...The Volkswagen Emission Scandal Introduction The mistrust between the Volkswagen Company and their customers developed after the scandal associated with the incorrect emission of data and cheating of the system unfolded. The scandal occurred on the eighteenth of September 2015 when it was found that the company had made a car with a turbo that released emission directly into the real word atmosphere. The allegations were genuine and were proved by the Environment Protection Agency in the United States (EPA) (Hotten, 2016).The chief executive of the company said that the blame has been widely attributed to various software engineers in the company who had ultimately done it for unknown reasons. Speaking during a committee the chief apologized and promised that strict investigation will be undertaken and those found liable brought to book. He said that the company is always and will always be committed to making the world a better place through the manufacture of quality automobiles for the consumers although some of her workers were up to violate their mission. The chief further clarified that the car in question will need more software update so as to meet the US pollution rules (Hotten, 2016). Implication on Workers ...
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...Contents Introduction 第一章 Company Background of Volkswagen 1.1 Mission Statement of Volkswagen 1.2 Corporate Strategy of Volkswagen 1.3 Organizational Structure of Volkswagen 1.3 History of Volkswagen 第二章 Current State of Affairs of Volkswagen 2.1 Business Situation of Volkswagen 2.1.1 Volkswagen Passenger Cars 2.1.2 Audi 2.1.3 SEAT 2.1.4 SKODA 2.1.5 Porsche 2.1.6 Bentley 2.1.7 Bugatti, Lamborghini 2.1.8 Ducati 2.1.9 Volkswagen Commercial Vehicles 2.1.10 SCANIA 2.1.11 MAN 2.2 Financial Analysis of Volkswagen 第三章 Case Study of Volkswagen Emission Scandal 3.1 Case Situation 3.2 Cause of Incident 3.3 Consequences for Volkswagen 第四章 Business Analysis of Volkswagen 4.1 SWOT Analysis 4.2 结论（黑体小二） 注释（黑体小二） 参考文献（黑体小二） 附录（黑体小二） 谢辞（黑体小二） Abstract Environmental protection is becoming more and more important throughout the world. So the automobile industry tries to develop vehicles with good and positive emission output. In my thesis paper I will write about the Volkswagen emission scandal which happened this year in September. The Volkswagen Group is one of the biggest automobile manufacturer in the world. However Volkswagen manipulated the emission output through so called defeat devices. Through this fraud Volkswagen lost trust and faith of customers, employees, suppliers, investors, buyers and many other groups. I will try to analyze and explain the reasons why Volkswagen came to this situation. ...
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...The Volkswagen Emission Scandal Introduction The mistrust between the Volkswagen Company and their customers developed after the scandal associated with the incorrect emission of data and cheating of the system unfolded. The scandal occurred on the eighteenth of September 2015 when it was found that the company had made a car with a turbo that released emission directly into the real word atmosphere. The allegations were genuine and were proved by the Environment Protection Agency in the United States (EPA) (Hotten, 2016).The chief executive of the company said that the blame has been widely attributed to various software engineers in the company who had ultimately done it for unknown reasons. Speaking during a committee the chief apologized and promised that strict investigation will be undertaken and those found liable brought to book. He said that the company is always and will always be committed to making the world a better place through the manufacture of quality automobiles for the consumers although some of her workers were up to violate their mission. The chief further clarified that the car in question will need more software update so as to meet the US pollution rules (Hotten, 2016). Implication on Workers ...
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...Table of Contents Introduction ............................................................................................................................................ 2 Volkswagen emission scandal ............................................................................................................. 2 Internal & External Impact of Volkswagen scandal ........................................................................... 3 1. Internal ................................................................................................................................... 3 2. Car Industry ........................................................................................................................... 3 3. Shareholder ........................................................................................................................... 4 Corporate Social Responsibility Report of Volkswagen .................................................................... 6 General Problem with Corporate Social Responsibility Report ........................................................ 8 Implementing Corporate Social Responsibility ................................................................................ 10 Conclusion ........................................................................................................................................... 11 Appendix .......................................................................................
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...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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...Questions about the Volkswagen Scandal: Volkswagen is embroiled in one of the biggest corporate scandals of recent years. The German car maker has been installing “defeat devices “– software that allows cars to cheat in emission tests, making them appear than they actually are. What is Volkswagen accused of? Volkswagen’s software allowed it to beat the tests in a lab, but when on the road with emissions controls switched off, cars would pump out nitrogen oxide (NOx) at up to 40 times the legal limit. Crucially, the software “knew” when it was being tested, allowing it to switch emissions controls on and off. The Environmental Protection Agency (EPA) found that many VW cars being sold in America had devices in diesel engines that could detect when they were being tested. The EPA’s findings cover 482,000 cars in the US only, including the VW- manufactured Audi A3, and the VW brands Jetta, Beetle, Golf and Passat. Who is to blame? It’s not yet clear who is responsible for fitting the cheating software. Martin Winterkorn, the German company’s chief executive, accepted responsibility when he resigned, but denied any wrongdoing on his part. Prosecutors in Germany have opened a criminal probe into Mr. Winterkorn. Mr. Winterkorn is replaced by Matthias Mueller, the boss Porsche. Where did the incident happen and why did Mr. Winterkorn resign? This scandal has happened in the United States of America. Mr. Winterkorn denied having any knowledge of the emissions cheating when...
