...PRINCIPLES OF MANAGEMENT Case Study Sound Planning at Volkswagen? Volkswagen AG, based in Germany, is one of the largest automobile manufacturers in the world. Over time, Volkswagen has prospered while manufacturing reliable and affordable cars such as the Jetta and the Golf for the average consumer. In fact, Volkswagen literally means “the people’s car.” Despite Volkswagen’s past success as a company that produces, mid-priced automobiles, Bernd Pischetsrieder, Volkswagen’s new CEO, wants to modify the company’s direction. During a recent study of the automobile industry, Volkswagen’s executives attempted to better understand the company’s product line. The executives listed all of the different model segments in the automobile industry such as “big SUVs” and “hatchbacks” and compared the list against all of the automobiles that Volkswagen produces. Study results clearly showed that Volkswagen did not offer products in the luxury market to compete with other German automobile manufacturers such as BMW and Mercedes-Benz. Although Pischetsrieder already knew about Volkswagen’s lack of luxury car product, study results caused him to think. In the past, management at Volkswagen had opted to focus simply on the “averaged-priced” automobiles. Past management realized that the company made less profit on each average-priced” car sold, but knew that automobile manufacturers typically will sell more averaged-priced automobiles than higher...
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...1. Transcript of volkswagen do Brazil German multinational automotive Members: Natalia Mejia Andrea Rangel Karen Osorio Gustavo Victoria 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...
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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 Passat was designed in a way that it will stand out and do well in its competition with the Toyota Camry which were also be launched at the same time. Knowing that Camry is the best-selling car in the past 13 years, VW was challenged and thought that they should get out ahead of this launch and win consumers’ interest ahead of the Camry. Therefore, VW came up with their key objectives in achieving their sales goals – To get the consumers talking about the new and redesigned Volkswagen Passat, to exceed the key measures in Nielsen’s post-game study, and to get the consumers’ interest 7-months earlier before it will be on sale. VW came up with the big idea that “The Volkswagen Passat can help you lead a richer life.” One of the reasons for this idea was the fact that car users want something more and beyond normal transportation yet meets their budget, but it is more about the truth that these buyers want to have a car that can help them have a richer life by having the gratification of affording a car for themselves and their families from their hard work – giving them some sort of a status. They chose the 2011 Super Bowl to announce the new Volkswagen Passat and I think that was a very smart thing to do considering that it is the biggest stage in US which will correspond to an enormous number of audiences. They also made an advertisement entitled “The Force” which clearly used one of the product’s features – the keyless remote start. They involved in the story...
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...Volkswagen Case 1 The decision that Volkswagen made was a strategic decision. The implementation of VWgroupsupply.com and IPAD concerning supply chain management of both direct and MRO materials is a major initiative in the company’s information technology. The implications of this decision will have an effect on how the business is run, both strategically and tactically. Due to the widespread nature of this decision, it was likely made at the executive level. 2 The advantage to Volkswagen developing its own B2B site is that it streamlines the process of acquiring parts for the vehicles and managing the associated activities. This allows the employees to spend more time performing strategic actions such as negotiating better prices with the suppliers rather than the tactical management of parts. This system, presenting all info in one dashboard, allows the managers to make better decisions to give the firm a competitive advantage. Volkswagen chose this to the alternative of using a system that is currently on the market. Although purchasing and using currently available systems would have had lower start-up costs, the time saved by creating a single, customized system outweighs the additional start up cost in the long run. 3 This marketplace helps Volkswagen reduce Porters threats to competitive advantage by reducing the bargaining power of suppliers. Volkswagen will be able to access all available products and prices in one database and dashboard giving them the...
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...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 to their export-led strategy & maintainaing production minimum * VWB couldn’t increase prices on shipped products, because of stiff competition -> leads to that excess capacity costs wouldn’t be covered by insufficient export margins Internal * Inefficient processes on shop-floor and administration, like...
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...Indicadores de Desempenho na Empresa 1. Quais os desafios que Thomas Schmall tinha a frente quando se tornou CEO da VW Brasil? Além do cenário competitivo do mercado automotivo no Brasil ter mudado muito nos anos anteriores à nomeação de Schmall como CEO da VWB por conta de forte atuação de concorrentes asiáticos, a VWB apresentava desafios internos relevantes que precisavam ser superados para atingir o objetivo final, que era transformar a empresa em líder de mercado, inovação, vendas e lucratividade de forma sustentável. Seus principais desafios eram: * Formar uma equipe de alto rendimento * Reposicionar a VWB em uma empresa com funcionários motivados * Desvencilhar-se da postura burocrática e conservadora da empresa 2. Qual é a nova estratégia da VWB? Thomas Schmall e sua equipe buscaram mudar o relacionamento com funcionários, fornecedores e concessionárias de forma a mudar a cultura burocrática e conservadora instalada nos anos anteriores por conta de crises no setor. Devido à experiência anterior de Schmall e Senn, enxergaram então no BSC uma ferramenta capaz de mudar a mentalidade na empresa. Era uma forma de comunicar os objetivos em todos os níveis organizacionais. Entretanto, isso exigiria alto nível de comprometimento da alta direção. 3. Como o Mapa da Estratégia e o BSC ajudam a Schmall e Senn na implantação da nova estratégia? Quais as forças e as fraquezas do BSC e sua implementação? O BSC pode ser uma poderosa ferramenta para...
