Ford Case Study

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ANSWER 1- The identified trends affecting the US carmakers in the article are as follows: • Ford re-branding themselves as all round transport providers. Why? The need of new products and services as Ford faces long-term challenges. • Self-driven cars- cars taking over people driving is taking over car ownership amongst the population: this is an attempt to increase sales for the company. • Factor of declining car usage- 1. Consumers find public transport cheaper in comparison to owning a car: these “consumers” being the elder generation who have kids and do not demand or desire the fancy cars anymore. 2. Costs of personal miles travelled by these potential consumers is cheaper when using the public transport rather than when using own car …show more content…

These organizations would have to consider the political decisions that have to be made in terms of environmental issues and when manufacturing twice as many cars to serve the public. Since hybrid vehicles would gain more support from the government, as them being the eco-friendly transport provider, Ford and other US car makers would have to come up with a strategy that would impress the government (i.e. sticking to EU emissions laws and regulations standards). The US government has introduced acts that help organizations construct financial measures along with tax and other charges. Economic Factors affecting US car makers: The most common economic factors that may affect US car makers is the constant fluctuation in exchange rates across all currencies. “If the external price level is unstable, we cannot keep both our own price level and our exchanges stable. And we are compelled to choose.” (Keynes, 1982). When it comes to making free trade with certain countries that follow the national independent monetary policy, having a fixed exchange rate is incompatible. In case of the article, US car makers should take into consideration trade creation – an event that occurs when an organization completes its task force in another country rather than in its own country; this enables cheaper labor costs done at a quicker time for less amounts

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