Premium Essay

Volkswagen Do Brasil - Driving Strategy with the Balanced Scorecard

In: Business and Management

Submitted By davedeluxe
Words 1610
Pages 7
Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard

Index: 1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? 2. Describe VWB´s new strategy 3. What are the benefits from having all employees understand the strategy? 4. How does the strategy map and Balanced Scorecard help Schmall and Senn implement the new strategy? 5. What are the strengths and weaknesses of the Scorecard and its implementation? 6. What other actions did VWB take to support strategy implementation? 7. How can Schmall and his team use the scorecard to deal with the challenges faced by company in January 2009?

1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)?
Before Thomas Schmall was appointed CEO in 2007, he already gained knowledge about Brazil and the subsidiary while reorganizing production in 1999 to 2003 until he was sent back to Europe. This crucial fact helped him quickly adjust to the different company culture, strategy and overall mindset existing in Brazil. Before analyzing the challenges he faced as CEO in 2007, the question arises why he didn´t respond to the known problems during his four years working in Curitiba? VWB would have saved enormous resources, if they had rigorously responded to the problems earlier. Thus VWB suffered eight consecutive years from losses, lost market share tremendously, made the subsidiary bureaucratic and created an atmosphere of apprehension and instability among the workers, as J.-F. Senn (VP Human Resources) commented.
Problems that Schmall had to cope with can be divided in external and internal ones. Before tackling internal problems, external obstacles need to be analyzed. Their impact has a vital influence on internal actions to remedy impediments within the company. First and Foremost Schmall needed to handle the...

Similar Documents

Free Essay

Volkswagen Do Brasil - Driving Strategy with the Balanced Scorecard

...Product Transforming  the  diagnosis  of  chemical   condition Product:  a  new  web  based  chemical  assessment  tool   Product is  a  web  based  application  that  introduces  a  new  levels  of  rigour  and  science  in  the  evaluation  of  chemical  fertility. Developed  by  the  Australian  chemical  engineering  company,  Client,  the  technology  incorporated  in  Product  utilises  both  xx   analysis*  and  xx  testing#  to  develop  a  comprehensive  assessment  of  chemical  condition. Additionally  the  software  generates  a  chemical  condition  index   for  each  chemical  sample  to  assist  customers  and  partners   to  grasp  the  efficiency  of  that  chemical  in  accessing  and  utilising  required  nutrients  to  support  compound   and  animal   production.   Product  has  been  designed  and  developed  as  an  easy  to  use  and  intuitive  web  based  application  to  facilitate  a  high  level  of   adoption  by  field  partners  and  their  farming  clients  as  the  primary  market  for  this  new  technology.   Product’s  diagnosis  of  a  larger  range  of  chemical  analytics  than  traditional  chemical  assessments  is  the  key  point  of ......

Words: 1266 - Pages: 6

Free Essay

Volkswagen Do Brasil - Driving Strategy with the Balanced Scorecard

...Gestion de projet – Théorie Mise en place de projet ( Permet d’énoncer les facteurs clés de succès, le contenu et les objectifs du projet), 5 Activités : 1. Constituer l’équipe de projet Les équipes de projet sont : * Temporaires : elles ne vivent que durant le projet * Multifonctionnelles : fournissent ainsi le mix nécessaire des compétences * A mi-temps : les membres de l’équipe ont à la fois des objectifs opérationnels et des objectifs spécifiques au projet Essentiel de déterminer les rôles dans le projet dès le début avec les personnes concernées et leurs supérieurs fonctionnels. Cela évite les incompréhensions. Une seule personne par activités, les responsabilités partagées ne marchent pas (risque de répétitions et de confusions). Donner du temps à l’équipe de contribuer au projet permet de l’impliquer et d’assurer de meilleurs résultats. 2. Elaborer une définition de projet et un business case « Pourquoi est-ce que l’on fait ceci et comment ? » 3.1 Environnement Explication de l’origine du projet Référence aux projets associés, business plans ou conclusions d’études précédentes. 3.2 Objectifs Quels objectifs le projet vise à atteindre ? Quels besoins le projet satisfait ? Comment le projet est cohérent avec la stratégie ? 3.3 Résultats attendus Quels bénéfices attend-t-on du projet ? * Financiers  * Non financiers * Autres * Conditions minimales de satisfaction......

