Category: Ford

Background and Problems Facing Ford

Ford is one of the revered car brands in the global market. The Ford Motor Company has “its headquarters in Dearborn, Detroit” (Hoffman 5). Henry Ford founded the automobile company in 1903. The firm has become a leading manufacturer and marketer of automobiles around the globe. The firm is known for producing the Lincoln and Ford brands. Ford competes with different companies such as General Motors (GM), Volkswagen, Toyota, and Mercedes Benz (“Ford: Competitive Advantage” par. 2). Throughout the years, Ford has been using powerful approaches to attract more customers and improve its sales. For instance, the introduction of the Ford Mustang in 1964 revolutionized the firm’s performance.

Ford also introduced and marketed new vehicles in different parts of the globe. The success of the firm led to the acquisition of Aston Martin in 1990 and Jaguar Cars in 1994 (Hoffman 27). However, the beginning of the 20^th century was characterized by numerous challenges such as increased fuel prices and healthcare costs. The company’s sales also decreased significantly (Hoffman 27). These issues affected the firm’s productivity and profitability.

Despite these mixed results, Ford has continued to embrace the most appropriate strategies in order to create and hold value. To begin with, the company examines the changing needs of different consumers in order to promote the best practices. The Ford Motor Company also embraces new technologies to produce superior cars that can compete successfully in the market (“Ford: Go Further” par. 3). The firm uses the power of research and development (R&D) to engineer appealing vehicles for more customers. These approaches have led to new competitive advantages. Such strategies continue to create and hold value for the organization.

Key Insights Identified for Better Competition

From 1980, the Ford Motor Company began to monitor the major issues that promoted or affected its performance. Towards the end of the 20^th century, the organization acquired different firms in order to become more competitive. Such developments were supported by the firm’s financial strength. However, the 21^st century was a challenging period for Ford. The company was unable to compete in the industry due to several factors. For instance, the firm was mainly relying on the profits obtained from the sale of Sports Utility Vehicles (SUVs). North America was also facing numerous challenges such as “increased healthcare costs, loss of market share, and unsustainable fuel prices” (“Ford: Competitive Advantage” par. 3).

The emergence of such problems forced the company to introduce new business strategies. In 2006, Ford decided to drop most of its inefficient and unprofitable car models. The move led to the loss of over 30,000 jobs (Hoffman 81). As well, the company closed fourteen of its major factories. Production lines were also consolidated with the aim of boosting performance. Ford partnered with different companies such as Southern California Edison (SCE) to produce superior vehicles (“Ford: Go Further” par. 6). The firm embraced new transformational changes in order to improve the level of performance. In 2012, Ford began to revive most of its business operations. Ford’s “business model became sustainable and showed signs of future improvement” (“Ford: Go Further” par. 3).

Since then, this brand has been focusing on the best approaches in order to deliver valuable experiences to more consumers. This goal is currently achieved through the continued use of positive leadership. The CEO and his subordinates always embrace powerful ideas that can deal with competition. In order to remain successful and deliver value to more customers, the important approach has been to monitor the changing demands of the global consumer (Hoffman 83).

The Ford Motor Company is currently focusing on innovation because it has the potential to deliver an exemplary experience to the consumer. The firm recently expanded its Palo Alto Research and Innovation Center (PARIC) in order to support more customers (Banham 18). Ford promotes outstanding practices that can deliver new vehicles while at the same time maintaining the image of the brand (Hockfield 9).

Experts believe strongly that this automobile brand has managed to deliver specific benefits to its customers. For instance, the cars marketed by Ford are characterized by modern technologies thus reducing fuel consumption. This is a major economic benefit associated with the brand. The cars also have “superior applications and maneuverability thus improving their performances” (“Ford: Competitive Advantage” par. 4). The R&D department has improved some functions such as “shock absorption, comfort, and suspension” (“Ford: Go Further” par. 4). The brand has continued to serve the emotional and perceptional aspects of targeted customers. The brand is self-expressive and admirable. These qualities make it more successful in different regions across the globe.

Solutions Employed by Ford

The past experiences, opportunities, and challenges faced by Ford forced its managers to outline new solutions. The main goal was to deliver value to targeted customers. As mentioned earlier, the beginning of the 21^st century presented numerous challenges thus affecting the profitability, performance, and competitiveness of the company. During the same period, companies such as Toyota were performing positively especially after introducing the use of lean production methods (Banham 63). During the same period, several competitors in the industry conducted numerous researches in order to produce sustainable cars. This move was necessary due to the issues revolving around the problem of climate change. The “global automobile industry introduced new aspects at the time when Ford was struggling with numerous challenges” (Banham 69).

These challenges played a major role in redefining the future of Ford. The brand promoted transformational strategies in order to achieve its business goals. The main focus was to produce superior cars that could satisfy the ever-changing needs of every targeted customer. The new leaders at the firm were on the frontline to present powerful solutions. New innovative measures were also supported in order to ensure the brand competed successfully in the global market (“Ford: Competitive Advantage” par. 7). Ford decided to address the demands of every global customer in order to achieve its potentials (Banham 63). This single choice played a significant role in transforming the future performance of Ford.

Ford has continued to introduce exemplary features to its customers. The leadership embraced at the company promotes innovative ideas thus introducing revolutionary features in every car. For instance, Ford managed to introduce smaller cars that met the needs of more customers. Such cars consumed less fuel thus promoting the concept of sustainability. The company also redesigned the shapes of its cars in order to become more appealing (Banham 23). Ford produced different cars for specific regions across the globe (“Ford: Competitive Advantage” par. 6). This move was undertaken in order to target more global consumers. These aspects have continued to make Ford different from the other competitors in the automobile industry.

These differences have been critical towards supporting the goals of the company. For instance, Ford has recorded “increased sales since 2013” (“Ford: Go Further” par. 5). The decision to produce differentiated automobiles explains why Ford is currently marketing more cars in different corners of the globe. Ford’s Lincoln car brand has been “re-engineered to become a luxury product that addresses the needs of many consumers across the globe” (Hockfield 47). This brand has recorded increased sales in China, Europe, and North America. Haas-Kotzegger indicates that the brand has led to positive gains for the company (4). Analysts in the industry also believe that Lincoln will continue to increase Ford’s operating margin within the next ten years (Haas-Kotzegger 9). The current population growth rate experienced in China and other parts of the globe will support the performance of the brand.

It would be wrong to argue that Ford has maintained relevance within the last five decades. This is true because the company did not promote various competitive advantages throughout the 20^th century. However, the emergence of numerous challenges forced the brand to embrace new measures that could revolutionize its performance. From 2010, Ford began to focus on the changing demands of the global consumer (Hockfield 31). The firm consolidated its operations in order to remain relevant in the market. This goal was possible because the company was still appreciated and admired by many potential consumers. The measures are undertaken by Ford to explain why the brand remains relevant today.

