Volkswagen Essay Example | Topics and Well Written Essays - 2000 words - 1

Volkswagen - Essay ExampleAdditionally, the paper also discusses the companys SBUs and growth strategies to assist the creation of a clearer stance on the development of Volkswagens strategic direction. idea of strategic decisions is also conducted to provide direction for further considerations and research. Recommendations focus on the expansion of Volkswagen in maturation markets by application of current strategies and the enhancement of its position in the markets of India, China and Brazil. 1. Introduction As one and only(a) of the key players in its industry, German automobile manufacturer Volkswagen stands as the 14th largest company in the world according to Forbes (2013). Relying on the foundations of advancing corporate neighborly responsibility and sustainability through its operations, Volkswagens mission extends to the preparedness of customer satisfaction, which is a practice that the company hopes would lead to its attainment of the first position in the worldw ide automotive industry by the year 2018. For the purposes of realizing its objectives, the company implements and follows what is known as a group system across its departments in order to fulfill its aim of recording 10 million sales of automobiles in a year and generating a pre-tax profit margin of 8% (Volkswagen 2011). This report comprehensively covers the aspects of Volkswagens strategic position and strategic direction in addition to a critical evaluation of Volkswagen Groups strategy to highlight the companys path in meeting its long term objectives effectively. 2. analytic thinking OF STRATEGIC POSITION 2.1 External Analysis In examining the external position of Volkswagen Group, this section of the report utilizes the evaluations of tools such(prenominal) as the PESTEL analysis, Porters Five Forces analysis and the industry life cycle. 2.1.1 PESTEL ANALYSIS POLITICAL The UNECE compact introduced in 1958 was initiated by the EU to provide an incentive to automakers opera ting within the political region by diminishing compliance costs. While, the UNECE agreement is critical to enhancing Volkswagens cost efficiency the Cars 2020 reform proposed by the EU will allow the company to expand its geographical reach ( europiuman Commission 2013). ECONOMIC Following the globular economic downturn, analysts such as Pearson (2013) are predicting a gradual and steady recovery in Europes demand for automobiles which had diminished to a great extent. Both the consistency in demand for cars outdoors of the EU and a revival in demand within the EU is a positive brand for Volkswagen Group. SOCIAL The market positioning of Volkswagens brands has significantly assisted its aim of catering to the unpredictably of social transitions and changes in consumer preferences. By balancing cars that offer great value and automobiles such as the Phaeton that is knowing for the high-end customer, Volkswagen Group is greatly equipped with facing any amendments with regards to social factors. TECHNOLOGICAL Volkswagen has increased its investments in R&D and constant innovation owing to the competitiveness of the automobile industry. The relentless efforts of the companys R&D and innovations department have led to the development of technologies such as BlueMotion, Assistance systems and TDI. ENVIRONMENTAL