Internship Report Elroy Johnson (Ford Motors) PDF

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A REPORT OF ONLINE INTERNSHIP FOR “FORD MOTORS”

Project submitted to SAINTGITS INSTITUTE OF MANAGEMENT

In the Partial Fulfilment of the Requirement for the Degree of MASTERS OF BUSINESS ADMINISTRATION

By ELROY JOHNSON REG.NO: MGP19MBA43

Under the guidance and supervision of Ms. JINOMOL .P

SAINTGITS INSTITUTE OF MANAGEMENT KOTTAYAM

August 2020

DECLARATION I hereby declare that matter embodied in this report entitled ‘A REPORT ON ONLINE INTERNSHIP FOR FORD MOTORS.’ is the result of the analysis of observations and interviews carried out by me under the guidance of o Ms. Jinomol P, Associate Professor, Saintgits Institute of Management. This project work has not previously formed the basis for the award of any degree, diploma, fellowship, associate ship or any other similar title, to any candidate of any University

Place: Pathamuttom Date: 08.08.2020

REG. NO: MGP19MBA43

ELROY JOHNSON

ACKNOWLEDGEMENT First and foremost, I express my gratitude to God Almighty for his blessings to complete this work. I express my heartfelt gratitude to our Dean Dr. Roji George, for providing the opportunity for doing the internship. I am grateful to Ms. Jinomol P Assistant Professor, my Faculty guide for her whole hearted support and guidance Last but not the least I extend my sincere thanks to my parents and friends for their valuable help and encouragement throughout my studies.

ELROY JOHNSON

TABLE OF CONTENTS

CHAPTERS

1.

PARTICULARS

INTRODUCTION

1.1

Introduction to The Internship

1.2

Objective of Online Internship

2.

ORGANISATIONAL ANALYSIS

2.1

Industry Analysis

2.2

Introduction

2.3

Company History

2.4

Mission, Vision and Values of the company

2.5

Governing Body and Top Management

2.6

Organizational Structure

2.7

Products/ Services of the company

2.8

Competitor analysis

2.9

Financial Analysis

2.10

Description of supporting functions

2.11

SWOT analysis of the company

3.

LEARNINGS

4.

CONCLUSION

5.

REFERENCES

6.

APPENDIX

PAGE NO.

LIST OF TABLES & FIGURES

TABLE NO. 2.2.1

About the Company

2.5.1

Governing Body

2.9.1

Financial Analysis

2.9.2

Balance sheet

2.9.3

Income statement

2.9.4

Ratios

FIGURE NO.

DESCRIPTION

PAGE NO.

DESCRIPTION

PAGE NO.

2.2.1

Ford Motors’ Logo

2.6.1

Organizational structure

2.8.1

Competitor Segmentation

CHAPTER – 1 INTRODUCTION

CHAPTER-1

INTRODUCTION 1.1 INTRODUCTION TO THE STUDY This report provides the details about the major functions and roles of “Ford Motors”. It aims to give an idea about how each department act as a vital link to connect the employees and the Management Name of the Company: “Ford Motors” Reference to Internship: Mr. BENNY EKKA working as Design Engineer “Ford Motors” Period of internship: From July 22nd to August 4th of 2020.

1.2 OBJECTIVE OF THE ONLINE INTERNSHIP •

To familiarize with the organization and its functions.

•

To understand the structure and working of the organization

•

To do the SWOT Analysis

•

To understand how the key business processes are carried out in the organization. To relate theory with practice

