Ford External Assessement in Economic Forces
The External Assessment * Economic Forces * Value of the dollar in world markets.
The Euro, British Pound, and the Japanese Yen currencies have been valued more than the U.S. Dollar. In the global recession in 2008 the value of Dollar currencies is declined, so the Euro, British Pound, and the Japanese Yen currencies are more stable. This circumstance makes cars that sold in dollar decreased in the value, so the cars that sold in euro, British pound and yen become more profitable. * Consumption pattern.
Consumer confidence is the lowest in 40 years, because of the global economic recession. This is very influencing the power of buy, and the purchase decision of consumers. The consumer confidence is the passion of the consumers so it has direct affect to the company sales. * Unemployment trends.
Unemployment rates exceed 10 percent in many areas in United States. Unemployment represents the economic growth of the country. In global recession companies in United States were struggle to hold the profit or even survive. Unemployment rates implemented to struggle in global economic recession. * Availability of credit.
Unavailability of credit, many banks are just not making car loans. This situation offering lowered interest rates or zero percent financing to lure buyers. Because of this, Ford offers financing to consumers and dealerships nationwide. * Consumption pattern.
The few consumers purchasing vehicles are doing so for practical reasons, with a focus on fuel efficiency, durability, and carmaker’s sustainability. Because of the increasing in oil price, needs of consumer to have a endure vehicles, and brand image of carmaker’s, the consumers are more selective to purchase a car. This situation makes Ford produce 13 fuel efficient models, including 5,000 to 10,000 electric cars per year starting in 2011. And Ford created Genuine Parts & Services division to shift the quality services. * Demand shifts for different categories of
The Euro, British Pound, and the Japanese Yen currencies have been valued more than the U.S. Dollar. In the global recession in 2008 the value of Dollar currencies is declined, so the Euro, British Pound, and the Japanese Yen currencies are more stable. This circumstance makes cars that sold in dollar decreased in the value, so the cars that sold in euro, British pound and yen become more profitable. * Consumption pattern.
Consumer confidence is the lowest in 40 years, because of the global economic recession. This is very influencing the power of buy, and the purchase decision of consumers. The consumer confidence is the passion of the consumers so it has direct affect to the company sales. * Unemployment trends.
Unemployment rates exceed 10 percent in many areas in United States. Unemployment represents the economic growth of the country. In global recession companies in United States were struggle to hold the profit or even survive. Unemployment rates implemented to struggle in global economic recession. * Availability of credit.
Unavailability of credit, many banks are just not making car loans. This situation offering lowered interest rates or zero percent financing to lure buyers. Because of this, Ford offers financing to consumers and dealerships nationwide. * Consumption pattern.
The few consumers purchasing vehicles are doing so for practical reasons, with a focus on fuel efficiency, durability, and carmaker’s sustainability. Because of the increasing in oil price, needs of consumer to have a endure vehicles, and brand image of carmaker’s, the consumers are more selective to purchase a car. This situation makes Ford produce 13 fuel efficient models, including 5,000 to 10,000 electric cars per year starting in 2011. And Ford created Genuine Parts & Services division to shift the quality services. * Demand shifts for different categories of