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Alan Mulally Ford Motor Company

In: Business and Management

Submitted By dormae
Words 1631
Pages 7
Alan Mulally, CEO, Ford Motor Company Elizabeth Haskins
Strayer University

Instructor: Dr. Yohannes Abate
Leadership and Organizational Behavior – BUS 520010VA016

August 7, 2011

Abstract This case focuses on the challenges Alan Mulally (Mulally); CEO of Ford Motor Company faces to implement a new beginning for Ford. Upon Mulally’s arrival, Ford was on the verge of a financial collapse, reporting a $12.6 billion dollar loss in 2006 and a $2.7 billion dollar loss in 2007. Bill Ford hired Mulally to lead the company as he felt that only an outsider could take the extreme steps needed to save the company from financial failure. In a strategic move to ensure Ford maintained its independence and sensing a recession as well as not to be forced to accept a government loan , Mulally borrowed $23 billion against Ford’s assets. This was a strategic move in the hopes that Ford would maintain its independence.

This case study will highlight the challenges faced by Mulally, his management and leadership style and what changes were implemented into the organizations culture to ensure its success and place in the car industry.

Introduction Mulally moved to Ford in September 2006. When starting at Ford, he had not engineered, designed or built any cars. He came from the defense industry. Previously, he had been employed with Boeing since 1969. At Boeing, he held a number of engineering and program management positions, making contributions to the Boeing 727, 737, 747, 757, 767 and 777 projects. (Wikipedia, 2011). He was known at Boeing for enriching Phil Condit's (Chairman and CEO of Boeing) "Working Together"-philosophy through and beyond the 777-program. Mulally had no previous experience in sales arena and he certainly was not known, as the quote goes, as a “Detroit car man," much less a car man at all. What was clear was his “results...

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