...Carolina Mariño FACULTAD DE CIENCIAS ECONÓMICAS Y ADMINISTRATIVAS CLASS: Strategy in action. TEACHER: Sandra Jenina Sanchez. CASE: VOLKSWAGEN DO BRASIL Driving Strategy with the Balanced Scorecard 370.000 Employees Worldwide 61 Production facilities across 21 countries 151 Countries 10 Brands 6.3 million vehicles sold The Automotive Landscape in Brazil (cc) image by nuonsolarteam on Flickr It had the 5th largest land area and population It had the world's 9th largest economy Recently is the largest and most diversified economy in Latin America The automotive sector produced 19% of their GDP. +1.5 million of employes in +200,000 companies Brazil had a TIP capacity of 4 million vehicles per year Total revenue of $74 billion per year 6th largest producer of passenger vehicles 5th largest consumer market GLOBALLY Market share of 10.3% Revenues of €113 billion from sales Automotive Industry Volkswagen do Brazil VWB was the 3rd largest in the VWAG system behind China and Germany. It operated four plants. VWB produced revenues of €7.04 billion It employed about 22,000 people It's focused on small and medium sized vehicles VWB had the most complete portfolio within the brazilian market It offered 22 different models It has a modern product design prototype center located in Sao Paulo. 1953 Timeline Volkswagen do Brazil 1956 1st plant outside Germany Ipiringa VWB started with 12 employees 1969 50% produced in Brazil VWB had earned a 61% share of Brazil's car production 1970's Launched medium...
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...challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? Ans: Thomas schmall faced many issues in the VWB , mainly the pressure on profitability, sales, employees issues and customer satisfaction. As we see from the case, Volkswagen do Brasil faced several problems, for eg:- • Financial losing and market share declining. • Restructuring the organization chart to accommodate new leads and tasks for a project. • Diminishing market share of VW. • challenges were the entry of many multinational car manufacturers into the Brazilian market. The market share of VW was heavily affected among other competitors. However, Shmall was still optimistic of seeing more growth in the country market. Regarding the cost, the company tries to cut some cost by reeducating managers in several aspects, such as innovating new products, improving processes, and spending budgets wisely. 2. Describe VWB’s Strategy? Ans: VWB´s new strategy was multifaceted and consisted basically of four major objectives that guaranteed that VWB would regain position as market leader Brazil and strived for 1 producer of the South American automotive market. • To realize their strategy they needed to “build a high performance team that would drive VWB to become South American industry´s leader in quality, innovation, sales, and profitability on a sustainable basis”. • Further “Re-Branding VWB into one with enthusiastic and highly-motivated employees who continually...
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...Challenges of VWB when becoming CEO: Before Thomas Schmall was appointed CEO in 2007, he already gained knowledge about Brazil and the subsidiary while reorganizing production in 1999 to 2003 until he was sent back to Europe. This crucial fact helped him quickly adjust to the different company cltre4 strategy and overall mindset existing in Bra5il. Before analy5ing the challenges he faced as #$% in )2204 the 6estion arises why he didn*t res!ond to the known !ro"lems dring his for years working in #riti"a( VWB wold have saved enormos resorces4 if they had rigorosly res!onded to the !ro"lems earlier. Ths VWB sffered eight consective years from losses4 lost market share tremendosly4 made the s"sidiary "reacratic and created an atmos!here of a!!rehension and insta"ility among the workers4 as .89. Senn &V -man ;esorces' commented. Before Thomas Schmall was appointed CEO in 2007, he already gained knowledge about Brazil and the subsidiary while reorganizing production in 1999 to 2003 until he was sent back to Europe. This crucial fact helped him quickly adjust to the different company culture, strategy and overall mindset existing in Brazil. Before analyzing the challenges he faced as CEO in 2007, the question arises why he didn´t respond to the known problems during his four years working in Curitiba? VWB would have saved enormous resources, if they had rigorously responded to the problems earlier. Thus VWB suffered eight consecutive years from losses, lost...
