BSA 2 - H August 11, 2014

Case Problem 2 - A

I. Identify the Problem

Volkswagen has a weak performance in the United States market for many

years.

II. Formulate Objectives

By year 2012, Volkswagen will become a part of the mass market

By year 2013, Volkswagen will have surpassed Toyota as the biggest

automaker.

By year 2013, Volkswagen will sell 1 million vehicles.

III. Design Alternative Courses of Action

Volkswagen should double the number of vehicles it produces in the US.

Learn the possible weakness of Toyota to be able to surpass it.

Alter its product line to fit the American auto preferences.

IV. Analysis of Alternative Courses of Action

Advantage:

By producing more, it will have a higher chance of becoming part of the

mass market.

Learning the weakness of Toyota, they will be able to use that knowledge

to improve their vehicle and make it greater than that of Toyota.

 Altering their product line to fit the American auto preferences will enable

them to sell more in the US.

Disadvantage:

Producing more means additional cost for the additional raw materials and

equipment needed.

Learning a competitors weakness may require observation for a certain

period of time, which means it requires time and effort.

Altering the product line requires a laborious study of the Americans auto

preferences, which may be costly.

V. Conclusion

Increasing the sales of a product is indeed difficult especially since the risks are

higher compared to the normal day-to-day risks that an organization, a firm or a

company might encounter. Coming up with a decision involves weighing carefully

all of the options and overlooking all the possible consequences of an action. It

requires the decision makers to be thorough and meticulous as to not make the

wrong decisions.

VI. Recommendation

I strongly recommend that Volkswagen alter their product line to fit the American

auto preferences since their problem greatly concerns the weak performance of

their product in the US. It is the most convenient option for them since it has the

less risk if ever it does not work out. And if it does work out, then they will have

solved their problem on their performance in the US.