CORPORATE FINANCE

Corporate Finance

Corporate Finance

Ford Motors

The company Ford was founded in USA in 1903 by Henry Ford. A year later it opened the first foreign factory in Canada. Until today, the company produces American Ford models. Ford also had a manufacturing facility in France, called Ford SAF, where the models were created Comete, Vedette and Versailles. In the sixties there was closer cooperation between the two branches, German and English. They began to produce the same models, sometimes used different engines, like the Ford Capri. With time, the British betting began to lose its importance, so that today the European design offices are located in Germany.

Project Appraisal

In the social and economic tasks that our country has been engaged at the present stage of economic development and revitalization of the economy, is very important for all sectors of the national economy improving efficiency (Guilding, 2009). Hence the need for a thorough analysis of the financial situation of enterprises, to be in a difficult environment and convulsed our institutions, should strive to become more competitive and economically efficient, making better use of resources raise productivity work and achieve better results at lower costs. (Fay, Rhoads & Rosenblatt, 1971, pp 120 - 131)

Currently, the managers at Ford Motors have a theoretical base of the main methods used to achieve a higher quality of financial statements to optimize decision-making. The main objective of this analysis is to show the behavior of the projection made in detecting deviations and their causes, and discover the inner reserves to be used for further improving the management of Ford Motors.

The investment costs or the running cost total $ 10 million. Although the amount seems to be large, but Ford Motors is a huge organization, which can commence such projects. Ford Motors has a strong financial position and can opt for the new project as its working capital management is very good. The amounts required for day-to-day business operations will be fulfilled by the running finance available to the organization. However, the need for knowledge of key economic and financial indicators and their interpretation are essential in order to judge any project for being beneficial or costly for any organization. Ford Motors has to analyze the project thoroughly including the financial ratio analysis and investment appraisal (Guilding, 2009).

Planning and Making Financial Decisions

Decision-making for the purpose of project appraisal is a comprehensive task requiring extensive knowledge of the financials as well as the economic indicators. To be able to analyze financial statements and to make decisions is an essential requirement to comply with the quality of the information underlying these statements as:

Is effective and efficient.

Provide time to determine the legal and management requirements of the company.

Is credible and valid, relying on primary data collection classified, assessed and registered properly.

The accounting system established should generate accounting information that can be controlled and verified by others.

Many times the most frequent causes of financial difficulties are:

Excessive inventories: brings impairment losses, storage, obsolescence, ...