Peter Drucker, a management guru and consultant, feels that the good business leader allows their employees to feel a sense of control; Mulally seems to be giving his support to that theory by allowing Ford employees to give input in a non-threatening environment; thereby giving the employees a sense of control. In Concept of the Corporation, Drucker states that "both leaders and employees will benefit" (Drucker, 1983) when the employees feel that sense of control
According to Fu et al.; a transformational leader is an individual who takes action and that action "motivates followers to do more than expected for the good of the collective" (Fu, Tsui, Li, 2010, p
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
Mulally seems to have discovered that skill and uses it in an effective manner, to Ford Motor Company's ultimate benefit. According to one case study "Mulally is a person that people want to follow" (Tarabishy, Solomon, Fernald, Sashkin, 2005, p
Ford has shown a deaf ear to marketing trends over the past few years, not the least of which is exhibited by the company's reliance on vehicles that use large amounts of gas per mile. Despite the economic downturn, as late as in October of 2008, Ford was still touting vehicles like it 'crossover' the Flex "possibly the most recognizable vehicle in Ford's stable other than the Mustang," otherwise known as "The Maxi Cooper" in because of its large, boxy appearance (Bray 2008)
Marketing Setback Ford Motor Company: Marketing setback The Ford Motor Company, like all American car makers, has been increasingly beset by a series of marketing and public relations setbacks. Recently, even when going to congress to make an appeal for a financial bail-out of the American auto industry, Ford, like Chrysler and General Motors, made a gaffe when its Chief Executive Officer (CEO) took a separate private jet to congress, to plead poverty, showing a flagrant disregard for both cash and the use of fossil fuels (Currie 2008)
Despite the economic downturn, as late as in October of 2008, Ford was still touting vehicles like it 'crossover' the Flex "possibly the most recognizable vehicle in Ford's stable other than the Mustang," otherwise known as "The Maxi Cooper" in because of its large, boxy appearance (Bray 2008). It was marketed as a 'fun' vehicle: "For people in search of stimulation" rather than people seeking fuel efficiency (Warner 2008)
Overall it must be understood that it is important for a company to bring in objective, unbiased training from the outside of the company in pinpointing all necessary issues to be addressed. Ford's Pyramid Approach In the Pyramid Approach, the "alignment of strategies, processes and people, specifically "will allow the organization to state intentions, take actions and produce desirable outcomes" (Kaipa, et al
Together, these different elements will highlight the current fiscal state of Ford. (Hiraide, 2012) Based on the most recent quarter pre-tax operating profit, project the profit for the next four (4) quarters assuming that the U
In the future, this could have an adverse impact on Ford's ability to adjust with changes in fuel prices, labor costs and customer demand. (Sethi, 2009) In the last year, the company has been seeing loses in several areas to include: foreign currency translation and derivative instruments (which totaled $407 million)
However, by refusing assistance, the company could not quickly reduce its debt load and retool. (Yandle, 2009) The way that Ford's refusal affected them positively is to show the strength of the company
In fact, two of the world's largest automakers, General Motors Corporation and Ford Motor Company, are headquartered in the United States today (Mcdonald). Clearly, the global automotive industry is enormously competitive, but Ford has managed to retain the third top spot in terms of sales, but dropped from its second-place position which it occupied in 2005 (Henneman, 2006)
53). Indeed, Ford did not comment on or anticipate future needs for his company or its environmental impact at the time and the company continued this corporate philosophy for many years (Mccarthy)
743). In fact, two of the world's largest automakers, General Motors Corporation and Ford Motor Company, are headquartered in the United States today (Mcdonald)
15). In addition, during the early 1920s to the early 1940s, Henry Ford established nineteen "village industries" throughout southeastern Michigan situated within sixty miles of his company's headquarters in Dearborn; however, during a subsequent restructuring of the Ford Motor Company, his descendants closed many of them by 1950 (Meyer, 2007)
The company currently designs, develops, manufactures, and services cars and trucks on a global basis (Ford Motor Company, 2008). Ford Motor Company employs approximately 40,000 salespeople throughout the United States (Turcotte, 2005)
Stakeholder Analysis Ford Motor Company Key Stakeholders Ranked by Level of importance Internal Stakeholders External Stakeholders Corporate officers -- Responsible for establishing the goals and mission of the company and ensuring that managers and employees at all levels are properly carrying out the strategy of the company. (Luca, 2007) Customers/Car owners -- customers make an investment when purchasing a vehicle and they expect the vehicle to be safe and reliable
In addition corporate officers, managers and employees all depend on Ford for their livelihood and as such they have a vested interest in the success or failure of the company. (Phillips, 2004) 3
The company held a contest with members of social media sites (Facebook, Twitter, etc.) to find 100 people who would drive the car for six months, then blog and place comments on social media networks about the experience (Bullas, 2010)
The Ford brand is known worldwide as one that promises quality and dependability. In 2010 Ford received more awards from JD Power & Associates for customer satisfaction than any other manufacturer (Nestor, 2010)