Results Achieved

The narrative behind this brand is that Ford will continue to innovate and deliver superior cars that can deal with competition. Ford has been recording more profits every year since 2010. New leadership practices have emerged at the company thus promoting the best practices. The company’s Lincoln brand has become the car of choice in China and North America (Haas-Kotzegger 12). These results show clearly that Ford will continue to achieve its business potentials.

In order to remain competitive, Ford uses powerful communication strategies to inform more people about the superiority of its brand. For instance, the company’s website informs more people about every new car. Marketing focuses on the best approaches that can inform more people about the advantages and strengths of the company’s cars. The portrayal of Ford as “the leading innovator and producer of new features defines its brand image” (“Ford: Competitive Advantage” par. 6). These aspects make Ford an admirable brand in the global automobile industry.

Recommendations for Future Performance

Companies “that fail to plan about the future will eventually become irrelevant” (Hockfield 98). Ford lost its market share because of poor planning and the inability to predict the future. The current wave of technology is giving companies such as Toyota and Volkswagen new opportunities. Ford should be aware of the challenges and problems that might affect its future performance. The firm should embrace the best innovative ideas and technologies in order to produce superior vehicles. As well, marketing should be taken more seriously than ever before. An informed consumer will be willing to purchase this brand and eventually increase the company’s competitiveness. Social media can also be used to sensitize more people about this superior brand. Emerging markets in Africa, Europe, Latin America, and Asia should also be targeted (Haas-Kotzegger 12). This approach will encourage more people to buy Ford cars. These recommendations will eventually make Ford one of the most successful brands in the world.

Works Cited

Banham, Russ. The Ford Century: Ford Motor Company and the Innovations that Shaped the World. New York: Artisan, 2002. Print.

Ford: Competitive Advantage 2015. Web.

Ford: Go Further 2016. Web.

Haas-Kotzegger, Ursula 2013, Ford Motor Company: Learning from the Automotive Industry. PDF file. Web.

Hockfield, Victoria. A History of Ford Motor Company: Henry Ford, Vehicles, and Criticism. New York: BiblioBazaar, 2010. Print.

Hoffman, Bryce. American Icon: Alan Mulally and the Fight to Save Ford Motor Company. New York: Crown Business, 2013. Print.

Work in the automotive business requires not only the availability of a specific stock of goods and a sufficient financial base. It is essential to have a competently built system of management that can control the activities of all departments of a particular company. When the whole process is organized in accordance with a well-conceived strategy, the risk of monetary losses will be minimal, and the profit can be significant. The analysis of one of the automobile dealerships’ work can help to understand how the management system in such a company is organized, and also to determine what changes can be made to improve the current situation and correct mistakes.

Information about the Organization

The company under analysis is a local car dealership of the world famous brand “Ford.” The director of the concern was quite pleased with the request for a ten-minute interview and agreed to a meeting at his office. It is worth noting that he asked at what time it was more convenient to hold a conversation and did not appoint his time.

The head of the dealership answered questions about the structure of the organization that was subordinate to him and told how the process of control over all his departments was built. According to him, in some of the structural units, there are quite a few employees, not less than fifteen, and each of them is a competent employee. When asked about the structure of the departments, the director replied that their salon consisted of four main units, each of which was managed by a separate responsible employee. It was also noted that many important decisions coming from the headquarters of the concern were considered together with department heads, where people discussed the best way to introduce this or that innovation or increase sales. The director claimed that the company that was entrusted to him worked quite successfully and had not a very big but stable profit; therefore, the activity of this automobile dealership could be regarded as well organized.

Organizational Chart

As practice shows, most car sales centers have a clear organizational structure. Thus, according to Healey (2016), some departments must necessarily be present in the company involved in the automobile business. In the automotive dealership under investigation, based on the answers of its director, the following segments can be distinguished:

Judging by this structure, it is possible to conclude how the management and sales system is arranged in the car dealership under investigation. As Isaenko and Tarasov (2014) note, this format is quite typical and standard in the process of any enterprise’s organization. In order to assess the effectiveness of such a structure, it is necessary to study its work in the context of the modern market and try to identify its strengths and weaknesses. Any judgments can only be of a recommendation nature; however, possible ways to improve the state of business may be helpful for the director and his colleagues.

Evaluation of the Organization’s Structure

The current organizational structure has an utterly logical system that is used in many other enterprises. If it is a car dealership selling Ford products, it is necessary to have a good advertising system to not only interest the consumer but also achieve the highest possible sales level. From the point of view of specialization, this department is present in the dealership, and it closely cooperates with the sales department, whose primary purpose is to directly contact customers and make orders and purchases.

The accounting department has nothing to do with customers. Nevertheless, its staff carefully calculates all financial transactions and ensures that the organization has sufficient income and could rely on financial assistance from the central office if necessary. In case the work of this department is stopped, there is a threat to the whole enterprise.

Employees of the service department are engaged in monitoring the technical condition of cars, controlling all necessary repair operations, and checking the state of the goods. Perhaps, to improve productivity and efficiency, it is essential to reconsider the structure of this department. The algorithm of reasoning can be as follows:

• Too many people are involved in its work, and the activities of some of them are invisible and almost useless.
• It is possible that some employees should be redirected to the advertising department as in this unit, on the contrary, there are too few people.
• If the management decides to take such measures, it is likely that the company will be able to achieve higher success compared to the current indicators.

From the point of view of decentralization, the activities of the enterprise are organized competently. All the structures of the company are subject to their immediate superiors that, in their turn, are controlled by the director. According to Lim, Alpan, and Penz (2014), this management system is in demand in the modern market and justifies itself because the control process is established quite clearly, and one person does not have to monitor all the operations.

Conclusion

Thus, the analysis of one of the automobile dealerships’ work is rather useful to assess its management system and make proper conclusions regarding its perspectives and successes. The work of the whole enterprise largely depends on its departments’ performance. Modern structural schemes can be reconsidered if necessary to achieve higher profits and establish good advertising campaigns.

References

Healey, T. (2016). A guide to dealership structure. Web.

Isaenko, E. V., & Tarasov, A. S. (2014). Automobiles selling organizations’ marketing communications assessment directions. Life Science Journal, 11(9s), 239-242.

Lim, L. L., Alpan, G., & Penz, B. (2014). Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach. International Journal of Production Economics, 151, 20-36.

Introduction

Today, most businesses have understood the significant importance of carrying out marketing research with a view of analyzing the market. Among its benefits, there is a significant improvement in the quality of the product and service line resulting in an increase in market share, and understanding the consumer tastes and preferences better (LearnMarketing.net 2011). The United States motor market has developed in terms of its needs, number, and complexity.

Today, any vehicle developed endeavors not just to transport one from one place to another, but also to make such movement as exciting, comforting, relaxing, and convenient as possible. The same applies to the wider international market in light of increasing globalization. Today, the majority of the population seeks a car that is easy to drive, park, latest technology coupled with an intriguing sleek, fun, and sporty design (Grewal and Levy, 2012).

