...Ford Motor Company Alan Mulally, CEO, Ford Motor Company Leadership and Organizational Behavior November10, 2010 by Walid Mediouni Dr. Yohannes Abate Fall 2010 Washington DC campus Strayer University 1) Discuss the role of leadership and how it can impact organizational performance. The role of leadership in an organization is like the role of a general in the army; they both plan and lead a group of people to accomplish a goal. The leader of an organization can make it a successful business because of their leadership style or they can cause an organization to fail. A good leader can be compassionate to the employees needs, listen to their complaints and communicate with their employees. In the case it is stated, “Alan Mulally’s leadership has resulted in Ford making some strategic moves.” (Hellriegel et al., 2011) His skills and style helped Ford to move ahead in the industry during an economic recession. 2) Discuss Mulally’s leadership style at Ford Motor Company and provide examples of how his actions fit this style. According to Lewis Booth, chief financial officer at Ford,”Alan’s style is pretty relentless.” He says,” If this is the reality, what are we going to do about it?” (Hellriegel, 2011). Mulally is a typical example of a learning leader. (Journelism.org, 2010) What’s most impressive is Mulally’s “results oriented” leadership style. (American Power, 2010). Mulally’s leadership style is relationship behavior. Hellriegel defines this...
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...“Alan Mulally, CEO, Ford Motor Company” Chiquetta Silver BUS 520 Dr. Amine Ayad May 15, 2011 Discuss the role of leadership and how it can impact organizational performance. Leadership is the process of developing ideas and a vision, living by values that support those ideas and that vision, influencing others to embrace them in their own behaviors, and making hard decisions about human and other resources (Hellriegel & Slocum, 2011, p.4). Leadership is guiding people toward productive results to achieve the goals of the organization. It involves influencing people to move from where they are to some new place. An effective leader has the ability to motivate and influence others. Leadership influences organizational performance depending on the level to which the leader enables managers and team leaders to plan, organize, control, and act effectively. By accepting authority, responsibility, and accountability, managers can confidently face though situations that require decisions made. Both the manager and the subordinate must know how to distinguish right from wrong by using sound judgment. Likewise, the leader must to learn his own strengths and weaknesses at work as well as his personal life and seek new professional skills. Everybody has different opinions and attitudes towards values, lifestyles, and behaviors. Thus, an effective leader will use diversity at the workplace to combat the fierce competition in the market place. Cultural diversity within the...
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...“Ford Motor Company” Barbara Wilson Professor Andrea Dennis Business 302 February 7, 2011 Discuss at least three criteria the company should use to decide which of the four listed options is best and the reasons why each criterion should be used. “Steps to Rational Decision Making” Define the problems: Ford Motor has been losing money for years, particularly in its North American operations. Option one is to close down older plants in an effort to realign production and sales. The best criteria decision to use should be “Steps to Rational Decision Making”. The first step in decision making is to identify and define the problem. Identify Decision Criteria are the standards used to guide judgments and decisions. Weight the Criteria. After identifying decision criteria, the next step is deciding which criteria are more or less important. Some companies use mathematical models for weighting decision criteria, all require the decision maker to provide an initial ranking of the criteria. Some use absolute comparisons, in which each criterion is compared to a standard or ranked on its own merits. Another method uses relative comparisons, in which each criterion is compared directly to every other criterion. Some criteria weight that guided decision maker’s judgment to close or not close the company included the cost of present inventory sales. Also cost to buying out the workers, shuttering the plants, setting up a new business and selecting a new location for...
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...Abstract Ford Motors used to be a prominent automobile company in the past. The company is on the verge of bankruptcy because of unexpected/unusual expenses incurred in the form of changes in investment and extinguishment of debt liabilities. The company should devise a policy that curtails the cost of sales, particularly, structural cost. Ford needs vast managerial and structural changes. The company needs to revise its price patterns, designs and make new and attractive products for the ultimate user, mainly, middle-class groups. Ford also needs expansion in Europe and Mexico. Keywords: Ford motors, cost analysis, microeconomics, demand, recommendation Introduction Purpose Microeconomics is that the branch of economic science that analyzes the behavior of individual shoppers and corporations to do and perceive the decision-making method of each business and households. Economics is concerned with the interaction between individual consumers and sellers also because the factors that influence the alternatives created by both consumers and retailers. Especially, economics focuses on patterns of providing and demand and, therefore, the determination of worth and output in individual markets. The aim of this paper is to clarify however economics influences the Ford Motor Company. History Henry Ford was born on June 30th, 1863. Ford saw his first car when he was 12 years old. Henry and his father were riding into Detroit during that time span. At...
