• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16
  17. 17
    17
  18. 18
    18
  19. 19
    19
  20. 20
    20
  21. 21
    21
  22. 22
    22
  23. 23
    23
  24. 24
    24
  25. 25
    25
  26. 26
    26
  27. 27
    27
  28. 28
    28
  29. 29
    29
  30. 30
    30
  31. 31
    31
  32. 32
    32
  33. 33
    33
  34. 34
    34
  35. 35
    35
  36. 36
    36
  37. 37
    37
  38. 38
    38

Ford Company Analysis - corporate structure and financial analysis

Extracts from this document...

Introduction

´╗┐FORD MOTOR ? company analysis ?PROFITABLE GROWTH FOR ALL? Helena Kiviniitty Jakob Caculovic Milos Grubic December, 2012 Contents Introduction 1. Analysis of corporate governance 1.2 Charter of the Audit Committee 1.3 Charter of the Compensation Committee 1.4 Charter of the Finance Committee 1.5 Charter of the Nominating and Governance Committee 1.6 Charter of the Sustainability Committee 1.7 Corporate Governance Principles 1.7.1 Main idea 1.8 Board of Directors Structure and Operations/Board Compensation 1.8.1 The process of selection and the size of the board 1.8.2 Qualifications 1.8.3 Independence of Directors 1.8.4 Board Committees 1.8.5 Compensation of Board 1.8.6 Director Orientation and Continuing Education 1.8.7 Meetings 1.8.8 Responsibilities and Duties 1.8.9 Conflicts of Interest and Concern Reporting 1.9 Annual Performance Evaluation 1.9.1 CEO Alan Roger Mulally 2.Financial statement and ratio analysis 3.Estimation of the cost of equity, debt and the cost of total capital 4.Evaluating the firm?s current investments 5.Where and how firm get its current financing? 6. Estimation of the optimal financing mix with an indication of whether and how the company should move to the optimal capital structure 7. Evaluation of Cash Redistributions to Shareholders 6.1 Main Competition Analysis References Introduction Ford Motor Company, a global automotive industry leader based in Dearborn (suburb of Detroit), Michigan, manufactures or distributes automobiles across six continents. With about 168,000 employees and about 65 plants worldwide, the company?s automotive brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company. In the past it has also produced heavy trucks, tractors and automotive components. Ford owns small stakes in Mazda of Japan and Aston Martin of the United Kingdom. 1. Analysis of corporate governance The Board of Directors of Ford Motor Company has adopted corporate governance practices to promote the effective functioning of the Board, its committees, and the Company: 1. Charter of the Audit Committee 2. Charter of the Compensation Committee 3. Charter of the Finance Committee 4. ...read more.

Middle

Shanks 19 Relationships Chief Financial Officer, Executive Vice President, Chief Accounting Officer and Chairman of Global Risk Management Committee 59 Mark Fields No Relationships Chief Operating Officer 51 Michael E. Bannister 47 Relationships Executive Vice President, Executive Chairman of Ford Motor Credit Co and Chief Executive Officer of Ford Motor Credit Co 62 Insiders At Ford Motor Co (F) Name (Connections) Board Relationships Title Age William Ford Jr. 206 Relationships Executive Chairman, Chairman of Finance Committee and Member of Sustainability Committee 54 Alan Mulally 25 Relationships Chief Executive Officer, President, Executive Director and Member of Finance Committee 66 Michael Bannister 47 Relationships Executive Vice President, Executive Chairman of Ford Motor Credit Co and Chief Executive Officer of Ford Motor Credit Co 62 John Lawler 28 Relationships Vice President, Chairman of Ford Motor China and Chief Executive Officer of Ford Motor China 46 Edsel Ford II 98 Relationships Consultant, Director, Member of Finance Committee and Member of Sustainability Committee 63 Other Board Members On Board Name (Connections) Board Relationships Primary Company Age Homer Neal 40 Relationships Ford Motor Co. 66 Ellen Marram 239 Relationships KBL Healthcare Acquisition Corp III. 63 Richard Manoogian 138 Relationships Richard & Jane Manoogian Foundation 75 Stephen Butler 36 Relationships Cooper Industries plc 64 Irvine Hockaday Jr. 73 Relationships The Estée Lauder Companies Inc. 75 John Thornton 371 Relationships Laura Ashley Holdings plc 58 Kimberly Casiano 28 Relationships Mead Johnson Nutrition Company 54 Gerald Shaheen 131 Relationships U.S. Chamber of Commerce 65 Richard Gephardt J.D. 144 Relationships The Boeing Company 71 Anthony Earley Jr. 256 Relationships PG&E Corp. 63 James Hance Jr. 98 Relationships Family Dollar Stores Inc. 67 William Helman IV 135 Relationships Greylock Partners 54 Jon Huntsman Jr. 47 Relationships Huntsman Corporation 51 William Ford Sr. 21 Relationships Ford Motor Company Of New Zealand Limited 1.9.1 CEO Alan Roger Mulally Allan Roger Mulally is the President and Chief Executive Officer of Ford Motor Company. ...read more.

