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Allan Mulally's Challenges at Ford Motor Company


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Allan Mulally's Challenges at Ford Motor Company

  1. 1. Presented by Group A-1 NAME ROLL NO. RITESH ASHAR 11002 NIKITA BALI 11004 NEETHI NAIR 11044 CHANDAN PAHELWANI 11048 HIMANI PARIHAR 11050
  2. 2. SYNOPSIS In June 2007, Ford Motor Company was announced as the world’s THIRD largest automotive manufacturers. Bill Ford the Former president and CEO of FORD MOTOR COMPANY appointed Alan Mulally in his place in September 2006,when the company was in state of crises. Mulally was the executive vice president at the boeing company, a major aerospace and defence corporation and of its commercial airplanes division before joining Ford Motors. In 1925, Ford Motors entered into the luxury car segment with the acquisition of Lincoln Motor Company. Bill Ford put several efforts to turnaround company’s fortunes, but was unable to tackle the stiff opposition from within the company.
  3. 3.  Mulally’s main objective at Ford Motors was to save the companyfrom bankruptcy and bring it back into profits. According to the analysts Mulally had strong expertise inmanufacturing and could bring about a lot of improvement in themanufacturing processes of the company. Mulally himself started to drive the Ford Motors’ vehicles to find thepossible improvements which can be made. Analysts also pointed on the fact that Ford Motors was wasting itsefforts on building and marketing its too many brands. Mulally’s biggest challenge at Ford Motors was transforming thedeep-rooted culture of company, which was said to be defeatist anddysfunctional. Managers who came out with their weaknesses were appreciated. The group applauded executives who showed progress.
  4. 4. IDENTIFICATION OF REALPROBLEM Alan R. Mulally was appointed to stop the company from bleeding i.e. the company was running in losses of $ 12.7 billion. As he was known as turnaround expert.
  5. 5.  VARIOUS PROBLEM There were difference of opinion between Henry Ford and the other investors when He insisted the company should focus on producing affordable cars for a mass market. In 1919 conflict arose between the stockholders and Henry Ford over a lot of money being spent on building a giant manufacturing complex in Dearborn, Michigan USA. In organizational front ,Mulally had to make Ford motor’s employees snap out of their lethargic and bureaucratic style of functionary.
  6. 6. Before coming back into profit he was unable tobring an optimistic thought among wall street &rating agencies. His biggest challenges at Ford Motors wastransforming the deep rooted culture of thecompany, which was described as defeatist &dysfunctional.
  7. 7. OBJECTIVES Finding cost cutting opportunities of the company. Refining the product line. Increase the company’s customer base. Revamping the brand portfolio of Ford Motors. To put the company back on the profit track. To improve market share. To stand in the competition with minimum resourses and minimum time.
  8. 8. AREAS OF CONSIDERATION Employee sector Stake holders and Investors Manufacturing Area Customers Bankruptcy
  9. 9. STATEMENT OF ALTERNATIVE COURSE OF ACTIONOn the basis of our study:-(1)Producing fuel efficient cars.(2)Minimize the cost of healthcare facilities given to employees.
  10. 10. (1) Producing fuel efficient cars  Advantages :-I. The primary advantage of hybrid cars is improved fuel efficiency which is higher than gasoline cars.II. If company produces fuel efficient cars, then it would be beneficial for the company in terms of sales increase.III. The increase in sales would lead to company turnaround, as the losses are recovered by earning profits. Disadvantages :-I. The fuel efficient cars would be costlier than the gasoline cars.II. The batteries of hybrid cars are not much powerful to run on their own.III. As hybrid cars run on newer technology which is less widespread, so for that less service centers are available.IV. The service centers available are well out of reach for average car owners.
  11. 11. (2) Minimize the cost of healthcare facilities given to employees Advantages :-I. This would help to minimize the cost of the company. Disadvantages :-I. Employees would be demotivated with this act.
  12. 12. PLAN OF ACTION Mulalley himself started personally driving Ford Motor’s vehicles to identify possible improvement. Sensitive data and information were shared among every operating group. He induced a sense of responsibility and accountability in employee’s.
  13. 13. CONCLUSION So here by We conclude that However, with the company’s better financial performance in the first quarter of 2007, Alan was convinced that he will achieve the goal of profit in future. Journey still continue and are looking forward.