Analyzing the Market in the Reintroduction of the Ford Fiesta

Ford Fiesta was first developed in 1976 at a time when the fuel prices were too high. In this effort, the fiesta was meant to have minimum fuel consumption. The car experienced high sales in Europe unlike in the United States. Nevertheless, the history of this car does not end at this time. In late 2000, Ford reintroduced the Ford Fiesta with a view of meeting the market needs and preferences. The Ford Fiesta targeted the younger customer of the millennium age (1979 -1994).

The fiesta was reintroduced in the United States market in late 2000 in light of the growing number of personal cars. These cars were preferred because of fuel efficiency as well as its cheaper price. In this respect, the launching of the Ford Fiesta came with an intensive and extensive analysis of the market including macro-environmental factors, political environment, and competitors among others.

Ford analyzed the market with a sense of innovativeness and customers in mind. Since the company targeted the young Millennial customers in a model called Kristen, in 2008, key macroeconomic factors considered were the social trend, culture, demographics, political and economic condition (Kotler and Lane, 2006 p. 89).

Ford analyzed the market and targeted the millennial customers modeled as Kristen who constituted a significant number of individuals purchasing cars. This segment liked to buy subcompact cars with aspects beyond the normal basic features. The market had potential demand and Ford wanted to direct this demand for compact cars to the fiesta. As such, to reach Kristen, the features of the Fiesta were designed for a youth from college who consider communication and social media as important needs of her life worth finding in a car.

The fiesta was also developed to meet the needs of a user in the urban areas. The world today is defined by increasing economic recession and inflation. Fuel prices are not an exception, as such, the Ford Fiesta targeted customers in the city who ran their vehicles regularly. Car fuel consumption is efficient. Again, it is easier to park small compact and one can easily manoeuver in the city. With fully-sized features of the Ford, its prices were also competitive. To penetrate the market, the car was designed in different colors featured in different parts of the car. For instance, the lighting had red colors while the vehicle came in green, white, orange, etc. colors (Marconi, 2000).

According to Grewal and Levy (2012), technology is important in penetrating the market and enabling customers to continuously grow in number and loyalty. In an effort to reach the market, considered both technologically endowed customers and those that had little information about technology. As such, the Fiesta was made simple and easy to understand for the user. This comes with exciting features like the moon roof, forward sing system. For instance, the forward sing system enabled the customer experience with the vehicle to be more exciting and convenient. This is a great in-car hands-free communication facility that also enables the customer to get in touch with friends and relatives.

The social trends today point to environmental conservation and preservation. This is a significant feature in analyzing the market (Marconi, 2000). The Ford Fiesta launch in late 2000 integrated this feature in fuel efficiency. The effectiveness and efficiency of the fiesta come with its ability to consume less fuel as per the US environmental standard of 40 miles per gallon (mpg), significantly beating the 35.5 mpg.

Conclusion

Analyzing the market is significant in developing a quality product or service that increases market share and enables one to understand consumer tastes and preferences (Grewal, and Levy, 2012). Cars developed today are meant to transport one in the best exciting, comforting, relaxing, and convenient experience. The success of the fiesta since its reintroduction in late 2000 reflects in the efficiency, extensiveness, and intensiveness of the market analysis undertaken by Ford.

The Ford Fiesta targeted the younger customer of the millennium age (1979 -1994). In this respect, the launching of the Ford Fiesta came with an intensive and extensive analysis of the market including macro-environmental factors, political environment, and competitors among others.

References

Grewal, D., & Levy, M (2012). Marketing, (3rd Ed.). New York: McGraw-Hill Irwin.

Kotler, P., & Lane, K (2006). Marketing Management, (12 edn). Pearson Education, Inc.: Published by Prentice-Hall, 60-190.

LearnMarketing.net. (2011), Factors influencing the behavior of buyers. Web.

Marconi, J. (2000). The brand-marketing book in creating, managing, and extending the value of market analysis. London: McGraw-Hill Professional.

Introduction

The exterior environment according to which business actions may create instances which business is able to operate, moreover to the threats which could harm the business project. Nevertheless, to be in a location to enhance opportunities or counter to dangers, a commerce necessity to have the right capital and capabilities in place.

A significant part of the commerce approach is regarded with ensuring that these reserves and capabilities are realized and appraised – a process that is often known as a “Strategic Audit”.

Resource Audit

The resource audit classifies the resources obtainable to commerce. Some of these can be held (e.g. plant and equipment, brand names, trade openings) whereas other reserves can be acquired through corporations, joint schemes, or simply dealer agreements with other industries.

Value Chain Analysis

Value Chain Analysis defines the actions that take place in commerce and is connected to an investigation of the competitive power of the business. Powerful work by Michael Porter offered that the movements of a business could be divided into two titles:

1. Primary Activities – those that are straightforwardly anxious with producing and shipping a product (e.g. component assembly);
2. Support Activities, which whilst they are not straightforwardly included in manufacture, may enlarge efficiency or competence (e.g. HR management).

It is unusual for a business to commence all primary and sustain activities. Value Chain Analysis is one way of classifying which activities are best undertaken by commerce and which are best offered by others (“outsourced”).

Core Competence Analysis

Core competencies are those features that are decisive to commerce achieving competitive benefit. The starting point for analyzing core competencies is recognizing that competition among different businesses is as much a race for capability mastery as it is for market location and market power. Senior administration cannot concentrate on all activities of an industry and the competencies required commencing them. So the aim is for the administration to focus concentration on competencies that really affect competitive advantage.

Performance Analysis

The resource audit, charge chain analysis, and core competence analysis help to define the strategic capabilities of a business. After finishing such a study, questions can be inquired that assess the general presentation of the commerce. These queries include:

• How have the resources deployed in the business changed over time; this is a “historical analysis”
• How do the resources and capabilities of the business compare with others in the industry – “industry norm analysis”
• How do the resources and capabilities of the business compare with “best-in-class” – wherever that is to be found- “benchmarking”
• How has the financial performance of the business changed over time and how does it compare with key competitors and the industry as a whole? – “ratio analysis”

Portfolio Analysis

Portfolio Analysis analyses the total equilibrium of the tactical business units of industry. Most huge businesses have actions in more than one market section, and often in dissimilar physical markets. Superior, expanded collections often have numerous sections (each including lots of business spheres) acting in quite dissimilar spheres.

A significant purpose of a strategic audit is to guarantee that the industry portfolio is well-built and that industry units requiring venture and administration concentration are emphasized. This is significant – a business should always judge which advertises is most beautiful and which business units have the possibility to attain benefit in the most attractive markets.

The economic bases of The Ford Corporation (the Corporation) are created on the increased origin which is in agreement with office standards normally conventional in the USA.

