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ENTREPRENEURSHIP PROFILE GROUP PROJECT REPORT Mark Stoiko The Entrepreneur

Background and Accomplishments Henry Ford, born in 1863 on a farm in Michigan, emerged as one of the most influential entrepreneurs of the 20th century. His modest origins did not hinder his spectacular rise in the business world. His trajectory began in engineering, where his fascination with machines laid the foundations for his entrepreneurial journey. Ford wasn't just an entrepreneur, he was a visionary. In 1903, Ford co-founded the Ford Motor Company, laying the foundations for what was to become a revolution not only in the automotive industry. His most emblematic achievement was the creation of the moving assembly line, an innovation that transformed automotive production. In 1908, the Ford Model T was introduced, marking the beginning of affordable mass production (accessible to the middle class). This emblematic model catapulted Ford to industrial renown and changed the landscape of mobility forever. Personality Assessment/ Social Competence Ford's personality was the driving force behind his entrepreneurship. His unshakeable determination and pragmatism were the driving forces behind his bold decisions. Ford was a man of action, a man of efficiency. His entrepreneurial vision crystallized with the assembly line, a strategy that accelerated production and lowered costs. This same determination was also a driving force for change. However, this determination also had its downside. His authoritarianism was evident in his fierce resistance to unionization, creating tensions within the company. His desire to maintain absolute control over his vision sometimes generated criticism and controversy. Socially, Ford was a direct and sometimes polarizing figure. His political views and anti-Semitism left a stain on his legacy. However, even with these controversial aspects, his impact on entrepreneurship cannot be denied. Ford's legacy in the entrepreneurial world goes beyond mass production. He showed that bold vision, combined with meticulous execution, can transform an entire industry. His ability to innovate and challenge the status quo is a crucial lesson for today's entrepreneurs. The lessons of his entrepreneurial journey endure, underscoring the importance of vision, innovation and resilience in business. Henry Ford was much more than a car manufacturer. He was a visionary entrepreneur, a pioneer of mass production, but also a man with contradictions. His legacy lives on in mass

production, modern mobility, and timeless entrepreneurial principles. His impact on entrepreneurship still resonates today, and his story offers valuable lessons for those seeking to follow in his footsteps. Contributing factors to Entrepreneurship The entrepreneurship of Henry Ford, founder of the Ford Motor Company, was the result of a number of factors that played a decisive role in the development of his entrepreneurial spirit and the realization of his innovative ideas. Some of these factors had a profound influence on his vision and his ability to transform the automotive industry. 1. Technical innovation and mass production Henry Ford revolutionized the automotive industry by introducing innovative mass- production methods. The assembly line concept, implemented in Ford's factories, dramatically reduced production costs and increased efficiency. This approach helped to make cars more affordable for the general public, transforming the automobile from a luxury product into a commodity accessible to as many people as possible. 2. Strategic vision and affordability One of the distinguishing features of Henry Ford's entrepreneurship was his strategic vision of democratizing the automobile. He had a deep conviction that cars should not be reserved for a financial elite, but should be available to the middle class. This bold vision not only opened up new markets but also helped transform society by enabling greater mobility. 3. Passion for Innovation and Continuous Improvement Henry Ford was driven by an unwavering passion for innovation and continuous improvement. His determination to push technological boundaries led to the production of more reliable, efficient, and economical cars. This relentless pursuit of excellence consolidated Ford's position as a pioneer in the automotive industry and established the company's reputation for innovation. 4. Enlightened Management and Visionary Leadership Henry Ford's visionary leadership was another key factor in his entrepreneurship. As an executive, he created a corporate culture focused on efficiency, innovation, and customer satisfaction. His management style fostered an environment conducive to experimentation and the adoption of new ideas, reinforcing Ford's position as an industry leader.

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Uncovering Opportunities and Risks State of the industry, at Start-up and Beyond Henry Ford's impact on the automotive industry and his timing in starting his business are remarkable aspects of industrial history. When Ford made his first attempt to enter the automobile business in 1899, by founding the Detroit Automobile Company, the industry was in its infancy. Automobiles were considered luxury items, accessible only to the wealthy. Ford's initial venture failed, leading to bankruptcy about a year and a half later. (Hayes, 2022) Despite this early setback, Ford's vision and persistence were undeterred. In 1903, he established the Ford Motor Company with the support of twelve investors. This was a time when the automobile industry was not yet mature, but it was ripe for innovation. A month after its establishment, the first Ford car, the Model A, was assembled. This period was marked by manual assembly and low production volumes. Ford, however, was dedicated to creating efficient, reliable, and most importantly, affordable automobiles. (“Henry Ford - Biography, Inventions & Assembly Line,” 2009) Ford's most significant contribution came with the introduction of the Model T in 1908. The Model T, or "Tin Lizzie," was an immediate success, reflecting the public's positive response to more affordable cars. To meet the overwhelming demand for the Model T, Ford introduced revolutionary mass-production techniques, including large production plants, standardized, interchangeable parts, and in 1913, the world’s first moving assembly line for cars. These innovations drastically reduced the time and cost of producing an automobile, making it affordable and accessible to the average person. This led to a boom in car ownership and increased mobility, transforming cars from luxury items for the wealthy into accessible modes of transportation for the masses. (“Henry Ford - Biography, Inventions & Assembly Line,” 2009) Ford's timing was pivotal. The early 20th century was a period of rapid industrialization and technological advancement. The public was eager for new, accessible technologies, and the automobile was a symbol of progress and modernity. By making cars affordable, Ford not only changed the automotive industry but also had a profound impact on society, influencing everything from urban planning to the daily lives of ordinary people. Comparing this to the present, the automotive industry continues to evolve with new technologies like electric vehicles and autonomous driving. The principles of mass production and efficiency introduced by Ford remain foundational, but the industry now also focuses on

