BUSINESS STRATEGY: A Comprehensive Analysis of Ford Motor Company

BUSINESS STRATEGY

EXECUTIVE SUMMARY

The report has analysed that Ford motors adopts the strategy of intensive growth strategy through market penetration. The organizations aim at increasing the sales in the current market after analysing the impact of external business conditions.The business has increased its dealership in various locations to ensure that the brand positioning can be improved. The entire study is being based on the Ford motor organization and the business strategy that is being used by them to achieve high level of success in the market. Thus, various frameworks are being used like Pestle that may help them analyse the external factors that may affect the business and different trends that they can adopt so that they can meet the desire of the customers and even the country where they are performing their operations. The report further recommends the use of product diversification as an effective method of entering new market for success.

Introduction

The word business strategy refers to the actions or decisions taken by the organisation to achieve the business's goals and be formidable competitors in the industry. Thus, in short, business strategies are the company's plan that they adopt to achieve the organisational goals and make the business more successful in reaching and for achieving the top position in the market (Aithal, 2017). Thus, the following report is based on the business strategy of the well-known automobile company named Ford Motor Company. It is an American multinational automobile company. Further, the information consists of the impact of macro environment on Ford and its business strategies, its internal environment and capabilities, outcomes of Porters five models and application of model and theories to understand the interpretation of strategic directions.

LO1

P1: Analysing the impact and influence of the Macro-environment on Ford Motor Company and its strategies.

Overview of Ford Motors

Ford Motors is an American based multinational organization dealing in Automobiles. It is well known brand in the automotive and global mobility. The main activities of the business include designing, marketing, manufacturing and servicing of automobiles. The business aims at ensuring effective customer service so that a competitive brand positioning is developed. The organization has a long history of 117 years in contributing to global distribution of automobiles thus shaping the comfort and experience of the people.

The word strategy in the context of business refers to the actions of the company's plans, which the cited organisation adopts to achieve their organisational goal. Thus, to achieve those targeted objectives of the business. Further, the Macro environment refers to the conditions prevailing in the economy(Anastasiu et.al. 2020). Thus, some macro-environmental factor may have an impact on both positive and negative on the business and the strategies of the above-mentioned organisation. Hence, the impact of the macro-environment on Ford and its system are discussed below.

Political factor: Political factor means the rules and regulations made by the government. Thus, it is one of the external factors that impact the business as the cited organisation does not control this environment. Further, the government may increase the tax rates, import duty or export duty on purchase or sale of the cars, which can directly impact the business of the Ford Motor Company and its business strategies. Further, due to Brexit, the relationship between various countries and America is damaged, and hence, it is affecting the import and export of the products. Thus, it is affecting the business of the cited organisation (Anastasiu et.al. 2020). Research suggests that this political upheaval might cost ford with $1 billion. This vulnerability has increased due to the decentralised supply chain of the business in the Europe and new investments related to manufacturing based in the UK. This can lead to a serious loss of business. The Brexit has therefore created an impact on the UK and European supply chain after the happening of the Brexit. This creates na impact on the investment made by the business towards expansion.

Further, the recent political trends in the ford motor company are increasing the motor car's innovation and expanding the business in the various international markets. And for this, they are getting support from the particular government of the global market. Thus, it has a positive impact on the business, and therefore it is the opportunity for the company to increase its target market in the overseas market. Further, even the strong support from politics like governments supports technologies' innovation, increases trade agreements, and increases the country's infrastructural facilities. This will positively impact the business by helping it grow more and making the cited company more capable of achieving their organisational goals.

Economic factor: Economic factors are related to the monetary factors that may positively or negatively affect the cited organisation. Thus, the growth of the U.S. economy, the increase in the growth rate of developing markets and hike in the value of U.S. dollars are some of the positive factors that may help the Ford increase their sale and achieve their goals effectively (Ford et.al. 2020). Simultaneously, the decline in value of the dollar, decline in the potential of developing markets, downfall of economic growth etc. will hurt the organisation as mentioned above. Further, the recent trend in the economy that boosts the ford motors company's business is growing in U.S dollars. Hence, it is an opportunity for the cited business firm.

