Running head: VOLKSWAGEN STRATEGY 1

STRATEGY

Written Assignment Unit 3

University of the People

28th April 2020.

VOLKSWAGEN STRATEGY 2

In your own words, what is Volkswagen’s Strategy in 2018 that was originally announced in

2008?

Volkswagen’s strategy was to become the number one vehicle manufacturer company in terms

of profitability, market share, customer acceptance and to consistently maintain this position.

What do you believe were the most important key elements of Volkswagen’s Strategy 2018?

Where did they fail?

The most important key elements of Volkswagen’s Strategy 2018 are; Innovation, Market Share,

Productivity, Excellent employer.

I believe the company failed was on its excellent employer line, this is seen in terms of the

culture within the organization. The culture had a ripple back effect on a lot of aspect and studies

believed if the work environment was enabling and encouraged subordinate line manager

feedback, the emission scandal might not have happened. Hence as on of their bounce back

strategies, they did things differently for the employees. [ CITATION Str17 \l 2057 ]

In order to execute Strategy 2025 (which supersedes Strategy 2018) in response to an

emissions scandal, do you believe what was suggested in the article is the best approach?

Supported by credible resources, discuss why it is the best approach or propose a better

approach.

The issue with the company had initially originated from its own internal cultural failure to its

failure in the market place and reputational damage. It is only efficient for the company to first

address its own internal failure before attempting to change public perception. Further review has
VOLKSWAGEN STRATEGY 3

shown that there is significant correlation between organizational culture and productivity

[ CITATION Sha19 \l 2057 ]

Improving the brand image and regain customer trust was just as important as changing the

internal culture with about five (5) steps. Without regaining the trust of customers, any form of

publicity and marketing would amount to waste of funds [ CITATION Lin15 \l 2057 ]

Improve Quality and Productivity was one aspect the company failed at and to make a

difference, proper research and development to improve efficiency coupled with the already

motivated employees to reduce cost, gradually come out of the negative profit margin as a result

of the liabilities incurred.[ CITATION Atkst \l 2057 ].

Its normal to rely on someone whose reputation has not been tarnished to help you get back on

your feet. This approach is seen in the partnership with the battery making company.

Because there is no one singular right approach to doing a comeback, an additional approach

could have been to limit the number of variants of vehicles out in the market, this would have

helped with reduction of cost as well as concentration of effort to rebuilding the image of the

brand

Discuss whether the overarching vision driving Volkswagen’s Strategy 2025 is clear and

whether the approaches they are taking will help them achieve it. Why or why not?

This time, Volkswagen plans to become a world-leading provider of sustainable mobility. They

have focused on some key areas but one missing aspect of their strategy is a well defined market

segment. There is no mention on how it intends to sustain or improve or even seek to engage the

current generation of customers. Another aspect they have considered well is the environment

which is the backbone of the issue they had. “We take on responsibility for the environment and
VOLKSWAGEN STRATEGY 4

society” shows commitment and a promise not to neglect the environment. The statement “We

are honest and speak up when something is wrong” is to rebuild the trust while promising not to

deceive stakeholders again.

Are the initiatives designed to transform certain areas of Volkswagen’s core business

achievable that are outlined in their strategy 2025? Why or why not?

Looking at “Shaping mobility – for generations to come”, one can understand the intent with

regards to innovation, research and development. Promising to product 30 electric cars, hey have

positioned themselves with eh right partnerships and a dedicated team for innovation
VOLKSWAGEN STRATEGY 5

References

Atkinson, R. D. (August). Competitiveness, Innovation and Productivity. Clearing up the

Cofusion , 3.

Buyer Behavior Definition: Marketing Dictionary. (n.d.). Retrieved from MBA Skool-

Study.Learn.Share: https://www.mbaskool.com/business-concepts/marketing-and-

strategy-terms/7441-buyer-behavior.html

Lindstrom, M. (2015, September 25). 5 Steps To Regain Trust After A PR Disaster. Retrieved

from Fast Company: https://www.fastcompany.com/3051481/5-steps-to-regaining-trust-

after-a-pr-disaster

Principles of marketing. (2015). University of Minnesota Libraries Publishing.

Shahzad, F., Luqman, R. A., Khan, A. R., & Shabbir, L. (2019). Impact of Organizational Culture

on Transformational Leadership and Organizational Performance. International Journal

of Recent Technology and Engineering Special Issue, 979.

Social marketing. (n.d.). Retrieved from OpenLearn: https://www.open.edu/openlearn/money-

business/business-strategy-studies/social-marketing/content-section-3.2

Strauss, K. (2017, July 26). How Volkswagen Rallied Its Employees After Its Emissions Scandal

(At Least For Now). Retrieved from Forbes:

https://www.forbes.com/sites/karstenstrauss/2017/07/26/how-volkswagen-rallied-its-

employees-after-its-emissions-scandal-at-least-for-now/#28cb76d3181b

Yekaterinburg. (2014). Management and Marketing Challenges of the XXI Century . Collection

of scientific papers on the international scientific article competition of young scientists

and students in English language , 30.

VOLKSWAGEN STRATEGY 6