Henry FORD

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Henry FORD

  1. 1. Karen HowellsENGG 437: Entrepreneurship And LeadershipAssigment 1 : Entrepreneur Research Project Uğur UYANIK 283257 Computer Engineering
  2. 2.  Henry Ford (July 30, 1863 – April 7, 1947) was an American industrialist, the founder of the Ford Motor Company, and sponsor of the development of the assembly line technique of mass production. Although Ford did not invent the automobile, he developed and manufactured the first automobile that many middle class Americans could afford to buy. His introduction of the Model T automobile revolutionized transportation and American industry. As owner of the Ford Motor Company, he became one of the richest and best-known people in the world. He is credited with "Fordism": mass production of inexpensive goods coupled with high wages for workers. Ford had a global vision, with consumerism as the key to peace. His intense commitment to systematically lowering costs resulted in many technical and business innovations, including a franchise system that put dealerships throughout most of North America and in major cities on six continents. Ford left most of his vast wealth to the Ford Foundation but arranged for his family to control the company permanently. Ford was also widely known for his pacifism during the first years of World War I, but also for being the publisher of antisemitic texts such as the book The International Jew.
  3. 3.  Ford was born July 30, 1863, on a farm in Greenfield Township (near Detroit, Michigan).His father, William Ford (1826–1905), was born in County Cork, Ireland, of a family originally from western England, who were among migrants to Ireland as the English created plantations.[citation needed] His mother, Mary Litogot Ford (1839– 1876), was born in Michigan; she was the youngest child of Belgian immigrants; her parents died when Mary was a child and she was adopted by neighbors, the OHerns. Henry Fords siblings include Margaret Ford (1867–1938); Jane Ford (c. 1868–1945); William Ford (1871–1917) and Robert Ford (1873–1934). His father gave him a pocket watch in his early teens. At 15, Ford dismantled and reassembled the timepieces of friends and neighbors dozens of times, gaining the reputation of a watch repairman.At twenty, Ford walked four miles to their Episcopal church every Sunday. Ford was devastated when his mother died in 1876. His father expected him to eventually take over the family farm, but he despised farm work. He later wrote, "I never had any particular love for the farm—it was the mother on the farm I loved. In 1879, he left home to work as an apprentice machinist in the city of Detroit, first with James F. Flower & Bros., and later with the Detroit Dry Dock Co. In 1882, he returned to Dearborn to work on the family farm, where he became adept at operating the Westinghouse portable steam engine. He was later hired by Westinghouse company to service their steam engines. During this period Ford also studied bookkeeping at Goldsmith, Bryant & Stratton Business College in Detroit.
  4. 4.  Ford married Clara Ala Bryant (1866–1950) in 1888 and supported himself by farming and running a sawmill.[7] They had one child: Edsel Ford (1893–1943).
  5. 5.  In 1891, Ford became an engineer with the Edison Illuminating Company. After his promotion to Chief Engineer in 1893, he had enough time and money to devote attention to his personal experiments on gasoline engines. These experiments culminated in 1896 with the completion of a self-propelled vehicle which he named the Ford Quadricycle. He test-drove it on June 4. After various test-drives, Ford brainstormed ways to improve the Quadricycle. Also in 1896, Ford attended a meeting of Edison executives, where he was introduced to Thomas Edison. Edison approved of Fords automobile experimentation. Encouraged by Edison, Ford designed and built a second vehicle, completing it in 1898.Backed by the capital of Detroit lumber baron William H. Murphy, Ford resigned from the Edison Company and founded the Detroit Automobile Company on August 5, 1899.However, the automobiles produced were of a lower quality and higher price than Ford wanted. Ultimately, the company was not successful and was dissolved in January 1901. With the help of C. Harold Wills, Ford designed, built, and successfully raced a 26- horsepower automobile in October 1901. With this success, Murphy and other stockholders in the Detroit Automobile Company formed the Henry Ford Company on November 30, 1901, with Ford as chief engineer. In 1902, Murphy brought in Henry M. Leland as a consultant; Ford, in response, left the company bearing his name. With Ford gone, Murphy renamed the company the Cadillac Automobile Company. Teaming up with former racing cyclist Tom Cooper, Ford also produced the 80+ horsepower racer "999" which Barney Oldfield was to drive to victory in a race in October 1902. Ford received the backing of an old acquaintance, Alexander Y. Malcomson, a Detroit-area coal dealer.They formed a partnership, "Ford & Malcomson, Ltd." to manufacture automobiles. Ford went to work designing an inexpensive automobile, and the duo leased a factory and contracted with a machine shop owned by John and Horace E. Dodge to supply over $160,000 in parts. Sales were slow, and a crisis arose when the Dodge brothers demanded payment for their first shipment.