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...Volkswagen in America : Managing IT Priorities Introduction: Volkswagen in America is a case which deals with the major issue of projects prioritization and the other issues are budgeting and funding requirements. A change for good in an organisation is necessary to keep it going but sometimes it leads to disappointment. In this case, Volkswagen has recovered by introduction on new models and changes in the organisation and then they recovered by introducing the product diversification and it was successful then it as there was insufficient IT knowledge it started e-Business but IT functions weren’t performing optimally. To overcome this new IT department was established. Dr. Uwe Matulovic, the chief information officer had to face the challenge of creating the IT environment in VWoA and introduced the Process of Prioritization and ‘Business Process, Technology and Organisation’(BPTO). The process of prioritisation was introduced which was logical and managed all the sectors of the organisation. This process is based on the goals of the enterprise. This led to the problems: a) Business units to create a project associating with enterprise goals. b) The business units were trying to influence the project as they wanted their unit to be funded. c) Most of the business units were not considered. d) The projects which were globally important were not funded. e) Most of the employees were self centered they were only thinking about their own business units instead of...
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...Executive summary Volkswagen is one of the biggest German automobiles manufacturing company, which operate all over the world. The main aim of the company is to become the first automobile manufacturer by 2018 and India became one of the key “element” in this strategy, since India the second fastest growing automobile market. Volkswagen India operates since 2001 when they presented Skoda brand to the Indian car market. Methodology For the following research was implemented realism philosophy, which means that both positivism and interpretivism approaches were used. The main tool, which was used in this particular research, was secondary data, as India country was chosen as a research area, so collecting primary data was impossible. Mainly the annual reports, journal articles and in some cases books were used. As India was chosen for the research, there was no ability to conduct the survey and use primary data. Situation analysis A. The internal environment Review of marketing goals and objectives * 15% annual growth rate for the next five years * To bring new technologies in car market of India * To increase market share twice, to 7% by 2018 * To explore India car market with new dealerships * Raise brand awareness of the company in India It should be mentioned that in order to increase quantity of customers and prove that Volkswagen is company Indian people could trust, Volkswagen introduces Polo GT TDI in 13 September 2013 with remark “German...
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...Comparative analysis of 4 brands of small segment cars Brands name: Maruti Swift, Volkswagen Polo, Chevrolet Beat, and Tata Indica Vista. * Maruti swift: it is the India’s largest car maker. And well known for offering pocket friendly cars, which are packed out with numerous features that make the car worth every penny. Maruti India is one of the pioneers of the automobile revolution in India. * Chevrolet beat: The Chevrolet Beat is a small, convenient car that offers looks that set it apart, great drive-ability, compact size and a stunning value-for-money proposition. Available with a choice of petrol and diesel engines, the Beat caters to a wide audience. Apart from being frugal, the Beat's USP lies in its design and futuristic interior styling as well. * Tata vista: The Tata Indica is a supermini car produced by the Indian manufacturer Tata Motors since 1998. It is the first passenger car from Tata Motors and it is also considered India's first indigenous developed passenger car. * Volkswagen polo: The Volkswagen Polo is a supermini car produced by the German manufacturer Volkswagen since 1975. It is sold in Europe and other markets worldwide in hatchback, saloon and estate variants. Analysis on the basis of product, price, place, promotion PRODUCT: * Tata Indica Vista * Maruti Swift * Chevrolet Beat * Volkswagen polo 1. Volkswagen polo: Highlights Engine capacity 1199 cc Fuel Economy (ARAI) ...
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...w rP os t S W12772 WAREHOUSING STRATEGY AT VOLKSWAGEN GROUP CANADA INC. (VGCA) op yo Adam Bortolussi wrote this case under the supervision of P. Fraser Johnson solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; email cases@ivey.uwo.ca. Copyright © 2012, Richard Ivey School of Business Foundation Version: 2012-03-05 tC It was Tuesday, January 18, 2011, and Kym Meisner, director of warehousing and logistics at Volkswagen Group Canada Inc. (VGCA), was reviewing a presentation by the sales and marketing team regarding the five-year growth plan for both the Volkswagen and Audi vehicle brands in Canada. In her 20 years working for VGCA, Kym had never seen such aggressive growth targets attributed to new car launches, product...
