Ford Mondeo Case

In: Business and Management

Submitted By milaross
Words 8253
Pages 34
Ford Mondeo: A model T world car?1

Michael J. Mol

Rotterdam School of Management

Erasmus University Rotterdam

Room F 4-66

P.O. Box 1738

3000 DR Rotterdam

Phone: ++31-10-4081168

E-mail: mmol@fbk.eur.nl

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The conceptual base of this case study is described in much more detail in: Mol and Koppius (forthcoming).

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Executive summary This case weighs the advantages and disadvantages of going global. Ford presented its 1993 Mondeo model, sold as Mystique and Contour in North America, as a ‘world car’. It tried to build a single model for all markets globally to optimize scale of production. This required strong involvement from suppliers and heavy usage of new information technology. The case discusses the difficulties that needed to be overcome as well as the gains that Ford expected from the project. New technology allowed Ford to overcome most of the difficulties it had faced in earlier attempts to produce a world car. IT was flanked by major organization changes within Ford. Globalization did not spell obvious success though. While Ford may in the end have succeeded in building an almost global car, it did not necessarily build a car that was competitive in various markets. The Mondeo project resulted in an overhaul of the entire organization under the header of Ford 2000. This program put a heavy emphasis on globalization although it perhaps focused too little on international cooperation and too much on centralization. In terms of Ford’s own history, the Mondeo experience may not be called a new model T but does represent an important step in Ford’s transformation as a global firm.

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Background An important stream of work in the area of international management (Prahalad & Doz, 1987; Bartlett & Ghoshal, 1989) is concerned with the location paradox: should an internationalizing firm be responsive to local circumstances or go…...

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