Volkswagen Do Brasil - Driving Strategy with the Balanced Scorecard

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REV: DECEMBER 20, 2010


Volkswagen do Br rasil: Driving Strategy with the
Balanced Scorecard d op yo kswagen do Brasil (VWB), studied the color-coded charts and d Thomas Schmall, CEO of Volk indicators on his wall. The data sh howed financial, customer, process, and employee p performance through end-of-year 2008. Schmall a his management team had introduced the Balance Scorecard and ed in 2007 as part of a program to reve erse eight consecutive years of market share declines a financial and losses. So far, the turnaround had been successful. The new enthusiasm among the workforce, d e consumers, suppliers, and dealers h led to strong sales
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Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard

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Brazil’s recent global presence came only after multiple internal and external economic crises. In
1994, the government launched an economic stabilization plan that reduced inflation to single digits and helped the country become the largest and most diversified economy in Latin America. With gross domestic product doubling from 1994 to 2008, Brazil now had the world’s ninth largest economy.1 Competition in Brazil

op yo The automotive sector produced 19% of Brazilian industrial GDP. The sector employed, directly or indirectly, more than 1.5 million people in more than 200,000 companies. North American and th European automobile manufacturers had entered Brazil in the first half of the 20 century by assembling vehicles from completely or semi-knocked down imported kits. In 1955, the Brazilian government mandated that the multi-national companies either abandon the Brazilian market or begin producing vehicles with

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