Covid-19 has created a serious impact on the earnings and living standard of majority people in the economy. It has reduced the purchasing power of the society leading to major loss of brands. The aspects of pandemic have created a loss of $5 million in the second quarter of the year. The share prices have fallen down leading to reduced trust of stakeholders. The business does not have enough cash to meet the needs of the business. Thus, the economic factors have led to the slowdown of business activities and it is essential to ensure that proper strategies are planned so that in uncertain situations the business activities can be managed.

Social Factor: Social factors of the macro-environment refer to the trends, demands and expectations of the customers living in the community (Baškarada and Koronios, 2018). Thus, increase in the markets and movement of using automobile services, increase in the standard of living of the people, increase in income, etc. are some of the social factors that positively impact Ford's business and its strategies. Further, a decrease in trend or demand for automobile services, low standard of living of the people in society, is some of the negative factors that may decline the cited organisation's business. Due to low-income people in the community, they would not demand or afford cars; thus, it negatively impacts the named organisation's business.

Furthermore, the recent trends such as increasing demand for the hybrid automobile and changing the customers' positive attitude towards the automobile industry are the opportunity for the business. Thus, the positive attitude of the society towards the industry will boom the industry's success and the firm and the negative attitude of the society toads the cited firm will decline the business. The role of sustainability in business activities and eco-friendly practices has increased in respect to Covid-19. There has been an increase in the demand for electric cars due to the features of low carbon emission. The beautifully designed model that fulfils the changing government needs related to pollution and environment supports in the growth of ford motors. The demand for electric vehicle has increased due to the changing needs of sustainability and environment friendly approaches.

Technological Factors: The technology changes are essential for the cited organisation to add on the new feature in the cars. But, sometimes unexpected changes in the technology would impact the business of the Ford Motor Company. Nowadays, there is a trend of a generation of artificial agents and drones where these technologies help manufacture the car and advertise it in the market. Thus, it helps increase and attract the customer based on the cited brand (Aithal, 2017). Further, the recent trends can also be a threat as the availability and fuel station network is significantly less. The positive technological factors that increase the cited organisation's business are an increase in mobile computing, an increase in online completion services, and low network of substitute fuel stations.

The artificial intelligence has shaped the business activities and led to the transformation of business activities. The 2019 model of Ford has embedded AI in the wheel driven system. The knowledge among people about the hi-tech sensors has increased and the use of this system in the automobiles provides an opportunity of capturing the large market share. This will not only increase the comfort and satisfaction of customers but also drive the technological growth of the country (Wilson et.al, 2016).

Ecological Factors: Ecological factors are the ecology changes or the environment where the business has been carried out(Bruijl, 2018). Factors affecting positively to the Ford Motor Company's business and its strategies are climate change where customer demand for cars, low carbon trend where the customers except for the vehicles that emit low carbon gas. And save the environment and decrease in the fuel reserves or stock due to which the demand for CNG card will increase. Further, certain negative factors may even affect the business of the cited organisation. Thus, the recent trend of the customers of being very caring towards ecology and nature is motivating the industry to manufacture more of CNG vehicles. Therefore, it is an opportunity in front of the company to increase and trap the market. Further, if the company fails to meet such expectations of the customers towards saving nature, it will lack competition.

Legal Factors: The cited organisation needs to fulfil the legal requirements to carry out its business effectively (Dhir et.al. 2018). The legal act for the protection of the environment, act for increasing the safety measures of the drivers and grow in the security and safeguarding of knowledge and intellectual protection act are some of the legal factors of the macro-environment which will have a positive impact on the business and the strategy of the organisation as mentioned above. Moreover, not following the legal actions, many also lead to a negative impact on the Ford Motor Company's business.Hence for meeting the traditional factors, the cited business needs to work under the regulation made by the government of the particular country. The legislations of Central motor vehicle rules, 1989 and other standards of safety and quality need to be incorporated in the business to ensure effectiveness of the model.

