Alan Mulally's Challenges at Ford Motor Company

Strategic Management|Management Strategy |Business Strategy Case Study|Business Strategy|Case Study|Case Studies

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR263
Case Length : 16 Pages
Period : 2006 - 2007
Pub Date : 2007
Teaching Note :Not Available
Organization : Ford Motor Company
Industry : Auto and Ancillaries
Countries : USA, World

To download Alan Mulally's Challenges at Ford Motor Company case study (Case Code: BSTR263) click on the button below, and select the case from the list of available cases:

Buy With PayPal

Price:

For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra

» Business Strategy Case Studies
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Please leave your feedback

<< Previous

"The bureaucracy at Ford grew, and managers took refuge in the structure when things got tough rather than innovate or try new ideas that seemed risky."¹

- Allan Gilmour, former chief financial officer at Ford Motor Company, in 2007.

"He's (Alan R. Mulally) got turnaround experience and has a reputation as a very good manager. I think anyone who takes the job at Ford has a lot of wood to chop but he seems like he has a decent track record and organization skills."²

- Jon Rogers, a senior auto analyst at Citigroup, in 2006.

"I have never seen a company with the lack of consistency of purpose as Ford."³

- Alan R. Mulally, president and CEO, Ford Motor Company, in 2007.

An Icon in Distress

In June 2007, Ford Motor Company (Ford Motors), the world's third largest automotive manufacturer, announced that it was working with Goldman Sachs⁴, Morgan Stanley⁵, and HSBC⁶ to decide on the future of its upscale brands Jaguar and Land Rover.⁷ Though Ford Motors did not confirm the news that it would sell these brands, it did not rule out the possibility either. Tom Hoyt, a company spokesperson, said, "As we've consistently been saying since last year, Ford Motor Company has been assessing a number of strategic options for all of our operations, as any responsible company would do. Ford is actively investigating its options in terms of other possible actions, and we're not ruling anything in or out."⁸

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Earlier, in March 2007, the company had sold its luxury brand Aston Martin to a UK-based business group.

When Ford Motors sold Aston Martin, many analysts anticipated that it would also sell Jaguar and Land Rover as these luxury brands contributed to a considerable chunk of the company's losses.

After failing to re-brand and integrate these luxury brands with its product portfolio, Ford Motors felt that acquisition was not the right way of penetrating into the upscale segment. The decision to sell these luxury brands was part of the restructuring exercise called the 'Way Forward' plan initiated at Ford Motors in January 2006 (Refer to Exhibit I for a note on Ford Motors' 'Way Forward' restructuring plan).

Alan Mulally's Challenges at Ford Motor Company - Next Page>>

1] David Kiley, "The New Heat on Ford," www.businessweek.com, June 04, 2007.

2] David Ellis, "Ford's troubled 'Way Forward'," http://money.cnn.com, October 10, 2006.

3] "Ford CEO Mulally Battles Red Tape, Faces Investors," www.newsmax.com, May 09, 2007.

4] Goldman Sachs is one of the leading global investment banking, securities, and investment management firms. (Source: http://www2.goldmansachs.com).

5] Morgan Stanley is one of the leading financial services firms in the world. It advises clients on strategic transactions, in pioneering the global expansion of finance and capital markets, and in providing new opportunities for individual and institutional investors. (Source: www.morganstanley.com).

6] HSBC is one of the largest banking and financial services organizations in the world, headquartered in London. HSBC's international network comprises over 10,000 offices in 82 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East, and Africa. (Source: www.hsbc.com).

7] "Ford to Announce Sale of Land Rover and Jaguar," www.execdigital.co.uk, June 12, 2007.

8] Nick Bunkley, "Sale Possible as Ford Considers Its Options for Jaguar and Land Rover," www.nytimes.com, June 13, 2007.