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Case study on ford
Ford Motor Company is an American automaker headquartered in Dearborn, Michigan. It was founded in 1903 by Henry Ford and is a major competitor to General Motors and Chrysler. Ford struggled in the late 20th century due to failed restructuring plans under CEOs Alex Trotman and Jacques Nasser. When Bill Ford asked Nasser to resign, he was unable to turn the company around and Ford's market share fell to a historic low of 18%. In 2006, Alan Mulally was hired as CEO and successfully led a turnaround, returning Ford to profitability.
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Case study on ford
- 1. Case study on FordMotor Company
- 2. The FordMotor Company (commonly referred to simply as "Ford") is an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903. Overview
- 3. The Ford WorldHeadquarters in Dearborn, Michigan, also known as the Glass House Type Public Traded as •NYSE: F •S&P 100 Component •S&P 500 Component Industry Automotive Founded June 16, 1903; 113 years ago Founder Henry Ford Headquarters Dearborn, Michigan, U.S. Area served Worldwide Key people •William C. Ford, Jr. (Executive Chairman) •Mark Fields (President and CEO) Products •Automobiles •Luxury Vehicles •Commercial Vehicles •Automotive parts FORD MOTOR COMPANY –at a glance
- 4. Ford ofEurope is a subsidiary company of Ford Motor Company . Ford of Europe is the merger of the British and German divisions of the Ford Motor Company It was founded in 1967 with headquarters in Cologne, Germany. FORD OF EUROPE
- 5. Two toughcompetitors- I. General Motors II. Chrysler Going global Global restructuring Failure of Ford 2000 and Mondeo Issues raised in the case
- 6. GENERAL MOTORS-American basedMNC CHRYSLER-American subsidiary of FIAT ANALYSIS OF THE CASE
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- 8. How AlexTrotman, Ford’s chairman and CEO(1955-1993) contributed towards FORD’S failure? 1. Global restructuring of FORD 2000 2. Improper marketing strategy 3. Improper factory practices 4. Difficulty in sharing products 5. Launching FORD MONDEO in America 6. Regional managers became powerless RESOLUTION AND CONLUSION OF THE CASE
- 9. How thenext CEO, Jacques Nasser contributed more towards FORD’S decline? 1. FORD under Naseer lost its focus as a automaker 2. He focused less in internet marketing 3. Naseer blamed CEO of BRIDGESTONE tyremaker for road deaths which damaged the reputation of both the companies. RESOLUTION AND CONLUSION OF THE CASE(cont.)
- 10. What happenedwhen Bill Ford(the original Henry Ford’s great- grandson) asked Naseer to resign? I. Bill Ford than acted both as Chairman and CEO II. He too failed to turn around the company III. FORD’s market share reached historically low of 18% IV. He than hired Alan Mullaly as the new CEO in 2006 RESOLUTION AND CONLUSION OF THE CASE(cont.)
- 11. A great exampleof an iconic organization that was once broken and staged a successful turnaround is Ford Motor Company under the leadership of then-CEO Alan Mulally. When Mulally took over as Ford’s CEO in September 2006, the company was clearly broken: Its stock price had fallen precipitously (the low was $1.01 a share in 2008), its debt was at “junk” status, and 2006 would go down as the worst year in its history with a $12.7 billion loss. It was widely expected that Ford would eventually file for bankruptcy. However, by the time Mulally retired on July 1, 2014, Ford had achieved a turnaround, becoming a “history- making revitalization.” RESOLUTION AND CONCLUSION OF CASE (cont.)
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