In late 2006, Ford Motor Company announced a major reorganization that would streamline decision making and lever its global assets. The company’s CEO, Alan Mulally, stated, “This new leadership will enable us to work together more effectively as one Ford team to continuously improve the quality, productivity and speed of our product development process.” The key objective of this plan was to realign the organization in terms of its customers and its markets. The leaders of its three global business units would report directly to Mr. Mulally, as would the newly created position responsible for global product development. The three business units were Ford the Americas, Ford Europe and Premier Automotive Group, and Ford Asia Pacific and Africa/Mazda. The Global Product Development unit would emphasize shared vehicle platforms, thereby reducing costs and improving quality through exchange of information and best practices. Ford also announced changes to its marketing and sales structure to reduce positions and streamline operations.

a. Based on their responsibilities, would you classify the leaders of the global business units and of global product development as managers of cost, profit, or investment centers?

b. What are possible performance measures for these managers?