CHAPTER-2 ORGANIZATIONAL ANALYSIS

CHAPTER-2 ORGANIZATIONAL ANALYSIS 2.1 INDUSTRY ANALYSIS The automobile sector is a key player in the global and Indian economy. The Indian automobile industry seems to come a long way since the first car that was manufactured in Mumbai in 1898. The automobile sector today is one of the key sectors of the country contributing majorly to the economy of India. It directly and indirectly provides employment to over 10 million people in the country. The Indian automobile industry has a well-established name globally being the second largest two-wheeler market in the world, fourth largest commercial vehicle market in the world, and eleventh largest passenger car market in the world and expected to become the third largest automobile market in the world only behind USA and China. The automobile industry in India is world’s fourth largest, with the country currently being the world's fourth largest manufacturer of cars and seventh largest manufacturer of commercial vehicles in 2018. Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers dominate the industry and made up 81 per cent share in the domestic automobile sales in FY19. Overall, Domestic automobiles sales increased at 6.71 per cent CAGR between FY13-18 with 26.27 million vehicles being sold in FY19. Indian automobile industry has received Foreign Direct Investment (FDI) worth US$ 23.51 billion between April 2000 and September 2019. Five per cent of total FDI inflows to India from April 2000 to June 2019 went into the automobiles sector. The automobile sector of India is one of the largest in the world and accounts for over 7.1% of India's gross domestic product (GDP). It also contributes to nearly 22% of the country's manufacturing GDP. Till early 1980s, there were very few players in the Indian auto sector, which was suffering from low volumes of production, obsolete and substandard technologies. With de-licensing in the 1980s and opening up of this sector to FDI in 1993, the sector has grown rapidly due to the entry of global players. India is a global major in the twowheeler industry producing motorcycles, scooters and mopeds principally of engine capacities 58 below 200 cc. Tata figures among the ten largest global manufacturers of LCVs, heavy trucks, buses and coaches, while it is among the top 25 in passenger car manufacturing.

2.2 INTRODUCTION

Fig2.2.1

Ford Motor Company, incorporated on July 9, 1919, is a global automotive and mobility company. The Company's business includes designing, manufacturing, marketing, and servicing a line of Ford cars, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury vehicles. The Company operates in four segments: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations. Ford Smart Mobility LLC and Central Treasury Operations are combined in All Other. The Company's vehicle brands are Ford and Lincoln. The Company sells its dealerships for retail sale, it also sells vehicles to its dealerships for sale to fleet customers, including commercial fleet customers, daily rental car companies, and governments. The Company also sells parts and accessories, primarily to its dealerships (which in turn sell these products to retail customers) and to authorized parts distributors (which in turn primarily sell these products to retailers). As the second-largest automobile company in the world, Ford Motor Company represents a $164 billion multinational business empire. Known primarily as a manufacturer of automobiles, Ford also operates Ford Credit, which generates more than $3 billion in income, and owns The Hertz Corporation, the largest automobile rental company in the world. Products Automobiles Luxury vehicles Commercial vehicles Automotive parts Pickup trucks SUVs

Services Automotive finance Vehicle leasing Vehicle service Number of employees

190,000 (December 2019)

Key people William Clay Ford Jr. (Executive Chairman) Jim Hackett (President & CEO) Owners Ford family (2% equity; 40% voting power) The Vanguard Group (5.82%) Evercore Wealth Management (5.58%) Table 2.2.1

Type

Public

Industry

Automotive

Founded

June 16, 1903; 117 years ago

Founder

Henry Ford

Headquarters

Dearborn, Michigan, United States

Area served

Worldwide

2.3 HISTORY OF THE COMPANY Henry Ford built his first experimental car in a workshop behind his home in Detroit in 1896. After formation of the Ford Motor Company, the first Ford car was assembled at the Mack Avenue plant in July 1903. Five years later, in 1908, the highly successful Model T was introduced. Demand for this car was so great that Ford developed new mass production methods in order to manufacture it in sufficient quantities. In 1911 he established the industry’s first U.S. branch assembly plant (in Kansas City, Missouri) and opened the company’s first overseas production plant (in Manchester, England); in 1913 he introduced the world’s first moving assembly line for cars; and in 1914, to further improve labour productivity, he introduced the $5 daily wage for an eight-hour day (replacing $2.34 for a nine-hour day). The company’s first international sales branch opened in Paris in 1908. By mid-1914 there were more than 500,000 Model Ts on the roads of the world; by 1923 the company was producing more than half of America’s automobiles; and, by the end of the 1920s, Ford had more than 20 overseas assembly plants in Europe, Latin America, Canada, Asia, South Africa, and Australia. The Ford had become the world’s most familiar make of car. In 1927 the last Model T and the first new Model A were produced, followed in 1932 by the first Ford V-8. In 1922 Ford had acquired the Lincoln Motor Company (founded 1917), which would produce Ford’s luxury Lincolns and Continentals. In 1938 Ford introduced the first Mercury, a car in the medium-priced range. As early as 1906 Henry Ford had acquired 58.5 percent of the company’s stock; and, when the other stockholders balked at the idea of building the giant (and expensive) River Rouge plant in Dearborn, he bought them out; Edsel Ford (1893–1943) became president (1919). On Edsel’s death in 1943, Henry Ford returned to the presidency, but in 1945 he turned it over to his grandson, Henry Ford II, who reorganized the company’s tangled system of financial management and reinvigorated its corporate culture by hiring talented younger managers. The failed introduction of the Edsel (model years 1958–60) occurred amid these successes. Henry Ford II continued to guide the company as chief executive officer (1945–70) and chairman of the board (1960–80). In the 1950s and ’60s the Ford Motor Company began limited diversification, but by the 1990s it had refocused attention on its automotive concerns and financial services. In 1989–90 Ford acquired Jaguar, a British manufacturer of luxury cars. Aston Martin became a wholly owned subsidiary in 1993. Later acquisitions included the rental car company Hertz Corporation in

