Ford Motor Leader General Motor Leader Commerce Essay

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Ford Motor is an American multinational company it was founded by Henry Ford on the year 1903. The company was located in Dearob Michigan. The main business of ford are automobiles and commercial vehicles. The ford introduced first the model T car with the removable cylinder engine in the year 1908 and in 1930 ford launched the Model -A it is the first car with safety glass in windshield. Then later in the year 1932 for introduced first low priced model v8 car. The ford is the second largest motor company in US , it is the 5th largest company in vehicle sales, and ranked as 5th largest company in Europe . About 213,000 people were employed in ford worldwide and the company has produced about 5.532 million automobiles.

General Motor

General Motors is an multinational American automotive company, it is located in Detroit, it was founded by William C. Durant in the year 1908. The general motors is the one of the very big automakers in America. About 202,000 people were employed in General Motors. The General Motors doing business in 157 countries world wide .At first in 1909 they sold 25,000 cars . The General Motors has four regional segments such as GM North America (GMNA) , GM Europe (GME), GM South America(GMSA), GM International operations (GMIO), it produces and sells the cars and truck through these four regional segments, it also provides service based on their regional segments. In 2009 it sold 6.5 million cars and trucks world wide and in 2010 it sold 8.4 million of trucks and cars.

Introduce the two leaders (background) (5%)

Ford Motor leader

Allan Mulally was born in August 4, 1945, at Oakland California; he was an American engineer and chief executive officer. He joined Ford in September 2006 before that he was the vice president of Boeing Company. Mulally is also an member of the Boeing executive council, he is one of the board persons of NASA advisory boards. He also a member of U.S National academy of engineering and England's Royal academy of Engineering. Earlier mulally works as co-chair of Washington Competitiveness Council.

General Motor leader

Daniel F. Akerson was born in October 21, 1948. He joined the General Motors company on July 24 2009. Daniel did his Engineering in the U.S Naval Academy and he did his economics from the London school of economics. He became the chief executive officer of GM in September 1, 2010 and also the chairman of GM in January 1 2011. Earlier in 1999, Daniel F.Akerson worked as the chief executive officer of XO holdings.Inc . He worked as the head of Global Buyout and he also worked as the managing director of Carlyle group yet 2009.

Current Situation

Ford Motor

The ford was ranked as 5th place in the world wide, the main manufacture of ford are trucks and cars, the net revenue of the company is US $ 136.26 billion, at current 400,000 employees were working in ford. At present the ford started to target the countries such as India and china to increase their market share and position. The operating income of the company is US $8.681 billion, the net income is US $20.21 billion and the total asset of the company is US $178.35 billion. The main competitors of ford are the Toyota and General Motors.

General Motor

At present General Motors are very fanatical about designing and selling the world's best vehicles . the General motors at current facing economical problems at present the federal government owns 500,000,000 the share its all around 26% of the company. The president Obama would try to sell the government massive position while the stock price fall, right now the government share of General Motors worth 39% less than when the company went public on November 17, 2010

Definitions of Leadership and importance

Leadership is an activity of guiding the people towards the productive results to obtain the targeted goals of the company. Leadership impacts the presentation of the organization, it enables the leader to plan , organize, control and act effectively.

The leaders are important because, a companies success and failures will depends on the qualities of its leader. The leader is the only person who have the rights to assign the responsibility to the managers and team .only the leader could bring the team-sprit between the group , in an company a leader is the first person to posses the order based on his order the whole team will work together to achieve the single goal. With out a leader things can go wrong and it will affect the progress of the company

The functions of the leaders are

To act as a representative of the work-group- because a leader is the common person between the top management and its work group.

To develop team spirit - he has the responsibility to encourage and motivate the working team to achieve the target goal successfully.