The monetary announcements and linked information offered here have been offered accordingly to the commonly established accounting rules and principles, which necessitate the dimension of monetary situation and products of procedures in terms of historical income flows without regarding changes in the comparative purchasing capability of money over time because of inflation. Unlike most industrial Corporations, virtually all of the benefits and responsibilities of the Company are economic in the environment. Consequently, interest charges have a more important influence on the Company’s presentation than the impacts of universal inflation ranks. Interest rates do not essentially move in the same course or to the same extent as the prices of superiors and overhauls.

Investments

Impartiality and permanent takings investments are usually estimated grounds upon the concluding trade’s value as stated in major replaces. Though, confident preset revenue safeties are an estimation based upon capitulates or prices of securities of analogous quality, ticket, adulthood, and type as well as suggestions as to estimations from agents and traders. Short-term investments usually symbolize safeties with the ripeness of 1 year or less and are appreciated at repaid cost.

Restricted marketability investments, on behalf of amounts in project resources and fairness cooperation, are estimated at the stated market price for securities for which market statements are willingly obtainable or an approximation of value as defined in good faith by the universal associate. Important modifications impacting the charges of these restricted marketability investments that take place among the time net asset charges are last discussed by the general collaborator and the close of the Corporation’s financial year are replicated in the fair value proved in the economic bases.

Contracts are recorded on a trade date basis. Brought to life and unrealized attainment or failures on ventures are classified by the contrast of precise costs of acquirement (acknowledged lot grounds) to continues at the time of removal, or advertise estimations at the last day of the fiscal year, correspondingly, and contain the consequences of coinage conversion with respect to businesses and holdings of overseas safeties. Bonuses and attention are identified when received.

Program-Related Investments

The Company invests in projects that progress humanitarian aims. These program-oriented investments are primarily loans marvelous for up to 10 years comportment interest at 1%. These advances are regarded as succeeding divisions for tax treatment aims. Loans are supervised to resolve net reachable value grounded on a valuation of recoverability that operates experience and may reproduce episodic alterations to terms as considered apposite.

Fixed Assets

Land, projects, equipment, equipment, and leasehold enhancements owned by the Corporation are regarded at cost. Reduction is charged using the straight-line technique grounded on valued functional survives of the fastidious advantages normally valued as follows: structures, predominantly 50 years, equipment and tools 3 to 15 years, and leasehold enhancements over the lesser of the term of the rent or the life of the advantage.

Expenditures and Appropriations

Grant spending is considered incurred at the moment of endorsement. Unattached misappropriations that have been permitted by the Board of Trustees are incorporated in appropriated unobstructed net benefits.

Taxes

The Corporation is qualified as a tax-excused company under Section 501(c)(3) of the Internal Revenue Code and, therefore, is not theme to federal profits taxes. Though, the Corporation is a matter of a centralized remove tax. The Corporation observes the policy of supplying for centralized excise taxes on net admiration (both realized and unrealized) on investments. The postponed condition for federal expunges tax characterizes taxes offered on net unrealized enjoyment (downgrading) on investments.

Risks and Uncertainties

The Corporation uses values in preparing the monetary declarations which require the administration to make values and postulations. These impact the accounted quantities of assets and liabilities at the date of the speech of financial situation and the accounted quantities of profits and expenses throughout the coverage stage. Definite consequences may differ from these approximations. The most important approximations and hypotheses are linked to the assessment of restricted marketable safeties, payments for possible losses on program-connected speculations, and employee benefit plans.

Statements of activities

Investment

The Corporation obtains and sells forward currency contracts whereby the Corporation concurs to swap one currency for another on a previously discussed date at a previously discussed swap rate to diminish the experience of certain of its speculations to unpleasant variations in exchange markets. As of September 30, 2007, and 2006, the Corporation had foreign coinage conventions with notional quantities totaling $114.6 million and $170.7 million, correspondingly.

Such agreements include too unreliable levels, risks of loss from the probable incapability of counterparties to assemble the conditions of their agreements. Modifications in the value of onward money contracts are realized as unrealized gains or losses until such agreements are closed.

The Internal Revenue Code imposes an excise tax on confidential Corporations equal to 2 percent of net speculation takings, which is classified as interest, bonuses and net realized increases less working and capital losses on business investments and expenditures incurred in the construction of revenue. The tax is reduced to 1 percent for Corporations that meet positive delivery necessities. The condition for federal remove tax grounded on a 2 percent rate in economic years 2007 and 2006 comprise of a modern condition on net speculation earnings and a deferred condition on present net unrealized increases on investments. The numbers of expurgating taxes paid were $29.3 million and $21.3 million in fiscal years 2007 and 2006, correspondingly.

Retirement Plans

The Company’s defined advantage annuity plans and the classified donation diagrams cover considerably all New York employed workers (staffs who are nearby assigned by abroad offices are covered by other departure agreements). Pension revenues normally depend upon age, length of service, and wages rank. The Corporation also offers retirees at least five years of work and those who are at least age 55 with non-pension other postretirement advantages which embrace medicinal, dental, and life indemnity. The described profit pension plans are yearly grounded accordingly with the smallest funding prerequisites of the Employee departure Income Security Act.

The non-pension other postretirement advantages are not funded by the Corporation. In 2007, the Corporation adopted FAS 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans”, which necessitates undistinguished numbers to be recognized as modifications to unobstructed net assets and that those quantities be regulated as they are afterward recognized as elements of the net periodic pension cost. FAS 158 outlined in the gratitude of a $3.2 million loss reported on the Statement of Activities as a modification in office standard.

The Corporation is concerned with numerous legal actions. Management of the Corporation supposes that it has resistances for all such claims, believes the asserts are considerable without merit, and is energetically protecting the actions. In the estimation of organization, the final nature of these matters will not have a stuff effect on the Corporation’s monetary location. As part of its program-oriented investment activities, the Corporation is assigned to provide $23.7 million of loans to not-for-profit associations once certain situations are met. Further, as part of its speculation administration activity, the Corporation is assigned to supplementary funding of $1.2 billion in confidential equity and other speculation promises.

Conclusion

Ford Motor Company is an organization of a disparate combination of local and district secretarial schemes that based architectural and managerial blockades to the smooth process of Ford’s global shades. Many of Ford’s organizations were more than a decade old, necessitated a high level of preservation expense, and were challenging to inform in global surroundings. Ford necessitates a new, combined explanation to regulate and modernize global monetary business procedures and attain a single account of the monetary truth for reliable data and actionable commerce imminent.

Ford decides to improve and regulate PeopleSoft Enterprise Financial Management Solutions to found global secretarial procedures with a solitary database situated in Dearborn, Michigan. PeopleSoft helped Ford establish an ordinary chart of descriptions with steady financial business procedures across 22 countries in more than 120 locations.

Though Ford Motor Company is identical with American manufacturing, global trade, plays a gradually more significant role in the automaker’s $170 billion income torrent, thanks to global brand names like Land Rover and Volvo.

