...Performance and Corporate Governance Introduction The purpose of this paper is to brief detail of the Ford Motor Company. The different aspect of their development and future production in discuss in the paper below. This company was selected by our team because of Ford Motor Company has come a long way despite having going through auto industry crash a couple of years ago. The company was founded in 1903 by Henry Ford. He was 39 when founded the company. He started producing cars in Detroit, Michigan where he introduce the first engine, which had a removable cylinder head and the first safety glass in windshield. Within a decade of starting, Ford led the world in the expansion and refinement of the assembly line. He also crested a scientific laboratory, which was responsible for the invention of the SQUID device. By the 1980’s, Ford introduces several highly successful vehicles around the world. Even to this day, no cannot think about getting a new car without thinking about some type of ford vehicle. Even though the first modern automobile was already created, Ford’s plan was to create a low price engine powered car that the average man could afford. 2014 was a year that started a successful plan into the right direction. Despite having a $12.6 billion in losses and plants years ago they have regain quite well for themselves. Their financial reports show a company growth and improvement in the fiscal health department. `Their pre-tax operating profit of $8.6 billion was...
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...paper explores “The Ford Pinto Case” managing of business ethics. Numerous factors suggest within this research that Ford Motor Company was negligent and violated its code of ethics. To understand how relationships are affected a closer look at Ford Motor Company missions and values will align Team B’s personal values with Ford Motor Company. In this paper the study to examine are the role of people, products, and profits in the decisions made regarding the Ford Pinto. Key factors surrounding the Ford Pinto Case The death of Lynn Marie Ulrich, Dana Ulrich and Lynn’s sister, and Judy Ann along with many others was what brought the controversy of the Ford Pinto’s faulty gas tank placement to a climax. After so many unnecessary deaths the release of the Ford Pinto was the responsibility of Ford’s CEO Henry Ford II and Ford’s new president Lee Iacocca. Iacocca reduced the average production of a car from three and a half years to a little over two years. Iacocca was aware that during crash testing the Pinto’s gas tank exploded upon collision but was desperate to expedite the vehicle’s release on his deadline. After the discovery of the Pinto’s faulty gas tank, Ford’s president decided it would be costly to make changes in the Pinto’s gas tank location and its size. The Ford Pinto cost $2000 and making changes would increase its price thus possibly making it less desirable by small car buyers. Ford’s mission, values, and guiding principles If Ford had its current mission...
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...driving a Ford, or they know someone who has. Henry Ford was known as an amazing innovator. Ford's history comes with great stories of success; however the recession that started in 2000, caused the Ford Motor Company to experience some downturns. After ending his stay as President and CEO of Boeing Commercial Airplanes, Alan Mulally joined Ford Motor Company and helped change its path towards bankruptcy. This study will describe the team-building techniques and strategies used by Alan Mulally to transform the Ford Motor Company. The research conducted on the condition the company was in when he took over and where it is today. The strategy used to establish the team and how the plan executed will be discussed. Also, the rationale will be provided for other procedures that could have utilized in a similar situation. Who Is Alan Mulally? Alan Roger Mulally was born in 1945 and is an accomplished business executive worth over twenty-three million dollars. Companies look to him for innovative ideas that will get them going again. After college, he decided to join the Boeing organization as an engineer. Here, he was able to contribute to the different Boeing models; including the 777 project. He eventually moved up within his department due to his incredible contributions. According to "Ex-Ford Ceo Alan Mulally Joins Google’s Board Of Directors" (2013-2015), "Notes that from March 2001 to September 2006, Mr. Mulally served as Executive Vice President of the Boeing Company and President...
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...Leading Change at TATA Motors Established in 1954, TATA Motors Limited is India's largest integrated automobile company, with consolidated revenues of 20 billion USD in 2009-10. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's largest bus manufacturer. TATA Motors in 2005 was ranked among the top 10 corporations in India. In 2010, TATA surpassed Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times. The company's 24,000 employees are guided by the vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics." Their mission is “to be committed in letter and spirit to Corporate Social Responsibility." The 5 core TATA values are Integrity, understanding, excellence, unity and responsibility. Originally founded as TELCO by the Tatas in 1945, the locomotive manufacturing unit later expanded its operations to the commercial vehicle sector after forming a joint venture with Daimler-Benz AG of Germany in 1954. TATA vehicles are sold primarily in India, and over 4 million vehicles have been produced domestically since the first TATA vehicle was assembled since the merger. The multinational corporation is headquartered in Mumbai...
