...AUTOMOTIVE INDUSTRY ANALYSIS Submitted by Team A Donald Bradley Morgan Bruns Adam Fleming Jay Ling Lauren Margolin Felipe Roman Presented to: Prof. Alan Flury December 5, 2005 ME 6753: Principles of Management for Engineers Executive Summary Chosen industry: This analysis focuses on the automotive industry, specifically, large-scale manufacturers of automobiles. The automotive industry is inherently interesting: it is massive, it is competitive, and it is expected to undergo major restructuring in the near future due to globalization and decreasing oil reserves. The analysis team members (we) feel qualified to perform this investigation due to our familiarity with the industry and our education—several of us have studied and worked on problems associated with automobile manufacturing and we are all mechanical engineering graduate students. Analysis Methodology: The report begins with a historical overview of the automotive industry. This is followed by an analysis of the industry’s structural characteristics using Porter’s 5 Forces Model as a framework, which provides an understanding of the automotive industry as a whole in its current state. Next, ten representative companies of varying sizes are analyzed and compared; the chosen companies and selection criteria follow. General Motors, Ford, and Toyota were chosen because they are the current market leaders. DaimlerChrysler, Nissan, Volkswagen, and Honda were chosen because of their status as stable international...
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...8, 2011 History The organization 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...
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...Project Part I, Strategic Business Unit Proposal: The Ford Motor Company Strategic Business Unit Proposal: The Ford Motor Company Industry Background The Automotive Industry is one of the most important industries in the economic sector worldwide. Most of the industrialized countries produce their own brand of cars and/or trucks. According to the International Organization of Motor Vehicle Manufacturers statistics, during the year 2010, over 78 million of cars and trucks were produced in over 50 countries worldwide, with China, Japan and the United States as the world top three producers. The Automotive Industry started in Germany with the introduction of the gasoline power internal combustion engine in 1876 by Nikolous Otto (the same type of engine that is used today). In 1885 Karl Benz started the first production of an automobile, a three wheeler that was delivered for the first time in 1886. In Springfield Massachusetts, the Duryea brothers, Charles and Frank, were fascinated with Karls Benz’s idea of a “horseless carriage” and in September 1893, they successfully road tested their automobile on the streets of Springfield. The Duryea Motor Wagon Company became the first automobile production factory in America and by 1896 they had sold a grand total of 13 “horseless carriages” (Wright R.A, 1996). After the Duryea Brothers, many others followed with the most famous being Henry Ford, who established The Ford Motor Co. It was said that at one point America had...
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...Thursday, November 13, 2014 [Ethics of the Automobile Industry: Ford Motor Company] | By Amir Rafih, Jordan Mather, Jennifer Sprague, Eric Parr, Gloria Ledi, and Meshal Mustafa | | (04-71-300 ) Business Ethics in a Global Context by Dr. Kent Walker Table of Contents Executive Summary 3 Introduction 4 Global History & Development of Automotive Industry 4 Value Chain of the Automotive Industry 6 PEST Analysis 7 Political Factors 7 Economic Factors 9 Social Factors 9 Technological Factors 10 Stakeholder Interests 11 Shareholders 11 Domestic Part Suppliers 12 CAW/UAW (Employees) 12 Customers 12 Environmental Groups 13 Stakeholder Position Analysis 13 CEO 13 Customers 13 Competitors 14 Analysis of History of Recalls and Assessment of Ethics 14 History of Recalls 14 Potential for Improvement 16 Economic, Social and Environmental Impacts of the Global Automobile Industry 17 Utilitarianism 17 Feminist Ethics 18 Postmodern ethics 20 Kant’s categorical Imperative 21 Corporate Social Responsibility, Corporate Social Responsiveness and Corporate Social Performance 22 Conclusion 27 References 27 Appendices 29 Executive Summary Before only the wealthy could afford cars but this changed with the Ford Model T. This car was specifically targeted at average family household by making it affordable to own. By 1918, Model T was owned by half of American car consumers (LoveToKnow, 2014). Standards must be set for companies...
