Bill Ford took over Ford Motors in 2001 as the CEO, when the company was struggling with falling sales around the world – in a time when the company desperately needed careful planning and their execution. Bill Ford revised and updated the company’s tactical plans – cutting costs, gaining back the experienced staff, catering to specific market niches and more. Some of these targets have been met, a good number of them still need work. There are great challenges ahead for Bill Ford, but perhaps he can show the great management abilities of the Ford family and turn around the situation.
1. Based on information in the case, what are some of Ford’s strategic goals? What are some of Ford’s tactical goals?
After Bill Ford’s assuming of the position of CEO, Ford Motors have faced some revisions and updating of its strategic and tactical goals. Ford Motors have been experiencing falling sales and inadequate funding for its operations. Ford has set its strategic goals as operating more cost effectively and to cut expenses, get better sales output, and ensuring quality of its products and services.
To that end, the company’s tactical goals are –
-To improve sales, specific market niches are targeted. This is because customer tastes in automobile market has become more specialized and specific. Delivering to these specific tastes can mean less competition and more sales.
- Increase the production of the profitable Jaguar series of cars.
-New advertisement campaigns to promote the Ford brand name.
-Cutting costs by taking a stronger stance with the United Auto Workers union.
-Cutting costs by closing down five major plants, and laying off 35,000 workers within five years.
2. What are some of the actions that Bill Ford and other managers must take in order to ensure a successful implementation of Ford’s tactical plans?