...sustainable financial performance (Porter, 1991; Ritson et al, 2013). Apart from that, Mintzberg’s concept of strategy is Plan, Ploy, Pattern, Position and Perspective (Mintzberg et al, 1998; Anon, 2009). It is important for the organisation to manage its strategy to be flexible and responsive toward the environmental changes. Audi AG is a German luxury automobile manufacturer with its subsidiaries, Lamborghini, a supercar producer and Ducati, a motorcycle brand. Audi AG is major owned by Volkswagen, a German automobile manufacturer which controls 99.55% of the share capital (Audi, 2009). Audi always undergoes continuous refining of its strategy to ensure the strategies are always up-to-date to fulfill the organisation mission and vision. Today, Audi is one of the major players of luxury auto makers in German, along with Mercedes-Benz, BMW and Porsche (Cato, 2013). In year 2013, Audi has growth rate of 8.3% of its total sales from year 2012. Although there was only moderate economy growth in year 2013, still, Audi managed to generate sales of 1.7million Audi models worldwide (Audi, 2013). It Strategy 2020 which unveiled in 2010 has effectively drives Audi to be leading brand in premium car segment and...
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...leading the way want a big market share. According to this initial situation this paper should show up the actual situation of the Chinese markets and their own brands compared to the German and other manufacturers 1.0 Introduction of the market situation The market for automobiles in China has been the largest one in the whole world for now more than 8 years, as they overtook the leadership from the US market in 2008, measured by the total amount of units produced within a year. Since 2009 the numbers for the total production of automobile units exceed the ones of the total European Union or every other comparable market. Worth to say is the special situation of the Chinese market which has a broad variety in manufacturers and different models. So there are in general many foreign brands and a lot more Chinese brands which are mainly known in the Chinese market. As it is easy to recognize, the Chinese car manufacturers are not able to compete with the western quality, companies like General Motors, Volkswagen, Mercedes, BMW and others have great opportunities to challenge indigenous brands and catch a great amount of the market share. 1.1 Statistics Since 1992 the Chinese automotive market experienced and enormous growth. Back in 1992 only about one million cars were produced. 8 years later the numbers already doubled and about 2 million cars were produced and sold. Later on between 2002 and 2007 the local market grew by an average 21% per year. Nowadays (2014) the total amount...
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...R I N C I P L E T H AT I S T H E F O U N DAT I O N O F O U R E N T I R E C R E AT IV E P RO C E S S – A PA S S I O N F O R CA R S . A PA S S I O N W E WO U L D L I K E TO S H A R E W I T H YO U . > > > E AC H B R A N D I S A WO R L D O F I T S OW N . 4 06 10 12 14 Board of Management/Supervisory Board Report of the Supervisory Board The Board of Management Letter to our Shareholders Group values Financial Communication 18 Volkswagen share 24 Value-based management 26 Corporate Governance 30 40 46 50 53 58 60 66 Management Report Business development Net assets, financial position and earnings performance Volkswagen AG (condensed, according to German Commercial Code) Research and development Business processes Legal matters Risk report Outlook contents 40 ▼ net assets, financial position and earnings performance Sales revenue at prior year level Despite the negative effect of exchange rate movements, the Volkswagen Group generated sales revenue at the level of the previous year. However, earnings reflected unfavourable underlying conditions and special items. 12 ▼ letter to our shareholders Change and progress Our efforts are targeted at the goal of continuously enhancing the value of the Company as you, our shareholders, perceive it. 12 ▼ 14 ▼ 18 ▼ volkswagen share An attractive investment Despite difficult market conditions, the Volkswagen share has been attractive for analysts and investors. 18 ▼ 30 ▼ 40 ▼ 50 ▼ 14 ▼ 30 ▼ ...
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...(1)INTRODUCTION When doing business in an international scale, it is important to understand what international business really means. Therefore according to Rugman & Collinson (2012) international business can be defined as “The study of transactions taking place across national borders for the purpose of satisfying the needs of individuals and organizations. Some of the well known International businesses (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...
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...but there is no onesize-fits-all model for brand architecture. It is important to build a framework based on flexibility. Brands that build strong relationships with their customers are rewarded with higher sales, profits and value over time. The value of the strongest brands continues to rise, according to Interbrand's 2010 best Global brands report – Coca-Cola is worth $70.5bn. Brands that demonstrate their transparency, integrity and authenticity will continue to build successful long-term relationships with their customers. The economic downturn has changed spending behaviour and customers are increasingly more opinionated, savvy and connected. As a result, it has become more important to get your brand architecture and portfolio management spot-on. Brand architecture can typically be described as the branding framework that organises and explains the nature and strategic relationships of each of your brands, working hand-in-hand with your portfolio management. Ultimately, both your architecture and portfolio influence how stakeholders relate and interact with your company's products and services. Getting it right or wrong affects the financial value of customer relationships. Therefore, we can all benefit, on a number of levels, by fully understanding brand architecture, identifying the best and most valuable arrangement for products and services, and making demonstrable progress towards it. This article touches on the traditional models of brand...