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...Ethical Assessment Victor Terry Swanson MGT/521 June 8, 2011 Dr. William Dickie A successful company is built on a solid foundation. Ford Motor Company was founder Henry Ford had a concept to build cars. Henry Ford not only wanted to manufacture cars, he wanted to produce a product of superiority and quality. The market and automotive industry has grown considerable since the conception of Henry Fords’ dream. Never the less, in a global and universal market, the core principle of what Ford Motor Company was founded remains the same. Ford Motors’ commitment to the company’s mission statement, vision, ethics, and values is what solidifies Ford’s position as a top contender in the automotive industry. Mission and Vision Ford’s transformation Ford’s commitment to mission statement is timeless. Henry Ford had a mission to produce a quality automobile in the 20th century. Ford Motor Company (FMC) continues to solidify the company’s top ranking in the worlds’ automotive market. As a leader in the automotive market Ford continues to reinvent the company’s style of leadership. Several approaches to leadership have lead to a successful rejuvenation of Ford Motors. According to text Ford Motors embraces the transformational style of leadership. FMC know the benefit of keeping the proverbial hand on the pulse of the consumer272. A company is only as good as the product the companies supply and the demand for the product. The conceptual vision of the company was to provide a...
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...of exports, although it was noted that Japanese cars are very popular in the U.S; however, most Americans still choose the American car. Why? Because Americans think that the U.S. auto industry is very important, and to buy American cars means provide a support to the automotive industry. Began in the 2008, the financial crisis brought the U.S. economy a lot of negative effects, and most of American people put their hopes of economic recovery on the automotive industry. Because they believe that recovery in the automotive industry will drive the revitalization of other industries. There is no doubt that the U.S. auto industry and economic development are closely linked, and is very important for the U.S. auto industry. Why the automobile industry is so important to U.S economic development? The United States is one of the world’s most developed and richest countries, and the U.S. auto industry has long been an important support to the country’s development. Automobile manufacturing industry in the United States has a long history, and the lives of every American may be associated with the automotive industry. Why Americans cannot live without car manufacturing industries? Obviously, the answer is the automotive industry in the United States began in 1895 (Klepper 5). That was 115 years ago, this is a very long time, it can be said that the U.S. automobile industry had a...
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...History of Ford Motor Co. Shaun Mains Alvernia University The Ford Motor Company is an American based automobile manufacturer that was founded in 1903 by the late Henry Ford. The company pioneered the early integrated moving assembly line, fought and beat early gasoline powered automobile patents, and even survived the Great Depression. Today, Ford is the fifth largest automobile manufacturer in the world, based on sales, and is the largest family controlled company in the world (History). Henry Ford, along with 11 other investors, founded Ford Motor Company on June 16th 1903 (History). In its early years the company produced the Model A, S, K and most notably, the Model T. The popularity of the Ford Model T from 1908 through 1913 is what fueled the development of the integrated moving assembly line. The assembly line simplified the manufacturing process and made mass production possible (Company). The chassis assembly line alone went from 12.5 hours to produce a chassis, down to 1.5 hours (Company). The Ford Model T was a huge success for the automobile manufacturer. The vehicle was priced significantly lower than the competition largely in part to Henry Ford’s insistence on building integrated manufacturing plants and the utilization of the integrated moving assembly line. The company’s main goal of the time was to build a vehicle for the everyday American, and the company priced their vehicles accordingly. This achievement allowed even the poorest of Americans...
