The Ford Motor Company has had some rough patches just as any business did, does ,or would at any point in the company's life. In 1999 William clay ford jr. wanted the company but the current chairman didn’t want him to have the chair. When he gained the chairman position he wanted to change the vision
“Ford Motor Company." Gale Encyclopedia of U.S. Economic History. Ed. Thomas Carson and Mary Bonk. Vol. 1. Detroit: Gale, 1999. 331-333. Gale Virtual Reference Library. Web. 20 Feb. 2014.
When we think of the successes in the automotive industry Henry Ford comes to mind. Almost every automotive industry book highlights the positive impact Henry Ford had on automotive manufacturing and all label him as a visionary and ethical leader. Anyone striving to become a more influential leader need not look any further than Henry Ford for inspiration. His story highlights his strong self-beliefs, hardworking mentality and a visionary approach of what the automotive industry could be and he believed that vision was achieved through ethical leadership decision-making. While being a leader alone is a tough task in it’s own right, Henry Ford understood where his industry was at the current time, saw where he wanted it to be in the future and created specific, achievable goals and articulated it with great inspiration. In doing so, his vision became a reality.
Until recently, the Ford Motor Company has been one of the most dynastic of American enterprises, a factor which has both benefited the company and has brought it to the brink of disaster. Today Ford is the second largest manufacturer of automobiles and trucks in the world, and it’s operations are well diversified, both operationally and geographically. The company operates the worlds second largest finance company in the world, and is a major producer of tractors, glass and steel. It is most prominent in the US, but also has plants in Canada, Britain and Germany, and facilities in over 100 countries.
Ford Motor Company is one of the greatest and most successful automobile manufactures (Bryant University, 2004). It was founded in 1903 in Detroit, Michigan by Henry Ford, an innovative individual credited with the introduction of mass production through his assembly line. The Model A was the first car off its production line, and sold for $850. Its considerably low prices and stellar performance of its vehicles ensured that Ford made a steady progress into the global arena, expanding into European nations such as Germany, France and the United Kingdom. The company’s mission and vision revolves around the context of “One Ford”; that is, one team, one plan, one goal-whereby the overall vision is to deliver profitable growth for all (Ford, 2014). Its social responsibility statement is to create long-term value as a corporate citizen. The company believes that it is only as strong as the community in which it operates within (Ford, 2014).
The Sub-Prime Mortgage Crisis of 2008 has been the largest financial crisis to take place since the end of the Great Depression. It was the actions of individuals and companies that caused this crisis. For although it could have been adverted, too much money was being made by too many people in place of authority to think deeply on the situation. As such, by the time actions were taken to attempt to rectify the situation, it was already too late. Trillions of dollar of tax payers’ money was spent trying to repair the situation that was caused by the breakdown of ethics and accountability in the private sector. And despite the government’s actions to attempt to contain the crisis, hundreds of thousands lives were negatively affected before, during, and after this crisis.
Today the automobile industry is stronger than ever, selling millions of cars to eager consumers. Every year new models are released with newer features and technology to lure the purchaser. Every manufacturer today should thank Ford for what it has done in the past, whether it was the assembly line, interchangeable parts, strong quality of the Model T, it's undeniable what Ford has done for the industry, economy and transportation.
Dionne, E. J., Jr. "The Auto Industry Lives. Can We Admit That Government Intervention Worked?" Washington Post 2 Aug. 2010: n. pag. Print.
Today's automotive industry in very competitive. Ford has had to find ways to keep ahead of the following major companies: BANC ONE, Bank America, BMW, Budget Group, Chrysler, Daimler-Benz, Enterprise Rent-a-Car, General Motors, Honda, Hyundai, Isuzu, Mack Trucks, Mitsubishi, Nissan, Peugeot, Saab, Suzuki, Toyota, Volkswagen and many others. Ford has developed a number...
Johnson, C. E. (2012). Meeting the ethical challenges of leadership: casting light or shadows. (4th ed.). Thousand Oaks, CA: SAGE Publications, Inc.
Ethical leadership simply means the act of leading by knowing and doing what is right (Wise Geek, 2014). A leader that exhibit ethical leadership understands his or her core values, principles, and beliefs and live true to those values. An ethical leader serves as a mirror through which people view and perceive the organization they represent. Moral and ethical leaders serve as role models for others, who sets realistic, yet a high moral and ethical standards for others to follow and abide. This handbook will help managers to understand the importance and the principle of the moral and ethical leadership, the path to a better ethical decision making, and ways to create a moral and ethical organizational culture.
I first see signs of GM’s impending financial stress through financial information in 2005. Although revenues remained constant at 2005 compared with 2004, the expenses increased drastically and caused the net income to change from positive to negative. The stockholders’ equity decreased by 47% as well, and the cash flow from operations was a huge deficit. Those awful performances in finance and operation also imposed a significant negative influence on stock price of GM. In 2005, annual high, low and closing stock price all decreased by more than $10. These indicators demonstrated that GM faced severe financial difficulties. Sales could not cover the high expense, and the negative cash flow could not meet its obligations.
Achieving world class business performance is a major challenge in today’s society. Manufacturing companies continue to face increased competition and globalization from its competitors. (1, p. 148). The automotive industry is one of the most volatile manufacturing industries that we have, which was evident in the 2008 – 2010 automotive industry crisis. (2) This global financial downturn served notice to the American automotive manufactures to raise the bar, in order to achieve word class business performance. General Motors, one of the country’s largest automotive manufactures, had to receive a government bailout to survive. During this time many with the corporation asked themselves, if we were a world class business, would we be facing this pending crisis. The answer was a resounding “NO”. General Motors has come out of bankruptcy and is focused on being a world-class business organization.
Companies whose success and continuous operation prove vital to the economy and financial systems should receive auditor scrutiny and regulation oversight. It is clear that Lehman Brothers required oversight and possible prohibition of its liabilities financing practices using repo borrowing. Likewise, AIG deserved more review of its credit swap business practices. The negligence of these institutions cost the United States and foreign economies billions of dollars. The federal government chose not to intervene on Lehman Brothers’ behalf, for reasons that some say are inconsistent with other bailout decisions (Smith, 2011). However, the government did find that an AIG failure would constitute systemic risk and chose to rescue the insurance company. The government created incentives to increase depositor confidence by guaranteeing market-based fund-raising. The financial crisis of 2008 offered lessons learned to both government and banking