...Volkswagen Research “The Volkswagen emissions scandal explained” http://www.theguardian.com/business/ng-interactive/2015/sep/23/volkswagen-emissions-scandal-explained-diesel-cars * “Volkswagen has been cheating in emission tests by making its cars appear far less polluting than they are. The US Environmental Protection Agency discovered that 482,000 VW diesel cars on American roads were emitting up to 40 times more toxic fumes than permitted - and VW has since admitted the cheat affects 11m cars worldwide.” * “…far more harmful NOx emissions, including nitrogen dioxide, have been pumped into the air than was thought – on one analysis, between 250,000 to 1m extra tonnes every year. The hidden damage from these VW vehicles could equate to all of the UK’s NOx emissions from all power stations, vehicles, industry and agriculture.” * “VW’s “defeat device” is not a physical device but a programme in the engine software that lets the car perceive if it is being driven under test conditions - and only then pull out all the anti-pollution stops.” * ““Clean diesel” engines cut emissions through techniques such as adjusting air-fuel ratios and exhaust flows, and in some (though not most VWs) injecting a urea-based solution to render NOx harmless. When running normally, requiring greater performance, VW’s controls would not operate in the same way.” * “How does the defeat device know it's being tested? The EPA tests have known practices and profiles. In many...
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...Volkswagen Group Business Strategy & International Management Content 1 2 Introduction Volkswagen Group 2.1 2.2 Figures, Data, Facts History 2 2 2 4 5 5 6 8 8 10 12 12 15 16 17 18 3 Strategy Planning 3.1 3.2 Overall Strategy Strategy 2018 4 Business Risk Analysis 4.1 4.2 Porter’s Five Forces Resources and Capabilities 5 Financial Risk Analysis 5.1 5.2 Key Financial Figures Risks 6 7 8 SWOT-Analysis Conclusion References 1 Business Strategy & International Management 1. Introduction Whenever you visit another country and you say that you come from Germany on of the first things you ever hear is “Germany, oh I like German cars” and then they say e.g. BMW, Mercedes or Audi. That shows that German cars are not really German cars, instead they are world cars, produced and sold in countries all over the world. In my case I choose the Volkswagen Group because it is the biggest German car manufacturer and the second largest in the world. Moreover the strategy of Volkswagen is to be the largest car manufacturer until 2018. To reach this goal it is very important to understand the globalized world to compete with their competitors in a more and more competitive environment. Furthermore it is very important to show attention to emerging markets to increase the company’s sales especially when some markets like America and Europe are satisfied. In this report I want to analyze the Volkswagen...
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...PORSCHE CASE “Porsche-a brand with heritage” A brand is a product but adds other dimensions that differentiate it in some way from other products designed to satisfy the same need. For the last 50 years Porsche is on the list for prestigious, premium, luxury brands with high percentage of awareness and loyal customer and behind strong brand stands successful branding strategy, strategy that Porsche have implemented through the years and strategy that brings amazing results among this large period since the beginning of Porsche as product and then premium brand. The management team of Porsche succeed to create brand value and to convince the customers that there are meaningful differences among brands in the product. Porsche possess a unique brand personality which sets him apart of the competition. It has everything that one successful brand should have; powerful brand name, recognizable symbol and logo, premium price, high awareness and loyalty that provides predictability and security of demand for the firm and creates barriers to entry that make it difficult for other firms to enter the market. Loyalty also can translate into a willingness to pay a higher price. Beside all of the elements that we can see, there are many components ,under the surface related to the brand, that make him strong and powerful, like ; high quality, efficient production and effective selling, strong R&D and so on. The brand image and core values of Porsche can be described with these three...
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...UK Automobile Industry 1. Wikipedia : Primary categories : Sports and luxury end cars – Aston Martin, Bentley, Daimler, Jaguar, Rolls-Royce etc Volume Car Makers – Nissan, Honda, Toyota etc Commercial Manufacturers – Ford, Leyland, London Taxis International etc Back in 1950 , UK was the second largest car manufacturer and exporter after USA. Subsequently over some decades slowed down and was then ranked on the 12th spot with immense competition from nations like France, Germany and Japan\. Late 80’s many of the British marques were bought over by foreign companies 2. http://www.thisismoney.co.uk/money/cars/article-2524573/Can-motor-industry-continue-fifth-gear-race-ahead-2014.html The latest UK car manufacturing figures showed that 1,286,287 motors were produced in the first 11 months of the year, a rise of 5.4 per cent compared to last year with sales also up by an impressive 9.9 per cent. Of the five major European car markets – Britain, France, Germany, Italy and Spain – only Britain has seen growth in the new car market this year. The rate of growth depends principally on when the car manufacturers pull back on the cheap credit that is currently pump-priming the market. If this cheap credit remains available throughout next year then there is an increasing risk of oversupply of new cars which could raise anxiety regarding a potential shock fall in used car residual values.’ Political Economic Payment Protection insurance payouts Cheap financing ...
