Volkswagen Group

Volkswagen Group is a German multinational automotive manufacturing company with the headquarter based in Germany. In 2013, Volkswagen was ranked 8 on Fortune’s list of top 100 world’s largest corporations, jumping one spot up from number 9 in 2012. The company specialises in designing, manufacturing and distributing passenger and commercial vehicles, motorcycles, engines as well as offering associated services including financing and leasing. Volkswagen currently operates in approximately 150 countries with 100 production facilities around 27 countries. They have two major joint ventures in China; FAW- Volkswagen and Shanghai Volkswagen (Volkswagen Group, 2014). Volkswagen is committed to Germany as a manufacturing and development location. At the same time, they want to step up their investments in the markets outside Europe to further increase their global presence and capability. The company’s operations in China have grown rapidly in the past decade, becoming its largest market. Volkswagen aimed to be the first successful Western automobile manufacturer to enter China, to build a leading position within the Chinese car market (Volkswagen, n.d).

its brand to more quality-oriented and had adjusted model prices in the view of new

The action has an effect on the loyal customers, suppliers and other stakeholders such as industrial transportation in the US/European economy that have been a pivot point in the value addition to the Volkswagen business.

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Arnold Communications undertook extensive market research in order to understand the modern VW buyer and their position in the industry. They set about collecting primary data through extensive interviews, visiting 95 of the top VW dealers and drving VX over 50,000 miles

Firstly, they needed to create a high performance team that would guide VWB to become the industry leader as the case states. Secondly, they needed to re-brand VWB into a company with employees that liked working there and were motivated. Their workers also needed to introduce new, innovative cars and light vehicles. Thirdly, they wanted to change the culture into one where employees were pro-actively solving problems. They also wanted to reduce the health and safety incidents even if this costed money and decreased short-run production output. Lastly, they wanted to change the bureaucratic culture and slow company culture. Therefore they needed to create new relationships with key stakeholders: employees, suppliers, and

Improved financial returns (higher share price/ dividends); VW has issued more than 502 million shares (Volkswagen AG, 2016, p.13)

Volkswagen wants to become a global and environmental leader in the automotive world and has developed the “Strategy 2018”. The “Strategy 2018” is stated in their latest annual report in the goals and strategies section as follows:

Volkswagen is the original marque within the Volkswagen Group, which includes the car marques Audi, Bentley Motors, Bugatti Automobiles, Automobili Lamborghini, SEAT, Škoda Auto and heavy goods vehicle manufacturer Scania.

Audi also provides services to customers by helping customers to sell their existing Audi , this service provided by Audi wins a lot of trust and goodwill from New customers. The company does a 110 point check on an old Audi before declaring the car fit for sale. They also offer good features to the new customer by offering a 30 day Back guarantee in case any issue is found with the Pre-owned car thus building brand trust. This also shows the commitment of Audi towards the Customer facet of the

Volkswagen goal is to become the ecological and economical leader in the automotive industry and to be the world’s leading automaker by 2018. Volkswagen has four main objectives through which they will achieve their goals.

Volkswagen a parent company of Skoda is Europe’s largest carmaker producing cars, trucks and vans. It

Shanghai Volkswagen is loosing market share. Since we arrived to Chinese market we had a continuous growth, but in 1997 the market participation started to decrease. Today, in 2004, we have a market share of 16% substantially lower of the 51% that we used to have eight years ago. We also are loosing our position of leadership in the market.

“In the early 1990s, Volkswagen’s (VW) sales in the US were declining, making it imperative for the company to start

Based on the fact that in 2009, Volkswagen sold just 213,454 cars in the US, The Board felt the North American goal was unrealistic and unachievable. Instead of over-targeting a shrinking market, The Board felt in addition to targeting the Latino market within the United States, more focus should be shifted towards emerging markets in Asia.