Ford in India

Recommendations:

The flexibility that is allowed through a democratic government combined with the extensive abilities of Ford Motor Co. gave us multiple possible courses of actions. When coming to the concluding recommendations we decided to concentrate on the three components of safety, profit margin and market share. We feel that these three concentrations good indicators of whether we should engage in further operations in India.

India is proclaimed to be one of the leading emerging auto industries in the world. It has already grown since the liberalization of the economy in the 1990’s. The flexibility of the democracy allowed a strong a rise in foreign investment forcing Indian companies such as Tata, and Maruti to change their courses of action. Ford wants to grow with the industry. The infrastructure, though it is not to the level of the US, has made great strides in improving transportation conditions. We believe that if we grow with this emerging industry in area of manufacturing the cars to fit the improving conditions we will be in good standing when there infrastructure eventually gets to where it needs to be. Acknowledging the fact that we as a nation are trying to make up for lost time, we feel to combat this Ford should look to invest a large amount of capital to aspects of the automobile industry that has made Ford a leader in America. Innovation will drive us to the lead in the market.

Ultimately we want The Figo to compete with the Tata Nano in regards to their lower pricing. In business there are risks involved. This is why you need strong evaluation and control. Understanding that to lower the price of a product tends to devalue that product in the eye of the consumers, we actually have this as our goal for the Figo model going forward. We want to continue our development of the Figo model as well as developing more efficient ways to produce; thus lowering overhead cost and increasing profit margin. Right now the Figo is...