Alan Mulally's Challenges at Ford Motor Company

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BSTR263 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Business Strategy, Turnaround
Case Length : 16 Pages
Period : 2006 - 2007
Pub Date : 2007
Teaching Note : Not Available
Organization : Ford Motor Company
Industry : Automobile
Countries : USA, World


This case discusses the challenges faced by Alan R. Mulally (Mulally), the president and CEO of Ford Motor Company (Ford Motors), in his efforts to implement a turnaround at Ford Motors. Ford Motors, an icon of American business enterprise, was going through a troubled phase and had posted a loss of US$ 12.7 billion for the year ended September 2006, one of the worst losses in the company's history.

Mulally had succeeded Bill Ford in September 2006. During Bill Ford's time, the company had initiated the 'Way Forward initiative' in the beginning of 2006, which aimed at restructuring the operations at Ford Motors and bringing the company back into profits.

Mulally was known as turnaround expert because of his success in turning around the airplanes division at Boeing. Bill Ford had brought in Mulally to lead the company as he felt that only an outsider could take drastic steps to save the company. The case highlights the challenges faced by Mulally on the organizational front and with regards to the organizational culture. There were also several problems on the operational front so as to streamline the product portfolio and improve the productivity levels of Ford Motors on par with the competition.


  Understand the key challenges faced by Alan Mulally in the turnaround at Ford Motor Company

  Discuss the pros and cons of bringing in an outsider to change the culture and performance of a company


  Page No.
An Icon in Distress 1
Background Note 2
Mulally Joins Ford Motors 4
Challenges at Ford Motors 5
The Road Ahead 10
Exhibits 12


Ford Motor Company, US Automotive Sector , Way Forward' restructuring plan, Alan Mulally, Boeing Company, Jaguar , Land Rover, Business Strategy , Strategic Management, Turnaround, Aston Martin

An Icon in Distress - Next Page>>


Cases on Related Topics :- Ford - The 'Way Forward' Restructuring Program, Consumer Driven Six Sigma at Ford, Carlos Ghosn - The Turnaround Specialist

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