Business Strategy

Assignment title - Volkswagen Group

Scenario 

Volkswagen Group with its headquarters in Wolfsburg, Germany, Volkswagen is one of the world's leading automobile manufacturers and the largest carmaker in Europe. The total number of vehicles delivered to customers in 2010 was 14.7 mil-lion (2008 was 6257 million), accounting for over 10% market share of passenger cars (passenger car) world.

In Western Europe, the largest automobile market in the world, for every 5 new registered cars circulating in the market, with more than 1 car of Volkswagen (20.3%). Profit before tax in 2010 reached a record $ 10 billion increase compared with 2.59 billion in 2009. Net profit of the Group reached 9.42 billion increased 7 times compared to 2009 was 1,344 billion. Revenue rose 21% to 177.5 billion.

Volkswagen announced it would invest US $ 72.24 billion (51.6 billion euros) for 5 year development plan 9 brands worldwide, excluding China. VW said it would partner with $ 14.8 billion invested in this market.

The Group consists of 9 brands from European countries: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, Scania, SEAT, Skoda and Volkswagen commercial vehicle.

On 24/05/2011, Volkswagen has just inaugurated automobile assembly plant worth $1billion in Chattanooga, Tennessee, South America. Chattanooga plant has 2,000 employees, the current capacity of 150,000 units / year, will be expanded to 500,000 units / year. The plant went into operation is a very important milestone towards the goal hegemonic world auto industry in 2018 by Volkswagen AG.

Each brand possesses unique characteristics and operate independently in the market. The product range expanded to include from small cars consume less fuel to the luxury class vehicles.

Products segment includes commercial vehicle truck (pick-up), buses and heavy trucks.
Group operating activities 62 plants in 15 European countries and seven other countries in the Americas, Asia and Africa. Approximately 370,000 employees around the world produce more than 26,600 vehicles and related services each working day. Volkswagen cars sold in over 150 countries.

You are an assistant research analyst working for an international consultancy company’s office in Vietnam. You are to provide a presentation to your office on the following as part of the preparation for the coming discussion with the client, Volkswagen Group by your head office:

Tasks 1
•    Assess how business missions, visions, objectives, goals and core competencies inform strategic planning
•    Analyse the factors that have to be considered when formulating strategic plans
•    Evaluate the effectiveness of techniques used when developing strategic business plans

Tasks 2
•    Analyse the strategic positioning of Volkswagen Group by carrying out an organisational audit             
•    Carry out an environmental audit for Volkswagen Group 
•    Assess the significance of stakeholder analysis when formulating new strategy 
•    Present a new strategy for Volkswagen Group