...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...
Words: 1152 - Pages: 5
...ANSWERS 1. What 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...
Words: 924 - Pages: 4
...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...
Words: 3753 - Pages: 16
...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...
Words: 818 - Pages: 4
...Internet Info A new management team at VW do Brazil 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...
Words: 340 - Pages: 2
...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, CEO of Volkswagen do Brasil addressing...
Words: 3979 - Pages: 16
...Business 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. ...
Words: 2765 - Pages: 12
...venture capital, pensiones y otros servicios complementarios. La parte bancaria del sector se desenvuelve mejor en un ambiente macroeconómico de bajas tasas de interés, inflación controlada y crecimiento sostenido ya que los bancos ganan de poder obtener recursos con bajo costo y prestarlos con ganancia. Una economía fuerte es una economía que requiere créditos para la inversión y el consumo, lo que beneficia al sector bancario. Datos de la industria en México * El sector financiero representa 4.8% del PIB mexicano al cuarto trimestre del 2011, de acuerdo al INEGI. * Se cuenta con sólo una bolsa de valores, la cual contaba con una capitalización de 729B de USD al término de 2010. Es la segunda más grande de Latinoamérica después de Brasil. * De acuerdo a BBVA Research el crédito bancario es la segunda fuente de financiamiento para las empresas después de las aportaciones de los dueños. El 81.3% de las empresas que obtuvieron crédito bancario en 2010 son microempresas de 10 personas o menos, existe un gran potencial de penetración del crédito. Se prevé un crecimiento real del 9% en el crédito al sector privado para el 2012. * De acuerdo a Euromática, el segmento de crédito autmotriz es el que...
Words: 5283 - Pages: 22
...Analysis of Marketing Strategy of Redbull in India STUDENT’S CERTIFICATE Certified that report is prepared based on the term paper undertaken by me in “analysis of marketing strategy of redbull in indiaunder the able guidance of Dr..Sunit Balani in partial fulfillment of the requirement for award of degree of B.Com (H) from Amity University, Uttar Pradesh. Date – 31-10-2014 Harsh Kumar Lalwani Dr..Sunita Balani P rof.V.P.Sahi (Student Name ) (Faculty Guide Name) (Director ABS) FACULTY CERTIFICATE Forwarded here with a term paper report on “general marketing strategy of red bull” submitted by Harsh Kumar Lalwani Enrollment No.A7004613066, student of B.Com (H) III Semester (2013-2016). This project work is partial fulfilment of the requirement for the degree of B.Com (H) from Amity University Lucknow Campus, Uttar Pradesh. Dr. Sunita Balani Amity University, ABS Lucknow Campus ACKNOWLEDGEMENT I wish to express my sincere gratitude to Prof.V.P.SAHI, Director ABS, Amity University Uttar Pradesh, Lucknow for providing me an opportunity to do my project on“Marketing Stratey of red Bull”. I sincerely thank my faculty guide Dr.. Sunit Balani(ABS), Amity University Uttar Pradesh, Lucknow for the guidance and encouragement in carrying out this term paper. Last but not least I wish to avail myself of this opportunity, express a sense of gratitude and love to my friends and me beloved parents for their manual...
Words: 4751 - Pages: 20
...N . 4 06 10 12 14 Board of Management/Supervisory Board Report of the Supervisory Board The Board of Management Letter to our Shareholders Group values Financial Communication 18 Volkswagen share 24 Value-based management 26 Corporate Governance 30 40 46 50 53 58 60 66 Management Report Business development Net assets, financial position and earnings performance Volkswagen AG (condensed, according to German Commercial Code) Research and development Business processes Legal matters Risk report Outlook contents 40 ▼ net assets, financial position and earnings performance Sales revenue at prior year level Despite the negative effect of exchange rate movements, the Volkswagen Group generated sales revenue at the level of the previous year. However, earnings reflected unfavourable underlying conditions and special items. 12 ▼ letter to our shareholders Change and progress Our efforts are targeted at the goal of continuously enhancing the value of the Company as you, our shareholders, perceive it. 12 ▼ 14 ▼ 18 ▼ volkswagen share An attractive investment Despite difficult market conditions, the Volkswagen share has been attractive for analysts and investors. 18 ▼ 30 ▼ 40 ▼ 50 ▼ 14 ▼ 30 ▼ 50 ▼ group values Values create value >> Volkswagen is on the move – from a collection of strong...
