Background
Ford Motor Company is a world-class motor selling company whose leading brands are commercial vehicles and luxury vehicles under the Ford and Lincoln brands. The company has employed Ford Motor Company and has supplied cars for a long time since its creation by Henry Ford in 1903. The company’s headquarters are located in Dearborn, Michigan, in the United States but supply its products globally (Ford, 2022). The company employs thousands of people to help it meet its objectives of formulating new ideas that facilitate a smooth running and penetration into the market. The organization’s main objective is to build a better world where everyone can freely move around and pursue their dreams. The company believes that a good company delivers excellent products and services. In contrast, a great company provides perfect products and services while maintaining an efficient and conducive environment that betters the human stay in the world. The company thus targets beautifying the world and making it an excellent place for existence.
The vision pushes the firm to create more sustainable means of building a solid foundation for its relationship with the customers and other stakeholders in its environment. Hence, this report focuses on evaluating the strategies the company uses to maintain sustainability, how the issues influence consumer behavior and preference, and the company’s general performance.
Business Characteristics and Processes
Strengths
Ford Motor Company enjoys a strong brand image since it has existed in the market for a long time. A long-time existence in the market provides a full awareness of the company to its customers (Akrout & Naggy, 2018). It creates awareness among the customers by promoting the spread of news about the existence of the brand customers. It appeals to new customers to board into the market and consume the products by enhancing the credibility of the items. A strong brand image is vital for the firm’s development since it ensures that customers obtain quality products and share ideas with their friends, creating a coherent market structure that accommodates many. The brand image is a system by which many people identify the business by providing an identity of standards with which people conform. Ford Motor Company enjoys a beautiful and strong brand image that attracts more customers and provides identity with its vehicles since people understand the quality of the product line.
Additionally, the company possesses an intensive research unit that creates unique ideas for its products. Ford Motor Company owns a robust research unit that identifies areas that require improvement on the current car models. The modification of the vehicles enhances consumer comfortability and satisfaction. The research care unit helps the business to identify means in which it may reduce the pollution from the use of its items by acquiring modern facilities. The research unit plays a critical role in determining new strategies to improvise the current car models to better ones that are more comfortable and compatible with the environment.
Another characteristic that Ford Motor Company possesses as a stronghold is its financial muscle. The presence of money helps the business to create new ideas in the market, especially in the marketing and purchasing of resources to create the machines. Ford Company has used its finances to advertise its products in the market, creating more awareness about its existence (Bui et al., 2021). In addition, the availability of a considerable capital base helps the company acquire resources that aid in manufacturing the vehicles. The availability of finances helps companies develop raw materials, creating sustainability for the business. It attracts creditors and investors into the company by assuring them high returns and security of the investments and loans. Creditors get assured that their money will not be wasted and guarantee a return for their support. On the other hand, the investors remain guaranteed to receive a return on their funds. They are aware that the company will manage their money wisely, ensuring their investments’ safety.
In addition, Ford Motor Company has a reputable record in the diversification of its products. The company has a wide range of products that customers may purchase based on their preferences. For instance, a customer may select the type of car they want to buy based on their choices. Having a diversified product line helps the nosiness maintain many customers who differ in the structure and outlook of the cars. Some may prefer commercial cars, whereas others want luxury cars. The company thus considers different features and models that people may choose, thus ensuring that they maintain a broad market base. Ford Motor Company has commercial vehicles under the Ford Brand, while the luxury models are under the Lincoln Brand. The two categories further classify their products into different types with special prices where customers may select the one they like and can afford. Therefore, it puts all customers under consideration.
Another essential characteristic of the company is that it enjoys a massive network of dealers. The diversified clientele ensures that the customers obtain relevant information at the appropriate time, helping them decide on the item to select. The dealership helps supply the vehicles to the final consumers and helps bridge the geographical gap between the company and its customers. In addition, they help in creating awareness about the products the company offers and the strategies it uses to promote the relationship with customers (Hadler et al., 2020). Generally, the network of dealers significantly influences the customer’s behavior by providing them with information and advertising. They help the company reduce extra costs it may incur while pushing for deeper penetration into the market.
