Ford - The 'Way Forward' Restructuring Program

            
 
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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.



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Case Details:

Price:

Case Code : BSTR204 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

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Case Length : 14 Pages
Period : 1996-2006
Organization : Ford
Pub Date : 2006
Teaching Note : Not Available
Countries : US
Industry : Automobile

Abstract:

US based automobile manufacturer Ford Motor's North American business was facing problems since the early 2000s due to external business environment factors like severe competition from the Japanese automobile manufacturers, rise in gasoline prices and decline in the sales of SUVs. Other factors like old vehicle models, rising pension and healthcare costs and changing customer preferences also had an adverse affect on the division. As a result, Ford has been losing market share in North America and in 2005, the division posted huge losses. To revive its business in North America, Ford introduced a restructuring plan called 'The Way Forward.' The case discusses in detail about the plan and explains how it aims to turnaround Ford's North American business. Industry analysts' views on the efficacy of the plan are also covered.

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Issues:

Critically examine the 'Way Forward' restructuring plan and determine its efficacy
Study and analyze the problems that organizations face with rapid globalization
Understand the effect of huge legacy costs on the organization

Contents:

  Page No.
Introduction 1
Background Note 2
Rising Competition 3
Ford in the Early 2000s 4
Pensions and Healthcare Costs 4
Ford's Other Problems 6
Efficiency in Production 8
Smaller Organization 8
Will the Plan Work? 9
Exhibits 11

Keywords:

Ford Motor, Way Forward, Corporate Restructuring, Corporate Turnaround, Pension and Healthcare Costs, United Auto Workers, Premier Automotive Group, Jobs Bank Agreement, Product Innovation, Aligned Business Framework, Straightforward Pricing, Ford Revitalization Plan

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