...Financial Outcome: Ford Motor Company University of Phoenix FIN 419 Brenda Jaber Financial Outcome of Ford Motor Company Ford Motor Company is an American legend and icon for the automotive industry. Ford’s story is one of hard work, determination, and the American Dream. The company was founded in 1903, by Henry Ford. In 1908 the company introduced the model T and by 1937 had sold more than 25,000,000 automobiles. Ford also halted production from 1941-1945 in order to build B-52 Bombers and assist the government with World War II (Davis, 2003). Ford has enjoyed being the number one American automaker on numerous occasions and has also had its share of struggles. In 2009, Ford narrowly avoided bankruptcy and had to restructure. So far, the Ford Company has been the only American automaker to not file bankruptcy in 2009. With the restructure, the company has begun developing the kind of technology that consumers will want to buy. Ford is becoming “greener” with their eco boost technology and is improving its gas mileage, in part because of the government’s new standards on fuel economy. In addition, Ford is also utilizing new technology that is available on select 2010 models such as “Parallel parking assistant,” which will parallel park the car for a person (Ford Story, 2009). The company will have to remain competitive and innovative to survive. In this paper, a financial initiative from the management’s message to the shareholders will be developed. From the financial...
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...Examining Globalization of Ford through the analysis of Outliers Why are some people successful, while others tend not to be? Is there some sort of pattern that can explain this phenomenon? These questions lead to a network of different answers in Malcolm Gladwell's book Outliers: The Story of Success. Gladwell tries to explain that success is determined by different factors, many of which is beyond a single person's control. He does this by giving real world examples of how these factors can truly make or break a person's chance of becoming successful. By examining and analyzing these certain situations, Gladwell is trying to show how the business world can be approached from a different ethical viewpoint. The ethics behind the stories of the people in the book can be further used to look at Ford as a whole and how Ford can be improved upon using these ideas. The idea of an outlier is that it is a person whose talents and achievements have gained them notoriety and most importantly, success in the field they are focused on. With that being said, Gladwell writes about the stories of different outliers, many of whom achieved certain status by a set of circumstances. One of these examples can be explained through the idea of the 10,000 hour rule. The popular rock band The Beatles can be used to describe this rule. Gladwell (2008) explains that "By the time they had their first burst of success in 1964, in fact they performed live an estimated twelve hundred times. Do you...
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...1903, American industrialist Henry Ford started a company that revolutionized how the world moved. With $28,000 in his pocket, Ford Motor Company was born. Today, it has grown to be the world’s third largest automaker, and the largest family-controlled company that has been in family control for over 110 years. Throughout the existence of Ford Motor Company, their success would not have been possible without knowing and understanding certain factors that affect not only the supply and demand, but also the equilibrium prices in the automobile industry. Every organization within the industry faces the same issues and opportunities that may affect competitiveness and long-term profitability, but Ford Motor Company continues to develop new and improved products to gain the advantage over their competitors. Ford Motor Corporation Henry Ford began the creation of Ford Motor Company by his fascination of gas-powered engines. In 1903 with the help of 11 investors Ford Motor Company was incorporated through the New York Stock Exchange and its home office originated in Dearborn, Michigan. This giant automotive manufacturer created the first Model T. in 1908 that became to be one of the largest selling vehicles in history. Ford Motor Company later began to build vehicles for the government to support in World War II. This made the automotive manufacturer a very vital business to the U.S. economy and now one of the largest in the world. Ford Motor Company has developed new technological...
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...Investing in Ford MGT/521 August 18, 2011 Abstract Choosing the right company to invest, where our money is not only safe, but also multiplies, is one of the toughest challenges for an investor. The potential benefits should outweigh the risks involved. The following is an attempt to put the pros and cons in perspective on why “Ford” is a good choice for a discerning investor. Investing in Ford Ford is an American multinational auto company head quartered in Dearborn, Michigan, that was founded in 1903. Fortune favors the brave. Fortune 500 has placed Ford in the tenth position in the list of the largest American corporations (CNN Money, 2011). A net income of $383 million was reported in the second quarter of 2011, with a pre-tax income of $604 million. (Ford Media, July). But the numbers themselves do not mean much unless there is a comparison with the size of the company. To understand the progress made by Ford, we need to examine the stock price – Today, Ford closed at $11.11 (Yahoo! Finance, August). This figure may not look competitive, when seen in isolation. But when compared to how things were four years back, the progress in phenomenal. In 2008, the shares were as low as $1.01. When placed in this perspective, this is a giant leap for this automobile empire. These statistics show that there has been significant revamping done. In 2010, the company posted its highest net income in more than ten years, the full year net income being $6.6 billion, or $1...
