Final Project Week 5: Relationships and Financial Performance; Company Investment Analysis; Final Report and Presentation of Findings

My Companies: Ford Motors and Toyota Motor Company

Required:

1. What is the relationship between your companies and their respective employees and investors?How do these relationships affect financial performance?Are there any issues outstanding for your companies? Provide a rationale for your assessment.
2. Compare and contrast your two companies using the financial statements for the two firms and the accumulated data and analysis completed so far.If you were going to make an investment in one of the two companies, which one would you select? Why? Explain your answer and include financial and nonfinancial reasons for your conclusion.
3. comprehensive final report that summarizes your research and analysis of the two companies you selected for your Final Project over all weeks of this course. Use good form and cite all sources in APA format.
4. 10-15 slide Microsoft PowerPoint presentation that summarizes your findings and conclusions for your Final Project over the past five weeks

attached are weeks 1-3

Final Project Week 1 Final Project Week 1 Amanda Bourgeois Week 1 Assignment 3 July 5, 2017 Financial Statement Analysis | FIN4060 R01 Professor: Andrew Clark Final Project Week 2 Toyota Motor Company & Ford Motor Company The two companies' organizational structure aims at satisfying the business needs of various clients across the global market in the automotive industry. They both are structured as family oriented businesses and have the largest shares and are ranked highest in the United States and across the globe. The main characteristics of the two companies are: functional groups that are global, divisions in the regional areas and cooperate hierarchy. Functional groups that are global include: the operational groups are used to represent business purposes that are specific, there are managerial teams who head all the organizational structure of each company, the divisions include: accounting, finance, development of products at global level, human resource and cooperate governance, purchases made globally and finally launch of new machineries. Cooperate hierarchy, the two companies have a cooperate hierarchy that is traditional in the sense that they both have an executive president, executive vice president and various CEO's who represent market segments at the regional level, this is for the purpose of managing and controlling the top positions in the motor industry. Toyota motors is ranked 1 the first position globally whereas Ford Motors occupies the sixth position globally, this clearly indicates how their products are on high demand and the satisfaction of customers preference. Toyota Motor Company & Ford Motor Company Commitment Supervision and delegation of duties, the purpose of this is to ensure that the company realizes its global vision due to the external industrial environment that changes rapidly, after the introduction of business operations regionally, the company decided to adopt a company system Final Project Week 3 that is in-house making it to be responsible for all productions and other operations within its structure. Additionally, the board of management in the company makes all overall decisions in regard to the various operational officers and outline their functions. Under the board of directors, there is enhancement of varied social ideas that ensures that the company develops strategically. (Toma 2017) Toyota Motors also has an international advisory board that ensures that quality advice is given on various managerial situations on a global perceptive, stakeholders are also allowed to monitor their cooperate activities and management of the company. Toyota adopted a system that ensures that board members are supervised and audited to ensure proper cooperate governance. Audit procedures are carried out in accordance with the plans and audit policies. In accordance with supervision procedures the company ensures that individuals with high experiences are elected to advice the management on a competence and fair ground, several members of the auditory and supervisory team are selected from outside the company. Ford company commits itself to cooperate governance by ensuring that the set regulations assist the managerial team in coming up with policies and implementing them, this ensures that the company enlarges its growth both nationally and globally through meeting various demands of the customers. (Shein, 2017) Cooperate governance in the company also ensures that the management team is assisted in making decisions that are used to set strategies and establish goals in regard to sustainability. The major competitor of Toyota is General Motors and vice versa. Final Project Week 4 References: Toma, S. G., & Naruo, S. (2017). Total Quality Management and Business Excellence: The Best Practices at Toyota Motor Corporation. Amfiteatru Economic, 19(45), 566. Retrieved from https://adalidda.com/posts/gi4x9TSc2WaWZcKyB/total-quality-management-andbusiness-excellence-the-best Shein, J. B. (2017). At Ford, Turnaround Is Job One. Kellogg School of Management Cases, 115. Retrieved from https://services.hbsp.harvard.edu/services/proxy/content/55723516/55723595/3239b2058 b76ff99e66b247d5097bff9 Final Project Week 2 Amanda Bourgeois Week 2 Assignment 