Ford Motor Company Essay

602 WordsDec 7, 20113 Pages
Ford Motor Company Kayla Harper November 8, 2011 Baker College Strategic Management 431 It is no secret that the Big 3 has fallen on hard economic times over the last decade. General Motors and Chrysler have each filed bankruptcy and taken out federal loans to keep their respective automotive companies afloat and Ford was quickly heading in the same direction as its competitors. So when Ford Motor Company hired Alan Mulally in September 2006, it was apparent that they were in dire need of a financial turnaround. Mulally left Boeing in 2006 to come in as president and CEO of Ford, but many within the corporate ladder were skeptical of this decision. Because he didn’t come from an automotive background, upper level managers feared that Bill Ford, now executive chairman of Ford Motor Company, had made a huge mistake. However, five years later, Ford Motor Company managed to climb their way out financial disaster and make a profit once again. One way that Ford has been able to make a complete financial turnaround is their corporate strategy. Shortly after taking his post, Alan Mulally and Ford Motor Company enacted “The Way Forward” plan (Hammonds, 2009). This new strategy required the closure of 14 factories, 30,000 job cuts, and dropping outdated and poor selling models from each brand segment of the Company. “The Way Forward” is a strategic plan that is aimed at helping Ford return to profitability and to a size and product portfolio suitable for the market and economic times (Hammonds, 2009). So far, this strategy has worked well for Ford since they have seen gradual profit increases since the enactment of this plan. Another factor that is contributing to Ford’s success is the vision and core values that have come about under the leadership of Alan Mulally. The vision of Ford Motor Company is simple, “One Ford, One Team, One Plan, One Goal.” Mulally requires

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