the Highland Park factory near Detroit in 1913 initiated a vast revolution in the world of work and production, taking mass production to new heights of productivity and profitability. By pioneering a form of production centered on vertically integrated firms and enormous economies of scale, Ford developed an entire ensemble that became the model for most forms of manufacturing throughout much of the 20th century. (A similar system was adopted by Alfred Sloan of General Motors, who also introduced planned obsolescence.) The process worked spectacularly, generating millions of jobs and relatively high wages (and unions) and raising standards of living (Baldwin, 2000).

Overview of business: products, markets, value creation

In 1895, only four automobiles were registered in the entire country, although this number grew to 8,000 by 1900 and to 458,000 by 1910. The automobile soon displaced rail as the dominant intercity carrier of goods and people. What Ford called the “family horse” evolved into the Model T, the first automobile to gain mass acceptance, whose price dropped in half between 1913 and 1916, initiating a privatization of transportation unparalleled in history. Ford has various target markets for various classes of vehicles.

For its truck line, Ford is targeting blue collar workers such as trade's people who require trucks for their line of work. Stereotypically, trades workers are mainly male ranging in ...