Alan Mulally's Restructuring of Ford Motor Company
Alan Mulally’s restructuring of Ford Motor Company
A Proposed Study
30th November, 2014
Abstract
“Ford had been struggling during the late-2000s recession, returned to profitability under Mulally and was the only American major car manufacturer to avoid a bailout fund provided by the government. Mulally 's achievements at Ford are chronicled in the book” wickipedia.com. Alan Mulally, while his tenant at the ford motor company, he has done so many managerial and structural changes in order to make the American iconic car manufacturer profitable. According to the Nelson & Quick, Mulally created one team focusing on ford brand. Ford was accused in the recession time, to keep too many brands under its corporate umbrella so it can’t focus on its cash cow “Ford” Brand. He sold out Jaguar cars, Land Rover brand and Volvo cars to minimize the corporate losses. (wickipedia.com). Following answers focus more on what extent his managerial and structural change decisions helpful to create profitable brand.
1. What are the key structural issues that Alan Mulally encountered as incoming president and CEO of Ford?
“An automobile has about 10,000 moving parts, right? An airplane has two million, and it has to stay up in the air”.(www.wickipedia.com) this is the answer Alan Mullaly provided when he was being asked a question by a journalist "How are you going to tackle something as complex and unfamiliar as the auto business when we are in such tough financial shape”.
It was that tough when Mulally came into ford from Boeing. There were significant structural issues were at the Ford. Naming them, financial crisis- while other two major car manufacturers filing bankruptcy, according to nelson &Quick (2013) “ford made to resolve to stand on its own feet and go it alone” (p.39).
Internal culture- when Mulally come in ford has a very competitive rivalry culture “and didn’t help much to its profitability. According to Nelson & Quick (2013) “those who believe that
A Proposed Study
30th November, 2014
Abstract
“Ford had been struggling during the late-2000s recession, returned to profitability under Mulally and was the only American major car manufacturer to avoid a bailout fund provided by the government. Mulally 's achievements at Ford are chronicled in the book” wickipedia.com. Alan Mulally, while his tenant at the ford motor company, he has done so many managerial and structural changes in order to make the American iconic car manufacturer profitable. According to the Nelson & Quick, Mulally created one team focusing on ford brand. Ford was accused in the recession time, to keep too many brands under its corporate umbrella so it can’t focus on its cash cow “Ford” Brand. He sold out Jaguar cars, Land Rover brand and Volvo cars to minimize the corporate losses. (wickipedia.com). Following answers focus more on what extent his managerial and structural change decisions helpful to create profitable brand.
1. What are the key structural issues that Alan Mulally encountered as incoming president and CEO of Ford?
“An automobile has about 10,000 moving parts, right? An airplane has two million, and it has to stay up in the air”.(www.wickipedia.com) this is the answer Alan Mullaly provided when he was being asked a question by a journalist "How are you going to tackle something as complex and unfamiliar as the auto business when we are in such tough financial shape”.
It was that tough when Mulally came into ford from Boeing. There were significant structural issues were at the Ford. Naming them, financial crisis- while other two major car manufacturers filing bankruptcy, according to nelson &Quick (2013) “ford made to resolve to stand on its own feet and go it alone” (p.39).
Internal culture- when Mulally come in ford has a very competitive rivalry culture “and didn’t help much to its profitability. According to Nelson & Quick (2013) “those who believe that
References: Nelson, D. L., & Campbell, J. Q. (2013). Work Teams and Groups. Organizational Behavior: science, the real world and you, 314-349. Mason, OH: South-Western.Davis, F.D. (1989). Perceived Usefulness, Perceived Ease of Use and User Acceptance of Information Technology. MIS Quarterly, 13 (3), 319-340.