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...Ford Motor Company’s Strategic Human Resources John Lucas Liberty University HRM 530 Strategic HR Management Dr. Al Bryant Summer 2014 Ford’s Business and Human Resource Strategy One team, one plan and one goal unites the human resources and business challenges into an integrated strategic plan for Ford Motor Company (Ford, 2014). Ford develops and supports its employees and business through labor relations, business operations, compensation, benefits, work force planning and recruiting, organizational development, personnel relations, human resource strategy, learning and development, aggressively restructuring to operate more profitably at the current economic demand and changing model mix, accelerate the development of new products our customers want and value, finance our plans while improving our balance sheet and work together as an effective team (Ford, 2014). Ford has ensured that its human resources strategy is aligned with its business strategy by encouraging focus, teamwork and a single global approach, and through training and workforce development, employee efforts are aligned to reach a common definition of success (Ford, 2014). Automotive leadership through teamwork to develop customer satisfaction, employee and essential business partner relationships, dealers, investors, suppliers, unions, councils, and communities where Ford has established its presence (Ford, 2014). Ford’s team develops high quality green, safe products, maintains a strong business...
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...Ford Motor Company Strayer University BUS 302 Professor Doreen Rainey October 31, 2010 Ford Motor Company located in Dearborn, Michigan has an alarming problem. Ford Motor has lost money in its North American sector of operation in the past years, despite its increase of models. In an attempt to attain a larger portion of the car market Ford Motor acquired some luxury models. Ford Motor moved some what away from Mr. Ford’s vision to produce cars affordable for the masses when acquiring luxury models. In order to reduce loses that are being acquired each year Ford must come up with a solution. There are four options that must be viewed to reduce losses. First is the reduction of older plants. Second produce only practical small cars. Third focus on the international market where Ford has been very successful and reduces it present in North America. Fourth dump the Premium Automotive Group (week 4, nd). Ford should use the S.M.A.R.T. guidelines, Specific, Measurable, Attainable, Realistic, and Timely (Management, 2011, p.79). Let’s take a look at the second option and view it with the S.M.A.R.T. guidelines. Ford specific goal using this option would be producing practical small cars to reduce the revenue lost. The American people are becoming more conscience of the rising gas price environment. SUVs and large car increase the usage of gas causing an increase in out of the pocket expense for personal vehicle. It is a proven fact that SUVs and large car use...
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...other internal and external factors have made Ford realize they need to explore solutions to deal with the supply chain challenges leading to cost and the reality they are facing and may continue to face in the future. The majority of issues in Ford’s present chain result from inefficient control of their large supplier base and the complexity of their supplier network in addition to inability to communicate to server their end customers. Ford has realized the urgent need to change their supply chain in order to be more cost effective and more profitable for its shareholders. Since Dell and Ford are two different types of markets, one is in the computer manufacturing/distribution business and the other is in the automobile business, it does not seem right for Ford to implement the exact “virtual integration model” deployed by Dell. The fact the car buyer usually wants to touch and feel the car before they make a purchase of a car would put Ford at risk of losing their customers to the competitors. On the other hand when customers buy computers on-line they don’t have to worry about touching and testing the computers and they require a better price than the other retail avenues to buy computers. Some other considerations in this case are the consideration of the buying frequency of cars versus computers and financing requirements for a car versus a computer. Another consideration would be the number of suppliers to support Ford manufacturing versus Dell’s computer manufacturing...
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...Trends & Strategies……………………………………………………………….12 Risks………………………………………………………………………………..13 Risk Factors……………………………………………………………………….15 Analysis of Financial Statements and Ratios…………………………………..16 Conclusion…………………………………………………………………..…….17 Bibliography………………………………………………………………………19 Attachments: A – Income Statement for 5 Years B – Balance Sheet for 5 Years C – Horizontal Analysis of Income Statement D – Horizontal Analysis of Balance Sheet E – Company’s Rations compared to Industry Averages Industry Overview: The automobile industry is comprised of companies that design, manufacture, engineer, assemble, and market automobiles and motorcycles and provide leasing and financial services. Industry performance is closely linked with economic performance. The auto industry represents one of the largest segments of the U.S. economy. The U.S. industry is dominated by the Big Three, General Motors, Ford Motor Company, and Chrysler. The auto industry employs nearly 6.6 million people nationwide which represents about 5% of private sector jobs. Surging oil prices have shifted demand away from SUV’s and light trucks to more fuel efficient options. This change in consumer preferences has caused German, Japanese, and Korean manufacturers market share of the industry to expand. The American...