Weaknesses
However, despite the company’s strengths, it faces some weaknesses in its line of operation that contribute to its negative characteristics. First, the company hugely depends on the United States as the primary market for its products. Overdependence on the European market leads to a limited amount of revenue and profits that the business gets (Razak et al., 2020). It prevents the company from overtaking its competitors, leading to slow international market development. The saturation of the United States market has led to a decline in the number of sales that Ford Motor Company makes yearly. It is thus making lesser sales in the current market but may change the statistics by extending its operations to other countries globally.
Additionally, the company depends on trucks and sport utility vehicles (SUVs), contributing to a further decline in market control. Ford Motor Company’s significant sales are in trucks and sporting vehicles. Over 50% of the company’s sales we in the form of trucks. The act negatively affects the brand image since only people interested in these types of cars purchase the trucks only (Hadler et al., 2020). Ford Motor Company focuses its future on selling sporting vehicles. It has lacked diversification into other models of cars, limiting its production in the same line of products. Providing trucks and sporting cars limits other customers interested in different types of products from accessing the brand. The company thus lacks a diversified option for product types by sticking to these two types of products.
Another negative characteristic is the company’s product recalls in 2015 and 2016. In 2015, the company recalled some of its products due to the failure of the airbags to function. Moreover, the company recalled some cars in Europe after the high voltage batteries caused some cars to ignite. Later, in 2016, the company recalled many of its trucks since the inside safety latches of the doors were faulty and needed repair (Halder et al., 2020). Failure of the company to guarantee nonfaulty vehicles leads to a decline in the number of buyers since the brand name and image are affected negatively. The company thus undergoes more humiliation and reduces the number of clients that it serves. The company has thus faced a massive collapse in the number of sales due to a poor reputation. Hence Ford Motor Company weakly joins the emerging market compared to other competing firms (Halder et al., 2020). The company may control these outcomes by guaranteeing its audience quality machines and compensating those affected by its faults.
Threats
The main challenges that Ford Motor Company faces are competition from rival firms, market uncertainties, increased price of raw materials, regulations and compliance, and strong labor unions. These challenges create difficulty for the firm since it fails to acquire complete control over production and market control. Competition is prevalent in the market since other firms such as General Motors Company (GM), Toyota Motor (TM), Daimler (DDAIF), Honda Motor Company (HMC), Tesla Motors (TSLA), Navistar International (NAV), and Spartan Motors (SPAR) exist in the market. These firms are substantial and fight for the existing market across Europe and globally. Hence, Ford Motor Company undergoes significant challenges in meeting its objectives of making robust control of the market. Competition is crucial in any market since it pushes the companies to provide goods of better quality and quantity. However, it harms the business more since some customers shift their attention to more satisfying products. The companies struggle to have the highest sales and may sometimes fail to obtain their goals since some target audience prefers other brands.
Market uncertainties are other factors that the business faces as it seeks better operation conditions. The company may encounter market uncertainties through frequent changes in government laws. The challenges of law change mainly affect importation duties, requirements, and taxation. Different countries impose unique rules that may facilitate the easy importation of products or worsen the current conditions. Other market uncertainties may be through calamities such as war, an outbreak of diseases, or other natural phenomena that may halt the continuity of business operations. The most recent natural disaster is the outbreak of the COVID-19 pandemic across the world, which led to the cancellation of trade relations between different times. The pandemic contributed to the drop in sales in the business, discouraging its development and diminishing the production rate since the demand for automobiles declined during the period. Thus, the number of new models the company manufactured within the period declined, contributing to a downgrade in its sales.
Strong labor unions are another challenge the company faces since it has led to the wakening of employee activists. Currently, the demand for higher pay is at its peak due to the rising inflation rate. The labor unions demand higher compensation for their members and better working environments. Employees under labor unions have higher demands than others; hence Ford Motor Company must spend more money on labor capital and provide a conducive working environment. Labor unions may negatively influence the business by empowering workers to demand their rights, creating more challenging conditions for the company to thrive. The company must spend more resources equipping its workers with the skills required to run the projects efficiently. Labor unions are critical determinants of the relationship between employees and their employers. The unions may lead to strikes when things are not in order, prompting sabotage of ordinary business operations.
