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In partial fulfillment of the requirement for the award of degree of Bachelor’s in Business Administration (B.B.A.) 2009-2012
Under the Guidance of:
Ms. HIMANI GROVER
BHARATI VIDYAPEETH INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI ACKNOWLEDGEMENT Through this acknowledgement, I express my thanks towards all those people who helped me for the preparation of this project, which has been a learning experience. I am extremely thankful to Ms. Himani Grover (Faculty) for getting me acquainted to the company and giving me the golden opportunity to carry out this interesting study on VOLKSWAGEN . Last but not least I am also grateful to my friends and all those who directly or indirectly helped me completion of the project.
This is to certify that the project entitled “Study on the various functional aspects & profile of VOLKSWAGEN” submitted by Kaushik, has been done under my guidance and supervision in partial fulfillment of the requirement for the award of BACHELOR OF BUSINESS ADMINISTRATION (BBA) DEGREE. The work and analysis mentioned in this project have been undertaken by the candidate himself and necessary references have been recognized and acknowledged in the text of the report.
Himani Grover (Internal Guide)
INDEX Chapter-1 Introduction • Overview of Indian economy & its sector o Overview of the industry o Company’s contribution in the industry o Scope of improvement • Profile of the Company o History o Nature of Business o Vision & Mission and Organization Structure • Chapter-2 Company Analysis • • • • • Current Issues PEST Analysis Porter’s 5 forces model SWOT Analysis USP of any department Key competitor .
Chapter-3 Marketing Strategy Introduction & Importance • • • Chapter-4 Financial Analysis • • • Chapter-5 HR Polices & recruitment • • • • Sources of recruitment Process of recruitment Training & Development Benefits & Compensation Sources of finance Key investments Ratio Analysis Marketing – mix of the company STP Analysis of the company BCG Matrix .
Chapter-6 Production Policies • • • • • Chapter-7 Findings & Conclusion Production Process Production Layout Quality concepts used by company Key Suppliers Key Customers .
Chapter-1 Introduction .
but subsequently recovered to 7. chemicals. However.9% to a high 6.2% in 2009–10. as free market principles were initiated in 1990 for international competition and foreign investment. Economists predict that by 2020. Major industries telecommunications. Agricultures the predominant occupation in India. transportation equipment. Indian cities have continued to liberalise business regulations. while the fiscal deficit rose from 5. India was under social democratic policies from 1947 to 1991. oilseed. tea. as a result of the financial crisis of 2007–2010. The labour force totals half a billion workers. the country began to develop a fast-paced economic growth.2 billion population live. protectionism. wheat. public ownership.2% of the country's GDP while the industrial and agricultural sector contribute 28% and 14. India will be among the leading economies of the world. pervasive corruption and slow growth.1 percent in rural areas.5% during the same period. jute.4 percent nationwide. Major agricultural products include buffalo. steel. The country's per capita GDP (PPP) is $3. coupled with a poor monsoon. accounting for about 52% of employment. By 2008. rising to 10.290 (IMF. include potatoes. continuing economic liberalisation has moved the country toward a marketbased economy. cattle. water sheep. The economy was characterised by extensive regulation. In recent years. goats. 127th) in 2010. sugarcane. according to the state Labour Bureau. Since 1991. The unemployment rate for 2009–2010. and industrial sector around 14%. India had established itself as the world's second-fastest growing major economy. A revival of economic reforms and better economic policy in first decade of the 21st century accelerated India's economic growth rate. The service sector makes up a further 34%.Overview of Indian economy & its sector Economy of India The Economy of India is the eleventh largest in the world by nominal GDP and the fourth largest by purchasing power parity (PPP). where two-thirds of the 1. food processing. cotton. rice.7% in 2008–09. poultry and fish. textiles. India's gross domestic product (GDP) growth rate significantly slowed to 6. . India's large service industry accounts for 57.6% respectively. was 9. Following strong economic reforms from the socialist inspired economy of a post-independence Indian nation.
India's global economic engagement in 2006 covering both merchandise and services trade was of the order of $437 billion. Ludhiana produces 90% of woollens in India and is known as the Manchester of India. which removed import restrictions. It has since handled the change by squeezing costs.cement. Textile manufacturing is the second largest source of employment after agriculture and accounts for 20% of manufacturing output. The Indian industrial sector underwent significantly changes as a result of the economic reforms of 1991. mining. Thus. However. and relying on cheap labour and new technology. which used a smaller sample size than earlier surveys.5% of world trade as of 2007 according to the WTO. brought in foreign competition. including the threat of cheaper Chinese imports. this has also reduced employment generation even by smaller manufacturers who earlier relied on relatively labour-intensive processes. led to privatisation of certain public sector industries. According to the World Trade Statistics of the WTO in 2006. In absolute terms. revamping management. statistics from a 2009-10 government survey. up from 16% in 1990–91. India's total merchandise trade (counting exports and imports) was valued at $294 billion in 2006 and India's services trade inclusive of export and import was $143 billion. machinery. up by a record 72% from a level of $253 billion in 2004. information technology-enabled services and pharmaceuticals. India's total trade in goods and services has reached a share of 43% of GDP in 2005–06. improved infrastructure and led to an expansion in the production of fast moving consumer goods. petroleum. suggested that the share of agriculture in employment had dropped to 45. Tirupur has gained .5%. However. India currently accounts for 1. liberalised the FDI regime. Post-liberalisation. the Indian private sector was faced with increasing domestic as well as foreign competition. India's trade and business sector has grown fast. Sectors of Indian economy Industry and services Industry accounts for 28% of the GDP and employ 14% of the total workforce. providing employment to over 20 million people. India is 12th in the world in terms of nominal factory output. Previously a closed economy.
5% in 1991–2000. The share of the Indian IT industry in the country's GDP increased from 4. Mining forms an important segment of the Indian economy.  Information technology and business process outsourcing are among the fastest growing sectors. on the supply side. up from 4. In 2009. seven Indian firms were listed among the top 15 technology outsourcing companies in the world. but growing at double digits. ochre.5% in 1951– 80. including iron ore. Some hospitals woo medical tourism. phosphorit eand silica sand Agriculture India ranks second worldwide in farm output.1% of the total workforce. The growth in the IT sector is attributed to increased specialisation. and despite a steady decline of its share in the GDP. manganese. and even within states. Agriculture and allied sectors like forestry. with the country producing 79 different minerals (excluding fuel and atomic resources) in 2009–10. The services sector provides employment to 23% of the work orce and is growing quickly. This is matched on the demand side by an increased demand from foreign consumers interested in India's service exports. educated and fluent English-speaking workers. India is 13th in services output. Tourism in India is relatively undeveloped.universal recognition as the leading source of hosiery. or those looking to outsource their operations. Organised retail supermarkets accounts for 24% of the market as of 2008. bauxite.6% between 1997–98 and 2002–03 and contributing to 25% of the country's total exports in 2007–08. Yields per . There are taxes for moving goods from state to state. accounting for 55% in 2007. chromite. up from 15% in 1950. It has the largest share in the GDP. limestone. and an availability of a large pool of low cost. with a growth rate of 7. casual wear and sportswear. having a cumulative growth rate of revenue 33. but highly skilled. over thirty regulations such as "signboard licences" and "anti-hoarding measures" may have to be complied before a store can open doors. Moreover.8 % in 2005–06 to 7% in 2008. Regulations prevent most foreign investment in retailing. asbestos. knitted garments.7% of the GDP in 2009–10. employed 52. mica. gypsum. fluorite. is still the largest economic sector and a significant piece of the overall socio-economic development of India. logging and fishing accounted for 15.
The unorganised sector and microcredit are still preferred over traditional banks in rural and sub-urban areas. 546. jute and pulses. wheat. and made it mandatory for banks to provide 40% of their net credit to priority sectors like agriculture. accounting for 10. India had the world's third largest fishing industry.000 million tons in 2005. with the total utilisable water resources. especially for non-productive purposes.820 square kilometres (211. amounting to 1123 billion cubic metres. followed by six others in 1980. and the unorganised sector. which includes individual or family owned indigenous bankers or money lenders and non-banking financial companies. India's inland water resources including rivers.unit area of all crops have grown since 1950. public and foreign owned commercial banks and cooperative banks. Banking and finance The Indian money market is classified into the organised sector. In 2008. international comparisons reveal the average yield in India is generally 30% to 50% of the highest average yield in the world. or about 39% of the total cultivated area. technology. India is the largest producer in the world of milk. including surface and groundwater. . India receives an average annual rainfall of 1. canals.208 millimetres (47.9% and 8. sugarcane. Prime Minister Indira Gandhi nationalised 14 banks in 1969. cotton and groundnuts. India is also the second largest producer and the largest consumer of silk in the world. However. application of modern agricultural practices and provision of agricultural credit and subsidies since the Green Revolution in India. and also has the world's second largest cattle population with 175 million animals in 2008. comprising private. ponds and lakes and marine resources comprising the east and west coasts of the Indian ocean and other gulfs and bays provide employment to nearly six million people in the fisheries sector.6 in) and a total annual precipitation of 4000 billion cubic metres. is irrigated. producing 77. as well as the second largest fruit and vegetable producer. due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation. like ceremonies and short duration loans. It is the second largest producer of rice.6% of the world fruit and vegetable production respectively.130 sq mi) of the land area. together known as scheduled banks.
like encouraging mergers. the government has approved significant banking reforms.260 in 1969 to 72. reducing government interference and increasing profitability and competitiveness.6%. Since liberalisation.5% respectively. houses. etc. The petroleum industry in India mostly consists of public sector companies such as Oil and Natural Gas Corporation (ONGC). and nuclear power 2.830. More than half of personal savings are invested in physical assets such as land.1 billion worth of oil in the first three quarters of 2010.small-scale industry. cattle. India is the fourth largest consumer of oil in the world and imported $82.7%.860 or 22% of the total number of branches in 1969 to 30.000 villages are covered by a scheduled bank.7%.910 crore (US$1. from 1.270 out of 500. Oil and natural gas fields are located offshore at Mumbai High.7%. the number of bank branches has increased from 8. As of 2010.590 or 42% in 2007. There are some major private Indian companies in the oil sector such as Reliance Industries Limited (RIL) which operates the world's largest oil refining complex.9%. Despite an increase of rural branches.2% and 6. hydroelectricity 24.31 billion) in 2008–09. Hindustan Petroleum Corporation Limited (HPCL) and Indian Oil Corporation Limited (IOCL). and gold. As of 2009. India meets most of its domestic energy demand through . small businesses.800 to 15. The total bank deposits increased from 5. While some of these relate to nationalised banks. to ensure that the banks fulfill their social and developmental goals. Since then.170 in 2007 and the population covered by a branch decreased from 63. India's total proven oil reserves stood at 775 million metric tonnes while gas reserves stood at 1074 billion cubic metres. with the private and foreign banks holding 18. other reforms have opened up the banking and insurance sectors to private and foreign players. of which thermal power contributed 64. The public sector banks hold over 75% of total assets of the banking industry. other sources of renewable energy 7. Gujarat and Rajasthan.835 megawatts (MW). only 32. retail trade.922 crore (US$831. which had an adverse effect on its current account deficit.28 billion) in 1970–71 to 3. Energy and power India's oil reserves meet 25% of the country's domestic oil demand. India's gross domestic saving in 2006–07 as a percentage of GDP stood at a high 32. and onshore mainly in the states of Assam.000 during the same period. India had an installed power generation capacity of 164. Krishna Godavari Basin and the Cauvery Delta.
the Indo-US nuclear deal has paved the way for India to import uranium from other countries. India's dwindling uranium reserves stagnated the growth of nuclear energy in the country for many years. However. wind and biofuels (jatropha.its 106 billion tonnes of coal reserves. India is also rich in certain renewable sources of energy with significant future potential such as solar. sugarcane). . India's huge thorium reserves – about 25% of world's reserves – are expected to fuel the country's ambitious nuclear energy program in the long-run.
also known as the "Detroit of India".5 million every year. Kolkata in West Bengal are some of the other automotive manufacturing regions around the country. annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. Mahindra and Mahindra. making the country the second fastest growing automobile market in the world. behind Japan. with annual sales exceeding 8. India is home to 40 million passenger vehicles and more than 2. India emerged as Asia's fourth largest exporter of passenger cars. According to the Society of Indian Automobile Manufacturers. It is the world's second largest manufacturer of motorcycles. The Chakan corridor near Pune. By 2050. Aurangabad in Maharashtra.6 million cars were sold in India in 2009 (an increase of 26%). Maharashtra is another vehicular production hub with General Motors. with the Indian city accounting for 60 per cent of the country's automotive exports. India manufactures over 11 million vehicles (including 2 wheeled and 4 wheeled) and exports about 1. .5 million in 2009. the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. A chunk of India's car manufacturing industry is based in and around the city of Chennai. Gurgaon and Manesar near New Delhi are hubs where all of the Maruti Suzuki cars in India are manufactured. As of 2009. Tata Motors in the process of setting up or already set up facilities.6 million units in 2009. Volkswagen/ Skoda. In 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world. South Korea and Thailand. with an annual production of more than 2. Ahmedabad with Tata Motors Nano plant and Halol with General Motors in Gujarat.Automotive sector The Automotive industry in India is one of the largest in the world and one of the fastest growing globally.
