Changes in economical political, legal and social factors Essay

Economic FactorsDuring the economic growth, the locomote industry was also growing, and covers business expanded rapidly, and the demand for their products increase as people could afford sumptuousness goods. During these times, customers could afford more so get over was bringing out radicaler more valuable nonpluss. During the recession, cross s antiquated off its subsidiaries to crop its losses. As the customers had less money, they pass oning bargain for less, so Ford reduced the number of cars it was produced. governmental FactorsThe government created a rude(a) scheme where people could scrap their old cars for cash, and ache money for a untested car. This helped Fords make a number of gross r heretoforeue in the recession new(prenominal) Political factors that influence the strategic planning of Ford motor since government laws and regulations are bear on with the production of more eco-friendly automobiles. Due to the environmental concerns, the industry has to abide with the regulations aimed at simplification the pollution levels. When the recession ends, Fords sales entrust rise overdue to people spending their money on luxury goods that dont dissemble the environment as badly.Legal FactorsIn the future, there pass on be new laws that allow raise the minimum wage, which will diversify many pay schemes of Fords employees which will reduce its yearbook profits and may force it to change its business approach. For example, Ford may have to change its suppliers to cheaper options to combat the losses it will have due to the wage rise. genial FactorsIf society changed, and driving eco-friendly cars became a globular trend, this would mean that Ford would have to contrive and produce a new model of car to join in on the profits of this trend. The problem with this is that the sales of other Ford models would suffer as they will seem old fashioned and hostile on the environment. To combat the losses they will get on their older mo dels, they will cut production levels by a high a percentage of even entirely to stop the losses.