Ford Case Study
The Ford Motor Company 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
History
Let have to look History of ford
FORD COMPANY is an American automaker and the world's fifth largest automaker based on worldwide vehicle sales. Based in Dearborn, Michigan, a suburb of Detroit, the automaker was founded by Henry Ford, on June 16, 1903. Ford Motor Company would go on to become one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Depression. The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 110 years.
Issues:
» analyze the factors that led the company to devise the ‘One Ford' strategy
» appreciate the efforts made by the company to realign its organizational structure so as to match market reality and changing customer preferences
» critically analyze the implementation of the ‘One Ford' strategy
» assess the future prospects of the company in light of the restructuring effort
» appreciate the efforts made by the company to realign its organizational structure so as to match market reality and changing customer preferences
» critically analyze the implementation of the ‘One Ford' strategy
» assess the future prospects of the company in light of the restructuring effort
Foundation
Henry Ford built his first automobile car, which he called a quadricycle, at his home in Detroit in 1896. The location has been redeveloped, where the Michigan Building now stands, and the tracks for the Detroit People Mover and the Times Square People Mover station are nearby. At the entrance to the Michigan Building, there is a commemorative plaque identifying the original location of the Ford home. The coal shed has been recreated using the original bricks at Greenfield Village in nearby Dearborn.[ His initial foray into automobile manufacturing was the Detroit Automobile Company, founded in 1899. The company foundered, and in 1901 was reorganized as the Henry Ford Company. In March 1902, after falling out with his financial backers, Ford left the company with the rights to his name and 900 dollars.
Henry Ford turned to an acquaintance, coal dealer Alexander Y. Malcomson, to help finance another automobile company. Malcomson put up the money to start the partnership "Ford and Malcomson" and the pair designed a car and began ordering parts. However, by February 1903, Ford and Malcomson had gone through more money than expected, and the manufacturing firm of John and Horace Dodge, who had made parts for Ford and Malcomson, was demanding payment. Malcomson, constrained by his coal business demands, turned to his uncle John S. Gray, the president of the German-American Savings Bank and a good friend. Malcomson proposed incorporating Ford and Malcomson to bring in new investors and wanted Gray to join the company, thinking that Gray's name would attract other investors.
Excerpts
The 1990s
The early 1990s was a tough period for Ford, as it was for the rest of the auto industry. In 1991, Ford's worldwide automotive operations incurred a loss of $3.2 billion. The company's automotive losses in the US alone amounted to $2.3 billion. This was a significant blow to the company and quite unexpected too as it was only in 1989 that it had earned $3.3 billion in net income. However, the silver lining for Ford was that it had accumulated around $115 billion in banking-related assets. The financial figures for 1991 would have looked a lot worse if the company had not diversified into the financial services sector. For the year, Ford's financial services group recorded $927 million in earnings...
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The Early 2000s
In the early part of the 21st century, Ford took several steps with the aim of strengthening its competitiveness. It spun off its Visteon unit, acquired BMW's Land Rover SUV business, and upped its stake in Hertz . However, one unexpected event was to adversely impact its financial health - the recall of over 6.5 million Firestone brand tires. These tires were used as original equipment on the Ford Explorer, the Mercury Mountaineer, the Ranger, and some of its F-150 pickups. In what was then the largest recall in automotive history, Ford was compelled to call back over 300,000 vehicles and replace over 13 million Firestone tires at a cost of $3.5 billion . In 2001, the company incurred a loss of $5.45 billion. Nasser was asked to step down late that year, leaving William Clay Ford, Jr., in charge. Amid cut-throat competition, sluggish sales, low employee morale, and quality issues, Ford Jr. had his work cut out to revive the company...
The 'One Ford' Strategy
In September 2006, Alan Mulally was appointed CEO of Ford. Soon after, he unveiled the 'One Ford' strategy in an effort to stimulate growth.
ONE TEAM
The first component of the 'One Ford' strategy concerned people. It recognized the importance of a skilled and motivated workforce working together as a team. The company planned to develop a winning team by putting in place the principles and practices that would unlock the full potential of its employees. To start with, all employees who were connected to a project were to be included in the decision-making process. While work was to be assigned to teams, individuals were to be given authority and held accountable for delivering results....
ONE PLAN
The second component of the strategy was a single plan for the entire global enterprise, with unambiguous performance goals. Traditionally, Ford's regional operations operated as autonomous business units. While many of these units had been successful, it was felt that this mode of operation was too inefficient and would not be sustainable in the long run. The 'One Plan' involved replacing disparate units with a single, unified entity...
ONE TEAM
The first component of the 'One Ford' strategy concerned people. It recognized the importance of a skilled and motivated workforce working together as a team. The company planned to develop a winning team by putting in place the principles and practices that would unlock the full potential of its employees. To start with, all employees who were connected to a project were to be included in the decision-making process. While work was to be assigned to teams, individuals were to be given authority and held accountable for delivering results....
ONE PLAN
The second component of the strategy was a single plan for the entire global enterprise, with unambiguous performance goals. Traditionally, Ford's regional operations operated as autonomous business units. While many of these units had been successful, it was felt that this mode of operation was too inefficient and would not be sustainable in the long run. The 'One Plan' involved replacing disparate units with a single, unified entity...
Implementing the Strategy
Ford set out to implement the 'One Ford' strategy. Its initial focus was on securing financing as this was vital for the restructuring efforts.
SECURING THE FINANCING
In December 2006, Ford secured $23.5 billion of new liquidity. In addition, the company obtained a convertible debt of $4.95 billion, a secured term loan of $7 billion, and a secured revolving credit facility of $11.5 billion. This amounted to total automotive liquidity of about $46 billion at year-end 2006. The company intended to utilize this liquidity to fund the restructuring and product development initiatives. It was also to act as a cushion for unforeseen events in the near term...