Accordingly, recently the new rules are strictly added for the safety of the customers. Thus, to meet this recent safety regulation act, the automobiles manufactured should be highly safe for the drivers and the passengers travelling in it. Hence, also, it will attract customers. Thus, it can be proved as an opportunity for the business. And if the Ford motors fail to follow such regulation, it will directly affect the company and its growth.

Ethical Factor: Ethical factor is the newly added member of the Macro environment in the cited organisation. It refers to conducting business activities without cheating and without doing any fraudulent activities in the business. Thus, the company mentioned above need to disclose all the truths, facts and figures of the cars, its mileage and safety measure details to the buyer (Araos et.al. 2017). Thus, these factors will also positively or negatively impact the service Ford is giving to its customers.

Hence, the above discussed are some of the positive or negative impact of the macro-environmental factors on the business and strategies of the Ford Motor Company. Thus, to overcome that negative impact, the cited organisation needs to plan the best possible approach.Further, the ethical factors trending in the ford motor company is providing qualitative automobiles and after-sales services. The analysis shows that the ford organization can use various methods of product innovation to support the changing need of environment and lifestyle of people. This is an effective opportunity of growth and increasing the customer base. There has been an increase in demand for hybrid and electric cars in the market. A change in the production pattern will provide the business with an effective opportunity of growth.

LO2

P2: Analysing the internal environment and capabilities of the Ford Motor Company:

The word internal capabilities environment and the capabilities in context to the business refer to the strengths, weaknesses, opportunities, and the threats(Castañeda-Ayarza and Godoi, 2020). Those internal environments would have an impact on the business and the success of the cited organisation. Hence, the internal environment and capabilities of the Ford Motor Company are discussed below:

Strengths:

Strengths are the advantages of the cited organisation that they possess to have excellent and favourable internal environment and capabilities. Thus, the forces of Ford are as follows:

Global recognition: FordMotor Company is a well-known Automobile Company in the world. Further, it is also famous for its marketing and advertising strategy due to which their presence is known in every corner of the world. Hence, this strength of the cited company helps it to increase sales of their featured cars.

Research and development: Further, the research strategy of the above-mentioned organisation is also its strength. As the cited company is famous for making new products, research and development play an essential role in thementioned company.

Diverse offerings: The Ford cars are diversified as per the demographic groups(Dhir et.al. 2018). Further, the cited organisation also considers the demand and the needs of their customers and accordingly, they provide them with a variety of car models and other commercial vehicles. Hence, again this is the strength of the Ford which will grow their business.

Colossal Network: Besides the above strengths, Ford is also having a massive network in its operation and distribution activity. They are available in 62 countries in the world. Hence, they have market capture potential.

Weaknesses:

Weaknesses of the cited company are the things they lack back and which their sale and business can be affected. Thus, the shortcomings of the organisation, as mentioned above, are discussed below:

Product recall: Product recall is the biggest weakness which the Ford faced where they suffered a considerable loss, and even their brand image got affected. AS they lack back in providing safety measures in their cars, they have to recall their vehicles from the market. Thus, they are facing a lot of losses due to product recall.

Weak Foothold: The cited organisation's performance quality and productivityhave been affected due to diversification in many geographical areas in the world. As they lack back in upholding the emerging markets. Hence, because of which their business is getting affected.

Low reputation: Ford's reputation is not so good compared to European and Japanese car manufacturing companies due to technological issue(George et.al. 2019). Further, the cited organisation is considered inferior quality cars compared to German and English brand cars.

