The Ford Motor Company: The History Of The Ford Motor Company

3155 Words7 Pages
bulb-icon

Recommended: Summary about the ford company

The Ford Motor Company is known nowadays as an American well-known mass-market automaker. It is also on the list of the top 10 companies on the Fortune 500, and the company itself has reported in recent year’s remarkable turnaround that has left other auto companies worldwide ‘’speechless’’. However, the company is currently struggling with the implementation of new strategies and the current condition of the automobile industry doesn’t help the company’s situation at all. Throughout this paper, I will try to get to know Ford and its history better by analyzing the company and the industry where it operates. The end of this paper will be dedicated to the recommendations, following the explanations on what the company should focus on in the
His passion for cars has led to the incorporation of the Ford Motor Company in 1903. With only 12 investors accompanied with 1000 shares, and with the overall initial investment of $28,000, the company has achieved an astounding profit of $38,000 in the same year, after the release of the first Ford Model A (Ford Motor Company, 2015).
Before 1903, only rich members of the society could afford having a vehicle. Henry Ford, as an excellent industrialist and businessmen, saw an opportunity in a market where automobiles were considered to be a niche product. Albeit, Henry could still face amazing revenue by just producing cars for rich members of the society, making money was never the prime goal of his. Henry Ford’s intentions were much greater. Considering the external environment of the company in the past, Henry Ford wanted to form a successful relationship with 3 main players of such environment; suppliers, competitors and customers. His understanding of external environment went hand in hand with his market. The other strength was that it had created a value, and the best indicator of such value creation was profit that the company was able to receive in a very short period of time. The other important strength (which is both connected with the past of the Ford and nowadays) is how the company has helped to accelerate a social revolution; since Henry Ford’s goal was to build a low price car for every man (Grant, 2013). By doing so, the Ford has nowadays a strong position in the U.S. market due to the good

Show More
Related

  • Summary Of Scale In The Flivver King

    739 Words  | 2 Pages

    In The Flivver King, written by Upton Sinclair, Henry Ford started his own manufacturing in the back cottage on Bagley Street in the city of Detroit. The young inventor began to tinker and to make improvements to his new invention of the horseless carriage. Once he finally gained confidence to take it out for the public to see, the people were unsure if it was a joke or a step in civilization (8). Ford decided to look at the matter from an entirely different angle- the horseless carriage as a useful article for everybody instead of as a toy for the rich (10). Henry Ford’s Model T helped him to accomplish economies of scale because he took the steps to use a standardized model, use the assembly line, and revolutionize mass production.

    Read More

  • Ford Motor Company

    1589 Words  | 4 Pages

    Shortly afterwards, with financial backing from private investors, Ford established the Detroit Automobile Company. He later withdrew from the venture after a disagreement with business associates over numbers and prices of cars to be produced. Working independently in a small shed in Detroit, Henry Ford developed two four cylinder, 80-horsepower race cars called the “999” and the “Arrow”, with $28,000 of capital raised from friends and neighbors. Henry Ford established a new shop on June 16, 1903. In this facility the Ford Motor Company began production of a two cylinder, eight-horsepower design called the Model A. The company produced 1,708 of these models in the first year of operation.

    Read More

  • Rise of Big Business and Organized Labor

    934 Words  | 2 Pages

    Henry Ford was a captain of industry. He owned Ford Motors, which was an automobile company. Ford was a man who always wanted his own way and he got it most of the time. The creation he is most famous for is the FORD MODEL T, the car for the commoners. His car became an instant hit amongst the people- the local people and the working class of people because it was very affordable and was not just for the rich. Ford was a very successful businessman but not particularly a nice guy. He expected a lot from his workers but thing is that he also cared for his workers, because he knew that not only were they dependent on him but also that he depended upon them, they were the ones due to which he was gaining popularity and success throughout America. Ford’s great strength was the manufacturing process for his cars. Instead of having people put together the entire car he created organized teams that added parts to the Model T as it moved down the assembly line, this lowered the production prices and also the time and energy required to put together the cars.