References

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Mcmenamin, Jim. Financial Management: An Introduction. London: Routledge, 1999.

Meyer, Stephen. The Five Dollar Day : Labor Management and Social Control in the Ford Motor Company, 1908-1921 /. Albany, NY: State University of New York Press, 1981.

Yelpaala, Kojo. “Strategy and Planning in Global Product Distribution – beyond the Distribution Contract.” Law and Policy in International Business 25.3 (1994): 839-944.

This paper is aimed at examining the notorious case of Ford Pinto. In particular, it is necessary to discuss the legal claims made by the representative of Ford Motor Company. Overall, these people wanted to make sure that the corporation could not be charged with a homicide. This task was critical for minimizing the potential losses of this organization. In turn, the court disputed some of these claims. These are the main questions that should be discussed more closely.

The lawyers of Ford Motor Company made several arguments in order to defend this corporation in the court. In particular, they noticed that the organization could not be charged with a homicide (Braswell, 2014, p. 388). In their opinion, this accusation could be applicable only to a human being, but not to an organization (Cullen et al., 2006). This is one of the conceptual arguments that they put forward. This claim was important because these lawyers wanted to make sure that the company was not accused of homicide (Holman & Quinn, 1996, p..32). Provided that this organization had been found guilty, it would have incurred considerable losses (Bailey. 2004). This is one of the details that can be identified since it is critical for understanding the strategies of these lawyers.

Additionally, the representatives of this organization argued that the actions of the company should be judged according to the standards of federal law. In their view, federal law took precedence over state law. In this way they tried to ensure that the company was judged according to the legal norms which were more acceptable to this corporation. Additionally, they said that the court could not apply an ex post facto law to this organization. In other words, they argued that the company could not be accused of activities that had been legal before the law was implemented. They said that the management manufactured Ford Pinto before the changes in the criminal change were accepted. Thus, they argued that from a legal standpoint, Ford Motor Company did not commit any crime, and possible accusations were illegitimate. These are the main aspects that can be distinguished.

Overall, some of these arguments were not accepted by the court. In particular, the court noted that according to the criminal code of Indiana, a person could be charged with reckless homicide. In this case, the word person is not related only to a human being; it can also be applicable to an organization (Cullen et al., 2006). This is one of the details that should be considered. Therefore, this corporation could not dismiss criminal charges. Additionally, the judges ruled that the federal law did not have precedence over the state law. Finally, the court argued that Ford could be prosecuted for not recalling cars which had considerable defects. Therefore, this company was still open to criminal charges. Therefore, in many cases, it is rather difficult to demonstrate the connection between a white-collar crime and its long-term consequences (Benson & Simpson, 2009). This is one of the challenges that should be taken into account.

This discussion suggests that companies should find ways of protecting their interests in the court; otherwise they can incur substantial losses. Yet, at the same time, governmental institutions should make sure that corporation and other businesses act in a responsible way. These are the main arguments can be put forward.

Reference List

Bailey, F. (2004). Famous American Crimes and Trials: 1981-2000. Boston, MA: Praeger.

Benson, M., & Simpson, S. (2009). White Collar Crime: An Opportunity Perspective. New York, NY: Routledge.

Braswell, M. (2014). Justice, Crime, and Ethics. New York, NY Elsevier.

Cullen, F., Cavendar, C., Maakestad, W., & Benson, M. (2006). Corporate Crime Under Attack. New York, NY: Anderson.

Holman, J., & Quinn, J. (1996), Criminal justice: principles and perspectives. New York, NY: West Pub. Co.

According to the principles of modern corporate ethics, every private business bears direct responsibility for the well-being of the community and environment, in which this firm operates. The company must not pursue only its own commercial interests but the interests of society as well. Moreover, the profitability of this enterprise heavily depends on its ability to maintain good relationships with the public. Inability to meet these standards inevitably leads to a decrease in sales and the loss of profit. However, there are cases when the private business deliberately violates these norms because hoping that it would this unethical conduct would go unnoticed and the public will not be able to take any action.

Such firm as Ford Motor Company (FMC) has frequently been criticized for its failure to ensure the safety of American consumers. Its automobile the Ford Pinto lacked a safety kit and this made the car more prone to fire. Furthermore, the management was aware of this drawback, but nothing was done to rectify it. It should be borne in mind that the cost of this improvement was approximately eleven dollars per one car. The company made this decision on the basis of cost-benefit analysis. In other words, they estimated that the cost or redesign would be much greater than the costs of lawsuits (Friedman et al, 70). In fact, they tried to calculate the value of human life. Certainly, from a moral point of view, this behavior is impermissible as human life is invaluable and it cannot be measured in terms of numbers. But this decision had other important implications.

In his article Michael Friedman strives to analyze the criteria according to which this decision was made. First, the author sets facts on the idea that cost-benefit analysis is the most common technique used by the management of Ford (Friedman et al, 70). In fact, it is utilized nowadays by the firms officials. Thus, this fact should not be so astonishing. The only exception is that at that time people became aware of the firms policies.

Undoubtedly from an ethical perspective, such a decision may seem outrageous to many people. It even appears to be utterly unthinkable because average people cannot imagine that their safety may not be worth of $ 11 improvement (Friedman, p 66). But this example shows that a great number of firms are concerned only with their position in the market rather than the well-being of average citizens. At the present moment, the consequences of such a decision could have been more severe. The thing is that Ford could simply lose the competition to foreign automakers, for example from Japan or Germany and the competition was truly stiff at that time because new manufactures have already entered American markets (Friedman et al, p 63). In fact, Ford was saved by a mere chance because the number of car accidents was relatively small.

Overall, it is quite possible for us to say that the mere pursuit of profit is morally impermissible and dangerous to any enterprise. In the modern age, customers can profoundly impact the development of any company. Provided that this event occurs in the modern age: customer dissatisfaction can immensely decrease the income level even of such giant as Ford Motor Company. This case illustrates that those claims about corporate social responsibility are mere lip service or hollow promises because they are not supported by any actions. Furthermore, this situation demonstrates that the value is human life is sometimes estimated by means of cost-benefit analysis.

Works Cited

Almeder. Snoeyenbos, M., R., & Humber J. Business Ethics: Third Edition. Prometheus Books, 1992.

Introduction

The Ford Motor Company reported a net income of $997 million, which was a surprise to the financial market because the Wall Street forecast was that the company was to report losses. The company shares went up by eight percent due to this good performance. Ford is the only automobile manufacturer that did not file bankruptcy in the United States during the current period of financial crunch. The company management said that they are planning to raise its capital by $3 billion by the year 2013. The firm’s profit reports have shown that it has distanced itself from its competitors in the United States who are struggling with restructuring after receiving government funding to save them from bankruptcy (Reuters, 2009). In this paper, I will examine what is behind Ford motor company’s good performance in these economic hard times.

