...MGT/521 June 8, 2011 Dr. William Dickie A successful company is built on a solid foundation. Ford Motor Company was founder Henry Ford had a concept to build cars. Henry Ford not only wanted to manufacture cars, he wanted to produce a product of superiority and quality. The market and automotive industry has grown considerable since the conception of Henry Fords’ dream. Never the less, in a global and universal market, the core principle of what Ford Motor Company was founded remains the same. Ford Motors’ commitment to the company’s mission statement, vision, ethics, and values is what solidifies Ford’s position as a top contender in the automotive industry. Mission and Vision Ford’s transformation Ford’s commitment to mission statement is timeless. Henry Ford had a mission to produce a quality automobile in the 20th century. Ford Motor Company (FMC) continues to solidify the company’s top ranking in the worlds’ automotive market. As a leader in the automotive market Ford continues to reinvent the company’s style of leadership. Several approaches to leadership have lead to a successful rejuvenation of Ford Motors. According to text Ford Motors embraces the transformational style of leadership. FMC know the benefit of keeping the proverbial hand on the pulse of the consumer272. A company is only as good as the product the companies supply and the demand for the product. The conceptual vision of the company was to provide a quality car that an individual would want to...
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...Running head: INNOVATIVE CHANGE AT FORD MOTOR COMPANY Innovative Change at Ford Motor Company Keller University Human Resources 587 August 24, 2014 Abstract Since Alan Mulally took over as Chief Executive Officer (CEO) for Ford Motor Company the business has been transformed into a powerful competitive force in the global automotive industry. An examination of the company’s communications surrounding Mulally’s retirement and the appointment of Mark Fields as the new CEO demonstrate how Ford used positive and candid communications to overcome resistance to the change. Actions as simple as providing verbal and nonverbal cues have a powerful influence on how others perceive a change (Nekoranec & Fourrier, 2013). A proposed alternative communication plan, including the use of more communication channels with increased frequency, would have helped the company address some of the fear and uncertainty among stakeholders. An example of an internal memo is provided to show how the use of positive and supportive descriptions of the change can motivate stakeholders to act as change agents on behalf of an organization by embracing the change and recognizing their essential role in the process. Innovative Change at Ford Motor Company In the past few decades Ford Motor Company has experienced a series of disruptive changes pertaining to the company’s leadership. In 2006, the appointment of Alan Mulally as the company’s Chief Executive Officer...
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...Industry Forecasting: Ford Motor Company John G. Warner III BUS620: Managerial Marketing Dr. Susan Sasiadek March 18, 2013 Industry Forecasting: Ford Motor Company When Alan Mulally took over as Chief Executive Officer at Ford Motor Company in 2006 the organization was losing billions of dollars. According to Tony Schwartz (2010), “It had just come off reporting a $14.6 billion loss for 2008, its fourth losing year in a row” (para.1). The article Alan Mulally-Making Ford a Model for the Future illustrates the progress of Alan Mulally and the four simple principles that are making the company become profitable. Principles are important in any organization and an employee needs to feel important and motivated to come to work. These are a few of the principles that Alan Mulally have implemented since 2006: Stand for something beyond profit. Rally your employees around a shared mission. Practice a realistic optimism. Tell the truth without fear (Schwartz, 2010). The turnaround at Ford Motor Company was not overnight. He invested in the vision “One Ford” which has the idea of creating vehicles that will appeal to both American and European consumers by utilizing a common design theme that would move beyond the three-bar infatuation of the United States (Lavrinc, 2007). The transformation of the American icon was due to the One Ford vision and one year after 2008, Ford Motor Company reported a profit of $2.7 billion. This transformation would not have happened if...
