The paper "Strategic Audit of Ford Automobile Company in the Middle East" is a wonderful example of a case study on management. The auto industry is one of the most competitive industries in the world because of several companies within this industry (Jurevicius, 2013). In this industry, globalization started early enough and all that the companies do is to change strategy quite frequently to gain a competitive advantage. Changing markets require new strategic reactions that need new changes to be made to the existing structures at any particular time.
According to Muller (2010) auto report indicates that in 2003, Ford through its distributor in Saudi Arabia sold up to 100,000 Ford and Lincoln automobiles since starting its operations in 1986. This shows that the company has the potential to do well in future markets in the Middle East. This can be driven by management assurance and strategic plan where management uses unique competencies and identifies the value proposition in the initiative in the region (Jurevicius, 2013). This industry can be described as a consolidated one. Based on the information, this report carries out the strategic audit of the Ford automobile company in the Middle East. 2.0 PESTEL analysis For Strategic purposes, Ford Motor Company must understand the changes that have taken place in the Middle East business environment where it is operating and how it influences their decisions and actions.
Facets to take into consideration are Political, Economical, Social, Technological, Environmental, and Legal environmental. 2.1 Political Middle East countries like UAE, Saudi Arabia holds strong views on the stability and law on taxes, trading agreements, and economic policies (Terterov, 2006). This is because they understand that strict laws are the pillar of their growth in recent years.
However, stability is threatened by issues like a dictatorship, unemployment, and terrorism. Recently, dictatorship in the Middle East has resulted in the “ Arab Spring” in Syria and Yemen (Scribd, 2013). Conflicts have also been going on between Palestine and Israel for a very long time.