Fordlandia Feasibility Report

Fordlandia Feasibility Report

Introduction

Henry Ford is one of the greatest names in the automobile sector. It was in 1920 when Henry Ford was enjoying the boom period of the automobile industry. The company sold a great number of cars and was using a large amount of rubber to make tiers for the cars. The company was facing monopoly of the rubber production in East Asia and was costing too high for the Ford. Henry Ford in order to avoid the purchasing cost had an idea to produce rubber for its automobile company. He had an idea to buy a piece of land in the center of the Amazon Forest which was considered as the natural habitat of rubber plantation. He bought a six million acre land for producing rubber in the colony which belonged to America. The decision became an unsuccessful event for Henry Ford as it failed to deliver the expected outcomes. The feasibility report of Fordlandia will try to find out the reasons that proved as wrong decisions taken by Henry Ford. It will give an analysis of the economic, social, natural, ethical and moral factors that led to the failure of the Fordlandia project.

Discussion

According to Rushbhy, (2010) Henry Ford wanted to break a new dawn in the automobile industry by using integration of agricultural and manufacturing units. He wanted to make his employees capable of buying cars that were made by themselves and wanted the integration to lead towards higher wages. In 1927, when Henry Ford bought the land in Amazon to in order to produce the raw material rubber which was used in the manufacturing of the car tires. Henry Ford was planning something geographical in order to eliminate the competition and monopoly of the rubber producers in the East Asia. He decided to take this step because he wanted to control the cost that was increasing due to increase in the prices of raw material in order to make the tires. He also wanted to achieve success in the agricultural sector so that he can also fulfill his social dream which was to provide a better standard of living to the poor people of the Amazon. Although Henry Ford had numerous amounts of social and economic successful projects but he Fordlandia project did not work out according to the dreams of Henry Ford who was admired by the people for making best decisions. There were several reasons for the failure of the Fordlandia project. The project mainly concentrated on achieving the social results more than the financial results from the project. According to the analyst's view first reason for the unsuccessful Fordlandia project that it was a step towards setting up an economic enterprise for producing a product. The lack of consultation from agonists or any botanists took the step of buying the land and setting up the manufacturing plant in Amazon. Another reason was too much confidence about the decision made by the owner and not giving importance to consultation with any of the ...