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...Running head: FORD MOTOR COMPANY Leadership and Organizational Behavior Professor Michael Padgett Strayer University Ronetta Perry May 15, 2011 “Ford Motor Company” The Ford Motor Company, founded in 1903 by Henry Ford, is one of the largest auto makers in the world. In recent years, the auto industry, including Ford Motor Company, has experienced increase financial hardship. Ford lost $12.6 billion in 2006, $2.7 billion in 2007, and as a result of the biggest sales slump in decades, they lost $14.6 billion in 2008, making it the worst year in its history. But when the car industry went into what seemed like a death spiral during the global recession, Ford resisted taking the federal bailout and vowed to show the industry that the brand was built for toughness. Discuss the role of leadership and how it can impact organizational performance. “Leadership is commonly defined as establishing a clear vision, communicating the vision with others and resolving the conflicts between various individuals who are responsible for completing the company’s vision”(Media & Vitez, 2009). Traditionally there are four different leadership styles that suit the follower and their willingness; the telling style in which the leader gives specific directions and supervises closely, the selling style which helps builds confidence in the follower by the leader providing direction and encouraging two-way communication, the participating style in which the leader encourages followers...
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...Ford Motor Company Alan Mulally, CEO, Ford Motor Company Kwatila Ghanyen Prof. Mike Petty BUS 520: Leadership and Organizational Behavior Strayer University Wednesday November 16, 2011 Alan Mulally, CEO, Ford Motor Company Allan Roger Mulally is the present Chief Executive Officer of Ford Motor Company. Ford has been struggling to survive since the 2000s but has regained tremendous profitability under the leadership of Mulally. In this paper, we shall discuss the role of leadership and how it can impact organizational performance, Mulally’s leadership style at Ford and how goal setting has helped Ford improve performance. Ws shall also assess Mullaly on each element in communication openness and the effectiveness of his leadership style and conclude by making recommendations on whether Mullaly should continue with his leadership style or use a different style. The Role of Leadership and How it Can Impact Organizational Performance Leadership is very vital to any organization or business; it guides people towards productive results and aims at achieving the goals of an organization. An effective leader is able to motivate and influence followers when there is a proper alignment between the leader and subordinate. Leadership has been recognized as a major factor in project success and charismatic transformational leadership has a substantially positive effect on organizational performance. (Huang, Hsu & Chiau, 2011) Leaders induce change in organizations through...
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...Ford Motor Company Kate What Would You Do? The case creates for options to choose from. Discuss at least three criteria the company should use to decide which four listed options are best and the reasons why each criterion should be used. I think that if I was working for the Ford Motor company I would think about shutting down older plants. I would close down the plants mainly because they are not selling the cars that they are producing, therefore causing the ford motor company to loose profit. I would also move away from producing larger cars, and move more toward producing cars that are better on gas. I feel like the customer would buy a car that’s better on gas, before they buy a car that looks good. The larger cars would mostly cause the greatest decrease in the profit, because some people just cannot afford to spend a lot of money in gas. If Ford can produce a car that people can afford to buy and will not break their pockets at the gas pump, I believe that the ford will be able to sell more cars. The other option I would choose is to reduce the number of plants in Northern America, and utilize our international markets. It would make sense that because people in North America are not buying ford cars like they used to, and our international markets are doing very well, that we would continue our mass production with our international markets and limit our production over in North America. In the light of the possibility that market conditions can and do...