  6. 6.  In response, Malcomson brought in another group of investors and convinced the Dodge Brothers to accept a portion of the new company. Ford & Malcomson was reincorporated as the Ford Motor Company on June 16, 1903, with $28,000 capital. The original investors included Ford and Malcomson, the Dodge brothers, Malcomsons uncle John S. Gray, Malcolmsons secretary James Couzens, and two of Malcomsons lawyers, John W. Anderson and Horace Rackham. Ford then demonstrated a newly-designed car on the ice of Lake St. Clair, driving 1 mile (1.6 km) in 39.4 seconds and setting a new land speed record at 91.3 miles per hour (147.0 km/h). Convinced by this success, the race driver Barney Oldfield, who namedHenry Ford with Thomas this new Ford model "999" in honor of the fastestEdison and Harvey locomotive of the day, took the car around theFirestone. Ft. Myers,Florida, February 11, 1929. country, making the Ford brand known throughout the United States. Ford also was one of the early backers of the Indianapolis 500
  7. 7.  By 1926, flagging sales of the Model T finally convinced Henry to make a new model. He pursued the project with a great deal of technical expertise in design of the engine, chassis, and other mechanical necessities, while leaving the body design to his son. Edsel also managed to prevail over his fathers initial objections in the inclusion of a sliding-shift transmission.[18] The result was the successful Ford Model A, introduced in December 1927 and produced through 1931, with a total output of more than 4 million. Subsequently, the Ford company adopted an annual model change system similar to that recently pioneered by its competitor General Motors (and still in use by automakers today). Not until the 1930s did Ford overcome his objection to finance companies, and the Ford-owned Universal Credit Corporation became a major car-financing operation.[19] Ford did not believe in accountants; he amassed one of the worlds largest fortunes without ever having his company audited under his administration.
  8. 8.  Ford was a pioneer of "welfare capitalism", designed to improve the lot of his workers and especially to reduce the heavy turnover that had many departments hiring 300 men per year to fill 100 slots. Efficiency meant hiring and keeping the best workers. Ford astonished the world in 1914 by offering a $5 per day wage ($120 today), which more than doubled the rate of most of his workers. A Cleveland, Ohio newspaper editorialized that the announcement "shot like a blinding rocket through the dark clouds of the present industrial depression.‖The move proved extremely profitable; instead of constant turnover of employees, the best mechanics in Detroit flocked to Ford, bringing their human capital and expertise, raising productivity, and lowering training costs.Ford announced his $5-per-day program on January 5, 1914, raising the minimum daily pay from $2.34 to $5 for qualifying workers. It also set a new, reduced workweek, although the details vary in different accounts. Ford and Crowther in 1922 described it as six 8-hour days, giving a 48-hour week,while in 1926 they described it as five 8-hour days, giving a 40-hour week.(Apparently the program started with Saturdays as workdays and sometime later it was changed to a day off.) Detroit was already a high-wage city, but competitors were forced to raise wages or lose their best workers. Fords policy proved, however, that paying people more would enable Ford workers to afford the cars they were producing and be good for the economy. Ford explained the policy as profit-sharing rather than wages.It may have been Couzens who convinced Ford to adopt the $5 day.
  9. 9.  The profit-sharing was offered to employees who had worked at the company for six months or more, and, importantly, conducted their lives in a manner of which Fords "Social Department" approved. They frowned on heavy drinking, gambling, and what might today be called "deadbeat dads". The Social Department used 50 investigators, plus support staff, to maintain employee standards; a large percentage of workers were able to qualify for this "profit-sharing. Fords incursion into his employees private lives was highly controversial, and he soon backed off from the most intrusive aspects. By the time he wrote his 1922 memoir, he spoke of the Social Department and of the private conditions for profit-sharing in the past tense, and admitted that "paternalism has no place in industry. Welfare work that consists in prying into employees private concerns is out of date. Men need counsel and men need help, oftentimes special help; and all this ought to be rendered for decencys sake. But the broad workable plan of investment and participation will do more to solidify industry and strengthen organization than will any social work on the outside. Without changing the principle we have changed the method of payment
  10. 10.  Ford was adamantly against labor unions. He explained his views on unions in Chapter 18 of My Life and Work.[31] He thought they were too heavily influenced by some leaders who, despite their ostensible good motives, would end up doing more harm than good for workers. Most wanted to restrict productivity as a means to foster employment, but Ford saw this as self-defeating because, in his view, productivity was necessary for any economic prosperity to exist. He believed that productivity gains that obviated certain jobs would nevertheless stimulate the larger economy and thus grow new jobs elsewhere, whether within the same corporation or in others. Ford also believed that union leaders had a perverse incentive to foment perpetual socio-economic crisis as a way to maintain their own power. Meanwhile, he believed that smart managers had an incentive to do right by their workers, because doing so would maximize their own profits. (Ford did acknowledge, however, that many managers were basically too bad at managing to understand this fact.) But Ford believed that eventually, if good managers such as he could fend off the attacks of misguided people from both left and right (i.e., both socialists and bad-manager reactionaries), the good managers would create a socio- economic system wherein neither bad management nor bad unions could find enough support to continue existing. To forestall union activity, Ford promoted Harry Bennett, a former Navy boxer, to head the Service Department. Bennett employed various intimidation tactics to squash union organizing.[32] The most famous incident, on May 26, 1937, involved Bennetts security men beating with clubs UAW representatives, including Walter Reuther.[33] While the Bennetts men were beating the UAW representatives, the supervising police chief on the scene was Carl Brooks, an alumnus of Bennett‘s Service Department, and [Brooks] "did not give orders to intervene."[34] The incident became known as The Battle of the Overpass.