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...MGT/312 During one of the worse recessions, The Ford Motor Company has gone from almost losing $30 billion dollars in less than 3 years to earning close to $6.6. Billion dollars all due to Alan Mulally team building techniques and strategies. Before Alan came aboard the company was at lost ends and almost at the point of going bankrupt. They were losing money left and right and no loner considered one of the top automotive companies. A lot of people didn’t think Ford could ever recover from there Billion dollar. In fact, Ford was even losing ground competitors for decades. It got so bad for The Ford Motor Company that in 2002 there was a plan to cute jobs and talk of pant closures. Something no one seen coming or was thrilled about. With talks of closing plants and job cuts that meant leaving 14 plants and 34,000 workers out of jobs. The plan eventually went into effect and led to closures of Ford’s plants in Brook Park, Cleveland, and in Toledo. The purpose of closing and laying off several employees were to cut cost to keep the company alive. By midyear, The Ford Company president and chief executive Bill Ford Jr. resigned and hired Alan Mulally. Alan Mulally served for several years as president and chief executive of Ford Motor Company. Alan came aboard with Ford September of 2006 and led Ford’s transformation into one of the worlds leading automakers known today. His mission and values were to guide Fords Auto Company in working together as a team on a fascinating vision;...
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...driving a Ford, or they know someone who has. Henry Ford was known as an amazing innovator. Ford's history comes with great stories of success; however the recession that started in 2000, caused the Ford Motor Company to experience some downturns. After ending his stay as President and CEO of Boeing Commercial Airplanes, Alan Mulally joined Ford Motor Company and helped change its path towards bankruptcy. This study will describe the team-building techniques and strategies used by Alan Mulally to transform the Ford Motor Company. The research conducted on the condition the company was in when he took over and where it is today. The strategy used to establish the team and how the plan executed will be discussed. Also, the rationale will be provided for other procedures that could have utilized in a similar situation. Who Is Alan Mulally? Alan Roger Mulally was born in 1945 and is an accomplished business executive worth over twenty-three million dollars. Companies look to him for innovative ideas that will get them going again. After college, he decided to join the Boeing organization as an engineer. Here, he was able to contribute to the different Boeing models; including the 777 project. He eventually moved up within his department due to his incredible contributions. According to "Ex-Ford Ceo Alan Mulally Joins Google’s Board Of Directors" (2013-2015), "Notes that from March 2001 to September 2006, Mr. Mulally served as Executive Vice President of the Boeing Company and President...
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...Part 3: Diagnosing the Change – Chrysler Group LLC & Ford Motor Company The congruence model first established in the eighties by David A Nadler and M L Tushman provides a means to an understanding of the sources of organizational performance and the relationship between the two. This model views organizations as components that are interconnected and interacting with goals of tight congruence. The Congruence Model consists of categories that are broken down into components. (Mercer, 2012) The first category of the Congruence Model is input. The components of the input category are environment, resources, and history. The environment consists of factors that are outside of the organization but can influence it. The analysis would want to see what demands or constraints the environment places on the organization. The history will provide the patterns of the past; behaviors, activities, and effectiveness. History can definitely have an effect on how the organization is functioning today. Things to analysis in the history include any major changes, phases of development, and the current impact of these historical factors. These components can consists of external and internal forces that drive the need for a change. (Mercer, 2012) The next category of the congruence model is strategy. There a two levels which are corporate strategy, which will include the legal aspect, and the business strategy. The business strategy will include decisions about how to use the resources of the...
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...operations united to form Ford Europe, to give a strong regional identification. Over the following two decades Ford Europe performed well and in the 1980’s, its profitability helped sustain losses being sustained in the US market. After this Ford Europe began to struggle from 1992-2000 where losses had accumulated to $2.6 milliard. (Donnelly& Morris, 2003) In 1992, Ford Europe had been "slaughtered" by recent wild currency fluctuations that had torpedoed consumer demand in key markets such as Britain, Spain and Italy. The strength of Germany's mark had made Ford's products, even more expensive in those countries. (New York Times, 1992) Furthermore, by the mid -1990s, the European car market was in a state of virtual saturation with an annual growth rate of only 2 percent. Matters were made worse by heavy competition from both the Japanese imports as well as from vehicles produced in Japanese transplant factories within Europe as they focused on niche and hybrid models. Ford’s own specific difficulties were deep rooted and could be traced back to poor model development, excess capacity, failure in recognizing new market segments and inefficient cost control. As such recovery was slow and it was not until the late 1990s that Ford was again able to reach and surpass the level it had first hit 10 years previously. (Donnelly& Morris, 2003) [pic] 2. FORD 2000 These triggers...