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...Ford Motor Company Ford Motor Company In 2008, three major U.S. automakers asked the government for a bailout. Ford, along with GMC, was two of those companies. Ford was able to mortgage enough assets and avoid for a bailout to avoid bankruptcy. Since that time, Ford has made strides toward increasing their annual income, providing more fuel efficient cars, and becoming known in the global world market. After reviewing the 2010 income statement, Ford reported a full net income of $6.6 billion. It competitors, Honda reported a full net income of $6.88 billion and GMC a full net income of $6.17 billion. Even though GMC shares are higher, Ford showed higher earnings than GM. According to Ford’s 2010 annual report, the earnings per share increased by 80 cents a share from 2009 and that the net income is Ford’s highest in more than ten years (annual report). It would be beneficial for Ford management to investigate a variety of ways to increase interest among its internal and external stakeholders to purchase stocks which in turn will help to increase the overall net profit of the company. In looking at the balance sheet, Ford reported the most in liabilities and long term debt. However, Ford showed greater earnings assets than both Honda and GMC (Appendix B). Honda reported the lowest amount in liabilities and a significantly lower long term debt than Ford (Appendix B). Overall, GMC fared better than Ford on the balance sheet with the lowest long term debt and decreased...
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...Ford Motor Company Petris Irina Group 310 Contents General Presentation 3 Ford in Romania 4 Competitors 4 SWOT Analysis 5 Bibliography 6 General Presentation Ford Motor Company is an American multinational corporation which is ranked 3rd in the world in automobile production. Ford has always been in the top ten largest companies in the world by revenue and in 1999 was among the most profitable companies in the world and the second largest automobile manufacturer in the world. Type | Stock Company | Founded | June, 17, 1903 | Industry | Automobile | Products | Cars, vans | Area | Worldwide | Net profit | 5.664 billion USD | Total equity | 190.6 bilion USD | Employees | 160.000 | Henry Ford's combination of efficient factories, workers well paid and low prices revolutionized the automotive world and this process was known as "Fordism". . Ford is the largest company in the world belonging to a single family, the Ford family it’s in the management of more than 100 years. Ford in Romania In 2007, Ford offered 57 million euros for 72.4% stake in Automobile Craiova. Ford officially took over Automobile Craiova in March 2008. The new shareholder modernization project began in May 2008 and in spring 2009 he bought a packet acquired 22% stake held by SIF Oltenia Automobile Craiva. Automobile production at Ford's Craiova began on September 8, 2009, but at a very low rate, with about 10 cars per day, producing by the end...
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...CASE ANALYSIS ON FORD MOTOR COMPANY Name: sunil sharma Madonna ID: Subject: Business Policy Subject Code: MGT_4950_WB_58_01_2014_10 Date of Submission: The Ford Motor Company Brief Profile The Ford Motor Companyis an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand. In the past it has also produced heavy trucks, tractors and automotive components. Ford owns small stakes in Mazda of Japan and Aston Martin of the United Kingdom. It is listed on the New York Stock Exchange and is controlled by the Ford family, although they have minority ownership. Ford Motor Company was founded in 1903 by Henry Ford in Detroit, MI. Not only did Ford revolutionize the development of the automobile as a product, he is also the visionary behind the idea of mass production. Ford's ability to make automobiles affordable for the masses is cited as a driving force behind both the automobile industry and the creation of a middle class in America. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines; by 1914 these methods were known around the world as Fordism. Ford's former UK subsidiaries Jaguar and Land Rover, acquired in 1989...
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...Case – “Ford Motor Company” Instructor: Professor Pamela McLaughlin Course: Management of Concepts – BUS 302 Date: July 17, 2011 * This case outlines 4 strategic options Ford is pursuing to increase its profitability. Describe each of the 4 options. For each option list 2 criteria you would use to evaluate the option. The four strategic option that Ford Motor Company might pursue to increase its profitability is to (1) close down older plants in an effort to realign production and sales, (2) move the company to produce only smaller cars, eliminating or sharply reducing the SUV and truck lines, (3) take a dramatic step of dramatically reducing their North American presence and focus their efforts on international markets where they have been very successful, and (4) sell the entire PAG group, letting someone else figure out how to make money selling so few vehicles a year (Case Study, para. 3). When looking at any strategic plan, one needs to identify the decision criteria. Decision criteria are the standards used to guide judgment and decisions, states Chick Williams in Management. Naturally, the more criteria a possible solution meets, the better that solution will be. Two of the criteria that Ford would need to consider if taking the option to close down older plants would be, buying out workers (severance agreement) and dealing with the political implications of a closure. A buy-out agreement results from the collective bargaining process between Ford and its...
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