sustainability, digitalization, and innovation in response to changing consumer preferences and environmental concerns. The industry today is characterized by a blend of legacy companies and new entrants, each vying to define the future of mobility in a world increasingly concerned with sustainability and technology. Risk Analysis Henry Ford, a pioneering entrepreneur in the automobile industry, faced several significant risks and challenges during his journey. His initial ventures encountered financial difficulties and production failures, with his first two automobile companies going bankrupt. Ford's first company, the Detroit Auto Company, raised $60,000 in share capital but went bankrupt without producing a commercially viable car. (Pragya, 2023) His meticulous approach to perfecting automobile design often conflicted with investors' expectations, leading to disagreements and the dissolution of early partnerships. (Pragya, 2023) Despite these setbacks, Ford's resilience, persistence, and innovative thinking were key to overcoming these challenges. He took risks, such as building and driving racing cars, to attract financial backers, which eventually led to the successful establishment of the Ford Motor Company. Ford's introduction of the assembly line revolutionized automobile manufacturing, demonstrating his focus on efficiency and innovation. (Pragya, 2023) In the 1920s, Ford faced a significant risk when he refused to update the Model T car, leading to a dramatic fall in sales. However, he managed to navigate this challenge by eventually introducing new car models, highlighting the importance of innovation and adaptation in business. (Pragya, 2023) Today, the automobile industry faces a different set of risks and challenges. Global disruptions such as the COVID-19 pandemic, geopolitical tensions, and shortages in microchips and labor have created uncertainty and affected the automotive supply chain. The industry is increasingly focusing on the development of electric vehicles (EVs), which involves significant investment in research and development. However, the high cost of EVs poses a challenge to mass adoption, and there are concerns about the rapid obsolescence of technology in EVs, potentially discouraging consumers. ( 2023 Outlook: Rising Trends in the Automotive Industry , 2023) Labor shortages and the shift in skill sets required for EV production are also significant challenges. The industry is likely to see increased development of robotics and automation to address these issues. Moreover, environmental, social, and governance (ESG) initiatives are putting new

pressures on automakers to monitor and self-audit their global supply chains. ( 2023 Outlook: Rising Trends in the Automotive Industry , 2023) Another emerging risk is related to cybersecurity and data privacy in connected vehicles. As cars become more interconnected and data-driven, they are vulnerable to cyber attacks, raising concerns over the security of driver data and vehicle systems. ( 2023 Outlook: Rising Trends in the Automotive Industry , 2023) In conclusion, while Henry Ford faced and overcame numerous challenges in his time, the present-day automobile industry is dealing with a different spectrum of risks, largely centered around technology, global supply chains, and environmental and social governance. The industry's ability to innovate and adapt, much like Ford did in his time, remains crucial to addressing these modern-day challenges. General Industry Analysis and Insights Including Present Day To understand the current state of the automotive industry it is important to know how it evolved over the years and changed. Compared to nowadays the industry was just upcoming when Henry Ford first came up with the T Ford model and the assembly method. The first automobile was invented in Germany and France in the late 1800s. However, the Americans quickly came to dominate the industry for the first half of the 20 th century as the market quickly became more saturated. ( https://www.history.com/topics/inventions/automobiles#section_1 ) Moreover, the European market did not have as much demand as the American market based on the prevailing lower living standards combined with less purchasing power. The smaller national markets and different restrictions in tax and tariff policies made it difficult for the automotive industry in Europe in the first years. In 1901 the German company Daimler Gesellschaft produced the first modern motor car and by 1909 Daimler produced just fewer than a thousand cars per year. The USA on the other side had a great demand because of the absence of tariff barriers between the states. Moreover, the per capita income was higher, and the vast land area created a higher need for transportation than in Europe. (Britannica) J. Frank and Charles Duryea (both bicycle mechanics) designed the first American automobile in 1983 and generated the first sale of an American-made gasoline car in 1896. However, their car was mainly built for racing. Their design however set the start of the American automotive industry, with 2,500 motor vehicles being sold in 1899 in the US and over 485 companies entering the business in the next decade. At that time the industry was dominated by small shops that produced handmade vehicles. (Britannica)

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In 1908 Henry Ford introduced the infamous Model T (which was a better version of the previous Ford Model N) and William Durant founded General Motors (GM). The Model T and the assembly method founded by Henry Ford revolutionized the automotive industry worldwide. His goal of “creating a car for the great multitude” led to the invention of mass production and lower prices in the automotive industry overall. ( https://www.history.com/topics/inventions/automobiles#section_1 ) Ford first designed the cars and then considered the problem of producing cheaply. That’s how he came up with the assembly line to produce cars in large quantities and at low-cost units. It includes a conveyor system and the limitation of each worker to a single repetitive task. This assembly line helped the price of the Model T to drop from $950 in 1909 to $290 in 1926. By this time Ford was already producing half of all the motor vehicles in the world. (Britannica) Furthermore, Ford offered installment plans making its automotive accessible to the middle class as well. His invention led to the extinction of nearly all small businesses in the industry as they could not compete with the low prices and the high entry barriers that come with mass production. (Britannica) This resulted in a shift in the industry with mainly large firms surviving. At the end of World War I (WWI), Ford was the colossus in the industry with branch plants throughout the world and GM emerged as a major competitor. The third of the big three in the automotive industry at that time was the Maxwell Motor Company (later Chrysler). By 1929 these companies supplied 75% of the market in the US. The other 25% were split between five independents: Hudson, Nash, Packard, Studebaker, and Willys-Overland. (Britannica) The depression in the 1930s further increased the dominance of the big three in the US. However, the depression affected the output of the industry massively. In 1929 five million automobiles were sold in the US only but in 1932 the industry reached its low with sales of just over one million. The industry managed to recover but did not reach the levels of production in 1929 before World War II (WWII) broke out. In Europe, the industry moved in the same direction of a mass market as in the States after WWI. However, the progress was slower as mentioned before. Britain’s automotive production grew from 73,000 vehicles in 1922 to 239,000 in 1929 while the number of producers declined from 90 to 41. (Britannica) The three leading firms were Austin, Morris, and Singer, which controlled 75% of the British market. However, they did not reach economies of scale which gave the larger firms less of a commanding position in the industry than the firms in the US. In 1937 the output reached 500,000 and at the end of the decade, there were six major companies dominating the British market: Morris, Austin, Standard, Rootes, Ford, and Vauxhall (the latter two being American). In France, there were three major firms that emerged in the 1920s, Peugeot, Renault, and Citroen. With the last holding 40% of the French automotive production at that time. Sports and racing cars were produced in Italy. However, they did not have a mass market for cars at that time.

