Ford: An Auto Company in Transition

Author: Naga Damaraju, Ph.D.

Publication: Strategic Management: Text and Cases. (2021) Dess, G.G., McNamara, G., Eisner, A.B., and Lee, S.H. (10th edition), McGraw Hill.

Publication Date: January 2021

Abstract:
In 2019, Jim Hackett the latest CEO of Ford Motor Company, was facing an industry in disruption. Hackett, previously head of Ford Smart Mobility LLC (a subsidiary of Ford formed to accelerate the company’s plans to design, build, grow, and invest in emerging mobility services, such as autonomous vehicles) also believed in the need for transformation of the company. He planned to address the current product lineup, create an entire portfolio of electric vehicles, and develop a viable autonomous vehicle business that included “Mobility Experiences,” software and services that could address the problems of congested cities and roads. Although Ford would always sell cars and trucks, it was now betting that a seismic shift in personal transportation could translate to greatly increased profit margins. The global markets are hard to predict, and technology shifts and consumer preferences were changing the nature of the whole transportation experience. This would require significant innovation, and an adaptable, nimble organization that could deliver. Henry Ford had the initial vision of disruption in personal transportation. Would the 21st-century version of Ford Motor Company be as successful?