Case study onFord Motor Company

The Ford Motor Company (commonly referred to simply as "Ford") is an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit.

It was founded by Henry Ford and incorporated on June 16, 1903.

Overview

The Ford World Headquarters in Dearborn, Michigan, also known as the Glass House

Type PublicTraded as •NYSE: F

•S&P 100 Component•S&P 500 Component

Industry AutomotiveFounded June 16, 1903; 113 years agoFounder Henry FordHeadquarters Dearborn, Michigan, U.S.Area served WorldwideKey people •William C. Ford, Jr.

(Executive Chairman)•Mark Fields(President and CEO)

Products •Automobiles•Luxury Vehicles•Commercial Vehicles•Automotive parts

FORD MOTOR COMPANY –at a glance

Ford of Europe is a subsidiary company of Ford Motor Company .

Ford of Europe is the merger of the British and German divisions of the Ford Motor Company

It was founded in 1967 with headquarters in Cologne, Germany.

FORD OF EUROPE

Two tough competitors-I. General MotorsII. Chrysler Going global Global restructuring Failure of Ford 2000 and Mondeo

Issues raised in the case

GENERAL MOTORS-American based MNC

CHRYSLER-American subsidiary of FIAT

ANALYSIS OF THE CASE

MONDEO FORD 2000

How Alex Trotman, Ford’s chairman and CEO(1955-1993) contributed towards FORD’S failure?

1. Global restructuring of FORD 20002. Improper marketing strategy3. Improper factory practices4. Difficulty in sharing products5. Launching FORD MONDEO in America6. Regional managers became powerless

RESOLUTION AND CONLUSION OF THE CASE

How the next CEO, Jacques Nasser contributed more towards FORD’S decline?

1. FORD under Naseer lost its focus as a automaker2. He focused less in internet marketing3. Naseer blamed CEO of BRIDGESTONE tyremaker for

road deaths which damaged the reputation of both the companies.

RESOLUTION AND CONLUSION OF THE CASE(cont.)

What happened when Bill Ford(the original Henry Ford’s great-grandson) asked Naseer to resign?

I. Bill Ford than acted both as Chairman and CEO II. He too failed to turn around the companyIII. FORD’s market share reached historically low of 18%IV. He than hired Alan Mullaly as the new CEO in 2006

RESOLUTION AND CONLUSION OF THE CASE(cont.)

A great example of an iconic organization that was once broken and staged a successful turnaround is Ford Motor Company under the leadership of then-CEO Alan Mulally. When Mulally took over as Ford’s CEO in September 2006, the company was clearly broken: Its stock price had fallen precipitously (the low was $1.01 a share in 2008), its debt was at “junk” status, and 2006 would go down as the worst year in its history with a $12.7 billion loss. It was widely expected that Ford would eventually file for bankruptcy. However, by the time Mulally retired on July 1, 2014, Ford had achieved a turnaround, becoming a “history-making revitalization.”

RESOLUTION AND CONCLUSION OF CASE (cont.)

PRESENTED BYArunAmity Global Business School,Noida