Furthermore, Germany suffered from dislocation after WWI and economic difficulties. This also affected the automotive industry. In 1926 Daimler and Benz merged and in 1929 GM bought the German company Opel. Another German company emerged during Nazi Germany. The Nazis tried to emulate Ford and founded Volkswagen, which offered low-priced cars. (Britannica) During WWI and WWII many automobile manufacturers helped with military production. In WWII the war production was tremendous. In the US, automotive firms made $ 29 billion worth of military material between 1940 and 1945, which was around 50% of the country’s total output. (Britannica) After WWII, there was a massive expansion in motor vehicle production, especially outside of the US. During a 35-year period, the total world output increased by almost ten times and the share of the US in the world automotive production fell from 80% to 20%. In 1980, Japan became the leader with the European Economic Community (EEC) ranked second. However, in 1994, the US regained its position, with Japanese manufacturers opening major factories in the US. In the early 21 st century China overtook and became the leading manufacturer of automotives. The period after the war was branded by consolidation and expansions. German Volkswagen, Japanese Nissan, and Honda all opened branches in the US and in Canada. Toyota formed a joint venture with GM and in 1979, the French Renault acquired AMC to increase its presence in the US. However, it was sold to Chrysler in 1987. A year later, Chrysler was merged with Daimler-Benz, and the joint venture ended in 2007. A year later the U.S. auto industry nearly collapsed amid the global financial crisis. Many of the companies are taking loans from the government or filing for bankruptcy. This led to restructuring and downsizing of large companies like GM or Chrysler. (Britannica) In 2011, the Italian Fiat became the majority shareholder of Chrysler. Overall, it can be said that the industry developed massively between the introduction of Ford's T model and the modern industry of today. The industry became a mass production system and became leaner, through the Kanban approach founded by Japanese automotive manufacturer Toyota. Moreover, the industry is dominated by a few big companies and spread between several countries. Furthermore, the pandemic showcased a challenge for the industry including worldwide production still stands. The trend of worldwide environmental awareness creates a higher demand towards electronic automotives and other alternatives to diesel or gasoline powered cars. Lastly, design becomes more and more important.

As seen in picture X the market share changed a lot, with Japanese and German companies leading and Ford being 10th in 2022. Picture X The automotive manufacturing industry was worth 2.86tr USD in 2022 and 67.2million cars were sold, which underlines the massive growth the industry made during the last century. (Statista, 2023) Strategic Entrepreneurial Growth The Entrepreneur’s vision Henry Ford, an iconic figure of early 20th-century entrepreneurship, embodied a bold vision that transformed the automotive industry and redefined the principles of strategic growth. At the heart of his vision was the belief that the automobile should be accessible to the general public, a belief that took shape through the creation of the Ford Motor Company. Ford's innovative implementation was based on the democratization of the automobile through the revolutionary introduction of the assembly line, a concept that dramatically reduced production costs and made cars affordable to the masses. Initially, Ford was somewhat reticent about formal strategic planning, preferring an intuitive, hands-on approach. However, as his business grew, he recognized the need for more systematic

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planning. This transition played a crucial role in aligning resources with objectives, strengthening the company's competitive position, boosting employee morale, and facilitating agile decision-making. The company's life cycle, a journey that evolved from the development and start-up phases through to the growth, stabilization, and innovation, illustrates the classic trajectory of a successful business. However, it was in the growth phase that Ford had to deftly navigate key factors such as control, responsibility, tolerance of failure, and adaptability to change. At this stage, control was imperative to manage the company's expansion, while responsibility involved careful delegation while preserving Ford's core values. Tolerance for failure was minimal given the precision required in the automotive industry, but adaptability to change proved to be a key factor in continued growth. Ford's management of three core responsibilities - increasing the perception of opportunity, institutionalizing change as a corporate goal, and instilling the desire to innovate - has distinguished him as an outstanding strategic entrepreneur. His commitment to making the automobile accessible, his institutionalization of innovation across the assembly line, and his constant pursuit of opportunity consolidated his status as a visionary entrepreneur. Life cycle discussion and Analysis Furthermore, the life cycle of a venture will be discussed. Every venture goes through a life cycle, which consists of five stages. These are the development stage, the startup stage, the stabilization stage, and the innovation or decline stage. (Kuratko, 2023) The New Venture Development stage covers activities that are associated with the initial formulation of the venture. When looking at Ford, these activities include him dropping out of school at 15 years old to better his knowledge of machinery and engineering. After that he started an apprenticeship in Detroit and later worked as a chief engineer for Edison Illuminating Co. (SOURCE) He did many things to better his knowledge and to create a vehicle capable of driving on its own. For example, he created the quadricycle, which consisted of two bicycles placed side by side powered by a gasoline engine. He worked on this product for a decade. However, it was not capable of being a mass product. However, it made his name known. Later he took the lumber tycoon William H. Murphy on a ride and got into business with him, which helped him better the first model of the quadricycle. (SOURCE)

