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Research, evaluate and analyze the chose organization’s “internal and external business environments, by using the SWOTT analysis technique. Determine how those forces impact the organization’s sustainable competitive advantage  Write an academic paper depicting your “Environmental Scanning analysis” that includes the following: 1. An introduction with a detailed description of the organization, what they do? product/service? etc. 2. Create a SWOTT Diagram that includes Strengths, Weaknesses, Opportunities, Threats and Trends. 3. Provide at least 5 topics for each category. Then, select at least 3 of the topics per category, and explain how these topics will support or not, the overall organization’s Business Sustainability and Competitiveness. Convey how your analysis would take advantage of the firm’s Strengths and Opportunities while avoiding its Weaknesses and Threats to its success 4. Evaluate how specific internal factors and forces (Strengths and Weaknesses) support and/or promote a competitive advantage; Research, evaluate and analyze the chose organization’s “internal and external business environments, by using the SWOTT analysis technique. Determine how those forces impact the organization’s sustainable competitive advantage   Write an academic paper depicting your “Environmental Scanning analysis” that includes the following: 1.    An introduction with a detailed description of the organization, what they do? product/service? etc. 2.      Create a SWOTT Diagram that includes Strengths, Weaknesses, Opportunities, Threats and Trends. 3.    Provide at least 5 topics for each category. Then, select at least 3 of the topics per category, and explain how these topics will support or not, the overall organization’s Business Sustainability and Competitiveness. Convey how your analysis would take advantage of the firm’s Strengths and Opportunities while avoiding its Weaknesses and Threats to its success 4.    Evaluate how specific internal factors and forces (Strengths and Weaknesses) support and/or promote a competitive advantage; Research, evaluate and analyze the chose organization’s “internal and external business environments, by using the SWOTT analysis technique. Determine how those forces impact the organization’s sustainable competitive advantage   Write an academic paper depicting your “Environmental Scanning analysis” that includes the following: 1.    An introduction with a detailed description of the organization, what they do? product/service? etc. 2.      Create a SWOTT Diagram that includes Strengths, Weaknesses, Opportunities, Threats and Trends. 3.    Provide at least 5 topics for each category. Then, select at least 3 of the topics per category, and explain how these topics will support or not, the overall organization’s Business Sustainability and Competitiveness. Convey how your analysis would take advantage of the firm’s Strengths and Opportunities while avoiding its Weaknesses and Threats to its success 4.    Evaluate how specific internal factors and forces (Strengths and Weaknesses) support and/or promote a competitive advantage; topics may include: a.    Resources and capabilities, financial factors, core competencies, etc. b.    Access to natural resources, trademarks, patents, or copyrights, etc. c.    Current processes and best practices (employee programs or software systems, etc.) 5.    Evaluate how specific external factors and forces (Opportunities, Threats and Trends) support and/or promote a competitive advantage; topics may include: a.    Market trends (new products or emerging new technologies, competition, etc.) b.    Economic trends (local and/or global) c.    Changes in demographics, psychographics, Globalization, etc. d.    Regulations (political, legal, or economic environment) e.    Describe what Trends will benefit the organization’s growth 6.    Define a succinct Conclusion showing, based on your evaluation of your findings, how your chosen organization can retain its competitive advantage based on the results of your Environmental Scan Analysis.   Note: You can view sample SWOTT Analyses by visiting the University Library > Databases > B > Business Source Complete: SWOTT Analyses, and the other two site below.   APA-formatted in-text citations and a reference page with at least 4 peer-reviewed sources. Your textbook can be one of the sources. Submit your assignment. COMPANY PROFILE Ford Motor Company REFERENCE CODE: 4E3AD1B7-04B2-4E87-BB09-7DC916B9230F PUBLICATION DATE: 16 Jul 2021 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED A Progressive Digital Media business http://www.marketlineinfo.com/ Ford Motor Company TABLE OF CONTENTS Ford Motor Company © MarketLine Page 2 TABLE OF CONTENTS Company Overview ........................................................................................................ 3 Key Facts ......................................................................................................................... 3 SWOT Analysis ............................................................................................................... 