Ford Motor Company Turnaround Case Study

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4.2. Ford 's type of turnaround After a long time Ford recognized first in the year 2000 a decline of sales figures and increasing costs. At this time Ford focused more on the production and selling of Pickups and SUV´s. Because of the rising fuel prices the customer demand declined. Customers are now interested in low fuel consumption cars of the small and middle class. Unfortunately, Ford overlooked the new customer needs. Furthermore the health care costs for employees, especially in the United States, increased, too (Haas-Kotzegger, 2013, p. 14). In 2006 the company went through one of the worst years in history and recorded losses in the amount of US$12.7 billion. At this point Ford was already in a success crisis and ran out of time for a reaction. Therefore, only an operative turnaround remained (Haas-Kotzegger, 2013, p. 14). 5. Corporate Turnaround This part consists of the…show more content…
Selection and implementation of corporate turnaround strategy In 2007 Mulally implemented a new company vision called "One Ford" (Ford Motor Company, 2014a). The new strategy consists of the following three main components: "One Team, One Plan and One Goal" (Ford Motor Company, 2014b). For each of these components several goals were defined by Ford to create a global and corporate busi-ness plan (Ford Motor Company, 2014a). All employees are working together as one team to become a leader in the automotive industry (Ford Motor Company, 2010). The One Ford strategy is integrated into the everyday processes of employees to ensure a further development (Ford Motor Company, 2014b). In the course of this, Ford wants to measure the success on the basis of the satisfaction of all stakeholders (Ford Motor Company, 2010). Furthermore Ford developed a plan consisting of the following four points (Ford Motor Company, 2014a): • Complete turnaround and restructuring • Inventing and implementing new products on a global level • Fund the new business plan and improve the financial

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