To built a task commitment and optimism

To strengthen collective identify

To have good time management

To have the ability to organize and control

To develop the mutual trust

To know how to use the power properly

To follow morality

Ford Motor (10%)

Leadership type/style/behaviour/traits

Mulally is the CEO of Ford Motor Company, he is an Motivational leader . Motivational leader is a person who encourages his teams and employees with guiding them in a right way to attain the goals of the company, this type of person will always be gentle and good in behavior. His type of managing the organization includes practical discipline. Mulally always wears a blue blazer , grey slack and red tie , he always have smile in his face it itself create an pleasant mood .Mulally is un compromisingly optimistic . Optimistic is the one among traits that all inspiring leaders has. Mulally's plan always lead to the success. He even will walk directly and speak to the lower level employees . Mulally will arrange meetings weekly once and clarify the doubts of the employees , the main aim of the meeting is that everyone should know everything. His vision is to encourage the best in others. He always encourages the youngsters by giving them the right responsibility and also he will guide them in that. Before he came to Ford , the company faced some problems related to finance , after he takes the charge of CEO of Ford Motor he minimized those problems by his talented planning skills,

What is the current company performance

At current ford faced heavy loss in Europe, it troubled the European automakers a lot in October 2012. It earned $ 1.63 billion in US but it was less when compared to its previous earnings. Globally ford earns $ 32.1 billion it also quite less when compared to its previous earlier global revenue. Recently the ford dropped out three of its factories in Europe, because of that 5,700 employees lose their job. But in its home market ford succeed but in the European market it faced many problems. In North America the revenue of the ford was increased to $2.32 billion it is better when compared to its previous revenue. The Ford faced problem in the Europe market because of the lowest sales and high incentives. It loss $468 million of pretax loss it was high when compared to the earlier pretax loss $306 in the third quarter of the year 2011

Critiques if the leadership has anything to help this performance.

Allan Mulally was a talented person in making decision and he has the capacity to draw the work from his employees by encouraging and motivating them. Because of this the employees will feel that they are working in a very good environment it makes them to work free and it will be good for the company to solve its problems and to attain the goal together with his gentle and kind behaviour. But even though he is not responsible for the bad market of Ford Motor company in Europe i hope that he could manage the situation by making some other effective plan .

General Motor (10%)

Leadership type/style/behaviour/traits

Mr. Akerson is well known for his no-nonsense leadership style and good financial background, Akerson was an hard-driven person on sometimes when the company was under staid situation. He does not haves any past experience in running a car company but yet too he performs well and good. Mr. Akerson is a decisive leader, the decisive leader is a type of person who clarifies all his doubt before making decision , who has the quality and ability to take decision in timely manner, the decision taken by him will be logically incorporated with the properties and cre values of the company, he won't fear to take hard decisions . The entire operating system of the company was just opposite to its previous years because the operating style of the Akerson was exact opposite to its earlier CEO's ,the decisions make by him will be more structured and clear , and he was very talented in taking timely decisions.

What is the current company performance

(Market share, revenue,growth)

The General Motors facing many problems its losing its market share right now because of that it unable to produce the product which are really competitive in the market, the General Motors needs about $53.00/share to break the bailout, but the stock closed at $ 20.21/share because of this the government share of General Motors faced $16.4 billion loss. At current the government trying to get hold of 60% because of that now they are in bankruptcy court.

The main reason for the General Motors to lose market is because of the entry of Malibu it enters into the D-segment of the company, it is accounted 14.7% in the year of 2011 in the total U.S market and it is accounted 21.3% in the first 7 months of the year 2012. The General Motors were now mainly focused on introducing the completely redesigned Chevy Malibu on 2013. At current the upgraded version Chevrolet is introduced by the General motors recently, it is expected that it will get popular in the year 2013, they also planning for the new truck sales , it is expected that it will hit the market at 2014, the trucks they are going to introduce will be 200 pounds lesser and lighter than that of its competitors.

Critiques if the leadership has anything to help this performance.

Even though Mr.Akersen was not the type of leader to encourage or entertain the employees he will draw the work from them by the way his own decisive style , his type of leadership only focus on the shaping of the company, he focus more on the process than the person the General Motor company faces problem in European market share , it is only because of the European crisis , with his timely decision making talent and decisive type of leadership he could over come that.

Who is a better leader?