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...Strategic Strategy for Ford Introduction The proposed strategy will enable Ford to enhance the performance in the global environment. This will also ensure Ford survival and strengthen the financial restraints that are currently evident as a result of the current global economic recession. The proposed strategy will be determined by scanning the internal environment in terms of resources, capabilities and competences. The external environment in terms of the macro environment and market environment with regards to opportunities and threats will also be evaluated. Lastly, the strategic strategy must measure to the stakeholder expectations, as well as the inherent market related risks. 1. STRATEGIC DIRECTION SETTING 1. MISSION Ford Motor Company Mission Statement- One Mission,One Team,One Plan,One Goal. One Mission: FORD ONE TEAM- People working together as a lean, global enterprise for automotive leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community Satisfaction ONE PLAN – FORD F- Future First Affordable choice of Automotive transportation regardless of Industry and according to consumer needs O- Outstanding Investments and returns for all R- Revolutionising the product offering according to consumer demands (Service Plan offerings) D- Drive train eco technology development- best smallest engine and lowest gas emissions globally ONE GOAL - An exciting viable Ford delivering profitable growth for...
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...Organizational Changes in Ford Motor Company Organizational Changes in Ford Motor Company In today’s business world, one of the questions organizations are inquired about is “What can be done in order for our organization survive and expand?” Today’s society is evolving into something too challenging to easily foresee, with a numerous opportunities and drawbacks continuously passing. Economic modifications continue to change the very fundamental nature of how an organization is conduct performs. A company must be able to acknowledge the course they face and be able to poise themselves to meet head-on any difficulties in order to accomplish the goals they settle on. In order to meet these demands is through systematic competent management and resilient leadership. Ford Motor Company is an organization that has endures this and has created outcomes that exemplify the power of operative management and precise leadership. The company’s ability to employ qualified managers and leaders has permitted the company to climb from previous low points to be primed for an optimistic economic future. Ford Motor Company, as an American manufacturer and distributor of vehicles and automotive parts and accessories, has confronted many challenges since its integration that required resolute management and qualified leadership. To better associate with the challenges the company faces an understanding of the explanation of management and leadership are required...
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...Leading Change at TATA Motors Established in 1954, TATA Motors Limited is India's largest integrated automobile company, with consolidated revenues of 20 billion USD in 2009-10. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's largest bus manufacturer. TATA Motors in 2005 was ranked among the top 10 corporations in India. In 2010, TATA surpassed Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times. The company's 24,000 employees are guided by the vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics." Their mission is “to be committed in letter and spirit to Corporate Social Responsibility." The 5 core TATA values are Integrity, understanding, excellence, unity and responsibility. Originally founded as TELCO by the Tatas in 1945, the locomotive manufacturing unit later expanded its operations to the commercial vehicle sector after forming a joint venture with Daimler-Benz AG of Germany in 1954. TATA vehicles are sold primarily in India, and over 4 million vehicles have been produced domestically since the first TATA vehicle was assembled since the merger. The multinational corporation is headquartered in Mumbai...
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...improvement of the nation. Some of the transformations that occurred during this period were in manufacturing and labor forces. The twentieth century altered production systems from being primitive to being modern and efficient. Towards the beginning of the twentieth century industrialization increased rapidly and mass production became more common. Henry Ford presented the first automobile assembly line as a method of producing cars more quickly, and much of the automobile industry adopted this technique. The assembly line of production spread all across the country to various different industries allowing them to convert to mechanized production....