Moving on with the startup phase. This is the stage where foundation work is needed to create a formal business plan. (Kuratko, 2023) As mentioned, his collaboration with William H. Murphy helped with financing and knowledge. Moreover, he borrowed $28,000 from investors to establish the Ford Motor Company, and through his low-cost strategy, he managed to generate enough profit to make Ford wealthy enough and profitable enough to invest in innovations. ( https://www.philanthropyroundtable.org/hall-of-fame/henry-ford/#:~: text=In%201903%2C%20he %20borrowed%20%2428%2C000 ,range%20project%3A%20the%20Model%20T .) When looking at his marketing efforts, he first got visibility through car races and later focused on multichannel marketing. This included advertising his company in newspapers, telegrams, and through face-to-face conversations. His company was led solely by himself. However, he made sure to have the right people with industry knowledge working with him to help him out. (SOURCE) The growth stage calls for major changes in entrepreneurial strategy as competition and other market forces force reformulation. (Kuratko, 2023) To make the Model T, mass market-friendly Ford came up with a never before seen strategy. He made use of an assembly line including a conveyor belt and clearly formulated roles for the employees. These were asked to just stick with one task. He knew how important employee satisfaction was and focused on satisfying their needs, as he believed that this would automatically result in a more precise workforce and greater profits. Ford distanced himself from the competition by decreasing the work to 8-hour shifts a day and raising the payment to $5. The usual wage was $2 at that time. Moreover, he started the five-day week. ( https://www.discerningreaders.com/henry-ford-crushes-shareholder-first-and-foremost.html ) These strategic efforts, helped the Ford Company to set itself apart from the competition and created massive growth in the first two decades of the 20 th century. (SOURCE) Proceeding with the stabilization phase of the life cycle. This stage is based on the results of both market conditions and the entrepreneur’s efforts. (Kuratko, 2023) All his before-mentioned efforts to lower the costs of production helped Ford to stabilize the company. At that time no other company was as profitable and Ford quickly became the market leader in the US through his innovative approach to mass production. (SOURCE) Incorporating his 3P strategy further helped with that. He set the focus on the people, the performance, and the profit of the company and saw all three elements as interrelated. (SOURCE) Lastly, according to the venture lifecycle, a business could either enter the innovation or decline phase. (Kuratko, 2023) The Ford company did innovate their T model and created a newer and better version of it, which helped the company to rebound after the sales of the T model dropped. (SOURCE) Ford innovated the way how cars were sold in the US by making use of dealers and being one of the first American automotive companies to open branches globally. Making the company even

more profitable. Therefore, it can be said that the company entered the innovation phase to keep its position. ( https://www.inc.com/30years/articles/henry-ford.html ) Furthermore, the importance of the growth stage of the company is analyzed using the factors of control, responsibility, tolerance of failure, and change. With these factors, it can be assured that a company is on the right path and is expected to continue to grow. (Kuratko, 2023) First, it is important that the entrepreneur exercises a certain amount of control. Ford did that. When investors wanted him to build a car for the wealthy drivers instead of the general public, he bought them out. Through this, he made sure that the company’s vision was not compromised and to make sure that the values of the company were communicated to the employees in a trustful manner. ( https://www.inc.com/30years/articles/henry-ford.html ) Moreover, Ford made sure that the employees had their own responsibility. He created this sense of responsibility through the better working conditions in his plants and through the assembly line, which motivated the employees and made them more independent in their work. However, in the later stages of the business, his focus shifted for a time from being employee-focused to being control-focused. He created a service department, which was mainly built up of ex-convicts who oversaw the operation. This step massively changed the culture of the company and even ended up in a strike of workers. (SOURCE) On the other hand, Ford was able to tolerate failure, which is an important characteristic for an entrepreneur (Kuratko, 2023) Before founding the Ford company he had several other business ventures that failed, and even with the T model, he needed to accept at some point that his product was outdated. Staying too long with the T model can be categorized as his personal failure. Moreover, through the implementation of the service department, he violated the trust of the workers. This is called a moral failure. According to Kuratko, another important factor in the growth phase of a venture is change. This could be in planning, operations, or in implementation. (Kuratko, 2023) Ford was open to change: fewer hours for the workers, higher wages, a mainly positive work culture, and a unionized workforce even though he was reluctant to do that in the beginning. However, as he saw the benefits, he gave in. Moreover, he adapted his company during WWI, by helping with military production and he forced change by creating new models. (SOURCE) Further, it will be discussed how Henry Ford handled the responsibilities of increasing the perception of opportunity, institutionalizing change as the goals of the venture, and instilling the desire to be innovative. Henry Ford saw the opportunity for the gasoline engine and automobiles to become a mass industry. He did everything in his power to seize this opportunity and to make automotive mass-market-friendly. He first designed the car and then looked for ways to cut costs as

