Volkswagen of America - Case Study Example

This led to a situation where the company had to decide on a permanent solution which could not only resolve the issues, but help them to experience growth at every possible instance. Analyzing the new process gives a clear picture of each department and the process covered by the management. Matulovic’s decision seems to be a better one, as it deals with the problem’s base and tries to resolve it before it could affect the other departments. The new process is based on certain strategies that aim at eradicating the management issues and problems like setting the priorities and managing the budget.

The budget allotments and managing priorities seems to be a herculean task and Matulovic ended up at managing the firm based on strategies that could help them to improve the company in every possible way. The priorities include proposing a change in the IT department, budget allocation, service oriented problems and product implementation. Taking a look at the present scenario, there is not much of a difference on the management side and the company has concentrated more on product and IT related issues.

Since even a minor issue can lead to a big problem after sometime, it is important for the company to give due importance to all the prevailing problems. During the late 1990’s the company’s management failed to act quickly while deciding on the design of the vehicles. The manufacturing unit was made to wait till they got an approval from the management side. They had to interact with the management each time a modification is required. Even the slightest change in the product was not permitted and the company waited till the next round of feedbacks came from the customers.

When compared to the old process, the new process for managing the priorities is certainly effective. A detailed look on the new process reveals more information regarding the product development, resource allocation, budget management and other factors too. The improvement in the IT