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...(Porsche case) Introduction: For its first few decades, Porsche AG lived by the philosophy of Ferry Porsche, Ferdinand s son. Ferry created the Porsche 356 because no one else made a car like he wanted. They did no market research, had no sales forecasts, no return-on-investment calculations. None of that ,he very simply built his dream car and figured that there would be other people who share that dream. So, really, Porsche AG from the beginning was very much like its customers: an achiever that set out to make the very best. But as the years rolled on. These are challenging questions to answer; even Porsche owners themselves don't know exactly what motivates their buying. But given Porsche s low volume and the increasingly fragmented auto market, it is imperative that management understands its customers and what gets their motors running. The problem: The absence of real strategy, market research,sales forecasting and the absence of vision and taking the risk of changing segmentation strategy, . They considered these entry-level models to be cheap and underperforming. Most loyalists never really accepted these models as real Porsches. In fact, they were not at all happy that they had to share their brand with a customer who didn t fit the Porsche owner profile. They were turned off by what they saw as a corporate strategy that had focused on mass over class marketing. This tarnished image was compounded by the fact that Nissan, Toyota, BMW, and other car manufacturers...
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...PROJECT CASE STUDY OF THE VOLKSWAGEN NEW BEETLE [pic] MKTG Principles of Marketing TABLE OF CONTENTS Abstract Introduction Product concept Development of the Volkswagen New Beetle New Beetle adoption Marketing throughout the product life cycle Beetle brand Findings Conclusions Reference list Abstract *** “The Beetle is different, it makes you feel different. It is like a magnet”, - Volkswagen Chairman, Ferdinand Piech (Keith Naughton and Bill Vlasic, 1998) *** The present paper is the case study of the Volkswagen New Beetle from the marketing perspective. The thesis will analyze the product concept, and examine the New Beetle in terms of the concept in question. The purpose of the paper is to identify the issues in the application of theory with regard to the New Beetle as a product, describe the function and operation of this element of the marketing mix in Volkswagen, as well as to review the status of the identified issues in the reviewed company. The paper will consider the introduction of the New Beetle to the market and examine the respective phases of the product development. The thesis will also examine the adoption of the New Beetle as a product, overview the product lifecycle and the issues with regard to the Beetle brand. Overall, New Beetle is unique from other cars and can be the good example of the successful product development and adoption. The Beetle Brand...
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...observed within the two dynamic countries. Germany is one of the world leaders in the automotive industry, and is the biggest exporter within the EU for automotive vehicles by far. With a vast interest in the high quality products and excellent services that the Germany car industry has to offer they are benefiting from impressive figures as shown (Mccarthy, 2013) “Germany is the chief exporter by some distance. Europe’s economic powerhouse exported an impressive $245.4 billion worth of automobiles in 2011. During the same year, Germany reported $104.1 billion of vehicle imports.” This is bringing great amounts of wealth into the nation. By having seven of the world’s most popular brands (Audi, BMW, Ford Germany, Mercedes-Benz, Opel, Porsche, and Volkswagen) Germany are able to offer a vast range of luxury vehicles which are in great demand; this is allowing Germany to have massive growth within the car industry which shows no sign of decreasing. Within the 2009 financial crisis many sectors failed to make a profit or match sales from the previous years. But with Germany offering scrapping programs that allowed customers to scrap old cars with up to $3,000 euros towards getting a...
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...Bastian Steppin LDR:460 Professor: Dr. Kecia Edwards April 2014 IMPORTANCE OF EFFECTIVE TEAMWORK IN THE AUTOMOBILE INDUSTRY This paper focuses on effective teamwork and how important it is for the automobile industry. This Industry is very fast moving and one false decision can cost millions of dollars for the company and can cost thousands of peoples jobs in case that the company goes bankrupt. The carmakers are on search for every cent that they can safe during the research, development, and also during the production process of a new vehicle. Of course, there are different ways to cut the cost in this industry. One way would be to use cheap and low-quality metals, another way would be to use cheap and less skilled employees. However the problem with these two approaches would be that they would harm the quality of the final product. The customer usually wants a high quality car for a low price and also low using cost. Therefore, the idea of using cheap and low quality metals, and also assembling the car by using unskilled and cheap labor, would finally result in the loss of customers and therefore the loss of business. The right way to do it is to find the right balance between price and quality. This right balance is very important for the companies and effective teamwork helps them to accomplish this goal. If a company does not use its resources in the most effective way and also does not use effective teamwork, then it will eventually suffer from its decisions. For...