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discussed previously. Moreover, Ford also institutionalized change as the goal of the company. For that, for example, he used the profits he made with the model T to create a better version of the previous model. (SOURCE, $72 million?) With external changes in the market, he became more and more aware of the internal changes needed in the company and the need for adaptation in strategy. (SOURCE) Lastly, he tried to share his vision with his employees and tried to instill the desire to be innovative with them. He did not directly set up a reward system. However, through the better working conditions, he made sure that his employees were motivated. Ford gave them a more flexible time schedule than it was usual during that time. Allowing for a balance between work and free time. Lastly, Ford handpicked his managerial team and made sure that it consisted of people in the industry. For example, he once got Thomas Edison to work with him on a possible electric battery for a car. ( https://www.inc.com/30years/articles/henry-ford.html ) How did they Source Appropriate Financing Henry Ford used several strategies for financing the automotive venture. According to Corporate Ford (n.d.), Henry and twelve other investors invested $28,000 on June 16, 1903, and invented the Ford Motor Company. Henry Ford owned 25.5% of the stock. If the $28,000 is adjusted for inflation until 2023 the initial investment would have been around $978,953.18. The main way of financing his automotive venture was by selling cars. In the same year as the company was founded the first car was sold. On July 23, 1903, Ford sold its first Model A (Corporate Ford, n.d.), and by October 1 made a profit of 37,000 USD (which is $1,293,616.70 in 2023). This way of financing continued to increase Ford Motor Company’s success as in 1908 the Model T was introduced. Henry Ford is known for the implementation of the assembly line as a production technique. This innovation ensured that Ford Motor Company could increase the production and decrease the costs which improved the profitability of the company even more. The assembly line decreased the price of the Model T from $825 in 1908 to $260 in 1925 (Corporate Ford, n.d.). In addition, Henry Ford used Bank Loans from Eastern Bankers to buy out all the other shareholders and keep Ford Motor Company alive during World War 1 and the recession in 1920, borrowing a total of $60 million (strategosinc, n.d.). Finally, in 1956 Ford Motor Company went public. According to Goldman Sachs (n.d.) This IPO was led by Goldman Sachs, and is still one of the largest common stock offerings in the United States, raising USD 657 million (around $7.3 billion).

So, as seen, Ford used several ways to finance Ford Motor Company, due to the success of the first Ford cars and the invention of the assembly line. In addition, the successful IPO in 1956, raising $657 million, also helped to source the finances needed to grow the company. Financial Adversity Before the success of Ford Motor Company, Henry Ford already faced financial adversity as Henry Ford already bankrupted two other companies; the Detroit Automobile Company and the Henry Ford Company, both went bankrupt due to not finding financial banking and was unable to pay back loans and investors (Corporate Ford, n.d.). In addition, the creation of the third company, Ford Motor Company, Henry Ford still suffered from financial adversity. This was mainly because the automotive sector was not as big and people didn’t understand this sector so finding financial support was hard (intellectual Ventures, 2016). In 1920-1921 Henry Ford and Ford Motor Company came into a recession. Due to World War 1, almost all the factories were focused on war production. In addition, shareholders wanted to receive dividends to start their ventures. To fix this problem Henry Ford borrowed money from Eastern Bankers and bought out all the other shareholders (strategosinc, n.d.). After World War 1 the economic crisis ensured that almost no-one had the financials to buy new cars. Henry Ford was $60 million in debt. However, with the help of Kanzler, Ford Motor Company was able to stay in business due to the invention of Just-in-Time delivery which ensured that Ford Motor Company Could sell their inventory; worth $88 million (strategosinc, n.d.). Proprietary processes, Intelligence, Resources One of Henry Ford's most significant contributions to the automotive industry was the development and implementation of the assembly line. Ford's assembly line revolutionized manufacturing by breaking down the car production process into smaller, more specialized tasks. This proprietary process dramatically increased efficiency, allowing for mass production of automobiles at a lower cost. Intelligence - Innovation and Vision: Ford was known for his innovative thinking and visionary approach to business. His intelligence was reflected in his understanding of market demands, consumer preferences, and manufacturing efficiency. By recognizing the need for affordable and accessible automobiles, he aimed to make cars that the average person could afford. This intelligence guided Ford in developing the Model T, which became a symbol of innovation and accessibility.

Resources - Vertical Integration: Ford adopted a strategy of vertical integration, where he owned and controlled many aspects of the production process. This included owning rubber plantations for tires, iron mines for steel production, and even a fleet of ships for transporting resources. By having control over these resources, Ford could manage costs more effectively and ensure a steady supply chain for his manufacturing operations. Standardization and Economies of Scale: Ford's use of standardized interchangeable parts and the assembly line allowed for economies of scale. Standardization meant that parts could be produced uniformly and could fit into any car of the same model. This not only streamlined the manufacturing process but also facilitated repairs and maintenance. Innovative Business Model - Mass Production for Mass Consumption: Ford's innovative business model was centered around mass production for mass consumption. The combination of the assembly line, standardized parts, and efficient manufacturing processes enabled Ford to produce cars at a scale and price point that made automobile ownership accessible to a broad segment of the population. Form of Business: Corporation The Ford Motor Company operates as a corporation, a legal entity distinct from its shareholders. This choice of business structure has profound implications for the company's organizational and operational framework. Key Characteristics of the Corporate Form: Legal Distinctiveness: As a corporation, the Ford Motor Company enjoys the legal advantage of limited liability, protecting individual shareholders, including Henry Ford, from personal liability for corporate debts and obligations. Ownership Structure: Shareholders own the corporation through shares of stock. While Henry Ford initially held a significant stake, the company's growth led to the inclusion of additional shareholders.

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Transferability of Shares: The transferability of shares provides liquidity in the market, allowing shareholders to buy and sell ownership stakes. This feature contributes to the flexibility of the ownership structure. Perpetual Existence: A defining characteristic of corporations is their perpetual existence. The Ford Motor Company has endured for over a century, demonstrating the longevity afforded by this business structure. Centralized Management: Corporations feature centralized management, typically overseen by a board of directors and officers appointed by the board. Henry Ford's role as CEO exemplified the centralized management structure at Ford. Access to Capital: Corporations can raise capital through the issuance of stocks and bonds. The Ford Motor Company leveraged this characteristic to invest in large-scale operations, innovation, and research. Conclusion: The choice of a corporation as the form of business for the Ford Motor Company has played a pivotal role in its success, providing legal protection, organizational flexibility, and access to capital. Understanding these key characteristics offers valuable insights into the foundations of the company and its enduring legacy in the automotive industry. Recommendations: Given the dynamic nature of the business environment, periodic reviews of the corporate structure and its alignment with strategic objectives are recommended. This ensures continued adaptability and resilience in the face of evolving market conditions. Key Planning Strategies The use of assembly line production in the automotive manufacturing process is the primary notion with which Henry Ford is generally linked. This breakthrough transformed the industry, making automobiles more inexpensive and accessible to the general public. Henry Ford's idea was to mass- produce automobiles at a lower cost so that they could be marketed at a cheaper cost. (The Ford Motor Company, 2023) His ambition was to make automobiles affordable to the general public, rather than simply the privileged few. The release of the Model T in 1908 was Ford's crowning achievement, a car that became an iconic emblem of affordability, dependability, and accessibility. Furthermore, Ford's dedication to greater salaries for assembly line workers in 1914 not only improved working

