Efe Matrix
External Audit
The external audit is an effective way for Ford to locate areas that their company can improve. These areas are called opportunities and threats. In order to create an external audit, Ford will need to look at several key external forces that play an important role in the company’s future. Ford will need to look for forces that include: Economic Forces, Social, Cultural, and Demographic Forces, Political, Governmental, and Legal Forces, Technological Forces, and Competitive Forces. Once these forces have been located, they will be placed into a category of opportunity, which will help the Ford, or it will be placed in the Threats category, which can hurt Ford.
Opportunities
Companies should always capitalize on opportunities because they are the forces that will help the company obtain more revenue, or increase their industry market share. Opportunities are the positive external forces that Ford will need to develop strategies in order to continue the company’s success. Below are the opportunities Ford needs to capitalize.
Refusing Bailout Money
When the economy took a down turn many companies started having cash flow problems. Several automakers like General Motors and Chrystal, took bailout money in 2008 from the United States government in order to keep their company from financial ruin. These companies took 24.9 billion dollars in bailout money. Ford was the only American automaker that did not take money from the government in order to combat the worst sales downturn in recent years.
Industry Shifts towards Hybrids and Small Vehicles
With gas prices sky rocketing, consumers are looking for more fuel efficient vehicles and cars the run on electric instead of fuel. Ford has heard consumer concerns and has been improving their cars fuel efficiency. Ford now has several hybrid cars, like the Fusion, and SUVs. Along with smaller more fuel efficient cars like the Focus with 28 MPG in the city and 20 MPG on the highway.
The external audit is an effective way for Ford to locate areas that their company can improve. These areas are called opportunities and threats. In order to create an external audit, Ford will need to look at several key external forces that play an important role in the company’s future. Ford will need to look for forces that include: Economic Forces, Social, Cultural, and Demographic Forces, Political, Governmental, and Legal Forces, Technological Forces, and Competitive Forces. Once these forces have been located, they will be placed into a category of opportunity, which will help the Ford, or it will be placed in the Threats category, which can hurt Ford.
Opportunities
Companies should always capitalize on opportunities because they are the forces that will help the company obtain more revenue, or increase their industry market share. Opportunities are the positive external forces that Ford will need to develop strategies in order to continue the company’s success. Below are the opportunities Ford needs to capitalize.
Refusing Bailout Money
When the economy took a down turn many companies started having cash flow problems. Several automakers like General Motors and Chrystal, took bailout money in 2008 from the United States government in order to keep their company from financial ruin. These companies took 24.9 billion dollars in bailout money. Ford was the only American automaker that did not take money from the government in order to combat the worst sales downturn in recent years.
Industry Shifts towards Hybrids and Small Vehicles
With gas prices sky rocketing, consumers are looking for more fuel efficient vehicles and cars the run on electric instead of fuel. Ford has heard consumer concerns and has been improving their cars fuel efficiency. Ford now has several hybrid cars, like the Fusion, and SUVs. Along with smaller more fuel efficient cars like the Focus with 28 MPG in the city and 20 MPG on the highway.