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Executive Summary of the Ford Motor Company Essay
Ford Motor Company case studies
Ford Motor Company case studies
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Biographical Summary Henry Ford was born on July 30, 1863, on a farm near Dearborn, Michigan. His only formal education was through fifth grade at the local schoolhouse, where he took an early interest in tinkering with steam engines. He left his family farm for Detroit at sixteen and became a mechanist apprentice. In 1888 he married Detroit local Clara Ala Bryant, and they had a child named Edsel. Ford briefly returned to farming to support his family. In 1891, Ford returned to Detroit and was hired as an engineer at the Edison Illuminating Company. Several years later, he handcrafted one of his first cars, the Ford Quadricycle. He left his job at the Edison Company to briefly serve as superintendent at his first car company, Detroit Automobile …show more content…
Company. The company was unsuccessful and quickly went bankrupt. Ford took up racing and beat champion Alexander Winton in 1901 in one of his hand built cars, setting records and building a reputation for a quality vehicle and attracting the attention of investors. In 1901 he founded the Henry Ford Company (later renamed Cadillac), but left after a year over disputes with stockholders about the design. The Ford Motor Company was founded in 1903, and rolled out the first Model T in 1908. Ford then opened a factory at Highland Park, the largest of its time, and adopted the moving assembly line, giving this revolutionary mode of production its claim to fame. Ford sold millions of cars, opened new factories all over the world and became a world-famous company head. In 1926, President Franklin Roosevelt commissioned Ford Motors to build produce the Tri-Motor aircraft for WWII, but due to illness Ford was unable to meet the set demand for airplane production. The Model T’s successors Model A and V-8 proved to be relative disappointments and were outsold by GM and Chrysler’s cars. The company eventually lost its market dominance but had a lasting impact on other technological developments and U.S. infrastructure. His political views were often subject of controversy with his criticism of U.S. international policies and anti-Semitic remarks. Ford’s son Edsel died in 1943, and the title of company head was handed to his grandson, Henry Ford II, in 1945. Ford passed away at his home in Dearborn, Michigan in 1947 at age 83. Entrepreneur Analysis Henry Ford has made his mark on history in a remarkable way, and is one of the greatest entrepreneurs of the twentieth century. Much can be learned from his entrepreneurial ventures in establishing the Ford Motors Company in the early twentieth century. He developed his own business philosophy called Fordism, a term often used today to describe anything from the assembly line to high wages to a mass consumer society in general, and can be summed up in this quote: “There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.” His legendary success can be attributed to several factors: his focus on quality and attention to detail; his extensive knowledge of the market; his revolutionary approach to factory methods of production, and finally, his commitment to serving the working class by raising the wages. Although Ford Motors Company eventually lost its top standing in the automobile industry, there is much to be learned from Henry Ford’s initial success in understanding how his new approach to business and innovative methods of production revolutionized the industry. Ford was quite the perfectionist. Quality was something Ford was very considerate of throughout his entire career, one of his most famous quotes being, “Quality means doing it right when no one is looking.” In fact, he nearly lost his investors in the beginning of his Ford Motors project for not shipping vehicles on time because he wanted to perfect them and fix mechanical problems, but his business parter forced him to ship what was ready in order to get the ball rolling. But when Ford began racing, it was the quality of the vehicles that helped him win races and set new records. The attention to detail translated into better, faster, and more reliable cars. Another important factor to Ford’s success was his extensive knowledge of the market.
