Sample Business Studies Organization Case Study on Ford Motor Company

Ford Motor Company forms the basis of this case study analysis. Originally, the company was founded in 1903 by Henry Ford and 11 other investors and later reincorporated in 1919 where Ford’s wife and children acquired ownership (Hennelly & Graham, 2019).  Since then, Ford Company has actively been involved in the design and manufacture of passenger cars, trucks, and tractors. The company has its headquarters in Dearborn, Michigan. Henry Ford first assembled his experimental car in 1896 behind his home, and later assembled a first commercial car in July 1903. Today, the most common brands are Ford Mustang, Fiesta, Eco-sports, and Lincoln (Hennelly & Graham, 2019). The company structure has the Chairman at the top headed by William Clay Ford Jr. closely followed by the CEO, James Hackett, then followed by executive vice president with a broad array of functional heads. Currently, Ford Company occupies fourth position in the best car brands in the world followed by General Motors.

Ford Motor Company faces a number of political, economic and social huddles. Foremost, the regulatory pressure exerted on the organization has greatly affected profitability. The international market is a huge concern for a company that also relies on offshore sales. For instance, the trade war between the United States and China is creating pressure leading to a decline in sales and profits. Second, Ford is facing economic challenges as the company grapples with fluctuations in crucial markets. The economic recession witnessed across the globe has drastically affected purchasing power of customers leading to decline in sales (Dybis, 2019).  Third, the socio-cultural factors like increased demand for hybrid and electric cars, moderate attitude towards excellent customer care services, and the widening gap between the rich and poor continue to affect operations and profitability of Ford motor company.

In conclusion, Ford Motor Company must operate within most predominant current and anticipated macro-environmental conditions like the fallout between the United States and China. Ford has been struggling to expand its operations and maintain sales in Asian countries. However, the company has faced huddles resulting from trade wars and overhanging tariff wars between countries. Therefore, Ford must wade through the challenges to maintain its reputation and brand position. Consequently, impacts of new technologies and change in attitude of consumers such as driverless cars continue to present challenges. Overall, Ford needs to address the growing needs of the millennial population as they are significant in future industry growth.

 

References

Dybis, K. (2019). Looking further with Ford: The 2019 trend report. Ford Social. Retrieved

from https://social.ford.com/en_US/story/ford-community/ford-trends/looking-further-with-ford-the-2019-trend-report.html.

Hennelly, P. & Graham, G. (2019). Digital transformation of the Automotive Industry: Concepts,

            theories and applications. London: Kogan Page Limited.