MGT501 Ford Motor Company Analysis Assignment Sample

Internal and External Stakeholder Analysis

Executive Summary of Ford Motor Company Analysis

This report highlighted the stakeholder analysis of Ford Motor Company. Ford has a strong stakeholder commitment. The company has managed the business operations through the prioritization of stakeholders to address their concern and business continuity. The report highlighted the stakeholder influence and macro environment influence on the company.

Table of Contents

Introduction.

Key functional area.

Internal and external stakeholders Analysis.

Stakeholder Matrix and influence.

Conflict and implications.

Conclusion.

Reference List

Introduction to Ford Motor Company

Ford is an American multinational automaker who has headquarters Michigan. It is the fifth-largest automaker with annual revenue of over $170 billion (Ford, 2020).Stakeholders is the major drivers in the macro encomium environment in the organization. Stakeholders have an interest in the system or organization. Stakeholder engagement helps in understanding the concerning areas for the organization. 2-way communication will address stakeholder cooperation and economizing the services and understanding the work environment. This report highlights the stakeholder analysis and macro-environmental factors and its impact on business operations

Key Functional Area

Below are the key functional areas -

Operations, marketing, and sales, research, and development

• Operations include the factors of production and outputs such as the quantity and supply chain for assembling car design
• Marketing - Ford use in house global marketing for branding and media tools for product portfolio promotion
• Finance- Ford uses accounting and management of its operation for budget, asset allocation, and financial transactions for third party members.
• Research and development - Ford creates engineering design and solutions for human-machine interaction and electric vehicle design for technology updation in car manufacturing and design. It has done an expenditure of around 7.4 billion in the year 2019 for research and development of its business domain network (Ford Motor Company, 2020)

Internal and External Stakeholders Analysis

A stakeholder is a group that has an interest in the performance of the organization. These are the risk bearer and value chain components (Baber, 2015). In the manufacturing of the car business, the stakeholder is classified as external and internal stakeholders.

Government influence on macro environment factors

Government act as stakeholders to enhance the coalition-building approach and aggregate the actions of powerful members. Ford in its operations have seen government claim as broad support to society and creating social and economic balance for a private entity.

Pestle Analysis

Pestle analysis is a framework for analyzing macro environmental factors that have a profound impact on the business performance

The dynamic environment globe has shaped the markets and supply chain across the countries. The political instability is affected due to government type, style of functioning, regulation, and political measures for taxes and tariffs that will impact directly the operating cost of functioning in the country (World Bank, 2019).This impacts the growth of the company and acts as a threat to operations. Political instability has extensive relationships with manufacturing and production. The trade partnership for the nation first affects the global expansion of the company.

• Economic risk

Economic risks are central to capital and inflow and can disrupt the organization's scope and risk. The interest rate and inflation pose a challenge to the business activity due to the impact on the demand product price and consumption decline and rise in variation. The loan extension and capital investment through banks on lending are impacted. Exchange rate and recession are fundamental to business due to production decline and purchase of the high-value item such as cars, it impacts the sale of Ford

• Sociological impact

The expansion and supply chain is dependent on the trend of global socio-cultural norms. These impact the nature and production of services. The factors that include patterns and influenced by the lifestyle that may be the tradition in practice and not may be accessible to modern media on manufacturing of automobiles by Ads. The social system is influenced by the business and dealings in the infringement of laws and practice.

• Technological impact

The disruptive technology and sharp use of streaming media impact the consumer service and reach by the business. Technological factors are the future viability and development progress. The advent of technological payment online media has expanded the geographical expansion of the company. The level of acceptance of technology directly impacts the manpower and objective through monitoring risk and strategic considerations through virtual payments, AI, and block chain through country of operations protection (Lexis Nexis, 2020). The supply chain has been associated with a range of technological updates that impact the business supply chain.

• Environment risk

The environmental risk relates to climate, weather and natural disaster can impact the supply chain and halt production of the plant. In compliance with the US government s push on energy efficiency. Ford has reduced its operational energy use to 30% Climate change can impact through shortage of resources (Ford Motor Company, 2020). The portion protection regulation impacts production and business continuity.

• Legal factors

Legal factors for multinational companies impact the state and countries in which the company is operating. The labor protection and consumer protection laws can halt the production and impact the import and export of goods, these include profit description laws and legislative amendment. Ford had been investigating for consumer protection law breach and transmission law case further the company has changed its design.

The 4 step measure for stakeholder analysis are identifying, analyzing, mapping and prioritization

Internal stakeholders

Internal stakeholders are in direct interest and help in the planning of the project. They are in the organization with outcomes and interestvested (Eskerod, 2016).Business owner, employee team, quality assurance team, marketing team, business facility team, the board of directors are the internal stakeholder at Ford Motor Company.