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...THE CHANGE PROCESS IN GENERAL MOTORS AND FORD This brief analysis reflects on the change management processes employed by the two motor companies; Ford and General Motors. The references discussed in this paper were a source of information that provided knowledge into the 2 major corporations and the transformational changes that they underwent in an effort to ensure their profitability and viability. Both GM and Ford underwent major decline and loss in stock some few years back and even as one filed for bankruptcy (GM) the other hard not to, and succeeded. Both companies needed to make some changes in an effort to recover. In an article by Terry Corbell, as he points out the 7 lessons that other businesses could learn from the Ford motor Company, he infers that If a business is performing in a mediocre fashion, chances are the company needs an overhaul. A culture change, if you will. And for a positive case study in change-management, Ford Motor Company qualifies (Corbell, 2013). Ford has had similar endorsements; ever since after being hired, CEO Mr. Mulally managed to notably install a competitive, sustainable business model that pulled Ford from the brink. Durbin and Krisher seem to agree with this assessment even as they also voice some doubts. Mulally has transformed the company into a simpler, nimbler organization that's ready to react to change more quickly, but experts are not so sure the change will last. Management experts say it's easy to talk about a willingness...
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...On 5th January 1914 the Ford Motor company announced that it would more than double the wages of its workers. Briefly describe the history of this decision and relate to the theory of incentives and efficiency wages. When Henry Ford introduced the five-dollar day on the 12th of January 1914, many of his competitors might have questioned the success of this policy. Today, it is well established that Ford’s strategy was a key reason for the company’s early success and is often documented as an exemplary application of the efficiency-wage theory. This essay will briefly outline the history and implications that have led to the five-dollar day and relate it to the theory of incentives and efficiency wages. Henry Ford founded the Ford Motor Company in 1903. During the first few years the company remained relatively small and it was only with the introduction of the T-Model in 1908 and the transformation to assembly line production that Ford could expand his market share and increase the company’s profitability. However, as Raff and Summers noted, assembly line production resulted in a high degree of specialisation of the different production steps. Work at Ford’s became more and more menial, leading to dissatisfaction among the workforce, which reflected in a significant annual turnover of 370% in 1913. Although there was no evidence that Ford had problems filling his vacancies, the absenteeism and high turnover undoubtedly resulted in costs that Ford had aimed to reduce. It...
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...General Motors Co Strategic and Financial Analysis ADVANCED CORPORATE FINANCE April 22, 2012 Authored by: Ana Romero, Roshan Picardo, Carlos Castro, Shikhar Agarwal 0 General Motors Co Strategic and Financial Analysis Executive Summary This report provides an evaluation of strategic and financial evolution of General Motors Company (GM) in the last ten years. Events like the global economic recession lead to a deep restructuring of the firm, filling for bankruptcy and a government bailout. The report provides an analysis of GM’s business model, products, the markets it is competing in, the global automotive and manufacturing industry and it also assess its attractiveness for incumbents and new entrants is also With a brief history of GM we evaluate its reaction to the global recession. We compare their business model before, during and after the recession, comprising the strategic and financial implications of their restructuring plan. We provide results from this restructuring, including improvements in GM’s financial ratios like ROA (from 0.05 in 2010 to 0.07 in 2011) and ROE (from 0.23 in 2010 to 0.25 in 2011). While the recession significantly affected GM, it also affected the rest of the automobile industry, including their American competitor Ford Motors. We compare the main differences between these two important companies and analyze the way they reacted to the recession. We also observe the approach that Ford has taken to recovery, in terms of governance...
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...Differentiating Between Market Structures The Ford Motor Company is a global automotive manufacturer, based in Dearborn Michigan. It manufactures or distributes automobiles across six continents. Ford has about 213,000 employees and about 90 plants worldwide. This company had an extensive list of brands that it owned at one point. The list of car brands included Ford, Lincoln,Jaguar, Mercury and Volvo.( Ford.com) This company also provides financial services through Ford Motor Credit Company. The company sells automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand. In the past it has also produced heavy trucks, tractors and automotive components. Ford owns small stakes in Mazda of Japan and Aston Martin of the United Kingdom. It is listed on the New York Stock Exchange and is controlled by the Ford family. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Ford's former UK car brands included Jaguar and Land Rover, acquired in 1989 and 2000 respectively, were sold to Tata Motors in March 2008. Ford owned the Swedish automaker Volvo from 1999 to 2010. General Motors Company (NYSE: GM, TSX: GMM.U), commonly known as GM (General Motors Corporation before 2009), is an American multinational automotive corporation headquartered in Detroit, Michigan, and the world's largest...
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