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I just want the expantion of the word cound for the following paragraphs. The word counts are righ next to the outline bellow Operations Management (Inputs, Production Process, Outputs, Total Quality Management, Supply Chain) (260 words)Human Resource Management (Functions, business culture, structure, reward system) (260 words)Financial Operation (raising capital – how, where, what, how much, why, financial graphs, statistics and a short commentary on them) (260 words)Corporate Social Responsibility (its application in business) (260 words)Epilogue (100 words )I will give you the essay , i just need to expand it a little bit
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Volkswagen Business Analysis
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Volkswagen Business Analysis
Introduction
Volkswagen Group is a German-based international car company that sells vehicles in
more than 150 countries. Its products include passenger cars, commercial vehicles, motorcycles,
and engines. The company also offers financial services and operates in other markets as well.
Along with Volkswagen, its other core brands are Audi, Porsche, SEAT, and Skoda. Volkswagen
is one of the world’s top three car makers, and this essay will analyze how it uses business
strategies to stay ahead in the global market.
Business Analysis
Products / Services
The main products of Volkswagen are top-notch vehicles that can be afforded by a wide
range of customers. They have everything from cheap options to luxury models. Along with cars
that run on fuel, Volkswagen has also put a lot of thought into making hybrids and electric cars.
Because of this, there is something in their product line for almost everyone, which also means
that they can sell to a bigger market and make people more aware of environmental issues at the
same time (Máté & Péter, 2022).
Volkswagen is not only known for creating new and exciting products; they are also a
leader when it comes to putting technology in their vehicles. Their cars come with things like
driver assistance systems and really fancy entertainment systems that make the whole driving
experience even better.
Vision, Mission and main objectives
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The mission statement of Volkswagen is “To offer mobility that improves lives,
preserves the environment and ensures sustainability for future generations”. This shows how
much the company wants to give their customers cars that are good for the environment and will
help them save energy (Volkswagon, n.d). Their goal, or vision, is to be “the most successful,
fascinating, and sustainable automotive manufacturer in the world”. They hope to achieve this by
always coming up with new ideas, making sure their products are well made, and keeping their
customers satisfied.
Industry overview, opportunities, challenges, key competitors
Volkswagen is part of a very tough market. Some of its competitors are Toyota, General
Motors, and Ford, which are also big names in the car business. The company’s drive to always
come up with something new, along with changes in what customers want, has led to problems
for Volkswagen in some areas. One problem has been falling sales in China. On the other hand,
there are also areas where Volkswagen could do well. For example, more and more people want
to buy electric cars, and new markets are opening up in places like India and Southeast Asia
(Clayton et al., 2011).
The Volkswagen brand has had some problems in the past few years. For example, there
was a worldwide scandal involving the amount of pollution their cars put out. This caused people
to lose trust in Volkswagen. One result of this problem has been a push to make cars that are
better for the environment. In fact, Volkswagen now makes an all-electric car called the E-Golf
(Máté & Péter, 2022).
Description of the strategy and competitive advantage
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The company has always tried to expand globally while focusing on its core brands. To
go into new markets and add to their collection of products, they have bought smaller car
companies. Their product differentiation, technology integration, and how cheap they are has
helped them compete with other companies (Volkswagon, n.d). Their goal is to be the best at all
three.
It’s clear that Volkswagen follows this plan, but there have been some issues. For
example, in 2015, the United States found out that Volkswagen had been cheating on its
emissions tests. The company had said that its cars were more eco-friendly than they really were.
Volkswagen had to pay billions of dollars in fines (Máté & Péter, 2022). Volkswagen has also
faced challenges while trying to become a bigger player in the American market. In the early
2000s, for instance, Hyundai and Kia from South Korea started selling more cars in the U. S.,
posing a large competition issue (Clayton et al., 2011).
Internal Analysis
Marketing
Volkswagen Group sells its cars using a multi-brand strategy. This means that each brand
is advertised and sold to a certain group of people. This makes it easier for the company to sell
cars in many parts of the market. In order to connect with customers, Volkswagen uses social
media, print ads, sponsorships, and interactive events.
