Expanding an MNC Assignment Example | Topics and Well Written Essays - 1000 words

Expanding an MNC - Assignment Example Finally this study will focus on future business strategy for ford to expand their business in China. Table of Contents The Ford Motor Company 4 Organizational Culture of Ford Motor 4 Environmental Scanning 5 Political 5 Economical 5 Social 5 Technological 6 Environmental 6 Legal 6 Entry Strategy 6 Political Risk 7 Implementation Strategy 7 References 9 The Ford Motor Company Ford motor company (FMC) is an iconic automobile manufacturer in the world. The company is headquartered in Dearborn, Michigan, USA. It was founded in 1903 by Henry Ford, Horace E. Dodge and John F. Dodge. FMC was the most sold automobile brand across the world before World War II. Large scale car manufacturing concept was introduced by Ford motors in the year of 1914. Organizational Culture of Ford Motor Proper understanding of leadership skill and management is required to build a successful organization. Top management of the company believes in creating a sustainable environment for all. Ford has set a targe t to reduce 30 % CO2 emission from car within next eight years. The company tries to operate with a small but efficient workforce. They discontinued more than seven thousand underperforming employees in 2008. This is an example of strong leadership quality in terms of ability to take hard decisions. FMC has always tried to design product in a unique way. They use state of art technology to manufacture automobiles. Organizational culture of Ford can be described in three words- practical, innovative and one that believes in sustainable development (Seligman, n.d.) Environmental Scanning FMC is trying to enter Chinese automobile market. They need to analyze macro environment (considering political, economical, social, technological, legal, environmental condition of a particular country) before planning an entry strategy. Political Communist party is the ruling party in the country. Government has strong control over print media and electronic media. Political condition of the country is stable due to absence of any major opposition party. China has joined world trade organization (WTO) in 2001. The country has become more open in terms foreign investment after Joining WTO. It takes only thirty seven days to start a new business in china. This type of political condition will help FMC to grow their business in the country. Economical Chinese government has direct control over the financial institutes of the country. Government regulates Foreign Direct Investment (FDI) policy. Chinese government has cut down corporate tax rate last year. Ford has the opportunity to save huge amount of money due to low corporate tax policy of Chinese government (Viswanadham, & Balaji, n.d.). Social Literacy rate in china is more than 90% and most of the educated people are aware of international brands. Many international organizations have entered China in recent years. They have created employment opportunities for Chinese people. Disposable income of a customer has increased du e to rapid industrialization. Technological China is global leader in terms of technological development. Major achievements in the field of science and technology are, building the first atomic reactor, and hydrogen bombs, discovery of the Daqing Oilfield, synthesis of crystalline insulin, electronic collider, nuclear power stations etc. Government is trying to develop automobile industry with the help of foreign companies. This condition also supports the market entry