Then answer the following questions: What is meant by organizational change? What are some of the main challenges when it comes to organizational change? What are some ways that organizations can improve the likelihood of success in their change efforts?

Organizational Behavior class. 

Watch this video: http://www.viddler.com/embed/3df473f2/?f=1&autoplay=0&player=full&disablebranding=0%20

Then answer the following questions:

1. What is meant by organizational change?
2. What are some of the main challenges when it comes to organizational change?
3. What are some ways that organizations can improve the likelihood of success in their change efforts?
4. Do you think Ford made a good decision in focusing more attention on smaller fuel-efficient cars? Why or why not?

Assignment should be submitted in .doc, .docx, or .rft format.

Please make sure to cite the information in your paper and include a reference page in APA format. 

Instructions for formatting:  Please include a cover page in APA format and make sure the paper is double spaced.  The font type and size used should be Time New Roman 12. 

A sample cover page in APA format is provided under the Course Documents menu button as well as information on APA formatting.

Please use the link above labeled Week 7 Video Case:  Organizational Change and Effectiveness at Ford  to submit your assignment.

Organizational Change and Effectiveness at Ford

Henry Ford started Ford Motor Company in 1903 with $28,000 and a dream. Since that time, Ford has been an important part of the automotive industry and American history. Of course, much has changed in the auto industry since Ford got his start, and it is no secret that the American auto industry has struggled to compete with foreign car companies in more recent years. However, unlike Chrysler and GM, Ford famously avoided a government bailout.

This video discusses how Ford was able to avoid a government bailout despite losing $12.6 billion in 2006. Ford responded by engaging in a series of dramatic steps to restructure and change; to accomplish these changes Ford borrowed $23.5 billion and even mortgaged their iconic oval blue logo. Then CEO Bill Ford (great-grandson of Henry Ford) stepped down, and Ford hired Alan Mulally to take over as CEO. This move was considered a risk because Mulally had no experience in the auto industry; however, he had successfully restructured Boeing, and Ford was looking for this type of ability and vision in their new leader. In addition to hiring Mulally, Ford made dramatic changes throughout the company, cutting jobs and numerous assembly plants in the United States. Ford also reduced labor costs to better match that of competitors like Toyota.

Ford also responded to the market’s increasing demand for smaller more fuel-efficient cars. They also got rid of money-losing brands like Mercury. As an update to the video, Ford recently reported that its March 2012 sales have been the strongest since 2007. The increases are primarily due to sales of smaller fuel-efficient cars. Visit the Ford website for additional information.