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Ford Drives Out of the Financial Mud
Transcript of Ford Drives Out of the Financial Mud
Presented by: Amanda Stienkeoway, Asha Christensen, Bryan Kraft, Nick Husaby, Justin Harris, Ashlee Hutchinson, and Jason Gonzalez
Back in January 2009, the Federal Government used 24.9 billion dollars of the 700 billion bank bailout fund to rescue two of the major three U.S. auto industries.
$17.4 billion to General Motors and Chrysler
$6 billion for GMAC
$1.5 billion for Chrysler Financial
Before the Market Crash of 2008
In 2006, Ford Motor Company for the first time ever mortgaged it's assets, raising 18 billion dollars, and giving itself a cash cushion in the long run.
Instead of taking the TARP Government money, Ford instead sold off it's luxury brand cars such as Aston Martin, Jaguar, and Land Rover.
In making this decision CEO of Ford, Alan Mulally, made the decision to invest in more fuel efficient cars and trucks that would be moderately priced.
These decisions were not only helpful for Ford at that time, but they shot Ford ahead of the competition nowadays.
The Leadership at Ford
Previous CEO of Ford, Bill Ford, had recruited Alan Mulally from the Boeing Company in 2006 to become Ford's new CEO.
The leadership was not just handed to Alan alone, together, the two have communicated on every decision made at Ford.
The Loyalty of Ford's CEO
Bill Ford, now the Executive Chairman for Ford, is on the Board of Directors of Ebay as well as Ford Motor Company.
Alan Mulally chooses to only be on the Board of Directors for Ford only, not because he has to as CEO, but because he chooses too.
The level of loyalty he shows really reflects the success at Ford, for he only chooses to focus on the success of his Company.
Financial independence allowed Ford to not lose their ground during the Economic crisis.
And a change in leadership allowed the company to make tough decisions in order to focus on improving its core products and getting the mass media to pay attention to Ford cars again.
The detail of product; the company-wide attention to detail that helped Ford earn its strong market position today- says less about the products they make, and more about the level of care among the people who make them.
Alan Mulally says that with his job, he focuses on four main things...
1. The process of connecting his firm to the outside world
2. Keeping track of the firm's identity in the market place
3. Balancing short term objectives with long tern goals
4. To focus on the values and standards of the organization
Focusing on these four objectives can help Mulally set specific goals for the company, and himself, to follow. Working toward these goals improves the environment of Ford, amongst the employees and the product they produce. All while maintaining its reputation in the Marketplace.
Ford Motor Company was able to decline the Federal TARP money because they balanced short term objectives and long term goals well.
Had the company not mortgaged its asset's a two years back and sell off its luxury model cars, they would have suffered just as bad as the rest.
The positive workplace that Ford provides not only makes the employees happy, but from that brings out creative innovations from those employees.
In January 2011, Ford was able to pay bonuses of $5,000 and more to its hourly workers.
Alan Mulally believes that every employee has something to offer. He believes that every employee should be familiar with its firm's mission.
The employees are able to contribute more to the company's performance because they have a better understanding of how to contribute, as to what they can do to further the company towards achieving its goals
Don't manage your career.
Follow your dream and contribute.