Question

Analyze why Ford Motor Company has chosen to pursue a foreign subsidiary strategy

Answer 1

Ford is an american multinational automaker.

Any comapny can use the foreign subsidiary startegy,but company must obey the laws,rules and regulations of the country they are operating in.The parent comapny must have right to carry the financial requirements of the subsidiary.

Many company now using this stratey.One of the firm is ford.Ford is always focus into international acceptance of their products(vehicles),So this will only by starting the subsidiaries.Before we choosing of the subsidiaries the company should aware of the present finacial condition of the country.Then starting a subsidiaries to wide acceptance of the products will happen and the company can acquire a multinational label to the product.The companies are always consider the  investment cost,it should be a other fact,that is compare to parent country the inestment cost is less a company can easily choose this strategy,ford may consider this fact.The cost of a production and labour is another facts,various cost deductions and relaxations will another fact for starting a subsidiary.The company can also consider the corporate taxes and compare between the parent company,the situation is favourable,so the company can start a subsidiary.

Almost all highly reputed compnies are using this strategy,because the company must have a responsibilty to maintain the brand image.The value of the company and spreading the quality of the product is making only by the subsidiaries,otherwise it is only an information,The comapny mainly focus into reach the large number of their potential customers,the customers are mainly aims to feel and use the product as much and not just information and the quality product,they can use and feel it,That will be a success of the company,starting of a subsidiary will help in that way.So the ford like a highly reputed firm choose this strategy