Ford Focus and Ford Motor Company
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 Alan Mulally did not take over in 2006. The ethical behavior by Ford Motor Company’s Chief Executive Officer has shown to be a true testament to future CEO’s in the global market. When the company raised $23.5 billion to finance the restructuring and accelerate the investment in new products it shows great leadership during the Great Recession (Bartiromo, 2011). This American icon is 110 years old and recently had the strongest third quarter profit in history in 2012. This
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 Alan Mulally did not take over in 2006. The ethical behavior by Ford Motor Company’s Chief Executive Officer has shown to be a true testament to future CEO’s in the global market. When the company raised $23.5 billion to finance the restructuring and accelerate the investment in new products it shows great leadership during the Great Recession (Bartiromo, 2011). This American icon is 110 years old and recently had the strongest third quarter profit in history in 2012. This
References: Bartiromo, M. (2011). How Mulally helped turn Ford around. USA Today. Retrieved from http://usatoday30.usatoday.com/money/companies/management/bartiromo/2011-07-17-ford-alan-mulally-five-year-plan_n.htm Juras, P., & Peacock, E. (2006). Applying strategic cost analysis concepts to capacity decisions. Management Accounting Quarterly, 8(1), 24-35. Retrieved from http://search.proquest.com/docview/222802327?accountid=32521 Lavrinc, D. (2007). Mulally pledges "One Ford" global design theme in 7 years. Autoblog. Retrieved from http://www.autoblog.com/2007/01/23/mulally-pledges-one-ford-global-design-theme-in-7-years/ Pacampara, B. (2013). Why Ford is Poised to Motor Ahead. The Motley Fool. Retrieved from http://www.fool.com/investing/general/2013/03/08/why-ford-is-poised-to-motor-ahead.aspx Schwartz, T. (2010). Alan Mulally, Making Ford a Model for the Future. HBR Blog Network. Retrieved from http://blogs.hbr.org/schwartz/2010/04/alan-mulally-making-ford-a-mod.html