In the year 2010. Automobili Lamborghini. Lower Saxony.Volkswagen Volkswagen (abbreviated VW) is the world's third largest automobile manufacturer. SEAT. Though India contributes a mere 0.4 million units in 2009 to more than 2 million cars per year by 2014.039 vehicles sold during the year 2009 and registered a sales growth of over 1. manufactures and distributes Volkswagen vehicles in India with headquarters in Chakan Maharashtara . It was established in 2007.Bugatti Automobiles. “Volkswagen Group is banking on India in a big way for their growth in the future. which includes the The car company is headquartered in Wolfsburg.627 vehicles against 3. Germany. the company is planning to increase its market share in the country by 8 to 10% in the next four-tosix years from 1. Experts predict a huge increase in the overall demand for cars in India from 1. Volkswagen India Private Limited is a subsidiary of Volkswagen Group Sales India Private Limited that assembles. Škoda Auto and heavy goods vehicle manufacturer Scania.000% Volkswagen. As a part of the market development Volkswagen . one of the largest car manufacturers in Europe. VIPL recorded sales of 32. Volkswagen is the marques Audi. originalmarque within the Volkswagen Group. Bentley Motors.35% now on the back of its highest selling Skoda Fabia and soon to be launched Polo. is betting big on India with its small car portfolio.3% to the global sales of Volkswagen group.
The trend was not new. In 1933. By then an already famed engineer. The most important newly defined goals are summarised in the sustainability programme presented here. When he opened his own design studio he landed two .Group aims to increase their market share by 8-10% within the next four to six years. Porsche was the designer of the Mercedes 170H. Hanomag 1. Steyr 55. The "People's Car" would be available to citizens of the Third Reich through a savings scheme at 990 Reichsmark. The engineer chosen for the task was Ferdinand Porsche. was becoming smaller and more affordable at each revision. which are listed according to their success rate. about the price of a small motorcycle (an average income being around 32RM a week). as Béla Barényi is credited with having conceived the basic design in the middle 1920's. the Hans Ledwinka's penned Tatra T77. the German Labour Front (Deutsche Arbeitsfront). In the early 1930s German auto industry was still largely composed of luxury models. where it is pronounced currenttagline or slogan is Das Auto (in English The Car) The Volkswagen Group has set itself Group-wide goals to improve its sustainable development performance. Despite heavy lobbying in favour of one of the existing projects. Seeking a potential new market.Josef Ganz developed the Standard Superior (going as far as advertising it as the "German Volkswagen"). spokesperson. state owned factory. and worked at Steyr for quite some time in the late 1920s. [fɔlks ˌvaːɡən].3L. Also. some car makers began independent "peoples' car" projects – Mercedes' 170H. with many of the above projects still in development or early stages of production. a very popular car amongst the German elite. as well as the 2009/2010 report objectives.” Kurt Rippholz. Adler's AutoBahn. Adolf Hitler declared his intentions for a state-sponsored "Volkswagen" program. Its HISTORY of Volkswagen Volkswagen was originally founded in 1937 by the Nazi trade union. among others. Volkswagen group said Volkswagen means "people's car" in German. in Czechoslovakia. and the average German rarely could afford anything more than a motorcycle. Hitler chose to sponsor an all new. Hitler required a basic vehicle capable of transporting two adults and three children at 100 km/h (62 mph).
VW Type 82E Erwin Komenda. the Type 82 Kübelwagen ("Bucket car") utility vehicle (VW's most common wartime model). though one Type 1 Cabriolet was presented to Hitler on 20 April 1938 (his 49th birthday). REME.separate "Auto für Jedermann" (car for everybody) projects with NSU and Zündapp. Dr. The factories were placed under the control of Oldham-born Hirst. both motorcycle manufacturers. the plan was to use it for military vehicle maintenance. This factory had only produced a handful of cars by the time war started in 1939. developed the car body of the prototype. now called Wolfsburg. which was recognizably the Beetle known today. and the amphibious Schwimmwagen which were used to equip the German forces. so on 22 June 1934. Major Ivan Hirst. the longstanding Auto Union chief designer. None was actually delivered to any holder of the completed saving stamp books. unclear future The company owes its post-war existence largely to one man. It was one of the first to be evolved with the aid of a wind tunnel. and its heavily bombed factory were captured by the Americans. In April 1945. 1945: British Army. Ferdinand Porsche agreed to create the "People's Car" for Hitler. stalling at prototype phase. War meant production changed to military vehicles. Since it had been used for military . in use in Germany since the early 1920s. At first.. British Army officer Major Ivan Hirst. but the basic concept remained in Porsche's mind time enough. and subsequently handed over to the British. Neither project come to fruition. The building of the new factory started 26 May 1938 in the new town of KdF-Stadt. which had been purpose-built for the factory workers. KdF-Stadt. within whose occupation zone the town and factory fell.
As mentioned above. all rejected it. and its town changed their Second World War-era names to "Volkswagen". the son of the original proprietor of the UK's first official Volkswagen Importer. It was offered to representatives from the British. you're a bloody fool. by complete or partial pastoralisation. and that the car "is quite unattractive to the average motorcar buyer. Surrey. Volkswagen would manufacture a locally built version of Rootes's Hillman Avenger in Argentina in the 1980s. long after Rootes had gone bankrupt at the hands of Chrysler in 1978— the Beetle outliving the Avenger by over 30 years. Famously. no British car manufacturer was interested in the factory. the rules for which industry Germany was to be allowed to retain were set out. Thankfully for Volkswagen. and production was increasing. "the vehicle does not meet the fundamental technical . and "Wolfsburg" respectively. the Allies followed the Morgenthau Plan. and to the German Post Office. Some British Service personnel were allowed to take their VW Beetles back to the United Kingdom when they were demobilised. German car production was set at a maximum of 10% of the 1936 car production numbers.000. in September 1945 the British Army was persuaded to place a vital order for 20. to remove all German war potential. in the Industrial plans for Germany. After an inspection of the plant. the equipment was in time intended to be salvaged as war reparations. As part of this. American and French motor industries. 1945 to 1948: survival in Allied-occupied Germany In Occupied Germany. The car. It was still unclear what was to become of the factory. it was to be dismantled and shipped to Britain. and had been in Hirst's words a "political animal" rather than a commercial enterprise. is too ugly and too noisy … If you think you're going to build cars in this place. Colborne Garages of Ripley. Hirst painted one of the factory's cars green and demonstrated it to British Army headquarters. head of the British Rootes Group. the Volkswagen factory at Wolfsburg came under British control in 1945. In an ironic twist of fate.production. The first few hundred cars went to personnel from the occupying forces. told Hirst the project would fail within two years. young man". Short of light transport. Sir William Rootes. and one of the very first Beetles brought back in that way (UK registration number JLT 420) is still owned by Peter Colborne-Baber.
and became part of the German economic recovery. as it had now been re-formed as a trust. The factory survived by producing cars for the British Army instead. Allied dismantling policy changed in late 1946 to mid 1947. of West German regeneration. In 1949 Major Hirst left association with the company. Heinrich Nordhoff (1899–1968). Volkswagen became a very important element. symbolically and economically. and the . 1948 onwards: icon for the West German regeneration 1949 Volkswagen Sedan Volkswagen Cabriolet (1953) From 1948. In March 1947 Herbert Hoover helped change policy by stating: "There is the illusion that the New Germany left after the annexations can be reduced to a 'pastoral state'.000. Thanks to the protection of British Army Major Ivan Hirst. It cannot be done unless we exterminate or move 25.000 people out of it".requirement of a motor-car it is quite unattractive to the average buyer … To build the car commercially would be a completely uneconomic enterprise". controlled by the West German government. was recruited to run the factory in 1948. a former senior manager at Opel who had overseen civilian and military vehicle production in the 1930s and 1940s. Volkswagen survived the perilous times. although heavy industry continued to be dismantled until 1951.
On its entry to the U. (shipping order 143075) The order consisted of 12 vehicles. The first shipment of cars reached Toronto in December 1952. Volkswagen of America was formed in April 1955 to standardise sales and service in the United States.000 m2) site on Scarboro's Golden Mile. Dealer-installed . the Ford Model T. American exports. a commemorative metal plate mounted on the glovebox and a certificate of authenticity presented to the original purchaser. a 60. On 17 February 1972 the 15. green.000 feet (18. It was marketed as the "Baja Champion SE" in the United States and the "Marathon" Superbeetle in the rest of the world.000. Volkswagen produced its first limited-edition Beetle. service.000-square-foot (5. Volkswagen could now claim the world production record for the most-produced.S.) Although the car was becoming outdated.600 m2) building with administration.government of the State ofLower Saxony. Ontario. (1) 22A beige color. with storage for $4. To commemorate its passing the Ford Model T's record sales mark and its victories in the Baja 1000 Mexican races from 1967 to 1971. the total reaching one million in 1955. Nordhoff pursued the one-model policy until shortly before his death in 1968. innovative advertising. pick-up and camper). Apart from the introduction of the Volkswagen Type 2 commercial vehicle (van. steel-pressed 10spoke 15-inch (38 cm) magnesium-alloy wheels. (1)21A in blue. Volkswagens in Canada – VW Canada ordered their first cars on 10 July 1952. By 1955 sales were on a basis that warranted the building of the fine Volkswagen plant on a 32-acre (130. a chestnut brown and two azure blue. and sandcolor (3) 11GS. and one Ambulance. single make of car in history. and the VW Karmann Ghia sports car. the VW was briefly sold as a "Victory Wagon".007.000 m) was built in 1957. and a growing reputation for reliability helped production figures surpass the levels of the previous record holder. an addition of 60. (3) model 11C. Production of the Type 1 Volkswagen Beetle increased dramatically over the years.034th Beetle was sold. a black. but only sold two units in America that first year. Volkswagen Products were seen in Canada for the first time at the Canadian National Exhibition in August 1952 and were accepted enthusiastically. market. It featured unique "Marathon Blau" metallic blue paint. By 1973. To this. London. during the 1960s and early 1970s. repairs and parts. (2) 24A-M51 in red. Volkswagens were first exhibited and sold in the United States in 1949.000 of parts. showrooms. (1) 23A in blue. total production was over 16 million. (See 1959 Canadian Register of Commerce & Industry held in the Western Libraries at the University of Western Ontario.
