Case Study : Ford Motor Company

1743 WordsApr 29, 20177 Pages
Case Background and Problem Statement: Bill Ford, heir and President of Ford Motor Company (NYSE: F), faced a forecasted thirteen billion dollar loss in 2006. In order to save Ford, Bill Ford had to dramatically alter the direction of his organization [1]. After several unsuccessful attempts at attracting top executives away from his competitors, Bill Ford decided to pursue a route that Ford Motor Company hadn’t in over 60 years by not only hiring a top executive from outside its’ ranks but also the automotive industry entirely [2]. On September 5, 2006, Alan Mulally decided to leave the wildly successful aircraft market leader, Boeing, to be appointed the new President and Chief Executive Officer of America’s historic Ford Motor Company.…show more content…
With operational costs diminished and product platforms truncated, Ford Motor Company now had the financial capital and bandwidth required to produce a vehicle lineup that was truly “best in class bringing about an incredible era of growth and profitability for the organization[2].” Strategic Analyses: Ford Motor Company & General Environmental Factors: Although Alan Mulally’s ONE Ford Plan had brought incredible shifts in the strategic direction of Ford Motor Company, the organization was plagued with negative general environmental trends. Shortly after becoming President and Chief Executive Officer of Ford Motor Company, Alan Mulally found himself facing one of the worst recessions in the history of the United States. In 2008, the global financial downturn had a rippling effect through financial institutions that ultimately resulted in industry giants General Motors and Chrysler having to file for bankruptcy. Although Alan Mulally had preemptively positioned his organization to withstand the economic downturn, the bankruptcy of Ford’s competitors could have devastating economic impacts on suppliers and thus cripple Ford Motor Company in the process. Determined to prevent the complete collapse of the entire automotive industry, Alan Mulally spoke on behalf of his competitors in favor of a tax-payer funded government bailout valued

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