Volkswagen Case Analysis Essay

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Case Analysis: Volkswagen

(Color-Coding Key: Lizzie; Ryan)
I. Current Strategic Position
Infamous German automobile company, Volkswagen, was formed on May 28, 1937 by the German government, then under the power of Nazi leader Adolf Hitler. The state-owned company was originally named Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH but later in 1937 was changed to simply Volkswagenwerk, meaning "The People's Car Company." With Ferdinand Porche, automobile engineer, at the forefront of the design for the new vehicles, Volkswagenwerk projected full-scale production in Wolfsburg, Germany to take place in 1939. Hitler asserted, "It is for the broad masses that this car has been built. Its purpose
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Volkswagen Factbook 2012 To achieve Volkswagen Group’s goal of becoming number one in customer satisfaction and quality, the company must continue to increase its ecological standards in the manufacturing of its vehicles, which could include specifically, powertrains and lightweight construction. (VW AG) This will help the Group to continue to reduce its global footprint, which will fundamentally be the reduction of carbon emissions. Customer satisfaction is also achieved by Volkswagen Group with its large array of brands that are maintained by the company. From the low cost Skoda and Seat brands to the to the extremely high cost Lamborghini and Bugatti, with the Volkswagen and Audi brands servicing its middle class customers somewhere in between. With brands that span all income levels, Volkswagen Group has become the most successful multibrand automobile manufacturer in the world.
The next aspect of Strategy 2018 is achieving a before tax profit margin of 8%. Volkswagen Group looks to achieve this goal through increased productivity and cost reduction measures such as standardization. These measures include reducing throughput times in production as well as continuing to refine and perfect its state of the art modular toolkit strategy. As explained later in the analysis, the modular toolkit strategy allows
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