The company has also used other successful advertising campaigns. One of the most
well-known is the “Think Small” ads from the 1960s. At this time, many young people were
looking for cars that were both cheap and fuel-efficient. Because of the way these ads made
people think about Volkswagen, the company was able to say that it was the car of the people.
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Operations Management
Volkswagen Group has an integrated production process that makes sure everything is
efficient and the same across all of its brands in the world. They also try to be eco-friendly by
using energy-efficient methods in their production plants, like renewable energy and smart
logistics. To make sure that their vehicles are of a high quality, Volkswagen follows the
principles of Total Quality Management (Volkswagon, n.d). The company does regular checks
on the quality of parts, tests vehicles thoroughly during assembly, and always tries to get better
by listening to feedback from customers.
Human Resource Management
The business has a different workforce, with more than 153 nationalities represented by
workers at its German headquarters alone. Volkswagen’s inviting nature is one reason for this
diversity; workers are urged to take part in decision-making processes in an open way, which
encourages teamwork and collaboration across different functions within the company (Máté &
Péter, 2022).
Volkswagen also highly values and fosters employee motivation and development
through different types of training, promotions from within, and rewards. These plans have
helped make a good working atmosphere where people like to work, which has been one of the
keys to the company’s worldwide success.
Financial Management
Volkswagen has been successful in raising finances for their business by selling bonds
and stocks. They also make deals with other companies to help them grow and stay stable. This
can be seen in the partnership with Chinese car maker FAW Group, which helped Volkswagen
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get into the Chinese market (Clayton et al., 2011). This shows that they are doing well
financially, even though they have had problems like the diesel emissions scandal.
Volkswagen Group is doing very well financially. They have been making more and
more money every year, and their profits have also gone up. Even though 2020 was a hard year
because of COVID-19, they still made a net profit of €8. 8 billion and brought in a total of €222.
9 billion in revenue (Volkswagon, n.d). One reason why Volkswagen can make so much in
finances is that they are good at managing costs and finding ways to raise capital so they can
keep coming up with new ideas in R&D. Another way Volkswagen has stayed on top is by
buying big parts of other car companies like Audi, Porsche, and Skoda.
Corporate Social Responsibility
In all of its vehicles, Volkswagen has stressed that it is an environmentally responsible
automaker. This means lowering the amount of carbon it releases during production and pushing
sustainable solutions, like its electric vehicle line (Volkswagon, n.d).
Volkswagen shows its commitment to dealing with environmental issues by investing in
clean technology and making its vehicles produce fewer emissions. This is one way that the
company takes social responsibility—it tries to help the communities around it thrive, beyond
just corporate profitability.
Epilogue
Volkswagen Group stays ahead of the competition around the world by making new
products, running their business well, and doing things to help the Earth. They do a good job
making sure that everyone who works for them is taken care of, which also helps them be
successful. They are able to try new things and keep more than one brand because they want to
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do more than just make money. Instead, they focus on making sure that their cars will still be
around for people to drive in the future.
This essay has shown how Volkswagen uses OM strategies to make their cars better for
the environment as well as how they make sure that everyone who works for them is treated
fairly. The last section showed that they are doing very well financially and that they also give
back to their communities. With these three things in mind, it seems like Volkswagen will
continue to grow and perform well in the global automotive market.
.
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References
Clayton, A., Charles, B., Ferrell, B., & Wilcher, W. (2011). Volkswagen Group: Marketing
Strategy Analysis and Profile. Marketing, 1009, 38.
Máté, G. B., & Péter, F. (2022). Volkswagen Group marketing, economic and financial
analysation. In Proceedings of FIKUSZ Symposium for Young Researchers (pp. 603621). Óbuda University Keleti Károly Faculty of Economics.
Volkswagon. “About Volkswagen.” Volkswagen Newsroom, www.volkswagennewsroom.com/en/company3688#:~:text=We%20are%20present%20in%20over,electric%20cars%20onto%20the%2
0road. Accessed 19 Jan. 2024.
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