...On 5th January 1914 the Ford Motor company announced that it would more than double the wages of its workers. Briefly describe the history of this decision and relate to the theory of incentives and efficiency wages. When Henry Ford introduced the five-dollar day on the 12th of January 1914, many of his competitors might have questioned the success of this policy. Today, it is well established that Ford’s strategy was a key reason for the company’s early success and is often documented as an exemplary application of the efficiency-wage theory. This essay will briefly outline the history and implications that have led to the five-dollar day and relate it to the theory of incentives and efficiency wages. Henry Ford founded the Ford Motor Company in 1903. During the first few years the company remained relatively small and it was only with the introduction of the T-Model in 1908 and the transformation to assembly line production that Ford could expand his market share and increase the company’s profitability. However, as Raff and Summers noted, assembly line production resulted in a high degree of specialisation of the different production steps. Work at Ford’s became more and more menial, leading to dissatisfaction among the workforce, which reflected in a significant annual turnover of 370% in 1913. Although there was no evidence that Ford had problems filling his vacancies, the absenteeism and high turnover undoubtedly resulted in costs that Ford had aimed to reduce. It...
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...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 2006, Mr. Mulally served as Executive Vice President of the Boeing Company and President...
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...A History of the Ford Motor Company Archives, With Reflections on Archival Documentation of Ford of Europe's History Elizabeth W. Adkins, Certified Archivist Director, Global Information Management Ford Motor Company Introduction: The Ford Motor Company Archives and the Story of the Company The history of the Ford Motor Company Archives is intertwined with the efforts to tell the story of the company. Both of these initiatives – the creation of the Archives and the telling of the Ford Motor Company story – began with the approach of the fiftieth anniversary. Company executives and the Ford family realized the importance of Henry Ford and his company in the development and progress of the twentieth century. They accepted the obligation to gather and organize the company's historical legacy to ensure that the broader story could be told. As a result, the first fifty years of the company (including its early international expansion) are fairly well documented and accessible to the public in research materials and in books. The historical record of the next fifty years, including the company's modernization and further international development under Henry Ford II, is less complete. By the early 1960s, for various reasons, the Ford Archives began to experience the "down side" of the up and down cycle that characterizes the history of American corporate archives. Most of the Ford archival holdings were donated to a nonprofit educational institution, Henry...
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...Positioning: Ford Motors [Type the document subtitle] [This paper tries to analyse the competitive positioning of Ford on the basis of various business and strategic parameters which affects the profitability of Ford.] 2013 SilverSpark Microsoft 10/14/2013 EXECUTIVE SUMMARY: The company which is taken into consideration is Ford Motors which is an American multinational company. The study is about the company’s background, size, competitors, product life cycle, swot analysis, customer’s traits and the company’s positioning CONTENTS: 1. An Executive Summary..............................................................................2 2. Company & product background..................................................................2 3. Market analysis: Size, Competitors and Product Life .....................................4 4. SWOT Analysis...........................................................................................6 5. Customer traits and Segmentation ................................................................7 6. Positioning Strategy.....................................................................................7 7. Conclusion..................................................................................................7 8. References..................................................................................................8 COMPANY AND PRODUCT BACKGROUND: Ford Motors is an automobile company and is...
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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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...The Case of the Ford Pinto By James Abstract Product harm crisis can be defined as a sudden break in a product’s life cycle (Siomkos, G.J and Kurzbard. J. 1994). In 1971 the Ford Motor Company created a product harm crisis with the introduction of the Ford Pinto. The Ford Pinto is known to be one of the most dangerous vehicles ever produced in automotive history due to several serious design flaws. This paper will identify the factors that contributed to the product harm crisis, compare and contrast the findings of various studies on a product harm crisis and finally synthesis the research findings and provide a post mortem recommendation to the Ford Motor Company on how the Ford Pinto product crisis should have been handled. The Case of the Ford Pinto In 1968 the Ford Motor Company decided to market a vehicle that was small, inexpensive and would appeal to all car buyers. The Vice President of Ford Motor Company at the time was Lee Iacocca. Mr. Iacocca approved the plan for the Ford Pinto based on the parameters of the car weighing 2000 pounds and costing $2,000.00 dollars (Danley J. 2005). By placing these parameters on the car’s designers, they were limited from the beginning and ended up with a failed product. The key factors that contributed to the product crisis included the Ford Pinto being rushed to production in twenty five months, the timeframe to production causing designers and producers of the car to cut corners and finally...
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...Ford Motor Company- Pleasing or Unattractive One of the largest American global automakers, Ford Motor Company recently changed its slogan from “Drive One” to now “Go Further”. This new global slogan is replacing its old slogan because the company feels that this innovative slogan captures what the company’s culture always has been doing since it infancy with its founder Henry Ford. The new slogan “Go Further”, resonates how Ford Motor Company as individuals, as a team, and as a company has always gone further for its customers, it dealers, and its communities. But is Ford Motor Company echoing what its slogan is believed to exemplify? Ford Motor Company started in 1903 by Henry Ford, a young man with a passion for and commitment to machinery and engineering at a very young age. Henry Ford’s passion to create a vehicle that was affordable to the common man, started with his first vehicle the Quadricycle, a horseless carriage with a gas-powered engine and then came the first Ford Model A which was massed produced to be affordable to middle-class America. This company grew from its first automotive plant in Detroit, Michigan to plants all over the world. Being a global automaker in today’s modern world, it appears Ford has had its share ups and downs as a global corporate citizen just like its global market competitors. In the next few sections, an analysis of a few facets that aren’t observed quite enough of Ford Motor Company will be observed and perhaps should have some...