Sustainability
There are different reasons why sustainability in business is essential. These reasons include economic viability, incorporation of focused business strategy, improvement of the capacity to deliver, adaptability to the underlying environmental circumstances, and social impacts. Sustainability gives the business reasons to focus on production and aids in managing resources within the business operations. It improves the business’s brand image and encourages customers to consume more of the available products. There are different sustainability categories, including economic, social, and environmental forms. The classes focus on maintaining other conditions for the business to prosper. Ford Motor Company ensures that it conducts these attitudes in its primary operations to create a reliable market for its products and to enhance good productivity from employees. Alternatively, these business forms help the company maintain a reliable and efficient relationship with the customers. A proper relationship with the customers improves sales and projects its development.
Economic sustainability involves the use of resources within the business in a more efficient manner. Proper utilization of resources ensures that the firm does not undergo failure. It minimizes the company’s loss due to mismanagement of resources within the organization. Economic sustainability exposes the industry to better ideas on managing resources and generates more advancement projects in the organization. Proper resource management helps the organization maximize the usage of scarce materials. The company thus obtains much value from the material and increases profit margins since it manages more resources and produces more end products. Ford Motor Company has a broader product line and uses raw materials maximumly. Strong economic sustainability ensures that the business contributes to the management of resources.
Additionally, the company uses economic sustainability to contribute to the provision of revenue to the government. Ford Motor Company provides a strong Gross Domestic Product for the United States (GDP) both directly and indirectly. The company pays taxes to the government and produces other formalities that are guided by the law. Direct payment of taxes to the government contributes to the country’s growth. Moreover, the company pays export duties to the executive and ensures continued economic development. The firm contributes to the revenue indirectly by creating employment, affirming that all workers receive payment for their contribution to the delivery of products. Financial sustainability is essential for businesses since it ensures that they receive acknowledgment for their contribution to the growth and development of the economy.
Conversely, social sustainability is where the company focuses on maintaining a solid relationship with society by ensuring that it pays attention to the welfare of all the concerned stakeholders from shareholders, workers, and the neighboring community. Social sustainability focuses on providing information to everyone at the appropriate time. The company ensures a conducive environment for employees by providing protective gear to secure them from hazardous environmental conditions (Ford, 2022). In addition, Ford Motor Company may secure social sustainability by giving the neighboring communities funds to create proper amenities such as healthcare, and schools, which help the society grow. The company guides the evaluation, selection, management, and reporting. A consistent social sustainability system creates awareness among the people and improves the company positioning in the market. Therefore, Ford’s social sustainability is essential to the development of society. Corporate social responsibility creates a sustainable environment for the business’s prosperity.
Another means of sustainability that occurs within the operations of Ford Motor Company is environmental sustainability. This form of sustainability occurs when the organization volunteers to conduct environmental management activities. Ford Motor Company engages in this form of responsibility by formulating new ideas for automobiles that consume less energy in the form of diesel and gasoline, thus eliminating air pollution (Ford, 2022). The firm started engaging in environmental sustainability 23years ago and fairs well by eliminating consuming products that contribute to land and air pollution. For many years, the company has provided funds to mitigate the consequences of air pollution. Recently, the company, through its strategic objectives, announced its commitment to ensuring that the world evolves into a fully electric machines consumption in production. Therefore, Ford Motor Company indicates its interest in creating an environment cautious objective to help eliminate pollution from their products by the year 2050. The positive attitude towards having a pollution-free environment is appropriate since it builds the brand image and promotes healthy living.