Conclusion

Date 3. Avg. # of stocks 4. Amount $ (1x3) 0,05 Jan 27 48 Mil. 2,4 Mil. 0,05 Apr 30 48 Mil. 2,4 Mil. 0,05 Aug 1 30 Mil. 1,5 Mil. 0,05 Oct 31 44 Mil. 2,2 Mil. This dividend policy showed to be good, especially because (on purpose or not) it lowered the effect of the economic depression in 2008 and the following years. As we can examine the dividend payout rate, at least we can analyze FCFE- free cash flow for equity. 2008 2009 2010 2011 Net Income -14.571 2.699 6.561 20.319 Depreciation 12.421 6.931 5.584 4.256 Capital Expenditures -783 -4.179 -3.230 -4.029 Change in Debt -14.334 -21.755 -28.453 -4.500 Change in WC -3.521 5.631 -16.369 -1.624 FCFE -13.746 -21.935 -3.169 17.670 From table we have constructed and calculated FCFE we can conclude that Ford reasonably haven?t paid out dividends in previous years, and also we find very positive signal for investors that after marking positive FCFE in 2011 they have declared and paid dividends in 2012. 6.1 Main Competition Analysis The Ford?s biggest competitors are General Motors and Toyota Motors. General Motors (000 $) 2011 2010 2009 1. FCFE 9.190.000 6.172.000 (4.297.000) 2. Dividends paid 916.000 1.572.000 97.000 3. Buybacks 0 1.462.000 0 4. Payout ratio (2+3/1) 9,96% 49.15% -2.25% Toyota Motors (000 $) 2011 2010 2009 1. FCFE 3.446.000 4.925.000 2.242.000 2. Dividends paid 1.905.000 1.700.000 1.846.000 3. Buybacks 455.000 345.000 110.000 4. Payout ratio (2+3/1) 68,48% 41.52 % 87.24% As it can be seen from the tables GM and Toyota have paid their dividends regularly and didn?t change their policies. Nevertheless they did so from different reasons. Toyota from success in US market in years prior and during the crisis. Toyota has with years become world?s largest car manufacturer, so it has been reasonable for them to maintain their dividend policy. GM on the other hand went thru the hardest part of their history. Besides government back-ups they had to sell their brands Saab and Hummer and go through a restructuring period. Selling the assets made it mandatory for them to return some investments to the investors. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. HMV Group plcs environmental and strategic position

    If test successful create/purchase system for customers download and buy digital books online and in store. 24 - 30 24 - 36 Modified Mission Statement The Group has a very focused strategy for the turnaround of the business over a three-year period to 2009/10.

  2. Advance Professional Development

    When a person plan something i.e. his career, education, journey etc, it is required to have a success criteria for the evaluation of his success towards achievements of his objectives, and how much it is needed and if he doesn't achieve what was required then what was the reason behind this failure, indentify those and ways to overcome on those weaknesses.

  1. Leadership styles and analysis of my leadership skills.

    see negative things or perceive bad in any situation has made his cheerleader style become a poor contingency planner of leading a team or project.

  2. Project Management - planning an all inclusive carnival concert in the North Western end ...

    This is off low risk. Stage 3- Executing In order for the event "Soca In D Sun" to run smoothly, it is necessary to monitor all the work that is being done from the planning stage. In the execution phase it is important that all work go according to plan.

  1. The tasks which people carry out and the contexts in which they do so ...

    the issue arose as to whether there was a Contract of Employment between the Applicant and the Methodist Church. The claimant tried to declare that he as a minister of the Methodist Church who had been received into full connection had a contract of employment with the church.

  2. This essay discusses that the importance of ethical principles by applied globally by multinational ...

    The tag on their products not only instructs consumers on how to clean their clothes with less environmental impact; it also encourages them to donate used jeans to Goodwill rather than throwing them out.

  1. Business plan for Laundry Toaster laundry dryer.

    Creative Thinking. The process of generating ideas, which frequently emphasizes: 1. making and expressing meaningful new connections, 2. thinking of many new and unusual possibilities, and 3. extending and elaborating on alternatives. 1. Design for Reliability. Designing the product so it works the first time, every time for the life of the product (decreasing cycle failure).

  2. Fenix del Sur, LLC is a regulated liability company that sources and sells a ...

    Also the most important threat would be that the company could also lose customers that held them to a certain standard. In the case the contract indicated that it would buy at 10% below the company?s current prices. This plan may generate sales revenue, but it may not necessarily create gross sales profit due to the decreased price.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work