Ford Motor Company and Shareholder Value
Arvila, Brian D.
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During the previous summer I interned for Ford Motor Company, at the Dearborn Engine and Fuel Tank Plant (DEFTP). There I worked in the finance department, specifically in the controller's office. I began in mid-June and immediately started my major project, the plant's wall-to-wall asset inventory. This project included a physical inventory of the plant's assets, a check to see if the assets were properly depreciated, mapping these assets on schematics, and re-tagging them. This was a time consuming project. I worked on the project until the beginning of August. After I completed the wall-to-wall inventory, I did not work on any other major assignments. Some of my smaller assignments included helping to set next year's budget, and working on a paper cost analysis. I also did a lot of typical intern work, for example, helping others with their assignments or running papers to other buildings. In all I feel that my summer internship went very well. In my research section I explore how Ford is managing itself using shareholder value by comparing them to other automotive corporations: General Motors, Daimler-Chrysler, Honda, and Toyota. This illustrates how Ford is accomplishing its goal of running the company with the shareholder foremost in mind. The main driving force behind Ford's decision making is the idea of shareholder value. Ford will not make a decision to do something unless it ·brings value to their shareholders. They evaluate how much value they are creating for their shareholders by looking at their own ratio, shareholder value added (SVA), and the common ratios return on assets and return on equity. They use these variables because the company feels they show how Ford is spending its shareholder's money wisely.