  11. 11.  In the late 1930s and early 1940s, Edsel (who was president of the company) thought Ford had to come to some sort of collective bargaining agreement with the unions because the violence, work disruptions, and bitter stalemates could not go on forever. But Henry (who still had the final veto in the company on a de facto basis even if not an official one) refused to cooperate. For several years, he kept Bennett in charge of talking to the unions that were trying to organize the Ford Motor Company. Sorensens memoirmakes clear that Henrys purpose in putting Bennett in charge was to make sure no agreements were eveThe Ford Motor Company was the last Detroit automaker to recognize the United Auto Workers union (UAW). A sit-down strike by the UAW union in April 1941 closed the River Rouge Plant. Sorensen recounted that a distraught Henry Ford was very close to following through with a threat to break up the company rather than cooperate but that his wife Clara told him she would leave him if he destroyed the family business. She wanted to see their son and grandsons lead it into the future.Henry complied with his wifes ultimatum. Overnight, the Ford Motor Co. went from the most stubborn holdout among automakers to the one with the most favorable UAW contract terms.[citation needed] The contract was signed in June 1941. r reached.
  12. 12.  Fords philosophy was one of economic independence for the United States. His River Rouge Plant became the worlds largest industrial complex, pursuing vertical integration to such an extent that it could produce its own steel. Fords goal was to produce a vehicle from scratch without reliance on foreign trade. He believed in the global expansion of his company. He believed that international trade and cooperation led to international peace, and he used the assembly line process and production of the Model T to demonstrate He opened Ford assembly plants in Britain and Canada in 1911, and soon became the biggest automotive producer in those countries. In 1912, Ford cooperated with Giovanni Agnelli of Fiat to launch the first Italian automotive assembly plants. The first plants in Germany were built in the 1920s with the encouragement of Herbert Hoover and the Commerce Department, which agreed with Fords theory that international trade was essential to world peace.In the 1920s, Ford also opened plants in Australia, India, and France, and by 1929, he had successful dealerships on six continents. Ford experimented with a commercial rubber plantation in the Amazon jungle called Fordlândia; it was one of his few failures. In 1929, Ford accepted Joseph Stalins invitation to build a model plant (NNAZ, today GAZ) at Gorky, a city now known under its historical name Nizhny Novgorod. He sent American engineers and technicians to the Soviet Union to help set it up, including future labor leader Walter Reuthert
  13. 13.  The Ford Motor Company had the policy of doing business in any nation where the United States had diplomatic relations. It set up numerous subsidiaries that sold cars and trucks and sometimes assembled them: Ford of Australia Ford of Britain Ford of Argentina Ford of Brazil Ford of Canada Ford of Europe Ford India Ford South Africa Ford Mexico Ford Philippines
  14. 14.  By 1932, Ford was manufacturing one third of all the world‘s automobiles. Fords image transfixed Europeans, especially the Germans, arousing the "fear of some, the infatuation of others, and the fascination among all". Germans who discussed "Fordism" often believed that it represented something quintessentially American. They saw the size, tempo, standardization, and philosophy of production demonstrated at the Ford Works as a national service—an "American thing" that represented the culture of United States. Both supporters and critics insisted that Fordism epitomized American capitalist development, and that the auto industry was the key to understanding economic and social relations in the United States. As one German explained, "Automobiles have so completely changed the Americans mode of life that today one can hardly imagine being without a car. It is difficult to remember what life was like before Mr. Ford began preaching his doctrine of salvation―. For many Germans, Ford embodied the essence of successful Americanism. In My Life and Work, Ford predicted that if greed, racism, and short- sightedness could be overcome, then economic and technological development throughout the world would progress to the point that international trade would no longer be based on (what today would be called) colonial or neocolonial models and would truly benefit all peoples. His ideas in this passage were vague, but they were idealistic
