Answer the questions in the attached case study.

CHAPTER 1 O FORD MOTOR CO. ONE FORD; ONE BIG TURNAROUND had great brand loyalty and name recognition, Mullaly im mediately brought the Taurus back and set about reviving the brand name with a new, cooler design, ratherthan lose the valuable brand equity. Along with changing the Taurus, Ford revamped the Fusion and Focus lines and reintroduced the Fiesta from global markets. The changes have reaped awards: Ford's revamping of the Ford Fusion resulted in the midsize sedan being selected as the 2010 Motor Trend Car of the E In 2006, as the United States was nearing one ofthe worst E economic recessions in its history, Ford Motor Co. was best g: known for big brawny pickups, gasguzzling SUVs, and the E allAmerican MustangThat year, Ford posted a $12.6 billion loss. In 2007, it posted a $2.7 billion loss, and U.S. and global economies dove into a threeeyear recession. During that re E cession, Ford's major U.S. competitors (General Motors and g Chrysler) suffered such losses thatthe U.S. government gave them massive bailout loans and both companies led for BHINOH iStockph 6 bankruptcy. Ford, however, executed a series of key strategic maneuvers, asset divestitures, costcutting initiatives, and layoffs to weather the storm without bailouts. The result is a very different company and brand. A major part of Ford's strategy involved signicant changes in the products it had to offer. For years all the Detroit automakers had largely ignored the market for small cars, but the oil shock of 2008, increased regulatory pressure, and changing consumer demand made it clear that the focus had to change. Understanding the shift in consumer demand when he became CEO in 2006, Alan Mullaly started a massive consolidation of Ford's product lines. One of Mullaly's goals was to have a stable of prod ucts clearly dened for each market segment around the worldsmall, medium, and large cars, utilities, and trucks. Mullaly set a goal for Ford: reduce the existing 97 name plates in its portfolio to between 25 and 30 nameplates by 2013. Mullaly began by selling off many of Ford's non core brands, including Aston Martin in 2007, Jaguar and Land Rover in 2008, Volvo in 2010, and Mercury in 2011. Divesting noncore brands allowed Ford to focus on re charging the Ford brand and making it great. For example, Mullaly discovered that the oncepopular Taurus model had been discontinued because a weak design had not been well received. Mullaly then asked his design team, \"How many billions of dollars does it cost to build brand loyalty around a name?\" Because the Ford Taurus name Year. The new Fiesta was ranked number one by U.S. News Rankings and Reviews in the affordable small car category at the beginning of 201 1. One way that Ford has been able to quickly bring about success is by building different models with the same or similar excellent components all over the world. The Focus and Fiesta lines use a single platform for each worldwide market. Ford will still offer ve Focus variants based on that one platformfourdoor, hatchback, SUV, minivan, and commercial vehicle. The cost savings allow Ford to produce hybrid and electric models more afford ably. In fact, the Ford Focus Electric, released in 2012, is one of ve electric vehicles that Ford intends to release over the next two years. Ford is also exploring alternative fuels such as hydrogen and increasing the efciency of existing gas and diesel engines. But a vehicle is more than its engine, and Ford uni derstands that the entire consumer experience is what builds loyalty. Ford engineers invest great care and cre ativity in the design and safety features of their vehicles. For example, the integrated tailgate step and assist bar on Ford Feseries trucks make it easier to climb into the truck bed. Ford's curve control technology in the Ford Explorer can automatically reduce the vehicle's speed by 10 mph in one second if it senses the driver is taking a curve too recklessly. Now that the economy is showing signs of growth (though very slow growth), Mullaly is condent that Ford CASE STUDIES will continue to produce solid profits and even improve on 2. What are some examples of Ford's product line its performance from the past year. And he believes in the extensions? new product strategy: "You make less money on smaller cars, but we can make a return," he says. This will certainly be key to Ford's continued success. Sources: Matthew Dolan, "New, Lighter Ford Explorer Boosts Mileage," Wall Street Journal, July 19, 2010, http://online.wsj.com/article/SB100014240527487041964045753755530778561 16.html (Accessed November 8, 2012); Joseph B. White, "Detroit's Woes Make for Better, Smaller Cars," Wall Street Journal, January 19, 2011, http://online.wsj.com/article/SB10001424052748703954004576090061509442764 .html (Accessed November 8, 2012); Lauren Abdel-Razzaq and David Phillips, "Mercury Rolls into History with Build of Final Grand Marquis," Autoweek.com, January 4, 2011, www.autoweek.com/article/20110104 /cArNewS/110109982 (Acc n Hammond, "How Ford Did It," CNNMoney, January 13, 2011, http://money.cnn.com/2011/01/12/autos/Bill-Ford-Alan-Mulally-carmaker.fortune /index.htm (Accessed November 8, 2012); Alex Taylor Ill, "Fixing up Ford," Fortune, May 25, 2009, 44-5 Kaveri Niththyananthan, "Ford CEO Expects'Solid Profit" Wall Street Journal, September 27, 2010, http:// online.wsj.com/article/SB1000142405 2748704654004575517523508773954.html (Accessed November 8, 2012); Jeff Bennett, "Ford Picks Battery Supplier for Electric Focus,"Wall Street Journal, July 13, 2010, http:/ online.wsj.com/article/SB10001424052748704518904575365253704759106.html (Accessed November 8, What are some examples of Ford's product line 2012). contractions? QUESTIONS 1. What are some of the benefits Ford has achieved through reorganizing its product line? 2 CASE STUDIES