Read the article: "A Real-Time Case Analysis" and then perform a case analysis that covers the following questions:

• what is Volkswagen's Strategy in 2018 that was originally announced in 2008?
• What do you believe were the most important key elements of Volkswagen's Strategy 2018? Where did they fail?
• In order to execute Strategy 2025 (which supersedes Strategy 2018) in response to an emissions scandal, do you believe what was suggested in the article is the best approach? Supported by credible resources, discuss why it is the best approach or propose a better approach.
• Discuss whether the overarching vision driving Volkswagen's Strategy 2025 is clear and whether the approaches they are taking will help them achieve it. Why or why not?
• Are the initiatives designed to transform certain areas of Volkswagen's core business achievable that are outlined in their strategy 2025? Why or why not?

 

Question:

Read the article: "A Real-Time Case Analysis" and then perform a case analysis that covers the following questions:

• what is Volkswagen's Strategy in 2018 that was originally announced in 2008?

Volkswagen's Strategy 2018 that was announced in 2008 is to maintain the position of the market leader in the automobile manufacturing industry. Key elements of Volkswagen strategy 2025: Innovation, environmental scanning and improving the sale services by proving other such benefits.

• What do you believe were the most important key elements of Volkswagen's Strategy 2018? Where did they fail?

The most important key elements of Volkswagen's Strategy 2018 are; Innovation, Market Share, Productivity, Excellent employer. I believe the company failed was on its excellent employer line, this is seen in terms of the culture within the organization.

• In order to execute Strategy 2025 (which supersedes Strategy 2018) in response to an emissions scandal, do you believe what was suggested in the article is the best approach? Supported by credible resources, discuss why it is the best approach or propose a better approach.

The company introduced a new strategy, Strategy 2025, which supersedes Strategy 2018. The strategy includes 19 initiatives that are designed to improve the company's core business values, build mobility, business solutions, strengthen innovative power, and secure

funding to increase financial viability. To increase financial viability, the former CEO Matthias Mueller suggested reducing the number of models the company makes, and hence saving $9 billion annually. To improve the company's core business, Volkswagen is expected to invest and make 30 or more new electric vehicles by the year 2025. "Volkswagen has created a management structure for coordinating sustainability and Corporate Social Responsibility (CSR),led by the Sustainability Board, which is regularly informed of issues by the Group CSR & Sustainability steering group".

• Discuss whether the overarching vision driving Volkswagen's Strategy 2025 is clear and whether the approaches they are taking will help them achieve it. Why or why not?

It was the customer's faith that was shaken, so the company should try bringing that trust back again. One way to do so is by creating transparency. Once the customers know that their investment won't go in vain, they will start trusting again. Another possible way is re-branding. It's not always easy to forget a scandal. If the company starts the company under a new name, it would be very easy for the company to apply and speed up all the initiatives of Strategy 2025.

• Are the initiatives designed to transform certain areas of Volkswagen's core business achievable that are outlined in their strategy 2025? Why or why not?

Yes, I agree that the Volkswagen's core business are achievable and designed to transform. If the company starts the company under a new name, it would be very easy for the company to apply and speed up all the initiatives of Strategy 2025. While it seems to be achievable to transform the company's core values, but it's not easy to change decades old company's culture.

Case Analysis and conclusion: We saw how a software went undetected for several years and how people in the management were responsible for the scandal in 2015. Different initiatives have been introduced to curb the damage and to gain back the trust. However, I believe things for the company won't work out until the management improve its organizational structure. The company lost its brand image, so the company should focus more improving their brand image. Bringing change within the organization is important but bringing change outside the organization with the existing and potential customers is also important.