StudentShare solutions
Triangle menu

Volkswagen Strategic Management - Case Study Example

Extract of sample
Volkswagen Strategic Management

VW group have 8 automobile brands with 44 vehicle and component production plants in European countries as well as in six countries in America; Asia & Africa. Sales operations spread around 150 countries across the globe. The group has eight major brands of vehicles namely Volkswagen passenger cars, Audi, Bentley, Bugatti, Lamborghini SEAT, Skoda and Volkswagen commercial Vehicles- each deal autonomously with their own vehicle business includes development and production to marketing & servicing (Accessed from the website www.volkswagen.com).
1. As part of the corporate governance and strategic management, VW group has adopted various strategic choices. Strategic fit is developing strategy by identifying opportunities in the business environment and adopting resources and competences to take advantage of these (Porter, 1980). Strategic choices are concerned with decisions about an organization's future and the way in which it needs to respond to the market pressure and influences. At different level of organization, executives are faced with choices as to how to meet the expectations of stakeholders' whilst satisfying the needs and expectation of the users, often-in competition with other organizations. Hannan & Freeman (1977) suggest that as organizations, adaptor of a particular environment they become less flexible. Organization's choices are constrained not only by an explicit cultural dimension in the sense of what we believe around here but also by what skills and resources are available and in what context those skills and resources become valuable. Prahalad & Bettis (1986) argue that organizations have dominant logics and that these logics are based on the mental maps developed in the organizations core business. Michel Porter's (1985) five forces strategies low cost strategies and strategic choices are some of the strategies have been adopted for competitive advantages for the organizations. Campbell-Hunt (2000) suggests that differentiation can take on number of forms based on marketing variables, sales variables, quality reputation variable and product innovation variables. Sustainable competitive advantage depends on companies being able to develop and protect resource advantages by focusing on particular market position. Finally, organization's ability to succeed in a business arena depends on is ability to develop a market position that is supported by appropriate assets and capabilities. Strategic choices include corporate strategy, Business or competitive strategy and directions and methods of development. Corporate level strategy (Andrews, 1987) is concerned with the overall purpose and scope of an organization and how value will be added to different parts of (business units) the organizations. Corporate level strategy includes portfolio decisions extent of diversity and management and control of subsidiaries. The second level can be thought of in terms of business unit strategy (Hall, 1978) which is about how to complete successfully in particular markets. Business strategy includes sustainability, competitive advantages competitive strategy and strategies in hyper-competitive conditions. Finally, the directions and methods of development include market development, product development, diversification, acquisitions alliances as well as critical success criteria. It also includes the concept of suitability, acceptability and ...Show more

Summary

Overview: The Volkswagen Group (VW) have two divisions: Automobile and financial services. The activities of Automotives division include the development of vehicles and engines, the production and sale of passenger cars, commercial vehicles, trucks and buses…
Author : igaylord
Volkswagen Strategic Management essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Volkswagen Strategic Management"
with a personal 20% discount.
Grab the best paper

Related Essays

Strategic Management
Question 1(ii) Sony Strategy Using the Resource-Based View of the Firm Framework The resource based view is quite significant in comprehending how to make use of the capabilities of the firm so that it can accomplish sustainable competitive benefit. It comprises tangible resources, intangible resources as well as human resources.
6 pages (1500 words) Case Study
Strategic management
An analysis of the company from external as well as internal perspectives has been undertaken and the findings obtained from the analysis have been presented below. Assessment: current strategy and the capacity to sustain competitive advantage The current strategy of Starbucks has been assessed with the help of Business System Model given in the appendix.
7 pages (1750 words) Case Study
Strategic Management: Strategic Choices
Main products of the company are printers, personal computers, network management software, high end servers etc. Company is operating its business globally in several areas like printing, computing, digital imaging. Beside this, the company is also providing software and services.
4 pages (1000 words) Case Study
Swatch - strategic management
By that time Japanese and Hong Kong competitors have taken 80% of the world sales, seriously threatening the traditional Swiss watch industry. The Swatch Company becomes a market leader by creating a niche market of trendy products appealing to a large market segment that was largely underserved - people aged 15-29.
8 pages (2000 words) Case Study
Strategic Management: Jordan GP
Therefore this would be someone with a close understanding of the personality of the founder and in a way apply this personality to the success of the business. Jordan GP is private company which is owned by Eddie Jordan's company Jordan GP Holding Limited.
12 pages (3000 words) Case Study
STRATEGIC MANAGEMENT
The technology sector is observed to be dynamic and is undergoing modifications at a rapid pace. The sector is subject to constant development that emerges from high-level research and invention. It has also encountered dramatic
16 pages (4000 words) Case Study
Strategic Management
Hyatt Corporation is an American company that has risen over past decades to become one of the leading and most successful hospitality companies. Hyatt has a large global network, with its presence in five regions and over 48 countries worldwide. Currently, the company
2 pages (500 words) Case Study
Strategic management
Financial operations were managed in Geneva. In 2006 Branson explained the basis of Virgin and he considered some opportunities; such as they have to enhance their brand and be global in scope and have more expectations of good
2 pages (500 words) Case Study
Strategic Management
In 2004, the company gained reputation in the market with around 19,606,042 shares and at a starting price of $83 per share. In 2002, Google launched a new program known as Adwords, which is a cost per click
5 pages (1250 words) Case Study
Strategic management
The main strategy for the company is to provide goods for the newly educated people with a strong aim of creating consistent customers. Also, the company sells goods at reasonable prices. The main industry
1 pages (250 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation