Abstract

This case discusses the challenges faced by Alan R. Mulally (Mulally), the president and CEO of Ford Motor Company (Ford Motors), in his efforts to implement a turnaround at Ford Motors. Ford Motors, an icon of American business enterprise, was going through a troubled phase and had posted a loss of US$ 12.7 billion for the year ended September 2006, one of the worst losses in the company's history. Mulally had succeeded Bill Ford in September 2006. During Bill Ford's time, the company had initiated the 'Way Forward initiative' in the beginning of 2006, which aimed at restructuring the operations at Ford Motors and bringing the company back into profits. Mulally was known as turnaround expert because of his success in turning around the airplanes division at Boeing. Bill Ford had brought in Mulally to lead the company as he felt that only an outsider could take drastic steps to save the company. The case highlights the challenges faced by Mulally on the organizational front and with regards to the organizational culture. There were also several problems on the operational front so as to streamline the product portfolio and improve the productivity levels of Ford Motors on par with the competition.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the key challenges faced by Alan Mulally in the turnaround at Ford Motor Company
• Discuss the pros and cons of bringing in an outsider to change the culture and performance of a company.

Keywords

Ford Motor Company, US Automotive Sector , Way Forward' restructuring plan, Alan Mulally, Boeing Company, Jaguar , Land Rover, Business Strategy , Strategic Management, Turnaround, Aston Martin