Trang Dai Carnes

Introduction to International Business-03F-Fall 2017

Instructor: Francisco Paredes

Making Ford Globally Competitive

1. How would you characterize the strategy for competing internationally that Ford was pursuing
prior to the arrival of Alan Mulally? What strategy was Mulally trying to get Ford to pursue?
What are the benefits of this strategy? Can you see any drawbacks?
Prior to 2006, Ford Motor focused primarily on American and European markets, but
Ford’s global strategy is long-standing strategies of regional models base one customer taste and
preferences. Because of that, the design of Ford Focus between Europe and America market
were different in parts and platform, and it increase the operating cost because each line of
product specified for only that region or group. Since Mulally participated in Ford Motor in
2006, he proposed a new strategy to get its cost under control and would satisfied customers all
over the world. Under this strategy, Mulally tried to target to share a common design, are built in
the same platform, identical factories around the world. As a result, Mulally strategy would bring
down cost and maximize the profit base on the advantage of the economy of scale. But there are
still some drawbacks such as culture different from different regions, and it would increase the
cost of inventory of the identical parts since they’re reduce the number of factories around the
world.
2. What would you recommend that CEO Mark Fields undertake in terms of continuing or
possibly changing the global strategy that Mulally put in place? Is Field’s long-term employment
with Ford a benefit or hindrance to making Ford globally competitive?
Mark Field became Ford CEO since July of 2014. Since Mulally put Ford on the right
track, Field should continue to expand Mulally strategy not only to make Ford stay in place the
way it does business globally but also could introduce his own ways of doing business. “Mark
was the one who quickly realized this was the way to run the business. The CEO is a head coach
and the important thing is how the team performs,” Cole says (Healy).
Field’s long-term employment with Ford would benefit the company because since Fields
in charged, he continues to make Ford become succeed globally. Field try to focus on team
works and cooperation. Field has work his way up with different positions within the company,
and he has gain his insight of how to make Ford become succeed across the nations.
 Work Cites

Healy, R. James. “Analysis: What fueled Marks Fields’ rise at Ford.” November 1st, 2012. USA
Today. https://www.usatoday.com/story/money/cars/2012/11/01/ford-ceo-mulally-succession-
fields/1673779/
Hill, Charles W.L. International Business: competing in the global marketplace. 11th ed., New
York, NY, McGraw-Hill, 2017.
Leminh, Co. “Opening Case: Ford Global Strategy.” September 16, 2016.
http://softwarelmc.blogspot.com/2016/09/opening-case-fords-global-strategy.html