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...Ford Motor Company In today’s society it is a very common theme for men, especially hardworking men, to want a truck. That being said, what better company is there for a truck or a durable vehicle to not only improve image but use as an aid in everyday working conditions than Ford? We think that Ford Motor Company is a very good company to investigate and research because of the solid foundation it stands on and the rich history and tradition of such an illustrious company. Ford has been at the forefront of the automobile industry for the majority of its existence. They have been a trailblazer as far as mass production, and advancements in just about every way imaginable. For these reasons and more we will be doing our dijuno project on the Ford Motor Company. We will be exploring the consumer-brand relationships, breakdown the ads (testimonials), how their product raises self-esteem, and the product as an extended self. The company mainly targets the working male who has the need for a big truck to do heavy lifting and towing. The company has the richest history of any car company in the U.S. and for that reason we will give a very in depth and concise overview of such. Ford also appeals to those who have the upmost pride and support of the U.S. Other things we will be evaluating and analyzing in our PowerPoint presentation will include the target market for different demographics, how it caters to the needs of the consumers, the strategies and tactics used to appeal to...
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...General Motors. I picked General Motors because of its popularity in the United States. I had some interesting general knowledge of the company like the dependability and quality of their cars. Some comments were, “I rather have a Chevy Truck than a Ford” and “The general motors cars are more dependable than Ford.” These comments made it clear that I liked the General Motors auto line of cars. Then, I asked myself what would be a cooperate company just as enormous. I came to a conclusion that Ford would be the other company. Though Ford has a nice line of cars, I had some negative thoughts about the company. Acronyms were said such as, “Found On Road Dead” or “Fix Or Repair Daily.” Each of those sayings had put a dent in my thoughts that I would not buy a Ford, not solely on those sayings, but also because of the influence of my parents and other such adverse publicity. These companies have a long-standing tradition in the U.S as manufacturing giants in the automobile industry, since they began here. With these two cooperategiants, I can evaluate and compare both companies financially. My over all preference. was to buy the General Motors line of cars; in doing this project I wanted to know if by researching each company if I would change my mind. Also, this will enable me to draw a conclusion on which company would be a better investment and which company is doing better as a whole. GM History: Founded in 1908, GM today sells its vehicles in about 200 countries. The company has...
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...Ford Motor Company: An Analysis of Employee Motivation and Morale Table of Contents Overview 2 Introduction 3 Clues from History 3 Ford & the Other Guys 6 Innovation & Motivation 8 The Family 12 Cutbacks 13 Conclusion 15 Works Cited 16 Overview The purpose of the following paper is to inform the reader about possible techniques of behavior modification in an attempt to solve motivational problems with workers at Ford Motor Company. Information on the company’s history, current and future outlooks, and human resource problems will lay the foundation to apply proven methods of increasing motivation. The paper is concluded with a look into the effects of cutting costs on employee moral along with a summary of proposed methods for solving the loss of motivation at Ford. Introduction Ford Motor Company has been an American icon since the very early years of the 20th century. From the Model T’s, which were assembled by hand in 1903, to today which includes Aston Martin, Land Rover, Lincoln, and several other products, along with the signature Ford brand-name products, Ford Motor has been making cars and, more importantly, making incredible profits. With amazing innovations by Henry Ford and his successors, a product which appeals to the American people, and incredible tenacity, Ford has grown to be the world’s third-largest automaker and one of the top-ten most profitable corporations in the world. Being one of the world’s most powerful and profitable...
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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 over...
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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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...Ford Motor Company: Management and Leadership Randall Bullard Randall Bullard, Yahoo Contributor Network Sep 11, 2009 "Share your voice on Yahoo websites. Start Here." More: Ford Motor Company Newsvine Effective Management Effective Managers FlagPost a comment Economic changes continue to transform the very essence of how business is conducted. A company must be able to recognize the paths they face and be able to poise themselves to confront any obstacles to achieve the goals they set. One would ask how a company can poise themselves to meet these demands and the answer to that would be simple, thorough capable management and strong leadership. The answer may be simple but achieving this can be a daunting task. What does it take to have capable management and what qualities make up a good leader? Ford Motor Company is one company that has taken these items to task and have produced results that illustrate the power of effective management and precise leadership. The company's ability to appoint qualified managers and leaders has allowed the company to rise from previous lows and mistakes to be poised for a bright economic future. To be successful Ford Motor Company is required to have both good management and good leadership. Looking at these two terms one would think that they are one and the same. Isn't a manager a leader? Isn't a leader a manager? Thought these terms seem to be one and the same, they can be truly different when taken in...
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...Part 3: Diagnosing the Change – Chrysler Group LLC & Ford Motor Company The congruence model first established in the eighties by David A Nadler and M L Tushman provides a means to an understanding of the sources of organizational performance and the relationship between the two. This model views organizations as components that are interconnected and interacting with goals of tight congruence. The Congruence Model consists of categories that are broken down into components. (Mercer, 2012) The first category of the Congruence Model is input. The components of the input category are environment, resources, and history. The environment consists of factors that are outside of the organization but can influence it. The analysis would want to see what demands or constraints the environment places on the organization. The history will provide the patterns of the past; behaviors, activities, and effectiveness. History can definitely have an effect on how the organization is functioning today. Things to analysis in the history include any major changes, phases of development, and the current impact of these historical factors. These components can consists of external and internal forces that drive the need for a change. (Mercer, 2012) The next category of the congruence model is strategy. There a two levels which are corporate strategy, which will include the legal aspect, and the business strategy. The business strategy will include decisions about how to use the resources of the...
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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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