Vw Company Case Study

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Since September 2015 that the EPA reported that VW were selling cars with defects in the diesel engines, lawsuits haven’t stopped coming its way. USA today recently reported that the company had taken a 20 billion loan to help covering the costs of those lawsuits, the fines and the vehicle repairs generated from the scandal. Bentley, Lamborghini and Ducati, are the most lucrative brands under the VW umbrella. VW may have no other choice than selling those brands, and use the revenues to cover settlement disputes from the scandal.
b) Company Structure Reorganization
Also, as a way to mark his imprint and distance himself from his predecessor, it wouldn’t be a bad idea from new CEO Matthias Muller to shake things up by reorganizing the company’s
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VW isn’t an exception to the rule; as a moral entity, VW has betrayed the trust of millions of customers and shareholders by cheating the emissions test for so many years. If it wants to recover from the crisis it is currently in, corporate social responsibility (CSR) has to become a primary focus in VW’s strategies from this point on, especially because it can help the German automaker regain some of the competitive advantage it lost amid the scandal. According to Porter and Kramer (Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility), there are four arguments that make the case for companies to see CSR as a must: moral obligation, sustainability, reputation, and license to operate. In this particular situation, the first three arguments apply to VW who will be under the most scrutiny that it has ever seen. In order to be effective in its CSR initiatives, VW can use the diamond framework (See Exhibit 7) which will help understanding the social dimension of the company’s competitive context. It will have to not only be aggressive in acting as a “good-citizen” and mitigating adverse effects from its business activities (Responsive CSR), but also in going beyond their best practices to serve the customers’ needs (Strategic …show more content…
Dan Carder is the mechanical engineer out of West Virginia University, who brought down VW by discovering and providing evidence that VW cheated on U.S. vehicle emission tests. Carder is also the director of the Center for Alternative Fuels, Engines and Emissions (CAFEE). Carder and his research found out about the cheat before the EPA did, even though the latter had conducted several tests of their own. So what does that tell us? That Carder is really good, and can be an asset to any other automaker in the world. Carder would be a source of competitive advantage for VW, and it would make sense for VW to go after him, and offering him a position in the VW North America

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