Ford Motor Company not only survived the financial crisis of 2008/2009, which had pushed General Motors and Chrysler into bankruptcy, but also emerged as a robustly competitive member of the world’s leading auto producers. However, Ford’s ability to sustain its strong financial performance depends critically on the state of the world’s automobile industry (Grant). Synopsis of the Case: The automobile industry soared in early 1920’s and became primary industry which drove US economy during that
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and demands, though each company has its own individual strengths that have allowed it to succeed in the current economic climate and also specific weaknesses that have affected their abilities to grow as vigorously as it should. Together these two companies will continue to be at the forefront of the introduction on new vehicles into their respective markets by capitalizing on the innovation that is inherent in their organizations. Honda Motor Company, a Japanese company, has its largest customer
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Case Study: Ford Motor Company’s VEP Question 1 Go ahead with the Value Enhancement Plan The feature of having both cash and new share options makes the VEP have its strengths and makes an excellence choice for Ford Motor Company. The cash option solves the problem of Ford having massive amounts of extra cash. Since Ford has no profitable activities for the extensive amounts of cash, returning the excess cash to shareholders allows them to make profitable investments. Different from a
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Mangin, Joanell Jacques, Sarai Johnson, Fernando Adams, and Eric Gamboa FINC 331 – Dr. Marion Johnson Group Project done by: Jacob Mangin, Joanell Jacques, Sarai Johnson, Fernando Adams, and Eric Gamboa Financial Analysis Financial Analysis Part 1: Income Statement Analysis There was a large jump in total revenue between 2011 and 2012, moving from $152 to $185 billion. This slightly increased in 2013 and again 2014, where it was reported to be $190 billion. The increase from 2011 to 2012
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The Way of Ford Motor Company * Introduction * Although to be the only one remaining member which have escaped bankruptcy of the Big Three among the automobile industry by June 2009, Ford suffers $14.7 million loss of revenue and elimination of stockholders’ equity due to the record-breaking fall in demand for 2008,US. However, to understand Ford’s position today requires understanding the American automotive industry. * General Industry analysis * From 1900-2008, US motor vehicle
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Case Review #1: Ford Pinto 1.) FACTS • Ford was aware of gas tank defects on their Pinto model • Ford ignored the safety concerns, positing “safety doesn’t sell” (p. 66) • Ford based their decision off a cost-benefit analysis o Determined the “cost” of trunk alterations outweighed the “cost” of enhanced safety • There were over 40 incidents involving Pinto passengers dying or being severely maimed 2.) ETHICAL ISSUES • Is it morally right to sell a car with known, potentially fatal, defects
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Questionable cost-benefit analysis by Ford In 1968, Lee Iacocca, president of Ford Motor Co., faced fear of losing market share in subcompact auto market by German Auto, Volkswagen. Although the automobile preproduction process usually takes three and a half years, Ford made it within two years from designing phase to releasing to the market. Market seemed to be impressed by Ford, but it did not go last that long. Pinto had a critical problem that its fuel tank cannot withstand any rear-impact
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Financial Management CASE STUDY NO.2 IDENTIFYING VALUE CREATORS 1. Defining case issue Based on the issue Linda faced, she needs to assess which company create or destroyed value for investors, it should be included to the value analysis, which means using value ratios to show the “embedded value” in stocks in order to screen and assess the invest value before making investment. So in our case report, we will solve three case issues: (1) To make value analysis of the pairs of Asian and
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THE PINTO CASE A SHORT SUMMARY In the early 1960s Ford’s market position was being heavily eroded by competition from domestic and foreign manufactures of subcompacts. Lee Iacocca, then President of Ford, was determined to regain Ford’s share of the market by having a new subcompact, the Pinto, in production by 1970. Then Ford engineers crash tested an early model of the Pinto. They found that when the automobile was struck from the rear at 20 miles per hour, the gas tank regularly ruptured
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FORD MOTOR COMPANY: STRENGTHENING THE DEAL NETWORK Stefanie DiBella Professor Zeno MBAD 640 1/21/13 Introduction: In March 2011 David Kelleher and his team at Ford Motor Company came together to face the challenges that the Ford brand and their brand counterparts were facing: low marketability, competition of imports, high gas prices and of course an ever changing consumer market. “The Way Forward” and “One Ford Mission” was adopted to turn their focus to rethink how to target consumers
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