RESTRUCTURING THE COMPANY
As part of the 'One Ford' strategy, the company initiated a restructuring exercise of its automotive business with the objective of dealing with the realities of lower demand, higher fuel prices, and changing consumer tastes. On September 15, 2006, the company announced that it would accelerate the 'Way Forward' plan that the company had announced at the beginning of the year. This was expected to further bring down annual operating costs by approximately $5 billion by 2008 (compared to 2005) and quicken the flow of new products...
SECURING THE FINANCING
In December 2006, Ford secured $23.5 billion of new liquidity. In addition, the company obtained a convertible debt of $4.95 billion, a secured term loan of $7 billion, and a secured revolving credit facility of $11.5 billion. This amounted to total automotive liquidity of about $46 billion at year-end 2006. The company intended to utilize this liquidity to fund the restructuring and product development initiatives. It was also to act as a cushion for unforeseen events in the near term...
RESTRUCTURING THE COMPANY
As part of the 'One Ford' strategy, the company initiated a restructuring exercise of its automotive business with the objective of dealing with the realities of lower demand, higher fuel prices, and changing consumer tastes. On September 15, 2006, the company announced that it would accelerate the 'Way Forward' plan that the company had announced at the beginning of the year. This was expected to further bring down annual operating costs by approximately $5 billion by 2008 (compared to 2005) and quicken the flow of new products...
Investment
In 2000, Magnum Sports and Entertainment bought 80% of the agency. In 2007, Stone Tower Equity Partners made an investment in the company. Stone Tower was later renamed Altpoint Capital Partners.
Ford Artists and Ford Models
In recent years the company has diversified into other professions related to the fashion industry through Ford Artists. They represent hair stylists, makeup artists, manicurists, stylists, set designers, prop stylists, art directors, and photographers. Ford Artists locations include Chicago and Miami.
Ford models
Let have to look given various models of FORD
- Maud Adams
- Kim Alexis
- Carol Alt
- Joanna Bacalso
- Caitriona Balfe
- Kim Basinger
- Gelila Bekele
- Byrdie Bell
- Candice Bergen
- Caron Bernstein
- Justine Bitcoin
- Billie Blair
- Sara Blackamore
- Christie Brinkley
- Bebe Buell
- Amanda Bynes
- Brooke Burke
- Suzy Chaffee
- Gina Choe
- Hailey Clauson
- Daiane Conterato
- Anderson Cooper
- Wilhelmina Cooper
- Kate Cordsen
- Courteney Cox
- Yaya DaCosta
- Charlene Dash
- Charlotte Dawson
- Kristine Debell
- Lana Del Rey
- Carmen Dell'Orefice
- Janice Dickinson
- Elsa Dogabani
- Katarzyna Dolinska
- Dovima
- Karen Elson
- Dani Evans
- Nargis Fakhri
- Patricia Faure
- Matthew Felker
- Stacy-Ann Fequiere
- Liliane Ferrarezi
- Shandi Finnessey
- Agneta Frieberg
- Nataliya Gotsiy
- Ashley Graham
- Karen Graham
- Kyla Grandy
- Bridget Hall
- Jerry Hall
- Sunny Harnett
- Lydia Hearst-Shaw
- Tippi Hedren
- Paris Hilton
- Kristy Hinze
- Brent Huff
- Chanel Iman
- Elaine Irwin
- Beverly Johnson
- Christine Johnston
- Steph Jones
- Allison Kuehn
- Francisco Lachowski
- Ricki Noel Lander
- India Gants
- Ali Larter
- Natalie Laughlin
- Dorian Leigh
- Amy Lemons
- Noemie Lenoir
- Damaris Lewis
- Nicole Linkletter
- Peggy Lipton
- Ryan Lochte
- Kimberley Locke
- Ali Lohan
- Lindsay Lohan
- Pixie Lott
- Erika Lucas
- Kellan Lutz
- Ali MacGraw
- Gavin MacIntosh
- Elle Macpherson
- Eva Marcille
- Melanie Marquez
- Chloe Marshall
- Kim Matulova
- Karen McDougal
- Kristen McMenamy
- Xuxa Meneghel
- Jennifer Messelier
- Ana Claudia Michels
- Naima Mora
- Bridget Moynahan
- Carolyn Murphy
- Ajuma Nasenyana
- Kevin Navayne
- Flavia de Oliveira
- Natalie Pack
- Suzy Parker
- Jean Patchett
- Tera Patrick
- Brita Petersons
- Tori Praver
- Emily Ratajkowski
- Raven-Symoné
- Bar Refaeli
- Crystal Renn
- Charo Ronquillo
- Amber Rose
- Jennifer Rubin
- Jennie Runk
- Rene Russo
- Mary Jane Russell
- Jessica Santiago
- Ines Sastre
- Mikaela Schipani
- Monika Schnarre
- Ingrid Schram
- Bre Scullark
- Stephanie Seymour
- Brooke Shields
- Jean Shrimpton
- Maiysha Simpson
- Tatiana Sorokko
- Martha Stewart
- Heather Stohler
- Kim Stolz
- Sharon Stone
- Barbara Summers
- Spencer Sutherland
- Rosie Tapner
- Fabienne Terwinghe
- Cheryl Tiegs
- Analeigh Tipton
- Ashley Tisdale
- Penelope Tree
- Christy Turlington
- Twiggy
- Frederique van der Wal
- Vendela
- Claudia Wagner
- Veronica Webb
- Maisa Favero
- Alek Wek
- Antonia Iacobescu
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