Comparing Home Depot And Ford Motor Company's Adaptation To External Factors

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The Home Depot and Ford Motor Company's Adaptation to External Factors
An organization must always look within and outside of themselves to assess their internal strengths and weaknesses and realize which external factors pose a threat or an opportunity for them. These factors have direct impact on how the organization operates, allowing them to mitigate their threats and maximize their opening to create new and diverse products as the demands of the people grow and technology advances (Rothaermel, 2013). The desire to have greener options in the products people use has forced The Home Depot and Ford Motor Company to respond. However, these two companies not only enforce the environmental concerns of the people with the products they offer to the public, but also in how their plants and stores are ran under sustainable energy. This will …show more content…

When using the PESTEL model to identify external factors that affect how The Home Depot and Ford Motor Company do business, it is realized that while they differ in some ways, they are similar in others. Economical barriers such as a weak housing market in the US can have detrimental effects on the home improvement industry. For Ford Motor Company, foreign currency and exchange rates can pose an unfair trade in the automobile industry. Despite the fact that President Trump claims he wants to improve trade with Japan, David Schoch, president of Ford’s Asia Pacific operations, sees no beneficial future in reentering the Japanese market. After years of losing money, and selling less than one-10th of a percent of Japan’s five million vehicle domestic market, in 2015, Ford Motor Company decided to end ties there and use their resources elsewhere (Greimel, 2017). Failing to protect their customers best interests had posed an unforeseeable legal

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