Ford Motor Company, a global company based in Dearborn, Michigan, employs approximately 203,000 people worldwide. Its 2017 revenue topped $145.7 billion. Ford is well into its second century...over 115 years! Not surprisingly, there have been significant changes during that time span, both internally and externally. After some tumultuous years following the most recent global recession, the company’s board of directors felt it was time for new strategic leadership. The new CEO, Jim Hackett, was tapped to replace Mark Fields, who was fired for his inability to create a clear vision for the company. Stepping into this position, Hackett said a CEO’s job is to give company employees a “point of view” so there is no confusion and no lack of direction. And that’s what he set out to do. As the former CEO of Steelcase, the office furniture manufacturer, Hackett had endured environmental transitions and organizational culture changes in an industry facing many of the same issues as those in automobile manufacturing. Now, he was stepping into the challenge of leading Ford into a future that was almost as uncertain as the one that company founder Henry Ford faced. No longer would a car company be simply just a car company, but more of a mobility solutions provider. After all, we don’t purchase a car just to purchase a car, we purchase a way to solve our mobility problem...what’s going to get me from one place to another? Looking at it this way means Ford is not only vulnerable to other car manufacturers, but to ride-sharing services like Uber and Lyft, which have exploited technology solutions to the mobility problem. Hackett’s first actions? He spent his first 100 days on the job gathering information on Ford’s global business operations, brainstorming with his executive team on new business concepts, and paying a visit to a Silicon Valley EV (electric vehicle) manufacturer. His intense analysis led him to a point of view that would guide all future company goals, strategies, and plans. What was it? “Smart Vehicles in a Smart World.” What now? Hackett has to focus not only on the future of mobility solutions, but on operational excellence. Ford will be streamlining its core business...becoming more “fit”—a term the CEO uses to describe efficiency. Hackett is preparing to shake up the company’s thinking on everything from its culture to its brands. Some of the specific strategies it’s pursuing include:
Chariot, a ride-sharing brand Ford started in northern California. It’s a transport system with 6 to 10 riders who summon it by phone. Chariot’s “path” is plotted by where the crowd wants/needs to go.
Looking at other forms of propulsion beyond gas, with zero emissions, and that are kind to the planet.
Committed $7 billion toward development of more trucks and SUVs. Committed some $5 billion toward cars that run on battery power. Investing $1 billion in startup Argo AI to develop autonomous driving technology.
Looking to slash costs by modernizing and simplifying Ford’s vehicle lineup, factories, and product-development process.
Hired design firm IDEO to show Ford how to incorporate more “design thinking” into corporate decisions and actions.
Entered a strategic alliance with Indian automaker Mahindra & Mahindra to explore possible areas of collaboration.
Looking closely at global markets to decide actions to take in the South American and European markets.
As Ford executives and employees move forward in the new direction, CEO Hackett intends to be right there out front shaking things up and offering encouragement. As the Ford’s family spokesperson and executive chairman Bill Ford said, Hackett is somebody who can “blend big strategic thinking and operational excellence.”
Question#1
How is planning illustrated in this case story? How is strategic management illustrated in this case story?
Question#2
The new CEO stated that the CEO’s job is to give employees apoint of view. Explain what you think he meant by this. Why is a “point of view” so important?
Question#3
As the new CEO, why would you want to spend time—valuable time—gathering information? Is this similar to SWOT analysis? Discuss.
Question#4
Communicating these new goals, strategies, and plans to employees is obviously important for guiding employee behaviors and actions. Whose responsibility is it to communicate these things? What do you think would be the best way to do this? (Hint: It could be more than one person’s responsibility!) Be prepared to discuss your ideas in your “assigned” group.
> Discuss contemporary issues in planning.
> Define Queuing Theory
> Compare and contrast approaches to goal setting and planning.
> Explain what managers do in the strategic management process.
> Discuss the nature and purposes of planning.
> Discuss contemporary issues in managerial decision making.
> Discuss group decision making.
> Describe the types of decisions and decision-making conditions managers face.
> Explain the three approaches managers can use to make decisions.
> Describe the decision-making process.
> Discuss the factors that lead to ethical and unethical behavior in organizations.
> Discuss how society’s expectations are influencing managers and organizations.
> What is Linear Programming?
> Describe what managers need to know about managing in a global organization.
> Explain globalization and its impact on organizations.
> Describe current issues in organizational culture.
> Describe how organizational culture affects managers.
> Define organizational culture and explain why it’s important.
> Discuss how the external environment affects managers.
> Explain what the external environment is and why it’s important.
> Describe the key employability skills gained from studying management that are applicable to your future career, regardless of your major.
> Describe the factors that are reshaping and redefining management.
> Discuss contemporary issues in control.
> Briefly define Break-Even Analysis
> Discuss the types of controls organizations and managers use.
> Describe the three steps in the control process.
> Explain the nature and importance of control.
> Discuss contemporary issues in communication.
> Explain how technology affects managerial communication.
> Describe what managers need to know about communicating effectively.
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> What are Contemporary Approaches?