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...Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard Index: 1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? 2. Describe VWB´s new strategy 3. What are the benefits from having all employees understand the strategy? 4. How does the strategy map and Balanced Scorecard help Schmall and Senn implement the new strategy? 5. What are the strengths and weaknesses of the Scorecard and its implementation? 6. What other actions did VWB take to support strategy implementation? 7. How can Schmall and his team use the scorecard to deal with the challenges faced by company in January 2009? 1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? Before Thomas Schmall was appointed CEO in 2007, he already gained knowledge about Brazil and the subsidiary while reorganizing production in 1999 to 2003 until he was sent back to Europe. This crucial fact helped him quickly adjust to the different company culture, strategy and overall mindset existing in Brazil. Before analyzing the challenges he faced as CEO in 2007, the question arises why he didn´t respond to the known problems during his four years working in Curitiba? VWB would have saved enormous resources, if they had rigorously responded to the problems earlier. Thus VWB suffered eight consecutive years from losses, lost market share tremendously, made the subsidiary bureaucratic and created an atmosphere of apprehension...
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...1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? Thomas Schmall was appointed as CEO by VWAG in 2007, but he already knew the business, because he had subsequently held different managerial positions in the company in different countries (South Africa, China and Mexico). He did not want to continue VWB’s strategy of cost reduction, capacity downsizing and employee layoffs. With the model of the German technology in mind to produce small, reliable vehicles, he had the vision to format a high performance team and let VWB become the automotive industry leader in sales, profitability, quality and innovation in a sustainable way. From 1999 until 2007, VWB faced a declining market share and financial losses, so Schmall and his new VWB management team started to introduce the balance scorecard. One of the main challenges of this introduction was to create a high performance spirit and to introduce the different aspects of the balanced scorecard internally. VWB also struggled continuing their export-led strategy and keeping their production minimum due to the Brazilian currency, relative to the euro and the dollar along with rising labor and material costs. Due to stiff competition in the auto industry world-wide, VWB faced the problem that they could not increase prices on shipped products. This resulted in excessing capacity costs and these would not be covered by the insufficient export margins. Although this was a challenge for Thomas...
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..."ack to$ro!e. This crcial fact hel!ed him 6ickly ad7st to the different com!any cltre4 strategy andoverall mindset existing in Bra5il. Before analy5ing the challenges he faced as #$% in )2204 the6estion arises why he didn*t res!ond to the known !ro"lems dring his for years working in#riti"a( VWB wold have saved enormos resorces4 if they had rigorosly res!onded to the!ro"lems earlier. Ths VWB sffered eight consective years from losses4 lost market sharetremendosly4 made the s"sidiary "reacratic and created an atmos!here of a!!rehensionand insta"ility among the workers4 as .89. Senn &V -man ;esorces' commented.ro"lems that Schmall had to co!e with can "e divided in external and internal ones. Beforetackling internal !ro"lems4 external o"stacles need to "e analy5ed. Their im!act has a vitalinflence on internal actions to remedy im!ediments within the com!any. 9irst and 9oremostSchmall needed to handle the vast decrease in domestic market share which !roceededcontinosly over the years. This led to an all8time low in )22+ with )1 < "ehind a!anese and9rench manfactrer.VWB also strggled sticking to their ex!ort8led strategy and maintaining !rodction minimm"ecase of =the a!!reciation of the Bra5ilian crrency4 relative to the dollar and ero4 along withincreases in the local la"or and raw materials costs>4 as Schmall !ointed it ot. ?nother !ro"lem was that VWB coldn*t increase !rices on shi!!ed !rodcts4 "ecase of stiff com!etition inatomotive world8wide...
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...Question 1: How does developing a strategy map and associated balanced scorecard help the leadership team implement the new strategy? Developing a strategy map and associated Balanced Scorecard helps the man-agement team by clearly define the objectives and targets of the new strategy. As it is stated in the case, it is hard to implement a new culture in a company. By identifying the dimensions (Finance, Customer, Internal Process, and Potential and Growth) the management believes will make a difference and help VWB to accomplish the goal of changing the mindset of the company, with the strategy map together with the balanced scorecard it is possible to communicate easily through all levels down to the factory floor. The new strategy has to be under-stood by all employees in order to be successfully implemented. The Balanced Scorecard defines the role of each employee and the Executive Committee re-sponsibilities and how each improvement will be measured helping to clarify how each goal can be achieved. Question 2: How well does the strategy map and the balanced scorecard capture VWB’s new strategy? The main goal of VWB is to enable the company to regain its past #1 market po-sition in Brazil. To do so, they intend to re-brand VWB into a company with en-thusiastic and highly motivated employees in order to achieve high performance. The strategy was based on changing the management approach for working with employees in order to establish a new culture that could sustain...
