Introduction and Strategy
VWM is implementing a new strategy with the objective of restoring profitability and achieve the #1 market share in Brazil by 2009. This will be done by having their highly-motivated employees work collaboratively with key suppliers, to produce high performance, competitively priced reliable vehicles that are sold and serviced through the best deal networks in Brazil. This will appeal to middle and upper-class consumers.
Analysis
The strategy map in Exhibit 4 and Balance Scorecard in Exhibit 5 help with the implementation of the new strategy. This is further discussed below in the strengths and weaknesses:
Strengths:
If one looks at the Brazilian flag, the national colors are yellow and green which are the colors …show more content…
The Customer metrics include “things that went wrong,” “repairs per 1000 cars sold,” and the brand’s “image quality index.” These do emphasize the importance of designing and producing vehicles with superior quality and building a strong, differentiated brand. The Process metrics include many measures on developing superior suppliers and dealers, introducing new products, and improving quality and capacity utilization. At the end of the day, however, the key to success will be much more linked to the successful implementation of the strategy rather than staking out a unique position among all existing and potential competitors that they cannot be replicated by others.
Another weakness is a large number of measures per strategic objective. General BSC guidelines suggest 1½ measures per objective, which would have 25 as a more plausible upper limit for a number of scorecard measures. With Exhibit 5 showing 44 measures VWB probably has too many. On a future iteration, the leadership team should determine which indicators are the most important for driving the strategy forward and eliminate measures on the BSC that may be best monitored within a function or area rather than at the leadership team
VWM is implementing a new strategy with the objective of restoring profitability and achieve the #1 market share in Brazil by 2009. This will be done by having their highly-motivated employees work collaboratively with key suppliers, to produce high performance, competitively priced reliable vehicles that are sold and serviced through the best deal networks in Brazil. This will appeal to middle and upper-class consumers.
Analysis
The strategy map in Exhibit 4 and Balance Scorecard in Exhibit 5 help with the implementation of the new strategy. This is further discussed below in the strengths and weaknesses:
Strengths:
If one looks at the Brazilian flag, the national colors are yellow and green which are the colors …show more content…
The Customer metrics include “things that went wrong,” “repairs per 1000 cars sold,” and the brand’s “image quality index.” These do emphasize the importance of designing and producing vehicles with superior quality and building a strong, differentiated brand. The Process metrics include many measures on developing superior suppliers and dealers, introducing new products, and improving quality and capacity utilization. At the end of the day, however, the key to success will be much more linked to the successful implementation of the strategy rather than staking out a unique position among all existing and potential competitors that they cannot be replicated by others.
Another weakness is a large number of measures per strategic objective. General BSC guidelines suggest 1½ measures per objective, which would have 25 as a more plausible upper limit for a number of scorecard measures. With Exhibit 5 showing 44 measures VWB probably has too many. On a future iteration, the leadership team should determine which indicators are the most important for driving the strategy forward and eliminate measures on the BSC that may be best monitored within a function or area rather than at the leadership team