Volkswagen Case Analysis Essay

5476 Words Sep 11th, 2013 22 Pages
Case Analysis: Volkswagen

(Color-Coding Key: Lizzie; Ryan)
I. Current Strategic Position
Introduction
Infamous German automobile company, Volkswagen, was formed on May 28, 1937 by the German government, then under the power of Nazi leader Adolf Hitler. The state-owned company was originally named Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH but later in 1937 was changed to simply Volkswagenwerk, meaning "The People's Car Company." With Ferdinand Porche, automobile engineer, at the forefront of the design for the new vehicles, Volkswagenwerk projected full-scale production in Wolfsburg, Germany to take place in 1939. Hitler asserted, "It is for the broad masses that this car has been built. Its purpose
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As you can see in the above chart Volkswagen has already achieved a 7.8% before tax profit margin. Combined with effective cost and investment management, these efforts will ensure that Volkswagen reaches its long-term profitability targets. (VW AG)
Strategy 2018 calls for Volkswagen to become the industry leader in automobile sales. This can be achieved by the Group selling 10 million or more vehicles in 2018. As you can see above, Volkswagen sold 8.27 million vehicles in 2011, showing that the company is making progress. (VW AG) Aiding the continued increase in sales is the company’s diverse portfolio of brands helping it to target a wide variety of consumers, which include the important emerging markets in areas such as the BRIC countries. The BRIC countries include Brazil, Russia, India, and China. The fourth component of Strategy 2018 is for Volkswagen to become the top employer across all brands. This is very important to Volkswagen, as they believe that they cannot become the premier automobile manufacturer without a happy, knowledgeable staff that is encouraged by working towards shared goals; which are conveniently defined by Strategy 2018. As seen in the above table, Volkswagen has successfully increased its employee satisfaction over recent years.
Other measures that will allow Volkswagen Group to achieve long-term success is by continuing to promote its

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