Henry Ford's Business STRATEGY made FORD a billion dollar company : Business Case study
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- Опубликовано: 4 окт 2024
- thethinkschool...
Video Introduction:
Henry is Ford is one of the greatest businessmen of the 20th Century and the most Astonishing thing about him is that way back in 1900s in spite of having just 28,000 dollars investment he turned the Ford motor company into billion-dollar within just 22 years.
And not just that, while every company was paying its workers 2.5 dollars a day, Henry Ford paid his workers 5 dollars. But, in spite of double pay, while other car companies sold their cars at 700 dollars, The Ford Model T was being sold just 360 dollars! Henry ford pay his workers 100% and yet he kept the costs of his car at 50% lesser than the competition.
And this Golden equation turned Ford motors into such a dominating force in the automobile industry, even today, the Ford model t is one of the highest sold vehicles in history with a sale of 16.5 million units!
The question is how did Henry ford manage to achieve something so incredible, what were his business strategies, and as future business leaders how can we apply these lessons to our company?
This is a story that dates back to 1903 America and during that time, Cars were extremely costly so only Rich people could afford them. It was almost like owning an Ashton Martin in today's world.
This was a time when 500 dollars a year was considered to be a handsome income! And at the same time, the base price cost of a car was 850 Dollars! In fact, when Henry Ford introduced the Model T even that started with a base price of $825 and with such a small market, Ford had a lot of competition with Chalmer Cadillac and 10 other companies fighting to capture the market.
This is when Henry Ford realized that if he keeps selling cars to the rich, with the existing competition he will never be able to scale up! So he decided to sell cars to the common man and tap into the lower segments of the market! But the biggest challenge here was that it was practically impossible to generate profit if the cars were sold below the price point of $600 dollars!
and yet Henry ford was such a Genius that from 1910 onwards, suddenly, Year on year, the price of a Ford car started to drop drastically! and they started with $950 and within 3 years, they were able to generate massive profits even at $600 and not just that by 1917 the price of the Model T had fallen by 60% to just $360 dollars and the sales skyrocketed by 4100% making Ford, not just the biggest but also the most automobile manufacturer in the world! This video elaborates on the strategies that made this possible.
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Study Materials
Wealth of the Nations book
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Fredrick Taylor's book on Scientific Management
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The Same Old Principles in the New Manufacturing
hbr.org/1988/1...
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#thinkschool #henryford #fordmotors #manufacturing Credits: CNN-News 18, WION, NBC News, Money control pro, Business standard, TV18,Business Today, ABC news, CNBC, ET now ,Bloomberg originals, Financial Times, DW documentary, AL Jazeera English, BBC news, Firstpost. Fair use - This video is for educational purposes only. All materials used in this video, including images, audio, and video clips, are the property of their respective owners and are used here under the doctrine of fair use. This video is intended to provide commentary, criticism, research, and education on the subject matter. We believe this constitutes a fair use of any such copyrighted material as provided for in Section 107 of the US Copyright Law.
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Please reply!!!!!
Sir how can division of labour lead to reduction of production cost
Loved the learning you shared. Definately it will help us in our case. Thank you for creating such gold like content. ❤
Thank you for sharing such videos.
10:38 virtuous cycle
Henry Ford was an American industrialist, business magnate, and founder of the Ford Motor Company, and chief developer of the assembly line technique of mass production. Great to see his billion $ process. Thanks to think school. for making the video
but the same business strategy made ford to fail in Indian market and they are now gonna shut their business in India after the MNC couldn't compete with the Indian MNCs in India for the car market!!
@@theme6260 Bro india and america are different. Not just geographically but also financially.
