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Alan Mullaly and Ford Motors - Term Paper Example

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Alan Mulally and Ford Motors Table of Contents Defining the Issue 3 Impartial Evaluation 4 Evaluation 6 Personal Opinion with Supporting Argument 8 Conclusion 9 References 10 Defining the Issue There are numerous examples in the corporate history where organizational leaders are recognized to have a significant impression on the performance of the company in a highly challenging situation…
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Alan Mullaly and Ford Motors
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Download file to see previous pages ”). For instance, it was during the recent global economic downturn that most of the automobile companies faced various challenges in gaining a competitive position to survive in the international market which included General Motors, Harley Davidson and even Ford. It is in this context that leadership advantages were apparently observed in these companies. The most debated issues related to this context were the turnaround of Ford which is stated to be steered by Alan Mulally as the organizational leader (Dean & Varshney, “Your Next Turnaround Leader: Industry Expert or Outsider?”). Alan Mulally is considered to be an outsider to the automobile industry as well as to the company (i.e. Ford Motors) due to the fact that his early professional career related to the Boeing Company, a commercial airplane and integrated defense system producer and thus had limited knowledge about the operational structure of the automotive industry (BBC News, “Boeing Exec Made New Ford Chief”). He joined the company in the year 2006 when Ford was witnessing losses and severe downfalls in its overall competency. In order to face these challenges and sensing the upcoming recession then, Alan Mulally decided to borrow a significant amount from the debt market against the company’s assets. ...
One factor has been the leadership of Alan Mulally and the other factor was the crisis faced by the company during the period. Thereby, the paper intends to recognize the stronger factors to influence the change management of Ford and reward its remarkable competency in the international platform. Impartial Evaluation Both the factors of change, i.e. the financial crisis faced by the organization and the leadership change witnessed by the organization can be observed as quite significant in influencing the turnaround of the company. It was in the year 2006 when the company was facing losses for four consecutive years. Therefore, it is quite evident that the company had to witness significant challenges to maintain its financial competency and survive in the fiercely competitive market of global automobile industry (Armitage, “Ford CEO Alan Mulally: The Turnaround Specialist”). Alan Mulally joined the company during the financial crisis of the company. Financial turmoil was also apparent in the domestic economy of the company that certainly supported the impacts of internal limitations faced by the organization. Considering these facts, Alan Mulally concentrated on the implementation of various strategies that included retrenchment, restructuring of the organizational operations, marketing strategies, as well as financial strategies (Wall Street Journal, “Testimony of Alan R. Mulally”). Few of the most significant strategies that boosted the change in the organization concentrated on the borrowing of $23.6 billion from the market against the assets of Ford Motors (Armitage, “Ford CEO Alan Mulally: The Turnaround Specialist”). The strategic decisions of Alan Mulally further initiated to cut almost 30,000 ...Download file to see next pagesRead More
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