  15. 15.  Ford maintained an interest in auto racing from 1901 to 1913 and began his involvement in the sport as both a builder and a driver, later turning the wheel over to hired drivers. He entered stripped-down Model Ts in races, finishing first (although later disqualified) in an "ocean-to-ocean" (across the United States) race in 1909, and setting a one-mile (1.6 km) oval speed record at Detroit Fairgrounds in 1911 with driver Frank Kulick. In 1913, Ford attempted to enter a reworked Model T in the Indianapolis 500 but was told rules required the addition of another 1,000 pounds (450 kg) to the car before it could qualify. Ford dropped out of the race and soon thereafter dropped out of racing permanently, citing dissatisfaction with the sports rules, demands on his time by the booming production of the Model Ts, and his low opinion of racing as a worthwhile activity. In My Life and Work Ford speaks (briefly) of racing in a rather dismissive tone, as something that is not at all a good measure of automobiles in general. He describes himself as someone who raced only because in the 1890s through 1910s, one had to race because prevailing ignorance held that racing was the way to prove the worth of an automobile. Ford did not agree. But he was determined that as long as this was the definition of success (flawed though the definition was), then his cars would be the best that there were at racing.Throughout the book, he continually returns to ideals such as transportation, production efficiency, affordability, reliability, fuel efficiency, economic prosperity, and the automation of drudgery in farming and industry, but rarely mentions, and rather belittles, the idea of merely going fast from point A to point B. Nevertheless, Ford did make quite an impact on auto racing during his racing years, and he was inducted into the Motorsports Hall of Fame of America in 1996.
  16. 16.  When Edsel, president of Ford Motor Company, died of cancer in May 1943, the elderly and ailing Henry Ford decided to assume the presidency. By this point in his life, he had had several cardiovascular events (variously cited as heart attack or stroke) and was mentally inconsistent, suspicious, and generally no longer fit for such a job. Most of the directors did not want to see him as president. But for the previous 20 years, though he had long been without any official executive title, he had always had de facto control over the company; the board and the management had never seriously defied him, and this moment was not different. The directors elected him,and he served until the end of the war. During this period the company began to decline, losing more than $10 million a month ($134,310,000 a month today). The administration of President Franklin Roosevelt had been considering a government takeover of the company in order to ensure continued war production,but the idea never progressed. In ill health, Ford ceded the presidency to his grandson Henry Ford II in September 1945 and went into retirement. He died in 1947 of a cerebral hemorrhage at age 83 in Fair Lane, his Dearborn estate. A public viewing was held at Greenfield Village where up to 5,000 people per hour filed past the casket. Funeral services were held in Detroits Cathedral Church of St. Paul and he was buried in the Ford Cemetery in Detroit.
  17. 17.  In Aldous Huxleys Brave New World (1932), society is organized on Fordist lines and the years are dated A.F. or Anno Ford (In the Year of our Ford) - a reference to A.D., Anno Domini ("in the year of our Lord"); and the expression My Ford is used instead of My Lord.‗ Upton Sinclair created a fictional description of Ford in the 1937 novel The Flivver King. Symphonic composer Ferde Grofe composed a tone poem in Henry Fords honor (1938). Ford is treated as a character in several historical novels, notably E. L. Doctorows Ragtime (1975), and Richard Powers novel Three Farmers on the Way to a Dance (1985). Ford, his family, and his company were the subjects of a 1986 biography by Robert Lacey entitled Ford: The Men and the Machine. The book was adapted in 1987 into a film starring Cliff Robertson and Michael Ironside. In the 2005 alternative history novel The Plot Against America, Philip Roth features Ford as Secretary of Interior in a fictional Charles Lindbergh presidential administration. The British author Douglas Galbraith uses the event of the Ford Peace Ship as the center of his novel King Henry (2007). Ford appears as a Great Builder in the 2008 strategy video game Civilization Revolution.
  18. 18.  In December 1999, Ford was among 18 included in Gallups List of Widely Admired People of the 20th Century, from a poll conducted of the American people. In 1928, Ford was awarded the Franklin Institutes Elliott Cresson Medal. In 1938, Ford was awarded Nazi Germanys Grand Cross of the German Eagle, a medal given to foreigners sympathetic to Nazism.[102] The United States Postal Service honored Ford with a Prominent Americans series (1965–1978) 12¢ postage stamp.
  19. 19.  http://en.wikipedia.org/wiki/Henry_Ford http://entrepreneurs.about.com/od/famouse ntrepreneurs/p/henryford.htm http://www.fordfoundation.org/about- us/history

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