Case Analysis: Ford Corporation
Case Analysis: Ford Motor Company
Global Strategic Management
March 4, 2013
Ford Motor Company: Organization Profile
Ford Motor Company Staying “Ford Tough”
Henry Ford established the auto company in June 16, 1903. An engineer by formation, Henry had a vision of making vehicles that would change society. He wanted to offer an affordable product to the public, one that his own workers could buy. His vision took him to model T in 1908, and to improve the manufacturing process with the conveyor belt at Ford’s Highland plant. The manufacturing capabilities kept on improving and in 1917 he built the Rouge plant that put the whole operation, from the raw material, to the final product, under the same roof.
In 1915 Henry Ford’s son, Edsel Ford joined his father in the company. Edsel brought to the company the desire of making a product not only functional, but stylish and beautiful. Ford became entirely family owned in 1919 when Henry, his wife Clara, and Edsel bought the outstanding shares for $105,820,894 (Chapman, pp. 128) .The company would hold to this status until 1956 when the company would allow outsiders to buy shares. For many years the image of the company was the same as its leadership. Henry Ford passed the presidency to Edsel Ford in 1919. Henry Ford reassumed the leadership after the death of Edsel in 1943. After Henry Ford resigned, Henry Ford II assumed the presidency.
The company inherited by Henry Ford II was not the same. Ford had fallen behind General Motor (GM) and Chrysler. Henry Ford II knew he had to regain terrain, so he contracted the Whiz Kids (a group of former US Army Air Force officers), and created a “sophisticated management system including accounting and financial controls” (Chapman, pp. 128). With the finance side in check, Ford gained increased its position, and became the number 2 car company in 1950.
Ford products were not fuel efficient, and when the gas prices rose in the 70s because of the OPEC embargo, Ford lost
Global Strategic Management
March 4, 2013
Ford Motor Company: Organization Profile
Ford Motor Company Staying “Ford Tough”
Henry Ford established the auto company in June 16, 1903. An engineer by formation, Henry had a vision of making vehicles that would change society. He wanted to offer an affordable product to the public, one that his own workers could buy. His vision took him to model T in 1908, and to improve the manufacturing process with the conveyor belt at Ford’s Highland plant. The manufacturing capabilities kept on improving and in 1917 he built the Rouge plant that put the whole operation, from the raw material, to the final product, under the same roof.
In 1915 Henry Ford’s son, Edsel Ford joined his father in the company. Edsel brought to the company the desire of making a product not only functional, but stylish and beautiful. Ford became entirely family owned in 1919 when Henry, his wife Clara, and Edsel bought the outstanding shares for $105,820,894 (Chapman, pp. 128) .The company would hold to this status until 1956 when the company would allow outsiders to buy shares. For many years the image of the company was the same as its leadership. Henry Ford passed the presidency to Edsel Ford in 1919. Henry Ford reassumed the leadership after the death of Edsel in 1943. After Henry Ford resigned, Henry Ford II assumed the presidency.
The company inherited by Henry Ford II was not the same. Ford had fallen behind General Motor (GM) and Chrysler. Henry Ford II knew he had to regain terrain, so he contracted the Whiz Kids (a group of former US Army Air Force officers), and created a “sophisticated management system including accounting and financial controls” (Chapman, pp. 128). With the finance side in check, Ford gained increased its position, and became the number 2 car company in 1950.
Ford products were not fuel efficient, and when the gas prices rose in the 70s because of the OPEC embargo, Ford lost