Restructuring program

The Ford Motor Company through its restructuring program has been able to bring down the automobile structural cost by $1 billion during the 2009 financial period. The reduction in the structural costs has made it possible to bring the company operational costs down, which has seen very positive results to the company’s profits. The company has been able to push the engineering and manufacturing cost lower which is a reflection of the company’s improved productivity (Dolan & Bennett, 2009).

Strong products lines

The Ford Motor Company has also managed to build strong products lines which have enabled the company to improve its market share in Europe and North America. The company has also been very successful in improving its transaction costs and margins in many areas of its operations; this has made the company profits soar up in various profit centers. The firm has also managed to build its brand through its product development program that has seen its sales go up even in this time of financial meltdown (Snavely, 2009).

The rise in the profits

The rise in profits can also be explained by the reduction in the number of employees in North America and Europe. This has brought the operating cost in these areas down because the pension and retirement benefits also went down.

The company in North America alone in the third quarter reported $357 pre-tax profit which is a big improvement from $2.6 billion losses in 2008. The good performance has been attributed to the company’s constructive net pricing of its products and lowered material costs in the region. These have made the company to be able to check on its operating cost and improve on its earnings. The good performance in North America can also be attributed to the increased market share of the company product which has resulted from the good market mix and promotional tools in the marketing department. The strong marketing mix has made the demand for the company’s products soar up which has led to improved profits (The New York Times, 2009).

Conclusion

According to the company report, the overall good performance can be attributed to the company program to cut costs in its areas of operations. First, there is a reduction in the cost of supporting staff due to the reduced number of employees in the company operations. Second, there is a reduction in the structural cost in automobile productions. These reductions have enabled the firm to cope with the hard financial times in the world markets. The company has also managed to boosts its market share in many places around the world through its aggressive marketing drive (Ford motor company, 2009).

Reference List

Dolan, M. & Bennett, J. (2009). Ford Stirs Hope of Car U-turn, Dow Jones & Company, Inc. Web.

Ford motor company (2009). Ford Posts Q3 2009 Net Income Of $1 Billion; Cash Flow Turns Positive; North America Profitable, Ford motor company. Web.

Reuters, (2009). Ford posts surprise profit, Thomson Reuters Corporate. Web.

Snavely, B. (2009). Ford’s quarterly profit nearly $1 billion, AllBusiness.com, Inc. Web.

The New York Times, (2009). Ford Motor Company. The New York Times Company. Web.

The US multinational enterprise (MNE) that we discuss in the paper is Ford Inc. The company is headquartered in Dearborn, Michigan and company has operations in six continents (Ford, 2009). It is a leader is the global automotive industry as a manufacturer and distributor of automobiles. The company has almost 90 plants worldwide.

As the company has its operations worldwide, the company follows of reporting its revenue in the domestic currency (i.e. US Dollars) as reported in its Annual Report (Ford, 2008). Ford has posts in its annual reports revenue earned from its operations in Europe, Asia Pacific and Africa, North America, and South America in the same currency. This is done in order to dissipate foreign currency risk; given that, US dollar is one of the more stable currencies in the world. Even though revenue posted by the company is in dollar, the prices charged by the company in foreign lands are the domestic currency of the land. For instance, they charge for their car in China in Yen and in Rupees in India.

Now let us consider the country’s operation sin Asia Pacific and Africa. The operating highlights presented in the Ford’s annual report for 2008 showed that the sales figure of the company in 2008 from the region was 464 thousand units (Ford, 2008). It forms 8.3 percent of the total sales volume of the company. However, according to the pre-tax operating results for second quarter of 2009 showed that the Asia Pacific operations faced an operating loss of $25 million (Ford, 2009).

The Asia Pacific market, especially China has shown a 39 percent rise in total sales in second quarter of 2009. In the Asia Pacific market, the company’s market share has increased by one-tenth of a market point. However, the revenue earned in the region has declined since 2008 in second quarter of 2009 from $1.7 billion to $1.2 billion. Pre-tax profit in the region for the period has gone down from $50 million in profits to $25 million loss. Therefore, the study shows that the sales and revenue earned in the region has dipped from 2008 in 2009.

The share of profit that the Asia pacific region has to the company’s profitability is 2.4 percent in second quarter of 2009. In the third quarter of 2009, the company posted a pre-tax operating profit of $27 million (Ford, 2009). This is a 575 percent increase in operating profit from third quarter 2009. Therefore, the share of profit of Ford from its Asia Pacific and African earnings is increasing constantly as Ford concentrates more on the emerging Asian markets like China.

The foreign currency risks are higher for the company as it has its operations in different parts of the globe. The company uses derivative instruments to hedge the risk of economic exposure with respect to the revenues, costs, assets, liabilities, etc. forecasted priory. The hedging done by the company mainly aims at reducing the risk of foreign exchange fluctuations.

The instruments that are usually used are forwards, options, etc. here the foreign exchange instruments like forward allow the company to lock-in of a future exchange rate which provides dissipates risks against adverse movement of the currency which is mostly used. The technique, which is posted by Ford in its 2008 Annual Report, is as follows:

“The net fair value of foreign exchange forward and option contracts of December 31 2008 was an asset of $249 compared to $632 million as of December 31, 2007. The potential decrease in fair value of foreign exchange forward and option contracts, assuming a 10% adverse change in the underlying currency exchange rates would be approximately $600 million in 31, December 2008 and was $2 billion as of December 31, 2007.” (Ford, 2008, p. 59)

This shows that if there is an increase is an adverse movement of the foreign exchange rate then the risk will be dissipated due to the instrument of hedging used by the company.

Now if there is an increase in the dollar exchange rate, implying that the value of dollar increases vis-à-vis another currency buying raw materials, say from Mexico will become cheaper. This will bring down the cost of production for the company as the cost of Acquiring raw materials becomes cheaper. The reduction in cost will affect the profitability of the company positively increasing the profits earned by the company. Now if there is a decrease in the exchange rate and dollar becomes cheaper vis-à-vis other currencies then the cost of buying raw material from the foreign country will become dearer as the cost of production will be increased by the rise in cost of raw materials. This will reduce the profit of the company. For example, if we consider the case of Ford buying a plant in Mexico for $100 million which is expected to become $1 billion in one year. Now one year from now, the exchange rate for peso to dollar become 9 peso equals $1 instead of 10 peso equal to $1 previous year. This would make the cost of the plant to be $111 million with an $11 million cost which was unanticipated by the company. This the foreign exchange risk that the company runs due to its operations spread globally. Now if peso moved to the other direction relative to dollar, the Ford would have gained from the transaction.

Reference

Ford. (2009). About Ford.

Ford. (2008). Annual Report. Web.

Ford. Ford Posts Q3 2009 Net Income of $1 Billion; Cash Flow Turns Positive; North America Profitable. Web.

Ford. (2009). Second Quarter Earnings Review. Web.