1994, the automobile division of Volvo in 1999, and the Land Rover brand of sport utility vehicles in 2000. Ford also purchased a significant share of the Mazda Motor Corporation. However, as Ford struggled in the early 21st century, it began selling these brands. Ford sold Hertz in 2005 and Aston Martin in 2007. It sold Jaguar and Land Rover to Tata Motors Ltd. of India in 2008. Ford started selling its Mazda shares in 2008 and completely divested in 2015. Ford In The 21st Century In December 2008 Pres. George W. Bush announced an emergency financial rescue plan to aid the “Big Three” automakers—Chrysler LLC, General Motors Corporation, and Ford—to prevent the collapse of the country’s struggling auto industry. The plan made immediately available $13.4 billion in government loans from the Troubled Assets Relief Program (TARP), a $700 billion fund approved by Congress to aid the financial industry following the subprime mortgage crisis. The loans would allow the auto companies to continue operating through March 2009, when they were required to demonstrate “financial viability” or return the money. An additional stipulation required the companies to undergo restructuring. The money was initially made available to General Motors and Chrysler; Ford purportedly possessed adequate funds to continue operations and, thus, did not immediately require government relief.

Able to avoid bankruptcy—for which both General Motors and Chrysler filed—Ford experienced increased sales and market share in 2009. The growth was partially due to the federal government’s “cash-for-clunkers” plan, which gave consumers up to $4,500 toward trade-ins of older cars for new fuel-efficient models. In addition, Ford adopted various costcutting measures and focused on stronger brands. In 2010 the automaker sold Volvo to the Chinese company Zhejiang Geely Holding. Several months later Ford announced that it would discontinue its Mercury line. However, as sales became sluggish, the automaker looked to expand its products. In 2016 Ford Smart Mobility was created to develop car-sharing ventures and self-driving vehicles, among other initiatives. The following year the automaker announced that it was increasing its line of electric cars. However, in 2018 Ford announced that it was phasing out all of its passenger cars, except the Mustang and Ford Focus Active. Instead, the company was going to focus on pickups, SUVs, and crossover vehicles.

2.4 MISSION, VISION AND VALUES OF THE COMPANY 2.4.1 MISSION Our belief: Freedom of movement drives human progress. 2.4.2 VISION Our aspiration: To become the world’s most trusted company, designing smart vehicles for a smart world. 2.4.3 VALUES Put People First Do the Right Thing Create Tomorrow Play to Win Be Curious Built Ford Tough

2.5 GOVERNING BODY AND TOP MANAGEMENT Management Team comprises eminent industry experts who bring a wealth of knowledge that help in strategic decision making towards improving operations and performance. Figure 2.5.1 Steven Armstrong

Jim Hackett

President, Changan Ford

President and Chief Executive Officer, Ford Motor Company

Mitch Bainwol Chief Government Relations Officer

William Clay Ford Jr.

