Volkswagen Industry And The German Labor Front

1361 WordsOct 5, 20156 Pages
Background In 1937, Germany founded the Volkswagen Industry and introduced a vehicle that was marketable to anyone. According to History, at the time of its foundation, the operation was run by the German Labor Front, a Nazi organization in Wolfsburg, Germany. The design for the original “people’s car” was done by Ferdinand Porsche. Notably, the car was meant to be affordable, yet speedy while supporting transportation needs for families (history.com). However, despite its popularity in European countries, initial sales in America were gradual on account of the companies Nazi connections after WWII (history.com). Therefore, in an attempt to resuscitate the company, allies worked to re-brand the enterprise and by 1959 an advertising…show more content…
These benefits did not directly align or relate to the NRG goals. By not funding this project, globalization initiatives took a serious setback for the company (Austin, Ritchie, Garrett, 2007). According to VW, this happened because the project was not properly incorporated into the company’s strategy using the new system for choosing resource allocations. Furthermore, many ELT managers were unhappy when the projects they submitted were not funded because the goals did not support NRG. VW’s team did not take into account the total amount of resources needed to keep fundamental initiatives going. As a result, despite a well-planned strategy to choose projects for funding, many gaps for resources went unaccounted for. According to an article done by Forbes Magazine, “resource allocation is critical to strategy and therefore needs to be an integral part of aligning innovation to strategic objectives” (Satell, 2013). Unfortunately, the VW team did not strategize for the difference between NRG goals and global strategy initiatives (Austin, Ritchie, Garrett, 2007). IT Knowledge Issues On several occasions throughout VW’s history as a company, they have treated their IT as a completely separate entity. From 1992 to 2002, marketing and sales departments obtained priority for both activities and funding. Furthermore, due to its lower
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