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Free Essay: PESTEL Analysis of Ford Motors

The number of automobile companies has grown with time. Ford Motors is one of the widely acknowledged automobile manufacturers not only in America, but also in many other parts of the world. Today, it has supplementary companies in Japan, Sweden and in United Kingdom. Ford Motors is currently the fourth-largest in the world and second highest automobile manufacturer in U.S. Understanding the micro and macro Ford Motors environment has been one of the great ways to know how the company operates.

PESTLE analysis of Ford Motors as not only been helpful to the company itself, but also to consumers and many researchers out there. The mainstay factors that play into each area of the PESTEL analysis are no different from what the company has been going through for decades. Nevertheless, the weight placed on each external macro environment within the company seems to increase in an exponential manner, for instance;

The political environment seems to be broadening in each country. This has made it hard for big companies like Ford Motors to attract more clients during these times. Fortunately, Ford has been able to maintain a good image and it does not have problems attracting socio-economic groups. The company has also been able to stick to government policies and in accord to tax policies of every government.
Economically, Ford Motors has languished like any other automobile company globally. Recession, collapse of the banking industry and increase in the market share are economic-related factors that have impacted the market. Luckily for Ford, it has been able to reduce cost of structures of its automobile products and services. Being able to maintain its profitability has kept it above its competitors.
Changes in the social classes in the world market have impacted the operations of Ford Motors and other automakers. Ford has been able to expand its market has there are many consumers out there willing to purchase any of its produces. Geographical developments, customer mental attitude towards the industry and travel tendency among many families are key factors that have pushed the high sales of Ford Motors products.
Developments in technology have given Ford a competitive edge over its competitors. For instance, it has worked with Microsoft to introduce a “smart car” that understands what music the driver prefers when reading texts. Safer vehicles can be produced these days thanks to advancement in technology. On top of this, vehicles that are able to consume less fuel are available also at affordable rates.
The need for vehicles that do not pollute the environment is one factor that Ford Motors has invested on greatly. This has pushed the company to make sure that it produces vehicles that meet the set environmental laws and regulations.
The core legal factors that Ford needs to understand and put up with are the labor laws. These laws are ever-changing and it is easy to infringe due to increased competition. Trade Unions have made it hard for automobile companies to dismiss their employees globally. There are also distributions rules that the company has to tolerate.

The macro environment that Ford Motors operates in is highly competitive and changes on daily basis. Being prepared for the many challenges in the automobile industry is the best way to excel in its endeavors now and in future. PESTLE analysis of Ford Motors covers the facets of company that wants to remain relevant, successful and at the topmost position in the industry. All in all, Ford remains a cut above the rest of automakers since 1903 and for many years to come.

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Online sources:

http://jdfordmotor.blogspot.com/2011/06/chapter-4-exploring-external.html

http://www.scribd.com/doc/25221842/Fords-Case-Analysis

http://www.managementparadise.com/forums/principles-management-p-o-m/208732-pest-analysis-ford.html

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Free Essay: PESTEL Analysis of Ford Motors

Free Essay: PESTEL Analysis of Ford Motors

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