Volkswagen Acquisition of Skoda Essay

15816 Words Nov 6th, 2009 64 Pages
Question Paper Integrated Case Studies - II (MB3J2): October 2008
Case Study∗ (100 Marks)
• This section consists of questions with serial number 1 - 5. • Answer all questions.

• Marks are indicated against each question.

Read the case carefully and answer the following questions:
“The greater the level of involvement of a company in foreign markets, the greater the need for it to monitor the political climate of the business.” In relation to the effect of a country’s political environment on a company’s performance, analyze how the political environment of Czechoslovakia impacted Skoda? ( 18 marks)


“In the early 1990s, Volkswagen’s (VW) sales in the US were declining, making it imperative for the company to start
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The Allied Forces of the Second World War were the USSR, the USA and the UK, and their allies. They were officially opposed to the Axis Powers which were formed by Nazi Germany, Italy and Japan. SEAT stood for Sociedad Española de Automóviles de Turismo (Spanish Corporation of Touring Cars). The company originally produced FIAT cars under license. VW entered into a licensing agreement with the company in the early 1980s, becoming a major shareholder in 1986, and acquiring the full ownership in 1990. The company made an effort to revive its fortunes in the US market by introducing what it called the New Beetle in 1998. The car was a success in the US, although the sales in Europe were limited. Jonathan Ledgard, “Skoda Leaps to Market,” Strategy + Business, Fall 2005. As of 2006, VW was the fifth largest car manufacturer in the world, behind General Motors, Toyota, Ford, and the Renault-Nissan Alliance. Jonathan Ledgard, “Skoda Leaps to Market,” Strategy + Business, Fall 2005. Milorad Ajder, “Shall We Dance?” (Accessed on June 2, 2007). Tom Mudd, “The Last Laugh,” Industry Week, September 18, 2000. In a fractal manufacturing system, the company or factory is composed of smaller independent components or fractal entities that work together as a coherent whole. The main features of fractal manufacturing are: the independence of each fractal entity to choose its own

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