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> Baseball has long been called “America’s national pastime” (although according to a Harris Interactive survey, the NFL has been, hands down, the favorite sport of Americans). Now, the game of baseball can probably be better described as America’s number
> It’s got to be one of the most convenient products ever—especially for consumers who want their coffee (or tea or other hot beverage) efficiently delivered without much hassle. The Keurig K Cups were invented in 992 by John Sylvan. Like any innovator, Sy
> You’re starting to see them everywhere... charging stations for electric vehicles (EVs). That’s a sure sign that the global auto industry is going through a massive change. You shouldn’t be surprised, therefore, that experts are predicting that electric
> You could say the beginning of the end for Uber founder and CEO Travis Kalanick was the February 2017 blog post by former Uber engineer Susan Fowler that outlined a toxic work culture hostile to women and filled with managers (from top down) willing to t
> Walmart, the world’s largest retailer, is a mega-business with more than 11,700 retail units in 28 countries and approximately 2.3 million associates around the world. That’s a lot of employees to manage! Its most recent annual revenues were more than $4
> The health-care industry is the fastest growing sector of the U.S. economy, with annual revenues projected at over $1.6 trillion (that’s 12 zeroes!). And health care has surpassed manufacturing and retail as the largest source of jobs in the United State
> What is Quantitative Approach
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> 2017 was a public relations nightmare for United Airlines. Several incidents involving United Air employees enforcing a variety of rules, regulations, and protocols in interactions with customers caused international outcry. First, in March, two teenager
> When you walk into Edwins, you assume it is just an upscale dining location serving classic and contemporary French cuisine. But the restaurant also serves as a nonprofit rehabilitation center for those who have been incarcerated. Referred to as a “secon
> In one of the worst business ethics scandals in history, the world learned in 2015 that Volkswagen (VW) intentionally circumvented government exhaust emission tests for years by installing so-called defeat devices on its clean diesel vehicles. This revel
> When Amancio Ortega, a former Spanish bathrobe maker, opened his first Zara clothing store, his business model was simple: sell high-fashion look-alikes to price-conscious Europeans. After succeeding in this, he decided to tackle the outdated clothing in
> It’s the world’s largest package delivery company with the instantly recognizable trucks. Every day, United Parcel Service (UPS) transports more than 20 million packages and documents throughout the United States and to more than 220 countries and territ
> At its headquarters in Ventura, California, Patagonia’s office space feels more like a national park lodge than the main office of a $600 million retailer. It has a Douglas fir staircase and a portrait of Yosemite’s El Capitan. The company’s café serves
> Adobe Systems is one of the largest and most diversified software companies in the world. It is headquartered in San Jose, California, in the heart of Silicon Valley. Its 18,000 plus employees are a core asset and the key to the company’s success. And th
> Which do you think would be a manager’s best choice for shaping long-term ethical behavior: a written code of ethics combined with ethics training OR strong ethical leadership? Support your position.
> Is globalization good for business? For consumers? Discuss.
> Tesla. Elon Musk. You’ve probably heard of both. Tesla was founded in 2003 by a group of engineers who wanted to prove that buyers didn’t need to compromise looks and performance to drive electric—that electric cars could be “better, quicker, and more fu
> Explain how an organization’s culture can help it be successful AND how it can keep it from being successful.
> How can managers best deal with environmental uncertainty?
> Explain how the 4 functions approach is better than the roles approach and the skills and competencies approach for describing what managers do.
> Do all organizations need managers? Explain.
> Discuss the various types of tools used to monitor and measure organizational performance.
> Why is it important for managers to understand the control process?
> Describe three barriers to communication and how managers can overcome those barriers.
> What purposes does communication serve?
> Why is trust the essence of leadership?
> What is the difference between trait theories and behavioral theories of leadership?
> Founded by Jeff Bezos in 1994, Amazon is the world’s largest retailer based on market value. Many credit the organization’s work environment and culture for motivating employees to create innovations such as the Kindle and drone delivery. Like others in
> What is a Behavioral Approach?
> What are the three variables in expectancy theory and how do they explain motivation?
> What economic and cross-cultural challenges face managers when motivating employees?
> Describe the key elements of attribution theory. Discuss how the fundamental attribution error and self-serving bias play a role.
> Why is it important for managers to have an understanding of organizational behavior?
> What characteristics do effective teams need?
> Why is it important for managers to know about the stages of group development?
> How does HRM help achieve the goal of having the “the right numbers of the right people in the right place at the right time”?
> How is technology changing how HRM is done?
> If organizing is about getting work done efficiently and effectively, what organizing challenges might lower-level managers have to address? (Hint: Think in terms of the six key elements of organization design.)
> It’s stated in the chapter that contemporary organization design should be lean, flexible, and innovative. What are the implications of those requirements?
> Jean Paul Agon, the president and CEO of L’Oreal, joined the company right after his university graduation in 1978 and has continued to grow as a leader over his more than 40 years with the company. Headquartered in France with more than 80,000 employees
> Would a good manager be a good entrepreneur? Discuss.
> Is it necessary for an entrepreneur to do a feasibility study? Explain.
> Describe the structural, cultural, and human resources variables that are necessary for innovation.
> Planned change is often thought to be the best approach to take in organizations. Can unplanned change ever be effective? Explain.
> How could the Internet be helpful to managers as they follow the steps in the strategic management process?
> Will planning become more or less important to managers in the future? Why?
> Discuss the pros and cons of managers using technology to help make decisions.
> Today’s world is chaotic and fast-paced. How does time pressure affect managerial decision making? What can managers do to still be good decision makers under such conditions?
> Is your course instructor a manager? Discuss in terms of planning, organizing, leading, and controlling. Also discuss using Mintzberg’s managerial roles approach.
> Using any of the popular business periodicals (such as Bloomberg Businessweek, Fortune, Wall Street Journal, Fast Company), find examples of managers doing each of the four management functions. Write up a description and explain how these are examples o