International Business Marketing Strategy - Ford Manufacturing in the United Kingdom

8/13/2019 International Business Marketing Strategy - Ford Manufacturing in the United Kingdom

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Ford Manufacturing in the UK

Sarah Funk | Saimir Hasani | Stella Schour| Robert Miller | Sean Kowlessar


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Ford in the UK

Benefits of Investing: Ethics & Society Political Stability Technologically advanced Legal System Economic Sustainability


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Ethics & Society Organization of Economic Co-operation & Development (OECD) Member Corporate Social Responsibility Positive brand image Award winning

UKs favorite car brand 2012 Manufacturer of the year 2013 Ford Fiesta Supermini (3 awards 2013)

Well-known Brand Lowering Marketing Costs due to Familiarity

Similar morals and values Hofstedes Cultural Dimensions


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Hofstedes Cultural Dimensions

PDI: Power Difference IndexIDV: IndividualismMAS: MasculinityUAI: Uncertainty Avoidance IndexLTO: Long Term Orientation

Obtained from The Hofstede Centre


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Ranked 10th in World Economic Forum Global Competitiveness for2013-2014

Canada (14th), China (29th), Poland (42nd), South Africa (53rd), Mexico (55th),Brazil (56th) and Kenya (96th)

An open and democratic political system that protects private andintellectual property

The strongest political ally of the United States Conservative Party in power is overwhelmingly pro-business Pledging 500 million GBP, to be matched by auto sector, for low

carbon vehicle projects.

Political Environment


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Taking steps to attract FDI Removing red tape & bureaucratic barriers Creating the most competitive tax system in the G20 Creating a more educated workforce Encouraging investment and exports as a route to a more balanced

economy

Political Environment


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Legal System

Common Law legal system as U.S. Ford subjected to the Foreign Corrupt Practices Act

Transparency Internationals Corruption Perception Index (2012) UK ranked 17thout of 176 countries (1st= least corrupt) China 80th, Mexico 105th& Kenya 139

Transparency Internationals Freedom of Press Index (2012) UK ranked 28thout of 179 countries (1st= most freedom) Brazil 99th, Mexico 149thand China 174th

Reduced liability for workplace injuries; adhering to safety regulations


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Legal System

US Dept. of Commerces Global Intellectual Property Center analysis Canada received low score; poor mechanisms to enforce IP rights. Brazil has weak copyright and patent enforcement. China penalized for poor enforcement of laws against IP theft.


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Economic Sustainability Free Trade Ninth largest economy of the World (GDP of $ 2.4trillion)

66% of GDP is household consumption GDP per Capita $ 38,500

Stable currency $ 58M unrealized loss due to currency in Q 3 2013 Brazilian Real devalued (Widening Current Account Deficit) Chinese Yuan undervalued South African Rand lost value in 2013 due to labor fears (4wk Auto-part

Union Strike)


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Economic Sustainability Geographical location

Ford Transmission and Engine plants already exist Kenya only has one main international container port China has poor infrastructure

Transatlantic Trade & Investment Partnership Trade Agreement between US and EU (2ndlargest consumer of Ford) Reduced Regulations (no need for dual safety tests EU and in US)

Availability of Financial Institutions Ford currently has difficulty in sourcing finance ; Inability of Ford Credit

to access debt in sufficient amounts Ford 2012 10K Filing


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Auto Industry in the UK

A new vehicle rolls of aproduction line in UKevery 20 seconds.

There are 129,000 peopledirectly employed in theUK automotive sector


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Recap & Recommendations

Operating in the UK offers you: A similar culture with little to no miscommunications Political initiatives in place to make the UK the #1 place

to do business

A rich history in automotive innovation and high levelsof R&D to promote economic growth

An effective and competent legal system to ensurefairness and protection

Minimal risk of investment

Documents

International Business Marketing Strategy - Ford Manufacturing in the United Kingdom