righttopBTEC LEVEL 4
40000100000BTEC LEVEL 4
-1005881603264002009671399233BUSINESS AND BUSINESS ENVIRONMENT
900007300BUSINESS AND BUSINESS ENVIRONMENT
Ford Motor Company
Ford Motor Company is the largest automotive manufacturers in the world. It was established by Henry Ford on June 16, 1903 and headquartered is in Dearborn, Michigan, US. The company sells and manufactures automobiles as well as commercial vehicles of Ford and Lincoln.
Ford’s mission states that people working together as one team, working together effectively as one plan and delivering profitable growth as one goal.
Ford’s vision statement is “automotive leadership, emphasis on stakeholders, lean business, satisfying the customers as a global enterprise.
Ford focuses on building its global leadership in trucks, vans, commercial vehicles and performance vehicles. It continues to expand from an auto company to mobility company. At the same, Ford is transforming its parts of business including luxury, small vehicles and emerging markets.
The primary goal of Ford Motor Company entering into partnership is to reduce injuries and illnesses and Ford participates to explore ways to strengthen their supply chain and human rights violation.
Aston Martin, the leading UK manufacturer and producer of luxury British sports car. Their rich and prestigious outlines Aston Martin as something truly unique within automotive history. Aston Martin defines their machines as power, beauty and soul highly emphasised in everything they do. Aston Martin is the ultimate, luxury and powerful performance cars. Their headquarters are in Gaydon, Warwickshire, England.
Aston Martin’s mission is to be the best in every area by providing customer experience, being the best place to work and strongly support the community as one.
Aston Martin focuses on developing strategy for the business and operate environmental system. It also monitors all the objectives and targets of environmental performance.
Aston Martin and AMG plans to enter into partnership which will supply engines and components for Aston’s future models. It is a private limited company.
Ben – Support for life
Ben is a non-government organisation that partners with the automotive industry to provide help to its people and their families.
Ben’s mission is to make a positive difference to people’s lives.
Ben’s vision helps in providing and supporting the employees and dependants. It adds value to individuals, business and the sector in general.
The purposes of Ben are to help the industry by improving the health and well-being of its workforce, reducing workload, improving productivity and raising morale. It also provides high quality care for those in later life at their excellent care centres.
Ben, an automotive industry plays a vital role in funding the services they provide for people. It is a partnership company for raising awareness of services.
Ford Motor Company
There are many shareholders of Ford such as The Vanguard Group Inc., Black Rock Fund Advisors, Wellington Management Co. LLP etc. Currently the company has £15 shared capital. The price per share was £64.50. The company has registered them with the New York Stock Exchange to sell share public.
The firm owns 201,000 employees at different production departments to meet its goals and objectives.
The scope for Ford company is to manufacture and supply model vehicles. The services provided by Ford Motor Company are Automotive Financing, Vehicle Leasing and Vehicle Service.
The stakeholder’s interest addresses the major programs and strategies to develop more products and minimize cost. For examples, more affordable, more energy-efficient and increase customer satisfaction.
Aston Martin has invested capital of £550,000,000. The firm owns 1,850 employees. They have large manufacturing basement and main production department in other countries.
The shareholder of Aston Martin is Italian private equity firm. Currently the company has £15bn shared capital. The company has registered them with the London Stock Exchange to sell shares to public.
Aston Martin provide their best services by completing within a 12-month warranty, by updating software, etc. Their techniques are quite talented with the latest techniques.
Ben- Support for life
Around 201-500 employees are working in Ben automotive industry.
The company makes, sells, services, insure, finance and provide automotive related products and services. It provides information, advice guidance by telephone, online and in person. It can also provide700 partner organisation including debt advisors and mental health charities.
Ford Motor Company
The function of Ford Motor is depending on different functions such as marketing, finance, IT, production development, manufacturing, purchasing, supplier technical assistance and communications and public affairs.