2 July 5, 2017 Financial Statement Analysis | FIN4060 R01 Professor: Andrew Clark The income statement items are: revenue, gross profit and operating income. In the year 2016, ford motors made total revenue of $151.8 billion, this is a clear positive deviation as compared to the previous years, and the most part of the revenue came from North America showing an important earning from the United States automobile market. Toyota company's revenue stands at 28.4 trillion in the year 2016 JPY this indicates that it revenue is much higher than Ford Motors because of the quality automobiles that the company offers, Toyota revenue consists of payment of cash to dealers and sales from vehicles in regard to the incentive program. Ford Motors gross profit that ended in the last three months of 2017 is $6,738 million, in the past three years the gross profit of the company has risen steadily although incurring losses in some years. Toyota motors gross profit stands at $65.9 billion, the profit is as a result of surplus income that the company receives from sale of their products. Ford motors operating income is 4.116 USD whereas that of Toyota is 2.85 trillion in the year 2016, operating income is used to analyze the amount that a company uses on expenses to produce and sale their vehicles. The balance sheet items are: current assets, long-term assets and current liabilities. Ford Kenya company has got a large amount of current liabilities as compared to Toyota company. When it comes to Current Assets Toyota Company are on par for that of Ford Motors, and both the companies have liabilities such as short and long-term debts. In conclusion, the two companies compete appropriately in the automobile industry although Toyota company as a wide share of the market due t its flexibility and quality products. References: NASDAQ. (2017). Toyota Motor Corp Ltd Ord (TM) Balance Sheet - NASDAQ.com. Retrieved from http://www.nasdaq.com/symbol/tm/financials?query=balance-sheet NASDAQ. (2017). Ford Motor Company (F) Balance Sheet - NASDAQ.com. Retrieved from http://www.nasdaq.com/symbol/f/financials?query=balance-sheet Final Project Week 3 1 Final Project Week 3 Week 3 Assignment 2 Amanda Bourgeois July 11, 2017 Financial Statement Analysis | FIN4060 R01 Professor: Andrew Clark Final Project Week 3 2 A cash flow statement gives information about company's cash receipts and cash payments during a certain accounting period. It also provides information about how these cash flows link the ending cash balance to the beginning balance shown on the company`s statement of financial position. In order to examine the cash flow of Ford Motors and Toyota Motor Company we need to gather the following; Firstly, it is clearly shown that the largest investing activities of Toyota Motor Company include; marketable securities, selling and buying of land and investment in subsidiaries and affiliates while the largest financing activities includes; issuance of long-term debt, issuing stock and payments of short term debt. Additionally, the largest investing activities of Ford Motors include capital expenditures, and sale of fixed assets. Whereas, the largest financing activities include; issuance and reduction of debt, and issuing of dividends. Comparing and contrasting the investing and financing activities of the two companies can best be done by looking at how the two companies generate cash out of these activities. For instance, Toyota Motor Company's cash flow from investing activities which include buying and selling of land equipment and buying stocks and bonds was $ 31.75B in last year's report and the cash generated by financing activities was $ -3.49B. On the other hand, the cash flow from investing activities of Ford Motor Company stood at a positive figure of $-25.35B. And the cash flow generated from financial activities was 6.86B, this was in the form of repayment of dividends pay out to shareholders or interests paid. The financing and investing strategies of Toyota Motor Company consists of striving to strengthen the customer - orientation of products through increasing attention to the requests and the demands of its customers from various regions, promoting commercialization of the next generation environment, and facilitating energy and safety technologies. The company`s agenda Final Project Week 3 3 entails dealing with customers first and to continue improving their services. Whereas, the Ford Motor's financial and investing strategies includes, strategizing in restructuring in order to operate profitably at the current demand and changing market, accelerating development of new products and at what its customer's desire and lastly the company is strategizing in working together as one team. I believe that both of the strategies are effective except for the fact that the one for Toyota Motor Company is more effective, basically because its strategy includes putting customers first, a strategy which is more productive for customers will always be satisfied and would want to go to a place where they receive full attention. Final Project Week 3 4 References: NASDAQ. (2017). Toyota Motor Corp Ltd Ord (TM) Cash Flow - NASDAQ.com. Retrieved from http://www.nasdaq.com/symbol/tm/financials?query=cash-flow NASDAQ. (2017). Ford Motor Company (F) Cash Flow - NASDAQ.com. Retrieved from http://www.nasdaq.com/symbol/f/financials?query=cash-flow