Country and US MNC Selection
Many people consider Ford Motor Company (Ford) as an important American automobile company. The American Multinational Corporation (MNC) is headquartered in Michigan. Since 1903, the company has grown steadily to become a leading automobile brand in the world.
This exercise digs deeper to analyse the strategic approach and performance of Ford Motor Company in Thailand.
US MNC Industry type
The Ford Company is a leading US Multinational Corporation (MNC). The company has different manufacturing plants in many countries across the globe. Ford operates in the automobile industry. The automobile industry is one of the most important industries in America and across the world.
The automobile industry has been growing very fast since in the mid 20th century. The industry plays a significant role towards the success of the global economy. It is one of the industries greatly influenced by technological changes today.
Country Strategic Analysis
Country Technology Assessment
Thailand is not technologically advanced. However, the current wave of globalization has resulted in new technological developments. The citizens using the internet are on the rise. There are different organizations and companies relying on modern technologies to boost production and performance.
A company like Ford can benefit greatly from these new technologies. This explains why different Multinational Corporations (MNCs) like Ford can succeed in the country’s automobile industry.
Cultural Profile
Culture dictates the way people behave, eat, communicate, and interact with each other. Thailand differs significantly from the United States in terms of culture. The people of Thailand work as teams and expect to be guided by their seniors. Families are united and mostly live together.
People tend to have respect for the elderly and consider them as wise. There are different religious beliefs and social functions or celebrations that mean a lot to the people of Thailand.
However, it is notable that many people are changing their lifestyles due to the wave of globalization. This indicates that Ford will continue performing positively in the foreign country.
Conditions Facing the Multinational Corporation
Leadership Success
Ford is successful because it uses an effective organizational structure and strategic leadership style. At Ford, the leaders know the importance of decision-making, teamwork, and mentorship. The leadership strategy always presents revolutionary ideas for the company.
This explains why Ford is presently producing new cars for the global customer. Its competitive leaders manage the performance of different subsidiaries thus making the company successful. The company’s leadership strategy has been successful thus improving its performance and profitability.
Financial and Competitive Challenge
For very many years, Ford has been a leading manufacturer and marketer of light trucks. Such business strategy established the company as a leading competitor in the global automobile industry.
The company enjoyed a stable financial base until 2008 when the world experienced a major financial breakdown.
Currently, the company is reducing its debts incurred during the financial crisis. During the economic meltdown, Ford was unable to promote a competitive business in the United States and overseas.
The other thing concerns Ford’s competitive challenge. Despite its financial worth and competitive edge, other companies have emerged with competitive technologies and vehicles that meet the needs of the global consumers.
Assessment of Thailand’s Political Environment
The political environment of a country is crucial to the success of multinational companies. Currently, Thailand enjoys a stable government and political climate that attracts foreign investors. However, bribes are also common in the country thus affecting different business activities.
Thailand is listed as a corrupt nation based on the Corruption Perception Index (CPI). Thai’s government is currently promoting democracy and human liberties.
This explains why the country is attracting different investors thus becoming a suitable destination for different multinational companies. From this assessment, it is clearly notable that Thailand will provide a better political environment for MNCs such as Ford.