Reasons for Sustainability
Sustainability within a business is crucial because it ensures economic viability. This is a process by which an operating company becomes responsible for developing its economic environment. A reliable business must adhere to all rules in the market to control the flow of goods and services by ensuring that only allowed firms operate. The companies in the industry must pay taxes to the authorities to seek permission to conduct their activities. Such a company that follows all the protocols before penetrating the market ensures that its ownership rights are protected by the government, guaranteeing its customers’ protection from counterfeited products. Sustainability practices are essential for economic viability since they allow firms to use government facilities to ensure their success in operation. A company that maintains a sustainability process receives monetary support from financiers since they know their investments protect them from misuse. The financial support depends on the ability of the firm to manage and make it more productive. Therefore, Ford Motor Company enjoys a solid economic base since it upholds sustainability issues and promotes a collaborative culture that does not expose financiers to trouble.
Sustainability in a business helps create a focused business strategy by equipping it with more unique ideas that ensure its progressive performance. Ford Motor Company has positioned itself in a very strategic manner that helps it identify its long-term and short-term objectives. For instance, the company projects to have evolved its products into more environmentally friendly structures by eliminating pollution and engaging with electric machines by 2050. Therefore, its management has to create an effective strategy that will aid in the achievement of this goal. Sustainability activities help organizations effectively organize themselves to achieve their objectives within the required timeline. The focused plan must comply with the government’s laws since any misleading activity may contribute significantly to the company’s disbandment. The program should be legal and incorporate specialists to help align it with the organizational goals. Ford Motor Company has different strategies that will facilitate the business to achieve its vision and mission of bettering people’s experience with its products.
Another reason sustainability is critical in an organization is that it equips the business with the capacity to deliver to the consumers’ demand. Sustainability plans help the organization formulate strategies that allow it to meet the requirements of its customers. It helps create deadlines and timelines for the business to meet its objectives. Additionally, the sustainability issues push the firm to develop products that meet societal standards to maintain a good brand image and gain a competitive advantage over rivals. The programs provide information essential for the development of plans. Adapting to the customer’s demands improves the state of the relationship with the firm. An excellent relationship with the customer eliminates negative compliments and ensures that the consumers are satisfied with the quality of the automobiles they obtain from the company. Ford Motor Company uses sustainability plans to create awareness among its customers about its most recent products. Advertisement using these issues equips the company with the ability to deliver to its customers.
Furthermore, sustainability enhances the firm’s social impact on its stakeholders. The employees receive the best working conditions from their employers and obtain the best payments for their contribution to its performance. In addition, they receive quality amenities from their environment. Proper management of the employees guarantees high productivity and motivates them to create new ideas for the company to embrace. Thus, the management and the workers have firmly founded interaction, and each is aware of the conditions that prohibit efficient performance and may swiftly respond to them. On the other hand, the business management department uses sustainability issues to respond to customer demands. It ensures that it successfully meets them to ensure that the consumer is satisfied with the end products. In recent years, Ford Motor Company has recalled some of its final products to ensure that the end user does not suffer from the side effects of inefficient tools within the car. Hence, the company reduced the cases of failure of some of their automotive parts, such as the failing airbags. In other plans, the company has ensured that all its shareholders receive their returns from their investments, preserving peace.
Effects of Sustainability on the Consumer Behavior
Sustainability issues enormously affect consumer behavior and preference by influencing their attitude towards the business. Consumers’ behavior towards the company is controlled by the firm’s performance and how it treats the stakeholders. The sustainability issues influence the connection between the management and their clients. For example, consumers prefer to consume more from a company if its strategy is efficient. A company that maintains sustainability measures ensures that the customers receive appropriate information that helps them in decision-making processes. Economic sustainability techniques influence the pricing since more companies have exposure to the strategies to control prices, ensuring stability in their products’ costs. Economic sustainability guarantees the consumers that the company does not exploit them. Hence, those aware of a company’s sustainable levels may have the power to decide whether to consume the products. Ford Motor Company attracts more customers in its local market since they have maintained a relatively lower price on their products by employing sustainable measures on their finances.
Conversely, social sustainability measures influence consumer behavior by determining their interest in the products available. These methods of maintaining an excellent business concern over the social welfare of its stakeholders influence the customer’s choice. A client will prefer to consume from a company that considers its stakeholders’ position before making business decisions. Businesses that allow the community’s contribution within its environs in decision-making processes enjoy a massive following from customers since they wish to promote the business and aid it in positively changing the lifestyle of its stakeholders, including the community. Therefore, employing social sustainability strategies helps the industry attract more customers to buy its products. Ford Motor Company has contributed to developing a good society for decades by providing social amenities for its employees, shareholders, and the local community.
