BUSI 601-07-GROUP 8 - Volkswagen case study

.docx

School

University Canada West *

*We aren’t endorsed by this school

Course

601

Subject

Business

Date

Feb 20, 2024

Type

docx

Pages

12

Uploaded by ProfElectronGorilla32

Report
1 An analysis of Volkswagen cars and recommendations BUSI 601 – 07 – GROUP 8 University Canada West BUSI 601: Ethics, CSR & Business Analysis (HBD-FALL23-07) Professor: Abhinav Tomer October 29, 2023
2 Abstract The analysis of Volkswagen cars provides a comprehensive analysis by utilizing the strategic framework, including SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), PESTEL analysis (Political, Economic, Social, Technological, Environmental, Legal), and VRIO analysis (Value, Rarity, Imitability, Organization). The objective of this analysis is to give a recommendation to George Lafontaine and other prospective customers on whether to buy or not buy Volkswagen cars. The insight of the analysis gathered from the above analysis will give George Lafontaine and other prospective customers more valuable information for decision- making regarding purchasing Volkswagen cars, taking into account the company’s strengths, weaknesses, external opportunities and threats, unique opportunities, and exclusive selling points. The analysis will conclude with clear and evidence-based recommendations to George Lafontaine to support him in making appropriate decisions when considering Volkswagens in the context of a diverse and competitive car industry. Keywords: Volkswagen analysis, SWOT analysis, PESTEL analysis, VRIO analysis, recommendations.
3 An analysis of Volkswagen cars and recommendations SWOT analysis A SWOT analysis of Volkswagen provides insights into the organization to develop a full awareness of all the factors involved in making a decision. George can also keep in mind the company’s situation over time in the developed automotive industry. Strengths Large German brand: Volkswagens is known as a globally recognized and famous German car that ranked at position 41 in the World’s Best Employers list in 2023 (Forbes). The company’s footprint globally with its manufacturing plants, showrooms, and dealerships in numerous countries around the world. World-class best engines: Volkswagen is famous for high-quality and reliable engines With the high-end autonomous vehicle technology invested, Volkswagen aims to position itself as the future of the automotive industry. High market shares and benefit from the economics of scale: Volkswagen accesses various market segments, expanding its market shares, and benefiting from economies of scale with savings and efficient procedure processes. Weaknesses Emission scandal: The scandal about diesel emissions damaged the reputation and led to significant financial penalties of more than $30 billion and legal issues. High costs: With the commitment to innovation and quality, Volkswagen invested a huge budget in research and development costs, resulting in high production costs, and repair maintenance costs, which affect profitability and high selling costs to customers.
4 Low market share in the US and Canada: Volkswagen has a high market share globally mostly dependent on European and Chinese markets, but they have fewer market shares in the US and Canada making it difficult to attract customers in these potential markets. Opportunities Expand to electric vehicles (EVs): Demand for EVs has grown significantly in recent years given the opportunity to make investments in electric vehicle technology. Correct past failures: The investment in sustainability helps Volkswagen capitalize on the global by promoting clear and green vehicles, expressing to society that they acknowledge their failure, and effort to correct their fault in the past. Expand to emerging markets: Volkswagen can expand its market into potential and emerging markets, especially in Asia, diversify its customer portfolio, and improve sales Threats Competition: Volkswagen faces intense competition from other automotive brands, such as Tesla, Ford, Toyota, Huyndai, or emerging electric vehicle companies, which can erode Volkswagen’s market shares. Trade barriers and tariffs: Expansion of market shares to other countries makes Volkswagen deal with trade barriers, tariffs, and different political policies, leading to disruption of international operations and supply chain. Stringent emissions regulation: The emission scandal is also a high threat to Volkswagen when its reputation is significantly affected, in addition to the stringent emissions regulation and safety standards, which can increase the compliance cost and affect the company’s bottom line.
5 PESTEL analysis Political: Regulations regarding the production of cars in Canada are strict with safety and strict emission standards. Trade agreements: Canada has an agreement with The United States of America and Mexico (CUSMA) for the automotive industry. If there is any change in their policies, this might affect Volkswagen’s operations. Economic: Economic factors might impact Volkswagen operations such as GDP growth, interest rates, and consumer confidence. Exchange rates because global economic currencies are changing too fast all the time, and this effect might affect production costs and prices. Social: Canadian consumers' preferences for car models can be affected by factors such as age, capital, and lifestyle. VW needs to adapt its lineup to suit regional demand. Canada is a country that encourages eco-friendly and electric cars. Volkswagen has been known for its quality and innovation. Technological: Volkswagen is focused on the safety of the people and innovation to remain competitive.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help