At the time that he started Ford Motors Company, most people did not drive cars, and hadn't even considered purchasing a car. Henry Ford is famously quoted saying, “If I had asked people what they wanted, they would have said ‘faster horses’”. His extremely successful Model T, nicknamed the Tin Lizzie, fundamentally changed the automotive industry. Ford understood that most of the American population was in the working class and could not afford to buy a car, so he decided to create a standardized vehicle for the masses. The Model T was durable, reliable, and most importantly, affordable. However, marketing strategies were crucial, since previously people hadn't even thought of buying a car. When Ford first introduced the Model T, he ensured that there was a great amount of publicity surrounding it in every newspaper possible to get the word out. Publicity is just as critical today if not more, and Ford understood that from very early …show more content…
on. Ford had a dream to produce a car for the masses: “motor cars for the great multitude.” In order to do so, he had to fundamentally change the methods of automobile production in order to make them less expensive and more accessible to the masses. Efficiency was key, and thus he adopted the use of the moving assembly line. The assembly line can be seen as the very embodiment of capitalism, and fundamentally changed how goods are produced all over the world. Ford was inspired by the methods used in the agricultural industry, particularly the continuos-flow production of flour mills, canneries and industrial bakeries, and thought of how he could apply those methods to automotive production. When he opened the Highland Park Ford Plant in 1910, and it was the largest factory in the world, and the epitome of mass production. He would get his workers to arrange all the parts in a row on skids and drag them down the line as they work. As the process grew more sophisticated and streamlined, Ford broke the assembly process into many separate steps, training each worker to do just one of them. The moving assembly line was installed in 1913 to mass produce the Ford Model T, and cut down the time it took to produce a car from twelve hours to two and a half hours. As Ford increased the speed of the moving-chassis, so he accelerated the rate of production. Ford understood that his factory workers were also consumers. His philosophy was to raise the wages instead of immediately pocketing all the profits, because he believed doing so would increase the company’s profits overall. In 1913, the rate of turnover at the Highland Park Ford Plant was 370 percent; to remedy this, he more than doubled the wages, raising them up to five dollars per day, gave factory workers an extra day off, and trained them to do one delineate task instead of having the assemble an entire car. The five-dollar day allowed the working class to develop stable patterns of consumption, thus supporting the economy as a whole. This consequently increased theFord Motors’ incoming revenue because the workers were finally able to purchase the vehicles they were producing and re-invest in their workplace. As Raff and Summers put it, “A variety of mechanisms, turning on the role wage increase might play in eliciting effort, reducing turnover, attracting better workers, and improving morale, have been suggested to explain why profits might be an increasing function of wages.” The trickling effect was undeniable. There was a sense of community and pride at Ford Motors, and he was able to evade the involvement of labour unions up until 1941. Ford placed great emphasis on team work: “coming together is a beginning; keeping together is progress; working together is success.” It is undeniable that Henry Ford remains one of the most significant figures in business history.
The automobile went from being a toy for society’s elite to being an essential item within the economic reach of nearly every American, all thanks to the hard work and ingenuity of Henry Ford. His dedication to quality and attention to detail earned him not only dozens of racing titles, but also the reputation of a respectable businessman. Ford understood his market so well that he knew what the people wanted before they could even ask for it, always ahead of the curve. Ford was a pioneer of American commercialism, and so his production methods were centred around efficiency and mass production, thus allowing him to increase productivity and decrees cost to meet the demand of the masses. Lastly, consideration of the working class and philosophy of raising the wages instead of raising the price point and focusing only on profit. There are a great many lessons to be learned from distinguished businessmen in history, and Henry Ford is no
exception.
Fordism changed American industrial and consumer in many ways such as Henry Ford developed new techniques of car manufacturing and marketing that made it easier for ordinary American citizens to try themselves. After three years of establishing his company “Ford Motor Company” in 1905, Ford introduced to the American people “Model T” for which was a light-weight vehicle that can handle to cruise the country’s poorly maintained roads. In Europe for which the car that is mostly used over there is the “Mercedes” for which was targeted for high-class people of society over there and were superior in craftsmanship in the car manufacturing; however, Ford focused on mass production
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.
Henry Ford was a great entrepreneur, who changed the way the world travelled, manufactured goods and enjoyed their leisure time. He bridged the gap between consumer and automobile, bettering the industry and world economy. He didn’t invent the automobile he just made it affordable for the average family through his moving assembly line that is still being used today to manufacture all things from household electronics to toys.
Behind every great business these us a great vision from the founder. We all know or should know that the future hold for us. Henry Ford was one of them people that had a great vision for the future. He was for the Americans with average incomes. He a vision to change the way we get around in our everyday lives. Mr. Ford was born on a farm in (birthplace). Where he spent his time indulging into his engineering efforts on the farm by working on ways to work smarter and not harder. Henry Ford did not like working on the farm as he was coming up because he found the work very tedious. His parents put a work bench in the house so Henry could study things such as a watches. He would take something a part such a watch and analyzed the inner moving
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.
Henry Ford was born on July 30 in 1863 in Greenfield Township, Michigan he was one of the first American industrialists and wanted to make a difference in the automobile industry. Back then, before 1908 automobiles were expensive that only rich people could afford. Henry Ford wanted to change this and wanted everyone to have a vehicle to drive. He was able to accomplish this by the assembly line, in which it created more cars in less time. The first car Henry Ford made was the Model T created on the assembly line. Ford’s innovation in manufacturing created less expensive cars and higher wage jobs.
