Ford is one of the largest auto makers in the US. Nevertheless, the recent economic recession has had a important, negative impact on the development of the company. The company has deteriorated its selling public presentation systematically. In this regard, it is possible to mention to the balance sheet and income statement of the company ( See App. Table 1 and Table 2 ) , which show the consistent impairment in the organisational public presentation and selling place of the company since the beginning of the economic recession. In actuality, the company undergoes a considerable downswing in its concern development. In such a state of affairs, the company needs to set about immediate actions, which can better the place of the company systematically and forestall the on-going impairment of its selling place and lessening of its market portion in the US and in international markets.
In actuality, it is possible to separate several menaces to the hereafter of the company and to its current place in the market. First of wholly, the economic recession has decreased systematically the purchasing power of consumers, particularly in the US. As a consequence, the sale rates of Ford have dropped well because client can non afford purchasing as much autos as they used to make before the recession. Second, the competition in the industry grows stronger. At this point, it is of import to put accent on the fact that, on the one manus, American challengers of Ford, including GM and Chrysler have deteriorated their selling place and organisational public presentation since the beginning of the economic recession. On the other manus, abroad challengers of Ford, such as Toyota, have demonstrated a better selling public presentation compared to Ford and other American companies. In such a manner, Ford has undergone the consistent impairment of its market place but the company has survived the recession. Third, the company needs to run into environmental and economic concerns of the populace, because consumers are dissatisfied with the high fuel ingestion of autos sold by Ford.
Key strategic actions and determination elements confronting the company
On analysing the current state of affairs and place of Ford in both domestic and international markets, it is of import to concentrate on three strategic waies in the development of the company. First, the company has to get the better of negative effects of the economic recession. Second, the company needs to better its competitory place and recover its market portion. In add-on, the betterment of the selling place of the company should be accompanied by the fiscal stabilisation of the company. Furthermore, the company needs to alter its mission and vision to run into demands and wants of clients. To set it more exactly, the company needs to take into consideration environmental concerns of the populace.
Main findings from the analysis
The analysis of the current place of Ford reveals several jobs the company has to undertake with. In this respect, it is deserving adverting the job of the turning competition. Furthermore, the company has to cover with negative effects of the economic recession because the bead of the purchasing power leads to the bead of sale rates of the company. In add-on, the impairment of the selling place of the company leads to increasing portion of Ford & A ; acirc ; ˆ™s challengers, chiefly abroad auto makers. Furthermore, the company loses its place non merely in the domestic but besides in the international market. Ford still faces the job of the negative public image as auto maker responsible for the pollution of the environment because Ford & A ; acirc ; ˆ™s autos use gasolene, which causes nursery gas emanations, which, in their bend, lead to the clime alteration.
In such a state of affairs, it is possible to propose several solutions to current jobs of Ford. First of wholly, the company should optimise internal concern procedures. In this respect, the company should concentrate on the quality of its merchandise and services every bit good as on the quality of relationships between professionals working within the company. Second, the company has to salvage costs. At this point, the company can cut down its disbursals through selling its abroad subordinates, which need significant investings. In this respect, the determination of Ford to sell out Volvo, as one of its subordinates, is logical and rational but the company has to transport on the policy of optimisation of its disbursals and salvaging costs. Furthermore, the company should develop and fabricate more fuel-efficient autos. In this respect, Ford could even decline from fabrication of its celebrated pick-ups and other vehicles, which are non fuel efficient. In add-on, the company can seek for amalgamation with another big auto maker to better its selling place and to spread out its market portion. Furthermore, the company should develop intercrossed vehicles and vehicles utilizing alternate beginnings of energy but fossil fuels. In such a manner, the company can better its public image. Finally, the company should lucubrate the new scheme of the market development to spread out its market internationally.
Key recommendations, duties and timing factors
Taking into consideration all above mentioned, it is possible to urge presenting new scheme concentrating on fabrication of fuel-efficient vehicles and the betterment of the public image of the company. Ford should pull new clients and spread out its market portion internationally. In add-on, it is possible to urge presenting inventions, particularly in respect to the enlargement of fabrication of intercrossed vehicles by Ford. At the same clip, at the minute the company should cut costs well. In this respect, the company should take duty and sell out its unprofitable subordinates and, if necessary, to cut occupations. The company can try to obtain more revenue enhancement credits from the authorities. Finally, the company needs to concentrate on the quality of its merchandises and services.
Ford should carry through the aforesaid alterations in the class of the twelvemonth. Otherwise, alterations within the company and the impairment of the place of the company in the market will be irrevokable.