Dependence on the U.S. market: Ford's business is entirely dependent on the U.S. and Europeans market due to which their profits and revenues are restricted. The experts assume that the future of cars will be from India and China. Hence, higher dependency on U.S. markets is the weakness of the cited organisation.

Opportunities

Opportunities are the unexpected positive situations in the market which the company mentioned above grab and make their business more robust, successful and competitive. Thus, the possibilities of the Ford Motor Company are discussed below:

Eco- friendly vehicles: The focus of Ford is to be technologically adaptive. Thus, they always try to develop eco-friendly cars to nature so that they cannot harm the environment. Hence, the cited organisation can push for more such vehicles that can be run on any other source of energy. Thus, this is the most significant opportunity in front of the Ford.

Increase customer base: The cited organisation is already delivering its cars in more than 62 countries, and further, they are trying to penetrate the market. Thus, this will help them to increase their customer base by capturing the small market.

Digital Marketing: Today's generation is wholly based on digital marketing. Thus, this is the grand opportunity in front of the Fort to work on digital marketing to promote and advertise their featured cars.

Self-driving cars: The new generation expects self-driving vehicles; thus, understanding this demand of the market the cited organisation should develop self-driving cars to meet the customers' needs and increase their business.

Threats:

Threats are some of the unexpected external environment prevailing in the market, which may affect the mentioned organisation's business (González-Zapatero et.al. 2020). Thus, the threats of Ford are discussed below:

High competition: Ford Motors Company is previously facing tough competition in the market. Hence, they are continuously striving hard to continue their innovations and maintain their position in the market.

The increased cost of the raw material: An increasein raw material price is the threat for the cited organisation. As due to this the developing cost and total cost of the cars manufactured will also increase. Further, this will lead to a decrease in the profit margin and an increase in vehicles' selling price. Hence, due to the increased selling price, the demand for cars may also decline.

Regulations and compliance: Further, due to increasing the acts and laws related to the environment's improvement, the automobile organisations' threat has grown. Hence, for following these regulations, Ford has to develop vehicles that do not harm the environment. Therefore, failing to comply with this regulation would lead the Ford to face the challenge.

Further, the internal environment and the cited organisation's capabilities can also be analysed by using the VRIO analysis.

Valuable: As per this analysis, the financial resource, the products, the coststructure, employees working in the organisationand its distribution network are useful resources and need to use it carefully (González-Zapatero et.al. 2020). Using this valuable resource will help the cited organisation in effectively achieving its organisational goals.

Rare: As per the analysis, the financial resource cost structure, its products, i.e. Its vehicles, employees and its distribution network are also its rare resources, and the organisation cannot afford its wastage. Thus the organisation, as mentioned above needs to use it carefully for achieving their organisational goals.

Imitable: The financial resource, the products of the cited organisation and the patents of producing the vehicles are costly, and they have been earned from a more extended period and with lots of effort. Thus, they are the strengths of the organisation. Further, these costly resources of the cited organisation are not possible for anyone to imitate.Additionally, the networks of the named organisation are also expensive and not likely for anyone to imitate

Organisation: The cited organisation needs to organise its financial resources, and the distribution channel is appropriately managed to achieve the business's value. But as per the VRIO analysis, the Patents and the cited organisation's human resource are not correctly organised. Thus, it needs to be managed to gain the value for the firm. Further, the final help and the network channel are organised effectively, and hence they are used as the competitive advantage against the competitors in the market.

Value chain analysis:

The word value chain analysis refers to the full range of the activities to produce the products or the service to make it valuable.

Thus, the ford motor company's value chain analysis includes the activities from planning the design of the motorcars to its production, sales, and distribution to its ultimate users. It also consists of the after-sales services to make them feel more comfortable with motor cars. Hence, proper value chain analysis will help the above-discussed firm increase its brand value among the customers and the markets.

The value chain of the business shows a downfall in the year 2019 with a decline in the market share by 0.3%. It has although shown extreme effectiveness in its marketing and distribution capabilities to ensure popularity in the market. The business ensures high investment in the activities of research and development so that innovation is managed as per the needs of the customers.

