Show the microeconomic principles involved in Ford Motor Companies Term Paper

Show the microeconomic principles involved in Ford Motor Companies recovery in the auto market compared to other American automa - Term Paper Example In addition, the microeconomic principle of competition has separately been taken into consideration as it would significantly help in identifying the recovery of the company in comparison to other American automakers. Ford Motor Company Ford Motor Company (Ford) is one of the leading auto makers in the global automotive industry. The company operates firmly in two sectors i.e. the automotive industry and the financial services. The company is known to manufacture and distribute the vehicles across six continents. During the year 2012, the company sold approximately 5,668,000 cars in the automotive segment (The New York Times, 2013). As a result, the company was provided with an opportunity to earn $126,567 mn in revenues. The two most prominent brands that the company has to offers include Ford and Lincoln. In addition, the F-series trucks have also played an essential in the growth and success of the company in the local and international world (Ford, 2012). The mission statement o f the company clearly states that Ford aims to provide the customers with quality cars across the continents. This has significantly helped the organization in providing satisfaction beyond the imagination of the customers. To provide the customers with best quality cars, the company maintains mutual relationship with the essential dealers, suppliers and other business associates (The New York Times, 2013). Microeconomic Principles Needs and Wants Ford is one of the leading vehicle manufacturing organizations that focus highly on meeting the needs and wants of the customers. To effectively do so, the company design, build and sells cars along with utilities and trucks to provide the global customer base with vehicles that could satisfy the needs of the customers. Customers are the most crucial factors for the survival and growth of the organization across the globe due to which the needs and wants are taken into consideration in all the products and services offered by the company. Moreover, the company has always focused on meeting the needs of the customers by designing vehicles that cover the full spectrum of global automobile requirement. This significantly helps in attracting the customers towards the brands that Ford has to offer. As a result, the company is constantly provided with an opportunity to meet the needs and wants of the customers through variety of cars, utilities and trucks in the domestic, national and international market (Ford, 2012). Profits Profit is the foremost consideration of Ford. In earlier years of financial and economic crisis in United States, the company’s profit level declined significantly. With the passage of time, the company was consistently provided with opportunities to enhance the level of profits by attracting and selling the customers with quality cars, utilities and trucks (Ford, 2012). The company aims to enhance the performance of the company across the globe which will provide the company with significant opportunities to enhance its profit levels. Due to the constantly rising demands of the cars, utilities and trucks in the local and international market, the company reported significant increase in the level of profits. In the year 2010, the company reported net income of $6.6 billion in comparison of $2.7 billion in the year 2009 (Esch, 2011). The method of intra-platform price discrimination is one of the prominent methods used by Ford to optimize the profits of the company. The company is continually providing the customers with fuel efficient cars to enhance the financial strength of the company. This has significantly allowed the organization to attract the customers in the market which will