Question

This assignment asks you to analyze various companies’ mission or organizational vision statements to determine how such statements guide leadership practices within an organization.

Select a mission statement or organizational vision statement from one company that professes to practice servant leadership and one that practices a standard leadership model. Some well-known companies that practice servant leadership are Southwest Airlines, REI, and Aflac. Conduct additional research to locate others.

Once you have selected two companies, write a 250 word analysis that addresses the following:

Compare and contrast the mission and/or organizational visions statements of the two companies. What are the similarities and differences? How do you think these statements impact the culture of each organization?

Answer 1

Ford Motor Company Analysis

The global automotive industry, (from both OEM and automotive suppliers perspective) is shaped by macroeconomic forces (stiffer regulations, fluctuating economic cycles, high auto loan interest rates etc.) and technology (connected cars, automotive vehicles etc.). As a result, the industry’s strategy of global scaling by making high capital investments in multiple regions alone cannot help them sustain.¹

Ford’s generic strategy from the 1900s, since it invented assembly line for mass production has been cost leadership i.e. to provide cars of high quality that meets the standards of performance at lower prices. The company has achieved it through various methods of operational effectiveness that helped them to minimize cost and increase productivity.

Summary of Ford’s hierarchy of company statements:

Mission – “One Team. One Plan. One Goal” ². This mission statements show that Ford exists to deliver consistently superior product and service quality globally, thereby providing profitability for everyone in the team: Customer, Investor, Employee etc.

Vision – “People working together as a lean, global enterprise to make people’s lives better through automotive and mobility leadership.”². Ford wants to lead the international market and improve its 5^th position by generating value for all stakeholders and practising lean operations.

Core Values – “People - They provide our corporate intelligence and determine our reputation and vitality”, “Products - They should be the best in serving our customers worldwide”, “Profits -Profits are the ultimate measure of how efficiently we provide customers with the best products for their needs.²

These values not only serve as a source of competitive advantage but also help with the implementation of strategy by supporting “One Ford Plan”.

Strategy – To achieve and sustain growth, Ford has adapted wide differentiation along with cost leadership as the basic generic strategy. For gaining the competitive advantage, they are providing entire family of vehicles, strengthening One Ford Plan ³, and driving innovation in all its business verticals.

Ford has aggressively started to penetrate the market and has also reduced the turnaround time for developing new products by investing heavily in R&D.

Balanced Scorecard - To monitor and implement the strategy, Ford manages a ‘Blueprint’ to maintain sustainability, and a ‘Value Roadmap’. ³

Thus, the uniqueness about Ford is that it has a clearly defined strategy and has put efforts through One Ford Plan to help guide every stakeholder’s decision. One Ford encourages a common global approach and teamwork that serves as a guiding light for the employees and management to make decisions even in difficult situations

1. _{“2016 Auto Industry Trends”, A report by PwC, Q1 2016}
2. _{“About Company”, Information from company’s website,}
3. _{“Sustainability Report 2015-16”, A report by Ford Motor Company, 2015-16}

Southwest Analysis

SWA was founded in 1967, but operations were delayed for nearly years It was started asana intra-state operator in Texas and as a Boeing’s best customer. Its market value exceeded that of all the other airlines combined in 2001.

The strategy of SW was:

1. Low cost - 60% lower than average fare; No business class

2. Low turnaround time - 10-minute turnaround; High aircraft utilization; Productive ground and gate crews

3. Contrarian Approach - What they didn’t provide, that other carriers did

Its main focus was on: service-memorable & inexpensive, Focus on culture- “Customer” & “Employee”, Culture Committee, Warrior Spirit, Servant’s Heart, Fun-LUVing Attitude

All these were framed around their mission and vision statements. They also guided when they were in problems -
Higher fuel costs led to higher operating costs & higher costs mean higher fares, Higher fares reduced the demand which affected the revenues of the company, Pressure to change the business model and expand revenue generating capabilities increased.

The offerings were guided as per their statements. There were - Early Bird, Rapid Rewards, Cashless Cabin, Bags fly free.