Dude assembly line concept was the brain child of Japanese which they adapted
@@QuickRounders yeah budget >>>> safety
Normal businessman : follows the system
Great businessman : makes their own system and integrates the positives of others
Love your work 👍👍
Invented Lean Management System
Made vehicles for nazis too. Greeeat
Henry Ford is a great businessman
What Ganesh has been doing is really admirable. His entire aura and narration attracts me to watch each video. Each time the video keeps up to the expectations. Keep the good work up!
but the same business strategy made ford to fail in Indian market and they are now gonna shut their business in India after the MNC couldn't compete with the Indian MNCs in India for the car market!!
U like nazis?
@@theme6260 iuo
This is because Henry Ford is a great god to talk about
Hii I would like to add a point. Henry Ford in late 1921 proposed an idea about a currency that was backed by energy. He said this idea could even stop wars from happening. 100 years later we are using Bitcoin which serves the same purpose :). He was even referred to as Crazy Henry, What else could normal people call a man who has these kinds of wild thoughts.
Also, It is said that Alfred p solace who was the chairman of general motors introduced Dynamic Obselesnce to bring more sales to the company.it worth noting that he was intimidated by the growth in sales of model T. This dynamic obsolesce was later evolved into Planned obsolesce.
The video is nice as usual.😍😍😍😍😍
ruclips.net/video/NgNjFgcHhgs/видео.html
Not even 10% of the world had access to electric power 100 years ago so his idea of crypto currency was kinda meh
He actually brings only the points which has factual evidence.
If he had invested in cryto back then... everything would hv been wiped off in great depression...money can't be created nor destroyed..it only moves from one hand to the other😂
Alfred P. Sloan and Henry Ford are pure gods
It's all about innovation. Ideas like this have changed our lives. Innovation and free thinking should be encouraged. Our country is at juncture where similar ideas are very much needed.
but the same business strategy made ford to fail in Indian market and they are now gonna shut their business in India after the MNC couldn't compete with the Indian MNCs in India for the car market!!
@@theme6260 bruh
I am not a business student but by these videos, I have learnt many key concepts for business and management
ok, now tell me how a induction motor starts...
@@ShyamS-sx7xt by Rotating Magnetic Fields then Generation of Emf in Rotor Winding and thenGeneration of Magnetic Poles in Rotor and the rotor rotates. I got the joke!!(but EMI and AC atta hea bhai)
I had Adam Smith's, Fredrick Taylor theory in one of the management subjects during Engineering which I didn't understand a bit, hope I had teacher like you during my engineering 😅
Which college u were in?
@@TanishqMishra_IIT-R RV college of Engineering
Mee too...these topics looked so bland. Now looking at Taylor scientific management..Adam Smith etc. I'm intrigued.
@@gayatricasey6618 Me too 💯
ruclips.net/video/NgNjFgcHhgs/видео.html
I wish Henry Ford is still alive. Then there would have been a new innovation in automobile industry and a tremendous growth in Ford Motors.🚗
Long story short: The efficiency and the dedication of team is the key
The way you(ganesh brother) express the content is absolutely amazing.
I hit the like button immediately after opening any new video from ThinkSchool because he and his team really deserve it for the quality content they bring in everytime.
henry Ford's idea was just like the MacDonald means one worker fries the bun ,one person apply potatoes ,one person garnish it and one person assemble all the burger.
Man you are just.. I've no words for you. I'm doing my MBA in Marketing and watching your videos is not only making me learn but also making me explore my area of domain. Thank you so much for all the affords you are putting. Keep posting such great videos. #Think #School
ruclips.net/video/NgNjFgcHhgs/видео.html
An amazing thing happened today:
Your this video was used as a reference in my college today to teach us Principles of Management.. Amazing I was happy because I had already seen the video .. 👍🏻 Keep up the great work...
Wow that's sweet ❤️❤️ which college ?
Man this channel is underrated it should hit 3 million or more
Doesn't matter where we study, if the teachers teach like you. keep up the good work..... lots of love and Respect.
Ganesh you had covered many principles of management in which i faced difficulty in my class 12
Hats of you brother, very well explained.
