Strategic Analysis of Ford Motors Company Essay

3513 Words Nov 5th, 2009 15 Pages
Company Profile
Ford Motor Company was founded in 1903 by automotive and industrial pioneer Henry Ford in Dearborn, Michigan. Being first to implement a moving assembly line for automotive manufacturing, Ford was able to more efficiently mass produce their products than their competitors. In 1908 the Model T was introduced and went on to sell over 15 million vehicles, firmly establishing Ford as the major player in the early automotive industry with 50% market share by the 1920s. The company went public 1956 and since then has grown to be a significant presence in the global automotive market.
Financial ratios are useful indicators of a firm’s performance and financial situation (Friedlob & Schleifer, 2003). Ratios can be used to
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Agarwal (2004) explains how getting hit with unexpected or unreasonable currency devaluations in the foreign countries in which they operate is a nightmare for global operations managers. Managing exposure to changes in nominal and real exchange rates is a task which the global operations manager must master.
Doole & Lowe (2008) affirmed that politics is intrinsically linked to a government’s attitude to business and the freedom within which it allows firms to operate. Doole & Lowe noted that unstable political regimes exposes foreign businesses to a variety of risks that they would generally not face in the home market therefore posing sometimes difficult challenges.
Going Global
In a recent paper (Alexander & Korine, 2008) asserts that economic globalization has come to be viewed by some as the best hope for world stability, and others as the greatest threat. Columbus (2003) also maintained that “economic globalization has become an unavoidable reality which all companies must accept”. Alexander & Korine(2008) found that going global is a trend that almost everyone acknowledges that businesses of all types must embrace yet, even as companies are being told that the future lies in globalization, some are still

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