• Business owner- Owners hold a significant share in the firm and are liable for impact on the organization. They take major decisions for business structuring and on maintaining designs regarding internal and external stakeholders.
• Manager- They have to decide on the operating, assembling, and quality decisions for the plant. They will act as a point of contact between directors and the organization.
• Employee- The workplace has to ensure that employee safety and mutual trust is maintained. They are preliminary in envisaging grow vision and control.

External stakeholders

External stakeholders are the people who directly do no work with company but are affected by the business action. External stakeholders are customers, suppliers, Non-government organizations, government, and society.

• Customer- The primary purpose of Ford Motor Company is to provide them with product information through the social, email, delivery of service to ensure that the customer is the part of the organization. The launch of the car and its design through newsletter are communicated to the consumer.
• Supplier- The operational process, shipment, and communication and timely payment are the major communication that is associated with the suppliers and the company. .
• Subcontractors and contractors- This includes contractors, subcontractors, and full-time project managers for community and customer engagement that are involved in the production line and post delivery service.
• NGO- These are the local body to protect the community and ensure engagement through the corporate body. They work in consultations with company to ensure there are no negative repercussions on the community and the well-being of the people are protected.
• Society at large- The manufacturing facility will transform the entire ecosystem. The suitable impact of manufacturing will create job opportunities and transform the variety of participants involved.
• Government- Government are an important part of external stakeholder. The tax structure and ethical and legal concern by the government in manufacturing will directly responsible for business profit.

Stakeholder Matrix and Influence

• Higher interest and high power - Regular information to the members for informing about the decision making and strategic change. Board of directors and shareholders need to be informed and communicated frequently for feedback.
• High interest and low power- The customers and board of members. They monitors stakeholders the support team, function team.The government has high power and low interest. They control the regulation, communicating with them regularly will help in business interest
• Low interest and low power-Unit team group has low interest and low power
• Low interest and high power- Government is central in provision laws and policy it exerts high power and they should be kept satisfied. It has high power and low interest

Employees and supplier are also key components on the project functioning, they support supervisor and leverage interest in a supporter role, they have medium power and high interest

The high influence/impact- The direct impact on a business outcome and change is caused by these stakeholders. Business owners measure the business scope and ensure that changes and measures are adapted quickly.

Low impact/ high influence- This includes the stakeholder who does not have active involvement in the operations and have high influence in the decision making. The team unit will have a low impact but high influence in the development process.

High impact/low influence- They are not involved in the day to day changes but are impacted by the business outcomes. This includes end-users that will be using the manufactured car at the sale.

Low influence/ low impact- They include the stakeholder who is not actively involved in the project and has a low impact. This includes secondary stakeholders.

Stakeholder Power Analysis

The power analysis of stakeholders is effective in understanding and effect of policies of key players. The active involvement of stakeholders and power ownership enables tricky situations understanding and organizing priorities. The involvement in power dynamics will help in acknowledging information and negotiation involvement. Monitoring stakeholder decisions and routine cents of polices will help in experiencing challenges. The prioritization at Ford is one to ensure its corporate responsibility is determined and the business strength and operations are unaffected. The maintenance for transparency will elven issues and the company position through the annual disclosure and suitability index reports. Stakeholders can overlap due to the functioning and at odds for stronger representation within the marginalized groups (Forbes, 2020). The suitable proposition on the influence metrics on government and macro-environmental factors that are may dampen the expansion and core functions at Ford.

Stakeholder communication template

Stakeholder Communication Plan Template
Stakeholder	Power/Interest	Key Interest & Issues	Communication Vehicle	Frequency	Comments
Customer	High power/high interest	Effective design of the product Compliance with technical specifications	Newsletters	Monthly
Board Members	High power/high interest	Transparency in operations and business outlook for company objectives	Email, face to face meeting	Weekly
Investors	High power/high interest	Ethical conducting future profitability of action	Conference calls	Weekly
Non- civil organization	Low interest/low power	Health and environmental protection and the impact of manufacturing	Email	Monthly
Employees	Highinterest/medium power	Job security and internal functioning	Conference calls, video meetings	Weekly
Government	High power/low interest	Employment and tax structure on the operations	Email, face to face,	Monthly
Subunit teams	Low power/ low interest	Training on assembling in the facilities	Email	Monthly
Suppliers	High interest/ medium power	Resource supply and material procurement	Meetings, telephone, email	Weekly

The analysis on the basis of-

Contribution - The contribution in the manufacturing sector of are subject to compliance with the combustion engine, safety protocols by the government. The expertise of supplier, board members are an important consideration on financial and regulatory feasibility of the study. The actions are directly impacting business functioning. The involvement of investors and shareholders to keep the business continuity and financial upkeep of the company as this is a capital intensive industry (Miles, 2017).

