Ford Motor Company May 1902

Ford Motor Company May 1902 Indus Khaitan http://khaitan.org [email protected] May 13, 2009 This preso was done to a group of students at RV Engineering College, Bangalore to give them an insight into presenting a business plan This presentation may contain factual errors and is an indicative template for presenting a business plan

Target Market/Problem • Steam powered and animal powered vehicles are main transport methods • Horses require frequent stop – Cannot do long distances

• Steam vehicles have high maintenance – prone to breakdowns

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Solution • A gas-based motor vehicle which does not require frequent stops – Has power of 10 horses in 1/10th of the space

• Smooth, non-stop ride

– leather seats and armchairs

• New models every year with new features – Model A, Model B, Model C/K Morpheus Venture Partners

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Value Proposition • Movement of people, goods at will – No waiting for horses to be ready or steam to be charged

• Long distance travel after refueling of gas • Ride of luxury • Mass production of cars at lower cost

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Secret Sauce • Patented multi-stroke engine with power of 10 horses • 2 forward and 1 rear transmission • Moving assembly line – for large scale production

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Marketing & Sales • Dealer network across the country • Unification of sales using low margin, high volume • Single national car brand • Participate at New York Auto show every year • Sponsor Indianapolis 500

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Business Model • Revenue

– Car Sales – Parts – Maintenance contracts

• Cost of sales

– Dealer commission – Marketing

• Cost of goods

– components, labor, capital & overheads Morpheus Venture Partners

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Competition Company

Started

Production (per year)

Models

Olds Motor Works

1897

425

Curved dash

Cadillac Automobile Company

1902

300

Cadillac

DMG Automobile (Germany), Daimler USA

1892

340

Mercedes 35 hp

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Team • Henry Ford (CEO)

– Founded Detroit Automobile company in 1899.Engineer at Edison Co. Built and prototyped gas-powered motor vehicles.

• James Couzens (CFO)

– Banker with 10+ experience in lending, financing and raising money. Has dealt with large railroads.

• Charles Sorenson (Production Incharge)

– Has managed railroad inventory. Supervisory experience in railyard for 10 years.

• To Be Hired

– Marketing & Sales head – Country Manager (Canada) Morpheus Venture Partners

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Financial Projections Revenue Streams 1903

1904

1905

1906

1907

Cars sold

1,500

2,000

3,000

4,000

5,000

Sales (in '000)

1,125

4,000

6,000

8,000

10,000

200

300

500

1,000

3,000

1,325

4,300

6,500

9,000

13,000

Q103 3 1 1 0

Q203 6 2 1 1

Q303 8 2 3 1

Q403 8 2 3 2

1904

1905 12 4 6 4

1906 14 10 8 5

1907 16 14 12 5

5

10

14

15

15

26

37

47

$250 $150 $0 $10 $10

$350 $150 $6 $10 $10

$375 $150 $8 $5 $10

$975 $450 $14 $25 $30

Parts TOTAL (in '000) Expenses Headcount Development Sales/Marketing Operations G&A Total

Expenses ($ in '000) Infrastructure 0 People T&E Capital Sales/Marketing Cost

This sheet has bogus numbers and are indicative only

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$2,860 $4,255 $5,640 $750 $900 $1,000 $50 $70 $100 $25 $30 $40 $50 $75 $100

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Status & Timeline Q4-’01

Prototype Motor engine

Q1-’02

Q2-’02

Q3-’02

•Road test

•Build Workshop

•Bank Loan •Prototype Model A

Employee count

50

’03

Q4-’02

100

•Test run •Start workshop

140

’04

•Hire country manager •Expand to Canada •Launch Model B •4 cars/day

• Launch Model A • 3 cars/day

160

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’05

200

’06

•Moving Assembly •7 cars/day •Model F

• Launch Model C&K • 4 cars/day

220

250

300

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Q&A • Morpheus Venture Partners

– http://morpheusventure.com/

• Indus at

– http://khaitan.org/blog – Twitter @1ndus

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