These differed substantially from previous vehicles. The US Thing version only sold for two years. Volkswagen added a "Super Beetle" (the Type 113) to its lineup in 1971. electronic fuel injection. Volkswagen introduced the military-themed Type 181. Despite the Super Beetle's (marketed outside North America as the VW 1302. The Type 113 differed from the standard Beetle in its use of a MacPherson strut front suspension instead of the usual torsion bars. and the combination of these two features significantly increased the usable front luggage space. fake walnut inserts in the dashboard (behind the steering wheel and the glovebox cover) as well as Bosch fog lights mounted on the front bumper. a special shifter knob. In 1973. "Thing" in America. the option of a fully automatic transmission. Volkswagen Type 4 assembly line in Wolfsburg as of 1973 . thanks at least in part to Ralph Nader's automobile safety campaigns. Notchback. 1961 to 1973: product line expansion VW expanded its product line in 1961 with the introduction of four Type 3 models (Karmann Ghia. or "Trekker" in Europe and the UK. and again in 1969 with the larger Type 4 (411 and 412) models.options for this limited-edition Superbeetle included the following: white stripes running the length of the rocker-panel. and a sturdier powerplant. with the notable introduction of monocoque/unibody construction. 1973 and 1974. later 1303) popularity with Volkswagen customers. bumper overriders. recalling the wartime Type 82. purists preferred the standard Beetle with its less pronounced nose and its original torsion bar suspension. tapered exhaust tips. Squareback) based on the new Type 3 mechanical underpinnings. Also the nose of the car was stretched 2 inches (51 mm) to allow the spare tire to lie flat. The military version was produced for the NATO-era German Army during the Cold War years of 1970 to 1979.
the estate/wagon version dominated in market share for many years. and in 1969. and water-cooled engines which Volkswagen so desperately needed to produce a credible Beetle successor. and would go on to develop it as its luxury vehicle marque. Audi influences paved the way for this new generation of Volkswagens. introduced in 1973.S. 1974: from Beetle to Golf/Rabbit Volkswagen Passat (1973–1977 model) Volkswagen was in serious trouble by 1973. afastback version of the Audi 80. However. Estate/wagon versions were available in many markets. using many identical body and mechanical parts. The company knew that Beetle production had to end one day. but the conundrum of replacing it had been a never-ending nightmare. VW ultimately merged Auto Union and NSU to create the modern day Audi company. NSU Motorenwerke AG(NSU). First in the series was the Volkswagen Passat (Dasher in the U. the purchase of Auto Union and NSU proved to be a pivotal point in Volkswagen's history. The former company owned the historic Audi brand. Beetle sales had started to decline rapidly in European and North American markets. In Europe. Volkswagen succeeded in purchasing Auto Union. The Type 3 and Type 4 models had sold in much smaller numbers than the Beetle and the NSU-based K70 also failed to woo buyers. Scirocco. known as the Passat. VW's ownership of Audi / Auto Union proved to be the key to the solution – with its expertise in front-wheel drive. Golf and Polo. which had disappeared after the Second World War.In 1964.). . as both companies yielded the technological expertise that proved necessary for VW to survive when demand for its air-cooled models went into terminal decline as the 1970s dawned.
the first of which was produced from the summer of 1974 until the end of . Scirocco. Its angular styling was designed by the Italian Giorgetto Giugiaro). Golf and Polo shared many character defining features. the Derby was discontinued in 1985. After a second model generation. It continued in smaller numbers at other German factories (Hanover and Emden) until 1978. the Scirocco followed. but mainstream production shifted to Brazil and Mexico. which was introduced 1977. driving the front wheels. marketed in the United States and Canada as the Rabbit for the 1st generation (1975–1985) and 5th generation (2006–2009). 1974 to 1990: entering the mainstream Volkswagen Polo (1975–1979 model) While Volkswagen's range of cars soon became similar to that of other large European automakers. which was soon discontinued in 1978. Based on the platform of the not yet released Golf. The pivotal model emerged as the Volkswagen Golf in 1974. Beetle production at Wolfsburg ended upon the Golf's introduction. The coupe was designed by Giorgetto Giugiaro. the Volkswagen Polo followed. a format that has dominated the market segment ever since. the Golf has been the mainstay of the Volkswagen lineup since its introduction. and the mechanical basis for several other cars of the company. There have been six generations of the Volkswagen Golf. Its design followed trends for small family cars set by the 1959 Mini — the Golf had a transversely mounted. In 1975. water-cooled engine in the front. The Derby was for all intents and purposes a three-box design of the Polo. Passat.In spring 1974. The Polo became the base of theVolkswagen Derby. it was built at Karmann due to capacity constraints at Volkswagen. as well as parts and engines. It was a re-badged Audi 50. They built the basis for Volkswagen's turn-around. and had a hatchback.
and Volkswagen rose in the J. The secondgeneration Golf hatchback/Jetta sedan ran from late 1983 to late 1991.595 in 1980. Volkswagen Jetta saloon/sedan. using tooling relocated from the New Stanton. Sales in the United States were 293. Volkswagen Golf Cabriolet convertible. Chairman Carl Hahn decided to expand the company elsewhere (mostly in developing countries). GTI and Jetta models helped Volkswagen briefly in North America. It was a strong seller in West Germany and most of the rest of Western Europe. VW's American sales broke 200. a stylish and spacious three-door hatchback designed by Bertone. The second-generation model. Meanwhile. was an even greater success for Volkswagen. The introduction of the second-generation Golf. engine and chassis.D. The production numbers of the first-generation Golf has continued to grow annually in South Africa as the Citi Golf. Pennsylvania plant when that site began to build the Second Generation car. . being one of the first foreign small cars to prove popular in Britain. North American production of the Rabbit commenced at a factory in New Stanton. Pennsylvania in 1978. when it was replaced by the third-generation Polo in 1994. but by 1984 they were down to 177. Hahn expanded the company by purchasing a majority share of SEAT up to 75% by the end of 1986. In the 1980s. The Japanese and the Americans were able to compete with similar products at lower prices. Volkswagen's sales in the United States and Canada fell dramatically. Pennsylvania factory closed on 14 July 1988. Motor Trend named the GTI its Car of the Year for 1985.000 in 1985 and 1986 before resuming the downward trend from earlier in the decade. and a North American version produced in Pennsylvania went on sale at the start of the 1985 model year. four years after signing a cooperation agreement with the Spanish car maker SEAT in 1982. which VW bought outright in 1990.709.1983 (sold as the Rabbit in the United States and Canada and as the Caribe in Latin America). Power buyer satisfaction ratings to eighth place in 1985. and Volkswagen Caddy pick-up. Volkswagen had entered the supermini market in 1975 with the Volkswagen Polo. Its chassis also spawned the Volkswagen Scirocco sport coupe. and the New Stanton. It was face-lifted in 1990 and was still selling well after 13 years. with only minor modifications to the interior. launched in 1981 and sold as a hatchback and "coupe" (with the hatchback resembling a small estate car and the coupe being similar to a conventional hatchback). It would be produced in the United States as the Rabbit until the spring of 1984. up from 22nd a year earlier. despite the success of models like the Golf elsewhere.
a production version was developed as the New Beetle. and the larger Passat for the segment above the Golf. SEAT León. introduced at the end of 1997 (and in North America in 1999). The Sciroccoand the later Corrado were both Golf-based coupés. based on the Golf's larger platform. but remained Jetta in the U. Volkswagen unveiled the J Mays-designed Concept One.S. Volkswagen launched the third-generation Golf. New Beetle. which was European Car of the Year for 1992.). Audi A3. Audi TT. with SEAT and the further addition of the Czech car maker Škoda being acquired in the late 1990s. a smaller car than the Golf. The other main models have been the Polo.1991 to 1999: moving upmarket In 1991. SEAT Toledo. This move upmarket was continued with the Golf Mk4. The sedan version of the Golf was badged Vento in Europe. now occupying what was once VW's core market. Due to a positive response to the concept. . and Škoda Octavia. based on the platform of the Polo. The Golf Mk3 and Jetta arrived in North America just before the start of 1994 model year. its chassis spawned a host of other cars within the Volkswagen Group —theVolkswagen Bora (the sedan called Jetta in the U. first appearing in southern California in the late spring of 1993.S. The Volkswagen New Beetle In 1994. The late 1990s saw a gradual change in perception of the company's products – with Audi having elevated itself into same league as BMW and Mercedes-Benz Volkswagen moved upmarket to fill the void left by Audi. a "retro"-themed concept car with a resemblance to the original Beetle.
In late 2008. and a new halo vehicle. SEAT Toledo. (The GTI had . The sixth-generation VW Golfwas launched in 2008. Although Bugatti makes a huge loss on every Veyron. VW began marketing the Golf under the Rabbit name once again in the U. the Bugatti EB110 (coupé and saloon) and the Bugatti Chiron. the Murciélago. VW Scirocco. the SEAT Altea. with a top speed of 252 mph (406 km/h). showed three concept cars. after Volkswagen purchased the rights to use the name.000.0 L Turbocharged Fuel Stratified Injection (FSI) direct injection engine. a 4-door saloon for the Lamborghini brand was shown in the form of the Lamborghini Estoque concept. the Golf was Britain's 12th most popular car with nearly 50. The introductions of the New Beetle and the fifthgeneration Passat were a major boost to the brand. For Bentley. and Bugatti due to Ferdinand Piëch" strategy. In 1990. Volkswagen's market share grew throughout the 1990s. and Canada in June 2006.Škoda Octavia and Audi A3 hatchback ranges.S. In the UK. and later the Reventon limited edition halo car. boasts a 2. its future within the Volkswagen Group seemed bright as the launch of the Bentley Continental range helped Bentley post record-breaking sales of 10. but in 1999 theMk4 Golf was Volkswagen's first ever entrant in Britain's top 10 list of most popular new cars. The GTI. SEAT León. 2000 to date: model range expansion Volkswagen began introducing an array of new models after Bernd Pischetsrieder became Volkswagen Group CEO (responsible for all Group brands) in 2002. as well as a new mini-MPV. In the late 1990s Volkswagen acquired the three luxury brands Lamborghini (through Audi). Bugatti then launched the Veyron hypercar. The Mk3 Polo achieved similar success in the mid 1990s.Volkswagen's fortunes in North America improved once the third-generation Golf and Jetta models became available there. Marketing efforts included Trek bicycles with accompanying bicycle racks on the 1996 Jetta sedan.000 units sold. Volkswagen is still going to keep the brand and maybe will launch a new Rolls Royce Phantom-rivaling saloon rumoured to be called Royale. came runner-up to the Opel/Vauxhall Insignia in the 2009 European Car of the Year. a "hot hatchback" performance version of the Golf. Audi's plans for Lamborghini included a small supercar later to be named the Gallardo. Bugatti. and has spawned several cousins: VW Jetta. Bentley.
arrived to North America four months earlier). Profitability has not been strong. VW announced its discontinuance in the U.5 fifth-generation Passat facelift In North America.S. Other models in Wolfgang Bernhard's (Volkswagen brand CEO) "product offensive" include the Tiguan mid-sized SUV in 2008 and a Passat Coupé.S. and VW has announced plans to expand its lineup further by bringing back the Scirocco by 2008. which was critically acclaimed but not well received in the marketplace. . and his design-led strategy has led to Audi being considered one of the most important brands in the world. Winterkorn is credited with making Audi a challenger to the dominance of BMW and Mercedes. VW faced many challenges. Attempts to enter a new market segment also compromised Volkswagen's standing in North America. In 2002. market for the 2007 model year due to the disappointing sales. The sixth-generation Passat and the fifth-generation Jetta both debuted in 2005. and the lack of reliability of the company's cars appears to bear some of the responsibility for this situation. By 2005. and J. and the performance version. In November 2006 Bernd Pischetsrieder announced his resignation as Volkswagen Group CEO. the GLI. and Canada. The fifth-generation Jetta. After rising significantly between 1998 and 2001.D. are also available in the United States and Canada. and was replaced by Audi worldwide CEO Martin Winterkorn at the beginning of 2007. Volkswagen announced the debut of its Phaeton luxury car. its models sat near the bottom of Consumer Reports reliability ratings. Power and Associates ranked VW 35th out of 37 brands in its initial quality survey. The B5. VW's North American sales began to fall sharply leading to a 2005 loss of roughly US$1 billion for its operations in the U.
