Volkswagen Essay Example | Topics and Well Written Essays - 2000 words - 1

Volkswagen - Essay ExampleAdditionally, the paper also discusses the companys SBUs and growth strategies to assist the creation of a clearer stance on the breeding of Volkswagens strategic direction. Appraisal of strategic decisions is also conducted to provide direction for further considerations and research. Recommendations focus on the expansion of Volkswagen in developing markets by practical application of current strategies and the enhancement of its position in the markets of India, China and Brazil. 1. Introduction As one of the key players in its industry, German automobile manufacturer Volkswagen stands as the fourteenth largest company in the world according to Forbes (2013). Relying on the foundations of advancing corporate social responsibility and sustainability through its operations, Volkswagens mission extends to the provision of customer satisfaction, which is a practice that the company hopes would lead to its attainment of the first position in the global autom otive industry by the course of instruction 2018. For the purposes of realizing its objectives, the company implements and follows what is known as a group strategy across its parts in order to fulfill its aim of recording 10 million sales of automobiles in a year and generating a pre-tax profit margin of 8% (Volkswagen 2011). This report comprehensively covers the aspects of Volkswagens strategic position and strategic direction in addition to a unfavourable evaluation of Volkswagen Groups strategy to highlight the companys path in meeting its long term objectives effectively. 2. ANALYSIS OF STRATEGIC sic 2.1 External Analysis In examining the external position of Volkswagen Group, this section of the report utilizes the evaluations of tools such as the PESTEL analysis, Porters Five Forces analysis and the industry spiritedness cycle. 2.1.1 PESTEL ANALYSIS POLITICAL The UNECE agreement introduced in 1958 was initiated by the EU to provide an incentive to automakers operating w ithin the political region by diminishing residence costs. While, the UNECE agreement is critical to enhancing Volkswagens cost efficiency the Cars 2020 reform proposed by the EU will allow the company to expand its geographical reach (European perpetration 2013). ECONOMIC Following the global economic downturn, analysts such as Pearson (2013) are predicting a gradual and steady recovery in Europes engage for automobiles which had diminished to a great extent. Both the consistency in demand for cars outside of the EU and a revival in demand within the EU is a positive sign for Volkswagen Group. SOCIAL The market positioning of Volkswagens brands has significantly assisted its aim of catering to the unpredictably of social transitions and changes in consumer preferences. By balancing cars that offer great value and automobiles such as the Phaeton that is designed for the high-end customer, Volkswagen Group is greatly equipped with facing any amendments with regards to social facto rs. expert Volkswagen has increased its investments in R&D and constant innovation owing to the competitiveness of the automobile industry. The relentless efforts of the companys R&D and innovations department have led to the development of technologies such as BlueMotion, Assistance systems and TDI. ENVIRONMENTAL