One of the biggest function of Ford is marketing and sale services. It helps to create the essential bonds between the supplier and customers. They ensure that their products and services are best and brand image goes from strength to strength. The team focus on getting greater customer satisfaction and developing profitable market share.
The finance function within Ford seeks to achieve business objectives and goals with pride, capability and leadership. Financial activities are analysis, treasury, accounting and internal audit. This function provides valuable reports on financial performance and its position. The funds are allocated to various part of departments to measure the financial resource.
The function of Information Technology(IT) at Ford has improved the vehicles for safety, economy and entertainment. It also enables the customers to purchase in online. This function makes a real perfect solution for development of high quality vehicles.
This figure illustrates the organisational chart of Ford that it includes chairman, CEO, and other directors. In all levels of management, everyone cooperates with each other to fulfil the objective and targets of the company. So, organisational objective is linked with organisational structure.
PESTLE Analysis of Ford Motor Company
The positive and negative impacts discussed in PESTLE analysis.
Ford Motor Company has faced political environment and political system risks. The company has faced many issues and opportunity due to some impacts such as:
Government support for technological innovation(opportunity)
Increasing international trade agreements(opportunity)
Increasing infrastructure with government effort in developing countries(opportunity)
Ford is a large company and it has good relationship with the government. Moreover, Ford provides environment friendly products and has opportunity to use government incentive for innovations. On the other hand, Ford’s trade agreements have an opportunity to expand its operations, which helps other companies to enter into foreign markets. Apart from that, infrastructure is improving in developing countries including transportation infrastructure.
According to the Ford’s case, the external factors which influence macro environment are as follows:
Growth of U.K economy(opportunity)
High growth rate of developing countries(opportunity)
Strengthening U.K pound(threat)
Ford has been rapidly increasing fast sales in U.K economy, as the company’s biggest market. The organisation has an opportunity to expand its business in other countries with a limited presence. Strengthening U.K pound is an external factor to reduce profit margins and many raw materials produce in U.K.
According to the social external factors in Ford’s are as follows:
Increasing demand for electric automobiles(opportunity).
Moderate attitude about customer service(opportunity)
Increasing wealth gap (opportunity and threat)
Ford has got the opportunity to provide products to satisfy customers which increases demand for electric automobiles. The organisation also has an opportunity to improve its service, especially after sale services. However, the company has widening wealth gap which threatens to Ford Lincoln automobiles.
In Ford, technological external factors develop its potential in macro environment:
Rising use of e-commerce(opportunity)
Increasing use of online fulfilment services(opportunity)
Limited network of alternative fuel stations(threat).
Ford has that opportunity to create e-commerce capabilities. Also, the firm can improve its performance through online fulfilment services. For example, Ford vehicle parts can be delivered to customers through these services. On the other hand, the company’s potential growth in providing fuel vehicles may suffer in limited fuel stations.
The condition of Ford’s macro environment determines the external factors as follows:
Declining oil reserves(opportunity)
Low carbon trend(opportunity)
The organisation has an opportunity to develop more environment friendly products. Low carbon trend takes advantages as same as environmental conservation. Also, Ford produce new products to use fuels that impact of declining oil reserves on remote countries.
Some of the legal factors of Ford Motor such as:
Environmental protection regulation(opportunity)
Increasing safety regulations(opportunity)
Increasing intellectual property laws worldwide(opportunity)
The organisation has an opportunity to improve its business to address the effect of environmental protection. Also, Ford can improve product design based on safety regulation. Moreover, Ford create protection for intellectual rights and property.
PESTLE analysis of Aston Martin
Aston Martin has faced many political issues and opportunity due to some impacts such as:
The employees minimum wage in Aston Martin increases relatively high to increase the power of workers in the organisation. EU regulation has found threat in U.K that emission of carbon from luxury cars had already complaint about it.