conditions but also strategically coincided with his aim of building a workforce that could afford the things they manufactured. (The Ford Motor Company, 2023) In many ways, Henry Ford rejected typical strategic planning as we know it now. His management approach was distinguished by a strong emphasis on his vision and convictions as opposed to detailed strategic planning methods. Ford was recognized for his rather dictatorial decision-making style, as well as his unique focus on mass manufacturing and cost reduction. Ford's unchanging trust in the efficiency of the assembly line and mass production was one of the reasons he resisted formal strategic planning. (Alonso, 2023) His objective was simple: build affordable cars for the public. This clarity frequently led him to make judgments that were in line with his vision without significant planning. "Any customer can have a car painted any color that he wants so long as it is black," Ford famously said, emphasizing his emphasis on standardization and efficiency. (Johnston, 2020) Rather than depending on detailed strategic plans, he made judgments based on his in-depth understanding of production processes and his strong belief in the power of scale and efficiency. This strategy, while successful in many ways, was not without its difficulties. For example, in the face of the Model T's diminishing popularity, his initial reluctance to change and innovation resulted in a loss of market share to competitors who were quicker to adapt to changing consumer preferences. (Johnston, 2020) While not anchored in formal strategic planning as we know it today, Henry Ford's strategic judgments at Ford Motor Company greatly led to effective resource allocation, an enhanced competitive position, higher staff morale, and rapid decision-making. The assembly line changed industry by increasing resource efficiency through the division of labor and continuous flow. The standardization of replaceable parts reduced processes even further, decreasing waste and allowing for more effective resource allocation. (The Ford Motor Company, 2023) Ford's concentration on cost- cutting and mass production placed the corporation as a leader in affordability, securing the company's competitive position. The decision to quadruple assembly line salaries in 1914, as well as the implementation of employee welfare benefits, not only enhanced morale but also helped to a steady and motivated workforce. (Alonso, 2023) While Ford's authoritarian leadership style is not without excellence, his consistent focus on key ideas gave a clear foundation for strategic initiatives, and he was universally acclaimed. In essence, Ford's strategic acumen, founded in efficiency, cost leadership, and employee welfare, was critical in creating Ford Motor Company's success and impact in the early twentieth century. The Ford Motor Company's life cycle, similar to many businesses, unfolds in several stages, each marking a critical moment in the company's progress. The development stage began in 1903 with the founding of Ford by Henry Ford and a group of investors. The innovative debut of the Model T in 1908 stimulated the succeeding start-up period, putting Ford to the forefront of the automotive

industry. After Ford adopted mass production and the assembly line in 1913, the company entered a growth phase marked by increased output, market domination, and foreign development. (Kim & Wallington, 2016) Ford's position as an industry leader was cemented during the stability era, with an emphasis on efficiency and uniformity. The trend, however, took a subtle turn in the mid-twentieth century, providing a dual story of innovation and decline. Model and technology innovations coexisted with problems resulting from reluctance to change. Ford experienced a period of decline in the late twentieth century, with financial losses and a diminishing market share. (Kim & Wallington, 2016)Ford navigated recovery through innovation, diversification, and a dedication to sustainability throughout the following decades, resulting in a remarkable change. The company's post-2000s story depicts a resilient endeavor that adapts to obstacles, leverages innovation, and embraces revolutionary developments in the automotive sector. (Kim & Wallington, 2016) The journey of Ford Motor Company exemplifies the cyclical nature of business, with phases of climb, stabilization, problems, and adaptive evolution. The growth stage of a venture's lifetime is a vital juncture that necessitates careful consideration of various critical elements, and for Ford Motor Company, this period is critical. The question of control is critical, as the transition from a start-up to a growth-oriented business involves a reevaluation of centralized vs decentralized control structures. Ford's entry into new markets and the introduction of new vehicle models necessitated a delicate balance between upholding quality standards and operational consistency while addressing the complexities of a larger company. (The Ford Motor Company, 2023) Ford was faced with the issue of coordinating tasks across departments, geographies, and product lines. Effective delegation, communication, and coordination were critical to ensuring a unified organizational structure capable of navigating the difficulties of a growing endeavor. Experimentation and risk-taking are essential in seeking out new opportunities, and Ford's ability to combine its historical emphasis on efficiency with a willingness to experiment and learn from losses was critical to its success. (The Ford Motor Company, 2023)Finally, during the growth stage, flexibility to change is critical. Responding to shifts in customer tastes, technical advancements, and broader industry trends needed strategic vision and a change-embracing organizational culture for Ford. The ability to properly handle these issues during the growth stage contributed not just to Ford's past success, but also positioned the company for long-term resilience and sustainability in a volatile market environment. (Johnston, 2020) Henry Ford successfully handled three critical duties that created Ford Motor Company's success. First, by pioneering mass manufacturing with the introduction of the assembly line in 1913, he increased the perception of potential. This breakthrough significantly cut production costs, making car ownership more accessible to a wider audience and shifting the notion of autos from luxury items to necessities. (The Ford Motor Company, 2023) Second, by embracing the moving assembly line, an

