CHAPTER 12

Assessment of the Institutionalized Processes

In 1901 Henry Ford (along with a group of investors) founded the Henry Ford Company. Ford soon became dissatisfied with this business, however, because it didn’t reflect his personal interest, which was to build automobiles that the average American could afford to own. He eventually sold his shares and left the business. After Ford left the Henry Ford Company, the business was renamed as the Cadillac Automobile Company.

In 1903, with $28,000 from a second group of investors, Henry Ford established the Ford Motor Company. The Ford Motor Company instituted an assembly line process, allowing the company to mass produce automobiles, which kept production costs low and allowed Ford to achieve his goals for building an inexpensive automobile. The Ford Motor Company became the first automobile manufacturer to institutionalize the use of a mass production process.