Management Focus: Ford’s Global Strategy

International Business

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Chapter 12 – Management Focus: Ford’s Global Strategy

Summary

The Management Focus describes the changes in U.S. automaker Ford’s global strategy after former Boeing executive Alan Mulally was appointed CEO in 2006. At the time, Ford produced models targeted for specific regions of the world. Under Mulally’s leadership, Ford implemented its One Ford strategy that uses just a few car platforms to serve the entire world. Discussion of the closing can revolve around the following questions:

QUESTION 1: How would you characterize the strategy for competing internationally that Ford was pursuing prior to the arrival of Alan Mullaly in 2006? What were the benefits of this strategy? What were the costs? Why was Ford pursuing this strategy?

QUESTION 2: What strategy is Mullaly trying to get Ford to pursue with his One Ford initiative? What are the benefits of this strategy? Can you see any drawbacks?

QUESTION 3: Does the One Ford initiative imply that Ford will now ignore national and regional differences in demand?