    Read More

  • Henry Ford: Henry Ford The Car Industry

    843 Words  | 2 Pages

    Henry Ford, the man who revolutionized the car industry forever, founded his company under the beliefs that a car wasn’t a high-speed toy for the rich but instead a sturdy vehicle for everyday family needs, like driving to work, getting groceries or driving to church. However, Henry ford did much more than just this feat. He also tried to make peace in WWI before America had joined the war. In addition, Ford made the radical new five dollars a day payment. However, Ford also had his lows. At an early age, his mother died. His first two companies had also been failures. Against many of his closest friends protests, he published an anti-semitic (Jewish) newspaper. Ford had a very interesting and unique life and he changed the automotive industry forever.

    Read More

  • The Impact Of Henry Ford And The Ford Motor Company

    1250 Words  | 3 Pages

    Prior to January 4, 1914, the name Ford meant nothing. The Ford Motor Company paid its employees $2.34 for a nine-hour shift, and in 1912 the company made a profit of $13.5 million dollars (Raff 181). Raff continues in his article, “Looking back at the Five-Dollar Day,” that the Ford Motor Company had an employee turnover rate of 370%: “50,448 workers had to be hired during the course of 1913 to maintain an average labor force of 13,623” (181). These

    Read More

  • A Biography on Henry Ford

    1489 Words  | 3 Pages

    Famous for being one of the few people to greatly influence the twentieth century, Henry Ford was an innovator with a vision for the future. With his astounding work on transforming the automobile from just a simple invention into a great innovation that people to this day still buy and use, he shaped the twentieth century to a great extent. He was an American industrialist who founded the Ford Motor Company in the early nineteen hundreds. Ever since Ford was a young boy he has always seemed to have an interest in machines. He loved to tamper with machinery and other simple mechanisms. His first job was in a machine shop in Detroit which inspired him to experiment with machines and learn how they work. He learned to fix things like watches by trial-and-error and no matter what he did not give up when trying to learn how to fix things. He was one determined young man who worked hard and turned out to be a great leader with a very creative and imaginative mind. By teaching himself how to put a simple wrist watch together, he was able to use his newly found knowledge to move on to designing machines such as full sized steam engines. A few men who ran the steam engines helped to expand Ford’s knowledge of the engines by teaching him how they operated.

    Read More

  • Impact of the Automobile in America

    1031 Words  | 3 Pages

    This radical idea of the automobile permeated throughout America with most, if not all credit renowned to Henry Ford. Observed as a technological mastermind, Ford commenced experiments involving machinery from the time he was adolescent to launching his career working at the Edison Illuminating Company. He examined internal combustion engines and gasoline buggy ideas eventually resulting in removing himself from Edison’s company and his introduction in the emerging automobile industry. Following in 1903, he established the Ford Motor Company, which expeditiously became a leader in the automotive industry and would gain extensive wealth within only a few decades. While other manufacturers strove to produce automobiles to be extravagant and luxurious predominantly for the wealthy, he immensely focused on efficient mass production of durable, affordable vehicles for the expanding middle-class market.

    Read More

  • Henry Ford: The History Of The Ford Motor Company

    962 Words  | 2 Pages

    He received investments from all over to help form the Henry Ford Company in 1899. Ford’s father was proud to see his son’s name on automobiles, but was frustrated when Ford needed to constantly improve the efficiency. Ford left his namesake company in 1902 for financial reasons. After he left, it changed names to the Cadillac Motor Car Company. Later that year, Ford founded the Ford Motor Company. A month after the company was formed, the Ford Model A was built at the Ford Motor Plant in Detroit. Only a couple of these cars were able to be made every day, so sales were slow. There were only about 2 to 3 workers to assemble these cars. But Ford was motivated to create an efficient and consumer friendly automobile. These innovations resulted in the Ford Model T. The Model T was a great liftoff for Ford and his company, and as a result, he practiced techniques of mass production the would change American Industry, including using large production plants. The mass production technique made it easier for people to assemble cars and the rate of producing these cars were much quicker. It was also a cheaper way to produce automobiles, and in 1914, Ford was able to raise the daily wage to 5 dollars. Production skyrocketed for the Model T and by 1918, half of America had purchased these inexpensive and readily available cars. In 1919, Ford made his son Edsel as the president of the company, but Ford still kept control of the company’s day to day operations. That same year, Ford stopped making the Model T and invented the New and improved Model A , which had better horsepower and brakes, and better overall improvements. By this time, Ford had sold 15 million Model T’s and had opened plants that manufactured the Model

    Read More

  • Executive Summary of the Ford Motor Company

    2126 Words  | 5 Pages

    So the discussion on internal and external analysis clearly defines that where the competitive advantage of Ford Motors is and where it is lacking. People who have durability as their first priority will go for Ford but they lack in some of their strategies which the management should consider and work on it. We also came to know that Ford is an innovative company from the very first and also serves local demands with the help of related and supporting industry. But in some points they have taken wrong decisions which compel them to sell some of their brands to others. The good news is they are doing hard job to maintain their performance regarding their star and cash cow products to remain in the competition.