Both are equal because even though Mulally the leader of the ford is a motivational leader , he always encourages his employees to perform good in their work. He always encourage the younger persons with giving them a big responsibility and guiding them to perform well in that. But with the case of Mr. Akerson ,his type of leadership is decisive type, decisive type of leader are not the leaders who takes decision too quickly, but they are type who takes the decision clearly and timely ,even though he does not encourage or entertain people, he was well known for his timely decision making talent and he won't fear or hesitate to take hard decision, even though it was as an first experience for Ackerson he did his job well and good yet. Both the companies were headquarter in U.S., and both ford and General Motors were next to next in the top automaker companies of U.S. Both the companies were facing lot problems in the European market its all because of the European crisis and low vehicles sales and high incentives. The types of the leadership may differ between each other but both are equal.

Organization structure and processes

Ford Motor

What is their company structure (2%)

The founder of the ford Motor Mr. Henry Ford formed the structure of the company . It was controlled by Henry Ford during the year 1946. In 1948 ford motor company created organization structure by using "GM PLAN" , it concentrated more on process oriented than production oriented


What is their organization business process (3%)

Ford has competition thought the global economy in hard position. It always establishes the knowledge organizations . Ford company has the esteem among the customers , the Ford takes the government assist. The Ford insists its workers to learn about the new ideas first because then only it will be easy for them to meet the shareholders needs and to work effectively for the success .The mission of the ford is One Team, One Goal, One Plan, it always encourages the team work . The success of the ford is always an joint success worldwide. It has many research foundation world wide . At current it innovated a heart monitoring seat system through learning effective organization.

Identify their weak processes. Is there any area to change /improve nor transform for their business process? Why? What is change and what is transformation? (10%)


The ford was very weak in the financial side , for example the ford registered a loss of $14.6

Billion in 2006, it was the very worst financial results of past 105 years. Then it faces many problems in high volatility of raw materials, and the high innovations costs . the Ford facing employee lay off problems because of its "voluntary separation program" . No workers of ford knows about the job cuts until the announcement was made in local media, although the people had been expecting layoffs. The fords internal weakness are the costs of raw material, facilities and retirees, the ford increased their costs of vehicles in order manage the additional expenses . the lot of problems faced by ford because of the more structural and organizational process. These are the some of the weak process of Ford where it needs transformation.



The Ford should concentrate more on financial side because it faced lot and lot of issues in the finance, it should try to minimize the raw material cost first, and then the innovation cost, then after other problems will automatically reduced. If it overcomes this problem there is no purpose for them to increase the vehicles rate.


If the ford eliminates the voluntary separation programs which it formed three years before then the employee problems will be diminished . Then the employees will also feel more secured and they could perform good than before to achieve the goal of the company.


The Ford should plan and completely redesign its structural processes because it is was more structural , the more structural processes will always leads to more pressure.


Innovation is the backbone of every company and the new innovations will only take the company to the next level. The company should introduce new technologies in order to hold its market and shares among other competitive companies in the market. Even though Ford has employed many innovations they are lagging in the mileage. It is the one of the main drawback of the ford, if it concentrates towards it then sure it will be very successful than other companies.


The ford should concentrate more on its marketing because its market share is not good when compared to its competitors like volks wagon, General Motors and Toyota. The ford should plan on short term product development because it is taking more time to develop a single vehicle, then it will consume more time to produce bulk vehicles then automatically it will lose market . The Ford should try to perform as like its main competitors such as Toyota and General Motors.

General Motor

What is their company structure (2%)

The General Motors follows the vertical organizational structure. The rigid hierarchy lead to some problems that the company encountered as internationally increased competition. Many different companies were centralized and merged with the General Motors. It created some redundancies in management and it is reflected on its products. The top managements decide the needs for its sub-levels, and what was to be in the market. The CEO's and top executives forms the decisions for the middle management, and also they decide what are all the customer's needs.

What is their organization business process (3%)

Identify their weak processes. Is there any area to change /improve nor transform for their business process? Why? What is change and what is transformation? (10%)

The weakness of the General Motors Company are declining of market share, product recalls, and financial declining not only this it has facing problem because of huge amount of inventories, in efficient processes and outdated IT systems

Recommendation ( Strategy - change or transform) (10%)