Case_36_FordTN_rev - Teaching Note Case 36 One Ford The...

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Teaching Note: Case 36 – One Ford: The Shape of Ford Motor Company to Come? Case Objectives 1. To examine how external and internal forces affect competitive strategy. 2. To investigate the choices of business and corporate-level strategies in a highly turbulent industry. 3. To discuss how leadership can use strategic control and organizational design concepts to implement strategy. See the table below to determine where to use this case: Chapter Use Key Concepts Additional Reading and/or Exercises 1: Strategy Concept Strategic management; vision, mission, strategic objectives; stakeholder groups 2: External Environment Industry competition five forces; general environmental factors NOTE web links, stock price, embedded video 3: Internal Analysis Value-chain analysis; resource-based view of the firm; VRIN 4: Intellectual Assets Intellectual and human capital 5: Business Level Strategy Competitive strategy; generic strategies 6: Corporate-Level Strategy Corporate strategy; diversification; synergy; related and unrelated diversification NOTE additional reading, web links, embedded video 9: Strategic Control Strategic control; informational vs. behavioral control; culture, reward systems 10: Organizational Design Organizational structure 11: Strategic Leadership Leadership See Case DVD , NOTE web links, embedded video Case Synopsis Ford, which was one of the world’s most profitable companies till 1999, was struggling for survival in 2003 and faced its largest single-year loss in 2006 and then again in 2008. Although foreign automakers had been aggressively targeting the U.S. market during this time, some of the important reasons for Ford’s decline were internal: frequent leadership and organizational changes, poor leadership, loss of touch with customers, and a failed diversification plan.
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Not only were there problems inflicted by previous leadership, there were also certain systemic problems characteristic of large-scale organizations. Over the years, Ford’s product development and manufacturing systems – once its distinctive competencies – had gone awry. The highly bureaucratic organizational culture impaired communication and hampered the firm’s effectiveness. Competitors had proved better in creating customer value. Ford’s leadership needed to bring back the company’s purpose, focus on re-building distinctive competencies, and create a culture dedicated to excellence and ethical [cooperative] behavior. This culture was critically necessary for creating customer value and achieving corporate success. In an attempt to improve the financial condition of the struggling automaker, a new Chief Executive Officer, Alan Mulally, was elected in September 2006. Mullaly, a former executive vice-president of the Boeing Company, was supposed to use his expertise and leadership skills to regain customer satisfaction and rebuild a strong corporate culture. The new CEO introduced a “smaller-is-better” thinking based on a radical cutback plan.
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This note was uploaded on 10/11/2011 for the course BUSINESS A 474 taught by Professor Thompson during the Spring '11 term at Ill. Chicago.

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Case_36_FordTN_rev - Teaching Note Case 36 One Ford The...

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