Words: 59921 - Pages: 240
...years, and the production during this period is shown in the table below. The extraordinary increase in production in the last seven years is evident. The idea was to deliver a car assembled as per the consumer’s own specifications in the shortest possible time, at a cost lower than that of the traditional make-to-stock mass-production system. Year 2000 2001 2002 2003 2004 2005 2006 2007 Production 24,007 91,407 109,916 115,304 136,114 135,097 140,994 192,272 The Background of the Brazilian Automotive Industry In the ’90s, three big experiments were done in Brazil. The Gravataí GM complex (GMBG), the Ford Camaçari complex and Volkswagen plant in Resende, each with specific characteristics. The Ford and GM plants manufactured passenger cars and Volkswagen made light trucks, also built-to-order like Gravataí plant. In this case, Volkswagen put all the suppliers responsible for the assembly of their components...
Words: 4800 - Pages: 20
...production during this period is shown in the following table. The extraordinary increase in production in the last 7 years is evident. The idea was to deliver a car assembled as per the consumer’s own specifications in the shortest possible time, at a cost lower than that of the traditional make-to-stock mass-production system. 2000 Year Production 24,007 2001 91,407 2002 2003 2004 2005 2006 2007 109,916 115,304 136,114 135,097 140,994 192,272 The Background of the Brazilian Automotive Industry In the 90s, three big experiments were done in Brazil: The Gravataí GM complex (GMBG), the Ford Camaçari complex, and Volkswagen plant in Resende, each with specific characteristics. The Ford and GM plants manufactured passenger cars and Volkswagen made light trucks, also built-to-order like Gravataí plant. In this case, Volkswagen put all the suppliers responsible for the assembly of their...
Words: 4737 - Pages: 19
...shown in the table below. The extraordinary increase in production in the last seven years is evident. The idea was to deliver a car assembled as per the consumer’s own specifications in the shortest possible time, at a cost lower than that of the traditional make-to-stock mass-production system. Year Production 2000 2001 2002 2003 2004 2005 2006 2007 24,007 91,407 109,916 115,304 136,114 135,097 140,994 192,272 The Background of the Brazilian Automotive Industry In the ’90s, three big experiments were done in Brazil. The Gravataí GM complex (GMBG), the Ford Camaçari complex and Volkswagen plant in Resende, each with specific characteristics. The Ford and GM plants manufactured passenger cars and Volkswagen made light trucks, also built-to-order like Gravataí plant. In this case, Volkswagen put all the suppliers...
Words: 4812 - Pages: 20
...Import Substitution and Industrialization in Latin Amercia: Experiences and Interpretations Author(s): Werner Baer Source: Latin American Research Review, Vol. 7, No. 1 (Spring, 1972), pp. 95-122 Published by: The Latin American Studies Association Stable URL: http://www.jstor.org/stable/2502457 Accessed: 26/08/2009 09:21 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=lamer. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit organization founded in 1995 to build trusted digital archives for scholarship. We work with the scholarly community to preserve their work and the materials they rely upon, and to build a common research platform that promotes the discovery and use of these resources. For more information about JSTOR, please contact support@jstor.org. The Latin American Studies Association...
Words: 12006 - Pages: 49
...TB0243 Michael Greto Andreas Schotter Mary Teagarden Toyota: The Accelerator Crisis The root cause of their problems is that the company was hijacked, some years ago, by anti-family, financially oriented pirates. Jim Press, former President & Chief Operating Officer (COO) Toyota Motor Sales, U.S.A., Inc. On February 24, 2010, Akio Toyoda, the grandson of Toyota Motor Corporation’s founder, Kiichiro Toyoda, endured a grueling question-and-answer session before the U.S. House of Representatives Committee on Oversight and Government Reform. The committee represented just one of three Congressional panels investigating the 2009-2010 recall of Toyota vehicles related to problems of sudden acceleration and the company’s delay in responding to the crisis. Signs of the coming recall crisis began as early as 2006 when the National Highway Traffic Safety Administration (NHTSA) opened an investigation into driver reports of “surging” in Toyota’s Camry models. The NHTSA investigation was closed the next year, citing no defects. Over the next four years, Toyota, known in the industry for its quality and reliability, would quietly recall nearly nine million Toyota and Lexus models due to sudden acceleration problems. Toyota’s leadership, widely criticized for its slow response in addressing the problems, now had to move quickly to identify a solution that would ensure the safety of its vehicles, restore consumer confidence, protect the valuable Toyota brand, and recoup a plummeting...
Words: 13407 - Pages: 54