LO3

P3: Application of Porter's five forces to evaluate the competitive strengths:

P

Figure 1: Porter's Five Forces Analysis

(Source: Porter’s Five forces analysis, 2020)

orter’s five forces is the technique used for analysing the competition of a business. Further, it helps identify the potential entries of the new business in the market, suppliers, customers etc. so that he cited organisation can be prepared to face the competition and earn more profit(Iyer et.al. 2020). Hence, Porter's five forces have been discussed below:

The threat of new entrants: Organisations doing well in the automobile industry may be threat for the Ford Motor Company. The entry of a new competitor in the market will also increase Ford's total cost and expenditures. They have to invest more in developing their brand by doing marketing (Yuliansyah et.al. 2017). Further, they also have to incur more capital costs, and even the cost of conducting business activities will be increased. Other than these, they have to invest more in research and development for innovating the features in their cars to attract new customers and retain regular customers.

The ford motors have made effective investments in the field of research, development and innovation thus enabling it to develop an effective brand name. The threat of new entrants thus becomes a weaker force due to the huge investment required by new entrants to compete with Ford.

Threats of substitute: In the market, there are many substitutes of Ford Cars available (ÖNEREN et.al. 2017). Customers can use public transport and bicycles instead of investing in the car. Further, the other substitutes available with the customer are the cars with the same features but at a low cost. Although customers cannot quickly shift to the reserve when they are still paying their car loans, they may change to the substitute once it is delivered.

The threat of substitute is a medium force to the business of ford as these substitutes are not always available. The substitutes show a lower performance when compared to the substitute in terms of comfort and convenience.

Bargaining power of suppliers: The effect of the Ford suppliers is measured in this feature of five forces (Pereverza et.al. 2017). Also, there is an average population of suppliers. Hence, the cited organisation has to purchase the raw material in the high cost and do not have that much bargaining power. Further, due to the raw materials limited suppliers, they cannot change the suppliers for getting the raw material. Hence, due to this, they have to incur more on the cost of producing vehicles. The bargaining power of the suppliers is limited in the market due to the fact that they indulge in forward vertical integration. This leads to a lack of control on the sale and distribution of the products.

Bargaining power of the buyers: The customers of Ford also influence its business. Hence, the buyers are ultimately the business givers to the cited organisation (Pervan et.al. 2018). Thus, the bargaining power of the customers is an essential feature of the porter's five forces. Further, the cited organisation also faces moderate switching costs as buyers may switch to other organisation or brand at any point of point. Along with this, Ford may also face the challenge due to limited numbers of buyers in the market due to which the demand for the vehicles will also be little. Other than this there are various other substitutes available with the buyer to purchase the car from. Thus, due to this availability of the option, the cited firm's business is in danger as the buyers have the bargaining power. And if the Ford is not availing them the cars in the affordable and reasonable price, they may switch to the other option hitting Ford's business.

This is a moderate force to the business as the customer can choose any of its competitors easily, although this is infrequent as the purchasing an automobile is a big investment and cannot be done with just one instinct. The small and moderately available option provides customers with the empowerment of moving on to a substitute but this has to be an initial decision and not an after purchase action.

Competitive rivalry: Tough competition from the market also hit the business and success of the cited firmas the competitors of the Ford Company are Toyota, Tesla, Hyundai, Nissan etc. Thus, the awarded firm need to very active and innovate to compete with these big motor brands in the market. Thus, another aspect of five forces, i.e. competitive rivalry, also influences the firm's business.As there is aggressive competition in the market, Ford must strive hard to win this competition and achieve a market position. For this purpose, they have to incur expenses for research and development, for marketing and promotion to build the image of the brand in the mind of the customers.

