Henry Ford's Business STRATEGY made FORD a billion dollar company : Business Case study
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- Опубліковано 20 вер 2021
- thethinkschool.com/sp/communi...
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
drive.google.com/file/d/13toi...
Fredrick Taylor's book on Scientific Management
drive.google.com/file/d/1qR3y...
The Same Old Principles in the New Manufacturing
hbr.org/1988/11/the-same-old-...
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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.😍😍😍😍😍
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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
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 💯
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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 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
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.
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.
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.
Ganesh you had covered many principles of management in which i faced difficulty in my class 12
Hats of you brother, very well explained.
This is great stuff . Shorter than your usual videos but added lots of insightful messages 👍
goated video, helped me for an exam, rly thanks man, you're a savior
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
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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
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.
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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
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 ' .
The worst part is that students are still made and trained to work like workers in a ford factory in the 21st century.
What a channel! This is the first channel on UA-cam where I eagerly wait for new videos. 🙏❤️
This is the best automobile series on UA-cam. Keep them coming.
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 ?
Thanks for the video you're improving me daily learnt a lot today! Thanks for the book mention also (wealth of nations) would love if you make a particular video for book recommendation
Thank you so much Think School, you have made my knowledge too broader. What a storytelling skill sir 🙏
Nice case study again. Love to watch it ❤️ Really learn alot and would like to implement it in my 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
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
Thank you Ganesh sir and your team for sharing another most valuable Management Concept... Big Fan of Think School Videos.
Doesn't matter where we study, if the teachers teach like you. keep up the good work..... lots of love and Respect.
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
Thank you for another wonderful case study with your excellent presentation skills!
Amazing video! Please do a case study on Crossword Bookstores and on Cafe Coffee Day. I would love to hear your perspective on it! 😃
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 😉
Henry Ford, such an forward thinking man!! 💪🏻
Its quite refreshing to know such stories. kudos man
One of the best video in recent times. So many learnings here.. Thanks man
I loved the way you research in depth and making such knowledgeable videos. Can you research something related to Architecture or Interior Design business techniques
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
The video quality is improving and content is top notch as always, all the best buddy 👍🏻
Each of your videos add immense value to our knowledge base..needless to comment on your presentation and communication skills🔥
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.
love this guy.. I am senior VP of reputed company but learn lot from this guy tutorial.. THank You
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
It's a pleasure listening to your case studies. Thanks a lot.
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
These is a goldmine keep it up sir, much love from Tanzania.
Hi...i tried washing dishes now that way with a stop clock on
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 :)
These videos are gem!
Are you guys hiring?
Not only the content you present is refined, the visualisation is so apt and engaging.
thanks a lot. you aren't only providing such an amazing information but also improving our English skills also. i have learned so much of vocabulary from your videos only. your English accent is really wonderful. keep this wonderful work going like that.
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 .
One common word in your every video...-
"Billion dollar company"
Thanks Bhai Aisi Video banane ke liye...
Aap aise hi lage rahiye....
Back to the initial ambience and setup!!
This seems good ✅
Man this channel is underrated it should hit 3 million or more
Incredible case study. Loving all your stuff. ❤️
who are you
Taylor's principals of management, every commerce students nightmare!! Jk😂😂😂😂
They're highly relevant though!!💪🏻
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...
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.
Love your videos good job...could you also prepare a video on the biggest private ltd companies in the world and how they work...koch industries, cargill etc.
Sir This was an amazing case study on Ford sir when the next video of automobile series is coming
Throughout all your videos i heard , i loved this very much.Thanks for introducing Ford's strategies for us...🙂
This is undoubtedly the best video of ur channel till date! I was "wowww!"ing throughout the video!!!
it will be helpful to the young entrepreneurs,if the business case study of tech business 🙂
One question. I watch each and every episode since I've joined this channel. I came to understand that the material attached to it has lots of details and multiple resources you're using to make your understanding clear. I'm surprised to know that how is it possible in the short time to do that much detailed analysis and bring it up in a high content quality video? I would love to learn from you. I want to apply your principals in my study for personal growth.
Thanks and lots of love to this amazing channel ❤️
Its a result of 12 hrs of reading and researching every day for 7 days a week bro
@@ThinkSchool nice bro....you seem very passionate about this. I hope you are generating enough revenue from this, because CPM for Indian youtubers is very low.
@@ThinkSchool First of all. Thank you so much for replying. I wasn't expecting that. You've made my day. ❤️ You're doing a really great job. Even I'm not a in a business, I'm learning a lot from you rather than a college that teaches us some too old outdated syllabus. I like your content so much that I've recommended this channel to my sister who is pursuing BBA.
Thanks again. Keep doing this great stuff!
@@titan2984 True..UA-cam doesn't pay much.. thankfully sponsors keep supporting and you guys are kind enough to understand that ❤️
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!!!!!
The principle of scientific management is taught in grade 12 commerce and it is such a valuable lesson.
didn't once leave the video without a like...all my love to ThinkSchool!!
Awesome... When I watch your video always knowledge is add to my Brain... Thanks
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.
Dude, Our management and principles sir is using this video to teach us management. Congrats you made it ✨
Great study brother!!!
Nice work 💪👷👏👌👍
Superb. Thanks for sharing such knowledge. You guys are amazing. keep up the good work.
Worth watch....always loved your videos🤟
He was really a great genius. Thank you bro for bringing good content. Loved it absolutely 😍
You are underrated !! So good you content is ❤️.
Thank you for creating such informative content 🙂
Thank you very much sir for your amazing helpful videos😄👍
And sir if you can, please make a case study on the new start-ups like messho, apna etc...
Bty thanks again 😇
Great content @Think School
Lots of learning
I want to highlight a key point, I think you forgot to mention a key word "ASSEMBLY LINE" which is very important cause Henry Ford made it popular. This term must have been mentioned although you explained it in brief.
That's the third segment of the video.
OMG That music!!.
Great work
nice info bro with good quality of explanation... Just beauty....
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 🙏🙏🙏🙏
Hi Ganesh..would you consider doing a video on medical entrepreneurship..it would be an eye opener for medicos.
Great work efficiently explaining
amazing video bhai..loved your content...
JUST LIKE HENRY FORD YOU ARE REVOLUTIONISING THE LEARNING INDUSTRY.
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..🙏🙏
Amazing content and learning. More power to you
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!
Love your contents brother. Pls make a case study in revolution of Textile industry
Wow brother...this was exceptional analysis
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.
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.'
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.😂
Loved the content but how can we put this in service industry..can u pls share any of ur previous video which can answer my query
Always a good learning platform ❤🙏
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 :)