The Big 3 Roar Back Harvard Case Solution & Analysis

The "Big 3" - Ford Motor Company, General Motors, and Chrysler - were all headquartered in Detroit, Michigan. In the 1970s they started losing share to better quality, more fuel-efficient foreign imports. By 2008 they were staggering, and two required federal government assistance to stay afloat. Within three years, strangely, the Big 3 had turned around by enhancing competitiveness in price, design and quality. The Alan Mulally, GM CEO Ed Whitacre, and Chrysler CEO Sergio Marchionne of Ford took different approaches to guide their respective companies to developments in quality, product design, and cost competitiveness that resulted in positive cash flow, solid profitability and sales increases.

From October 2010 to October 2011, GM, Ford, and Chrysler sales increased 1.8%, 6.2%, and 27%, respectively. GM and Ford reported strong gains and better-than-expected sales, and agreed to pay bonuses as part of new contracts to unionized workers. Many saw the "Big 3" turnaround as proof that a unionized manufacturing sector might be resurrected through strong, decisive leadership on multiple fronts and improved union relationships.

The Big 3 Roar Back case study solution

PUBLICATION DATE: November 17, 2011 PRODUCT #: 412072-PDF-ENG

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