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...Porsche : Guarding the Old While Bringing in the New Introduction Porsche : The company Porsche founded in 1931 Porsche appealed to financially succesful people. People buy Porsche because the car mirrors their self-image Unique company Managers of Porsche wants to know: -Who their customers are - What they think - How they feel The buyers decision process Low volume and increasingly fragment auto market Sold a few models, creating an image of excusivity Making decisions : Cayenne or Panamera? Porsche 914 1970 - Porsche began to worry Cheaper model for other classes Made for a differend type of costumers VS How the Loyalists were thinking about the 914 They never accepted the 914 as a real 'Porsche'. The 914 users don't fit in the real owner profile. Disappointment in the new strategy of Porsche : Mass over Class Questions for Discussion Positive and negative attitudes toward a brand like Porsche. Positive Customer buying a Porsche wants to show their status and separate from the lower class. Negative Customers are not satisfied with the produce image. Answer 1 : It is the image of exclusivity that is most important. They want their car to represent how successful they are. Answer 2 : A traditional Porsche customer is more concerned about the way the car sounds, vibrates and feels. A Cayenne or Panamera customer is looking for both family car and speed. Answer 3 : * Cultural Factors (Social Class); having a Porsche is always means to upper social class...
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...any of the cars. This opened a new market for the “peoples’ car” in Germany. Volkswagen, which means “peoples’ car” in German, wanted to produce good quality cars that were affordable to the people. The car for the people was a blue ocean market in Germany, and the company quickly grew. Despite WWII and the effects it had on Germany and its economy, Volkswagen survived and soon became a symbol of hope for the German future. In 1969, Volkswagen merged with what is now called Audi, to grow and expand the company. As Volkswagen grew and became more profitable they continued to expand globally and acquire new companies becoming the Volkswagen Group. The Volkswagen Group consists of Volkswagen, Audi, Bentley, Lamborghini, Bugatti, Ducati, Porsche, Suzuki, Skoda, SEAT, Scania, and MAN. This once small German car company for the people is now comprised of several companies, making Volkswagen one of the most global, highest producing, and most profitable automobile manufacturers amongst its competition. Compared to the industry growth of 8.6%, VW is growing at 9.1% and has plans to keep expanding. Because of their larger growth, they will be able to capture more of the market share. Volkswagen has recently become significantly more profitable,...
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...INTI INTERNATIONAL UNIVERSITY FACULTY OF BUSINESS, COMMUNICATION AND LAW MKT 2103 / MKT2105 – CONSUMER BEHAVIOUR AUGUST 2014 INDIVIDUAL ASSIGNMENT (20%) Analyse the case study given and answer the following questions. While most automobile companies talk about bankruptcy, merger, collapse, and liquidation, Volkswagen AG is posting solid earnings. Based in Wolfsburg, Germany, and Europe's biggest automaker by sales, Volkswagen (VW) managed the global eco-nomic recession well by focusing on emerging markets such as China and Brazil and continually reducing costs. VW is the leading auto firm in China, not Toyota or Nissan. VW's market share in Western Europe rose to 20 percent in 2009 from 17.9 percent a year ago. While shrinking demand for new cars in major markets and high raw-material costs, and unfavorable exchange rates have reduced earnings of most European automakers, VW anticipated these conditions through excellent strategic planning and continues to take market share from rival firms worldwide. The German truck maker and engineering company MAN AG is VW's largest single shareholder at 30 percent, and its business too has been good. MAN'S third quarter of 2008 saw profit jump 34 percent, lifted by strong sales of trucks, diesel engines, and turbo machinery. VW is currently spending $1 billion to build a new plant in Chattanooga, Tennessee, for the production of a midsize sedan in 2011 with initial capacity of 150,000 cars annually. VW's plans for 2018 include...
