Topic > Ford Motor Company and the Divestiture Approach

IndexIntroductionSituational AnalysisSWOT AnalysisDiscussionConclusionIntroductionThe Ford Motor Company has undergone several changes since it was founded in the 1930s. Among the changes the company has undergone are growth, the development of new models and general expansion into other continents. Since the end of the Second World War the company has been producing national vehicles intended for average citizens of various countries. As the company has generated millions in profits, invested in other lines of business which include the acquisition of various subsidiaries to support the market and reduce competition. Currently, the company actively competes with major competitors such as Toyota of Japan, General Motors of the United States, and BMW Series Company of Germany (Shein et al., 2017). Among the improvements the company has focused on is the production of hybrid vehicles that are environmentally friendly and produce a moderate amount of carbon monoxide IV. Next, the company must divest most of its assets to reduce long-term risk. Furthermore, the company requires the use of other approaches such as mergers to reduce competition in the market. Therefore this essay explores business divestment approaches to the current situation of the business. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Situational Analysis The current Ford Motor Company is considered to be the most improving company. The company recently divested most of its assets to contain rising costs and reduce competition in the market. Among discontinued operations overseas, assets sold include Jaguar, Volvo and Landover. The company's purpose with selling the property was to ensure efficient management and capital generation to expand stores across the United States and build greater customer loyalty in a manageable environment (Adams, 2016). Additionally, the company's board of directors saw fit to generate more revenue from the process of divesting and investing the most profitable divisions. Currently, Ford Motors is considering selling most of its Mazda shares in Japan. The Japanese automaker is partially owned by Ford Motor Company and has sold off most of its assets. According to Reuters, the company plans to sell the entire stake to generate cash to invest in the country (Gurkov, 2016). As part of the plans, the company's decision to sell most of its assets is considered by many competing companies as the approach to survive the fierce competition and produce the latest models required in the market. The current introduction of the rechargeable electric car by Tesla Motors Company endangers most automotive companies around the world. The approach taken by the company to reduce possible losses in case the Tesla model renders all fuel-powered cars useless is the perception of most analysts. SWOT Analysis The strengths, weaknesses, opportunities and threats surrounding Ford's major divestiture decision are evident. Among the company's strengths are customer loyalty, qualified workforce and market leadership. These strengths push the company to grow and expand in the dynamic market. Opportunities for the company include producing affordable models for low- and middle-income earners around the world (McCarthy et al., 2016). Next, the demand for affordable vehicles from middle-income people presents an opportunity for the company to unleash its potential. The weaknesses faced by the company are.