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...This essay will aim to investigate the ethical treatment of shareholders and workers in a traditional, capitalist corporation; The Ford Motor Company and compare and contrast the findings with the treatment of these stakeholders in the Mondragon Cooperative Corporation. The structure of this essay will be as follows; firstly the fundamental differences between the two contrasting organisations will be examined and how these differences impact the ethical treatment of the relevant stakeholders; secondly, the ethical treatment of shareholders in regards to corporate governance and the executive’s accountability and control will be investigated, and lastly, the ethical treatment of workers within the two contrasting organisations will be scrutinized in relation to the employees right to participation and association, as well as the right to fair wages. To frame the purpose of this essay; to investigate the ethical treatment of shareholders and workers in a traditional, capitalist corporation compared to the treatment of these stakeholders in the Mondragon Cooperative Corporation, it is imperative to firstly examine the contrasting ideologies and points of difference between the two ways of organising. In understanding the fundamental differences between the two contrasting organisations, it is then possible to recognise the ethical dilemmas that arise for both shareholders and workers. The fundamental differences between a traditional capitalist corporation and the Mondragon Cooperative...
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...Google Ford Nicole Edun MGT/312 March 16, 2015 Professor B.D. Boardman From Ex To Next Did you know that Google is the best place to work in California? (Cracking into Google, 2015) Boasting twelve week maternity and paternity leaves, onsite gyms and onsite medical facilities—Google is one of the most sought out after gigs receiving millions of job applications during their hiring seasons. (Cracking into Google, 2015) Now the newest Board of Directors at Google is Alan Mulally, ex-CEO of Ford Motor Company. The keyword there is “ex”. So how does an ex-CEO become a Director at one of the most coveted companies? Well, the reason why Mr. Mulally was able to move from one top organization to another is because of his exceptional work habits. Mulally was very instrumental at Ford Motor Company. Teamwork Makes The Dream Work When former Boeing Exec, Mulally, began his short career at Ford, they were on the verge of bankruptcy. (Why Ford, 2015) Mulally started his renonvation by assessing his team and its operations. He quickly realized that one of the issues at hand was the lack of cohesiveness on his team. Many of his team members were not used to reporting their performance or even working together and, in turn, were very resistant to the changes to be made—some even deeming Mulally’s changes to come as a “waste of time”. (Ex-Ford, 2015) Mulally started hosting mandatory, 7am weekly meetings where managers had to report performance in color codes. Red was for plans that...
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...PEROLD On April 14, 2000, Ford Motor Co. announced a shareholder Value Enhancement Plan (VEP) to significantly recapitalize the firm’s ownership structure. Ford had accumulated $23 billion in cash reserves, close to the company’s largest ever cash position and significant relative to Ford’s $57 billion equity market capitalization. Under the VEP, Ford would return as much as $10 billion of this cash to shareholders. In exchange for each share currently held, the plan would give stockholders one new share plus the choice of receiving $20 either in cash or additional new Ford common shares. Ford also announced that it would distribute ownership of its Visteon Corp. parts unit to shareholders. Ford’s share price had performed poorly over the previous year (Exhibit 1), and the proposal drew a positive reaction from analysts who had been urging the company for months to distribute cash to stockholders. Some hailed the VEP as the boldest step yet by Ford Chairman William Clay Ford Jr. and Chief Executive Officer Jacques Nasser to convince investors that they were undervaluing the world’s No. 2 automaker. However, the plan raised a number of questions for investors. Why was Ford proposing this transaction instead of a traditional share repurchase or a cash dividend? How did the interests of the Ford family factor into this decision, and what did the transaction imply about the future involvement of the family in the company? Why was Ford distributing such a significant...
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...Overview………………………………………………………………….2 Corporation: History………………………………………………………………………………5 Mergers and Acquisitions ..……………………………………………………….6 Directors & Executive Officers ..…………………………………………………6 Brief Overview………………………………………………………..……………6 Business Segments…………………………………………………………………7 Competition…………………………………………………………………………9 Governmental Standards………………………………………………………….10 Corporate Governance ...…………………………………………………………11 Legal Proceedings…………………………………………………………………11 Trends & Strategies……………………………………………………………….12 Risks………………………………………………………………………………..13 Risk Factors……………………………………………………………………….15 Analysis of Financial Statements and Ratios…………………………………..16 Conclusion…………………………………………………………………..…….17 Bibliography………………………………………………………………………19 Attachments: A – Income Statement for 5 Years B – Balance Sheet for 5 Years C – Horizontal Analysis of Income Statement D – Horizontal Analysis of Balance Sheet E – Company’s Rations compared to Industry Averages Industry Overview: The automobile industry is comprised of companies that design, manufacture, engineer, assemble, and market automobiles and motorcycles and provide leasing and financial services. Industry performance is closely linked with economic performance. The auto industry represents one of the largest segments of the U.S. economy. The U.S. industry is dominated by the Big Three, General Motors, Ford Motor Company, and Chrysler. The auto industry employs nearly 6.6 million people nationwide which represents about 5% of private sector...