Ford is a luxurious brand that needs to compete with famous market players such as Toyota and hence this becomes a strong force for the business due to the neck to neck competition between the market players. In the automobile sector Ford tries to ensure that every new competitive act is performed to enhance the position of the business against that of the competitor.

Further, there is also an exit barrier for the automobile company (Yusoff et.al. 2019). Thus, the competitors would prefer to compete with Ford rather than shutting and exiting the business. Also, leaving the business is more expensive, so competitors continue the business even in the toughest competition. Hence, the cited company should prefer to compete with limited competitors to avoid cut-throat competition and lead the market.

Further, having the best quality and safety vehicles will be a competitive advantage for the cited organisation. There will be no threat of any new entrants in the market as the named organisation is already providing the best services and designs to the customers. Along with this, also there is no threat of substitutes. Further, the buyer and the suppliers' power will also be nil due to this competitive advantage. Along with this, the competitive rivalry will also not be there as the cited organisation will be providing the best product at the best reasonable price.

LO4

P4: Application of theories, concepts and models for strategic planning of the Ford Motor Company:

Further, to apply the theories, concepts and model to pal the strategic planning of the Ford Motor Company, Porter's generic strategies are applied. Porter's generic strategies are the strategies used by the cited organisation to make their business more competitive and increase the quality of the company's performance and productivity (Pereverza et.al. 2017). Hence, the below discussed are porter's generic strategies.

Cost leadership strategy:

The cost leadership strategy of porter's generic strategy aims at being the cost leader of the market. Thus, it seeks to afford the cars at the lowest price to the customers so that more and more customers would afford it and make their minds purchase it. Further, the cited organisation can adopt this cost leadership strategy to offer their cars at a low price and be the cost leader in the market. Hence, it will help the cited organisation increase their profitability by reducing the car costs by charging average industry charges to the customers for the vehicle. This cost leadership strategy also allows the organisation to improve the market shares by setting low rates and making reasonable profits to the business.

But just offering the low cost in the market is not enough as many other competitors in the market may show a lesser price than the Ford. Hence, they need to much confident in attaining this position in the market(Shujahat et.al. 2017). They need to continuously strive hard in terms of having effective logistics, assessing the capital required to invest in technology, low-cost o production so that they can easily maintain the low cost for the cars in the market and continue to secure the cost leadership position in the market. Further

The differentiation strategy: The word differentiation refers to making the cars model's features and services different from others to attract more customers towards Ford Motor Company. As customers always demand something different and innovative, the cited organisation needs to consider the customers' demand and continuously do the research and development in the cars to make it more innovative (Ford, 2020). Further, the Ford vehicles need to be different from others in terms of quality of raw material used, durability, mileage, designing etc. Thus, this differential feature may help the cited organisation increase their customer base and quickly achieve their business goal. Other than this, the organisation's marketing and sales strategy as mentioned above, need also to be different to attract the customers.

Ford has already focused on cost leadership strategy to reach a large target market and it is now focusing on differentiation so as to gain an effective global position. The differentiation in product in terms of innovation of vehicles and better tools will further increase its market share.

Focus Strategy:

Focus strategy of Ford focuses on the same niche market where they want to do the business. Thus, in this strategy, he cited organisation focuses on understanding the needs and demands of that particular market and tries to fulfil those demands to satisfy the customers(Yusoff et.al. 2019). Hence, handling the customers uniquely will build loyal among the customers. Further, after deciding the focus strategy, it is still essential for the cited organisation to determine if they want to focus on the cost leadership or product differentiation. Hence, the focus strategy will help the organisation as mentioned above to focus on the decided market to bring more sales from that market to achieve the business's goals.

Differentiation focus: Differentiation focus is on type focus strategy where the cited organisation mainly focuses on making the cars different from the others' vehicles. Thus, by adopting this strategy, the organisation mentioned above may innovate, and new features in the vehicles may also differentiate their, marketing strategies to attract more customers in the market. Hence, ultimately the profitability of the business will be increased.