9 percent increase over 2005. Momentum continued for fiscal 2006. All Golfs/Rabbits and GTIs as of 2006 are manufactured in Wolfsburg.533 vehicles. production location of Volkswagen vehicles also underwent great change.140 vehicles. despite a slump in domestic North American manufacturer's sales.The 2006 Jetta Volkswagen in 2005. Power and Associates 2006 Automotive Performance. a 4. as VW's North American sales for the year were 235. is produced in a new facility in Portugal. despite challenges. where Golfs and GTIs were produced from 1999 to 2006. Germany. VW is also in the process of reconfiguring an automotive assembly plant in Belgium. The new models and investments in manufacturing improvements were noticed immediately by automotive critics. a hardtop convertible. Automobile Magazine's 2007 Car of the Year. VW plans to close out the decade with the release on several new vehicles worldwide and a barrage of advertising. Execution and Layout (APEAL) Study scored Volkswagen fourteenth overall with strong performances by its new Jetta and Passat models. D. . rather than VW's Mexican factory in Puebla. The 2007 Eos. The J. as well as a 2008 Motor Trend comparison ranking the mid-size Passat first in its class.000. one of Car and Driver magazine's "10 Best" for 2007. and the Brazilian factory in Curitiba. In conjunction with the introduction of new models. still maintained North American sales of 224. where Golfs and GTIs for the North American market were produced from 1989 to 1998. Favorable reviews for VW's newest cars include the GTI being named by Consumer Reports as the top sporty car under $25.195—a dramatic increase from the low in 1993 when US sales totalled only 49. (The Jetta has primarily been made in Mexico since 1989).
but a new lineup of diesel engines compatible to U. standards are due for 2008.S. VW has not yet offered a gasoline/electric hybrid powertrain such as that in the Toyota Prius (though a diesel-electric hybrid 5th generation Jetta was produced as a test vehicle).S. Volkswagen began offering the City Golf and City Jetta only for the Canadian market.The fifth-generation Golf.S. which lends class-leading fuel economy to several models. As of 2007. In addition. Volkswagen's introduction of such models is seen as a test of the market for a subcompact and. They were a three-way tie for 8th (TDI Beetle. however. four of the ten most fuel-efficient vehicles available for sale in the U. Volkswagen introduced the Passat and Touareg with TDI engine to India's automobile market in September 2007. In September 2006. Both models were originally theMk4 Golf and Jetta but were later replaced with the Brazilian versions of the Golf Mk4 and Bora. if successful. government emissions regulations have forced VW to drop most diesels from their U. When Martin Winterkorn became the eighth postwar CEO of Volkswagen. engine lineup. Volkswagen has offered a number of its vehicles with a TDI (Turbocharged Direct Injection) engine.S. TDI Golf. Volkswagen is recognised as one of the leading small diesel engine manufacturers. may be the beginnings of a thriving subcompact market for Volkswagen. in 2004 were powered by Volkswagen diesel engines. . The City Golf and City Jetta were introduced to compete with the Toyota Yaris and Honda Fit. strict U. TDI Jetta) and ninth. the company made several personnel changes in Wolfsburg. According to the United States Environmental Protection Agency. For the 2007 model year. the TDI Jetta Wagon. and is partnering with Mercedes and other companies to market BlueTec clean diesel technology. sold in North America as the Rabbit. all Volkswagen TDI diesel engines produced from 1996 to 2006 can be driven on 100% biodiesel fuel. Though the VW Group already had their presence in India with Škoda Auto.
which will be more competitive with North American market leaders Toyota Camry and Honda Accord. Volkswagen announced the latest Polo Blue Motion model with a 1. and to increase the aerodynamics of the vehicle. In February 2010. both economically and environmentally Enhance responsible supply chain management Improve sustainability communications vis-à-vis .2 litre TDI three-cylinder common rail diesel engine rated at 75 PS and 133 ft·lbf (180 N·m) of torque from 2000 rpm. The car is extremely fuel-efficient. Its top speed is 120 km/h (75 mph). This plant will produce cars specifically designed for North America beginning with the New Midsize Sedan. making the entire travel distance capability about 400 miles (640 km) per tank. titanium hubs. which although not very fast is a welcome tradeoff for the huge savings in fuel consumption. each gallon of fuel will take you over 235 miles (378 km). On 15 July 2008 Volkswagen announced that they will construct an automobile assembly plant in Chattanooga. In 9 December 2009. GOALS Responsible management • • • • Establish Volkswagen as a world-leading car-maker. there are no rearview mirrors. Volkswagen AG and Suzuki reached a common understanding to establish a close long-term strategic partnership. the car is equipped with cameras that display visual information to the driver through the internal LCD screen. Every component of the vehicle is intended to reduce the vehicle's weight.The VW 1L will be available in 2010.7 gallons. The 1L is a lightweight two-person vehicle made out of a magnesium frame covered by an unpainted carbon-fiber skin.7 mpg. in limited numbers. Tennessee. Aluminum brakes. The fuel tank holds just 1. This model emits 91g/km of CO2 and has a combined cycle fuel consumption of 80. and ceramic bearings all contribute to the vehicle's light weight of a mere 290 kg. Instead. To reduce the weight even further.9% of Suzuki’s issued shares. Volkswagen will purchase 19. carbonfiber wheels. Production is scheduled to begin in early 2011 and is expected to end more than five years of losses in the world's largest auto market.
reduce the CO2 emissions of our new-car fleet in Europe (EU 27) by 20 percent over 2006 levels by 2015 • • • • • • • • • • • • • • • • • • • • • Use renewable and secondary raw materials Reduce regulated and non-regulated emissions Position the Volkswagen Group as „in best class“ on environmental issues CO2 targets Reduce greenhouse gas emissions Reduce fuel consumption in the test cycle and in everyday operation Support fuel-efficient driving styles Enable the use of alternative fuels.• • customers.and ozone-damaging refrigerants Reduce energy consumption in the manufacturing process Optimise waste air treatment technologies . taking into account regional aspects Improve resource efficiency Develop and make available alternative powertrain technologies Reduction of limited and non-limited emissions Avoid the use of hazardous and harmful materials. dealers and the trade Introduce an IT-based CSR information system Environmental compatibility • Fleet average CO2 emissions target: in order to meet both the ambitious EU threshold values and the expectations of our customers. including odours Reduce exterior and interior noise levels Use Life Cycle Assessments as a controlling instrument Cut energy consumption and CO2 emissions of European production plants by more than ten percent Reduce the release of climate. taking into account regional aspects Enable the use of alternative energy storage systems. wherever possible comply with the world‘s strictest legislation in this field Minimise interior emissions.
check that they are compatible with the materials flow management system Social responsibility • • • Improve human resources development Intensify university marketing Improve employee health Economic agility • • Increasing returns Ensuring liquidity Operations Volkswagen has become a large international corporation from where it started and expanded to different worldwide markets and countries. Worldwide.• When selecting new/innovative manufacturing processes. posted record sales of 6. Volkswagen officially ranks as the 3rd largest manufacturer as measured by OICA in 2009. Scania.29 million vehicles. and is aiming to become. which issued ordinary shares and preferred shares. and Skoda. Volkswagen has had a market share over 20 percent.4%. is situated with other car manufacturers including Audi. The following table shows the current shareholder structure. owned by the Volkswagen Group. Bentley. Ownership Volkswagen is a publicly traded company. Note that neither the Porsche Automobile Holding nor the Porsche GmbH are identical with the . Volkswagen has aimed to double its US market share from 2% to 4% for the year 2014. Volkswagen AG. Germany. the world's largest car maker by 2018. sustainably. with its global market share at 11. Lamborghini. SEAT. Volkswagen. In 2010. The ownership structure is complex. After overtaking Ford in 2008. The world headquarters of Volkswagen are located in its home country in Wolfsburg. Bugatti. Volkswagens core markets include Germany and China. Volkswagen is the third largest automaker in the world. For a long time. Volkswagen is currently Europe's largest automaker.
Ing. .9% are owned by the Volkswagen AG. h. 49. Within the framework laid down by law. Shares Held by 50. Dec 2009 Emirate of Qatar 9.26% as of 16 Feb 2008 State of Lower Saxony 17% as of 18. the Emirate of Qatar. The Porsche GmbH was sold to the Volkswagen AG.37% as of 30 Jan 2009 Porsche Holding GmbH 20. F. Porsche AG.76% as of 30 Jan 2009 Porsche Automobil Holding 2. The Porsche Automobile Holding is owned by the Porsche family. This body consists of Board members and selected top managers with Group management functions. the Group Board of Management ensures that Group interests are taken into account in decisions relating to the Group’s brands and companies. which is responsible for the production of Porsche sports cars.61% widely held ORGANIZATIONAL STRUCTURE OF THE GROUP Volkswagen AG and the Volkswagen Group are managed by the Volkswagen AG Board of Management in accordance with the Volkswagen AG Articles of Association and the rules of procedure for the Volkswagen AG Board of Management issued by the Supervisory Board.Dr.c.
OUTLINE OF THE LEGAL STRUCTURE OF THE GROUP Volkswagen AG is the parent company of the Volkswagen Group.Each brand in the Volkswagen Group is managed by a senior brand manager. The companies of the Volkswagen Group are managed separately by their respective managements. In addition to the interests of their own companies. each individual company management takes into account the interests of the Group and of individual brands in accordance with the framework laid down by law. in particular Volkswagen brand passenger cars and commercial vehicles. It develops vehicles and components for the Group. The rights and obligations of the statutory supervisory bodies of the relevant brand companies remain unaffected. The Group targets and requirements laid down by the Board of Management of Volkswagen AG or the Group Board of Management must be complied with in accordance with the applicable legal framework. Volkswagen AG . Matters that are of importance to the Group as a whole are submitted to the Group Board of Management for approval. but also produces and sells vehicles. In its function as parent company.
Estillo and sedans DZire. Information on the remuneration structure for the Board of Management and the Supervisory Board can be found in the Remuneration Report. accounting for over 45% of the domestic car market. It is the market leader in India and on 17 September 2007. Wagon-R. The company's headquarters are located in New Delhi • Tata Motors . SEAT S.A. in the Notes to the Volkswagen Consolidated Financial Statements and in the Notes to the Annual Financial Statements of Volkswagen AG. Swift. An overview of the significant Group companies can be found in the Notes to the Consolidated Financial Statements. The company offers a complete range of cars from entry level Maruti 800 and Alto.holds interests in AUDI AG. The Volkswagen AG Board of Management is the ultimate body responsible for managing the Group. It is largely credited for having brought in an automobile revolution to India. Maruti Udyog Limited was renamed Maruti Suzuki India Limited. A star. Volkswagen Financial Services AG and numerous other companies in Germany and abroad. monitors and advises the Board of Management and is consulted directly on decisions that are of fundamental significance for the Company. is India's largest passenger car company.. Key Competitors for Volkswagen India • Maruti Suzuki India Limited Maruti Suzuki India Limited a partial subsidiary ofSuzuki Motor Corporation of Japan. It was the first company in India to mass-produce and sell more than a million cars. The Supervisory Board appoints. SX4 and Sports Utility vehicle Grand Vitara. to hatchback Ritz.
finance and insurance. real estate. automotive. The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its mission statement aims to play a major role in the development of the automotive industry and the creation of employment opportunities. It is considered to be one of the most reputable Indian industrial houses with market leadership in utility vehicles as well as tractors in India. with consolidated revenues of USD 20 billion in 2009-10. farm equipment. components. The group has a presence in aerospace.Tata Motors is India’s largest automobile company. leisure and hospitality. It is the leader in commercial vehicles and among the top three in passenger vehicles. logistics. Tata. The Mahindra Group has a global presence with operations on every continent except Antarctica. Mahindra. defense. Hyundai.Ford. and Honda. It currently is the 8th largest car maker in India after Maruti Suzuki. midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer. for the manufacture and sales of Toyota cars in India. Since first rolled out in 1954. not only through its dealer network. Chevrolet.000 workers. industrial equipment. aftermarket. energy. agribusiness.. India. information technology. Tata Motors has products in the compact. construction equipment. the world's second largest bus manufacturer. but also through ancillary industries with a business philosophy of "Putting Customer First" • Honda Siel Cars India Limited . • Toyota Kirloskar Motor Private Limited Toyota Kirloskar Motor Private Limited is joint venture between Toyota Motor Corporationand the Kirloskar Group. and two wheelers. with operations in 79 countries across the globe. Tata Motors has produced and sold over 4 million vehicles in India • Mahindra Group The Mahindra Group is an Indian multinational conglomerate company headquartered at Mahindra Towers in Mumbai. retail. and employs 24.