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...1. Climate change. Volkswagen is facing sever environmental and climatic issues since its co2 emission scandal came into picture. The company using ‘defeat software’ to cheat the norms of emission was one thing that has led to many reparation losses as well as devaluation of the stocks of VW. Therefore the company now wants a sustainable climatic policy in line with EPA so that such kind of challenges are not faced in future. 2. Noise, health, biodiversity & Environment impact The company’s emission scandal has led a great environmental impact. The overall impact would be less but if you consider the impact in Europe alone than it is significant. On September 18 2015 EPA found out that Volkswagen uses an algorithm in its diesel engines which...
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...The benefits of cost-benefit analysis to improving business decisions Cost-Benefits Analysis (CBA) is the process of using theory, data, and models to study products, exchanges, and activities for measuring relevant ideas and alternative solutions in order to support decision-makers in choosing the most appropriate alternative. This paper explores how CBA may best be used, focusing on the effectiveness of CBA during the early phase of a program life-cycle in ensuring that there are worthwhile alternatives in making investment decisions. It also examines the measures and the methodology used to develop a CBA, addresses the accuracy and reliability of CBA, and identifies techniques available to support decision-making in the early phase of a program’s life-cycle. It also notes, however, that because not all costs and benefits can be quantified, measures other than CBA should also be considered in making business decisions. The effectiveness of CBA lies in its ability to provide increased understanding of the consequences of proposed public programs. CBA must be understood as one means to support decision-makers in making the best decisions for the public good. The value of CBA will vary with the importance of mandates, policies, and regulations. For example, CBA offers a well-established and tested approach, supported by substantial research, for identifying and assessing corporation. A CBA can enable decision-makers to make prioritized decisions about business programs. It...
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...How should a worldwide auto maker regain trust after brands disaster? A case study on Volkswagen Group Daniel HARMAN 620019565 dh325; Jeffery YIM 620022358 jy28; Ka Ying MAN 640042125 km499; Wing Tim MAN 650052933 wm259; YuPeng Huang 650003422 yh379; Zhihan GUO 650058943 zg234 Outline Emissions scandal of Volkswagen Group and its importance Reasons for comprehending the scandal Analysis of the case Implications for international enterprises Recommendation References Emissions scandal of Volkswagen Group and its significance Emissions scandal of Volkswagen Group ● ● ● Pass emissions tests by cheating Have to recall 11 million of carsestimated cost would be €6.5 billion Share price dropped from €162.40 on Sep 18 to €106 on Sep 22 Volkswagen AG VOW.DE (XETRA) in Euro Source: Reuters (2015) Reasons for comprehending the case Source: Volkswagen (2014) Volkswagen Sustainability 2014 At A Glance, p34 Reasons for comprehending the scandal ● United States is the second largest auto market ● Volkswagen Group is the largest auto maker ● Many international firms face brand crisis and should know how to renounce Analysis of the case Institution based view The leading perspective in international business suggests that ● Firms’ performance is determined by the institutional frameworks to a great extent. Institutional transitions ● Fundamental and comprehensive change introduced to the rules of game ...
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...Credibility in Business Communications Volkswagen is the latest car manufacturer to be caught in the act of purposely manipulating emissions tests results in some of their vehicles. Over the years, several other manufacturers including General Motors, Ford and Honda have also been exposed for the same unethical behavior (Biesecker, 2015). In Volkswagen’s case, the long-term impact to their brand, reputation and credibility is further compounded because their cheating was actually uncovered in 2014, but the organization continued to manufacture cars with the faulty software, and intentionally withheld their trickery from consumers who thought they were buying environmentally friendly vehicles. It wasn’t until the scandal became public last month that Volkswagen finally came clean (Plungis and Hall, 2015). In the United States alone, Volkswagen will have to endure both state and federal investigations, as well as the additional scrutiny of congressional hearings, but the greatest cost Volkswagen will have to pay is the long-term impact to their brand, reputation and credibility. Volkswagen is one of the top automobile manufacturers in the world, with worldwide sales reaching 5.04 million vehicles, from January to June of this year, surpassing Toyota who regularly has held the top sales position (Harrison, 2015). The company now finds itself in the unenviable position of having to restore consumer confidence. The scandal was inadvertently discovered in 2014 when a...
