...Global Compact Case Study Final Version 23 March 2007 Better Health and Safety for Suppliers A partnership project between Volkswagen, ILO & GTZ Maria Kristjansdottir Reykjavik University, School of Law mariak02@ru.is Tel: + 354 699 0482 Better Health and Safety for Suppliers Case Abstract This case study focuses on the “Better Health and Safety for Suppliers” project and how Volkswagen AG seeks to strengthen their policy in Health Protection, Promotion and Occupational Safety by promoting social protection, improving safety and health standards and strengthening labour inspection. The project is a partnership project between Volkswagen, the International Labour Organization and the German Corporation for Technical Cooperation. The project entails first facilitating the participation of selected Volkswagen suppliers in Brazil, Mexico and South Africa in audits with respect to Occupational Safety and Health in their workplace. Based on the findings of these initial audits, several recommendations are given and used to generate a checklist for a second review (conducted up to 6 months after the initial audit). A report is then created which documents the audit findings, including any improvements that have taken place at such supplier. When all the suppliers have been assessed, best practices and solutions found across all project countries will be developed and collected into an online network. This network...
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...Global Compact Case Study Final Version 23 March 2007 Better Health and Safety for Suppliers A partnership project between Volkswagen, ILO & GTZ Maria Kristjansdottir Reykjavik University, School of Law mariak02@ru.is Tel: + 354 699 0482 Better Health and Safety for Suppliers Case Abstract This case study focuses on the “Better Health and Safety for Suppliers” project and how Volkswagen AG seeks to strengthen their policy in Health Protection, Promotion and Occupational Safety by promoting social protection, improving safety and health standards and strengthening labour inspection. The project is a partnership project between Volkswagen, the International Labour Organization and the German Corporation for Technical Cooperation. The project entails first facilitating the participation of selected Volkswagen suppliers in Brazil, Mexico and South Africa in audits with respect to Occupational Safety and Health in their workplace. Based on the findings of these initial audits, several recommendations are given and used to generate a checklist for a second review (conducted up to 6 months after the initial audit). A report is then created which documents the audit findings, including any improvements that have taken place at such supplier. When all the suppliers have been assessed, best practices and solutions found across all project countries will be developed and collected into an online network. This network...
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...(MNE’s) are Wal-Mart, Toyota Motors, General Motors and Volkswagen for their performance, moreover annual revenue. Decisions with regard to movement in to global arena should be taken with care as there is certain degree of risk involved. There should be value in moving to different markets (eg- An organization may lack the skills needed to make use of the potential-Integrate R&D activities or incompatible cultures The cost of managing complex infrastructure should not –outweigh the benefits of increased scale Some industries posses’ particular globalization challenges for example companies operating in the manufacturing sector (automobile makers) often faces complexities in integration and particularly vulnerable to economic slowdowns which reduces their ability to expand. (Alexander & Korine, 2008) According to Wall & Rees (2004) the factors to be considered when investing abroad can be classified in to four areas-Supply factors, demand factors, Political factors and others. Under supply factors, production costs, Distribution costs and access to key technologies are key considerations. When it comes to production costs foreign locations may be more attractive due to lower costs of skilled or unskilled labor, lower land prices, and tax rates. Furthermore some locations are popular as low cot centers of production. A major factor in distribution is the transportation cost and therefore when moving global the distribution centers will have to...
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...Executive summary Volkswagen is one of the biggest German automobiles manufacturing company, which operate all over the world. The main aim of the company is to become the first automobile manufacturer by 2018 and India became one of the key “element” in this strategy, since India the second fastest growing automobile market. Volkswagen India operates since 2001 when they presented Skoda brand to the Indian car market. Methodology For the following research was implemented realism philosophy, which means that both positivism and interpretivism approaches were used. The main tool, which was used in this particular research, was secondary data, as India country was chosen as a research area, so collecting primary data was impossible. Mainly the annual reports, journal articles and in some cases books were used. As India was chosen for the research, there was no ability to conduct the survey and use primary data. Situation analysis A. The internal environment Review of marketing goals and objectives * 15% annual growth rate for the next five years * To bring new technologies in car market of India * To increase market share twice, to 7% by 2018 * To explore India car market with new dealerships * Raise brand awareness of the company in India It should be mentioned that in order to increase quantity of customers and prove that Volkswagen is company Indian people could trust, Volkswagen introduces Polo GT TDI in 13 September 2013 with remark “German...