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...strategy and related tactics were first illustrated by specific examples and then surveyed in light of contemporary public relations and mass communication theories. [China Media Research. 2013; 9(3): 64-73] Key words: Audi, brand, reposition Introduction Audi, a subsidiary of German car manufacturer Volkswagen, entered the Chinese automobile market in 1988. In the late 1990s, or one decade after its China debut, Audi, with the help of Ruder Finn, a New-York based independent PR firm, began to implement a brand repositioning strategy in China. By the mid-2000s, thanks to its unremitting PR efforts, Audi has successfully repositioned itself from a government car brand to a premium car brand targeting successful business professionals (Ruder Finn, 2007). Since the launching of its China production in 1988, Audi was designated as the “premium government car brand” dedicated to serve high-rank government officials. In contrast, middle and low ranking government officials were only allowed to use Red Flags and Santana. Consequently, during the 1990s, Audi was largely perceived as “the government car brand” among Chinese general public (Li, 2005). The implications of such brand image are two-fold. As a government car serving exclusively the high-rank government officials, Audi symbolizes unchallenged status and power. Meanwhile, such...
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...Unit 6: Business Decision Making Introduction Market research is the act or gathering information, analyzing it and interpreting the results gained for a product or service and using them for your benefit. It is a very important part of making the marketing strategy for any company (Entrepreneur n.d.). Without proper insights from the market and information regarding consumers there is a high chance new initiatives an organization makes may likely fail or the ones existing in the market might not be able to grow or survive. X Ltd. is facing a decline in sales which is in part due to the slowing down of sales industry wide and also due to the change in preferences of the younger generation. In order to find out the reasons for this and also understand what the consumers actually want, a thorough market research project needs to be conducted. 1.1. Create a Plan for the Collection of Primary and Secondary Data for a Given Business Problem For X Ltd., the target market includes the areas in which their 15 garages operate and the people living in these areas. We need to focus on the core issues faced by the business to understand the underlying reasons behind them and from there implement solutions to solve these problems. The idea is to collect both secondary and primary information and then take it forward from there. Data can be collected in qualitative and quantitative form depending on the objective of the business. Quantitative data is numeric in nature and can be gathered...
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...order to determine the fair value of the Group’s share price and to conclude whether it is over- or undervalued. The BMW Group is one of the largest automotive manufacturers that focus on the premium segment, producing both automobiles and motorcycles. The Group is headquartered in Munich, Germany and its business operations are divided into three segments: Automotive, Motorcycle and Financial Services, where the Automotive segment provide by far the largest source of revenue. The BMW Group is analyzed by conducting a strategic and financial analysis, where several models are applied and financial drivers thoroughly analyzed from a historical perspective. The findings from these analyses act as a foundation for forecasting the future performance of the Group. The share value is estimated by utilizing the discounted cash flow (DCF) valuation model on the forecasted figures. A multiple valuation model (EV/EBITDA) is also conducted in order to triangulate the value derived from the DCF valuation with a relative valuation based on market multiples. Empirically, the thesis relies on both primary and secondary data such as interviews with equity analysts, annual reports, academic books and articles, research papers, news articles from approved websites and data from the Bloomberg terminal database and Thomson ONE Banker. The automotive industry was severely hit by the financial crisis in 2008-2009, which affected global vehicle sales...
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...Kevin Huong Prof. Erickson MKTG 10300 May 4, 2012 Porsche Analysis Paper Porsche is success in the automobile sector and its involvement in VW. Porsche is by far the largest sports car maker in the world. In recent years it enjoyed the highest profit margin in the industry, thus enabled it to acquire the giant Volkswagen group. However, the global financial collapse ruined its takeover plan, eventually resulted in counter takeover by Volkswagen. Porsche Automobil Holding SE was founded on June 26, 2007 at the extraordinary general meeting of Porsche AG, with a unanimous vote of the shareholders. At the time, the objective was to spin off the operative automobil business as a wholly owned subsidiary and to create the holding company as a business unit responsible for managing equity investments. Share holders of the Dr. Ing. h.c. F. Porsche AG voted unanimously in favor of the operating activities of Porsche AG becoming the responsibility of a hundred percent subsidiary in accordance with the provisions of the Transformation Act, of adopting a controlling and profit transfer agreement between the holding company and the operating subsidiary, and also of transforming the holding company into a European Company, a so-called Societas Europaea (SE). The name “Porsche Automobil Holding” was also unanimously approved. The company’s headquarters is located in Stuttgart. Porsche is a well-known European automobil industry that has been for over 60 years, and is a holding company...
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...1. Market 1. Market Size |‘000 |2006 |2007 |2008 |2009 |2010 |% Growth | |Babies/ Infants (0 – 2 years) |141 |144 |150 |152 |152 |7.6 | |Kids ( 3 – 8 years ) |333 |334 |343 |343 |335 |0.7 | |Teenagers (9 – 12 years) |252 |256 |259 |258 |257 |1.8 | |Teens (13 – 19 years) |436 |464 |486 |490 |492 |12.7 | |People in their twenties |592 |610 |654 |686 |700 |18.3 | |People in their thirties |737 |761 |794 |817 |833 |13.0 | |Middle-Aged Adults (40 – 64 years) |1,542 |1,628 |1,735 |1,799 |1,853 |20.1 | |Older Population |368 |391 |418 |443 |455 |23.9 | Table 1.1a Consumer Segmentation: 2006 - 2010 According to the Social National statistic Euromonitor International, Singaporeans...
