1. What are the key structural issues that Alan Mulally encountered as the incoming President and CEO of Ford Motor Company?
2. How has Alan Mulally addressed the structural issues identified in the previous question?
3. Explain the context that Ford's strategic goals provide for the design of its organization structure.
4. Explain the context that Ford's external environment provides for both its strategic goals and the design of its organization structure.
5. Would a network (or lattice) organization be a viable structural alternative for Ford Motor Company? Explain your answer.
Key Structural Issues
This report provides key study on the ford case how Mulally encountered all of its problems. It is observed that company has felt several ups and down throughout the time during the different life cycle of this product.
The Alan Mulally appointed as president and CEO of the Ford motor company and after getting appointed in company he planned restructuring of its value chain activities. he planned to change the business functioning of management department of Ford Motor company has eliminate all the non productive expenses in determined approach. It is further observed that he also changed the institutional work of company that took year to develop. The main focus of Alan Mulally was to reduce the cost of productions expenses with a view to increase the efficiency of its business (Bayou, & De Korvin, 2008).
Alan Mulally used restructuring process system in which he will retrench some of its employees and hire efficient and talented employees in particular value system of organizations. It is also noticed that he strengthened the business functioning by changing existing organizational culture. All the employees who do not perform well are warned to perform well otherwise it may result to losing of their jobs after certain period of time. These adopted plans will not only increase the overall productivity of company but also make changes in the working structure of employees in determined approach (Hashmi, and Biesebroeck, 2016).
Alan Mulally suggests a strategic plan to its employees which they could use to achieve certain goals and objective in effective manner. If the entire employees work as team then they could achieve synergy in their existing working structure. It will enhance the relation between employees, customers, vendors and investors in determined approach. If all the team members become more collaborative to each other in value chain activities of Form motor car then it will surely increase the productivity and quality of its offered products in market (Bayou, & De Korvin, 2008).
It is evaluated that company has been performing under the set target due to its non effective structural problems with the production of cars around the globe. After evaluating all the internal and external factors, it is evaluated that company has faced several problems such as economic, social, environment and political. In addition to this, employees working in organizations are also not performing up to the set marks. The non effective strategic alliance of company with other partners also results to various losses to organization (Bayou, & De Korvin, 2008).
The lattice structure of the organization is based on how top management and Alan Mulally would make strategic alliance with other partners either on domestic and international level. it is further observed that if proper level of strategic alliance is set by company with other organization then it will surely increase the productivity of organization but also increase the efficiency of business. This network structure would also help company to establish effective level of communication channel between all of its employees and vendors in determined approach (Wee, & Wu, 2009).
This report reveals various solutions to the several problems in systematic manner and how Mulally eliminated the business problems of Ford in determined approach. However, the main problems which should be eliminated by Mulally is related to the company structured working system and employees productivity.
Wee, H. M., & Wu, S. (2009). Lean supply chain and its effect on product cost and quality: a case study on Ford Motor Company. Supply Chain Management: An International Journal, 14(5), 335-341.
Bayou, M. E., & De Korvin, A. (2008). Measuring the leanness of manufacturing systems—a case study of Ford Motor Company and General Motors. Journal of Engineering and Technology Management, 25(4), 287-304.
Hashmi, A.R. & Biesebroeck, J.V., (2016). The relationship between market structure and innovation in industry equilibrium: a case study of the global automobile industry. Review of Economics and Statistics, 98(1), pp.192-208.
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