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...Table of Contents Introduction ............................................................................................................................................ 2 Volkswagen emission scandal ............................................................................................................. 2 Internal & External Impact of Volkswagen scandal ........................................................................... 3 1. Internal ................................................................................................................................... 3 2. Car Industry ........................................................................................................................... 3 3. Shareholder ........................................................................................................................... 4 Corporate Social Responsibility Report of Volkswagen .................................................................... 6 General Problem with Corporate Social Responsibility Report ........................................................ 8 Implementing Corporate Social Responsibility ................................................................................ 10 Conclusion ........................................................................................................................................... 11 Appendix .......................................................................................
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...Volkswagen Table of Contents Executive Summary p.3 Global Business Environment p.5 Key Competition p.8 Technology p.10 Legal and Regulation p.13 Culture and Society p.15 Sustainability p.18 Stakeholders p.22 5year Operating Performance p.26 Conclusion p.28 Work Cited p.34 Executive Summary Volkswagen is a German automobile manufacturer founded in 1937 by the Nazi Trade Union. In the mid 1930’s, with the German economy in a depression and the German auto industry composed of mostly luxury vehicles, the Germany people couldn’t afford any of the cars. This opened a new market for the “peoples’ car” in Germany. Volkswagen, which means “peoples’ car” in German, wanted to produce good quality cars that were affordable to the people. The car for the people was a blue ocean market in Germany, and the company quickly grew. Despite WWII and the effects it had on Germany and its economy, Volkswagen survived and soon became a symbol of hope for the German future. In 1969, Volkswagen merged with what is now called Audi, to grow and expand the company. As Volkswagen grew and became more profitable they continued to expand globally and acquire new companies becoming the Volkswagen Group. The Volkswagen Group consists of Volkswagen, Audi, Bentley, Lamborghini, Bugatti, Ducati, Porsche, Suzuki, Skoda, SEAT, Scania, and MAN. This once small German car company for the people is now comprised of several...
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...Porsche Agrees Sale to Qatar; Merger with VW May Complete Before 2011 17 Aug 09 http://www.ihsglobalinsight.com/SDA/SDADetail17491.htm The merger between Porsche and VW may be completed ahead of schedule, according to VW Group CFO Hans Dieter Poetsch, but questions are emerging about corporate governance over the process. IHS Global Insight Perspective Significance Qatar Holding will acquire a 10% voting stake in Porsche and 17% in eventual parent group VW Group as a result of its 7-billion-euro investment in the German giant. Implications VW and Porsche are still to enact their own capital increases, VW's will happen in the first half of 2010, whilst Porsche's plans are less concrete, but necessary to pay down the debt pile with which it is struggling. Outlook Questions over corporate governance have already been raised as the power to appoint record and reputation tarnished from the scandals of a few years ago, VW will confidence in its integrity with external investors. Porsche take a 17% voting stake in the Volkswagen (VW) Group as it acquires share options held by Porsche of the last remaining key parts of the merger, tentatively agreed last week (see Germany: 13 August 2009: VW, Porsche Tentatively Agree Merger Details; May Resurrect Auto Union Name). VW will purchase 42% of Porsche for around 3.3 billion euro by 2011, initiating a capital increase of 4 billion euro in preference shares in the first half of next year to fund the ...
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...2012 International Business Globalization - Volkswagen Akshayita Saxena Anirudh Kunjal Avinash Unni Nair Nilisha Aggarwal Rahul Raghunathan Raj Jatheendran Santosh Gaurav Volkswagen – Das Auto INTRODUCTION : A BRIEF HISTORY Volkswagen, in English, translates to “people’s car”, and the German Labour Front originally founded this company in 1937, with the sole purpose of manufacturing cars for the common man, in a German car market dominated by luxury cars. The People’s car, available at a mere 990 Mark, was positioned around factors such as better fuel efficiency, reliability, ease-of-use and economy of usage. Its first prototype, the kdF-Wagen, had a distinctive round shape to its design (the Beetle continues with this design even today) and had about 336,000 takers. By 1946, the Wolfsburg factory was producing close to 1000 cars a month, a remarkable feat in those times. Post the 2nd World War, Volkswagen served as an icon for the resurrection of West Germany, and showed signs of international expansion by selling its first model in the United States of America in 1949, and its sales services were standardized there by 1955. The Golf Type-I model, was given the title “Beetle” by the quirky, hugely popular advertisement campaigns run in the U.S. then, and was officially adopted by Volkswagen only in 1998. By 1961, VW expanded its production line to include Type-III and Type-IV models, and in 1964, VW bought over the Auto Union and the NSU, successfully creating a merger...
