The paper "Ford in China and Industry Issues" Is a wonderful example of a Management Case Study. Henry Ford started the Ford Motor Company in 1903 and has since then developed as a recognizable brand around the globe. The automotive market in North America is considered the 2nd largest in the world where the Ford company is considered among the Big 3 automotive companies. The Ford company employs about 224,000 individuals in about the 90 manufacturing companies in the world. Some of the products that Ford develops include brands such as Mercury, land rovers, Volvo, Lincoln, Mercury, and Aston Martin among others.
Despite the success of the company, the Ford motor company does face challenges such as economic volatile issues and deterioration in the markets among other crises. However, the project evaluates the performance and risk of the country and industry it faces in the market of China. At the close of the year 2015, statistics reported that the automotive sector in China will slow down. There is increasing competition in the country due to a high supply of brands in the market.
Despite the slow growth in the country, over the last decade, the growth in the industry has been very considerable. Additionally, the automotive market in China is the world’ s largest auto market and provides more profitability for businesses. Since the year 2008, the car industry in China has been considered as the greatest automobile in the world. The annual production of the industry in 2009 was more than that of the European Union or the U. S. or the Japanese industry. The home market of China provides the automakers in the country a solid base and Chinese economic planners to build globally competitive auto companies. Statement of Scope and Opportunity of the Investment China’ s household income is growing and improving the sustainable growth of the country.
The policies to increasing urbanization in the country have developed linked to the fact that the passenger vehicle segment is dominating by foreign brands. Thus, Ford investing in the country would benefit it financially. Though the commercial sector is dominated by domestic brands that have about 90% of the market share, foreign brands also have a share and perform well based on the high population and performance of the automotive industry.
The Sports and multi-purpose vehicles in the country have been recording sales increases, which stipulates that the market share is is high and beneficial. Thus, it will be profitable for the Ford industry to invest in the country. Thus, the following sectors will evaluate the risks and opportunities that the Ford Motor Company will face in China and the automotive industry of China. PESTILIED Analysis and Summary Findings The Ford Motor Company is one of the most iconic automobile manufacturers in the world.
In the entire world, Ford is ranked as the fifth most valuable automotive brand and the seventh-largest car. Through evaluating the PESTLE analysis of Ford in China, the risk of investing in the country will be determined. Political Factors The political factors weigh heavily on the automotive industry as environmental issues are considered in designing new vehicles. Thus, the development of new hybrid vehicles is in high demand in the country. The Chinese government has already waived the vehicle purchase tax to promote the purchasing of vehicles and low consumption of petrol to consider the environmental factors.
More importantly, policies to support the automotive industry are developed while considering technological developments such as energy-saving vehicles. Thus, the government supports the development of the industry.
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