Introduction

The Ford Motor Company is the number one manufacturer of pickup trucks in the world and the second-largest producer of trucks as well as cars. This company produces vehicles like Jaguar, Aston Martin, and Ford among other vehicles. The company has succeeded on the highest level in the manufacturing of F-series pickups and the Ford Taurus. More so, it possesses more than thirty percent of Mazda and has bought the operations of the “BMW Land Rover SUV”. This company as well owns the biggest car rental firm in the world, Hertz (eSight Directory of Disability-friendly Companies, 2009).

Company’s Motivational Profile

The main categories of the employees include those in the following fields; engineering, information technology, purchasing, sales, security, and clerical posts. The employee benefits in the company include the retirement programs, holidays that are paid for, the medical plan, stock purchase or saving plan, life and disability insurance, and discount on the GM products.

According to Mulally (2009), the morale of the company is high. The company provides a big opportunity for one to acquire experience in the automotive industry. The company provides freedom for the development of professionals. It shows respect and maintains dignity among the employees at all times regardless of the circumstances.

More so, the Ford Motor Company has a habit of rotating the employees from one job to the other every after some few years and this turns out to be a very much appreciated step since it prevents the employees from becoming decayed and giving room for the development of careers and makes the work more interesting. More so, there is the support of the balance of work-life. The Ford Parenting Network (FPN) gives support to the employees in terms of enabling them to balance between family life and work life. This provides an environment where there is an optimal contribution to work as well as the employee having accomplishment of own and family duties (eSight Directory of Disability-friendly Companies, 2009),

In addition, the company has several exciting innovative projects on which the employees can work. The company puts much focus on executing faultlessly and looks forward to an excellent performance. The company is engaged in coming up with the right decisions in terms of the right product development to realize a successful future.

According to Anonymous: Sustainability Report: Employee satisfaction (2009), the company is making great efforts to bring up the level of employee satisfaction in terms of having continuous improvement in the strategies for the promotion of open channels of communication with the employees. The company realizes the significance of effective communication, especially in the course of hard financial times. The company has carried out the enhancement of internal communication efforts to develop trust and bring up the level of transparency. For instance, every week, the company holds with all the employees, interactive webcasts and during these sessions, employees are allowed to give out questions in a direct manner to the top management. More so, the company has a web-based forum for the submission and discussion of innovative ideas.

The company’s motivational strategies tend to promote employee retention to a large extent. The strategies serve as incentives for the workers within the organization to carry out their work more willingly and may not be ready to go and work anywhere else.

Conclusion

Having looked at the motivational profile of the Ford Motor Company, it has been seen that the company has adopted some of the best practices that favor the employees which are unique in one way or the other. Among the best practices are the company’s efforts to ensure a balance between work life and family life. Also, the practice of allowing open dialogue plays a vital role in addressing the employees’ pressing issues.

However, some areas still need more improvement. For instance, according to Mulally (2009), as much as the company respects and gives much freedom for the development of professionals, provide a balance between work and family life, and offer diversity, the company moves at a slow pace in adapting to changes and recognizing and giving out a reward to innovations. The company should take the initiative to adapt to changes and become more practical in giving out professions that are more satisfying to inventive and reliable employees as an alternative to the old-fashioned evaluation of performance which is just for formalities.

Reference

Anonymous (2009). Sustainability Report: Employee satisfaction. Ford Motor Company. Web.

eSight Directory of Disability-friendly Companies (2009). Ford Motor Company. eSight. Web.

Mulally, A. R. (2009). Ford Motor Reviews. Glassdoor.com.Web.

Introduction: Buckingham Ford

Buckingham Ford is the leading car dealership company in Buckingham. The company deals with the sale of new Ford vehicles as well as the buying and selling of used cars (Boudreau, 2010). The company is located at the heart of Buckingham town at garage that has been operational since the late 19^th century. The garage was founded by Philip and Sons in 1888 (Buckingham, 2012). Manufacture and repair of horseless drawn carriages were the main function of the garage during its early days of inception. In addition, the garage also manufactured road vehicles. The Philip family owned the business for three generations. However, in 1996, the business was bought by Redding and Redding Company. It is here that it was named Buckingham Ford.

The garage is located along Ford Street near the Buckingham football grounds. It covers a huge area that is capable of accommodating hundreds of vehicles at a given time. Buckingham Ford is the only car dealership within its locality where an individual can purchase a new Ford vehicle. In addition to this, the garage is involved in the buying and selling of second hand vehicles. Despite the fact that the garage is a Ford franchise, it also buys, sells, and repairs cars, and light commercial vehicles of other brands and body types. Other services that the garage offers include:

1. Fitting of tyres
2. Fitting of exhaust pipes
3. Fitting of motor vehicles parts and accessories

Other than this, the garage also has an accident repair centre that has state of the art equipment and qualified personnel who are capable of undertaking any type of repair work ranging from severe crushes to minor body works and paint jobs. The operations of the garage have been sustainable for the last 17 years. It is due to the effectiveness and efficiency of its operations coupled with the understanding of the market needs and expectations that has led to the success that Buckingham Ford is currently enjoying.

PESTLE Analysis

To understand the operations of a business entity relative to the market, it is essential to conduct several analyses. This is essential as it brings about a clear understanding of the factors that affect the operations of a business. These factors can be either exogenous or endogenous (Harvey, 2010). Once these analyses have been conducted and a clear understanding of the market and the industry is arrived at, a firm stands a better chance of formulating and implementing strategic plans that will ensure that its operations are effective and efficient hence making it to be profitable and sustainable in the short run and the long run (Mullins, 2008).

PESTLE analysis is one of the business analyses that a business should conduct to have a clear understanding of its market. This analysis normally focuses on the external factors that affect a business entity. These factors are:

1. Political
2. Economic
3. Social
4. Technological
5. Legal

From the analysis of these factors, it is evident that PESTLE analysis is used to analyze the factors that affect the operations of a business at a macro-environment level.

In the course of its operations, several political factors affect how a business entity operates. These political factors are essential as they normally dictate how an organization is run and the regulations that it has to follow. Political stability of a region is of great concern to the prosperity of a business entity (Maney, 2003). Business entities that operate in regions or nations that are characterised by civil wars, terrorism and related acts stand a low chance of being successful. This is due to the high risk factor that such businesses are related with. On the other hand, businesses that operate in a relatively peaceful environment stand a higher chance of success. On the other hand, the impacts and reputations of politicians towards a business entity are also essential, as it will determine the kind of reputation that a specific business entity will be related with. It is thus due to these facts that managers of business entities ensure that their businesses are only associated with renowned politicians and public figures within the society.

