Ford is reorganizing its operations

Sample Solution

  1. Ford is reorganizing its operations to simplify its organizational structure, reduce bureaucracy, and increase innovation and collaboration across the company. To accomplish this, Ford has reduced its number of vehicle platforms from nine to five and consolidated departments while also creating new global product divisions centered around mobility services.

2. First, the chain of command: Previously, a single CEO oversaw all automotive operations for both North America and Europe in addition to Mobility Services. Now there are two CEOs: an Automotive Operations CEO covering North America and Europe; plus a CEO dedicated specifically to Mobility Services. Second, formalization: Ford's old organizational structure was highly hierarchical with clear boundaries between departments that made it difficult for employees to collaborate across divisions or with other stakeholders outside the organization. With the new structure, those walls have been broken down by consolidating departments into "business units," which allow for more cross-functional collaboration between teams throughout the company. Thirdly, centralization/decentralization: Under the old structure there were only three centers of decision making—Ford Credit Company Limited (FCCL), Chief Executive Office (CEO) and Corporate Social Responsibility (CSR). In contrast, under the new structure these have been consolidated into one center of decision making located at Ford headquarters in Dearborn Michigan USA run by Farley himself as well as regional centers around key product markets like EV’s such as Asia Pacific & China Region run by Charlie Zhuang who reports directly to Jim Farley CEO. Fourthly job design: As part of this restructuring effort some jobs have been eliminated while others have been created or redefined such as chief architect role focused on developing software architectures required for autonomous vehicles etc., Last but not least technology: While no specific change has been noted related to technology however we can infer that technology is playing a significant role in supporting this transformation process due to high degree complexity associated with re-organizing multiple subsidiaries globally in short period time hence driving need efficient ways managing data/communications across team members dispersed globally . 3. Jim Farley believed that reorganization was necessary because he wanted Ford Motor Company’s strategy shifted from simply building cars (Ford Model e) towards becoming a provider of integrated mobility solutions (Ford Blue). By streamlining their organization they could better focus on research & development when it comes ‘mobility services’ such providing autonomous ride sharing through self-driving cars helping guide customers through congested city traffic connect them various destinations within city limits based their preferences without relying any middleman service providers thus allowing company capture larger market share respective segment over long term while simultaneously generating higher returns shareholders investments reducing operational costs along way due simplified operating structures adopted during re-organizational process . 4. According to Jim Hackett - former CEO - spinning electric vehicle business would be counterproductive move since electric vehicles require significant investments upfront order make profitable long term instead management decided invest resources into existing core business areas where competencies already exist enabling reap maximum benefits results near future compared investing heavily unknown area field which could result potential losses greater risk levels . Furthermore accessing capital needed finance spinoff become even harder times pandemic recessionary pressures many investors less willing take risks especially when involves investing large sums money uncertain industry – unlike Tesla other dedicated EV startups who enjoy much higher stock valuations largely thanks brand recognition factor surrounding them meaning unlikely offer same returns equity investors available elsewhere market right now given current economic conditions thus plays main driver behind decision against spinning off EV division altogether