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...March 24, 2015 Case Study #1 Volkswagen Group Prepared By: Team 2 Alejandra Alvarez Amanda Kilroy Ryan Musante Bastian Steppin The Volkswagen Group (VW), based in Wolfsburg, Germany, is one of the largest automakers in the world. Comprised of twelve different brands, the automaker maintains a global presence, with more than 100 factories across Europe, North and South America, Asia, and Africa. The company sells its cars in 153 countries. As the world’s 8th largest employer, it has 592,586 workers who produce close to 41,000 vehicles every weekday. Volkswagen boasts many notable strengths, such as strong brand identity (in all 12 of the their brands), dedication to creating customer satisfaction, and excellence in design and engineering. The secret to their success, however, truly lies in their avid dedication to improving efficiency. As efficiency increases, production volume rises, and costs shrink. Throughout their supply chain there have been countless efforts, both large and small, to improve processes, speed up, and lower costs for virtually all tasks that are required to put vehicles into the hands of customers worldwide. Corporate Structure Volkswagen’s corporate structure appears to violate the conventional wisdom of the automotive industry. Firstly, they have a large assortment of brands, each running as its own entity. Each has its own board of directors, and its own annual reports. The brands cater to different markets, either in terms...
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...Marriage & Divorce between Volkswagen & Suzuki INTRODUCTION In December 2009, Japan’s Suzuki Motor Corp. and Germany’s Volkswagen AG (VW) signed a comprehensive alliance agreement. This agreement was a symbol of the common goal shared by both automobile giants – to create one of the top automobile groups in the world. Under their agreement, Volkswagen acquired a 19.9 percent stake in the Japanese carmaker. Suzuki sold its shares to Volkswagen for a staggering 223 billion Yen. Almost half of this money was spent by Suzuki to buy a 1.49 percent stake in Volkswagen. At that point of time, Toyota was the world’s leading manufacturer of automobiles and Volkswagen had been struggling to get to the top for quite some time. Volkswagen's Chairman Martin Winterkorn said at a press conference in Tokyo – “We want to be the world's No.1 automaker by 2018 and Suzuki's cooperation will accelerate the achievement of our goal". Suzuki’s latent ambition was to become the prime automaker in Japan. It intended to rely on Volkswagen to develop eco-friendly hi-tech vehicles like electric cars and gasoline electric hybrids – an area in which it was lacking technical know-how. Suzuki had also envisaged designing & developing diesel engines in partnership with Volkswagen. They agreed to share technologies and cooperate with each other in a number of critical areas. VW agreed to provide its larger-vehicle technologies to Suzuki and in turn the latter agreed to provide VW access to its small-displacement...
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...BSM 3614 Strategy Trimester 2, 2015/2016 BSM 3614 Strategy Trimester 2, 2015/2016 The Strategy Formulation Framework Automobile Industry Volkswagen Lecturer : Mdm Jayanty A/p Kuppusamy Prepared by: Students’ Name | Students’ ID | Boong Lek Yang | 1112702060 | Cheryl Sim Qiao Ping | 1112700828 | Gog Yi Jun | 1112700309 | Pong Fwu Yi | 1121115503 | Yau Shye Hui | 1112702505 | Table of Content Description | Page number | Executive Summary | 4 | List of Tables | 5 | List of Figures | 5 | I Introduction | | II Methodology: The Strategy Formulation Framework | | III Company Background | | The Internal Environment 1. Resources2. Capabilities3. Core Competencies | | The External Environment1. Demographic2. Economic3. Political/Legal4. Sociocultural5. Technological6. Global7. Physical8. Industry | | Porter Five Forces Model1.Threat of New Entrants/Barriers to Entry2.Bargaining Power of Suppliers3.Bargaining Power of Buyers4.Product Substitutes5.Intensity of Rivalry Among Competitors | | IV Analysis 1: The Input Stage 1. Internal Factor Evaluation (IFE) Matrix 2. External Factor Evaluation (EFE) Matrix 3. Competitor Profile Matrix (CPM) | | V Analysis II: The Matching Stage1. SWOT matrix 2. SPACE matrix 3. BCG matrix 4. I/E matrix 5. Grand Strategy Matrix | | VI Analysis III: The Decision Stage 1. QSPM Matrix | | VII Strategy Recommendation | | References | | Appendices | | ...
