Ford's Turnaround Strategies

7/25/2019 Ford's Turnaround Strategies

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Ford's Turnaround

StrategiesBy: Tamie Cardozo

Nayab Baig

Dave Fernandes

Joel Miranda

Dominic Molayan

Jason Leis


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Brie!

"n June #$$%& Ford Motor Comany as announced as t(eorld)s T*"+D largest automotive manu!acturers,

"n -.#/& Ford Motors entered into t(e lu0ury car segment

it( t(e ac1uisition o! Lincoln Motor Comany,

Bill Ford t(e Former resident and C23 o! F3+D M3T3+C3M45N6 aointed 5lan Mulally in (is lace inSetember #$$7&(en t(e comany as in state o! crises,

Bill Ford ut several e!!orts to turnaround comany)s!ortunes& but as unable to tac8le t(e sti!! oosition!rom it(in t(e comany,


3/15

Mulally)s main ob9ective at Ford Motors as to save t(e comany !romban8rutcy and bring it bac8 into ro!its,

5ccording to t(e analysts Mulally (ad strong e0ertise in manu!acturing andcould bring about a lot o! imrovement in t(e manu!acturing rocesses o!t(e comany,

Mulally (imsel! started to drive t(e Ford Motors) ve(icles to !ind t(eossible imrovements (ic( can be made,

5nalysts also ointed on t(e !act t(at Ford Motors as asting its e!!ortson building and mar8eting its too many brands,

Mulally)s biggest c(allenge at Ford Motors as trans!orming t(e deerooted culture o! comany& (ic( as said to be de!eatist and

dys!unctional,

Managers (o came out it( t(eir ea8nesses ere areciated ;43SS"BL2M3T"


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4roblems

5lan +, Mulally as aointed to sto t(e comany !rom bleeding i,e, t(ecomany as running in losses o! ? -#,% billion, 5s (e as 8non asturnaround e0ert,

T(ere ere di!!erence o! oinions beteen *enry Ford and t(e ot(er

investors (en (e insisted t(e comany s(ould !ocus on roducinga!!ordable cars !or a mass mar8et,

"n -.-. con!lict arose beteen t(e stoc8(olders and *enry Ford over a loto! money being sent on building a giant manu!acturing comle0 inDearborn& Mic(igan =S5,

"n organizational !ront & Mulally (ad to ma8e Ford motor)s emloyees snaout o! t(eir let(argic and bureaucratic style o! !unctionary,


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Cost issues

5 big reason is t(e cost o! labor, 5s analyzed by *arbourFela0&labor costs t(e Detroit T(ree substantially more er ve(iclet(an it does t(e Jaanese,

*ere's one e0amle o! (o 8notty Detroit's labor roblem can

be:

"! an assembly lant it( @&$$$ or8ers (as no dealer orders& it(as to otions, 3ne is to close t(e lant !or a ee8 and notbuild any cars, T(en t(e comany still (as to give t(e idled

or8ers ./ ercent o! t(eir ta8e(ome ay lus all bene!its !ornot or8ing, So a oneee8 s(utdon costs ?%,% million or?-&/A/ !or eac( ve(icle it didn't ma8e,


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5lan Mulally)s strategic lan


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Foster Functional and Technical

Excellence:

no and (ave a assion !or our business and ourcustomers

Demonstrate and build !unctional and tec(nicale0cellence

2nsure rocess disciline

*ave a continuous imrovement (iloso(y and ractice


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Own Working Together:

Believe in s8illed and motivated eole or8ingtoget(er

"nclude everyoneE resect& listen to& (el andareciate ot(ers

Build strong relations(isE be a team layerE develo

ourselves and ot(ers

Communicate clearly& concisely and candidly


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Role Model Ford Values:

S(o initiative& courage& integrity and good cororatecitizens(i

"mrove 1uality& sa!ety and sustainability

*ave a can do& !ind a ay attitude and emotionalresilience

2n9oy t(e 9ourney and eac( ot(erE (ave !un never atot(ers) e0ense


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Deliver Results:

Deal ositively it( our business realitiesE develocomelling and comre(ensive lans& (ile 8eeing anenterrise vie

Set (ig( e0ectations and insire ot(ers

Ma8e sound decisions using !acts and data

*old ourselves and ot(ers resonsible and accountable!or delivering results and satis!ying our customers


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3BJ2CT"


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Competitive Analysis


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Internal Rivalry

T(e automotive industry is noted !or its intense rivalry&and it(in t(e =nited States mar8etFord !aces !ive ma9or cometitors: >M& Toyota& C(rysler&*onda& and Nissan,


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Thank You

Ford's Turnaround Strategies

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