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 |
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BSTR204 |
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra
Themes--- |
| Case Length |
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14 Pages |
| Period |
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1996-2006 |
| Organization |
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Ford |
| Pub Date |
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2006 |
| Teaching Note |
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Not Available |
| Countries
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US |
| Industry |
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Automobile |
Abstract:
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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:
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
Ford - The 'Way Forward' Restructuring Program
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