Ford: Company Analysis Toward Leadership.

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Allen Rue MGMT 6510 March 29, 2013 Ford Motor Company: Staying “Ford Tough” Ford has used many strategies to remain as one of the top automobile manufacturers in the world. Two of these strategies have dealt with legitimate power and expert power. Henry Ford obtained legitimate power from Ford Motor Company because of his position as CEO and founder. Henry used this power to lead the construction of an all in one plant where the processing of raw materials, parts, and final automobiles were produced in one factory. This led to Henry Ford’s vision of everyone being able to afford a Model T Ford come to fruition by getting the cost of the vehicle down to $360. Ford wanted his workers to be able to afford the vehicles they helped produce so he double his workers’ minimum wage in 1914. Ford’s use of expert power has come through their CEO’s. The founder, Henry Ford, was the first CEO and while he may not have started the organization as an expert in the automobile industry, he became an expert and was able to lead Ford Motor Company to many profitable years. This continued with his son and grandson, Edsel Ford and Henry Ford II. The two younger generations were experts in the field being involved in the automobile business all of their lives. Ford continued, like all automobile manufacturers, to bring in experts in the industry from other companies to be CEO. Alan Mulally was appointed president and CEO in September 2006. This marked the first time that a CEO of Ford Motor Company would be an industry outsider. Alan Mulally was formerly the president and CEO of Boeing Commercial Airlines. He was chosen for his business knowledge and tough decision-making abilities in the global economy. He was not an expert of the automobile industry but was an expert in making tough decisions in the global marketplace. This showed that Ford has continued to use expert power

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