Words: 1728 - Pages: 7

Premium Essay

Volkswagen Do Brasil: Driving Strategy with the Balanced Scorecard

...Question 1: How does developing a strategy map and associated balanced scorecard help the leadership team implement the new strategy? Developing a strategy map and associated Balanced Scorecard helps the man-agement team by clearly define the objectives and targets of the new strategy. As it is stated in the case, it is hard to implement a new culture in a company. By identifying the dimensions (Finance, Customer, Internal Process, and Potential and Growth) the management believes will make a difference and help VWB to accomplish the goal of changing the mindset of the company, with the strategy map together with the balanced scorecard it is possible to communicate easily through all levels down to the factory floor. The new strategy has to be under-stood by all employees in order to be successfully implemented. The Balanced Scorecard defines the role of each employee and the Executive Committee re-sponsibilities and how each improvement will be measured helping to clarify how each goal can be achieved. Question 2: How well does the strategy map and the balanced scorecard capture VWB’s new strategy? The main goal of VWB is to enable the company to regain its past #1 market po-sition in Brazil. To do so, they intend to re-brand VWB into a company with en-thusiastic and highly motivated employees in order to achieve high performance. The strategy was based on changing the management approach for working with employees in order to establish a new culture that could......

Words: 808 - Pages: 4

Premium Essay

Volkswagen Do Brazil

...Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard Q&A Case 3 A Business case Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In MODMGT2 K33 Submitted To: Mr. Aaron Escartin Submitted By: Apolinar, Jeneva Marielle Arvesu, Franz Nicole Aurelia, Sarah Mae Basquinas, Judith Bondoc, Maureen Felicia April 4, 2014 1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? Upon Thomas Schmall’s appointment as CEO of Volkswagen do Brasil in 2007, he and his management team had to reverse eight consecutive years of market share declines and financial losses. According to Carsteen Isensee, the situation when he arrived in 2007 was a period of cutting costs and workforce reduction, low corporate morale, and the constant threat of having the unprofitable operations shut down by the head office located in Germany. 2. Describe VWB’s new strategy. Schmall, the appointed new CEO of VWB, wanted to cease the reliance of the company on cost reduction, employee layoffs and capacity downsizing. He wanted to aggressively re-brand VWB into one with enthusiastic and highly-motivated employees who continually introduces high-performance, innovatively-designed cars and light vehicles. A new culture was to be instilled wherein employees would solve problems as they arose, eliminate defects and reduce health and safety incidents...

Words: 1152 - Pages: 5

Premium Essay

Case Analysis Volkswagen

...1. Transcript of volkswagen do Brazil German multinational automotive Members: Natalia Mejia Andrea Rangel Karen Osorio Gustavo Victoria Carolina Mariño FACULTAD DE CIENCIAS ECONÓMICAS Y ADMINISTRATIVAS CLASS: Strategy in action. TEACHER: Sandra Jenina Sanchez. CASE: VOLKSWAGEN DO BRASIL Driving Strategy with the Balanced Scorecard 370.000 Employees Worldwide 61 Production facilities across 21 countries 151 Countries 10 Brands 6.3 million vehicles sold The Automotive Landscape in Brazil (cc) image by nuonsolarteam on Flickr It had the 5th largest land area and population It had the world's 9th largest economy Recently is the largest and most diversified economy in Latin America The automotive sector produced 19% of their GDP. +1.5 million of employes in +200,000 companies Brazil had a TIP capacity of 4 million vehicles per year Total revenue of $74 billion per year 6th largest producer of passenger vehicles 5th largest consumer market GLOBALLY Market share of 10.3% Revenues of €113 billion from sales Automotive Industry Volkswagen do Brazil VWB was the 3rd largest in the VWAG system behind China and Germany. It operated four plants. VWB produced revenues of €7.04 billion It employed about 22,000 people It's focused on small and medium sized vehicles VWB had the most complete portfolio within the brazilian market It offered 22 different models It has a modern product design prototype center located in Sao Paulo. 1953 Timeline Volkswagen do Brazil 1956 1st plant outside......

