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Volkswagen Case

In: Business and Management

Submitted By annetfrankema
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A new management team at VW do Brazil develops and deploys a strategy map and Balanced Scorecard to accomplish a turnaround and cultural change after eight consecutive years of financial losses and market share declines. The team uses the strategy map to align financial and project resources to the strategy, and to motivate its more than 20,000 employees by communicating the strategy in multiple ways and installing reward and recognition programs. It also establishes new programs to align the extensive networks of suppliers and dealers to the strategy. But after a sharp decline in sales triggered by the global financial crisis of 2008, the executive team faces a dilemma: should cut back production levels and funding for strategic initiatives until sales recover, or should it continue to invest for the future?

Balanced scorecard to monitor and anlayze the root cause of the problems: market share decline & financial losses BSC was based on strategy map which had power to decode high-level objectives into operational terms that mobile their employee teams

Key problem: cut back production levels and funding for strategy initiatives until sales recover OR should it continue to invest for future

https://www.scribd.com/doc/216303578/Volkswagen-Do-Brasil
Question 1,2, 4, 5, 7

Quetsion 1
Internal & external problems:
External:
* vast decrease in domestic market share * appreciation of Brazilian currency & increases in local labor and raw materials -> leads to that VWB struggled sticking to their export-led strategy & maintainaing production minimum * VWB couldn’t increase prices on shipped products, because of stiff competition -> leads to that excess capacity costs wouldn’t be covered by insufficient export margins

Internal * Inefficient processes on shop-floor and administration, like…...

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