4 Ford Motor Company Company Overview Ford Motor Company © MarketLine Page 3 Company Overview COMPANY OVERVIEW Ford Motor Company (Ford or 'the company') is an automotive manufacturers in the world. Its products include cars, crossovers and sport utility vehicles (SUVS), trucks and vans, hybrids and EVS, commercial trucks, fleet vehicles, utility vehicles, vehicle accessories, and after sales vehicle parts and other related products. The company manufactures and distributes automobiles across six continents. It also provides financial services through Ford Motor Credit. The company's major automotive vehicle brands include Ford and Lincoln. The company primarily operates in North America, Europe, Asia Pacific, South America, and the Middle East and Africa. The company is headquartered in Dearborn, Michigan, the US. The company reported revenues of (US Dollars) US$127,144 million for the fiscal year ended December 2020 (FY2020), a decrease of 18.4% over FY2019. The operating loss of the company was US$4,409 million in FY2020, compared to an operating profit of US$519 million in FY2019. The net loss of the company was US$1,279 million in FY2020, compared to a net profit of US$47 million in FY2019. The company reported revenues of US$36,228 million for the first quarter ended March 2021, an increase of 0.8% over the previous quarter. Key Facts KEY FACTS Head Office Ford Motor Company 1 American Rd DEARBORN Michigan DEARBORN Michigan USA Phone 1 313 3223000 Fax 1 302 6555049 Web Address www.ford.com Revenue / turnover (USD Mn) 127,144.0 Financial Year End December Employees 186,000 New York Stock Exchange Ticker F Ford Motor Company SWOT Analysis Ford Motor Company © MarketLine Page 4 SWOT Analysis SWOT ANALYSIS Ford Motor Company (Ford or 'the company') is one of the largest automotive manufacturers in the world. Strong market share, robust portfolio of automotive products, and strong focus on research and development activities are its key strengths; even as product recalls is an area of concern. Growth electronic vehicles; strategic initiatives and new product launches provide ample growth opportunities for the company. However, foreign currency fluctuations, intense competition and stringent environmental regulations may affect its future growth operations. Strength Significant research and development capabilities Strong market share Robust portfolio of automotive products Weakness Product recalls could impact reputation in the market Opportunity New product launches New contracts to expand business operations Growth Electronic vehicles Threat Stringent environmental regulations Fluctuations in foreign currency Intense competition Strength Significant research and development capabilities Ford has strong engineering, research and development (R&D) capability. The R&D efforts are directed at improving the performance (including fuel efficiency), safety, customer satisfaction, and developing new products. The company operates use nine regional engineering, research, and development centers. The R&D costs incurred in FY2019 was US$7.4 billion. Also, the company currently has numerous active patents and pending patent applications globally, with an average age for patents in its active patent portfolio of just over five years. Due to the strong R&D efforts, the company was able to develop and launch a number of new vehicles. For instance, In November 2020, Ford announced to introduce E- Transit, an all-electric cargo van. Strong market share Ford is one of the leading automotive manufacturers in the world. The company has a strong market presence across the globe, with a global market share of 6% in FY2019. Ford primarily operates in North America, Europe, Asia Pacific, South America, and the Middle East and Africa. Also, the company occupied a market share of 14.6% in the Canadian automotive market. Ford was Canada's leading automaker in terms of volumes sold in 2019. Ford maintained an overall strong position in the North American automotive market. In addition, the company has robust market share of 6.8% in Europe, with 13% and 10.1%, in the UK and Turkey, respectively. In the South American market, Ford has been Ford Motor Company SWOT Analysis Ford Motor Company © MarketLine Page 5 consistently maintaining a strong market share of more than 8.1% in Brazil, even though of a gradual decrease in sales. The company’s market share in Argentina has decreased to 11.4% in FY2019. Robust portfolio of automotive products Ford is engaged in designing, manufacturing and selling cars, utilities vehicles and trucks. Through its automotive business, the company produces a range of vehicles, including cars for the small, medium, large and premium segments; trucks; buses/vans (including minivans); full-size pickups; sport utility vehicles (SUV); and vehicles for the medium/heavy segments. Ford produces vehicles under the Ford and Lincoln brands. In FY2019, the company sold approximately 5,386,000 vehicles (wholesale) throughout the world. The company also provides a wide range of after-sale vehicle services and products, including maintenance and repairs, vehicle accessories and parts, and extended service contracts. Thus, robust portfolio of automotive products helps the company to meet the evolving needs of its customers which in turn provides significant competitive advantage. Weakness Product recalls could impact reputation in the market In the recent past, string of product recalls have hit Ford's quality image. Ford has recalled some of its most popular models due to manufacturing and design problems. In