A watchful eye has been placed on sustainability and the “green” movement nowadays where leaders that are willing to pursue this issue pertaining to their organization can get an early lead for something that is coming in the blink of an eye. Earlier posts provided by our group have focused on sustainability and what this means for business and the organizational environment. The effects that can be realized for those organizations that take early initiative in terms of implementing sustainable processes and systems into their organization will have to pay a high price in the present, but these ambitious moves will pay for themselves over and over in the mid to long-term. One company that is already well on their way to sustainability, is Ford Motor Co. led by CEO Alan Mulally.
Ford Motor Co. has undergone significant changes recently having to do with restructuring their entire lineup of vehicles while still trying to lessen their environmental footprint left behind. To add to this pivotal restructuring, it must not be forgotten that this was the only U.S. auto manufacturer out of the “big 3” (General Motors Co., Chrysler Group LLC., & Ford Motor Co.) that did not get bailed out by the government during the recession. While not asking for help, the company was obligated to cut their workforce substantially, cut costs, and revolutionize their strategies. All of these efforts have been led by Mulally who has been making many bold decisions where risk-taking is part of everyday procedure.
The next big step that Mulally is making within the company is trying to strengthen their competitive edge on foreign manufacturers who have already surfaced to the top in their gas-saving lineup of vehicles; Toyota being the biggest competitor in this segment. At the Detroit Auto Show that took place in early 2011, Mulally spoke about their new strategy in saying that the company’s new small-vehicle offerings are made possible by a strategic decision taken as part of the company’s recent overhaul to build 10 different compact car and crossover models using the same basis chassis, or “platform.” The organization is delving into research and design in the fuel-efficient sector and ultimately hopes to achieve increased economies of scale in regards to their hybrid and electric models in the current and near-future.
Alan Mulally has certainly been on the right path in his substantial restructuring and overhauling for Ford. His leadership style is one that not only performs for the company, but exemplifies what U.S. auto manufacturers need to produce in order to stay on the same level as the global auto market. The reach for becoming a sustainable organization has made itself one step closer for Ford because of their recent struggle. Albeit, the company still has a long road ahead of them if they plan on competing with Toyota and Honda with their lineup of smaller vehicles. Alan Mulally’s momentum in the global recession has shown to be beneficial not only for Ford and its stakeholders, but the entire global market as well.
Written by: Michael Magaruh and the Big Bang Bloggers
Works Cited:
Wall Street Journal (2011), “Detroit’s Woes Make for Better, Smaller Cars,” (Accessed April 10th, 2011).
Available at: http://online.wsj.com/article/SB10001424052748703954004576090061509442764.html?KEYWORDS=ford+motor+company
I am very glad that Alan Mulally is a leader for green change. As the auto industry is behind the hybrid and electric automobile change. I fully support this change because gasoline is getting out of hand. We are currently paying 3.89 here in Bloomington-Normal area for a gallon of gas. There is no logical reason for the spike in gasoline. The only reason for the hike in gasoline is it is getting nice out now. I am behind the auto industries that are looking to help the community by offering motor vehicles that only rely on electrical power. This will require a higher amount of expense up front, but in the long run it will save you money. This may take a while for people to adapt to, but it will become the new and efficient vehicle for the world to buy to save their green and protect the environment from pollution.
ReplyDelete-Mitchell Terry-
I completely agree with you that Alan Mulally has been a critical reason for Ford’s turnaround in the United States and global market since the 2008 recession. It is unfortunate that it took a recession for automakers in the US to realize that the products in which they were offering were subpar in relation to the completion. I think that Ford and Mulally are the current leaders of the “Big 3” in the US as Chevrolet and Chrysler each continue to struggle developing a new line-up of vehicles. A true indicator of this success is Ford’s stock, as it has grown exponentially since the recession compared to its competition. This new line-up of vehicles is only going to strengthen Ford in the international market as these smaller, environmentally friendly, and more efficient vehicles will be better able to compete against Toyota and Honda. The recent tsunami has hurt each of these Japanese companies, although Toyota is facing a whole world of problems since the gas pedals sticking in their vehicles. The issues faced by all of Ford’s competition will only make the company stronger, and I believe that the leadership of Alan Mulally will overall bring Ford Motor Company to new heights of success.
ReplyDelete-Zach Seibel
When I think of automotive companies concentrating on sustainability and green efforts Ford typically does not come to mind. I think of companies like Honda or Toyota as leaders of the pack. However, it is good to hear that CEO Alan Mulally is committed to changing Fords focus on more of a environmental friendly line of cars. I personally feel that this market has tremendous potential for both growth and profits. As you pointed out in your blog post, the current short term cost of concentrating on these green efforts in the automotive industry is quite costly. However this short term cost will be more than payed for in the long run by the potential benefits the company can experience. I personally feel that the automotive industry more than any other industry around has the highest market potential for an environmentally friendly line of cars/products. It is good to see that Alan Mulally recognizes this great potential of market share for Ford and is truly trying to capitalize on it. Not only will Mulally help his company succeed in the long run, but also he is playing an important role in sustaining the environment by using CSR.
ReplyDeleteJason Dangles
For the longest time, the auto industry has been afraid to put out a car that achieves a high MPG number. If a car doesn’t require tremendous amounts of gasoline and has no manufacturing problems, consumers won’t need to buy a new car in the next five years. However, once the Prius came out and challenged this way of thinking, the market changed. The auto industry didn’t consider the fact that while people wouldn’t purchase a new car as often, more people would be buying these cars. If each of the players in the industry introduced these hybrid or fuel efficient vehicles, then everyone would benefit. I’m glad to see that Ford is making a step in the right direction.
ReplyDeleteRegards,
Jarek Palmer