In 2008. a slanted.Honda Siel Cars India Limited (HSCI) is a joint venture between the Honda Motor Company of Japan and Siel Limited. South Korea. . The Hyundai logo. Hyundai operates the world’s largest integratedautomobile manufacturing facility in Ulsan. Hyundai vehicles are sold in 193 countries through some 6. a Siddharth Shriram Group company. The total investment made by the company in India till date is over Rs. Hyundai (without Kia) ranked as the eighth largest automaker. The company employs about 75. • Hyundai Motors India Limited Hyundai Motor India Limited is a wholly owned subsidiary of the Hyundai Motor Company inIndia. As of 2009. It is the 2nd largest automobile manufacturer in India after Maruti Suzuki.6 million units annually. Mr. Tata. Hyundai Motor Company is a Korean automaker which along with Kia comprises the Hyundai Kia Automotive Group. He took over this post in August 2005. Mahindra. stylized H. symbolizes the company shaking hands with its customer . Headquartered in Seoul. Masahiro Takadegawa is the current President and CEO of HSCI. It was begun in December 1995. the world’s fifth largest automaker as of 2009. Chevrolet andFord.000 dealerships and showrooms worldwide. it is the world's fastest growing automaker. 800 crores. The venture was begun with the aim of delivering Honda's passenger car models and technologies to the Indian market.000 persons around the world. Hyundai. which is capable of producing 1. It currently is the 7th largest car maker in India after Maruti Suzuki.
Chapter-2Company Analysis .
ears and curly tails. • European car industry fails to meet ACEA voluntary agreement The European Automobile Manufacturers’ Association ACEA fails to meet its voluntary . complete with snout. The opening of the Frankfurt International Motor Show (IAA) is targeted by a Greenpeace protest “against the anti-climate model policies of German manufacturers”.Chapter-2 Company Analysis Current issues • 2011 Volkswagen Jetta The Problem: According to Volkswagen.043 • The Volkswagen Auto Group (VAG) had originally planned to merge with Porsche Automobile Holding SE by the second half of 2011 but with massive lawsuits outstanding against Porsche. 20 Greenpeace activists use pink paint to transform three particularly high fuel-consumption models – including an Audi and a Volkswagen – into “climate pigs”. the wiring layout associated with the vehicle alarm and horn is in need of repair. VAG may have to hold off on the merger until sometime next year – leaving Porsche SE scrambling to secure new investment options to carry the company until the merger occurs • “Climate pigs” protest. The recall covers all Jetta sedans built from March 2010 through March The Fix: Dealers will reconfigure the wiring layout. Number of Vehicles Potentially Affected: 71.
Due to conflicts of interest with food production and supply issues however. It is a useful strategic tool for understanding market growth or decline. inserting Environmental factors expanded it to PESTEL or PESTLE.agreement to reduce the average CO2 emissions of its European new-car fleet to 140 grams per kilometre by 2008. potential and direction for operations. STEER analysis systematically considers Sociocultural. trade restrictions. Technological. • Public debate on biofuels hots up Biofuels constitute one component of the Volkswagen Group’s Powertrain and Fuel Strategy. The model has recently been further extended to STEEPLE and STEEPLED. and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Ecological. Economic. business position. environmental law. Economic. Some analysts added Legal and rearranged the mnemonic to SLEPT. biofuels find themselves at the centre of a heated debate. and Regulatory factors. • Political factors are how and to what degree a government intervenes in the economy. Political factors may also include . One of the main reasons is because Volkswagen does not disclose the average CO2 emissions of its cars sold in Germany. • Fifth place in VCD Cars and the Environment manufacturer rankings In the “Cars and the Environment” rankings of the German Association for Transport and the Environment (VCD). Specifically. It is a part of the external analysis when conducting a strategic analysis or doing market research. which is popular in the United Kingdom. Social. tariffs. political factors include areas such as tax policy. and gives an overview of the different macro environmental factors that the company has to take into consideration. and political stability. Volkswagen slips from first place in 2006 to fifth place in 2008 in the category “manufacturers’ environmental commitment”. The growing importance of environmental or ecological factors in the first decade of the 21st century have given rise to green business and encouraged widespread use of an updated version of the PEST framework. PEST analysis PEST analysis stands for "Political. adding Ethics and demographic factors. labour law.
Volkswagen hs to change its production and financial policies with each government change . an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor). technological shifts can affect costs. technology incentives and the rate of technological change. and lead to innovation. career attitudes and emphasis on safety. farming. the organization has to copw up with the changing political environment . Furthermore. Furthermore. trade laws etc changes . quality. automation. which may especially affect industries such as tourism. PEST Analysis of VOLKSWAGEN Political factors . They can determine barriers to entry. both creating new markets and diminishing or destroying existing ones. Social factors include the cultural aspects and include health consciousness. and insurance. minimum efficient production level and influence outsourcing decisions. climate. Furthermore. age distribution. Furthermore. companies may change various management strategies to adapt to these social trends (such as recruiting older workers). Technological factors include technological aspects such as R&D activity. and infrastructure of a nation • Environmental factors include ecological and environmental aspects such as weather. Trends in social factors affect the demand for a company's products and how that company operates. growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer. governments have great influence on the health. For example. population growth rate. politics or the government keep on changing in India and with each new government the financial policies. and climate change.goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). education.
Three of Porter's five forces refer to competition from external sources. Automotive sector is influenced by social factors as in a developing country like India people tend to buy a car once in their life time and the want their car to be the best on hence htey precise on old players in the sector rather than new entrants . Fuel efficiency is a major part of upgrading technology as Indian coustomer mostly prefer Fuel efficiency in their vehicles . Global warming a major issue in this modern world Volkswagen has precised on minimizing carbon emission from its cars an during production Social factors. Porter referred to these forces as the micro environment. Environment has become a major concern for each each organization in automotive sector .Environmental factors. Volkswagen has precised on creating fuel efficient vehicles and less polluting vehicles . requires a business unit to re-assess the marketplace given the overall change in industry information. Attractiveness in this context refers to the overall industry profitability. Automotive sectors technology is upgrading day by day the company with the latest technology rules the market . to contrast it with the more general term macro environment. Technological factors. The overall industry attractiveness does not imply that every firm in the industry will return the same . Porters 5 forces model Porter's Five Forces is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. A very unattractive industry would be one approaching "pure competition". A change in any of the forces normally. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. in which available profits for all firms are driven down to zero. The remainder are internal threats. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. They consist of those forces close to a company that affect its ability to serve its customers and make a profit.
Porter's five forces include .three forces from 'horizontal' competition: threat of substitute products. This five forces analysis. The other elements are the value chain and the generic strategies. etc.profitability. This results in many new entrants.) The most attractive segment is one in which entry barriers are high and exit barriers are low. The existence of barriers to entry (patents. business model or network to achieve a profit above the industry average. the threat of established rivals. and the threat of new entrants. the abnormal profit rate will fall towards zero (perfect competition). have been able to make a return in excess of the industry average. rights. • • • Economies of product differences Brand equity Switching costs or sunk costs Capital requirements Access to distribution Customer loyalty to established brands Absolute cost Industry profitability. Few new firms can enter and nonperforming firms can exit easily. the more profitable the industry the more attractive it will be to new competitors • • • • • . As an industry. Unless the entry of new firms can be blocked by incumbents. Firms are able to apply their core competencies. profitability is low and yet individual companies. which eventually will decrease profitability for all firms in the industry. and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. The threat of the entry of new competitors Profitable markets that yield high returns will attract new firms. is just one part of the complete Porter strategic models. by applying unique business models. A clear example of this is the airline industry.
advances protect that are companies from competition. are able to charge higher prices and achieve higher profits. quality.slags on a bridge Level of advertising expense • • Powerful competitive strategy The visibility of proprietary items on the Web used by a company which can intensify competitive pressures on their rivals. Vertical integration is a strategy to reduce a business' own cost and thereby intensify pressure on its rival. • Sustainable competitive advantage through innovation Competition between online and offline • companies. click-and-mortar -v. This applies to Companies successful with introducing new technology. products Technological and services. the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.The intensity of competitive rivalry • For most industries. • How will competition react to a certain behavior by another firm? Competitive rivalry is likely to be based on dimensions such as price. and innovation. until competitors imitate them. The threat of substitute products or services . Examples of recent technology advantage in have been mp3 players and mobile telephones.
Information-based products are more prone to substitution. as online product can easily replace material product.The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives: • • • • Buyer propensity to substitute Relative price performance of substitute Buyer switching costs Perceived level of product differentiation Number of substitute products available in the market Ease of substitution. • Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage. • • • • Substandard product Quality depreciation The bargaining power of customers (buyers) The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure. particularly in industries with high fixed costs • • • • Buyer volume Buyer switching costs relative to firm switching costs • • Buyer information availability Ability to backward integrate Availability of existing substitute products • . which also affects the customer's sensitivity to price changes.
g. The government rules and regulation are very rigid for entry in the industry. or. labor unions) Supplier competition .• Buyer price sensitivity Differential advantage (uniqueness) of industry products RFM Analysis • • The bargaining power of suppliers The bargaining power of suppliers is also described as the market of inputs. Customers of automotive industry do not tend to attract towards new entrants in the industry.g. when there are few substitutes.. labor. Suppliers of raw materials.ability to forward vertically integrate and cut out the BUYER • • • • • • • Porters 5 forces model of VOLKSWAGEN The threat of the entry of new competitors Automotive industry is very highly capital intensive and to enter as new player in the industry is very difficult . Hence Volkswagen does not face any severe threat from the new entrants of the industry. and services (such as expertise) to the firm can be a source of power over the firm. e. components. charge excessively high prices for unique resources. • Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost or differentiation Presence of substitute inputs Strength of distribution channel Supplier concentration to firm concentration ratio Employee solidarity (e. Suppliers may refuse to work with the firm. .
• The bargaining power of suppliers Volkswagen precise on maintaining relations with its suppliers . rules the market . The threat of substitute products or service India is a developing country and with its economic development. In Indian automotive industry the intensity of competition is very high as competition in the Indian markets . Volkswagen faces high intensity of • The bargaining power of customers The customers of Volkswagen have mixed bargaining power in India as some of their cars are produced in the country and some are imported. If we consider Delhi. SWOT Analysis . the majority of population of Delhi prefer metro (DMRC) in comparison to private transport . Hence the Indian customers do have more bargaining power in comparison to others because Indians do not prefer imported cars because taxes. the public mode of transport is also developing . duties. Hence Volkswagen has high number of suppliers. the upper middle class society has minimum four car for a three member family . which increase the price of the car. Volkswagen has considered development of suppliers in its every major decision . On the contrary.The intensity of competitive rivalry The intensity of competitive rivalry is very high in automotive industry as the organization with best brand name and best promotion. And in the country like India where people are so much adjusting that a family of four adjusts in a single scooter or a motorcycle so they do not consider the need of a car . Nor their suppliers posses any major bargaining power and neither they require bargaining power . the old leaders have a established their brand in the market .