    Read More

  • Henry Ford

    1084 Words  | 3 Pages

    Henry Ford was one of the most important and influential inventors and businessmen in the short history of America. He revolutionized the business world and he changed forever the efficiency of factories around the world. One of the reasons that Henry Ford can be considered such an important man is that his ideas and concepts are still used today. Boron on July 30, in the year of 1863, Henry Ford was the oldest child of the family. His parents, William and Mary Ford, were “prosperous farmers” in his hometown of Dearborn. While they we’re well off for farmers, Ford certainly wasn’t spoiled and fed from silver spoons. Ford was just like any other typical young boy during the rural nineteenth century. From early on there we’re signs that Henry was going to be something more than a farmer. He looked with interest upon the machinery that his father and himself used for their farming, and looked with disdain at the rigorous chores of a farmer. In the year 1879, Henry being a meager 16 years old, he moved to the city of Detroit where he would work as an apprentice machinist. Henry would remain in Detroit working and learning about all varieties of machines. Although he occasionally came back to visit Dearborn, he mostly stayed in Detroit, picking up more and more valuable knowledge. This apprenticeship allowed him to work in the factories of Detroit and learn what a hard working blue-collar job was like. When he did return to Dearborn he was always tearing apart and rebuilding his fathers machines, along with the dreaded farm chores. Henry Ford was a hard worker and that was proven by him getting fired from one of his jobs in Detroit because the older employees we’re mad at him because he was finishing his repairs in a half hour rather than the usual five hours. Clara Bryant would represent the next step in now twenty-five year old Henry Ford’s life. The two lovers we’re married in 1888 and would endure good times as well as bad. In order to support his new wife Henry was forced to work the land as he ran a sawmill that was given to him by his father. His father actually attempted to bribe Henry to stay in the farming business as he gave him the land only under the condition that he would continue on as a farmer.

    Read More

  • Levels Of Planning

    1709 Words  | 4 Pages

    Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.

    Read More

  • Ford Motor Company Business Case Study

    1932 Words  | 4 Pages

    Ford Motor Company Introduction This paper will address an analysis of the key success factors in strategic planning for the Ford Motor Company, including planning, product offerings, marketing and sales. The paper will also include financial characteristics and a competitive analysis of the Ford Motor Company. Ford Motor Company The Ford Motor Company inspired a manufacturing revolution with its mass production assembly lines in the early 20th century. Ford and Lincoln are one of the world's most well known automotive brands, most known for the Ford Mustang, and F-Series pickup trucks.

    Read More

  • Ford Motor Company Strategic Audit

    1313 Words  | 3 Pages

    Ford Motor Company current mission statement is “committed to provide personal mobility for people around the world”. With that in mind their vision is to become the world’s leading Consumer Company for automotive products and services. By improving everything they do, the company provide superior returns to their shareholders (Vision, Mission, Values).

    Read More

  • The Impact of Taylorism and Fordism on the US Motor Vehicle Industry

    1853 Words  | 4 Pages

    This paper takes a look at the ways in which the ideas of Fordism and Taylorism helped the success of the U.S motor vehicle industry. The motor vehicle industry has changed the fundamental ideas on the process of manufacturing and probably more expressively on how humans work together to create value.

    Read More

  • Ford Motor Company

    1840 Words  | 4 Pages

    Henry Ford began a family automobile business in 1903; this was during the industrial revolution. This business has become the most famous automobile brand in the world. Over the years the business structure had adapted to changes in leadership, markets trends and the economic conditions. The Ford family still controls the company through multiple voting shares, even though it owns a much lower proportion of the equity

    Read More

More about The Ford Motor Company: The History Of The Ford Motor Company

Open Document