The 1920's were a time where North America became modernized. Whether it was the music, the culture or the growth in technology, this time era is known to most people as the point where America advanced itself to become a world renowned country. An advancement that will be focused on is the Ford Model T. During this time owning a car was a symbol of wealth. Henry Ford, the creator of the Model T, made a system that revolutionized the automobile industry as we know it today. Henry Ford made it possible for people with an average income to own a motor vehicle by creating the assembly line and the theory of mass production. "The horse, which had been the chief means of land transportation for 3,500 years, had given way to the automobile, and the country's largest industry had been born." (Gordon)
Henry Ford was one of the most brilliant entrepreneurs in creating the automobile assembly line, it was his controversial characteristics and unorthodox approach towards administrating the Ford Motor Company which resulted in the conglomeration of one of the most successful corporations in the world. At the turn of the century everything was booming! The growth of the economy and stock market increased the job opportunities as well as morals. As a result of this industrial revolution, out of the woodwork came a humble yet driven man, Henry Ford. Between the five dollar/day plan, his policies on administrating the company, and his relations with his customers, Ford was often presented as a suspicious character. This controversial behavior epitomized the success of the company, it did not lead to his own downfall as many suspect. The Anti-Semitic accusations, and the belief that Ford was taking advantage of his customers, were by far overshadowed by his brillianc!e and strong hand in running his company.
The 1920’s was a time of great social, political, and economic change. The early automobile industry was no exclusion. It appears that throughout history, the figures that stand out the most are either worshipped or despised, and there is very rarely an in-between. Henry Ford, an icon of the 1920’s and the early automobile industry is no exemption. Many people love Ford for his innovative and entrepreneurial skills, while on the other hand, Ford is disliked by many due to his association with Anti-Semitism. Regardless of how Ford is viewed, many decisions he made significantly impacted the automobile industry. These decisions included installing the moving assembly line in his plant, and introducing the Five-Dollar Day. Through the implementation of the Five-Dollar Day, Ford was able to drastically change how the Ford Motor Company company operated, and how business would operate for years to come.
Model T’s were everywhere in America, even long after Ford stopped production in 1927. (Henry) While Ford was the number one brand, selling the most cars throughout the early 1900’s, the Model T created a new industry that is distinctly American; the auto industry. Three manufacturers, Ford, General Motors, and Chrysler dominated the American auto industry, and all three companies still produce cars today. The Model T gave birth to the competitive auto market. To this day, car companies in America are constantly racing to innovate, improve, and outsell their competitors. Manufacturing of cars “became the backbone of a new consumer goods-oriented society. By the mid-1920s it ranked first in value of product, and in 1982 it provided one out of every six jobs in the United States.” (history –idk yet) The demand for cars also resulted in a booming petroleum industry, and a high demand for metals, like steel. ( History idk yet) Furthermore, with so many people driving cars, construction of roads was necessary. The popularity of automobiles set off a chain reaction that created new opportunities all across the country. All sections of the modern automotive industry, from marketing to manufacturing, as well industries like petroleum refining, steel production, and road construction, can trace their beginnings to the Ford Model
He looked through hundreds of books on bicycles and books on horse and buggies. Ford decided to use wheels from a bicycle, and the same steel framing. From the horse and buggy, he took the idea of the shape of the actual frame. He also made a handlebar that was in the same place as horse rider for a buggy. When Henry For opened his first automobile plant, not only did it bring much attention to the industry, but it also made people want to own a car so that they looked “cool”. People knew that this was going to be a successful industry so they wanted to work in it. Even though most people think that the first true car ever made by Henry Ford was the Model A; they are actually being deceived. Henry Ford’s first actual cars were made for racing. Only a year or so later did Ford start making Model A’s.
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.
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.
He was a part of the transformation of the new world with his innovations in the engineering of the Model T. and introducing mass production along with giving consumers options. The Ford Motor Company produced safe and reliable vehicles that were made for everyone. Ford was seen as revolutionary and held to high standard of society in the World State. It was with Ford’s mass production of manufacturing it became
By 1899 Ford created a more proper looking motorcar with the help of wealthy businessman William Murphy. It had high wheels, a padded double bench, brass lamps, mud guards, and a "racy" look. In the same year Ford founded the Detroit Automobile Company. Within 3 years Ford had built an improved, more reliable Quadricycle, using a four-cylinder, 36 horsepower-racing engine. In 1901 his car beat what was then the world's fastest automobile in a race before a crowd of eight thousand people in Grosse Pointe, Michigan. The publicity he received for this victory allowed Ford to finance a practical laboratory for refining his auto ideas. In 1903 Ford launched his own car company, The Ford Motor Car Company, and by January 1904 he had sold 658 vehicles. By 1908 he built the famous Model T, a car that was affordable to the middle class. The automobile was no longer the toy of the rich.