Many points to take from this video, the best one is - Always be open to learn from industries even if they do not belong to your domain
goated video, helped me for an exam, rly thanks man, you're a savior
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previous method was- soak..wash- rinse one by one vessel completely.
New method- soak all together, wash all together, rinse all together.... completely in a lot.
It worked saved 17 minutes.❤️
Soak all - soap all - rinse all
That's how most of us wash dishes every day :)
also the fact that the workers on the assembly line only has a certain time limit within which to complete his task or they will bottleneck the system by "holding up" the line.So workers learned to work faster and smarter.That inturn increased the whole efficiency of the operation.
ruclips.net/video/NgNjFgcHhgs/видео.html
And, I also read that since he doubled the wages of his employees, and the cars cheaper, a lot of his employees started buying the cars. Which further boomed the business.
What a channel! This is the first channel on RUclips where I eagerly wait for new videos. 🙏❤️
Yes it's 100% true that Henry Ford was a man of Faith and Persistence who didn't even go to highschool and was known as ingnorant . But with his wit and True entrepreneur spirit he made one of the biggest Automobile Company .
But as he has gone the spirit of the company also did the same . As a result FORD is failing continuously in various markets .( Recently in india🇮🇳 )
So the conclusion is : 'Change is inevitable ' .
One more thing which helped him to make ford world leading car company was that... He reduced the working time to 8 hours from 9 hours ... so that there would be 3 shifts / day....
Which helped him to produce more cars...
The worst part is that students are still made and trained to work like workers in a ford factory in the 21st century.
This is the best automobile series on RUclips. Keep them coming.
I'm very happy Ganesh Anna ! Hope i had my classes like this.! But i ll make it possible to my students to have class like this. #Acharyadevobhava
Hey Ganesh!
Absolutely love your videos and have been addicted to them ever since I can across this channel😍.
I just cannot imagine the time and the effort it takes to make such great content. Keep up the good work!
One suggestion if possible could you make a video of how exactly billionaires create value for people and why do people perceive their value to be really high?
Ex: Ambani, Adani, Ramakrishna Damani etc - why is their perceived value so high?
Thank you
JUST LIKE HENRY FORD YOU ARE REVOLUTIONISING THE LEARNING INDUSTRY.
I m an MBA, even our Lecturers failed to explain then like u.. in 2006-08 .. if we had these videos at that time.. we would have blessed.. still thank tons for ur good efforts
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Amazing I also just started trading with Mrs Christiana, she is the best at what she does with an initial investment of $14000 i made up to $34230 in just a week of trading with her, her strategies are mind blowing.
Henry ford not only revolutionised ford motor but also reved up the industrial Revolution.
He was the one who brought assembly line into manufacturing . That led to huge pruductions of goods worldwide in other goods .
Hi Ganesh, I would be very happy if you can bring out strategy of Bharatpe as well which is currently under losses, but has huge potential
The principle of scientific management is taught in grade 12 commerce and it is such a valuable lesson.
Taylor's principals of management, every commerce students nightmare!! Jk😂😂😂😂
They're highly relevant though!!💪🏻
Henry Ford, such an forward thinking man!! 💪🏻
How to watch your video
1st Download the subtitles
2nd find the meaning of unknown
Words
then watch the video
It takes 1hr extra effort but the knowledge you provided is your video is worth , thanks bro carry on
I am owning a Ford Figo Car purchased just 2 years back.
Now I am worried about its service cost and spares availability.
Resale value is also gone 😣
Ford India already gave a official press note that they will sell spares and service centers are available...Nd they are going to continue their sales with endeavor and ecosport ....don't worry dude
One common word in your every video...-
"Billion dollar company"
Thanks Bhai Aisi Video banane ke liye...
Aap aise hi lage rahiye....
i accidently saw one of this videos of think school and from then it always gave me a fascination to learn more about business case studies this is just op
love this guy.. I am senior VP of reputed company but learn lot from this guy tutorial.. THank You
Hey Ganesh , 14 principles of Management by Henry Fayol are great and one em is Principle of Division of Work. Every Entrepreneurs should learn them.
