1. HENRY FORD
(1863-1947)
LECTURE
I. OBJECTIVES OF THE
Analysis of the environment
Overcoming difficulties
Passing on the benefits of cost reduction
Concern for employee and customers
Sharing of wealth
II. ENVIRONMENT
Cities were growing – Distance Increased
Incomes were Increasing
Excursion – Tourism
Urban Transport
Horse Driven Carts
Horse Driven Trams
Cars
III. CARS
Ten Thousand Manufacturers
Cars: Made to Order – Tailor Made
Assembly line
V. DETROIT AUTOMOBILE COMPANY 1899
11 Friends Contributed: $28000
Soon Went Bankrupt: Ford was continuously improving design
Model-T 1908
Price: $825
1909
$700
1910
$500
1911
$400
1913
$360
Relied on volume
Model T (1908): Price: $825
Model T (1909): Price: $700
Model T (1910): Price: $500
Model T (1911): Price: $400
Model T (1913): Price: $360
VI. FORD’S CONTRIBUTIONS
Revolution in Automobile Industry
Cost Reduction
High Wages for Workers $5 per day
Labour Philosophy: Welfare, Capitalism
Working Reduced from 9 to 8
Hiring and Retraining
5-day Work Week
Ford Foundation
VII.
FORD’S FAILURE
No change in Design

2. “Any customer can have a car painted any colour that he wants so long as it
is black.”
Competitors Entered
Numerous Design
Installment Selling
Sales Declined