Effective Busines Strategies

Effective Strategies

Ian Mullins

MGT/312

March 23, 2015

Matthew Palmer

Effective Strategies

During the financial meltdown and subsequent recession that hit the United States economy in 2005, many individuals and businesses felt the impact of the collapse. The economic collapse spared no single industry or entity from financial hardship. One of the industries affected the most by the economic destabilization was the American auto industry, and one of the companies was that nearly folded while this time was Ford Motors. Ford Motors a staple of the American business and automotive culture, almost became a casualty of the financial meltdown in 2005. Ford Motors was nearly lost as a company, due to its antiquated business practices and inability to adapt to the shift in car making. However, in 2006 a man by the name of Alan Mulally stepped in to rescue Ford from its self-induced demise. Through robust, calculated, and non-traditional business decisions, Alan Mulally set in motion a plan to save the American icon.

Effective Strategies

In 2005, the American economy truly began to feel the effects of the financial meltdown. The collapse was all-encompassing, and no one was immune, Ford Motors learned this harsh fact directly. During 2005 and 2006, Ford suffered massive financial losses with 2006 being the worse fiscal year of the company's storied history. Ford Motors was hemorrhaging revenue at an alarming rate 2005 saw a loss of 74 million dollars in the fourth quarter, then in 2006; the reported loss was 5.8 billion dollars; Ford was in jeopardy. Ford was experiencing trouble from multiple fronts; some of the company's 2006 losses are a direct relation to the company tightening up its outdated operational procedures. However, there were others areas within the infrastructure of the corporation that were causing major issues, that problem being Ford Motors in the US. The American based branch of the company's poor performance was bringing...