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...orHENRY FORD AND THE MODEL T O n May 26, 1927, Henry Ford watched the fifteen millionth Model T Ford roll off the assembly line at his factory in Highland Park, Michigan. Since his ‘‘universal car’’ was the industrial success story of its age, the ceremony should have been a happy occasion. Yet Ford was probably wistful that day, too, knowing as he did that the long production life of the Model T was about to come to an end. He climbed into the car, a shiny black coupe, with his son, Edsel, the president of the Ford Motor Company. Together, they drove to the Dearborn Engineering Laboratory, fourteen miles away, and parked the T next to two other historic vehicles: the first automobile that Henry Ford built in 1896, and the 1908 prototype for the Model T. Henry himself took each vehicle for a short spin: the nation’s richest man driving the humble car that had made him the embodiment of the American dream. Henry Ford invented neither the automobile nor the assembly line, but recast each to dominate a new era. Indeed, no other individual in this century so completely transformed the nation’s 76 FORBES GREATEST BUSINESS STORIES OF ALL TIME way of life. By improving the assembly line so that the Model T could be produced ever more inexpensively, Ford placed the power of the internal combustion engine within reach of the average citizen. He transformed the automobile itself from a luxury to a necessity. The advent of the Model T seemed to renew a sense of independence...
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...would occur that would eventually cause the crisis that on this date the United States, and the global economy is sharing. There have been many businesses failures in the past four years with jobs loss of over 7.9 million employees, of which may not return to the country (CNN Money, 2010). However, ABC123 Inc. has been investigation with the United States Ford Motor Company that refused the need for government assistance in 2008 regardless that the company was suffering the worst performance in its long history of making automobiles (Seib, 2009). This business analysis is to determine the viability to invest a $1.5 million stake in the Ford Motor Company and attempt to forecast the benefits to ABC123 Incorporated. SWOT Analysis Strengths: In 2010, the Ford Motor Company surpassed the monolith Japanese import Toyota as the new number two selling vehicle in the United States (The New York Times, 2011). For car enthusiasts this alone was victory for United States car manufacturers. Toyota has been wounded by the barrage of recalls and safety issues that have surrounded the Toyota Corolla, Camry, and the Prius. Ford successfully delivered a product to...
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...Gregory Lucht Effective Strategies Paper Most adults today have had the pleasure of 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...
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...Boiled Frog Phenomenon Irma E. Jimenez American Intercontinental University MGT 680 – Strategic Management August 30, 2013 Abstract The “boiled frog” phenomenon will be explained and how it relates to strategic management. An example of a business or businesses undergoing a similar situation will also be given and how could they have avoided the effects of the “boiled frog” phenomenon. Boiled Frog Phenomenon The purpose of this paper is to elaborate about the term "boiled frog" phenomenon which is a story about a live frog placed in a large pot filled with cold water. The experiment done with the live frog is also meant to compare it and how this story relates to strategic management in the business environment. An example in regards to a firm that has undergone a similar situation will be given as well and, how that business could have avoided the effects of the “boiled frog” phenomenon. A few questions will follow to explain the process. What is the "boiled frog" phenomenon? According to the article by Polynice, when a frog is placed inside a pot of boiling water, on top of a stove, the frog will react very fast and will jump out of the water immediately. But, if the same frog is placed inside a large pot filled with cold water and then put on top of the stove and it is turned on to be heated up slowly, the frog will not notice the change of temperature (Polynice, 2007). Eventually, the frog felt unconscious...
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...The Transformation of the Ford Motor Company Most adults today have had the pleasure of driving a Ford, or they know someone who has. Henry Ford is known as an amazing innovator. In 1903 with $28,000 in cash, Henry Ford started the Ford Motor Company, whose automobiles changed how the world moved (FORD, 2014). Ford’s history comes with great stories of success; however the recession that started in 2000, caused the Ford Motor Company to experience some down-turns. 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. Research was 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 strategy was executed will be discussed. Also, rationale will be provided for other strategies that could have been used 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 amazing...
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...Ford and GM serious issues pre, during and post TARP period Keller Graduate School of Management Ford and GM serious issues pre, during and post TARP period Annotated Bibliography Burrows, Dan (2014) Stock Showdown: Ford vs. GM stock. Retrieved September 9, 2014 http://investorplace.com/2014/07/ford-stock-gm-stock-earnings-recall/ Ford and General Motors earnings show strong businesses but stocks are not equal as investments. The two companies have different risk profiles and prospects. Flint, Jerry. Forbes. 3/1/2010, Could Ford overtake GM? Vol. 185 Issue 3, p34-34. 1p. Written to show the comparisons of the two companies. These two companies are extremely different yet have many similarities that are detailed. Ford vs. GM: Who’s the Best in Detroit? (2010). Market Beat Retrieved from http://blogs.wsj.com/marketbeat/2010/12/22/ford-vs-gm-whos-the-best-in-detroit-analyst-asks/ Compares Ford and GM across eight different categories.GM is given the advantage in the market share in developing markets. Hoffman, Bryce G. (2013). American Icon: Alan Mulally and the Fight to Save Ford Motor Company. Ford was under the leadership of CEO Alan Mulally and they had an epic turnaround. Congress offered all three Detroit automakers a bailout. Ingrassia, Paul (2012) Engines of Change: A History of the American Dream in Fifteen Cars. Simon & Schuster. Provides details on how cars have...
