Saint Louis University

School of Accountancy, Management, Computing and Information Studies

Ford Motor Company – Risk Taking

Entrepreneurial Orientation

In partial fulfilment of the requirements in General Entrepreneurship

Submitted by:
Dagupen, Christopher
Estillore, Trisha Mae
Kiwang, Krisha Mae
Megano, Stella

Submitted to:
Mrs. Glory Drequito
General Entrepreneurship Instructor

Submitted on:
April 20, 2020
EXECUTIVE SUMMARY
I. Company Information

A. Business Description
Ford Motor Company is a global company based in Dearborn, Michigan. Since
the company's founding in 1903, the name Ford has been synonymous with the
automotive industry. Company founder Henry Ford Sr. became known for innovation,
transforming cars into commodities for the masses and his company into an American
icon. The Ford Motor Company quickly became a household name and remains today a
popular and dependable brand of car.
Henry Ford (and 11 other investors) officially submitted the paperwork to
incorporate the Ford Motor Company in 1903. In 1904, Ford introduced the world
famous T Model that became the symbol of the American motorcar industry. Its price
was only $825 and most of the Americans could afford it. This made the vehicle the
most sold serial car from that time. Its glory lasted through 1927 before it was replaced
by a new version. Henry Ford had witnessed a huge success with his vehicles
especially with the T Model and by the early 1910's he expanded overseas, with
production facilities in France, Denmark and Germany, England and Austria. Since
then, Ford has become one of the most recognizable auto makers. With the introduction
of the automobile assembly line in 1913, Henry Ford revolutionized the auto world. Cars
no longer became commodities for just the elite. They could now be mass produced and
made more available to the everyday person.
Henry Ford retired in 1919 and was replaced by his son Edsel, who employed his
brothers Henry II, Benson and William. Edsel’s vision was to bring design as well as
utility to Ford vehicles. In 1922, Ford acquired the Lincoln Motor Company, a luxury car
line that had gone bankrupt, originally named after President Abraham Lincoln. In the
next few years, he brought more curvy shapes to the Model T, which made it an even
bigger hit.

B. Location
The main office of Ford Motor Company is located at Dearborn, Michigan, United
States and manufactures and distributes automobiles across six continents. Ford Motor
Company has more than 65 plants worldwide.

C. Contact Information
Social Media
Twitter: @FoodService
@FoodCredit
@LincolnClient
Facebook: facebook.com/Ford
Youtube: youtube.com/user/Ford
Phone
Ford and Mercury United States (800) 392-3673
Ford Credit Customer Support (800) 727-7000
Ford and Mercury Roadside Assistance (800) 241-3673
Lincoln Concierge United States (800) 521-4140

Mail
Ford Motor Company
Customer Relationship Center
P.O. Box 6248
Dearborn, MI 48126

Ford Credit
P.O. Box 542000
Omaha, NE 68154
 II. COMPANY IDENTITY

A. Company Logo

Ford logo is a flattened oval figure designed in several shades of blue and white
colors. The famous stylish Henry Ford signature is embedded into the oval. The
company has always stressed on the importance of tradition, recognition and elegance
and only introduced minor corrections to the logo through the long and successful
history.

A1. Shape
Ford has been reliant on oval shape of the logo for most of its history. It looks
simple and elegant, provides visual distinctiveness and makes it one of the most
recognizable commercial emblems all around the world.

A2. Color
The Ford logo has long been associated with blue color which has earned it wide
recognition. The latest version of the logo, introduced in 2003 to celebrate Ford’s 100 th
anniversary, features a gradient of shades, from light blue at the top to navy blue at the
bottom. The ‘Ford’ wording is designed in white letters and there is also a white oval
line, embedded into the logo.

B. Company Tagline
The company tagline of Ford: “Go further”, is intended to cleverly offer the dual
meaning of the ideas that the Ford product delivers more than the competition, as well
as play on the improved fuel economic angle.