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...decision process of a traditional Porsche customer. Its owners see it as a car to be enjoyed, not just used. Most Porsche buyers are not moved by information, but by feelings. A Porsche is like a piece of clothing, something the owner wears and is seen in. They develop a personal relationship with their cars , one that has more to do with the way the car sounds, vibrates, and feels than with how many cup holders it has or how much cargo it can tote. They admire their Porsches as machines that perform without being flashy or phony. People buy Porsches because they enjoy driving. 2. Contrast the traditional Porsche customer decision process to the decision process for a Cayenne or Panamera customer. Traditional Porsche buyers want a two door sports car that nobody sees on a regular bases but as for the Cayenne and Panmera, these vehicles are the relaxed drivers who still want the speed and the luxury. First, a category of Porsche buyers has moved onto life stages that have them facing inescapable needs- they need to haul more people and stuff. This not only applies to certain regular Porsche buyers, but Porsche is again seeing buyers enter its dealerships who otherwise wouldn’t have. Only this time, the price points of the new vehicles are drawing only the well heeled, allowing Porsche to maintain its exclusivity. These buyers also seem to fit the achiever profile of regular Porsche buyers. 3. Which concepts from the chapter explain why Porsche sold so many lower-priced models...
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...Ethical issues faced by Proton Car Ethical issues faced by Proton Car Now a day businesses are considering ethical issues as a terms of administrative compliance to cope with legal environments and following internal organizational rules and regulations. It is also true that following business ethics not only motivate employees but also help them to perform at their level best. The impacts of different ethical issues faced by Proton Car of Malaysia are discussed below: a. Rights, conflicts and responsibilities: While Proton car was established in Malaysia, they don't have the skill and technology to run this business swiftly as a result they hired technology and skill from Mitsubishi Motors Corporation. As the technological and knowledge shifted they started to produce on their own effort. This means, Proton Car Corporation is depended on the skill of the labor. So they must give them some rights to motivate them and increase the profitability. As it engaged in global business the necessity for giving the employee rights increased much. Now Proton car have 10,300 employees to cover up its activities. This essay is an example of a student's work Disclaimer This essay has been submitted to us by a student in order to help you with your studies. This is not an example of the work written by our professional essay writers. Essay Writing ServiceEssay Marking Service Who wrote this essayPlace an Order As over 42% of the equity is held by the Malaysian Government the employees...
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...BSM 3614 Strategy Trimester 2, 2015/2016 BSM 3614 Strategy Trimester 2, 2015/2016 The Strategy Formulation Framework Automobile Industry Volkswagen Lecturer : Mdm Jayanty A/p Kuppusamy Prepared by: Students’ Name | Students’ ID | Boong Lek Yang | 1112702060 | Cheryl Sim Qiao Ping | 1112700828 | Gog Yi Jun | 1112700309 | Pong Fwu Yi | 1121115503 | Yau Shye Hui | 1112702505 | Table of Content Description | Page number | Executive Summary | 4 | List of Tables | 5 | List of Figures | 5 | I Introduction | | II Methodology: The Strategy Formulation Framework | | III Company Background | | The Internal Environment 1. Resources2. Capabilities3. Core Competencies | | The External Environment1. Demographic2. Economic3. Political/Legal4. Sociocultural5. Technological6. Global7. Physical8. Industry | | Porter Five Forces Model1.Threat of New Entrants/Barriers to Entry2.Bargaining Power of Suppliers3.Bargaining Power of Buyers4.Product Substitutes5.Intensity of Rivalry Among Competitors | | IV Analysis 1: The Input Stage 1. Internal Factor Evaluation (IFE) Matrix 2. External Factor Evaluation (EFE) Matrix 3. Competitor Profile Matrix (CPM) | | V Analysis II: The Matching Stage1. SWOT matrix 2. SPACE matrix 3. BCG matrix 4. I/E matrix 5. Grand Strategy Matrix | | VI Analysis III: The Decision Stage 1. QSPM Matrix | | VII Strategy Recommendation | | References | | Appendices | | ...
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...Volkswagen: Company Profile and Moving Forward Cody Marek, Bernardo Scavelli, Jessica LaMarca, Tommy Patzin, Lizzy Sutton, Jake Trancoso, John Delanois MQM 385 Section 9 Professor Avi Datta Group 3 5/5/2015 Executive Summary Volkswagen is a largely known contender in the motor vehicle market. Ever since VW began production at the end of World War II, the company has produced many successful models and innovations. The company has also been able to launch consistently key developments in order to improve products, customer base, and market share.Their first Expansion began with entering foreign markets, but Volkswagen currently focuses on product diversity, specifically the addition of SUV offerings. Volkswagen operates in a mature and well-established industry. The strong rivalry, relations with suppliers and customers, substitute products, and potential competition all contribute to this environment. Volkswagen’s distinctive competencies of being highly innovative, customer-focused, and responsible allow it to compete effectively in this market. Milestones (Key developments/launching of key products) Volkswagen is a very well-known brand that has produced many models over the years. Volkswagen has launched at least one key product and had at least one key development every decade since the 1940s. This trend began in 1945 when Volkswagen began producing cars. At the end of World War II, Volkswagen began production of cars after having produced...
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