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...priorities at Volkswagen of America? The new process for managing priorities at Volkswagen of America provides more transparency and reduces duplicity in projects compared with their old method. Volkswagen established a Project Management Office (PMO) and required business units to prepare the list of proposed projects at the beginning of the year. This was a great first step in highlighting the similarities amongst the projects prior to budgets being set and work being done. It also identified the dependencies of projects on one another and allowed some to be de-scoped for subsequent years. In turn, this reduced the estimated cost from $210 million to $170 million. In phase 2, business units prepared a more formal proposal with information such costs, benefits and how the project links to a business/enterprise goal. While not embraced entirely by some of the groups, this was a good method for aligning IT projects with business strategy. By documenting a more formal proposal, Volkswagen was able to use this detailed information to help narrow down and prioritize projects. During phase 3, executives were asked to indicate the top three projects for the year. These would most likely be applied to the majority of the budget and any other projects would have to figure out a way to get funding or place projects on hold for a year. This more organized structure of prioritizing projects is substantially better than throwing darts in the dark. This process allows Volkswagen to make informed...
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...Introduction: In 1937, the Volkswagen was born in German it is an automobile company, through the 70 years of development it get the public favorite cars of all over the world. The company of Volkswagen means mass consumers can use and buy it; it has ten brands with them own enterprise. Such as Audi Porsche Skoda Bentley Lamborghini Bugatti Volkswagen Skoda Seat, the Volkswagen group’s portfolio is made up with nine successful brands that excite one billion of customers around the globe. In 2010 that groups further sharpened the individual, distinctive image of each individual brand. Focus on American and china most of customers are usually like to buy the car of Volkswagen. In china the company publicity their own culture and across the advertisement to tell the public it is contains one hundred years of brand. And the products high-end brand image at present was most consumers are recognized. Because official business is widely used the car of audi also gives the Volkswagen to promotion their brand in public mind. Analyze: Marketing mix of the Volkswagen in the international The brand of the Volkswagen is the successful marketing in the world. It used the 4ps in the different countries. Covering the international market, subsequent the most important concerns the implementation by touching the 4ps: product price place promotion. It changes the standardization and adaptation in the marketing Product: The Company concerns about the development and renew the product, cause...
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...Corporate Corruption: Scandal at Germany-based Volkswagen Introduction Corruption is “the misuse of entrusted power for private gain (Deutsche Welle).” Misuse of power occurs when people in positions of power willfully deviate from established procedures for their personal gain, at the expense of public welfare. Europe’s biggest automobile maker, Germany’s Volkswagen AG, became embroiled in corruption scandals in the summer of 2005. German state prosecutors confirmed on June 30, 2005 that they had opened an investigation into possible fraud and corruption by managers and labor representatives at the car giant (Edmondson p 52). Uwe Dolata, spokesman for the German Association of Detectives (BDK) and an expert in white-collar crime, says, “Corruption is so inherent in German business that the police have created a special division to deal with it (Deutsche Welle).” The Volkswagen scandal case is a classic illustration of what happens when there is failure of corporate governance. History of Volkswagen The word “Volkswagen” means “people’s car”. In Germany there had been many efforts to create simple cars that everyone could afford, but none had met with much success. Even if they were simple enough for the average person, the cars still ended up costing more than the average worker’s yearly wage. In 1930, Ferdinand Porsche set up an automotive design company in Stuttgart, which became known as the Porsche Buro. After much trial and error and more than a few...
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...20 NOV 2010 VOLKSWAGE NBHUBANES WAR MARKET SURVEY ON VOLKSWAGEN SUBMITED BY: - GAURA V KUMAR PANDEY Of Regional College Of Management Autonomous, Bhubaneswar Toward The Partial Fulfillment Of Requirement For The Award Of The Degree Of ‘Master Of Business Administration’. UNDER GUIDENCE OF CORPORATE GUIDE SUBHASH C. NATH AAKASH DEEP ASST. PROFFESER SERVICE MANAGER (REGIONAL COLLEGE OF MANAGEMENT)S (BHARAT MOTORS LTD.) | Gaurav Kr. Pandey 1 TABLE OF CONTENTS Chapter no. Page no. Chapter 1 01-06 Includes INTRODUCTION TO THE STUDY.............................................. 02 EXECUTIVE SUMMERY............................................................ 03 INTRODUCTION TO AUTOMOBILE INDUSTORY....................... 04 Chapter 2 Includes 07-34 LITRATURE REVIEW................................................................ 09 INTRDUCTION ABOUT VOLKSWAGEN GROUP........................ 16 DIFFERENT SUBSIDERIES OF VOLKSWAGEN.......................... 18 HISTORY OF VOLKSWAGEN GROUP........................................ 19 INTRODUCTION ABOUT BRAND VOLKSWAGEN...................... 21 HISTORY ABOUT BRAND VOLKSWAGEN................................. 22 INTRODUCTION ABOUT VOLKSWAGEN INDIA......................... 29 ABOUT THE DEALER - BHARAT MOTORS................................. 33 Chapter 3 35-70 Includes OBJECTIVE OF STUDY............................................................. 36 RESEARCH ...
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