Strengths • It stands apart from all other cars on the road . Weaknesses. Threats: external elements in the environment that could cause trouble for the business. “It is different. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Strengths: characteristics of the business or team that give it an advantage over others in the industry. Opportunities: external chances to make greater sales or profits in the environment. The SWOT analysis is often used in academia to highlight and identify strengths.Volkswagen Chairman Ferdinand Piech is even amazed at the car’s appeal. It is particularly helpful in identifying areas for development . A SWOT analysis may be incorporated into the strategic planning model. If the objective is NOT attainable a different objective must be selected and the process repeated. Strategic Planning has been the subject of much research. given the SWOTs.” he said. a projector a business venture. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. A SWOT analysis must first start with defining a desired end state or objective. First. Opportunities.SWOT analysis is a strategic planning method and Threats involved used in to evaluate in the Strengths. weaknesses. the decision makers have to determine whether the objective is attainable. SWOT analysis of VOLKSWAGEN 1. . and it makes you feel different. opportunities and threats. Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
helped improve the firm’s market position. aluminum. VW's tactic was to recruit managers from Detroit who were capable of establishing good union relations.It’s cute and trendy. labour and rubber. However. a trend that has continued. plastics. the company continues to attempts to enter into long term contracts based on its projections of prices and outsourcing labour . in 1973 wages and salaries rose 19 per cent over the previous year. 2. To meet this threat. increased fuel costs made the shipping of cars to the United States more costly.”2 It’s curved outline. where your company gives top priority to ensuring smooth availability of inputs. In order to mitigate these risks.“It’s like a magnet. • The biggest-selling car design in history gets even better . more comfortable than its predecessor and there are a whole lot more luxuries and new technologies crammed into this nostalgic Beetle. long term contracts are helpful. To overcome this weakness. which go into the production of automobiles. long term contracts dilute the benefits. which was congruent with its general strategy. this also created some problems for VW because it had no experience in dealing with American organized labor. • • The New Beetle’s safety surpasses the rest .The oil crisis in 1973-1974 not only caused a fuel shortage. but also safest small car that has been tested by the Insurance Institute for Highway Safety. . price rises. In a volatile commodity market. if any of a decline in input prices. Similarly. This situation favored setting up an assembly plant in the United States. This tactic. Conversely. Weaknesses Commodity Price Risks VOLKSWAGEN commodity price risks to higher costs due to changes in prices of inputs such as steel.The 1998 model of the New Beetle is the Fuel efficiency . but also to develop the very fuel-efficient Diesel engine. rounded fenders and oversized lights separate it from the other vehicles on the road. They also help minimize the impact of growing input prices. VW used its technological capabilities not only to improve its engines (through the use of fuel injection. For example. for examples).
there are still many people who will treat the Volkswagen Beetle with the same prejudice and distaste they feel for the actions of the Nazis. There is much opportunity for growth internationally. Baby boomers loved their groovy cars as young adults and today’s young adults are looking to rediscover the age that passed. There is also hope the Beetle mania will spread across all of Asia.Would another car company trying to duplicate many trends come and go. Japan is predicted to have the potential to be the second-largest New Beetle market.The first Beetles were manufactured in Wolfsburg. Opportunities • The New Beetle has a global appeal . • • Threats Can trendy stay alive? . Although the war is long since over. • • 3. Could the New Beetle survive if another company could produce more cars of similar attributes faster? • Will history deter some drivers? . at a plant built by the Nazis.5 Threats from Competitors Maruti Udyog Limited . 78 percent of people surveyed in a Pole said that they would definitely or probably consider buying an Indian vehicle while only 25 percent said that of a European brand. Does the New Beetle have what it takes to survive? succeed? If the success of the New Beetle continues there will be other car makers wanting to hop a ride on the bandwagon. Germany.The old Bug was the biggest-selling car design in history. • Capitalize on nostalgic cravings . The Beetle is a strong representation of the past and may find itself setting trends for the future 3.Will the New Beetle survive as long as its predecessor? We see Can the Beetle be duplicated? .Brand loyalties favor Indian vehicles . such as Volkswagen .Americans aren’t the only ones who love this car.The preference for Indian vehicles is more than three times higher than that of European vehicles.
down 26.2 million). Sophistication and prices both shot up. instead of looking up. they teach future pinstripes to look for the USP—the unique selling proposition.935. . Now.103.S. an increase of 4. The company made a net profit of $185 million (INR8..For the fiscal year ended December 2006.542. it held on against the Asian tsunami by offering slightly higher sophistication at a slightly higher price and only slightly worse quality. The company reported a net income of $2. but quality and sales didn’t. It looks like a joint venture between the Chinese taxicab drivers’ union and the Mexican phone company. Last year. In business school.6% from the previous year. Volkswagen’s USP was that. USP of VOLKSWAGEN Chasing maximum volume. Hyundai. of falling Jettas. VW is looking down. Beware.805 million for fiscal 2005. Applesauce served in a Dixie Cup is more thrilling. Tata Motors generated revenues of $3. VW strictly avoids offending anyone with the design of the 2011 Jetta. • Tata Motors Limited In the 2006 fiscal year. Maruti generated revenues of $193.517 million. VW sold more vehicles in Brazil than in the U. it was the only inexpensive Euro brand sold in America.3% from the previous year.2 million (INR154. Unlike Renault and Fiat. until VW decided to emulate Mercedes-Benz with silk purses like the Touareg and Phaeton. which is the world’s second-largest car market after China. for many years.4 million) in the 2006 fiscal year. That is.
The few remaining soft-touch surfaces have now mostly iced over with hard plastic. VW has whacked $1590 off the Jetta’s starting price. and the car seems airy compared with others at its price. with a highway fuel-economy figure of 34 mpg. .Compared with the 2010 model. and the Jetta holds a set through corners without any unruly wallowing or harsh clumping.0-liter S that includes air conditioning. the rest of this new Jetta still feels like a proud son of Germany—albeit one made in Mexico— especially in the particular heft of the doors and the satisfying whump! they make when they close. thanks in part to a stability-control system with no off button. remote locking. which is now $16.765 for the coach-class. The Jetta’s dimensions have been stretched in length and wheelbase. if you can accept the cockpit downscaling. But at least you won’t need gas pumps very often. you don’t get to 60 mph in less than 11 seconds. 2. A multilink rear suspension has been flushed for a simpler torsion-beam setup. We managed an equally impressive—for us—29 observed mpg. especially in the back seat and trunk. Apparently. you can almost hear the Jetta’s interior screaming as its costs have been cut. 115-hp. After hitting an Audi-like high point in the 2005–10 fifth generation. a CD stereo. but the steering response remains as perky as one can expect from 195/65 tires on 15-inch steel rims. and power heated side mirrors. off buttons add a lot of extra cost. However. Even when equipped with a five-speed manual.
some sophistication survived the hatchet. a Mazda 3 is livelier.Toyota Corollas and Hyundai Elantras could definitely take a lesson. . So. but it doesn’t offer the VW’s cabin serenity. The Jetta is what VW’s pinstripes believe the American mass market wants. How’s that for a USP? Not very unique.
Chapter-3 Marketing Strategy .
Firstly. Importance of a marketing strategy Strategy without tactics is the slowest route to victory. into smaller bite sized objectives. sometimes prepares his own recipe as he goes along. or executive board of directors (whoever is in charge) decides on overall In order to achieve this objective the board might split it corporate objectives. One corporate objective might be to increase sales by X%. proposed a Four P classification in 1960. tactics without strategy is the noise before defeat".Marketing strategy It is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. sometimes adapts a recipe from immediately available ingredients. James Culliton. Marketing might get the following objective . this was actually a reformulation of an earlier idea by his associate. who in 1948 described the role of the marketing manager as a "mixer of ingredients". Marketing mix The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. E. Marketing Strategy is something that helps companies achieves Marketing objectives. and at other times invents new ingredients no one else has tried. Jerome McCarthy. However. A prominent marketer. The Four P's concept is explained in most marketing textbooks and classes . Sun Tzu The Art of War. Marketing objectives help achieve corporate objectives and corporate objectives aim to achieve a competitive advantage over rival organizations. a Managing Director or senior management team. who sometimes follows recipes prepared by others.Identify 2 new customer segments. which has seen wide use. assigned to different departments. or increase brand awareness by X%.
It is often referred to as the distribution channel. The business may increase or decrease the price of product if other stores have the same product. It can include any physical store as well as virtual stores on the Internet Promotion – represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Place – Place represents the location where a product can be purchased. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation.It is a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Price – The price is the amount a customer pays for the product. Typical examples of a mass produced tangible object are the motor car and the disposable razor.Marketing mix is often referred towards the "Four P's" Four P’s of Marketing Product . . Packaging also needs to be taken into consideration. To retain its competitiveness in the market. product differentiation is required and is one of the strategies to differentiate a product from its competitors. public relations. personal selling and sales promotion. A less obvious but ubiquitous mass produced service is a computer operating system. Each brand has it seprate and special identity . Marketing mix of Volkswagen 1. • Product Unique brand identity for each name plate Each name under Volkswagen is a brand from Volkswagen itself to Bugatti .
• Price discrimination across the region Volkswagen has price discrimination across various parts of the world .• Complete range Volkswagen deals in complete range of cars from sedans to suv . • Mostly standardized products with minor adaption's 2. VW manufactured and sold small engines to Chrysler and American Motors. • Place Development of distribution partners Volkswagen has précised on development of its distributers . • price Setting price with regard to competitors Volkswagen has always priced its crs with regard to its comptetiors . . • No price competition in the emerging markets As Volkswagen has price discrimination it also has no price competition in emerging markets • Strict cost controlling Volkswagen precise on cost reduction and control 3. These companies urgently needed small engines for installation in their own cars and revenues from these sales improved the financial position of VW . • Separate distribution channel for each brand Each brand under Volkswagen has its own distribution channel .
Examining a topic of interest in which studies are presently quite limited.• 4. such a tool ultimately allows for contextual constraints hindering collective action and dialogue within a community to be reduced. • Brand advertising . use of the Internet for communication at the local level offers a strong example of the phenomenon of glocalization Allowing for removal or reduction of barriers such as fear or embarrassment to communicate. unit. organisation. Developing a naturalistic experiment that examined use of the Internet for communication at the neighborhood level. spatial obstacles. urban disorder. timing. disadvantaged communities to scale something down to a defined level appropriate for their purposes Encouraging social interaction and allowing for collective communication within a small space faced still with challenges to communication. they cultivate an increased awareness that this tool affords communication locally as much as it does across distant space. By definition. Keith Hampton offers a meaningful example of this reality through his study of Internet use by local communities of urban underclass citizens. Hampton was able to determine that connection across distance may not be the only affordance of Internet-based communication Rather. in this light. the media is nonetheless a tool also capable of having an impact on a more local stage. the term “glocal” refers to the individual. communication by Internet thus presents a means for even local. group. • • International standardization of dealers Promotion Glocalized communication Glocalisation (or glocalization) is a portmanteau word of globalization and localization. A powerful means if making connections on an international scale. when a critical mass of individuals within a shared local environment adopts the Internet for communication. according to his studies. and community which is willing and able to “think globally and act locally. division. Hampton was able to identify the role of the media in encouraging local social cohesion and community engagement. and victimization.” The media presents another important realm in which glocalization is made apparent.
BEETLE a cars which “It is different.Volkswagen advertises each brands seprately • Emotionalization Emotionalization is To give something an emotional quality . STP Analysis • Segmenting Segmenting is the process of dividing the market into segments based on customer characteristics and needs. These are: 1. determining who the actual and potential customers are 2. The main activity segmenting consists of four sub activities. identifying segments . Volkswagen has attached a emotional quality to each car it produces .” Name of each car attaches a emotion with the car . and it makes you feel different.
The first three sub activities are described as the topic competitor analysis. psychographical. behavioral and demographic variables. When there is a high intensity of competitors. A little filtering has been done in this activity. The third step of segmenting is the first part of the topic of competitor analysis. analyzing the intensity of competitors in the market 4. For one product the market can be divided in different customer groups. it is important to decide on which market to target. The last sub activity of deciding on the actual target market is an analysis of the company's abilities to those of its . it is not necessary that these segments are attractive to target. defining the abilities of the company and resources needed to enter a market 2. but there are more factors to take in account before targeting a certain market segment. This process is called targeting. Not every market is an attractive market to enter. The variables used for this segmenting in these groups are usually geographical. A company is almost never alone in a market -. a company should not directly start targeting all these segments -. selecting the attractive customer segments. analyzing competitors on their resources and skills 3. The first. Four sub activities form the basis for deciding on which segments will actually be targeted. The third step of analyzing the intensity of the competitors is added to the process of segmenting in this process description. When different segments are identified.other important factors come into play in defining a target market. When these segments are known. it is hard to obtain a profitable market share and a company may decide not to enter a certain market. considering the company’s abilities compared to the competitors' abilities 4. • Targeting After the most attractive segments are selected. The four sub activities within targeting are: 1. This results in segments which are homogeneous within and heterogeneous between each other.competitors have a great influence on the attractiveness of entering a certain market. deciding on the actual target markets. The need for segmenting a market is based on the fact that no market is homogeneous. second and fourth steps are described as market segmentation.3.
