Issues related to Ford
Organization-related issues. Ford's CEO and president, Alan Mulally, was recruited away from Boeing. To manage the company's restructuring is the primary reason he is employed. Mulally concentrated all of his efforts during his first several months at the company on learning about the issues that the company was facing. After conducting a thorough analysis of the business, money came to the conclusion that there were issues with the organizational structure, which included production of various car models and styles, the unreliable workforce, and the company's high level of competition as a result of a lack of innovation (Donlon 31).
Mulally examined all of the Ford offerings in order to remedy these issues. He realized that the company was using a lot of money due to semi-autonomous nature of the firm in subsidiaries overseas. For example, Ford of North America and Ford of Europe each developed a different version of Ford Focus compact and used distinct components despite being focused at the same market, and they went ahead to produce cars which were virtually identical. Mulally embarked on production consolidation which enabled the company to build economies of scale. Since 2007, Ford has managed to down whittle 27 various production platforms across the globe to nine thought the management under Mulally targeted eight (Donlon 31).
Mulally also made the conscious effort of accelerating production of vehicles that consumers valued and knew such as Taurus, Ford Focus, and Fiesta. The reduction of types of cars led to more efficient, learner and product line which allowed Mulally to focus on product development, manufacturing and excellence in customer service (Donlon 32). Also, the company was able to develop cars more quickly and shortened cycle similar to its Japanese competitors who were successful due to fall of Ford. Also, after sharing 80% of conventional components across the line of production, Ford could aim to return to profitability which allowed one vehicle to compete in the global market with the lower cost of production in different models (Bill1).
Another issue that Mulally addressed was uniting employees of Ford under a single global team to increase innovation. Previously, there had increased in-fighting within different departments of the organization as every overseas subsidiary had been treated as a semi-independent company which led to duplication of efforts. Mulally focused on eliminating the infighting by the creation of an active collaboration and accountability culture in all structures of leadership. This united the corporate culture of Ford opposed to its initial fragmented groups (Donlon 32). Unity allowed the company to be technologically driven due to the creation of safe space for individuals to submit their ideas without fear.
Mulally also focused on innovation to create trucks and cars with amenities and features that customers needed and were willing to pay for. By focusing on technology as a priority, the company was able to reclaim its position in the market (Donlon 33). Also, technology innovation attracted new customers to the brand.
Role of strategy and goals on organizational structure
The ford strategy and goals enacted by Mulally played a significant role in the restructuring of the organization. Due to this, the group was able to cut its cost of production. The strategy of uniting the employees reformed the structure which had been fragmented due to infighting within the company (Bill 1). The plans and goals enabled the company to get back on its track.
Role of business environment
Business environment plays a significant role in the structure of Ford. The dynamic environment of vehicle industry is marred by the change of consumers’ behavior and desires over time (Bill 1). Due to this, Ford was forced to meet the demands of the consumers. This enables the company management under Mulally to work in creating a more comprehensive and flexible organizational structure due to changes in the environment.
Work cited
Bill, Vlasic. "A Complete U-Turn". New York Times.2014. Retrieved 03,December, 2017.
Donlon, John. "The Road Ahead". Chief Executive. 2011; (253): 31–33.
Academic levels
Skills
Paper formats
Urgency types
Assignment types
Prices that are easy on your wallet
Our experts are ready to do an excellent job starting at $14.99 per page
We at GrabMyEssay.com
work according to the General Data Protection Regulation (GDPR), which means you have the control over your personal data. All payment transactions go through a secure online payment system, thus your Billing information is not stored, saved or available to the Company in any way. Additionally, we guarantee confidentiality and anonymity all throughout your cooperation with our Company.