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...survey in the Hungarian automotive industry István Jenei1, Krisztina Demeter2, Andrea Gelei3 Budapest University of Economic Sciences and Public Administration, Hungary Abstract Supply chain management (SCM) usually goes beyond company boarders. Cooperating parties are required, who decide to work together. The way how this cooperation evolves depends on the strategies and practices of the parties. In this paper we examine the connection between strategies and SCM practices. Our objective is to analyze how strategy determine the SCM tools used among supply chain parties. The analysis is based on 17 interviews within two supply chains from the Hungarian automotive industry, where supply chains are defined through the car makers (Audi, Suzuki) as focal companies. Our results support the proposition that the connection between strategy and supply chain tools (configurations and practices) is very strong. It is underlined with not only the comparison of the two supply chains but can also be detected in the strategic change at one of the focal companies which resulted in supply chain changes, as well. Besides the main objective a detailed view is provided about the past, present and future of the Hungarian automotive industry. Keywords: Supply chain, supply chain management, strategy, automotive industry, Hungary Introduction content of strategy is required to operate successful partnerships (Dyer – Nobeoka, 2000). So the way Supply chain management (SCM)...
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...export businesses) Chinese’s life and uplifts his social standing. The market is expected to further grow disproportionately with the rise of Chinese elite. For reference, it is expected that 3.5 million people in China will have the financial means to buy a premium car by 2015 up from 1.8 million today. Furthermore, the global exposure and education has also contributed to a greater awareness of premium cars and differentiation from mass segment. There is thus a tremendous scope for Jaguar Land Rover to further exploit this opportunity. Not unexpectedly, the segment is dominated by global brands. Brand value, technical competence and price insensitivity of buyer seem to be the major reasons for absence of any home-grown competitors. Audi, BMW and Mercedes-Benz accounted for roughly 76 per cent[3] of premium car sales in...
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...Honda in Europe( INTRODUCTION The Honda Motor Company first entered the European market in the early 1960s through the sale of its motorcycles. The company’s motor vehicles were introduced into Europe at a much later date. Honda’s motor vehicle sales in Europe have been relatively poor, especially in the previous five years. Despite its huge success in the North American market, Honda is struggling to gain a significant foothold in the European market. Honda executives wonder why their global strategy is sputtering. Is global strategy just a pipedream, or is something wrong with Honda's European strategy? History of Honda In 1946 Souichiro Honda founded the Honda Technology Institute. The company started as a motorcycle producer and by the 1950s had become extremely successful in Japan. In 1956, Honda entered the US market and was able to position itself effectively, selling small sized motorcycles. In the early 1960s, the company commenced automobile manufacturing and participated in Formula-1 racing (F-1) to assist its technology development. Thanks mainly to its F-1 efforts, Honda became recognized, not only in Japan but in the rest of the world as well, as a technological savvy company. Up to the early 1990s the company had experienced serious organizational mismanagement resulting from tension between the technology side and the marketing-sales side. The situation became so dire, that the technology biased president and founder, Souichiro Honda, was...
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...2015, due to the recent partnership between Fiat and Chrysler and the creation of Fiat Chrysler Automotive Group, Alfa Romeo is returning to North America. Three key problems have been identified that must be overcome for Alfa Romeo to be successful in the Canadian market place and North American market overall. The first is to develop strong brand recognition, the second is to achieve market share in the North American and Canadian market specifically, and finally the venture into Canada and North America must prove to be profitable. From the analysis, it is evident that as in Europe the North American and Canadian market is fierce with competition. There are currently many strong contenders in the market such as BMW, Mercedes-Benz, Audi and...
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...Volkswagen Group Business Strategy & International Management Content 1 2 Introduction Volkswagen Group 2.1 2.2 Figures, Data, Facts History 2 2 2 4 5 5 6 8 8 10 12 12 15 16 17 18 3 Strategy Planning 3.1 3.2 Overall Strategy Strategy 2018 4 Business Risk Analysis 4.1 4.2 Porter’s Five Forces Resources and Capabilities 5 Financial Risk Analysis 5.1 5.2 Key Financial Figures Risks 6 7 8 SWOT-Analysis Conclusion References 1 Business Strategy & International Management 1. Introduction Whenever you visit another country and you say that you come from Germany on of the first things you ever hear is “Germany, oh I like German cars” and then they say e.g. BMW, Mercedes or Audi. That shows that German cars are not really German cars, instead they are world cars, produced and sold in countries all over the world. In my case I choose the Volkswagen Group because it is the biggest German car manufacturer and the second largest in the world. Moreover the strategy of Volkswagen is to be the largest car manufacturer until 2018. To reach this goal it is very important to understand the globalized world to compete with their competitors in a more and more competitive environment. Furthermore it is very important to show attention to emerging markets to increase the company’s sales especially when some markets like America and Europe are satisfied. In this report I want to analyze the Volkswagen...
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