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...Electric Cars Industry History of Automobile Industry The history of automobile dates back to 17th century as a Flemish Jesuit missionary, Ferdinand Verbiest, built a steam-powered vehicle to Chinese Emperor Kangxi as a toy. In 1769 French inventor Nicolas-Joseph Cugnot improved Verbiest’s car by constructing a car which could hold a driver. But only in 1886 German engineer Karl Benz invented the first real useful car, considered a first automobile powered by internal-combustion engine. A few years later, a guy named Henry Ford applied for work with Thomas Edison. Ford started working with steam-powered engines the Edison’s company used to make electricity for US cities. While working at Edison’s company Ford came up with machine called Ford Quadricycle, ran by internal internal combustion engine and in 1899 Ford founded the Detroit Automobile Company. Company soon failed and after few other unsuccessful attempts Ford finally formed Ford Motor, a first automobile manufacturer, company in 1903. In the beginning of car industry, a time when the technology was completely new, 40% of American cars were powered by steam, while 38% were electric and 22% had gas engines. So, in the beginning of the automobile industry it was really unclear which direction in will turn. Steam engine, internal combustion engine and electricity had almost equal starting positions to become a standard for powering cars. Even at the time with inventions of Thomas Edison and Nikola Tesla electricity may...
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...Table of Contents Industry 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...
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...Ford Motor Company Bruce Green MKT 111B 11/18/13 Prof L. Ford Motor Company was founded by Henry Ford in 1903. The company has been family owned for over 100 years and is one of the largest family controlled companies in the world. When Ford started producing cars, they were too expensive for the middle class. Ford helped develop new ways to make the automobiles affordable. In 1913, Ford started the first assembly line. More recently, as the economy began to collapse the sales and profit for the company followed. The company went through some rough years. Eventually they would rebound by resizing and consolidating. Sustainability is at the top of the company’s business. William Clay Ford Jr. says, “Sustainability at Ford Motor Company has evolved from an idealistic vision into a core part of our business. Our commitment to responsibly use our resources to create long-term value has guided us successfully through periods of rapid change and shifting markets.” Their endless commitment has led to Ford becoming profitable now. The company released thirteen trends for 2013. The biggest trend for the company, trust is the differentiator. This means the company wants the consumer to trust them. Trust has become very important to consumers. Ford Motor Company produces cars and trucks, also they provide a financing service. This is called Ford Credit and allows the company to do all business in house when selling a automobile. Providing this service saves...
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...Description * History of the industry General Environment Dimensions- * PESTEL Specific External Environment Dimensions- * Porter’s 5 Forces Competitive Environment Analysis- * Industry Characteristics * Strategic Maps Competitor Analysis- Conclusion and Summary- Bibliography and References I Introduction: Purpose of analysis Overview/outline of written report This report will begin with the automotive industry description, followed by the history from the 19th century to the 20th century. Next, the general environment with specialized attention to the external environment through PESTEL (political, economic, social, technological, environment and legal). The analysis will continue the use of Porter’s five forces which will explain the automotive industry in its current state. Competitive environment analysis will describe the industry characteristics, industry structure and the anticipated shifts that are occurring in the automotive industry. Next, the competitor analysis will look at a group of selected competitors, indicating the strengths and weakness of the companies, pin pointing the weakest firm in the industry. The conclusion this will be a summarization of the opportunity and threats which were highlighted through this report. Industry Description The automotive industry has many industries associated with design, production wholesaling, retailing, and maintenance of automobiles. (National Employment) The automotive industry...
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...car company Tesla, from its beginnings to the present day. The main objective is to analyze how these strategies have driven the success so far has reached the mentioned company in a highly competitive market like the automotive market. Initially it is covering a historical remembrance of the automotive industry and how different companies competing in this market have achieved success at different times with different strategies. Following is a brief historical review of Tesla, with the intention to place it within the context of the automotive industry. Finally, is investigated Tesla’s strategies used from its birth until now, analyzing which have been the key to success for an small company could enter the automotive market and successfully compete, knowing that it is a market dominated by giants companies and recognized brands, and with a long tradition in the industry. Key Words: Tesla Motors, Electric Autos, Automotive Industry, Automotive Strategy. Contents 1. Introduction ……………………………………………………………………... 2. Methodology……………………………………………………………………… 3. Discussion………………………………………………………………………… 3.1. Automotive Industry’s Brief History and Strategies………………………….. 3.2. Modern Automotive Industry Strategies………………………………………. 3.3. Tesla Motor in the Automotive Industry………………………………………. 3.4. What makes Tesla a possible success? ………………………………………… 3.5. Tesla’s historical transformation……………………………………………….. 3.6. Tesla Motor’s Business Market………………………………………………… 3.7. Tesla Motor’s...
