StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The Rivalry Between Ford Motor Company and General Motors - Essay Example

Cite this document
Summary
This essay "The Rivalry Between Ford Motor Company and General Motors" focuses on the rivalry between GM and Ford that has been more than 100 years old. In recent years, Ford has increased its sales and had been successful in increasing its market share with record speed. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.7% of users find it useful
The Rivalry Between Ford Motor Company and General Motors
Read Text Preview

Extract of sample "The Rivalry Between Ford Motor Company and General Motors"

Download file to see previous pages

He announced the plan with the name of “One Ford” which gave the company an entirely new strategy for entering into the global market. The management of GM is striving hard too, to remove its weaknesses but the pace at which Ford is moving will increase its market share and sales to the new level by the time GM will look up. It is analyzed that if Ford keeps moving at the same pace, it will become the best-selling automaker in the United States, taking the place of GM (Kenwell, 2013). Liquidity ratios measure the ability of the company to pay off its short-term debts by utilizing its current assets.

The current ratio and acid test ratios are important liquidity ratios. The current ratio determines the ability of the current resources of the company to meet its liability, and the acid test ratio determines the ability of a business to pay its short-term obligations by using its most liquid assets. The current ratio of Ford was 0.81 in 2013 but declined to 0.69 in 2014. Although the ratio of GM declined too from 1.31 in 2013 to 1.27 in 2014, it was still higher than GM, and the decline was insignificant as compared to its competitor.

However, the acid test ratio of Ford was higher than GM i.e. 0.5 in 2014 as compared to 0.27 of GM. It indicates that although the current assets of the GM are higher Ford has the most liquid assets that make it more capable of paying off its current obligations. The reason behind the lower quick ratio of GM is its high inventory. While on the other hand, Ford is applying six sigma and just-in-time inventory techniques which keep its inventory low and quick assets higher in percentage. Receivable turnover measures the times the company collects its debtors in a given period.

The receivable turnover of Ford was 230 times in 2014 which was significantly higher than 17 times of GM in the same year. Although the receivable turnover of Ford declined in 2014 as compared to 2013 it was a huge difference from GM.

...Download file to see next pages Read More
Tags
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Application Report Ford Motor Company (stock symbol: F) to the Essay”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1695142-application-report-ford-motor-company-stock-symbol-f-to-the-finances-of-general-motors-stock-symbol-gm
(Application Report Ford Motor Company (stock Symbol: F) to the Essay)
https://studentshare.org/finance-accounting/1695142-application-report-ford-motor-company-stock-symbol-f-to-the-finances-of-general-motors-stock-symbol-gm.
“Application Report Ford Motor Company (stock Symbol: F) to the Essay”, n.d. https://studentshare.org/finance-accounting/1695142-application-report-ford-motor-company-stock-symbol-f-to-the-finances-of-general-motors-stock-symbol-gm.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Rivalry Between Ford Motor Company and General Motors

Managing Organizational Change: Hyundai and General Motors Company Analysis

The paper "Managing Organizational Change: Hyundai and general motors Company Analysis" discusses that with the economy recovering, there is a need for General Motors to redeem itself to its former glory, and an even greater need to lower the debt levels in the company.... Since the last great recession hit, general motors, one of the largest automobile companies in the US has faced quite a number of challenges in the market such as demand for low-cost vehicles and more fuel-efficient vehicles that cut costs....
25 Pages (6250 words) Research Paper

Toyota Motor Corporation

Before 1995, the company has a full range of products ranging from Chevrolet which is offered to an entry-level buyer who is more concerned on a more practical and economical vehicle to the upscale Cadillac which is targeted to the elite market as it is regarded as the "standard of luxury (general motors 2006).... This strategy leads to cannibalization in the market share of GM as each division competes with each other (general motors 2006).... External Factors Currently, general motors Corporation (GM) leads the automotive industry with total revenue of US$192....
5 Pages (1250 words) Case Study

Competitive Analysis of General Motors

The organization selected here is general motors.... Here, automobile industry in the United State is studied by focusing on the company general motors.... The crisis not only affected the business of general motors, but also it affected the business of other automobile companies in /the United States and other parts of the world.... eneral motors held the top position among the car industry of the world for a long period.... Even Ford motors (Ford) and Chrysler, the other carmakers from Detroit, have been losing their market shares in recent times....
15 Pages (3750 words) Case Study

Strategies of General Motors and Toyota Motor Corporation

This paper "Strategies of general motors and Toyota Motor Corporation" focuses on the global car industry is becoming a more competitive market as players continue to improve their operations in order to battle for larger shares.... urrently, general motors Corporation (GM) leads the automotive industry with total revenue of US$192.... Before 1995, the company has a full range of products ranging from Chevrolet which is offered to an entry-level buyer who is more concerned on a more practical and economical vehicle to the upscale Cadillac which is targeted to the elite market as it is regarded as the "standard of luxury (general motors 2006)....
5 Pages (1250 words) Case Study

Business Strategy Analysis for Ford Motor Company

t around 1903 when Henry Ford, an engineer who offered important chunks of his time experimenting with gasoline-powered vehicles, incorporated ford motor company with eleven other investors.... For decades, it remained to be the second largest automaker worldwide, only behind general motors (Freysennet, 1998).... ord motor company sprouted in the American.... Around 1908, Ford took control of the industry by introducing the Model T which raced The company is especially famous for its contribution of the assembly line, granting the mass production of automobiles by 1913 (ford motor, n....
8 Pages (2000 words) Essay

Strategic Transformation of Ford Motor Company

This assignment "Strategic Transformation of ford motor company" encompasses the idea of strategic management.... The paper intends to prepare a detailed critical analysis of ford motor company based on different strategies taken by it in recent 3-5 years.... The assessment will also encompass Porter's five forces analysis and Porter's generic strategies analysis in relation to Ford motors.... Ford motors is a leading global automaker company based in the US....
9 Pages (2250 words) Assignment

Ford and the World Automobile Industry in 2012

ford motor company is a fully-fledged automobile company that was formed in 1919 and manufactures different types of vehicles as well as automotive parts.... Ford actively competes for market share and dominance with other large automobile companies such as Chrysler group, general motors and Toyota. ... Between 1997 and 2010, The general motors Company and Audi Company produced new models of vehicles in USA, which attracted many customers (Tremblay, & Tremblay, 2012)....
5 Pages (1250 words) Case Study

The global automobile industry - an analysis of General Motors

Besides, the company conducts business with commercial fleet customers, governments, and leasing companies where it offers its general motors has survived major economic whirlwinds that have rocked the United States and the global automobile industry.... espite the good financial statistics that general motors Corporation has posted over the years, it is worth noting that the company has faced a number of challenges, considering the dynamic nature of the automobile industry (Fear, 2004)....
8 Pages (2000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us