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...develops and deploys a strategy map and Balanced Scorecard to accomplish a turnaround and cultural change after eight consecutive years of financial losses and market share declines. The team uses the strategy map to align financial and project resources to the strategy, and to motivate its more than 20,000 employees by communicating the strategy in multiple ways and installing reward and recognition programs. It also establishes new programs to align the extensive networks of suppliers and dealers to the strategy. But after a sharp decline in sales triggered by the global financial crisis of 2008, the executive team faces a dilemma: should cut back production levels and funding for strategic initiatives until sales recover, or should it continue to invest for the future? Balanced scorecard to monitor and anlayze the root cause of the problems: market share decline & financial losses BSC was based on strategy map which had power to decode high-level objectives into operational terms that mobile their employee teams Key problem: cut back production levels and funding for strategy initiatives until sales recover OR should it continue to invest for future https://www.scribd.com/doc/216303578/Volkswagen-Do-Brasil Question 1,2, 4, 5, 7 Quetsion 1 Internal & external problems: External: * vast decrease in domestic market share * appreciation of Brazilian currency & increases in local labor and raw materials -> leads to that VWB struggled sticking...
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...Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard Q&A Case 3 A Business case Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In MODMGT2 K33 Submitted To: Mr. Aaron Escartin Submitted By: Apolinar, Jeneva Marielle Arvesu, Franz Nicole Aurelia, Sarah Mae Basquinas, Judith Bondoc, Maureen Felicia April 4, 2014 1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? Upon Thomas Schmall’s appointment as CEO of Volkswagen do Brasil in 2007, he and his management team had to reverse eight consecutive years of market share declines and financial losses. According to Carsteen Isensee, the situation when he arrived in 2007 was a period of cutting costs and workforce reduction, low corporate morale, and the constant threat of having the unprofitable operations shut down by the head office located in Germany. 2. Describe VWB’s new strategy. Schmall, the appointed new CEO of VWB, wanted to cease the reliance of the company on cost reduction, employee layoffs and capacity downsizing. He wanted to aggressively re-brand VWB into one with enthusiastic and highly-motivated employees who continually introduces high-performance, innovatively-designed cars and light vehicles. A new culture was to be instilled wherein employees would solve problems as they arose, eliminate defects and reduce health and safety incidents...
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...Change for Strategy Execution Dr. Robert S. Kaplan Baker Foundation Professor, Harvard Business School Executing strategy: Senior executives’ #1 issue The Balanced Scorecard: The Central Component in a New Strategy Execution Management System Private Sector Organizations Financial Perspective "If we succeed, how will we look to our shareholders?” Customer Perspective "To achieve our vision, how must we look to our customers?” Process Perspective "To satisfy our customers and shareholders, at which processes must we excel?” Non Profit and Public Sector Organizations Mission (Customer) Perspective “How do we have a social impact with our citizens/constituents?” Support Perspective “How do we attract resources and authorization for our mission?” Process “To have a social impact and to attract resources and support, at which processes must we excel?” Learning & Growth “How do we align our intangible assets to improve critical processes?” Learning & Growth “How do we align our intangible assets to improve critical processes?” Financial “How should we manage and allocate our resources for maximum social impact?” 3 Palladium Balanced Scorecard Hall of Fame for Executing Strategy® : By Industry 2000-2010 The Management System for Strategy Execution Links Vision and Strategy to Operational Excellence 2 TRANSLATE THE STRATEGY DEVELOP THE STRATEGY • Mission, Values, Vision • Strategic Analysis • Strategy Formulation 1 • • • • Strategy Map / Themes...