June 2020, the company recalled around 2.5 million vehicles along with its best-selling F-150 pickup in North America. These vehicles are recalled for its potentially dangerous brake issue and faulty door latches. In June 2019, Ford issued four safety recalls in North America, which includes one covering more than 1.2 million SUVs due to discovery of a defect that puts drivers at risk of crashing. Opportunity New product launches The company’s focuses on continuous product innovations and introductions could help it to enjoy competitive advantage over its peers and build brand equity, besides driving its overall sales growth. In December 2020, Ford Motor’s micromobility unit, Spin announced the launch of its e-scooter in Basildon, Essex. In September, Ford India announced the launch of its doorstep service facility. In June 2020, Ford Motor along with Sime Darby Auto ConneXion (SDAC) launched the new Ford Ranger FX4 in Malaysia. In the same month, Ford Motor announced to introduce new Trail and Active versions for the Transit and Tourneo ranges. In May 2020, Ford India launched Dial-A-Ford service to bring the company dealership closer to the customer. New contracts to expand business operations The company took various initiatives and entered into various agreements and own several contracts to expand its business operations. In line with these initiatives, in October 2020, Ford and Verisk entered into a collaboration to provide telematics data to insurers. In September 2020, Ford entered into a Ford Motor Company SWOT Analysis Ford Motor Company © MarketLine Page 6 partnership with Metromile to offer personalized car insurance to its customers through a connected-car platform. In the same month, Ford and Unifor union entered into a tentative agreement under which Ford announced to invest EURO1.14 billion in its Oakville and Windsor plants in Canada. In August 2020, Ford collaborated with the First National Bank of Omaha, and Visa to launch the FordPass Rewards Visa Card. In the same month, Ford sold its production plant to Construtora Sago Jose, a building firm. In July 2020, Ford Motor and Allianz Partners announced to extend their motor insurance collaboration to provide new mobility solutions for Ford customers. In the same month, the company took several initiatives for its business expansions and extension. These extensions include: Ford Motor and ALD SA entered into an agreement to form an integrated leasing and fleet management solution for European customers; Ford and Intel's INTC division Mobileye expanded their partnership to support the release of the advanced driver-assistance systems globally; Ford selected GEFCO France, a subsidiary of GEFCO Group, to distribute new vehicles to authorized dealers in France. In June 2020, Ford and Volkswagen AG entered into an agreement to meet the needs of their respective customers in Europe and other regions. In the same month, the company entered into many agreements to expand its business operations including Ford Commercial Solutions introduced Ford Telematics, a web-based software platform and subscription service, to help commercial vehicle customers manage and optimize the efficiency of their fleets; Ford Motor entered into a partnership with Vodafone Group to deploy a private 5G network at its new electric vehicle production site in Essex, the UK. In May, Ford Motor and the Ohio State University entered into a partnership to develop software to kill the coronavirus inside police cruisers. In April 2020, Ford entered into a collaboration with Joyson Safety Systems to produce gowns and respirator belts. In March 2020, Ford along with Airon Corporation and GE Healthcare entered into a partnership to produce 50,000 ventilators in Michigan, the US. In April, the company along with KT Corp invested US$22 million series A funding in Phantom AI, developer of a vehicle-agnostic autonomous driving platform. In March 2020, Ford partnered with Allstate to allow the customers to share the telematics data. In the same month, Ford Motor entered into an agreement with 3M Company to increase the production of 3M’s powered air- purifying respirators to meet the demand for personal protective equipment as a result of the COVID-19 pandemic. The company also partnered with Liberty Mutual Insurance to provide potential insurance discounts for Ford connected vehicles customers. In January 2020, the company partnered with Garmin International, a unit of Garmin, to integrate Garmin’s navigation technology into Ford's SYNC communications and entertainment system. In the same month, the company's brand Lincoln partnered with Rivian to provide Lincoln’s first all-electric vehicle. Growth Electronic vehicles Being a provider of electric drive system, the growth in electric vehicles (EV) sales could benefit Ford’S operations. According to the Edison Electric Institute and Institute for Electric Innovation, annual EV sales in the US is expected to reach 3.5 million vehicles by 2030, accounting more than 20% of annual vehicle sales by 2030 in the country and the number of EV on the US roads is expected to reach 18.7 million in 2030. Automobile manufacturing companies are developing more EV models on customer demand, including both battery-powered electric vehicles and plug-in hybrid electric vehicles. Threat Stringent environmental regulations Ford Motor