Case study on ups and downs of Ford Motor Company

1. Case study on
Ford Motor Company

2.  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

3. The Ford World Headquarters in Dearborn, Michigan, also known as the Glass House
Type Public
Traded as •NYSE: F
•S&P 100 Component
•S&P 500 Component
Industry Automotive
Founded June 16, 1903; 113 years ago
Founder Henry Ford
Headquarters Dearborn, Michigan, U.S.
Area served Worldwide
Key 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

4.  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

5.  Two tough competitors-
I. General Motors
II. Chrysler
 Going global
 Global restructuring
 Failure of Ford 2000 and Mondeo
Issues raised in the case

6. GENERAL MOTORS-American based MNC
CHRYSLER-American subsidiary of FIAT
ANALYSIS OF THE CASE

7. MONDEO FORD 2000

8.  How Alex Trotman, Ford’s chairman and CEO(1955-1993)
contributed towards FORD’S failure?
1. Global restructuring of FORD 2000
2. Improper marketing strategy
3. Improper factory practices
4. Difficulty in sharing products
5. Launching FORD MONDEO in America
6. Regional managers became powerless
RESOLUTION AND CONLUSION OF THE CASE

9.  How the next CEO, Jacques Nasser contributed more towards
FORD’S decline?
1. FORD under Naseer lost its focus as a automaker
2. He focused less in internet marketing
3. Naseer blamed CEO of BRIDGESTONE tyremaker for road deaths
which damaged the reputation of both the companies.
RESOLUTION AND CONLUSION OF THE CASE(cont.)

10.  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 company
III. 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.)

11. 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.)

12. PRESENTED BY
Arun
Amity Global
Business
School,Noida