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What does this case story tell you about how a company's vision and plans affect its

structure?

What the companies vision for the future, and their plan on how the will attempt to achieve that
vision, dictates what type of structure the company should use.

Certain structures would be a detriment to companies with specific goals.

A company has to decide what structure best works for them and then implement it in conjunction
with their plan so as to reach their end goal.

Ford had to change their structure in order to accommodate their new visions and plans for the future
to be reachable. Ford was facing serious challengers. Fierce competition in global car industry. Realities
of its manufacturing and product development deficiencies. Ford needed a successor for CEO, so Bill
Ford picked Alan Mulally. Recently turned the Boeing Company around. Ford thought Mulally had the
knowledge and experience to turn the company around and inspire the employees enough to build their
name back up There was hope for Ford What would be your teams choice of management? The
ultimate aid to Fords new Ideal is to remain uniform to a point, but on certain objectives remain
flexible. Example: McDonald's end goals are the same, but they offer different products Ford thought
Mulally had the knowledge and experience to turn the company around and inspire the employees
enough to build their name back up Bring North American operations back to profitability by 2008 The
North American operations incurred a loss of $2.5 billion on total sales in 2005 Market share in US
decreased from 25% in the late 1990s to 17.4% in 2005 The lowest since the 1920s Aimed at reducing
costs by $6 billion by 2012 Would entail cutting 25% of its work force (about 30,000 employees) Closing
down 14 factories and assembly centers in North America. Plan also focused on strengthening its
product line. To be more efficient, they were planning to use similar architecture that its manufactures
in Europe and other countries used to build vehicles 2010: unveiled Ford Focus as Fords first truly global
car. Engineered for customers in every region of the name and its sold everywhere under the same
name

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