Ford Motor Company Goals, Products and Services - Essay Example

Ford Company Ford Motor Company Background information History The Ford Company is an automotive industry situated in Dearborn, Michigan. The company according to Wilkins & Hill (2011; pp.107) began its operations in June 16, 1903 through its founder Henry Ford. The history of Ford Company goes back to 1901 when Henry Ford made his first attempt of making a car and gives it his name. The Company’s first name was the Henry Ford Company but later renamed to Cadillac Motor Company after Ford got the rights to his name and withdrew the rights (Winnewisser, 2005; pp.12). Twelve investors joined hands in 1903 and operations kicked off officially. During the early stages according to Weiss (2003; pp.104) the Company produced few cars from its factory located in Detroit. Most of the employees were contractors, and each car was under two men. During the great depression, Ford Company fought all odds and emerged as the only Company which survived the harsh economic times. In 1908, there was the introduction of the first engine with a cylinder head which was removable. This invention accelerated the assembling of a Model A which was the first car which had a safety glass. The first low priced V8 engine began its operations in 1932, leading to the offering of the Lifeguard safety package. In the same year, the company introduced the child-roof locks for the doors and the standard deep-dish steering wheel. In the 1980’s in regard to the study work of Tiffany & Peterson, (2005; pp.89) there was the acquisition of the Jaguar Cars and Aston Martin by Ford Company so as to increase its level of competition. At the onset of the 21st century, the Companys operations were low on corporate bonds resulting from high U.S health care costs for the work force which was aging, eroding market share, soaring gasoline prices and much dependence on the SUV sales which were declining. After coming up with a way forward, there was the introduction of the Crossover SUV’s and developed the Ford Escape Hybrid SUV for the hybrid electric power train technologies. In 2001 according to Smith and Carl, (2007; pp.101) the company appointed Bill Ford as the chief executive officer and later appointed Alan Mulally as the president. In 2006, the company was able to raise its level of borrowing to 25 billion dollars and thus securing the credit line through the corporate assets. Currently, the Ford Company upgraded its bonds from junk to investment grade leading to lasting improvements and citing sustainable as seen in the research work of Shurtleff & Aoyagi (2011; pp.65). Company goals At the inception of the Ford Company, it was necessary to develop a unique product which favored all clients from all walks of life (Pride, Hughes & Kapoor, 2012; pp.100). The company has a mission and vision statement to help in creating enthusiasm in its workers to achieve much more. The vision statement is to create an original value, delight and excite the customers through automotive products, which are the best. The Ford Company further stipulates its goals through the mission statement which dictates that, the company communicates with buyers so as to deliver automotive products, which are insightful, and offer services exceeding expectations of the customer with passion, speed and pride (Plunkett, 2000; pp.87). Products and services Considering the 2012 listing of company assets and services as seen in the report by Paul, (2009; pp.54) Ford Company sells a wide range of automotives which lie under the Ford marquee worldwide. Additionally, the Company has a wide range of luxury automobiles under the Lincoln marquee which is in the United States. During the history of the Company, there have been numerous sales in vehicles, in other marquees. Some of the brands the Company has come up with according to Olson (2006; pp.109) include the Mercury brand introduced in 1939 which until 2011 was the best selling but underwent discontinuation as a result of poor sales. The Edsel brand introduced in 1958 was an enormous success but due to changes in technology and changes in customer preference, the brand underwent discontinuation as a result of poor sales. The Merkur brand introduced in the United States in 1985 from the Ford of Europe was also an able product until its discontinuation in 1989 (Musolf, 2009; pp.24). The Company was able to acquire the British sports car manufacturer dealing with the Aston Martin and sold it later in 2007, but according to Kreipke, (2003; pp.68), it was able to retain a small minority stake. After the sale, the company acquired the Volvo Cars of Sweden later selling it on a profit in 2010. The company holds a small no-controlling interest in the Mazda automobile company of Japan. Ford and Mazda have remained paramount partners by undertaking joint ventures and exchanging technological information. Some of the products that the two Companies have a joint venture include the American joint venture plant in located in Michigan (Hitt, Ireland & Hoskisson, 2009; pp.8). Having held the Jaguar and Land Rover companies for a long time, the Company sold the brand and acquired the Tata motors company of India in 2008. Apart from the small vehicles the other products from the Ford Company include trucks and buses whose sales are global. Some of the truck brands from Ford motors are the Sterling and the Transcontinental (Happian-Smith, 2001; pp.78). Ford since 1980s has been producing complete buses, but after low demands in the products, they have been second stage manufacturers. Some of the brands in are the E-Series and the F-650 in use mostly in the United States by small schools. Apart from the automobile products, the company also provides a variety of services to its consumers. Some of Services include financial services offered through the Ford Motor Credit Company. The credit company by Ford Company ensures that customers who do not have the cash to purchase their products receive credit services and be able to acquire their products according to Greenleaf, (2011; pp.89). The Company also has automotive components from the FoMoCo parts division which specializes in the sale of aftermarket parts under the brand name of Motor craft. The company in regard to the study works of Gitman & Mcdaniel, (2009; pp.78) has also come up with stock racing cars, Formula One, sports cars, Touring cars and Rally cars which get highly demanded due to their efficiency and high performance (Dickie, 2006; pp.90). The other services that the Company has include flexible fuel vehicles, electric cars, which represent, a substantial portion of the Companys lineup and the hydrogen-fueled internal combustion engine. Financial plan and sale Since 2010, Ford Company has been earning an estimated net profit of 6.6 billion dollars and its debt has gone down by 20 billion dollars and hence lowering interest payments by I billion dollars after the profit boost from the previous financial year. Considering the sales in the USA, the F-Series trucks have been the best-selling vehicles at 528,349 trucks annually, which was a 27.7 percent increase over the previous financial year (Carey, 2004; pp.67). Most of the profits arise due to the sale of Ford trucks; the Ford realignment has also played a considerable role since it included the sale of its wholly owned subsidiary to a private equity group earning the company a cash and debt acquisition of 15 billion dollars. In a period of two years according to Bryan, (2007; pp. 67) the company has had an annual sale of 4.6 million cars and light trucks and the sale has been increasing over the years at a 17 percent annual increase. The increase in sales has been due to the return of commercial customers who seized to buy Ford products since 2009 as a result of the recession. Sales to individual dealers and individual customers have shot up by 13 percent while the fleet sale has gone up by 32 percent over the years (Banham & Newman, 2002; pp.35). During the last financial reading, there was a report that Fleet sales account for 39 percent of the sales made on Chrysler and reported that 31 percent was from GM. Conclusion From reading, it is clear that Ford Motors has undergone transition to cut a notch in the automotive industry and is rising to become one of the most demanded motor vehicle manufacturers in the world. References Banham, R., & Newman, P. (2002). The Ford Century: Ford Motor Company and the innovations that shaped the world. New York, Workman. Bryan, F. R. (2007). Beyond the Model T: the other ventures of Henry Ford. Detroit, Wayne State Univ. Press. Carey, H., Jr. (2004). Company of heroes: my life as an actor in the John Ford Stock Company. Metuchen, N.J., Scarecrow. Dickie, R. B. (2006). Financial statement analysis and business valuation for the practical lawyer. Chicago, IL, ABA Section of Business Law, American Bar Association. Gitman, L. J., & Mcdaniel, C. D. (2009). The future of business: the essentials. Mason, OH, South-Western Cenage Learning. Greenleaf, W. (2011). Monopoly on wheels: Henry Ford and the Selden automobile patent. Detroit, Mich, Wayne State University Press. Happian-Smith, J. (2001). An introduction to modern vehicle design. Oxford [u.a.], Butterworth-Heinemann. . Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2009). Strategic management: competitiveness and globalization : cases. Mason, OH, South-Western Cengage Learning. Kreipke, R. C. (2003). Ford Motor Company, the first 100 years: a chronological picture history of Ford Motor Company over the first century. Paducah, KY, Turner Pub. Co. Musolf, N. (2009). The story of Ford. Mankato, MN, Creative Education. Olson, R. (2006). Ford in miniature. Dorchester, Veloce. Paul, J. (2009). International business. New Delhi, PHI Learning Private Ltd. Plunkett, J. W. (2000). Plunketts engineering and research industry almanac. Houston, Tex, Plunkett Research, Ltd. Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2012). Business. Mason, OH, South-Western Cengage Learning. Shurtleff, W., & Aoyagi, A. (2011). Henry Ford and his researchers history of their work with soybeans, soyfoods and chemurgy (1928-2011) : extensively annotated bibliography and sourcebook. Lafayette, CA, Soyinfo Center. Smith, Carl G. (2007). Ford, Regaining Their Competitive Edge:. Gardners Books. Tiffany, P., & Peterson, S. (2005). Business plans for dummies. Hoboken, NJ: Wiley Pub. Weiss, H. E. (2003). Chrysler, Ford, Durant, and Sloan: founding giants of the American automotive industry. Jefferson, N.C.[u.a.], McFarland. Wilkins, M., & Hill, F. E. (2011). American business abroad: Ford on six continents. Cambridge, Cambridge University Press. Winnewisser, P. (2005). The legendary Model A Ford: the ultimate history of one of Americas great automobiles. Iola: WI, Krause Publications. Read More