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...Harvard College Align employees to the strategy: Four HR processes 1. Create Strategic Awareness Communicate Communicate Communicate 2. Align Personal Goals Personal Scorecard Make Strategy Everyone’s Job 3. Provide Necessary Skills Strategic Job Families Strategic Readiness 4. Align Personal Incentives Variable pay Team based You need a formal process to improve workforce readiness. Strategy should be linked to existing HR programs for performance management. How do we align employees to the strategy? 1. Create Strategic Awareness Communicate Communicate Communicate 2. Align Personal Goals Personal Scorecard Make Strategy Everyone’s Job 3. Provide Necessary Skills Strategic Job Families Strategic Readiness 4. Align Personal Incentives Variable pay Team based Communicate “seven times seven different ways” to make strategy everyone’s job Personal relevance brings the strategy to life Sustained communication uses different channels to get the message across • Leadership meetings • CEO random visits to employees • Dear Colleague Quarterly Letter in Mellon News • Learning lunches & informal discussions • Intranet • Working groups facilitated by HR • Staff briefings Source: Presented by Jack Klinck, Vice Chairman, Mellon Europe at BSCol European Summit, June 2005 4 VW do Brasil CEO demonstrates commitment to using the strategy map and scorecard as his strategy management system Mr. Thomas Schmall...
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...Policy Course Time / Location: R 7:20 – 10:00 pm / BRN 205 Instructor / Office / Phone: Taewan Kim, PhD / Brennan Hall 425 / 941-4166 Office Hours: TR 2:30 – 4:00 pm or by appointment e-mail: taewan.kim@scranton.edu Course description This is the capstone course. It is designed to integrate knowledge gained from other business courses and apply that knowledge to policy and strategy development in situations facing general managers and business leaders. Emphasis will be placed on situational analysis, strategy formulation, and strategy execution at all levels of the organization. Course objectives 1. Understand Strategic Management as a process and be able to apply its principles to diverse business situations. (Linked to MBA’s Learning Goal #1. B) 2. Develop skills necessary to analyze the competitive situation facing various types of economic organizations; isolate important sources of competitive advantage and disadvantage; generate and make decisions among various strategy alternatives; plan for successful execution of selected strategies; and persuasively communicate these analyses and recommendations to others within the organization. (Linked to MBA’s Learning Goal #3. A, B, and C) 3. Gain experience with the case analysis method as applied to business situations. (Linked to MBA’s Learning Goal #3. C) 4. Gain experience working in teams to solve business problems. (Linked to...
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...Shinepukur CeramiCS limited annual report 2010 Each of our activities must benefit and add value to the common wealth of our MISSION society. We firmly believe that, in the final analysis we are accountable to each of the constituencies with whom we interact; namely: our employees, our customers, our business associates, our fellow citizens and our shareholders. Year of Establishment (registration): 1997 KEY DATA Commercial Production: 1999 Status: Public Limited Company First Export: 1999 Business Lines: Manufacturing, Marketing and Exporting of Bone China and Porcelain tableware. Overseas Offices & Associates: USA and UK. Current Export Markets: USA, Canada, UK, Germany, France, Italy, Sweden, Norway, Poland, Turkey, Japan, Australia, UAE, Brazil, India, Chile, Egypt, Russia etc. Authorized Capital (Taka): 5,000 million Paid-up Capital (Taka): 966.34 million Number of Shareholders: Over 24,000 Stock Exchange Listing: 2008 Number of Employees: 3,000 HigHligHts: 2010 New Customers Villeroy & Boch (GERMANY) CRU International (USA) Bitossi Home (ITALY) Koleksiyon (TURKEY) Zeiny Center (EGYPT) Les Classiques (INDIA) Achievements Upgraded to ISO 9001:2008 Awarded ‘Superbrands’ Financials Net sales increased by 13.62 % to Tk. 1,926.74 million Profit before Tax increased by 22.42 % to Tk. 305.07 million Earnings Per Share (EPS) increased by 47 % to Tk. 2.62 Contents A Glance on : Shinepukur Ceramics Ltd. Corporate Directories Down to the History...
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