Company SWOT Analysis Ford Motor Company © MarketLine Page 7 The automobile industry worldwide is influenced by a broad spectrum of regulations governing the emission levels of exhaust fumes, carbon dioxide/fuel economy guidelines, noise level limitations, recycling-related restrictions and safety standards. These regulations have become increasingly stringent. For instance, in the US, the Federal Clean Air Act imposes stringent limits on the amount of regulated pollutants that lawfully may be emitted by new vehicles and engines produced for sale in the US. In 2014, the Environmental Protection Agency (EPA) finalized new Tier 3 regulations that phase in increasingly stringent motor vehicle emissions standards beginning with the 2017 model year; compliance with these standards could be challenging. Pursuant to the Clean Air Act, California may establish its own unique vehicle emissions control standards; the California standards can also be adopted by other states. The California Air Resources Board has adopted LEV III standards, which took effect with the 2015 model year and impose increasingly stringent tailpipe and evaporative emissions requirements for light and medium duty vehicles. Thirteen states, primarily located in the Northeast and Northwest, have adopted the LEV III standards. Moreover, the California vehicle emissions program also includes requirements for manufacturers to produce and deliver zero-emission vehicles (ZEVs) for sale. Furthermore, European Union (EU) directives and related legislation limit the amount of regulated pollutants that may be emitted by new motor vehicles and engines sold in the EU. Stringent new Stage V emissions standards took effect for vehicle registrations starting in 2011; Stage VI requirements applied from 2014, with a second phase beginning in 2017. Stage VI further tightened the standard for oxides of nitrogen. Many countries, in an effort to address air quality concerns, are adopting previous versions of European or United Nations Economic Commission for Europe (“UN-ECE”) mobile source emission regulations. Some countries have adopted more advanced regulations based on the most recent version of European or U.S. regulations; for example, China adopted emission regulations based on European Stage VI emission standards and U.S. evaporative emissions and on-board diagnostic requirements. Korea and Taiwan have adopted very stringent U.S.-based standards for gasoline vehicles and European-based standards for diesel vehicles. Although these countries have adopted regulations based on UN-ECE or U.S. standards, there may be some unique testing provisions that require emission-control systems to be redesigned for these markets. Canadian criteria emissions regulations are aligned with U.S. Tier 2 requirements. Thus, any significant change in the regulation structure in any of the countries where Ford operates could have a serious impact on its business operations. Fluctuations in foreign currency Ford is an enterprise with global operations. The company operates 61 plants spread across North America, Europe, South America, Asia Pacific, and the Middle East and Africa. Foreign currency risks affect Ford's automotive and financial services sector alike. In the automotive sector, the company is exposed to foreign exchange risk arising from high proportion of export in sales amount, which is denominated in foreign currencies. Also, Ford Credit, in order to meet funding objectives, borrows in a variety of currencies, principally US dollars, Canadian dollars, Euros, Pound Sterling, and renminbi. Ford Credit faces exposure to currency exchange rates if a mismatch exists between the currency of receivables and the currency of the debt funding those receivables. In addition, the value of the company's equity investment in foreign countries may fluctuate based upon changes in foreign currency exchange rates. Thus, any unfavorable change in other currencies could have an adverse impact on the profitability of the company. Intense competition Ford Motor Company SWOT Analysis Ford Motor Company © MarketLine Page 8 The global automotive industry is highly competitive which pressurizes manufacturers' ability to increase prices. The principal competitive factors include price, quality, available options, style, safety, reliability, fuel economy and functionality. Ford faces strong completion from companies such as Fiat Chrysler Automobiles, General Motors, Honda Motor, Hyundai-Kia Automotive Group, PSA Peugeot Citroen, Renault-Nissan, Suzuki Motor, Toyota Motor, and Volkswagen, among others. In the future, Chinese and Indian manufacturers are expected to enter the US and European markets, further intensifying competition. Over the long term intense competition and apparent excess capacity is expected to continue to put downward pressure on inflation-adjusted prices for similarly-contented vehicles in the US and contribute to a challenging pricing environment for the automotive industry. In Europe, the excess capacity situation is exacerbated by weakening demand along with the lack of reductions in existing capacity, which may result in negative pricing pressure to continue for the foreseeable future. Copyright of Ford Motor Company SWOT Analysis is the property of MarketLine, a Progressive Digital Media business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.