Words: 818 - Pages: 4

Premium Essay

Leading Change for Strategy Execution

...Change for Strategy Execution Dr. Robert S. Kaplan Baker Foundation Professor, Harvard Business School Executing strategy: Senior executives’ #1 issue The Balanced Scorecard: The Central Component in a New Strategy Execution Management System Private Sector Organizations Financial Perspective "If we succeed, how will we look to our shareholders?” Customer Perspective "To achieve our vision, how must we look to our customers?” Process Perspective "To satisfy our customers and shareholders, at which processes must we excel?” Non Profit and Public Sector Organizations Mission (Customer) Perspective “How do we have a social impact with our citizens/constituents?” Support Perspective “How do we attract resources and authorization for our mission?” Process “To have a social impact and to attract resources and support, at which processes must we excel?” Learning & Growth “How do we align our intangible assets to improve critical processes?” Learning & Growth “How do we align our intangible assets to improve critical processes?” Financial “How should we manage and allocate our resources for maximum social impact?” 3 Palladium Balanced Scorecard Hall of Fame for Executing Strategy® : By Industry 2000-2010 The Management System for Strategy Execution Links Vision and Strategy to Operational Excellence 2 TRANSLATE THE STRATEGY DEVELOP THE STRATEGY • Mission, Values, Vision • Strategic Analysis • Strategy Formulation 1 • • • • Strategy......

Words: 3753 - Pages: 16

Premium Essay

Woklswagen Case

...the strategy: Four HR processes 1. Create Strategic Awareness Communicate Communicate Communicate 2. Align Personal Goals Personal Scorecard Make Strategy Everyone’s Job 3. Provide Necessary Skills Strategic Job Families Strategic Readiness 4. Align Personal Incentives Variable pay Team based You need a formal process to improve workforce readiness. Strategy should be linked to existing HR programs for performance management. How do we align employees to the strategy? 1. Create Strategic Awareness Communicate Communicate Communicate 2. Align Personal Goals Personal Scorecard Make Strategy Everyone’s Job 3. Provide Necessary Skills Strategic Job Families Strategic Readiness 4. Align Personal Incentives Variable pay Team based Communicate “seven times seven different ways” to make strategy everyone’s job Personal relevance brings the strategy to life Sustained communication uses different channels to get the message across • Leadership meetings • CEO random visits to employees • Dear Colleague Quarterly Letter in Mellon News • Learning lunches & informal discussions • Intranet • Working groups facilitated by HR • Staff briefings Source: Presented by Jack Klinck, Vice Chairman, Mellon Europe at BSCol European Summit, June 2005 4 VW do Brasil CEO demonstrates commitment to using the strategy map and scorecard as his strategy management system Mr. Thomas Schmall, CEO of Volkswagen do......

Words: 3979 - Pages: 16

Premium Essay

Kotler

...Ingredient Branding Philip Kotler· Waldemar Pfoertsch Ingredient Branding Making the Invisible Visible Professor Philip Kotler Kellogg Graduate School of Management Northwestern University Evanston, IL 60208, USA p-kotler@kellogg.northwestern.edu Professor Waldemar Pfoertsch China Europe International Business School 699 Hongfeng Rd. Shanghai 201206, China wap@ceibs.edu e-ISBN 978-3-642-04214-0 ISBN 978-3-642-04213-3 DOI 10.1007/978-3-642-04214-0 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2010926489 © Springer-Verlag Berlin Heidelberg 2010 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Germany......

Words: 106805 - Pages: 428