Environmental conservation is another issue in businesses that affects the company’s general performance by targeting to alter the consumer’s behavior. The current generation is concerned with the conservation of the natural environment. World organizations have encouraged people to consider environmental conservation a severe matter of the 21st century. Therefore, any organization contributing to pollution and ecological degradation faces extreme opposition from activists and the general public. Government organizations in different countries have played a critical role in ensuring that there is no destruction of the environment. Some encourage the centralization of these companies to ensure that there is no widespread pollution in different parts of the country. Consumers, in unison with the government and other environmental conservation bodies, have contributed to the company’s general performance. It is profound that consumer behavior in the current world is influenced by the business decision to uphold sustainable issues.
Impacts of Consumer Behavior on the Business
Consumer behavior affects the business in many ways, from production to marketing and selling the products. It determines the number of products that the company will produce. High demand for the products influences the management to spend more resources to create the effects. Consumer behavior helps the management to determine the units of items they are supposed to develop to meet the growing consumer demand. The higher the consumer demands, the more the number of units that the company creates. When the consumers prefer one product line over the other, the company produces more items of the product that the consumers demand most. Consumer behavior affects the business since it determines the resource allocation processes.
Another way consumer behavior affects the business is by determining the profit margins. Positive consumer behavior ensures the company makes more sales since it improves sales. Additionally, good behavior ensures the industry enjoys a considerable following since loyal customers recommend the products to others. The business’s profit margin increases as more people prefer the product. Therefore, consumer behavior plays a critical role in maintaining the profit ratios within the industry.
Additionally, consumer behavior may affect business performance by determining the quality of the products. The company has to improve the quality of the products they offer based on the consumer’s behavior. A negative response from the clients helps the firm conduct research and interrogate why the customers resent their products. After the market research identifies the areas that need correction to upgrade the quality of the products, the business must create a reliable system to help identify the difference between the available and desired quality of the products (Razak et al., 2020). Business success relies on customer preference since their goal is to obtain maximum utility from the products. Consumer behavior defines the quality of the products that the business offer. Moreover, consumer behavior affects the pricing of commodities; hence very essential for firms to take critical notes on their response. All companies determine their prices based on the quality of their products, the demand, the cost of production, and the interest profit rate. Consumer behavior in the market influences the company’s pricing modes.
Impacts of Sustainability on Local and Global Performance
Economic sustainability is essential for the local performance of a company since it reduces the costs it incurs in purchasing the fuels. It lowers production costs, making it practical for the business to retain its profit margins. Another way sustainability affects the company locally is by reducing the health impacts caused by air and water pollution. Businesses ensure that they are sustainable and maintain high standards of protection by creating a conducive environment for everyone to coexist. Sustainability provides equal treatment of people without discrimination due to gender, disability, or race. For example, Ford Motor Company may embrace the formation of new car models that are self-driven, provided they have the direction to the traveler’s destination. Such models will eliminate discrimination against the many disabled people who cannot drive. Sustainability is vital for organizations since it helps them to maintain good relations with their clients. In addition, they ensure that the management is on terms with other financial supporters since they receive their dividends in time. Sustainability creates a conducive environment for the business and a reliable system of support for efficient business performance.