identifies the differential advantages in each segment 2.competitors. From college students to CEOs the Beetle has found its way into garages of all classes. This process is described at the topic positioning. as these segments allow firms to analyze the competitors in this market. The range of interest for the automobiles is from 16-year-olds to 65-year-olds. so different customers with different ideas of what they expect from the product. the markets to target are selected. The analyses done of the market. The results of this analysis leads to a list of segments which are most attractive to target and have a good chance of leading to a profitable market share. one can start on creating the marketing mix STP Analysis of Volkswagen • Segmentation The New Beetle is unique from other cars in that its market is huge. here different concepts of positioning are given. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. knowledge of the differential advantages of each segment is needed • Positioning When the list of target markets is made. Every segment is different from the others. What do all of these consumers have in common? Simple. competitors and abilities of the company are necessary to create a good positioning statement. When the process of targeting is ended. When the positioning statement is created. The model shows how the predefined concepts are the basis for the positioning statement. In the process of positioning the company: 1. they’re tired of driving the same old pod-like cars . To decide on the actual marketing strategy. The process-data model shows the concepts resulting from the different activities before and within positioning. targeting can only be done when segments have been defined. Although the car is under $20.000 it appeals to drivers of many social classes. a company might want to start on deciding on a good marketing mix directly. but the way to use marketing in these markets is not yet defined. Obviously. decides on a different positioning concept for each of these segments.
and economical. single. After VW dropped the Beetle from production in 1978 the company was never the same.and the nostalgia the Beetle gives off is comforting and energizing.000. For example. classy. married with no children at home.” they’re not kidding. parents buying the car for their child. • Positioning When Volkswagen says “Drivers Wanted. . young people or people who are simply young at heart. Secondary: Generation X. upper-middle class or lower-upper class.S. middle class. Tertiary: Generation Y. That’s when Chairman Ferdinand Piech ordered up a prototype of a new Beetle as a last attempt to boost sales. anniversaries or other occasions. more than half are married.000 a year. married. unique. only one-third have children at home and slightly more than half of the buyers are male. Broken down I would identify the target markets as: Primary: Baby boomers.” The New Beetle is marketed as classic. buyer’s annual family income is $86.” Yet it’s clearly aiming wide. While many of the ads sport jokes targeted at the previous Beetle generation. family income of about $86. • Targeting Volkswagen executives refuse to be pinned down on the New Beetle’s target market saying only that it is designed for “optimists. appear fun. and stand apart from a crowd. By 1993 the company was just about ready to drop out of the American market. The average U. It’s for the kind of person who likes to have fun.000.6 Edmund’s web page on automobile reviews identifies the target buyer as “men.7 Many of the trendy Beetles are bought as gifts for birthdays. women. others are aimed squarely at Gen-X. male. I think that many of the cars for this segment will have a separate purchaser and user. The typical buyer is from the baby boom generation averaging 44 years of age. Volkswagen’s American market share has dropped below one percent in recent years. This is higher than the average income of buyers of even pricier Volkswagen models which holds an average of $63. The introduction of the New Beetle to the American market did just that.
VW celebrated a 59 percent increase in worldwide sales last year and a 44.6 percent increase this year. I have not found their market share as of 1999 but an increase such as the one they experienced is sure to raise their standings. Using product differentiation we are positioning the Volkswagen as the most versatile, convenient, value added car model for above target market used. The marketing strategy will be focused on promoting the car as economic car for the next generation
Boston Consultancy Group (BCG Matrix)
This product portfolio matrix classifies product lines into four categories. The BCG models suggests that organisations should have a healthy balance of products within their range. The Boston Consultancy Group classified these products as following: Dogs These are products which have low market shares and low market growth rates. The options for many companies is to phase these products out, however some organisation do go for the strategy ofre-inventing and injecting new life into the product. (see Heinz Case Study) Question Mark/Problem Child
These are products with low market share but operate in high market growth rates. The company puts a lot of resources in this product in the hope that it will eventually increase market share and generate cash returns in the future. Star Stars have high market shares that operate in growing markets. The product at this stage should be generating positive returns for the company. Cash Cow Cash Cow are products at the mature stage of the lifecycle, they generate high amounts of cash for the company, but growth rate is slowing. There are chances that the product may slip into decline, appropriate marketing mix strategies should be employed to try to prevent this from happening.
BCG Matrix of Volkswagen Dogs
Volkswagen Beetle a car of a special class, A car which stands aprt from the cars of the same segemnet is in this segment as only 25 beetle were sold in the market from April 2010 to February 2011 Question Mark/Problem Child
Volkswagen jetta a car in sedan segment has low market share but the company has high expectation from the car . AS it has been just introduced by the company in the markets with its various models .
Volkswagen Polo And Vento Named Key Contributors To Sales Growth Of Volkswagen In 2010. Polo and Vento are the two star cars for Volkswagen as had major contribution in the sale figures of the organization .
Chapter-4 Financial Analysis .
respectively. As of 30 June 2010. VW Bank.). including loans. . offers a range of banking and financial services to both the VW Group and its customers. to finance vehicle purchases and to support Volkswagen AG sales. the bank reported a consolidated asset base of €34. a leading automotive manufacturer and provider of associated financial services. a 100% owned subsidiary of Volkswagen AG.Sources of finance Volkswagen Bank GmbH (VW Bank) is a limited liability company wholly owned by Volkswagen Financial Services AG (VWFS). through Volkswagen Leasing GmbH. in conjunction with VWFS. The bank is one of the largest providers of internet-based banking services in Germany. As of 31 December 2009.0 billion. insurance brokerage.000 customers. Leasing business: The bank provides both finance and operating leasing products. Volkswagen AG and its subsidiaries comprise Volkswagen Group (VW Group). its VW direct banking unit was one of the largest direct banks in the European automotive financial services market with around 939. The bank provides products and services mainly in the following business areas: Financing business: VW Bank offers financing services including automobile financing to private and business customers and to VW Group dealers. leasing products (Volkswagen Leasing GmbH). trust services. and used vehicle financing facilities. leases individual vehicles as well as vehicle fleets to private and corporate customers. direct banking services and fleet management (LeasePlan Corporation N. VW Bank was founded in 1949 as Volkswagen Finanzierungsgesellschaft mbH. The bank’s subsidiary AutoEuropa Bank provides brand-independent financial services in the passenger car and leisure market. VW Bank.V. VW Bank operates within VW Group’s Financial Services division. providing a range of banking services to both private and business customers.
h. The Automotive Division made a relatively large contribution to this development due to the expansion of its business and the capital increase. F. Porsche AG.Direct banking business: VW Bank offers a range of direct banking services including account management. CONSOLIDATED BALANCE SHEET STRUCTURE 2010 as percent AUTOMOTIVE DIVISION BALANCE SHEET STRUCTURE In December 2009. The structure of the consolidated balance sheet as of December 31. The Volkswagen Group’s equity ratio amounted to 24. installment loans. the bank provides overnight deposit accounts as well as a range of payment transaction services to corporate clients. Agency business: VW Bank provides insurance agency services in connection with automobile financing. 2010 can be seen from the chart below. as well as fund and stock market investments.5%. the Volkswagen Group’s total assets on December 31. In addition. Stuttgart. credit cards and securities transactions to private customers. Porsche Zwischenholding GmbH holds 100% of the shares of Dr.1%). CONSOLIDATED BALANCE SHEET STRUCTURE At €199.4 billion.4% (21.c. savings and investment products. Volkswagen AG acquired 49.9% of the shares of Porsche Zwischenholding GmbH. Ing. On the basis of the agreements under company law with . Stuttgart. 2010 exceeded the prior-year figure by 12. loans secured by charges entered in the land registry and other long-term forms of financing.
the Automotive Division’s equity attributable to shareholders of Volkswagen AG amounted to €37. Hamamatsu.6% increase compared with December 31. The shares are measured using the equity method.3 billion on the previous year. equity amounted to €39.5% higher year-on-year. the equity ratio was above the 2009 figure. After acquiring additional shares. Following the exercise of outstanding convertible bonds by other investors. Effective January 15.5% higher than in the previous year. Volkswagen shares control of Porsche Zwischenholding GmbH and its direct and indirect subsidiaries. The shares of Porsche Zwischenholding GmbH were accounted for using the equity method. the Automotive Division’s noncurrent assets were 18. At 35. the 35. up €10. The figures for the Automotive Division also contain the elimination of intra-Group transactions between the Automotive and Financial Services divisions. The expansion of business contributed to the fact that current assets were 11.Porsche Automobile Holding SE.89% as of June 30. . for €1. As the current financial liabilities for the primary Automotive Division were lower than the loans granted to the Financial Services Division. Within current liabilities. financial liabilities declined sharply.37%.2% increase in noncurrent liabilities. 2010.5% (30. Volkswagen acquired 19. Including non controlling interests. 2009 related primarily to the capital increase and the positive earnings trend. Conversely. plant and equipment was up by 5. Volkswagen’s interest in Suzuki fell to 19.7 billion.5 billion. Allocation of the purchase price to Suzuki’s assets and liabilities has only been preliminary so far.7% due to the expansion of new production facilities.0% due to the positive business development.2%). Higher pension provisions in particular led to a 7. a negative amount was disclosed for the reporting period. This is mainly attributable to the increased carrying amounts of our equityaccounted investments.0 billion. higher actuarial losses for pension provisions recognized directly in other comprehensive income and the decline in the fair values of derivative financial instruments had a negative effect. Property. which chiefly relate to non controlling interests in Scania. Japan.89% of the shares of Suzuki Motor Corporation. At the end of the reporting period. At the end of fiscal 2010. Volkswagen increased its interest again to 19. which rose by 6. 2010.
The equity ratio rose slightly to 10. €7. Current assets were up 9.5 billion.2 billion (€8. Noncurrent liabilities were up by 2. Noncurrent assets rose by 9.2%). The expansion of business and exchange rate effects also led to an increase in current liabilities. Cash and cash equivalents decreased to €1.4 billion higher than in the previous year.9 billion. positive currency hedging effects and a capital increase by Volkswagen AG. 2010. The debt/equity ratio remained unchanged at 8:1 CONSOLIDATED BALANCE SHEET BY DIVISION AS OF DECEMBER 31 Volkswagen € million Group 2010 2009 Financial Automotive Services 2010 2009 2010 2009 Assets 52.3% higher than in 2009.41 Noncurrent assets Intangible assets 113.6 billion to €18. 2010 were 15.1% on year-end 2009.402 13. the Automotive Division’s total assets as of December 31. the Financial Services Division accounted for approximately 44% of the Volkswagen Group’s assets as of the reporting date.79 13.2 billion) on December 31.4% (10. The Financial Services Division’s equity amounted to €9. The increase related in particular to improved earnings.9 billion. the Financial Services Division’s total assets amounted to €87.457 99. Deposits at Volkswagen Bank direct rose by €0.907 62.9 billion).3 billion (€1. Higher financial services receivables lifted this figure. mainly because of an increase in financial services receivables and leasing and rental assets resulting from exchange rate-related and volume-related factors.325 12. FINANCIAL SERVICES DIVISION BALANCE SHEET STRUCTURE At the end of fiscal year 2010.023 0 82 46.At €111.3% primarily because of higher financial liabilities due to volume and exchange rate-related factors.133 1 51.104 12. Overall.2%.992 117 .
110 16.631 30.932 236 39.419 8 1.840 15.238 –161 30.048 1 2.159 15.364 8 31.501 18.930 1.403 12.970 5.265 3 167 18.734 73.79 15.177 7.847 11.251 111.843 Group 2010 25.149 70.541 13.471 – 35.881 80.936 19.480 749 27.564 3.CONSOLIDATED BALANCE SHEET BY DIVISION AS OF DECEMBER 31 Volkswagen € million Property.568 44.712 Equity attributable to shareholders of Volkswagen AG Noncontrolling interests Noncurrent liabilities Noncurrent financial liabilities Provisions for pensions Other noncurrent liabilities3 45.166 27.978 2.330 20.23 23.188 98 1.52 96.080 .539 Financial Automotive Services 2010 2009 2010 2009 24.215 36.164 13.776 14.589 77. cash equivalents and time deposits Total assets Equity and Liabilities 29.288 33.174 3.989 9.430 35.866 199.403 10.286 39.309 3 3.272 28.170 13.25 Equity 48.65 17.393 5 –238 1. plant and equipment Leasing and rental assets Financial services receivables Noncurrent receivables and other financial assets2 Current assets Inventories Financial services receivables Current receivables and other financial assets Marketable securities Cash.546 3 9.812 35.124 27.393 177.37 16.281 2.781 37.50 8.721 142 2.440 4 384 –22 324 407 11.964 33.356 33.960 217 30.417 8.44 3.670 2009 24.231 126 18.446 9.381 3.432 21.877 85.32 37.190 37.394 6 36.70 7 87.375 3.174 18.193 3.993 13.428 380 9.29 49.707 27.06 25.444 10.817 26.178 7 42.524 5.936 17.498 8.
