Ford Motor Company
Alan Mulally has transformed Ford Motor Company from a firm that only a few short years ago was floundering in an industry-wide morass of mismanagement, inefficiencies and no sense of direction. Since assuming the helm at Ford he has devised a plan that identifies specific, communicated goals for both management and labor that ensures that the transformation from the brink of insolvency to profitability not only takes place, but does so with a minimum of distraction to the company's focus. Mulally understands that the company's competition is not only from Ford's direct competitors but that other competitive forces are at work as well. He also understands that Ford must adhere to a business-level strategy that includes all aspects of automobile sales; not just the ones that take place at the dealership's lot.
Considering the fact that Mullally seems to be the type of leader that is "involved in overcoming difficult experiences and uses these events to give meaning to their lives" (George, Sims, Mclean, Mayer, 2007, p. 129) one could say that Mullally is a good example of an 'authentic leader' (at least according to George et al.). Knowing that Mullally is an authentic leader, and also knowing that he listens well to his employees, it is important to provide a solution to the current strong competitive winds that are buffeting the company. Accordingly, one must understand how the five forces of competition work to undermine the company and the company's goals and objectives.
The company is seeking to maintain and grow the bottom line, or profitability, of the company in order to maintain the company's place at the top of the industry as a leader in providing quality vehicles at a competitive price to a worldwide marketplace.
It is important then to understand that it is not only the other vehicle manufacturers around the world that are the company's competitors, but the customers, suppliers, other possible products, and potential competitors that the company must be aware of as well. The plan should take into account these five forces of competition and develop a plan to combat those forces.
One method the company can use to maximize its resources against its foes is to create a step-by-step plan to reach its goals and objectives and then to implement that plan in an orderly manner. The plan should take into account all markets, including the less profitable basic automobile market that is a constant in the industry.
As an example, Amazon recently introduced a low-priced iPad to compete with Apple's high-end tablet. The Amazon product does not have nearly the capacity or capabilities of the Apple product, but it is an excellent product for the beginning iPad user or a consumer with little discretionary funds available for extravagances. Amazon is looking to compete at the lower end. Apple could, of course, just ignore the possibility that Amazon could be establishing a foothold, and do nothing, or it could offer a stripped-down version of its own high-end product to compete with Amazon, thereby staving off any possible competition. Ford, too, can do the same thing. By offering a stripped-down, bare necessity vehicle for the consumer who does not need all the bells and whistles, or to those consumers making their first foray into the automobile market, Ford can capture the loyalty of these individuals that will translate into additional future sales.
Ford has other competitors to worry about other than the low-end market; it also has the high-end market, truck sales, financial services, supplies that may or may not be forthcoming, green products and regulations, and other automobile manufacturers that could offer some or all of the above products and services in a less expensive or more efficient manner. Ford's value chain activities can assist in addressing the forces of competition by focusing the company's attention on the items that are most important. Value chain activities are company activities that help in creating and manufacturing the company's product(s). The product passes through the chain of activities one-by-one in an orderly process with the end result being a product that gains from value from each step along the way. The completed project has more value because it has gone through the process than the sum of all its part.
Ford's value chain addresses a number of different areas. According to the Ford website the value chain includes components such as; Product Planning and Design, Logistics, Raw Material Extraction, Parts and Components, Assembly and Painting, Sales, and Use (Ford, 2011). Each component has a specific plan that encompasses the strategic...
With Mullaly saying, "As we come through the recession of 2008 -- 2009, were going to be a turbo machine when the economy turns around." This was occurring when the company was posting yearly losses of $14.7 billion in 2008. ("Integrating Cases,' n.d.) What all of this shows, is that the combination of the different leadership styles; would allow Mullaly to provide everyone with an honest assessment about: the
CEO as Leader of Ford Motor Company The leadership of any large, diverse multinational corporation needs to concentrate on a unifying vision coupled with transformational leadership skills to keep the company moving forward over the long-term (Wang, Oh, Courtright, Colbert, 2011). At the Ford Motor Company, the challenge is to not only manage these core aspects of effective leadership, the CEO must also initiate and continually improve innovation over time as
The company was able to turn a profit of $2.7 billion in fiscal 2009, its first annual profit since 2005. The company has been profitable for the past five quarters (MSN Moneycentral, 2010). On that basis, Mulally appears to be meeting the company's goals. However, given its financial situation -- the company still has negative equity -- the transformation process cannot be considered complete. Thus, Mulally should retain his
Consequently, better communications, continuous training became part and puzzle of doing business in a new way (Ashley, 1997). In conclusion, leadership is not only important to companies that operate on a global scale but to domestic firms as well. It's clear that when a leader takes his or her rightful position as a leader change, performance and results manifest. Their values and beliefs become the guiding principles where ideas, imaginations
Quality Management A Comparison between Southwest Airline and Domestic and International Business Operations Southwest airline is an American company that offers services domestically. The company's main competition is other domestic airlines. Ford Motor Company is an American automaker that operates in the United States and worldwide. Ford competes in the United States and globally. The decisions made by the leaders of these two organizations have directly impacted the outcome of these organizations.
The success of the company also relies on the leadership style within the company. This leadership style is oriented towards developing self-managed teams. This is another strategy used by companies in order to increase their decentralization level. This helps them increase the flexibility of the company. Flexible companies are more successful because their organizational structure allows them to easier identify environmental factors that are likely to affect their activity,
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