Question

What Changes Ford Motors COmpany implemented in the last 10 years?                                      

• External or Forces? Discuss

Or

Internal Forces? Discuss?                                                                 

Planned?

Or

Reactive?

What are the "real-world" implications for this case?     

Answer 1

First of all we have to get some knowledge about Ford motor company whose founder is Henry Ford and which was established on 16 June 1903.The Ford motor company generally provide commercial vehicle and automobiles and the luxury cars.

In today's competitive environment a businessman have of think about its customer and customer satisfaction is the priority of every sector so that the company can achieve its organizational goals and achieve their setted goals.

Customer needs and satisfaction is impacted by social, economic, political, legal and cultural environment. The change and creativity is the only success of business and these natures cannot be controlled but affect the functions of the organisation and for proper functioning of business has two forces which is External forces and other is Internal forces now i will explain the these two factors in detail.

Let's start with External forces which affects the business environment.

Now the external forces are those which cannot be controlled by the business firms or enterprises and these external forces are also divided into two parts:

1.Micro or operating environment : operating environment is responsible for the working capacity of the business which is consist of Suppliers, Customers, Market intermediaries, Competitors and Public. The impact of micro environment are explained below:

(1) Suppliers:They are the person who supply raw materials and required components to the company the suppliers must be reliable so that they should not depend on one supplier.

(2)Customers :Customers hold the key to the success of a business. Success of every business or organisation depend on their customer satisfaction. The types of customers are wholesaler, retailers, industries, Governments and other institutions and Foreigners.

(3)Competitors:Every move of the competitors affects the business.Business has to adjust itself according to the strategies of the competitors.

(4)Market intermediaries:They work as intermediate between business and final customer and their types are middleman, marketing agencies, financial intermediaries, physical intermediaries.

(5)Public : Any group who has actual interest in the business enterprises is known as public they may be user or non user of the product.

2.Macro or General environment :These are the forces which creates opportunities and threats to businesses, components of these external forces are as below:

(1)Economic environment :It is very dynamic in nature that keeps on changing with the change in policies or political situations some of economic forces are Banking, insurance companies, money markets, capital markets, economic system.

(2)Political environment: This forces affects the business by the Political belief of Government, political strength of the country, competition with other countries, Defence and military policies.

(3)Socio cultural environment :It influenced by the social and culture factors which is not in the control of business. It include caste and religion, education, marriage.

(4)Technological environment :Technology means systematic application of knowledge to practical work there is vast changes in products and services these changes must be analyzed by every business unit and should adapt these changes.

(5)Demographic environment :It is the study of perspective of population that is size, standard of living, growth rate, age sex composition, family size, income level, education level and many more the business units.