Here is my observation and feedback
You look good you speak good and you present the information in a very organized manner. The English you are using is also easily understandable for common people. The information and topics you are presenting are very important and nice.
I don't know for sure but many people will not get this. The things you are telling are of utter importance. They are very solid and fundamental.
Right now I am watching all your previous and latest videos..... Trust me, you are doing great, keep on and go further.
Your work is the entirety new dimension for many people to think upon.
didn't once leave the video without a like...all my love to ThinkSchool!!
There hasn't been a single video on this channel jisko Maine like Nahi kiya hai....
Because the content and way of delivering the content is awesome!!!!!
These is a goldmine keep it up sir, much love from Tanzania.
Dude, Our management and principles sir is using this video to teach us management. Congrats you made it ✨
These videos are gem!
Are you guys hiring?
Not only the content you present is refined, the visualisation is so apt and engaging.
End result was to focus on middle class. So statistically and well informed information decision made it happen.
Literally ur video is better than my College lecture
We should learn from sir henry ford , to take care of the workers they r the only one who can build the empire
I am not understanding......
In the previous video, it's written in the title itself, TOYOTA is beating FORD but in this video it's written FORD is the most valuable company in the automobile industry.... How?
Video was really nice though, those lessons were the best part. Hats off to Henry Ford!
1. Always learn from other industries even if they don't belong to your domains - because those industries might be basic to them But might be revolutionary for your industry.
2. Two ways to improve your product - Extremely superior product or Change your target audience 12:54
3. Read the study material from description box
If you want to know how great Mr Ford was I would recommend the only book you need in your life " think and grow rich ."
Nice.. But you should have covered one last part that added to the overall productivity of Ford i.e. the black colour.
Model T was available only in black colour because black dries fast. He could make and push out more cars in less time.
Amazing video! Please do a case study on Crossword Bookstores and on Cafe Coffee Day. I would love to hear your perspective on it! 😃
❤️ Next topic: How LinkedIn become such big❤️
We need more people like him guys let make 1m before the year end .
I don't want to watch it as my jee advanced exam is in next month but still I can't resist my finger from clicking on it
I haven't seen a RUclips channel who have a content like this channel
We need a case study on Think School.
Hello ganesh, I just love your content but I wanna request you to make a video on China's evergrande as it may broadly affect the markets and investments of many retailers. I hope you provide some really valuable insights about it and how are they(management) trying to tackle it and whether they are getting any support from the government.
Will try :)
Thank you Ganesh sir and your team for sharing another most valuable Management Concept... Big Fan of Think School Videos.
*Henry ford the visionary of today's mass automobile industry ❤️💯*
Please make a podcast for your business case studies. It will be a much more better experience.
Ur videos are 100000 times better than the MBA lectures of my college
How this channel grew should itself be a case study. - your one of the early subscriber
Class 12 Business Studies
Chapter 2 ( Principles Of Management )
Same Is Here There
Now a days concept changed to Cellular Manufacturing wherein each labour do job from start to end producing small quantity each lead to
1.Reduction in Lead time
2.Less waste
3.Easy Supervision(Cut down in Labour Cost)
4.Easy check on efficiency of labour
5.Can produce in small qty with same rate(Say if we need only 10 units for that whole machine need to run again)
6.Motion Study is best here
Also it has drawbacks too many entity refuses to use cellular manufacturing
1.Need more space
2.More Investment as need more smaller machines
Ford India needs this right now!
That means the cost of raw materials wasn't too much, because in any way, you cannot sell things at a price lower than total cost price of raw materials.
