Company History

Ford Motor Company

Paradigm shift
5$ per day wage for employees
From 9 Hrs to 8 Hrs per day work
From 2 to 3 workshifts a day
Instituted hiring practices that
identified the best workers
Sharing Media
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Promotion
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Foundation Online Store Media Printing
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incorporated pretium. pretium.

Baseman 1
 Decline Model
Ford Motor Company

Blinded Faulty Dissolution

Decline Begins Action Rapid Demise
Faulty Decisons

1 2 3 4 5
Inaction Crisis
Decline becomes Faulty
noticeable environment and
operations. Slow
Erosion.

Baseman 2
 Blinded Stage
Ford Motor Company
Ford lost its
focus as an
automaker.
Scarcity of clear goals and
decision benchmarks. To
compete, the company
needed to collapse its far-
flung operations into a
single, global company.
Baseman
Breakdown in
Communication
Silo formation among
Internet bubble rose on the
different units led to
information asymmetry and
managers hiding actual
figures so as to derive a businesses trading at huge
competitive advantage
over different units in the
same company.
Searching for
new avenues
In the late 1990s, the
economic landscape,
enticing companies with
the lure of profits from e-
price-earnings multiples.
Nasser envisioned taking
public various units of a
newly created Ford e-
commerce group,
capitalizing on the
phenomenal market value
of Internet stocks and
vaulting Ford into the
Internet age.
3
 Inaction
Ford Motor Company
Nasser neglected William Clay

90%
Ford Jr. Nasser failed to develop a
sensible working relationship with Bill
Ford when the Ford scion became
nonexecutive chairman in January
1999. The company had an uneasy
balance of leadership. Nasser's hands-
on style failed to accommodate Bill
Neglecting profit making brands
Ford's growing influence.
Underestimating Bridgestone/Firestone Core brands such as Ford in North
America stood in line for management
Inc. CEO John Lampe.
time, talent and money. Nasser's
Nasser compounded the Firestone tire recall
strategy made Ford more vulnerable in
by underestimating Lampe, who refused to
North America, the company's chief
back down when Ford fingered 13 million
source of profits.
additional Firestone tires as potentially
Baseman faulty. 4
 Faulty Action
Ford Motor Company

Lack of
Unnecessa Concentratio Undermining
Sharing
ry n of Power public image
lead to
Expansion by the CEO
Ford, it had dozens bad Nasser and Lampe
As many as 16 decisions engaged in corporate
of automobile Culture where
executives reported mudslinging and
brands around the
directly to the Ford there was little finger-pointing before
world, and while
not all of them
CEO. Bent on single- sharing and the press, Congress
handedly wielding where people and the public.
were profitable,
power at the top, were afraid to Meanwhile, the
they all competed
Nasser failed to enormous amount of
for scarce share how
create a strong time that Nasser
resources and things really
operating executive spent on the crisis
management time were
to back up the CEO left other important
tasks undone.

Baseman 5
 Crisis!
Ford Motor Company

Divisiveness
Fords employees saw an

Losses increase in infighting and

Ford Loses 01 focusing on internal

Record $12.7 rivalries at the expense of
Billion in 06 02
NY Times taking responsibility and
Credit Rating Decline
tock Prices Plummeting working together
The companys and Stock Market Cra
03 Moody's Investors
debt was junk,
and its stock, Service lowered the
04
which had been as
ratings of Ford
high as $17.34 in
2004, had fallen to Motor Company to
$8.39 when
ba3 from ba1
Mulally
Baseman
joined,
6
before
 A strategy called The Way
Forward restructuring plan
with substantive change
Vision of One Ford, focus in Mazda so it could focus on
on the core brand and
aligned the organizations
activities around it
Enhance identification with
the core values of the
company to into a higher
Purpose
Visionary
leadership
Selling Ford's European
premium brands like Jaguar,
Land Rover etc. and its stake
Fords offerings
Suspension of dividends to
shareholders, closure of 17
plants and downsizing
54,500 jobs
Bold cutbacks
CEO moved his office from
top floor to the floor where
engineers were based for a
more hand-on approach
Protected product spending
for innovation and quality
improvement
Effective
implementation
Weekly meetings that were
mandatory for all senior
managers
Operations were reviewed
and issues are identified in
the meetings in an open
manner
Encouraging honest
communication upward and
across the organization in
the meetings
Creating
Introducedaa system that
culture
enhancedof peer
collaboration
accountability

Exemplary work ethic of the
leadership
Selling all company
corporate jets but one and
minimizing other perks for
top executives including
himself
The Measures
Treating dealers as full
partners
Taken
keeping Fords green
strategy on track with a
highly competitive line of
By The Managers
For
hybrid vehicles
Supporting governments
financial aid to the

The Turnaround
competitors for the good of
the industry
Signaling Improving
Refused government bailout
through but requestedwith
relationship a line of credit
of up to $9 billion in bridge
managerial external
financing
actions stakeholders
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