According to the Aston Martin’s case the external factors which influence macro environment are as follows:
The rising inflation within Aston Martin caused higher costs of materials and increases car prices. The organisation can expose their exchange rate through various channels so that to do that they should also have assets and liabilities to increase/decrease a firm’s exposure.
The social external factors in Ford’s are as follows:
In automobile industry, ethics are some major practical issues in case of prices of cars with customers. However, in demographic factors, Aston Martin sell their vehicles to their customers who have driving licence.
In Aston Martin, technological external factors develop its potential in macro environment:
Aston Martin has introduced new production methods to increase its revenue and to cope with goals and objectives. The company manufacture new products every year to build brand image. Recently, Aston Martin updated technical information in website about vehicles so that customers can access to IT.
Some of the legal factors of Aston Martin such as:
In automobile industry, customers have right to reject car for a full refund within 30 days of purchase or any repair should be done within first six months. Aston Martin has flexible labour markets to make easy to create jobs and manufacture domestically owned vehicles.
SWOT Analysis of Ford Motor Company
SWOT analysis of Ford illustrates both internal and external factors in its business.
The first strength of Ford is its strong brand image that it continues to stand in top position among the competitors. Attractiveness towards customers increases across the countries like China, approach high growth of Ford company rapidly. Financial performance rises according to their expectation and provides innovative engineering.
One of the Ford’s weakness is that the production facilities are limited as compare to competitors. Innovation process are very slow, and their production cost are relatively high compared to others.
Ford is introducing a green automotive technology to satisfy environmental concerns. Increasing production sales and expanding its brand into new emerging markets. Ford also focuses on reducing the cost of supply chain.
Ford is facing fierce competition in global market like General motors and Toyota. Fluctuation caused slowdown in the global economy and its products would threaten the performance.
Strength and weakness of Ford Motor company are interrelated with external macro factors. Any sudden changes in macro environment affects the decision taken by top level management. Interrelationship between macro environment and company’s strength and weakness are as follows:
Economic factors: Factors affecting Ford Motor includes changes in economic circumstances. As years past, Ford has been facing many circumstances due to ability of maintaining their level of business which makes a large firm difficult to cope up. The organisation always ready to face the challenges arises in economic factors.
Political and legal factors: Legal rules and regulations and policies are the factors of political and legal. Changes in these legal policies affect Ford Motor to face legal challenges. The organisation must have recruit more specialised staff and expertise.
Social factors: Ford focuses on advertising their products without considering customers belief. The organisation should have good staff to understand the customers taste and preferences as per their demand to buy their products.
Technological factors: Ford Motor company recently introduced a new technology “smart car”. It is a vehicle which understands the types of music the driver prefers and gives voice commands. The organisation should have good financial resources to meet with up-to-date technology.
Environmental factors: Organisation like Ford Motor manufacture vehicles which indirectly cause environmental pollution. So, the management of Ford should take measures in producing environmental safety cars.
Strength and weakness of Aston Martin company are interrelated with external macro factors. Any sudden changes in macro environment affects the decision taken by top level management. Interrelationship between macro environment and company’s strength and weakness are as follows:
Economic factors: Factors affecting Aston Martin includes changes in economic circumstances. The company has been facing many circumstances due to ability of maintaining their level of business which makes a large firm difficult to cope up. The organisation always ready to face the challenges arises in economic factors.
Political and legal factors: Legal rules and regulations and policies are the factors of political and legal. Changes in these legal policies affect Aston Martin to face legal challenges. The organisation must have recruit more specialised staff and expertise.
Social factors: Aston Martin focuses on advertising their products without considering customers belief. The organisation should have good staff to understand the customers taste and preferences, income level etc.
Technological factors: Aston Martin company is launching of new technology with existing technology to adopt changes in the business. The organisation should have good financial resources to meet with up-to-date technology.
Environmental factors: Aston Martin manufacture vehicles and it must follow environmental laws. So, the management should prepare strategies and follow all the conduct.
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