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...Park) December 7, 2015 Business Project V Abstract Volkswagen is the 2nd largest automobile manufacturer in the world (Rieger, 2013). They have attained this position by providing a wide range of vehicles and services to fit all consumer needs. Their main competition (Toyota) targets the same customer base which makes it important for VW to find new ways of reaching new customers while at the same time maintaining their loyal customer base. The company is currently at a cross road. They are currently facing the worst crisis in its history. Solutions will need to be made in regards to lowering CO2 emission levels in their engines (Gardner, 2015). These solutions will be a huge financial investment by the company. Initially, this investment will set them back as a company. But, if done correctly, it will allow the company to flourish over the next 50 years with the new expansion opportunities in India and Brazil. Three Things That I Did Not Know About Volkswagen Over the course of this ten week Business class, I have learned so much in regards to Volkswagen. The three specific topics that I was not aware of before completing research are as follows: * Over the years, Volkswagen has shown to have a very aggressive promotional campaign. This has been attained by image based advertising. They have found that when customers see the “VW” logo, it signifies character and reliability. Because of this, Volkswagen has developed a strong customer loyalty base, which has...
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...Toyota’s identification or focus on becoming the world’s leading car company was materialized in 2012 when they achieved record sales ahead of Volkswagen and GM which followed closely behind. The car industry however is one characterized by volatility and is highly susceptible to shocks or any slight change in the environment. Competition as well is extremely aggressive, car companies each day fight to be and stay at the top. Competitive advantage is usually short-lived thus Toyota has to constantly be looking for new ways of maintaining their competitive advantage. Their strategy, as highlighted in the case began with a focus on North America in the 1980s and 1990s where the company gained competitive advantage by emphasizing quality with lower manufacturing costs as opposed to their US counterparts. Toyota, continuing into the 1990s shifted its focus slightly to the European market, however they were criticized for designing reliable, yet ‘dull’ cars. The European consumer is deemed to be more style conscious and therefore this early approach by Toyota did not serve the company well. They changed their approach when they introduced the Yaris specifically for the European market which became somewhat of a success. The Toyota Production System has resulted in its success in lowering factory costs tremendously and achieving economies of scale. Strong supplier relationships, effective marketing and strong branding have also contributed tremendously to the company’s success....
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...Foreign Direct Investments: Volkswagen’s Entry Strategy in China’s Car Market 21/1/2013 Content Page Table of Contents Abstract 1 Introduction 1 Literature review 2 Volkswagen rational for China – Dunning’s Eclectic Paradigm. 4 Conclusion 6 References 7 Abstract China is one of the most attractive destinations for Foreign Direct Investments in the world. It is first destination for Inward FDI among developing countries (WTO, 2012). China has developed second world’s largest car market after U.S.A. and has been the largest car producer in the world since 2008. German company Volkswagen (hereafter VW) is the world’s second largest motor vehicle manufacturer after Toyota Motor (CNN, 2012) and the biggest manufacturer in Europe. VW is one of the earliest investors and the biggest foreign car maker in China with 15% of market shares. This report, by applying relevant theories, such as Dunning’s eclectic paradigm or Hymer’s internationalization theory, will explain why VW Company decided to invest in China through joint venture rather than acquisition or Greenfield investment. Introduction Chinese car industry, as well as many other branches, is very young, although dynamic and fast growing. In 1978 Chinese government introduced policy of open doors which allowed foreign companies to invest and operate in China. Since then car sector has developed rapidly from an infant to a mature industry. Moreover, Chinese government provides various...
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...Corporate Corruption: Scandal at Germany-based Volkswagen Introduction Corruption is “the misuse of entrusted power for private gain (Deutsche Welle).” Misuse of power occurs when people in positions of power willfully deviate from established procedures for their personal gain, at the expense of public welfare. Europe’s biggest automobile maker, Germany’s Volkswagen AG, became embroiled in corruption scandals in the summer of 2005. German state prosecutors confirmed on June 30, 2005 that they had opened an investigation into possible fraud and corruption by managers and labor representatives at the car giant (Edmondson p 52). Uwe Dolata, spokesman for the German Association of Detectives (BDK) and an expert in white-collar crime, says, “Corruption is so inherent in German business that the police have created a special division to deal with it (Deutsche Welle).” The Volkswagen scandal case is a classic illustration of what happens when there is failure of corporate governance. History of Volkswagen The word “Volkswagen” means “people’s car”. In Germany there had been many efforts to create simple cars that everyone could afford, but none had met with much success. Even if they were simple enough for the average person, the cars still ended up costing more than the average worker’s yearly wage. In 1930, Ferdinand Porsche set up an automotive design company in Stuttgart, which became known as the Porsche Buro. After much trial and error and more than a few...
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