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...Assignment #3 Alan Mulally, CEO, Ford Motor Company Alan Mulally, CEO, Ford Motor Company Alan Mulally is president and chief executive officer of Ford Motor Company. He also is a member of the company’s Board of Directors. Prior to joining Ford in September 2006, Mulally served as executive vice president of The Boeing Company, and president and chief executive officer of Boeing Commercial Airplanes. In that role, he was responsible for all of the company’s commercial airplane programs and related services. Mulally also was a member of the Boeing Executive Council and served as Boeing’s senior executive in the Pacific Northwest. Mulally was named Boeing’s president of Commercial Airplanes in September 1998. The responsibility of chief executive officer for the business unit was added in March 2001. Previously, Mulally served as president of Boeing Information, Space & Defense Systems and senior vice president of The Boeing Company. Appointed to that role in February 1997, he was responsible for Boeing’s defense, space and government business. Beginning in 1994, Mulally was senior vice president of Airplane Development for Boeing Commercial Airplanes Group, responsible for all airplane development activities, flight test operations, certification and government technical liaison. Earlier, Mulally served as Boeing’s vice president of Engineering...
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...Cultural Diversity of Ford Motor Company Employees The rise of multinational companies and increased global diversification by even small companies has resulted in people of diverse backgrounds and cultures working together in the same office or for the same organization. Conflict in such situations is predictable, but understanding the diversity issues can help companies implement programs designed to keep conflict at a minimum and to take full advantage of the many benefits which such diversity brings to an organization. Key to understanding how diversity is managed in multinational organizations is understanding the concept of corporate culture (which defines organizations), diversity programs and their use to minimize conflict among employees, and the unique problems that employees working overseas encounter. One of the biggest companies that have worked a lot on diversity is Ford Motor Organization. Ford Motor Company is an American multinational corporation and the world's second largest automaker, selling vehicles in 200 markets and with approximately 345,000 employees on six continents. Ford also is a family with a heritage of strong and clear values. One of the most essential of Ford values is their commitment to diversity and inclusion. For Ford, diversity is a means to an end. It is one of the ways the company is seeking to drive a transformation to a team-based workplace. To have meaningful relationships with customers (and other stakeholders) it is essential...
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...(TCO C) Will E. Chancit, a 36-year-old attorney, was killed when his Ford Fairlane collided with some metal fence on the Harbor Freeway in Los Angeles. He was traveling at a speed between 50 and 70 mph. What happened was this: A city of Los Angeles construction crew had placed a "left lane closed ahead" sign with a "60 mph" speed limit sign under it. (The usual speed limit in that area was 70 mph.) However, the actual closed lane was the right lane. Speculation is that Will noticed at the last minute that he was in the wrong lane and over corrected, and that's how he slid off the road and hit the fence. During the collision, the car spun and the driver's door flew open. Chancit was ejected from the car and sustained fatal head injuries. Had the door stayed closed, his injuries would have been relatively minor. Chancit was not wearing his seat belt at the time of the accident. His Wife sues Ford and the City of Los Angeles for her husbands death. I. Discuss the negligence or other theory for recovery in the suit Chancit’s widow has brought against the City and Ford Motor Company, the makers of the Ford Fairlane in terms of what she must prove. (10 points) II. If a recall was in place by Ford for a defective driver-side door latch, could Ms. Chancit sure Ford under another cause of action other than negligence. Name this cause of action and what would she need to prove. (10 points) III. Does Ford and the City of Los Angeles have any defenses against the lawsuit and...
