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Ford Project - Family Dynamics

Autor:   •  November 15, 2018  •  1,389 Words (6 Pages)  •  593 Views

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A lot of the Ford family members have still been involved with the company but the most notable is Bill Ford. He has done his best to keep voting rightds in the hands of the family because he feels that is really what differentiates Ford from its competitors. Some other notable family members who have ownership and are still involved in the business would be Elena Ford, Alfred Ford, Edsel Ford II, Alessandro Uzielli, Calvin Ford, Henry Ford III, and Jody Inle Jr. Family members who have ownership but are not involved include Anne Ford, Josephine ford ( although he has worked there before) , and Martha. The Three circle Model below will give better representation on family ownership.

Succession

Succession has never really been an issue at Ford. The first Generation begins with Henry Ford himself. Prior to starting the company, Ford had a variety of experience with startups. Unfortunately, none have proven to be successful. Which led to Ford to look into beginning his own business in the auto-motive industry. Although when he initially began creating the dynasty of Ford, he wasn’t the sole owner. There was upwards to about twelve investors who had ownership rights. He did retain the role as the president and CEO of the company. During the year of 1919, Henry’s only son Edsel succeeded him as president. That was after Henry set forth a plan that would buy out his investors, making himself, Clara (his wife), and Edsel sole owners.

Edsel Ford only succeeded his father as president and not CEO. Edsel’s efforts as president have proven to be extremely successful. His impacts did not go unnoticed. The first of which is his creative design to give affordable cars a luxurious look. The second was his backing of art in Detroit. Edsel was really the rare exception of succession within the business though. Despite his contributions, he never really had a plan set in stone. Heres why, Edsel passed away of stomach cancer at the age of fourty-nine. This was unexpected by the company and the Ford family, which caused Henry to come back to the company.

Henry was only in the company for two years before Henry II, the son of Edsel, succeeded him as president and CEO. Henry II was in the Navy but was deactivated by Franklin D Roosevelt to go home to aide his family in a time of need. Henry II brought a disciplinary structure to the organization because bookkeeping practices were in disarray. The auto company was faltering before his arrival. He managed to transform it into the second largest industrial corporation in the world. It was under him, the company decided to go public in 1956. Ford then retired from his presidency in 1960, being succeeded by Robert S. McNamara, then retiring from the company in 1979, where he was succeeded as CEO by Phillip Caldwell.

Phillip Caldwell was the first non-family member to become chairman and CEO. The plan now that Ford has gone public was to retain majority ownership and have voting rights in the daily operations. But there was a point where they felt that the organization began to stray away from its core values. This is when they brought William Ford, often referred to as Bill, into the CEO position. Bill has been a part of Ford for quite some time and really wanted to bring the impact of the family values into the organization. After a few years, in which he felt he wasn’t getting the job done, Bill fired himself and was succeeded by Alan Mulally as CEO. He did though retain a spot as Executive chairman.

Succession now is decided by the Board of Directors. Ford has made it a priority to always have a plan in place when it comes to assigning replacements. Ford mentioned it isn’t easy to just select new CEO. This type of planning is difficult and lengthy. Ford has a long history with succession and they have gotten it right with this approach. Whether another Ford family member will become a CEO is unknown, but for now they are satisfied with their voting rights and ownership.

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