Stakeholder Interest

Stakeholders divided from the perspective of relation with Ford and the operations and measures taken by the company. They have a positive or negative influence on the business as a vital part of the ecosystem. Indirect influence by the non-government body has made transformed the reporting standard. The company has to work with NGOs collaboratively for sustainability measures. The labor specification and technological constraints on non-payment and safety structures harm the business's internal and external stakeholders. Matching the interest of stakeholders held in conflict resolution. The project and plant setup require internal stakeholders and supplier dealers communication and influence in pricing structure and distribution for sale of the vehicle to the end-user (Dahan, 2015).

4 Stakeholder Hyponyms

This includes influencer, claimant, collaborator and recipient

• The influencer stakeholder has the capacity to influence the organization. They can exert an active and direct impact on the use of centrality with the network. The stakeholder communication by the influencer can assist or hider the organization's objectives. Government and NGO s can exert pressure in business operations with fiduciary policy.
• The claimant stakeholder does not hold conceive power but has social and residual power. They can claim an interest to pursue their claims. This includes end-users and subdivision
• Collaborator stakeholders have cooperation towards the organization’s value creation and. They do not pursue an active influencing strategy. The supplier and contractor can be placed under this stakeholder list.
• Recipient stakeholders are affected by the operation of the form and impacted due to the impact direct due to pollution but they do not necessarily pursue the claim. They may lack power and the issue may be non-critical in some cases.

Conflict and Implications

Managing conflict among stakeholders is essential as they spiral out concerns for the reliable construct, employee safety that may interlink with conflict with the labor union and governmenton not addressing their concern (Wasieleski, 2017).

This can be done through generating options for common terms and mutual interest. This will help in agreement on the objective and negotiation process for suppliers, dealers, and board executives. The technological factors valine and legal constraints impact the availability of resources that may prelude value-based agreement between the conflicting parties.

Comparison of the stakeholders with peer industry

The manufacturing car industry is compared with search engines.

The government's influence on the regulation of the internet and domain access is a threat to business functioning. The internal stakeholders in the business operations are advertisers, government, search engine owners, and the end users. The employee functional team includes developers, project architects for data assembling, and multi-functional areas to work (Food Motor Company, 2017).The business is not capital intensive as compared to manufacturing this does not attract environmental threat but legal considerations and technical question applicability, data primacy are the key concern. Google has been under lawsuits due to non-compliance with data protection and using consumer information for search engine business and advertisement.

Conclusion on Ford Motor Company Analysis

The stakeholders of the organization affect the operations, policies. From the above discussions, the comparative analysis shows the stakeholder's power in affecting the business operations with environmental norm and legal compliance order. Stakeholders with a high degree of power can impact the business in potential profitability. Managing conflict and operations with the consultative approach will help in operation in the industry. Power dynamics and arrangement in the influence/ power will create the legitimacy and communication that should be drawn between the stakeholders within the organization.

Reference List for Ford Motor Company Analysis

Baber,W.C., &Chen, F. (2015). Practical Business Negotiation. NY, USA: Routledge.

Dahan, N. M., Doh, J. P., & Raelin, J. D. (2015). Pivoting the role of government in the business and society interface: A stakeholder perspective. Journal of Business Ethics, 131(3), 665–680

Eskerod, P., &Huemann, M. (2016). Rethink project stakeholder management. Project management institute. Retrieved from https://www.pmi.org/-/media/pmi/documents/public/pdf/kas/201604_huemann_rethink_project_stakeholder_management.pdf

Forbes. (2020). The broad spectrum of stakeholder and their impact on your business. Retrieved from https://www.forbes.com/sites/forbesrealestatecouncil/2019/11/21/the-broad-spectrum-of-stakeholders-and-their-impact-on-your-business/#4c2132893678

Ford Motor Company (2017). Stakeholder engagement. Retrieved from http://ophelia.sdsu.edu:8080/ford/03-30-2018/microsites/sustainability-report-2016-17/strategy-governance/issues/stakeholder.html

Ford Motor Company. (2020). Corporate information. Retrieved from https://corporate.ford.com/company.html

Henisz J, W. (2017). Corporate Diplomacy: Building Reputations and Relationships with External Stakeholders. NY, USA: Routledge

Lexis Nexis (2020). Retrieved from https://internationalsales.lexisnexis.com/glossary/compliance/pestel-risk-monitoring

Miles, S.(2017). Stakeholder Theory Classification: A Theoretical and Empirical Evaluation of Definitions. J Bus Ethics142,437–459 https://doi.org/10.1007/s10551-015-2741-y

Wasieleski, D. M. & Weber, J. (2017). (Eds.), Stakeholder Management. UK: Emerald publishing.

World Bank. (2019).Ease of doing business. Retrieved from https://www.doingbusiness.org/en/rankings

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