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innovative production procedure that emphasized the company's dedication to continual improvement and efficiency, Ford institutionalized change as a major organizational purpose. This institutionalization of change not only revolutionized production processes, but also fostered an innovative corporate culture. Finally, by emphasizing efficiency and standardization, Ford developed a strong desire for innovation within the organization. (Johnston, 2020) Ford's drive to discover new solutions to improve both manufacturing processes and product development was highlighted by the assembly line and the use of standardized interchangeable parts. Under Henry Ford's leadership, Ford Motor Company's constant commitment to invention, adaptability, and accessibility created the groundwork for the company's long-term success and effect on the automotive industry. Ford Motor Company could solidify its position in the pursuit of strategic entrepreneurial growth by embracing a complete corporate entrepreneurship strategy. Establishing intrapreneurship programs that allow employees to create within the organization, promoting a culture of creativity and idea exploration, is required. (Pereira, 2023) Encouraging cross-functional collaboration breaks down barriers, allowing varied viewpoints and ideas to collide. Ford may tap into external expertise and technology by actively engaging in open innovation by cooperating with external partners, startups, and academic institutes, sparking accelerated innovation. (Alonso, 2023) Strategic investments in startups and acquisitions that line with Ford's strategy enable opportunities to remain ahead of industry changes. Implementing agile development procedures provides a quick response to market shifts, as well as the incorporation of client feedback into product development. It is critical to foster an entrepreneurial culture within the organization, emphasizing risk-taking and learning from setbacks. (The Ford Motor Company, 2023) Furthermore, Ford's position in the dynamic automotive market is strengthened by strategic alliances with industry leaders and a commitment to digital transformation, which integrates smart technologies and data analytics. This all-encompassing approach to corporate entrepreneurship allows Ford not only to innovate, but also to navigate industry shifts and sustain long-term success. It is more than possible that the Ford Motor Company could modify its approach to many aspects by adopting a social enterprise framework, connecting them with social impact considerations. Seeking funding from impact investors or social impact bonds, or allocating resources toward activities that promote environmental sustainability or community development, could be examples of acceptable financing. (The Ford Motor Company, 2023) In terms of intellectual property protection, Ford might investigate open-source initiatives, participating in collaborative projects while retaining proprietary components crucial to its competitive edge. Addressing marketing issues in the context of a social enterprise would entail emphasizing storytelling and social impact messaging, emphasizing the positive societal and environmental impacts of its products and services. In the face of financial challenges, a social enterprise framework may prioritize a triple bottom line strategy, balancing

financial concerns with a firm commitment to social and environmental responsibility. (The Ford Motor Company, 2023) This comprehensive viewpoint would help Ford navigate problems with resilience, diversify revenue streams, and stay focused on its triple bottom line objectives. While Ford has traditionally been a for-profit company, integrating social enterprise concepts could improve the company's impact on society and the environment. From the founding of Ford Motor Company to the present day, Henry Ford's strategic entrepreneurship displays a diversified strategy that has contributed to sustained success. Manufacturing innovations, exemplified by the moving assembly line in 1913, changed the industry by increasing productivity and lowering production costs. The Model T's introduction demonstrated Ford's commitment to product consistency, affordability, and market accessibility. (The Ford Motor Company, 2023) In its early years, the corporation developed globally, building assembly operations in several countries, laying the groundwork for a long-term international presence. Employee welfare, as proven by the revolutionary $5 per day wage in 1914, resulted in an engaged and stable workforce, fostering an innovation culture that continues to this day. Ford's ability to adapt to shifting consumer trends, as evidenced by the Model T's progression to numerous product offerings, demonstrates its resilience in responding to market needs. (The Ford Motor Company, 2023) Continuous investment in R&D, from the launch of the V8 engine in the 1930s to current ambitions in electric and driverless vehicles, demonstrates a dedication to technological innovation. These strategies contribute to Ford's strategic entrepreneurial growth by allowing it to combine past triumphs with current techniques, assuring its continued relevance and competitiveness in the dynamic automotive landscape. (The Ford Motor Company, 2023) Summary Insights Key learning from the Project During this project the team learned several things about what it is to start a company, the challenges entrepreneurs face, but also about how Henry Ford became such a success and revolutionized the manufacturing and automotive industry. The group learned that being persistent and adaptable is an important factor in becoming a successful entrepreneur, this is even more important now, with the digitalization and changing trends. However, Henry Ford was already persistent in creating automobiles and adaptable to circumstances out of his control.

Furthermore, having a Vision is important to ensure that you do not drift away from your end goal. Henry Ford was persistent in changing the automotive industry through his vision: making cars affordable. This led to the creation of the assembly line. The team learned that every entrepreneur faces challenges and that even after you lose, you win by learning something about failure. These challenges could be of any sort, financial, legal, personal, etc. This should not mean quitting after you face a challenge. Henry created two other automobile companies before creating the famous Ford Motor Company. In general, during this project, the group learned a lot regarding the challenges faced when starting a new company and that you can come only so far with theory, eventually you have to take it into practice. However, the classes in Entrepreneurship prepare us to become successful entrepreneurs and ensure that we receive the information that can reduce the challenges and inform us that every entrepreneur will face challenges. Insightful Commentary throughout Report In embarking on this project, our team delved into the intricate world of entrepreneurship, exploring not only the challenges faced by contemporary entrepreneurs but also drawing inspiration from the remarkable journey of Henry Ford. This exploration has provided us with invaluable insights that extend beyond the theoretical realm, offering practical lessons that are fundamental to the entrepreneurial landscape. One of the overarching themes that emerged from our study is the importance of persistence and adaptability. We recognized that, in today's dynamic business environment marked by digitalization and rapidly changing trends, the ability to persist in the face of challenges and adapt to evolving circumstances is crucial for success. Interestingly, we found that Henry Ford embodied these traits long before they became buzzwords in the entrepreneurial lexicon. His persistence in the pursuit of creating automobiles and adaptability to external factors ultimately led to his success and revolutionized the manufacturing and automotive industry. Furthermore, the significance of having a clear vision became evident through our examination of Henry Ford's endeavors. Ford's unwavering commitment to making cars affordable and his vision for the assembly line not only shaped the direction of his company but also left an indelible mark on the entire industry. This resonates with the teachings from our entrepreneurship classes, emphasizing the importance of a well-defined vision to guide entrepreneurs toward their end goals.