Prevailing economic factors also play an essential role in the performance of an organization (Buckingham, 2012). These economic situations may be of a specific locality, region, nation, or the globe at large. Economic growth is an essential aspect that affects the operations of an organization. The level of economic growth determines the level of investment that a specific business has, the income that individuals of a given region have, and the purchasing power of the market. The prevailing economic conditions also affect the interest rates, exchange rates and the inflation rates. If a nation or a region has a stable economy, interest rates on loans are always kept a low level. This increases the availability of capital and increases the purchasing power of customers. At the same time, the exchange rates are stable, and the inflation rates are minimal. However, during harsh economic situations, the interest rates and inflation rates rise while the exchange rate become unstable. This increases the overall prices of goods and services, reducing credit availability hence reducing the purchasing power of customers. This in turn reduces the level and extent of business activities in the affected area (Bradford, 2011).

Social factors are also essential in determining the operations of a business in the short run and the long run. Social factors of a given locality, nation or region are determined by its demography and cultural aspects (Lesser, 2007). In the operations of a firm, social factors are essential as they determine the size of the market, its segmentation, and viability. At the same time, social factors are essential as they determine the needs, tastes, preferences, and expectations of a given market. This information is essential as it ensures that the goods and services that firms provide conform to the needs and desires of customers. Age composition, population growth rate, health consciousness, and career distributions are but some of the social factors that affect the operation of business entities at a macro-environment level.

Technology is also a key determinant in the operations of business entities. Businesses operate in a dynamic environment. The tastes and preferences of customers always change with time. Additionally, the factors of production also change. Therefore, to keep up with this pace, businesses normally come up with creative and innovative technologies that ensure that their operations are cost effective and are capable of meeting the needs of their target market. This also ensures that they stand at a competitive edge over their rivals (Cascio, 2010). To achieve this, firms need to put a lot of emphasis on research and development, automation, and utilizing incentives in technology to the fullest (Cummings, 2009).

Finally, a business needs to operate within the legal constraints of the law. The government together with other official bodies normally come up with rules and regulations that have been set up to ensure that firms operations do not conflict with the rights and duties of individuals and the state (Antony, 2008). Due to this fact, firms must therefore operate within definite rules and regulations whose applications may be either formal or informal. This may be tax, labour or environmental laws and policies. Failure to adhere to these rules and regulations normally results to the breach of law that is punishable by the state via the court of law.

Factors that may Affect the Operations of Buckingham Ford

Buckingham Ford is a business entity that deals with the purchase and repair of automobiles. The firm operates in Buckingham, a relatively small upcountry town. According to the 2001 census, Buckingham had a population of 11,572. In 2007, the population was estimated to be at 13,200 (Hemp, 2011). This therefore states that the region has a small market size as compared to other areas in England. In addition to the small market size of the region, other macro-environmental factors may affect the operations of the entity.

Economic factors are the factors that play a huge impact in the operations of Buckingham Ford. England had been experiencing a relatively stable economic growth especially since the early 2000s. However, since 2008, this rate started to decline. This was as a result of the economic crisis that had just hit the globe at that time. Due to its severity, its effects could be felt in almost each and every part of the world including Buckingham. All sectors of the economy from agriculture to tourism were affected. The automobile industry was not an exception.

The global recession that commenced in 2008 affected Buckingham Ford in the following ways. As a result of the economic crisis, the rate of economic growth declined. This reduced the value of the British Pound in comparison to other foreign currencies resulting to inflation. Therefore, the purchasing power of consumers declined during this period. To solve this problem, lending rates were increased. This reduced the availability of credit to customers as well as the firm to make capital investments. As a result, the annual sales of the company declined reducing its profitability. Due to the prevailing unstable economy, individuals normally opt not to spend on luxurious items such as cars. This has further reduced the sales of the company.

Technology is also another factor that plays a critical role in ensuring that the operations of the firm are effective and efficient. Technology has found a wide application in the firm. To be specific, Buckingham Ford has incorporated the use of IT and ICT in its operations. The company has adopted and implemented an inventory software system that makes it easier for the management to maintain the records with regards to the vehicles that are present at the garage. While using this system, the management and other employees can know the number of vehicles that are present at the garage, their status (whether a vehicle is new or second hand or it is for sale or repair), their prices, amount paid, accruals and so on. This has made it easier for the organization to maintain and update its records. The firm has also adopted and implemented the concept of e marketing. Buckingham Ford has a website that contains all the details of the company. This includes its history, vision, mission, services and products, contacts and directions. This has made it easier for customers to get in touch with the company. At the same time, the company is also using social media and other forms of e marketing strategies to market its products and services. Buckingham Ford has posted its adverts on social network sites such as Facebook, Twitter, MySpace and Youtube. At the same time, it has fun pages in these social network sites. This has made it easier for the company to get in touch with its customers and the market. As a result, the firm has developed a clear understanding of the needs and expectations of its customers and the market at large. This information has been essential in the development of policies and strategies that have resulted to the success that the firm is currently enjoying.

Finally, the operations of Buckingham Ford have been sustainable due to the relative political stability of the region. Buckingham has been enjoying an atmosphere that is characterised with peace and security. No major demonstrations have been reported in the region in the last several years. In addition, insecurity in the region is at a low rate. This provides a conducive environment for the firm to operate in. The security of the capital investments of the firm has always been guaranteed. All these factors have played a critical role in determining the performance of the firm within the region.

As a result of political influence, the town of Buckingham has developed several rules and regulations that govern the operations of businesses. These laws protect all the businesses from theft and other related fraudulent activities. At the same time, the local authorities have enacted laws that protect properties owned by businesses and the same time, it protects the rights of workers who work for various firms including Buckingham Ford (Buckingham, 2012). The respect for property and workers rights have ensured that Buckingham Ford owners and employers have respect for one another leading to a favourable working environment.

Conclusion

Buckingham is a small town in England. The town has several business entities that range from production to catering. Car purchase and rental services are also offered in the town. Buckingham Ford is the leading car sale and repair firm in the town. The business has been in operations since late 19^th century up to the present date. However, the garage became a Ford franchise in 1996. However, the operations of the firms are affected by several factors especially at a macro-environment level. These factors may be political, economical, social, technological or legal. These factors are essential as they determine the strategies that the firm will formulate to be at a competitive edge over its rivals in the automobile industry. Economic, social, and political factors are the ones that have the most influence on the firms operations. It is due to this fact that the management should have a clear understanding of these factors to ensure that the operations of the firm are effective and sustainable in the short run and the long run.

References

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Boudreau, J. (2010). Retooling HR. Boston MA: Harvard Business Publishing

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Buckingham (2012). About Us. Web.

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Hemp, P. (2011). Leading Change when Business is Good. Boston, MA: Harvard Business Review

Lesser, R. (2007). Transforming the Workforce: Seven Keys to Succeeding in a Globally Integrated World. New York: IBM Institute for Business Value Executive Brief, New York

Maney, K. (2003). The Maverick and his Machine. New Jersey: John Wiley & Sons

Mullins,J. (2005). Management and Organisational Behavior. New York: Prentice Hall