On the other hand, internationally, sustainability is essential for businesses since it helps them to obtain resources from international suppliers at affordable prices. It guarantees firms high international relations and builds an excellent path for the companies to supply their products abroad without any bother (Razak et al., 2020). The models help firms to create unique business ideas that enable them to penetrate the new market hence providing more customers for their products. Sustainability is a global concern in businesses, especially on those issues that focus on global warming and environmental conservation. International bodies recognize the contribution of the business organization towards the development of contingent measures that guarantee the protection of human rights and the provision of social amenities such as healthcare services. Such acts create awareness about specific brands and offer promotional services to many organizations that participate in sustainability procedures. Businesses need to accommodate sustainability strategies in their operations to create an efficient and reliable environment r
Recommendations
Some primary means the Company may use to expand its market operations are engaging in digital marketing, accommodating environment-friendly cars, and creating self-driving vehicles. These activities will enhance the business’s sustainability by ensuring enough resource management and appropriation of the available funds. Hence, the company will thrive through its operations at all times. Digital marketing is essential for increasing awareness among the youth and other international places where physical access may be difficult due to increased movement costs. Digital marketing involves using social media platforms to create awareness about the underlying conditions of sales and purchases. Ford Motor Company needs to incorporate the strategy in its promotion since it will boost awareness and enhance sales. Some social media platforms applicable in advertisements are Facebook, Instagram, and Twitter, among others, where the target audience lies. Such a form of marketing will help the company to obtain a direct response from their customers through the comment and specific messaging sections. Thus, it will have accurate information on the customers’ demands and avail them to the market.
Alternatively, the company may enhance its vehicle models to be more environmentally friendly. The process may involve improvising more modern ways of reducing smoke emissions from the recent models. Ford Motor Company must create new electronic models for the cars they manufacture. Embracing new technology in vehicles will ensure they preserve the environment by eliminating noise and air pollutants. Burning down diesel and gasoline creates harmful products from carbon (iv) oxide and other hazardous gases to human life. The petrol and diesel-driven cars will have wiped out of the market, ensuring environmental conservation. The company must find other alternative means of protecting the environment from pollutants.
Creating self-driven cars is another strategy the company may use to improve the sales of its products. The act will provide more customers to buy the vehicles since people with disabilities will contribute significantly to the market share increase. The move will enhance the company’s operations and provide a competitive advantage since they will have unique products that other companies lack. Ford Motor Company may have better control over the market by targeting a new audience rivaling companies that have not identified to widen its market base. Being cautious with the underlying campaign for a greener environment may help the company to attract support from organizations that lead the fight against pollution hence benefiting from the recommendation. One of the sustainability strategies that Ford Motor Company can utilize is environmental conservation and awareness to enhance prosperity and resource management.
In addition, the business may target the younger generation that comprises the millennials and the generation Z by developing more unique car models that focus on the outlook, the quality, and the speed at which they may move. Considering these features while creating the cars will attract more people from the younger generation and expand the demand. Incorporating these strategies in the formulation of vehicles will help improve the brand image and increase the market size since it pays close attention to critical characteristics people like. An intensified concentration of customer preference will help the business to obtain a broader market.
Conclusion
Ford Motor Company has been in the automotive industry for a long time. It has thrived in its operations by meeting consumer demands and incorporating strategic business activities that maintain its value. The business provides commercial and luxury automobiles for its customers and ensures that it allows for quality products that improve the brand image and name. The company is strategically positioned in the market and conducts frequent market improvement plans to accommodate new and current technology in its product line. Ford Motor Company has embraced different characteristics that identify with its brand image.
A long-time existence in the market builds a strong brand for the company and gives it a strong positioning in the market, with most people around the globe identifying with its products. It has a competitive advantage over its rivals since it is experienced and has stood the test of time. Being a pioneer brand in the market provides a comprehensive customer awareness of the product line, making most people in the United States have their cars from this company. The presence of the company’s main headquarters in the United States has contributed to its main focus is local. Many citizens within the US have acquired the company’s products up to the point of saturation. Hence, the company seeks sustainable strategies to ensure that it retains a wide market range and penetrates international markets.
Sustainability issues in businesses are essential since they help the industry determine consumer behavior. The customer’s response towards the company products reflects the sustainability issues in the business. It depends on how the company treats its employees, the staff, shareholders, neighboring communities, and the environment. Such awareness and attentiveness to the critical issues of concern within the business operation line enhance its growth. The main types of sustainability are economic, social, and environmental. They focus on maintaining a conducive environment for the industry without worry. Sustainability in businesses creates a strong relationship between the management and stakeholders. It ensures that the firm manages its resources and creates a dependency between the organization’s different departments, increasing production efficiency. It determines consumer behavior, whereas customer choice examines the company’s profitability.
References
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