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...Ford Motor Company Analysis Introduction Ford Motor Company was originally founded by Henry Ford in Dearborn, Michigan on June 16, 1903. Ford Motor Company has a very glamorous history. Since it was found in the early 1900’s, Ford positioned them as the reformer of the car manufacturing industry. Their mission was clearly stated in words, “began a manufacturing revolution with its mass production assembly lines”. And they rendered the corporate strategies matching with their goal in later years. “They introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's methods came to be known around the world as Fordism by 1914”. (“The Ford Story”) http://www.thefordstory.com/ the combination of attractive product design with the efficiency in manufacturing brought them not just profits, but popularity and reputation. Some of their famous classic designs like Model T, 500hp GT, Mustangs, Sport Utility Vehicle (SUV), Taurus and the best-selling F-series truck are still sold well. But Ford has been on the downhill since the beginning of the 21st century. Because of the crush of the bad economy and flawed management strategies, Ford suffered a lot and the previous ranking is now after Toyota and General Motor. It’s quite a burden to the CEO, Alan Mulally, who was elected as the new CEO in 2006 after Bill Ford stepped down...
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...Phil McIntosh Literature Review: My Years with General Motors by Alfred Sloan Presented to: Dr. Francisco Coronel MBA 690 March 21, 2013 Introduction The book My years with General Motors by Alfred Sloan is a great read. I find that it is very important book to read for anyone interested in management, innovation, and overall how to run a succesful organization. Alfred Sloan was able to leave a lasting legacy at the leading automotive company General Motors (GM) by creating positive change through implementing new management techniques, executing financial reforms, establishing a centralized banking system and making luxurious cars in order to gain a competitive advantage over its largest competition. The book is part personal memoir and the other part is standardized text regarding effective management. The General Motors executive depicts story of triumph and the successes he has encountered through proper leadership and management. The main character portrayed in the book of My Years with General Motors is Alfred Sloan. Alfred was raised New York and graduated from MIT with a degree in electrical engineering in the late 1895. His first job post graduation was at an establishment called Hyatt Roller Bearing Company. Hyatt supplied parts to many firms in the automobile industry. After the success of Hyatt, the firm was bought out by General Motors (Sloan, jr., 1990). After the founder of GM William Durant, was forced out of the company for making unwise...
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...selected is the Ford Motor Company. Ford Company is a global company that has two core businesses: automotive and financial services (,2011). The (1997) website states that the Ford Motor Company is one of the greatest automobile manufacturers in the world. The company was founded by Henry Ford in Detroit, Michigan. Ford was a skilled craftsman who built an experimental car in 1896, a twin cylinder engine with potential of 20 mph. In 1899, Ford left his job to organize the Detroit Automobile Company. His first production was in 1903, The Model A that had an under the floor engine which sold for $850. Between 1908 and 1927, it became the all-American automobile. During the 1960s, competition increased and Ford had to become innovative to remain one of the top manufacturers. In 1964, Ford created the Ford Mustang was created. It still remains to be a success. With increased production, innovative styles, low prices, and customer satisfaction, Ford Motor Company has become a worldwide leader in automobile manufacturing. The company’s main focus is to provide quality built products and services to the world. According to (2011) website, Ford’s chair and Chief Executive Officer, William Clay Ford Jr., has a simple, but unique strategy, “Our vision for the future is simple: We want to build great products, a strong business, and a better world.” “Ford’s vision is, “To become the world’s leading consumer company for automotive products and services.” Henry Ford realized that...
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...affair for cars to develop across the nation, and ownership became woven into the fabric of the “American Dream”. The invention of the assembly line in the 1910s made automobiles relatively inexpensive, and by 1929 it is estimated that American car companies were producing 5.3 million cars per year (Miller-Wilson, n.d.). The automotive industry surely had its share of ups and downs during the 1900’s, with two World Wars, the Great Depression, an oil crisis in the 1970’s, amongst many other challenges. Despite such trying events, it wasn’t until late in the twentieth century that signs of trouble began to show within the “Big Three” United States based automakers: General Motors, Chrysler, and Ford Motors. Soon after the turn of the 21st century, it became apparent that two of the automakers, General Motors and Chrysler, were in extreme economic peril. Despite...
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...Alex Vanarthos 11/26/2014 America's Most Successful Family Businesses Family businesses make up an incredible 34% of the S&P 500 Index, meaning over 170 of our nation's 500 largest companies are family owned (Caspar, Christian). To some, this figure is extremely surprising, as it shatters the commonly held misconception that family firms are simply "mom and pop shops." Although it is clear that family businesses are capable of incredible widespread success, exactly why this is the case is far less obvious. One way to gain some valuable insight into how and why so many effective family businesses exist is to closely examine the three in our nation that have had the most success: Cargill, Ford Motors, and Wal-Mart. In many ways, these businesses could not be more different; for instance, they operate in separate industries, and the levels and types of family involvement in the firms vary. Extensive analysis of these three corporations did, however, reveal that while no family, business, or family business is perfect, each company's achievements are directly attributable to its commitment to the common vision and identity instilled in the firm by the family. Cargill Cargill is a private corporation that works with "farmers, customers, governments and communities" to provide "food, agriculture, financial and industrial products and services to the world ("Cargill:...
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