The Ford Motor Company Analysis

1513 Words7 Pages
The Ford Motor Company board of had a meeting in September 2012 to discuss succession plans for current CEO Alan R. Mulally. The company has said that due to competitive reasons, they do not discuss succession planning externally, but that they do have a solid plan in place (nytimes.com). Mulally joined the company from Boeing in 2006, and has led a remarkable turnaround without taking money from the government unlike GM and Chrysler. Although he has said publicly that he does not know his retirement plans, it was announced recently that he will remain CEO at least through 2014. Chairman, William C. Ford Jr., has said Mulally can remain in the position as long as he wants. The most likely candidate to replace Mulally is Mark Fields, president of the company’s North and South American operations. Although the board has not made an official statement, executives privately have said Fields is the choice to eventually take over the post (nytimes.com). Mark Fields has worked for Ford for 23 years and has played an intricate role in reversing years of loses in the Americas division, and turning it into on the most profitable for the company. Fields was promoted to Chief Operating Officer in late 2012, a position that has gone vacant since 2006 when Jim Padilla retired (www.telegraph.co.uk). He created “One Ford” a plan that united business units and cut costs. Bill Ford has said he would like to see the next CEO come from within the ranks of the company. A company achieves sustainable competitive advantage when an attractive number of buyers prefers its products or services over the offerings of competitors and when the basis for this preference is durable (The Quest for Competitive Advantage). Ford launched a new strategy to increase market share revenue by producing “smart cars” with great fuel efficiently. The company has started a centralized decision making system, allowing the company to explore local and international market opportunities. Management has become much more involved in product development to satisfy customer expectations and communication has vastly improved (wpsenna.wordpress.com). This strategy has also cut a lot of excessive operations cost as well. Raw materials were greatly reduced and the online manufacturing process allows for one process of engineering and production rather than segmentation.

More about The Ford Motor Company Analysis

Open Document