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...Park) December 7, 2015 Business Project V Abstract Volkswagen is the 2nd largest automobile manufacturer in the world (Rieger, 2013). They have attained this position by providing a wide range of vehicles and services to fit all consumer needs. Their main competition (Toyota) targets the same customer base which makes it important for VW to find new ways of reaching new customers while at the same time maintaining their loyal customer base. The company is currently at a cross road. They are currently facing the worst crisis in its history. Solutions will need to be made in regards to lowering CO2 emission levels in their engines (Gardner, 2015). These solutions will be a huge financial investment by the company. Initially, this investment will set them back as a company. But, if done correctly, it will allow the company to flourish over the next 50 years with the new expansion opportunities in India and Brazil. Three Things That I Did Not Know About Volkswagen Over the course of this ten week Business class, I have learned so much in regards to Volkswagen. The three specific topics that I was not aware of before completing research are as follows: * Over the years, Volkswagen has shown to have a very aggressive promotional campaign. This has been attained by image based advertising. They have found that when customers see the “VW” logo, it signifies character and reliability. Because of this, Volkswagen has developed a strong customer loyalty base, which has...
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...Scandals are actions, incidents or events regarded as morally degraded or legally wrong causing general public outrage, repercussions at a global scale and casting a shadow incessantly. Whilst scandals can be considered as a blast of unhallowed interferences ruffled with a smooth stream of domestic felicity, it must be acknowledges that scandals aid as whistleblowers, self-evidently exposing the delinquency unparalleled to any speakers or reformers. Reformers and speakers urge earnestly to improve an existing institution, law, and practice by alteration and correction of abuses and malpractices. But their practices need persistent reinforcements and continuous monitoring to ensure peace and pleasantness provided their motives are unbaised and true. For example, Martin Luther who was hoping to start a limited discussion to reform a specific abuse within the church ended up unleashing a huge movement the irrevocably altered the nature of the church as a whole....
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...Ethical marketing standards for business are important, particularly in the age of the Internet where information is accessible to anyone and may remain online indefinitely. False advertising is a familiar issue, and most business people are aware of the risk of exaggerated product claims, but the main implication is that because of the advertising “watchdogs”, companies indulging in this practice may be caught and punished. Other issues with ethical implications are not as clear-cut, and the consequences, especially for the consumer, may be serious. Vulnerable Audiences In the same way that the use of racial or ethnic groups in advertising can serve to stereotype them, the absence from using these groups in marketing in a multiethnic society can create image and identity problems among those that are excluded. Marketing aimed at children, in particular, is fraught with the risk of causing ethical implications. The targeting of children with fast food and unhealthy snacks can lead children to not want to eat anything else and result in childhood obesity. Only yesterday, the SMH reported the following: “The manufacturer of Nurofen faces millions of dollars in fines but will be allowed to sell painkillers marketed as targeting specific types of pain for another 12 months after a court found they were misleading to customers. The Australian Competition and Consumer Commission took Reckitt Benckiser to the Federal Court in March over products in its Nurofen specific-pain range...
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...THE VOLKSWAGEN EMMISSION SCANDAL The Volkswagen emission scandal shocked the entire world when the German car was charged for violating the Clean Air Act by the United States Environment Protection Agency. It’s turbo diesel models were found to be programmed with a ‘defeat device’ emitting nitrogen oxides for 11 million Volkswagen diesel vehicle and responsible for nearly 1m tonnes of air pollution every year which was almost 40 times higher than the prescribed limits . THE Volkswagen scandal has made a huge dent in Germany's economy .The company’s chief executive, Martin Winterkorn regretting deeply said that they cooperate fully with transparency and urgency, to establish all of the facts of this case. Volkswagen is expected to face fines of up to $18bn in the US with European countries. The broader concern for the German government is that other car makers could suffer fallout from the Volkswagen disaster. The German auto industry remains an "important pillar" with roughly 775,000 people worked in the German automobile sector nearly 2% of the whole workforce and exports worth more than €200 bn.The company’s shares fell 10% as the German stock market and some €25bn - of the company’s stock market value had already been lost . Solution to this burning issue can be that Volkswagens should work on the scheme for compensation and Support the dealerships by investing in personnel and equipment and also Offer affected TDI owners a compelling reason to stay with the brand...
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...on the part of the writer. Institutional Investors The major institutional investors of Volkswagen are from Germany. The voting rights distribution of shareholders is listed below. Current Voting Rights Distribution* (as at December 31, 2014) | 50.73% | Porsche Automobil Holding SE, Stuttgart | 20.0% | State of Lower Saxony, Hanover | 17.0% | Qatar Holding | 12.3% | Others | (Source: http://www.volkswagenag.com/) The company's top five preference shareholders have lost around 1.7 billion euros since September 22th, while its top ordinary shareholders, dominated by German sports car brand Porsche, the state of Lower Saxony and the Qatar Investment Authority sovereign wealth fund, have lost around 11 billion euros during this period(Reuters,2015). As the biggest shareholder of Volkswagen, Porsche Automobil has suffered a stock loss of 9.03 billion euro since the news of the emissions scandal broke (MarketWatch, 2015). The stock price of Porsche has slumped. （Source：Yahoo Finance） However, Volkswagen has been cooperating with its major institutional investors for years and has a close relationship among them. Although institutional investors suffered a great loss, Volkswagen still enjoy a high credibility among them. For those shareholders, they are concerned about the following items: * Volkswagen’s reaction to public, * Total estimated loss from this scandal, and * The adjustment of the management. Individual Investors Describe who this audience...
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