Cost Focus: Cost focus is another part of focus stagey in which the Ford Motor Company focuses on having the cost benefits in their targeted market(Yuan et.al. 2020). Thus, in this strategy, the cited organisation focuses on decreasing production cost to provide the cars in affordable and reasonable prices. Hence, adopting this strategy would help the mentioned organisation to secure the top position in the market.

TOWS analysis:

It is the analysis in response to the SWOT analysis.

Strength to opportunities: In this the powers of the cited organisation such as global recognition, diverse offering, colossal network are all linked with its options such as increased customer base, developing eco-friendly cars, digital marketing for achieving the objectives of the organisation.

Strengths to threats: In this analysis, the powers of the cited organisation such as global recognition, diverse offering and colossal network are linked with its threats such as high competition, increased cost of raw material and regulations and compliance to make the cited organisation more aware while achieving its organisational objectives. Further, it also helps the organisation analyse the threats along with the strengths to achieve the goals effectively (Henares, 2020). It will help to understand how the powers of the organisation will help to remove the threats.

Weaknesses to opportunities: In this analysis, the shortcomings of the cited organisation such as product recall, week foothold and low reputation can be developed further to make as their opportunities, Thus, for this, the named organisation need to focus on their weaknesses and set them by using effective way for making it as their opportunity to achieve the goals of the business.

Weakness to threats: In this analysis, it is studied the cited organisation needs to take care and focus on their fault; otherwise, it will be the threat for the organisation. Thus, the weakness such as product recall, low reputation and week foothold need to be focused and solved as soon as possible otherwise. It will be converted as a threat to the organisation as mentioned above.

Recommendations:

Ansoff’s Matrix:

Further, it is the theory based on the various aspects of the market. It helps the business manager to make the right decision for upgrading the success by attracting more customers towards the company and brand.

Market development: Here, in this theory, it is recommended that the business to focus on developing and expanding the company in the new market so that more and more new customers can be attracted. Thus, it will help the business earn more profits and help grow towards the organisation's objectives.

Product development: Further, it is recommended to the Ford motors company to develop and upgrade the cars and vehicles products to experience more up-gradation and innovation. This will attract the customers to purchase more of the cited organisation's cars, and thus, the ultimate aim of the company will be achieved.

Market penetration: This is the business strategy recommended to the above-stated business to improvise the advertising and promote the products in the existing market and to the current customers only so that the firm's objectives can be attained.

Product diversification: Further, it is recommended that the cited business use the market penetration concept where the new product has to be introduced in the new market. It will increase the customer base and increase the newly introduced cars' sales with new modified technologies in the new market. Thus, it willhelp the business improve the business's turnover, and finally, the Ford Company's aim will be achieved.

The study of Ansoff’s matrix in relation to ford suggests that the product diversification is an effective choice of increasing the market share, brand positioning and profitability. The entry into segment of electric cars and low energy consuming vehicles will provide an opportunity of growth in global market. The change in the environmental aspects and taste and preference of the customers provides Ford with an opportunity of entering the market through its new hybrid automobiles that include electric vehicles. A diversification into these aspects of the business will support in higher profits and reaching new target audience. The business can further embed the aspects of AI and robotics to diversify its product variety so that competition can be met with other leading brands (Su and Tsang, 2015).

Conclusion

It has been concluded from the study that the business needs to adopt effective and robust strategies to make the company more successful and expand it further. Further, it is inferred from the above report that the external factors such as political, economic, social, technological, legal, environmental and ethical factors may influence the business. Further, the strengths, weaknesses, opportunities and the threats of the company would also affect the business's success. Thus, the cited organisation needs to understand, analyse those internal and external factors affecting the business to make the business more competitive to achieve their goals. The porter's five forces and porter's generic model are also summarised in the report, which helps the organisation be more competitive and achieve the business's goals.

Hence, planning business strategies is essential for a business to succeed and achieve the top position in the market.

References

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