Case Study Volkswagen AG
Thi Quynh Tran
MGT 6203.21 Strategic Management
Amberton University
Dr. Steve Tidwell
Carnival Case Study
April 26, 2014
Case Abstract
Volkswagen AG is the world’s leading automobile company, headquartered in Germany. During the recession, when other competitors lost dramatically, Volkswagen utilized excellent strategic planning to survive through the recession and earn profits. By expanding the business in the emerging market like China and Brazil, the company proved the strong growth, even outperformed other rival companies like Toyota or Nissan. The case focuses on the expansion and power of Volkswagen in the world and its strategy to develop the brand and increase sales worldwide.
Vision
Vision of Volkswagen is to become the global automotive leader.
Mission
The company mission is expressed as the company main goal: The goal is to offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class.” The purpose of Volkswagen’s mission is to communicate its business core targets to its stakeholders and motivate VW Group to achieve their objectives.
External Environment
Economic:
The American automobile industry suffered deeply from the recession, particularly the “Big Three” companies of General Motors, Ford and Chrysler.
The emerging markets like China, Mexico, Brazil or Indonesia offered more opportunities for suppliers to create better value chain and increase sales for businesses in the automotive industry.
After the recession in 2009, the dollar value in the U.S. decreased dramatically that motivated the American companies to expand their businesses overseas, the unemployment rate increased and the GDP decreased severely, mainly because people lost their jobs and cannot afford things. US International Trade Commission reported a loss of average annual rate of 20.2% in import during 2008-2009, marked a crisis in the US economic history
MGT 6203.21 Strategic Management
Amberton University
Dr. Steve Tidwell
Carnival Case Study
April 26, 2014
Case Abstract
Volkswagen AG is the world’s leading automobile company, headquartered in Germany. During the recession, when other competitors lost dramatically, Volkswagen utilized excellent strategic planning to survive through the recession and earn profits. By expanding the business in the emerging market like China and Brazil, the company proved the strong growth, even outperformed other rival companies like Toyota or Nissan. The case focuses on the expansion and power of Volkswagen in the world and its strategy to develop the brand and increase sales worldwide.
Vision
Vision of Volkswagen is to become the global automotive leader.
Mission
The company mission is expressed as the company main goal: The goal is to offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class.” The purpose of Volkswagen’s mission is to communicate its business core targets to its stakeholders and motivate VW Group to achieve their objectives.
External Environment
Economic:
The American automobile industry suffered deeply from the recession, particularly the “Big Three” companies of General Motors, Ford and Chrysler.
The emerging markets like China, Mexico, Brazil or Indonesia offered more opportunities for suppliers to create better value chain and increase sales for businesses in the automotive industry.
After the recession in 2009, the dollar value in the U.S. decreased dramatically that motivated the American companies to expand their businesses overseas, the unemployment rate increased and the GDP decreased severely, mainly because people lost their jobs and cannot afford things. US International Trade Commission reported a loss of average annual rate of 20.2% in import during 2008-2009, marked a crisis in the US economic history
References: David, F. (2011). Strategic Management: Concept and cases. New Jersey: Pearson. Print. Jurevicius, O. (2013). SWOT analysis of Volkswagen. Strategic Management Insight. Retrieved from http://www.strategicmanagementinsight.com/swot-analyses/volkswagen-swot-analysis.html Majstorovic, A. (2010). Recession in the automobile industry: A comparison between the responses to the economic recession of the United States and Europe. University of Van Tilburg. Rauwald, C. (2008). “VW Earnings Buck Auto Industry Trend.” Wall Street Journal. Schmidt, O (2014). Volkswagen Group: Powertrain and Fuel Strategy. Volkswagen: Group of America. Sturgeon, T. Biesebroeck, J. (2010). Effects of the crisis on the automotive industry in developing countries: A global value chain respective. The world bank. Volkswagen (2014). Group Strategy 2018. Annual Report 2013. Retrieved from www.volkswagenag.com. Weller, C. (2012). 10 reasons why public policies rescued the U.S. Economy: Recovery from the great recession was no accident. Retrieved from www.americanprogress.org