Volkswagen Do Brasil - Driving Strategy with the Balanced Scorecard

1607 Words Dec 20th, 2013 7 Pages
Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard

Index: 1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? 2. Describe VWB´s new strategy 3. What are the benefits from having all employees understand the strategy? 4. How does the strategy map and Balanced Scorecard help Schmall and Senn implement the new strategy? 5. What are the strengths and weaknesses of the Scorecard and its implementation? 6. What other actions did VWB take to support strategy implementation? 7. How can Schmall and his team use the scorecard to deal with the challenges faced by company in January 2009?

1. What challenges does Thomas Schmall face upon becoming CEO of
…show more content…
VWB also struggled sticking to their export-led strategy and maintaining production minimum because of “the appreciation of the Brazilian currency, relative to the dollar and euro, along with increases in the local labor and raw materials costs”, as Schmall pointed it out. Another problem was that VWB couldn´t increase prices on shipped products, because of stiff competition in automotive world-wide. As a result company´s excess capacity costs wouldn´t be covered by insufficient export margins. Internal wise Schmall had to bear with inefficient processes on the shop-floor and administration, like reliance on cost reduction, employee layoffs and capacity downsizing. Nevertheless, the biggest stumbling block would be changing the mindset of the employees. Employees work dedication negatively reflected in the scale of absenteeism, company identification and ideas for improvement showed Schmall that it was high noon for VWB to undertake tremendous cultural and strategic change. 2. Describe VWB´s new Strategy
VWB´s new strategy was multifaceted and consisted basically of four major objectives that guaranteed that VWB would regain position as market leader Brazil and strived for #1 producer of the South American automotive market. To realize their strategy they needed to “build a high performance team that would drive VWB to become South American industry´s leader in quality, innovation, sales, and

Related Documents