C. Company Mission
To make people’s lives better by making mobility accessible and
affordable.

This mission statement focuses on moving people, which is a basic function

expected in automobiles and the transportation sector. Such emphasis on mobility
indicates the purpose of Ford’s business in society. As one of the biggest players in the
international market, the company aims to make people’s transportation more effective.
The following are the main components of Ford’s corporate mission statement:
 1. Make people’s lives better
2. Make mobility accessible
3. Make mobility affordable

D. Company Vision
To become the world’s most trusted company, designing smart vehicles
for a smart world.

This vision statement reflects the multinational company’s strategic goal of becoming
a leader in the automotive industry. Ford’s focus on smart vehicles is pertinent to
current market conditions and customers’ preferences. The company aims to maximize
its profitability and relevance to the market, where more efficient technologies are
preferred. The following are the main components of Ford’s corporate vision statement:
1. Worldwide scale
2. Most trusted company
3. Designing smart vehicles for a smart world

E. Company Values
Integrity
We always strive to do the right thing. Our commitment to the truth is
unwavering, both in actions and in words.

Servant’s attitude
We only exist to serve our internal and external customers, so their concerns are
always at the forefront of our business. We will serve our clients with a genuine humility
that leaves no doubt that they are the sole focus of all of our endeavors.

Accountability
A personal choice to rise above one’s circumstances and demonstrate the ownership
necessary for achieving key results: to See it, Own it, Solve it, and Do it. Doing it right
the first time is not our goal, but our standard. We will hold ourselves responsible for this
attention to detail in all of our duties.

Continuous Improvement
We are a dynamic organization that constantly seeks areas of growth and innovation.
This growth starts at the personal level and continues into all aspects of our business.

Teamwork
Teamwork is our individual actions, brought together for our common purpose, which
subordinates our individual needs to the needs of the group. We put aside our individual
needs to work towards and accomplish the larger group objective. We cooperate, using
our individual skills, and provide constructive feedback despite any personal conflict
between individuals.
Fun
Fun is a key to an enjoyable workplace. It encourages energetic contributions from our
team members and creates an upbeat environment for our internal and external
customers that helps differentiate us from our competition!
PRODUCT DESCRIPTION
Ford Motor Company is a global automotive and mobility company. The
Company's business includes designing, manufacturing, marketing, and servicing a full
line of Ford cars, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury
vehicles. The company plans to continue making its vehicle range global in the coming
years as well. These vehicle categories include small, medium, and large vehicles. This
move has allowed the company to save market-specific vehicle development costs.
Ford is consolidating its vehicle platforms to produce a higher number of vehicles. This
move is also helping the company to minimize its fixed costs. At the same time, the
company’s product lineup is becoming well known globally.
Ford never believed that choosing a family car should compromise on driving
pleasure or a stylish, eye catching design, SUV or another type of car. Their family
vehicles blend space and practically with cutting-edge design, clever technology,
advanced safety features and an exhilarating driving experience. Ford provides a range
of cars with big boots that are also designed to be versatile spaces.
Ford offers a wide range of innovative engines that will provide superb fuel
efficiency and minimize emissions on every trip. Ford vehicles include;
Sports Utility Vehicles

Explorer Ecosport

Everest Expedition
Trucks

Ranger Ranger Raptor

Van

Transit
Performance

Mustang
PHILANTHROPIC ACTS
Since 1949, the Ford Motor Company Fund (Ford Fund) has worked with non-
profit partners and Ford dealers to provide access to opportunities and resources that
help all people reach their full potential. The Ford Fund supports Ford’s vision of
becoming the world’s most trusted company by investing in programs that support
education, promote safe driving, enrich community life and encourage employee
volunteering. Their work in these four areas rooted in Ford’s long standing commitment
to making a positive impact on society and Henry Ford’s legacy of building strong
communities wherever Ford does business.

Driving human progress in communities

Employee volunteering

Since 2005, Ford employees have logged more than 1.3 million volunteer hours
across six continents.
Driving safely

Ford driving skills for life – their signature safe driving program teaches new
drivers how to be safe behind wheel.
Education

Ford invest more than a third of their funds to support educational initiatives that
empower people to envision and lead change.
Community life

For more than 70 years, Ford has been investing in programs that celebrate
diversity, provide disaster relief and more.
ENTREPRENEURIAL ORIENTATION – RISK TAKING

Successful entrepreneurship involves taking risks. Countless entrepreneurs have

taken risks to get their businesses to where they are now. Taking risks, however, does
not mean going into business blindly and then expecting great results. Taking risks in
entrepreneurship involves careful planning and hard work. Risk takers are those who
carefully take steps toward their goals. These individuals do not just gamble everything
into their venture; they find ways to reduce risk as they move forward with their
business.