Thanks for that subtle soft background music. Now I know where my tears come from.😂
Wow what a amazing coincidence in evening I was searching for a movie on henry Ford and just few hours ago I had search for "think school henry Ford" to specifically know about his business ideas and I didn't find him on your channel so I wished that you should made video on him and I am seeing now that you have posted the video 😁😁😁😊😊😊😊😊 I Love your videos 😉
One of the best video in recent times. So many learnings here.. Thanks man
Hi think school, amazing as usual. I have a small request. Can you please do videos on biotech and phrama companies too. Atrovastatin, the block buster drug of pharma from pfizer, also the making of recombinant DNA insulin by genetech and elilly. The Pharma wars etc. J&J Has been a brand since a century and above.. please... atleast two videos from this industry..🙏🙏
Hi Ganesh..would you consider doing a video on medical entrepreneurship..it would be an eye opener for medicos.
Back to the initial ambience and setup!!
This seems good ✅
Great video
Sir This was an amazing case study on Ford sir when the next video of automobile series is coming
What a coincidence yesterday in my master's lecture my teacher discussed all these things and I am watching this video today if this video came on Monday I would have showoff in my lecture
This is a great video. Keep up the good work. Any presentation such as this which talks about successful entrepreneurs should be encouraged because the video in turn encourages budding entrepreneurs. I am a business entrepreneur for nearly 40 years and if I hear of someone thinking of pursuing their business dreams, I encourage them. I recommend reading Henry Ford's auto biography published whilst the T model was in production. 'My Life My Work' It is available on line in pdf form. A great insight into his thinking. Innovative and driven people like Henry Ford, usually come from outside the industry, though in this case, the industry at that time virtually did not exist. In his autobio, Henry mentions one comment by Thomas Edison to him which motivated Ford and helped him to focus his direction whilst still figuring out his idea for a reciprocating gasoline engine. There is a saying which has some truth to it - 'Changes within an industry usually come from outside the industry.'
By the end of the nineteenth century , over 2000 car companies in the USA were reduced to mere 3 due to pricing strategies followed by most of them, it's an amazing feeling when you realise that your one strategy turned out to be game changer and things weren't the same after that.
Sir please make a video on startup's like how to setup, precautions, tips and tricks, team building, funding, how much equity that can founder hold and loose in different rounds of funding, acquisition, legal aspects etc... please 🙏🙏🙏🙏
Please have a case studies on Advertisement making sector - how this industry is now has becamed most important sector of business.. for eg. Ogilivi
Please make a video on freshwork that got listed on nasdaq recently and let us know how can we buy their shares
You are a legend my friend. Love from Sri lanka 🇱🇰
This is undoubtedly the best video of ur channel till date! I was "wowww!"ing throughout the video!!!
Great study brother!!!
Nice work 💪👷👏👌👍
Thank you so much Think School, you have made my knowledge too broader. What a storytelling skill sir 🙏
Paid more to workers and produced low cost product. The low cost product was in demand and hence sales rocketed.
Expanded market by tapping lower segment market.
Find ppl with special skills and divide the work among them this will lead to increase in productivity.
The best way to achieve a needed target incentivise the employees and increase the productivity by scientific methods.
Observe the productive methods of other industries and try to implement into your own industry.
Always try to improve your assembly line by innovative methods.
High efficiency-low cost-more demand-more orders-mass production-lower cost-High efficiency.
Lemme know if I missed anything important :-)
He- learn from Henry Ford
Le me - remembers Ford vs frerrari 😂😂
Please make a detailed case study on the financial crisis that is on its way to hit the world China evergrande debt crisis
Bro can you please make a video on successful Business firms that went to rock bottom and again stood best in the market .
You Case Studies are always having good content to learn and focus on the principles, aspects, perceptions and values what we can apply in today's world.
Ganesh Bhaiya video bohut acha laga😊. Pls akh video banao nah, ke Ford later on kasa fail hua automobile industry meh. Like the drawbacks, even after such master plan.
Please make a video on pharmaceutical industry
Awesome... When I watch your video always knowledge is add to my Brain... Thanks
This is great stuff . Shorter than your usual videos but added lots of insightful messages 👍