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The project also underscored the inevitability of challenges in the entrepreneurial journey. We learned that setbacks are not indicative of failure but rather opportunities for learning and growth. Henry Ford's experience of creating two other automobile companies before founding the Ford Motor Company exemplifies this lesson. Each setback was a stepping stone toward eventual success, highlighting the resilience required to navigate the complex landscape of entrepreneurship. Drawing comparisons with our initial analysis of local/small business owners, we observed both similarities and differences. While the fundamental challenges were universal, the scale and scope differed significantly. Local entrepreneurs faced hurdles on a smaller scale, often related to community dynamics and regional markets. Henry Ford's story, on the other hand, unfolded on a grander stage, encompassing national and global implications. This distinction emphasized the need for adaptability not only to market trends but also to the scale of operations. In reflecting on our project in relation to the textbook and class discussions, we found that the real- world application of theoretical concepts was indispensable. The experience reinforced the idea that while theoretical knowledge forms a solid foundation, its true value is realized when translated into practical action. The classes in entrepreneurship, with their focus on preparing future entrepreneurs, played a crucial role in equipping us with the information needed to navigate challenges and make informed decisions. In conclusion, our project on entrepreneurship, inspired by the journey of Henry Ford, has provided our team with a profound understanding of the entrepreneurial landscape. It served as a bridge between theory and practice, offering insights into the challenges faced by entrepreneurs and emphasizing the timeless principles of persistence, adaptability, and visionary leadership. The parallels drawn between our local/small business analysis and Henry Ford's story illuminated the diverse facets of entrepreneurship, reinforcing the need for a nuanced approach. This project has not only deepened our understanding but also fueled our aspirations to embark on our entrepreneurial journeys armed with practical wisdom gained from the experiences of those who came before us.

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References Alonso, T. (2023, February 9). Strategy Study: How Ford Adapted To The Changing Automobile Market . Cascade Strategy. Retrieved November 20, 2023, from https://www.cascade.app/studies/ford-strategy-study Company Timeline (n.d.). Corporate Ford. Retrieved November 15, 2023 from, https://corporate.ford.com/about/history/company-timeline.html#:~:text=The%20Ford%20Motor %20Company%20is,A%20on%20July%2023%2C%201903.

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The moving Assembly line and the five-dollar workday . (n.d.) Corporate Ford. Retrieved November 15, 2023 from, https://corporate.ford.com/articles/history/moving-assembly- line.html#:~:text=An%20important%20outcome%20of%20the,more%20affordable%20to %20individuals%20everywhere. The Power of Relationships Fuels Historic Ford Motor Company IPO (n.d.) Goldman Sachs. Retrieved November 15, 2023 from, https://www.goldmansachs.com/our-firm/history/moments/1956-ford-ipo.html Failing for Success: Henry A. Ford . (2016, August 2). Intellectual ventures. Retrieved, November 15, 2023 from, https://www.intellectualventures.com/buzz/insights/failing-for-success- henry-a.-ford#:~:text=Before%20his%20success%2C%20however%2C%20Ford,in%20his%20first %20two%20ventures. Ford Crises of 1920-1921; Henry Ford gets revenge and independence . (n.d.) Strategosinc. Retrieved, November 15, 2023 from, https://strategosinc.com/RESOURCES/04-Lean_History/ford_crises.htm Hayes, A. (2022, October 25). Henry Ford’s contribution to the automobile industry & mass production. TheCollector. https://www.thecollector.com/henry-ford-contribution-to-automobile- industry-production/ Henry Ford - Biography, Inventions & Assembly Line. (2009, November 9). HISTORY. https://www.history.com/topics/inventions/henry-ford Henry Ford Biography (n.d.). Corporate Ford. Retrieved November 15, 2023 from, https://corporate.ford.com/articles/history/henry-ford-biography.html#:~:text=On%20June %2016%2C%201903%2C%20Henry,and%20controlling%20owner%20in%201906. The Ford Motor Company. (2023). Helping Build a Better World . Ford Corporate. Retrieved November 20, 2023, from https://corporate.ford.com/content/dam/corporate/us/en-us/documents/ reports/2023-integrated-sustainability-and-financial-report.pdf Johnston, P. (2020, April 5). Adaptive leadership: a tough but essential trick to master . CIO. Retrieved November 20, 2023, from https://www.cio.com/article/196386/adaptive-leadership-is-a- tough-trick-to-master.html Kim, H.C., & Wallington, T.J. (2016). Taking a Life Cycle Approach . Taking a Life Cycle Approach - Sustainability Report 2016/17: Ford Motor Company. Retrieved November 20, 2023,

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from https://ophelia.sdsu.edu:8443/ford/06-02-2018/microsites/sustainability-report-2016-17/ customers-products/emissions/life-cycle-approach.html Pereira, D. (2023, July 19). Ford SWOT Analysis (2023) . Business Model Analyst. Retrieved November 20, 2023, from https://businessmodelanalyst.com/ford-swot-analysis/ Pragya. (2023, October 1). What challenges did Henry Ford face? 4 simple points highlighting his struggles. Icy Heroes . https://icyheroes.com/what-challenges-did-henry-ford-face/ 2023 outlook: Rising trends in the automotive industry . (2023, April 26). RSM Global. https://www.rsm.global/insights/2023-outlook-rising-trends-automotive-industry

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Entrepreneurship group project (2)

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