Organizations play a fundamental role in both the local and international societies. Typically, all organizations strive to understand how they are progressing on certain issues. First, they want to know how well they satisfy the needs of their clientele. Second, they seek to have insight how they are adapting to changes in their internal and external environments. Third, firms are always in dire need of understanding their ability to identify a new niche in the competitive market environment. Lastly, companies often evaluate how well they are identifying and mitigating risks and challenges that might affect their future relevance, effectiveness, and viability (Clark, Mitchell, & Cash, 2006) . Insight into all these issues is attainable only if an organization conducts a regular environmental assessment. Organizational global environment assessment (OGEA) is a multifaceted process that is usually done depending on the activities of an organization. In spite of the noted differences, all OGEAs ought to comprise of the macro-environment (general) and competitive environment (task). In that respect, this article shall provide an OGEA of Ford Motor Company (FMC).
About the Company
FMC is an automobile firm that has its headquarters in Dearborn, Michigan. In the fortune list comprising of 500 companies, FMC is ranked 23 rd (Fortune.com, 2017). FMC operates under the motor vehicle and parts industry. Notably, Ford motor company manufactures a variety of automobiles that are sold in the market under the brand name Ford. Being a multinational firm, FMC has established production and assembling plants in many parts of the world. The company also invests in other enterprises like GAZ and Mazda in Russia and Japan respectively. FMC vigorous activities in both the local and international markets have rendered the company a leading manufacturer and seller of automobiles. For example, in 2016 alone, FMC generated revenues worth $151.8billion. The net income for that particular year was $4.6 billion (Fortune.com, 2017). Furthermore, as at July 13, 2017, the company reported an estimated $46.4 billion market capitalization.
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The Macro Environment of FMC
The macro environment of organizations comprises of many components. They include but not limited to technological trends, output, technology, demographic changes and sociocultural trends. Nonetheless, this article shall discuss output and technology as they relate to FMC.
Output
FMC manufactures different varieties of automobiles. The products, notably, have been divided into three primary categories. These include personal, commercial and future vehicles (Ford.com, 2017). FMC has different models of personal vehicles. Typically, these cars are meant for personal use. On the other hand, the company manufactures commercial trucks that facilitate the movement goods and a large population of individuals from one place to another. Lastly, future vehicles are those cars and trucks that are relevant in the future. These locomotives have unique features such as the ability to move comfortably on the sand and extremely rough terrain. F-150 Raptor is a future model that has unique features that improve the experience of the users.
Not all products of FMC are marketed under the brand name Ford. Others, especially luxury vehicles are sold under the brand name Lincoln. On the other hand, auto parts are availed in the market under the brand name Motorcraft (Ford.com, 2017). Importantly, FMC designs its products to meet the particular needs of the consumers. It achieves that goal by collects customer feedbacks and using them to create novel products. The F-10 truck, for instance, was created through this method. Nasr et al., (2014) cited that positive consumer feedback is key to ensuring that organizations improve their products and services. FMC has thus capitalized on this aspect to create its products.
Technology
In today’s world, organizations are required to embrace technology to improve their products as well as ensure that the customers are satisfied. Like other firms, Ford has significantly embraced technology to improve customer satisfaction. Technology has extensively been adopted from creating and manufacturing to selling and service provision. On the other hand, since the Ford Pinto case, FMC has always remained committed to initiate and implement innovations that would make their products safer users (Ford.com, 2017). Through such innovations, the company has managed to manufacture vehicles that consume little fuel and emit minimal carbon (IV) oxide to the atmosphere. Apparently, the use of such innovations has helped the firm to realize its corporate social responsibility (CSR) which is to manufacture products that have little or no harm to the environment. Ali et al., (2014) indicated that achieving CSR helps organizations to strengthen their relationship with various stakeholders such as the customers. Furthermore, FMC is one of the firms that have extensively utilized high-strength aluminum in the production of locomotives.
The Competitive Environment of FMC
The competitive or rather the task environment consists of many elements such as customers, rival firms, new entrants, suppliers as well as substitutes and complementary products. Nonetheless, this article will analyze the customers and the competitors of the FMC.
Customers
The success of any organization is dependent on the ties that the firm has with the various stakeholders including the customers. Where strong relationships exist between a company and the customers’ both maximum loyalty and minimum conflicts will be experienced (Carpenter, Bauer, & Erdogan, 2009) . FMC clients hail from different parts of the world. On the other hand, the demographic details of the customers vary from one place to another. Traditionally, the ability of a person to purchase a product is mainly influenced by their socioeconomic factors. Automobiles are not basic products. Thus, individuals who are willing and able to afford such product can have it. Furthermore, the ability of the customers to purchase vehicles is dependent on the importation policies set by their states. Some countries have laws that raise the final cost of the product and that impact negatively the ability of customers to purchase the product.
Competition/Rival Firms
In any market, there must be competition. Health competition plays a vital role in improving market conditions. FMC faces stiff competition from other car manufacturing companies. These include Toyota, Chevrolet, Honda, Hyundai, Nissan, and Chrysler. All these companies have shown tremendous improvements in innovation and sales. Nevertheless, FMC has managed to maintain a competitive advantage in the market due to the following reasons. First, the company embraced strategies that led to the improvement of its market share, revenues generated, and production of fuel-efficient and environmentally friendly cars. Second, it adopted a centralized system of decision making that permitted the firm to focus on opportunities that emerged in both local and international markets. Third, the management was more engaged in the production of vehicles that meet the expectation of the customers. Concisely, most of the strategies used by FMC were customer-centered and led to increased customer satisfaction and loyalty.
Conclusion
FMC has managed to sustain its productivity in the market due to its significant innovations and customer centered approaches. The biggest challenge facing FMC is technology and competition oriented. As mentioned herein, competition between various firms is healthy. However, when a company fails to adapt it would no longer be competitive, and that would make it cease its operations in the market. On the other hand, technology is always evolving. As such, the firm needs to update its processes regularly in order to remain competitive. In spite of the stated challenges, FMC has managed to stay competitive due its sound strategies and culture of innovativeness. Through improved innovation, the company has managed to manufacture vehicles that are safe, fuel efficient and environmentally friendly. Moreover, the innovations have enabled the firm to cut down production costs. As a result, the company has gained a cost advantage that has given the firm a competitive advantage.
References
Ali, I., Rehman, K. U., Ali, S. I., Yousaf, J., & Zia, M. (2010). Corporate social responsibility influences, employee commitment, and organizational performance. African journal of Business management , 4 (13), 2796-2801
Carpenter, M., Bauer, T., & Erdogan, B. (2009). Principles of management . ISBN 978-1-4533-2688-6.
Clark, W. C., Mitchell, R. B., & Cash, D. W. (2006). Evaluating the influence of Global Environmental Assessments. Global environmental assessments: information and influence. MIT, Cambridge , 1-28.
Ford.com (2017). Ford . Retrieved on 20 th July 2017 from http://www.ford.com/.
Fortune.com (2017). Ford Motor . Retrieved on 20 th July 2017 from http://fortune.com/fortune500/ford-motor/.
Nasr, L., Burton, J., Gruber, T., & Kitshoff, J. (2014). Exploring the impact of customer feedback on the well-being of service entities: a TSR perspective. Journal of Service Management , 25 (4), 531-555.