Executive Chairman, Ford Motor Company

Stuart Rowley

President, Ford of Europe Vice President, Controller, Ford Motor

Cathy O’Callaghan

Company

2.6 ORGANIZATIONAL STRUCTURE Ford’s organizational structure is based on the need to control operations according to regional market conditions. Markets belonging to the same region have similarities used as basis for regional structuring. The following are the main features of Ford Motor Company’s organizational structure:

•

Corporate hierarchy

•

Regional geographic divisions

•

Global functional groups

Corporate Hierarchy. Ford has a traditional corporate hierarchy in its organizational structure. For example, Executive Vice Presidents report to CEO Mark Fields. Middle managers report to these executive VPs. This characteristic of Ford’s organizational structure supports traditional business management approaches that aim for effective top-down control. Regional Geographic Divisions. Ford has large geographic divisions in its organizational structure. Typically, global companies divide their operations into several regions per continent or subcontinent. However, Ford’s organizational structure is divided into only three regional geographic divisions that cover all its markets around the world. A potential effect of this feature of the organizational structure is the relative ease of integration of business strategies. Ford’s main regional geographic divisions are (a) The Americas, (b) Europe, Middle East, and Africa, and (c) Asia Pacific. An executive VP heads each division. Global Functional Groups. Ford Motor Company’s organizational structure also has functional groups, each of which represents a specific business function. A Vice President heads each of these groups

The main functional groups in Ford’s organizational structure are as follows: •

Global Manufacturing and Labor Affairs

•

Global Marketing, Sales and Service

•

Human Resources and Corporate Services

•

Quality and New Model Launch

•

Global Product Development

•

Government and Community Relations

•

Global Purchasing

•

Communications

•

Finance

•

Legal

•

Accounting

Fig 2.6.1

2.7 PRODUCTS/ SERVICES OF THE COMPANY Automotive Division In the automotive business Ford produces a variety of vehicles, among them cars for the small, medium, large and premium segment as well as trucks, buses, vans and SUV’s. The company's automotive vehicle brands include Ford, Jaguar, Lincoln, Mazda, Mercury and Volvo. It also owns a 33.4 per cent controlling stake in Mazda. Following the consumer trend towards smaller and more economical cars, Ford has increased its business in this segment. The automotive business is organized into five segments: Ford North America, Ford South America, Ford Europe, Premier Automotive Group (PAG), and Ford Asia Pacific &Africa and Mazda. In addition to manufacturing and selling cars and trucks, Ford also provides a variety of aftersales services and products through its dealer network. Financial Service Division The financial service division, Ford Motor Credit Company, was established in 1923 as a wholly owned subsidiary of Ford. It provides automotive financing for Ford, Lincoln, Mercury and Volvo dealers and customers. Ford Credit was established so Ford Motor Company dealers could provide competitive financing services to both individuals and businesses. The key financial services include: retail financing, wholesale financing and third-party claim management services. The revenues of the two divisions in FY 2007 were split as follows: automotive (89.5 per cent) and financial services (10.5 per cent).

2.8 COMPETITOR ANALYSIS- Ford’s main competitors include Toyota, Honda, GM, Nissan, and Chrysler. Ford is positioned as a low-cost competitor with a focus on function. Its competitors are primarily competing with Ford based on low-cost as Honda, Toyota, and

Fig 2.8.1

Comparing the results to its competitors, Ford Motor Co reported Total Revenue decrease in the 2 quarter 2020 year on year by -50.14 %, faster than overall decrease of Ford Motor Co's competitors by -37.86 %, recorded in the same quarter. With net margin of 5.77 % company achieved higher profitability than its competitors. Comparison on the basis Net Income, Ford Motor Co Net Income in the 2 quarter 2020 grew year on year by 645.33 %, while most of its competitors have experienced contraction in net income. The worldwide automotive industry consists of many producers, with no single dominant producer. Certain manufacturers, however, account for the major percentage of total sales within particular countries, especially their countries of origin. Key competitors with global presence include Fiat Chrysler Automobiles, General Motors Company, Honda Motor Company, Hyundai-Kia Automotive Group, PSA Peugeot Citroen, Renault-Nissan B.V., Suzuki Motor Corporation, Toyota Motor Corporation, and Volkswagen AG Group. The worldwide automotive market is highly competitive. Competition is likely to further intensify with continuing globalization and consolidation. Toyota, Honda, and Nissan have grown market share because of their ability to deliver products at lower prices, specifically s...