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...GENERAL MOTORS COMPANY (GM) History of the Company In 1900 New York held an Auto Show where there was a surprise turnout and it showed just how much interest the United States citizens had with automobiles. This enticed many different companies into entering the automobile history to try and meet the growing demand. On September 16, 1908, William “Billy” Durant founded General Motors Company (GM) who at one time was a leading manufacturer of horse-drawn vehicles in Flint, Michigan. Initially, GM consisted of only the Buick Motor Company but took only a number of years to acquire more than twenty different companies. Some of these companies include Oldsmobile, Cadillac, and Pontiac. Opel, a brand that was recognized worldwide, became General Motor’s first international acquisition (http://www.gm.com). The major recession that came about in 2008 dried up private sources of capital and had the United Sates Treasury give GM a bridge loan to aide in the restructuring of its operations. Furthermore, it is evident that sales of motor vehicles have increased since the rescue of the auto industry each year since 2009 (http://www.treasury.gov/resource-center/). The economy is finally recovering and we will soon see if GM is in a place to again thrive. In the 80’s and 90’s GM encountered its largest single production expansion outside of North America in Spain. Furthermore, since GM had joint ventures in both China and India, they were able to provide a variety of automobiles...
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...of this project proposal is to compare and contrast General Motors and Ford which have undergone fairly substantial change in the recent past; and how they handled the pressure of change. Lapratt04@yahoo.com HRM-587-12043 Managing Organizational Change Professor Joseph Phillips Due September 7, 2014 Abstract Ford and GM experienced serious issues during the pre and post TARP causing them to restructure and change how they do business. Each of them reacted to these pressure differently. Ford Motor Company as one of the greatest automobile manufacturers of all time started under the leadership of Henry Ford in Detroit, Michigan. His first production was in 1903, the Model A, with an under the floor engine selling for $850. In the first season it sold 1,708 cars (HISTORY of Ford Motor Company, 2014). Whereas General Motors was founded in 1902 by William Durant, who saw that the automobile would one day replace the horse-drawn carriage. The company did not really catch on until 1908, and at first, it was just a Buick holding company. At the end of 1908, however, GM had acquired Oldsmobile, and in 1909, they bought Cadillac, Elmore, and Oakland. The early 1900s were a difficult time for auto manufacturers; the market crash of 1907 adversely affected a lot of small companies, which relied on the banks for credit. Durant saw the economic downturn as an opportunity; he bought smaller car makers, as well as companies that built auto accessories and parts. In 1908, these were...
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...Abstract This research looks at the General Motors Company and what led to company failure and filing of bankruptcy in 2009. The American automotive industry was poorly managed for years and was almost eliminated when the economy crashed in 2008. Without the help of the U.S. government, General Motors and Chrysler would not have been able to survive. How did GM, as the number one auto manufacturer and seller, go from being at the top to almost ceasing to exist? This kind of financial mess usually takes years of poor decisions and does not happen to a large company overnight. To come to my conclusion I analyzed four books written by people with inside knowledge of the company, as well as magazine articles and a couple of online websites. As a result of my research, I believe that the problems that GM faced stemmed from poor risk management. Rick Wagonner, former CEO, made several poor business decisions that did not take into account any future risks or market changes. A new management team and a fresh perspective were able to turn the company around and put them back at the top of the automotive industry. Risk Management within the General Motors Company General Motors has been in business since 1908 and currently employs 202,000 people in 157 countries world-wide. It is a well-known fact that GM took government bailout money and filed bankruptcy in 2009. How did one of the largest companies in the world fall to needing financial assistance and declaring bankruptcy...
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...GENERAL MOTORS General Motors HRM 587Analysis Paper Lois Hunter D03569279 9/22/2012 Analysis of General Motors Chief Executive Officers and the Change Leader Culture they portrayed in their at tenure in GM Corporation Case Study: General Motors Moving Forward “How Many Expert does it take to turn a company around? That is the question that the taxpayers of America are asking. General Motors was once the industry leader in America. General Motors was a fortune 500 Company for decades. They dominated the automobile industry .Stocks top out at the highest being sold at 83.00 dollars on the market. General Motors made the middle class in America. General boasted the characteristic in the corporate world as being powerful, stubborn, monolithic, and authoritarian and it main concerns was the assembly lines, called the seeds of success. General Motors was established in 1892 by an R. Olds who created the Oldsmobile his vision was to create horseless carriages. He started the automobile factory in Detroit was soon followed by others in the industry, and he and several others decided to create amalgamation of over different companies. The new automobile entities became known as General Motors. Each new partner brought in his brand as they began consolidating. Mr. Olds had a management style of controlling he knew what needed to be done and he did it. He knew when to start merger and acquiring early in the game he established General Motors. His vision and management...
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