Ford Motor Company Consultant Report

Running Head: FORD MOTOR COMPANY CONSULTANT REPORT

Sr. Seminar in Business Administration-BUS499

May 15, 2010

FORD MOTOR COMPANY CONSULTANT REPORT

Abstract

Mr. Alan Mulally has contracted Gibson consulting firms to assist his management team in restoring Ford Motor Company’s reputation and viability. This report will discuss those areas that affect Ford’s brand image and ways to return the company to profitability and evaluate Ford’s present situation. Lastly, this report will explain what role strategic leadership will play in helping Mulally and the organization meets its strategic objectives.

FORD MOTOR COMPANY CONSULTANT REPORT

Define and discuss Ford’s business-level strategy. A business level strategy can be defined as the strategy that is chosen by a company to hold a competitive advantage within the market that it is involved with. At the business level, Ford’s strategy formulation phase should deal with positioning the company against rivals, anticipating changes in demand and technologies and then adjusting the strategy to accommodate them, and influencing the nature of competition by strategic actions such as vertical integration and through political actions such as lobbying. Ford developed strategies for cost leadership, differentiation, and focus to create a competitive advantage. Ford recommitted itself to sustainable and profitable growth, to a renewed focus on customers, and to boundless innovation in everything they do; from design, to safety, to fuel-efficiency, to efficiency on the factory floors. They are using their size to accelerate change, and build a culture that encourages fresh new thinking and breakthrough ideas. Ford need to concentrate on improving their core automotive business and divested several non-core companies, lowered costs, refocused financial operations on supporting the automotive business and launched the biggest wave of new products in history. To strengthen the balance sheet and cut costs, Ford has sold the Hertz Corporation and restructed its agreement with Visteon, their parts supplier spin-off. Ford reached and agreement with the UAW that reduced health care costs in a reasonable way. They also began a major rationalization of their supply base, identifying key suppliers to form partnerships that will provide for more stable relationships (Kiley, 2000).

As a result, they have been profitable every year since 2003, including a net income of $2 billion in 2005. Today Ford’s automotive operation in Europe, Asia and South America