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...Introduction Ford Motor Company is one of the oldest car manufacturers period, it was founded June 16, 1903 (ideafinder, 2007). They are known for their Model T Ford, which is famous because it was the first mass produced car (ideafinder, 2007). Due to the longevity of this company, I was interested in researching the business to see just how they have been able to sustain their place as one of the more popular car companies in the world. The Ford Motor Company can be a big inspiration to a person who wants to be an entrepreneur. This paper will explore the strengths, weaknesses, opportunities, and threats to the company. This paper will also delve into just who the stakeholders of this company are, and how and if the needs of these stakeholders are met by the company. SWOT Analysis There are many strengths that this great company possesses and some of them are that it manufactures and distributes automobiles across six continents (Ford Motor Company, 2010). This company also employs about 164,000 people and has 70 plants worldwide (Ford Motor Company, 2010). Ford is now known for producing fuel-saving technologies across a wide range of vehicles, they are also launching a full range of electrical vehicles (Ford Motor Company, 2010). Being aware of areas of improvement is key for a company to continue being successful. The automotive liquidity of Ford Motor Company has significant pressure on it due to the global economic crisis that began in 2008 (Ford Motor Company, 2010)...
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...Ford Motor Begin New Pricing Strategy Price is not just a number on a tag. It means everything to a manufacture like Ford Motor, because price is related to Ford's income, cost, revenue, employee benefit and etc. Price is the only one element of the marketing mix that produces revenue; the other elements produce costs. Ford Motor must understand making a proper pricing strategy is very important. The relationship between price and demand is the higher the price, the lower the demand. As we all known, automotive market is price sensitivity, because automotive is expensive for most customer, customers are less price sensitive to low-cost items. The higher the elasticity, the greater the volume growth resulting from a 1 percent price reduction. If demand is elastic, sellers will consider lowering the price. A lower price will produce ,ore total revenue. Throughout most of history, prices were set by negotiation between buyers and sellers. But in 21 centre there are many types of pricing strategies that can be used for a certain product or service. First is 'premium pricing' that uses high price and uniqueness within a product or service. Second is 'penetration pricing' wherein prices are artificially low in order to gain market share. Third is 'economy pricing' wherein the cost of marketing and manufacturing are both kept low. Fourth is 'price skimming' wherein there is high price for a substantial competitive advantage. Fifth is 'optional product pricing' wherein the...
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...Ford Motor Company – Case Study Jason Austin Denine Rood Jeanne Sands Like apple pie and a summer baseball game, Ford Motor Company has come to symbolize America, the land of opportunity. This America is a place where a person with scarcely any means can take little more than an idea and transform it into one of the most successful companies in the world. This is the story of Henry Ford and the Ford Motor Company. Consider the following quote from the Ford Web site. Ford Motor Company entered the business world on June 16, 1903, when Henry Ford and 11 business associates signed the company's articles of incorporation. With $28,000 in cash, the pioneering industrialists gave birth to what was to become one of the world's largest corporations. Few companies are as closely identified with the history and development of industry and society throughout the 20th century as Ford Motor Company. Henry Ford and his business partners where true entrepreneurs. Today, when we think about Ford, we think about innovation. From Henry Ford’s revolutionary idea of the assembly line to the new vehicles that Ford introduces every day, innovation has always been a cornerstone of Ford’s business. One little known fact is that Ford embraced QFD (Quality Function Deployment) , a Japanese quality methodology, into their product design process significantly earlier than most companies in the United States. This embracing of new ideology has led Ford to offer products...
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