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Ford Case Study
Transcript of Ford Case Study
bold, innovative products
competitive costs and capacity 4 key priorities:
•aggressively restructure the company to operate profitably at the current real demand and changing model mix
•accelerate product development with new products that customers really want and value while achieving manufacturing excellence by reducing complexity and improving quality
•obtain financing to do these things and improve the balance sheet
•work together with accountability with all partners Started an effort called One Ford in order to “fully leverage the tremendous worldwide resources of Ford” To work together as one team around the world with one plan and goal. What structural implications arise from Mulally's description of Ford being world-class? Question 2 1. Power distances are different in separate cultures, structurally, having the blanket idea of a uniform and global company could be problematic.
2. Employees may receive the same training and believe in the same goals, but a highly regulated company may have problems with directive effectiveness and efficiency. Take for instance the advertisement sector – in America, social media is the highest quantity of consumers, however in another country, mail or door to door may be a better outlet to reach consumers.
3. Levels of economic development: not every country is on the same economic level.
4. Choice of management: in the ideal of “one team…one ford” Mulally faces the decision of bold and well informed of the company managers over managers that are well informed of the country and the culture. What types of adaptive organizational designs discussed in this chapter might be needed as Ford continues to pursue its vision of One Ford...One Team...One Plan...One Goal? For each design that you think is appropriate, describe what it is and how the company might use it. Question 3 Team Structure: Boeing has this structure. It improves productivity.
Project Structure: Good for working on new cars and new ideas. Very flexible.
Learning Organization: Flexible and adaptive.
Strategic Partnership: SiriusXM, OnStar, Microsoft. What does this case story tell you about how a company's vision and plans affect its structure? Question 4 Our answer •What the companies’ vision for the future, and their plan on how the will attempt to achieve that vision, dictates what type of structure the company should use.
•Certain structures would be a detriment to companies with specific goals.
•A company has to decide what structure best works for them and then implement it in conjunction with their plan so as to reach their end goal.
•Ford had to change their structure in order to accommodate their new visions and plans for the future to be reachable. Ford was facing serious challengers.
Fierce competition in global car industry.
Realities of its manufacturing and product development deficiencies.
Ford needed a successor for CEO, so Bill Ford picked Alan Mulally.
Recently turned the Boeing Company around.
Ford thought Mulally had the knowledge and experience to turn the company around and inspire the employees enough to build their name back up
There was hope for Ford What would be your team’s choice of management? The ultimate aid to Ford’s new Ideal is to remain uniform to a point, but on certain objectives remain flexible.
Example: McDonald's end goals are the same, but they offer different products Ford thought Mulally had the knowledge and experience to turn the company around and inspire the emploees enough to build their name back up Bring North American operations back to profitability by 2008
The North American operations incurred a loss of $2.5 billion on total sales in 2005
Market share in US decreased from 25% in the late 1990s to 17.4% in 2005
The lowest since the 1920s
Aimed at reducing costs by $6 billion by 2012
Would entail cutting 25% of its work force (about 30,000 employees)
Closing down 14 factories and assembly centers in North America.
Plan also focused on strengthening its product line.
To be more efficient, they were planning to use similar architecture that its manufactures in Europe and other countries used to build vehicles 2010: unveiled Ford Focus as Fords first truly global car. Engineered for customers in every region of the name and its sold everywhere under the same name http://www.theofficialboard.com/org-chart/ford-motor Organizational Chart