Customers have constantly changing demands. For this reason, businesses

should be in a constant state of progress. Since most people tend to avoid risk, those
who are brave enough to take risks already have a competitive advantage. Moreover,
innovation involves changing how people do things. It is about sharing and teaching
what we know and putting new ideas into practice. Innovation cannot happen if you will
not accept the risk that your undertaking might fail. The level of risk may be lessened,
however, if you make all possible calculations and evaluate which option is best before
proceeding to the next step.

Although Ford had access to a new design which would decrease the possibility
of the Ford Pinto from exploding, the company chose not to implement the design,
which would have cost $11 per car, even though it had done an analysis showing that
the new design would result in 180 less deaths. The company defended itself on the
grounds that it used the accepted risk/benefit analysis to determine if the monetary
costs of making the change were greater than the societal benefit. Based on the
numbers Ford used, the cost would have been $137 million versus the $49.5 million
price tag put on the deaths, injuries, and car damages, and thus Ford felt justified not
implementing the design change. This risk/benefit analysis was created out of the
development of product liability, culminating at Judge Learned Hand's BPL formula,
where if the expected harm exceeded the cost to take the precaution, then the company
must take the precaution, whereas if the cost was liable, then it did not have to.
However, the BPL formula focuses on a specific accident, while the risk/benefit analysis
requires an examination of the costs, risks, and benefits through use of the product as a
whole. Based on this analysis, Ford legally chose not to make the design changes
which would have made the Pinto safer. However, just because it was legal doesn't
necessarily mean that it was ethical. It is difficult to understand how a price can be put
on saving a human life.

There are several reasons why such a strictly economic theory should not be
used. First, it seems unethical to determine that people should be allowed to die or be
seriously injured because it would cost too much to prevent it. Second, the analysis
does not take into all the consequences, such as the negative publicity that Ford
received and the judgments and settlements resulting from the lawsuits. Also, some
things just can't be measured in terms of dollars, and that includes human life.
However, there are arguments in favor of the risk/benefit analysis. First, it is well
developed through existing case law. Second, it encourages companies to take
precautions against creating risks that result in large accident costs. Next, it can be
argued that all things must have some common measure. Finally, it provides a bright
line which companies can follow.
REFERENCES
https://corporate.ford.com/history.html?
fbclid=IwAR24JyylvSlY_FKFTWeBKFs_1LybxhaS5CCbkXW4jmniGrSHhN7xnWlQWN8
https://www.history.com/this-day-in-history/ford-motor-company-incorporated?
fbclid=IwAR2kGynFa_DD_gDsnKQFvQtmYEioURxUbkf6SHZsbCwzgvysmdvv5W6dIvc
https://www.referenceforbusiness.com/history2/69/Ford-Motor-Company.html?
fbclid=IwAR2XdpU2Oc9yk64AnnIjHwB94I49r-mtWjCvbiQ4hMSC43FUo653dcoyJjM
https://www.ford.com.ph/about-ford/?
fbclid=IwAR1DG7lJZYZmbHALo8uuG6wHZhLAAMu9ksVYqmuYmc61RsXrJ5aulUxRZJ
I
https://www.galpinford.com/mission-statement-core-values/?
fbclid=IwAR2XdpU2Oc9yk64AnnIjHwB94I49r-mtWjCvbiQ4hMSC43FUo653dcoyJjM
http://panmore.com/ford-motor-company-vision-statement-mission-statement?
fbclid=IwAR0-u94czN6m2DxRNJ9VaygYlX1UmPYDuMZFAi7bvKtpm4UgmPiWWE-
hjzU
https://www.youtube.com/watch?v=_junR946xpw&t=6s