An analysis of Ford Motor Company Ltd using PESTL and business process plans
Introduction to Ford Motor Company
Ford Motor Company Ltd, which was founded by Henry Ford in 1903, is now a leading
car manufacturing company in the world. The Ford Motor Company Ltd has about
164,000 employees, 70 plants as well as manufactures or distributes autos in six continents
in 2010. The company also provides financial services all over the world through Ford
Motor Credit Company. In 2010, the net income is $6.6 billion.
Part One:
In this part, I will analyze the importance of the external environments to Ford Motor
Company which may lead to changes in the business operations of the company using
PESTL analysis as well as a systems diagram.
Political factors
Laws: if a country changes its laws about the car manufacturing, for example, if a country
changes its law of the emission of the carbon dioxide in order to protect the environment,
the Ford Company must redesign their products to obey the law. This shows that changing
laws in some countries may have strong influence to the Ford Motor Company.
Relationships between countries: Ford has some technological cooperation with the other
countries, if the relationship between the two countries becomes bad, the government may
delay or even cancel some of the projects. Also, the Ford Company raising the funds in
many other countries, if the relationship between the American and the country which Ford
is now raising money from becomes not so good, the Ford Company may feel hard to raise
money from that country.
Labor Unions: Labor union always plays a vital role in the organization of a company. If
the labor union believes the workers in Ford are not well treated, such as not well paid,
work for too long hours, do not have enough pensions or whatever, the union may fight for
the workers within the business law. Such situation is sometimes a political influence to a
company.
Economical Factors
Economic development: economic development is a major part of economical factors
because if the economic develops fast, the people in that country will have more money,
and maybe they will buy a car or buy a new car. On the country, in the financial crisis
during 2006 to 2009, the economic all over the world became stagnant, the people may
because not willing to buy a car during that period.
Target market size: Ford had different target markets in different periods and different sizes
of the markets as well. Again, if the GDP in the target market grows fast, the people may
