Alan Mulally CEO Ford Motor Company Case Case Study

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Alan Mulally the CEO of Ford

Discuss the role of leadership and how it can impact organizational performance?

Prior to Mulally's arrival at Ford in 2006, he carefully studied the organization, he took detail notes on the company. Mulally knew every detail about the organization prior to his arrival at Ford. His background in engineering and leadership is a great asset to Ford. He was selected by the Ford family to become the next President and CEO because of his intellectual capabilities and his vision for the organization. Mulally's first decision at Ford was to create a strategic plan for success for the organization. He looked at the products, the sales charts and made decisions based on previous records and current trends. Mullaly first major decision at Ford was to bring the Taurus model back. This car was a best seller until the 1990's, so Mulally made some changes to the car and brought it back. He also made many cost cutting initiatives, forcing the company to show profitability. Mulally showed the organization "The Way Forward," which turned the company around moving from losses to profitability and increased market share. Mulally had the leadership skills to make changes in this company and put the company back on the map. Mulally was an effective leader, who affected change by making strategic development continuous, decision-focused and economically disciplined as possible. Mulally impacted Ford's organizational performance with his leadership skills and hard work.

His leadership skills were needed for the organization at the time. The company was taking loses, sales declining and they were losing their market share. There was a definite need for change in the organization. Mulally recognized that change was necessary at Ford, however prior to making any changes he carefully assessed the organization before making changes that would impact the company.

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As a leader he had a clear vision for the organization, and a successful background. A business cannot accomplish success without a clear vision and someone who is able to lead them to that vision. Mulally's back ground in engineering, working with Boeing through a leadership capacity has empowered him with the ability to lead Ford to successs.

2. Disucss Mulally's leadership style at Ford Motor Company and provide examples of how his actions fit this style?

Mulally is a transformational leader, he is capable of looking at the business from different angles, making decisions based on previous history, current market trends, customer demands and doing what is best for the business. Mulally took risks when necessary and challenged the organization to make changes. He has conviction and can generate critical mass, which are all important attributes of a great leader and a transformational leader (Taffinder, 2007). Mulally set ambitious and yet attainable goals for Ford, he challenged the organization to become more profitable.

3. Discuss how goal setting helped Ford improve its performance?

In 2008 the economy made a significant downturn, which impacted Ford negatively. Sales in automotive industry declined, therefore profitability turned into losses and the stock prices tumbled. Mulally was facing bankruptcy; however he managed to create a plan for the company by setting goals that the company has been able to achieve with his leadership and direction. The first thing Mr. Mulally did was to cut his salary to $1.00 per year during the period they held government loans. Mulally sold all but one of the company private jets to raise capital, he made many cost saving initiative at the company and made exceptional effort to keep his employees employed. His goals for the….....

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