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CASE 12.1 A Leadership Contrast at Ford Motors

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Submitted to

Date of Submission
10 December 2014

Case Analysis

1. Under what leadership model (transactional, transformational, charismatic or coach)

would you place Ford Jr? Jacques Nasser? Why?
Transactional Leadership also known as managerial leadership focuses on the role
of supervision, organization, and group performance; this type of leadership is
effective in crisis and emergency situations, as well as for projects that need to be
carried out in a specific way.
Transformational Leadership is a style of leadership where the leader is charged
with identifying the needed change, creating a vision to guide the change through
inspiration, and executing the change in tandem with committed members of the
group. It also serves to enhance the motivation, morale, and job performance of
followers through a variety of mechanisms;
Charismatic Leader gathers followers through dint of personality and charm, rather
than any form of external power or authority.
Coach Leadership connecting corporate goals whilst helping people find strengths
and weaknesses, linking these to career aspirations and actions.

o Bill Ford Jr. transformational leadership. He is a nice guy with a politician's keen
instinct. He is an unapologetic environmentalist. He is a family man who would rather
spend Saturday nights eating pizza with his four children than eating hors d'oeuvres
with movers and shakers. He is an iconoclast. He prefers ice hockey to golf--he does not
do business on the golf course--and he's working on his black belt in tae kwon do. He
says what he thinks and does what he thinks he should. He is that rare corporate
executive who says boldly that his company will do best for its shareholders if it take
care of its employees, its community, and the environment---he refer to his workers as
his extended family.

o Jacques Nasser transactional leadership. Nasser is known for his energy, his
brainstorming, and his speedy decisions (paperless decision). He is also known for
tough decisions. His move to kill the sentimental but unprofitable old Thunderbird,
along with lots of other cost-cutting, won him the nickname "Jac the Knife." Just as Ford
is passionate about the environment, Nasser is passionate about cars. He loves to visit
the design center, to touch the clay.

2. In the long run is it possible for two powerful leaders such as Ford and Nasser to work
effectively together? Why?
Yes, it is possible in a long run for two powerful leaders such as Ford and Nasser to work
effectively together as long as the leadership of the board is under the chairmanship,
and the leadership of the company is under the chief executive officer. In fact, the
succession of Ford Motor is due to their combine leadership.

3. Fords emphasis on environmental issues is still controversial in the company. How can
he convince other Ford executives that his views can be beneficial to the firm?
Bill Ford Jr. can convince other Ford executives that his views can be beneficial to the
firm for the following reason:

In 1979, Ford Motor, like Chrysler and GM, was struggling to deal with the high oil
prices; high gas prices created consumer demand for greener vehicles, and Ford Motor
Co. had a once-in-a-lifetime chance to reinvent itself.
The results are reaching the marketplace in the form of new cars and trucks with
smaller, more fuel-efficient engines, better gas mileage and lower emissions.