Ford Motors Business Model - Essay Example

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The essay "Ford Motors Business Model" analyzes the company "Ford motors" which has made a good progress in the selling of the brands since it is able to advertise the goods all over the world. This has made the net income for the company to increase from $6561 to $7155 the last year 2013…
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Ford Motors Business Model
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 Ford Motors Business Model Ford motors is an American company that is multinational that manufactures motors and its headquarters is at Dearborn in Michigan. The industry was started by Henry Ford the t was officially created and released in the year 1903 (Ford, 2010). The company is able to manufacture latest motors like Ford F-150, Ford focus, Ford Mustang, Ford Fiesta, Ford Explorer and many other motor brands. The main objective of the company is to ensure that it produces one of the latest motors that have latest technologies and experience. They motors are also flexible and efficient when it comes to road traveling and transportation.
With the company’s target, it is the world’s fifth largest motor industry in the world. The company is also able to sell Lincoln vehicles creating the power to close down its competitors like Volvo, Jaguar and Land Rover. In its business the company is able to establish a one model structure that plans to sell numerous brands in future. In every year the company is improving creating a good financial report. The revenues of Ford motors have increased from $126.6B to $139.4B. The percentage of the company’s sales have been reduced accordingly in respect to the income tax expenses for the company. The company was able to reduce the percentage to -0.11% and it made the company to have a bottom line of growth. With the four year trend, the revenues have been increasing from 119280, 128168, 126567, and 139369 for the years 2010, 2011,2012 and 2013 respectively (Peterson & Fabozzi, 2012). The source of the revenues is realized from the operating expenses, selling of the general administrative zones and from the non recurring costs.
The fixed and variable costs for the company include the costs made from the goods for the company which entail an amount of $125,369 last year. Other fixed costs include the income tax expenses for the country that takes over $7200 a year. There are other extra expenses and items that also cost around $7155 year (Crumm,2010). All this costs are financed from the total revenues earned by the company. It also entails all the benefits the company gets from customers as bonuses. It is to the advantage of the company that the company is able to sell quite a good number of new brands. Other premium customers are also able to award the company for the good work done.
In order to have success and progress for the company, there is a calculation of the total sales realized from the brand cars. The company is able to sell over 500 brands of Ford motors within a day. The company is also able to sell motor parts including the gas engines and motor craft (Reid, 2010). It is also interesting that the company has made a good progress in the selling of the brands since it is able to advertise the goods all over the world. . This has made the net income for the company to increase from $6561 to $7155 last year 2013. The company is an industrial since it is able to meet its targets in the world of revolution. For the last two years there is an improvement of the sales that has made the company to be under top five in the whole world.

Ford, H. (2010). My life and work: An autobiography of Henry Ford. United States: Greenbook Publications.
Peterson, D. P., & Fabozzi, F. J. (2012). Analysis of financial statements.
Crumm, T. A. (2010). What is good for General Motors?: Solving America's industrial conundrum. New York: Algora Pub.
CNBC (Television network), Films for the Humanities & Sciences (Firm), & Films Media Group. (2010). Ford: Rebuilding an American Icon. New York, N.Y: Films Media Group
Reid, G. (2010). High-performance Ford engine parts interchange. North Branch, MN: CarTech. Read More
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