Ford Motor Company Case Analysis

In: Business and Management

Submitted By sstone21
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Ford Motor Company Case Study

Introduction and Background
The world-renowned automobile organization, Ford Motor Company, located in Dearborn, Michigan, has recently taken on a new CEO. This CEO has changed many things drastically in a short amount of time, including many positive things but also has implemented a few negative changes. Even with the drastic changes, the company still lost billions of dollars in the first three years under the new CEO’s reign, though the third year saw fewer losses than the second year. The CEO must deal with and must overcome many issues, internally as well as externally, to help the company get back on its feet and begin making profit again.
Facts
The new CEO has been employed at Ford for three years now, and is known for taking Boeing Airlines from suffering huge losses to making huge profits. Ford Motor Company took him on as a means to turn around losses and provide the company with new guidance. The company certainly took on a new direction, with one of the first acts being to bring back the Ford Taurus into the line and dropping truck and SUV production by forty percent. However not all changes were positive, as 46,000 jobs were cut. This decision was made to attempt to consolidate the company’s expenses as the company borrowed $23 billion but has already spent almost $15 billion of it, with no way of paying it back anytime soon.
Issues
The company is not only suffering considerable losses financially, but is dealing with several other key issues that, when corrected, should increase the profitability of the company. One of the biggest financial burdens currently placed on the company is that of vehicle customization. Ford must produce varyingly different models of cars for the vast array of world markets it caters to; this causes a huge financial strain and is taxing the company’s dwindling loan fund.…...

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