606 10.283 –3.225 18.019 .767 22. Since fiscal year 2009. and how it is appropriated.187 9.852 12.143 2.250 32.922 2009 105.7%). employees in the passive phase of their early retirement have no longer been included when calculating added value per employee.534 40. Added value per employee in the reporting period was €97.996 11. the value added generated by the Volkswagen Group was 49.94 29. In fiscal year 2010.471 Current liabilities Current financial liabilities Trade payables Other current liabilities Total equity and liabilities 76.156 42.925 –8.CONSOLIDATED BALANCE SHEET BY DIVISION AS OF DECEMBER 31 Volkswagen € million Group 2010 2009 Financial Automotive Services 2010 2009 2010 2009 3 27.132 7 3.866 41.401 –67.703 199.877 –15.70 7 87.734 916 16.875 10.05 21.900 39.628 9.393 177.178 7 Value Added Statement The value added statement indicates the added value generated by a company in the past fiscal year as its contribution to the gross domestic product of its home country.787 –79.645 80.394 –10.7 thousand (+42.097 –15.450 491 2.504 69. VALUE ADDED GENERATED BY THE VOLKSWAGEN GROUP Source of funds in € million Sales revenue Other income Cost of materials Depreciation and amortization Other upfront expenditures Value added 2010 126.544 24.5% higher than in the previous year.52 96.617 7 47.372 111.587 38.
Invested capital is calculated as total operating assets (property. In order to use resources in the Automotive Division efficiently and to measure the success of this.019 % 2.922 % 3.2 17.928 265 22. duties) to creditors (interest expense) to the Company (reserves) Value added 2010 1. we have been using value contribution 1. plant and equipment.027 3.152 3. to be measured. The cost of capital is multiplied by the invested capital to give the opportunity cost of capital.563 6. for a number of years. Russia and North America. The concept of value-based management allows the success of our innovative.105 3.193 32. such as the new plants in India.0 Value contribution as a control variable The Volkswagen Group’s financial target system centers on continuously and sustainably increasing the value of the Company. Using the various international income tax rates of the relevant companies.034 19. Operating profit shows the economic performance of the Automotive Division and is initially a pre-tax figure. a control variable linked to the cost of capital.8 18.8 1. benefits) to the state (taxes.5 10. This concept also enables the earnings strength of individual business units and projects. environmentally oriented product portfolio to be evaluated. COMPONENTS OF VALUE CONTRIBUTION Value contribution is calculated using operating profit after tax and the opportunity cost of invested capital.027 1.8 100.1 57.0 2009 647 16.9 72.8 9. salaries. we assume an overall average tax rate of 30% when calculating the operating profit after tax.Appropriation of funds in € million to shareholders (dividend) to employees (wages.8 5. intangible .2 100.
Against the background of the planned creation of an integrated automotive group with Porsche.assets. This success is based on our disciplined cost and investment management and the continuous optimization of our processes.1 (€1. The Board of Management of Volkswagen AG believes that the Group’s economic position is positive.9) billion. Interest charged on these assets is reported in the financial result. As the concept of value-based management only covers our operating activities. More information on the economic position of the Volkswagen Group by brand and business field can be found in the Divisions chapter. An overview of the development of the Volkswagen Group over the past five years can be found in Key Financial Figures and the Five-Year Review. “Fiscal year 2010 was the best year in the history of the Volkswagen Group. assets relating to investments in subsidiaries and associates and the investment of cash funds are not included when calculating invested capital. Together with positive business growth. it also enabled a further significant year-on-year improvement in the Automotive Division’s liquidity position. Sales revenue and earnings substantially exceeded the prior-year figures. With sales revenue of €126. The capital increase and the investment in the Suzuki Motor Corporation had a significant influence on the Volkswagen Group’s financial position in fiscal year 2010. the capital increase strengthened the Group’s financial stability and flexibility. inventories and receivables) less non-interest-bearing liabilities (trade payables and payments on account received).Volkswagen already provided impressive proof of its robustness during the crisis and our Group is now following that up by leading the field during the economic recovery .2) billion the Group reported an operating profit of €7. among other things. The Volkswagen Group has overcome the negative effects of the global financial and economic crisis and significantly increased its earnings power in the reporting period.9 (2009: €105. Volkswagen Aktiengesellschaft announced its key figures for fiscal year 2010 in an ad hoc release today. allowing the Group to close fiscal year 2010 with record profit.
positive effects from equity-accounted investments and from measurement of put/call rights relating to Porsche Zwischenholding GmbH at the reporting date .7 percent).2 million vehicles (+ 13.” Winterkorn underlined.6 billion) Determining current cost of capital .1 billion (EUR 1. “Our broad and environmentally-friendly model range coupled with our financial strength and the clear strategic orientation of our multi-brand group have contributed to this success. Prof.Board of Management and Supervisory Board propose increase in the dividend for Volkswagen shareholders to EUR 2. too – despite all economic uncertainties.Deliveries top the 7 million mark for the first time at 7. Dr.as well.” Winterkorn added. Volkswagen presents 2010 consolidated financial statements: . “The outlook for the current year is good.0 billion.Profit before tax increases by EUR 7.20 per ordinary share and EUR 2.” the Chairman of the Board of Management of Volkswagen Aktiengesellschaft.7 billion to EUR 9.Further rise in Automotive Division’s net liquidity against last year’s high figure to EUR 18. profitable growth course. said in Wolfsburg on Friday. market share increased further .Volkswagen Group generates record profit in fiscal year 2010 .9 billion) .26 per preferred share . Volkswagen is following a solid. Volkswagen will play a decisive role in shaping the growth anticipated for world markets.Operating profit up significantly on prior-year level at EUR 7.Business expansion and implemented capital increase strengthen Group’s financial stability and flexibility in the context of the planned creation of an integrated automotive group with Porsche . Martin Winterkorn.6 billion (EUR 10.
871).3 2009 4. which reflects the general risk of a capital investment in the equity market and focuses on the Morgan Stanley Capital International (MSCI) World Index.7 33.0 5. increased by the risk premium attaching to investments in the equity market. The general risk premium.The cost of capital is the weighted average of the required rates of return on equity and debt.0 –0.5 –1.99) 7.7 33. From 2010.99 was determined for 2010 (previous year: 0. A beta factor of 0.87)1 8. The cost of equity is determined using the Capital Asset Pricing Model (CAPM). COST OF CAPITAL AFTER TAX AUTOMOTIVE DIVISION % Risk-free rate MSCI World Index market risk premium Volkswagen-specific risk premium (Volkswagen beta factor) Cost of equity after tax Cost of debt Tax Cost of debt after tax Proportion of equity Proportion of debt 2010 3.9 66. is 5%. and the share class in the DAX was changed to preferred shares in 2010.9 4. The analysis period for the beta factor calculation relates to a five-year period with annual beta figures on a daily basis and an average subsequently being calculated.3 3. This model uses the yield on long-term risk-free Bunds.6 3.3 –1. The MSCI World Index sets a standard that reflects a global capital market benchmark for investors.1 5. The switch in benchmark index from the DAX to the MSCI World Index was necessary because Volkswagen shares experienced considerable price fluctuations in 2008 and 2009.3 .1 (0.7 (0.0 66. the specific business risk of price fluctuations in Volkswagen preferred shares is modeled as part of the beta factor calculation compared with the MSCI World Index.4 5.0 –0. The risk premium comprises a general market risk and a specific business risk.
3 2009 6. general and administrative expenses to sales was reduced year-on-year to 8.9% (10.5 billion (€1. After deducting income taxes. which was due in particular to higher income from profit and loss transfer agreements. The cost of sales rose 11.5%). The business expansion led to higher selling. Gross profit increased to €4.1% to €4.2 billion.COST OF CAPITAL AFTER TAX AUTOMOTIVE DIVISION % Cost of capital after tax NET INCOME FOR THE YEAR 2010 6.8% year-on-year to €53. mainly on account of lower gains from currency hedging transactions.0%).8 billion.5 billion). the other operating result was down €0.0 billion. The ratio of selling. a year-on-year increase of 19.2 billion in fiscal year 2010. net income amounted to €1. . At €4.6%. Volkswagen AG’s sales rose to €57. At €1.9 As a result of the expansion of business.1 billion due to volume-related factors. The extraordinary result comprises the effects from the transition to the new accounting rules in the German Commercial Code following the introduction of the Bilanzrechtsmodernisierungsgesetz (BilMoG – German Accounting Law Modernization Act).9 billion. general and administrative expenses than at the end of 2009.4% (53.7 billion versus the previous year. Volkswagen AG’s result from ordinary activities was much higher than in fiscal year 2009 (€1. The proportion of sales generated outside Germany was 62. The financial result rose by 15.1 billion). This item primarily includes the expense recognized for the remeasurement of pension provisions.
184 5.059 +4.043 +4. Sales Cost of sales Gross profit on sales Selling.454 +410 4.589 1.090 +1.791 +4.512 – 430 1.778 +1.039 2009 47.864 47.718 +4.082 2 200 884 .163 +1.789 1.550 130 640 1.928 –1.243 53. general and administrative expenses Other operating result Financial result* Result from ordinary activities Extraordinary result Taxes on income Net income for the year Retained profits brought forward Appropriations to revenue reserves Net retained profits 2010 57.INCOME STATEMENT OF VOLKSWAGEN AG € million * Including write-downs of financial assets.
Chapter-5 HR Polices & recruitment .
which is one of innovation. The initiative is now a well-established part of the Volkswagen HR development programme. last year we held the competition for the Woman Driving Award for the second time in Germany. ours have been in place since 1989. The award recognises young female engineers for outstanding thesis projects on automotive topics. in 2008 the number reached 744.HR Policies of Volkswagen Volkswagen was the first and for a long time only major corporation to establish and follow guidelines for the advancement of women. And the percentage of fathers increased sharply. . At Volkswagen Commercial Vehicles our KICK programme is designed to educate female apprentices in the commercial and technical fields concerning their career perspectives and professional opportunities. Since 1998 we have had a mentoring scheme to systematically increase the number of women in management. Helping our employees combine work and family life is another important element of our strategy to become the top employer. And with our development project for female skilled workers – Female Master Mentoring – we are aiming to increase the number of female supervisors at Volkswagen Family-friendly HR policies are an important consideration for employees who want to raise a family. Training and Development People are at the heart of the Volkswagen culture. In addition. having been through 16 cycles with a total of over 290 participants. from three percent in 2006 to 52 percent last year. We organise meetings for employees on parental leave. I'd like to mention one particularly positive development: whereas in 2006. Telecommuting and various part-time and shift models also make it easier to balance job and family. We have designed targeted measures to further increase the percentage of women in the company. progress and a desire to deliver exceptional service. Equal opportunity is a component of our "18plus" strategy. 280 employees in the six Volkswagen AG production plants in Germany took parental leave. implement initiatives to ease the transition back into the workforce after parental leave and offer information on childcare providers on our intranet. And in this context.
a place of warmth. while regularly travelling to NSW for intensive apprentice training and course assesment conducted at each of the manufacturer's training facilities. The Apprenticeship is for four years (three years of training with the academy) and consists of a variety of workplace and off-the-job training. reward and recognise the broad range of individuals who build our success. But this approach requires a special type of person. affording them the right development and the means and motivation to realise their full potential. The Volkswagen Modern Apprenticeship Program The Volkswagen Modern Apprenticeship Programme has been designed to equip you with the relevant skills and knowledge to become fully qualified in your chosen career. Your career will be given full support to help you successfully complete the Program. At this point. Every Apprentice is encouraged to demonstrate initiative and contribute his or her own ideas for improving customer service and developing the business. a ‘numbers’ person or more people oriented. You must have the ambition to contribute and succeed in a fast-paced. develop. They deserve a great place to work – one which they can feel proud. Few businesses can offer their employees such diversity. They attract. challenges. support and enthusiasm. you will be employed by and based at your local dealer in your state or territory. Volkswagen offer a wide choice of attractive career opportunities for all levels of experience. As an apprentice.They recognise that they can only achieve our business goals by attracting and developing the most talented people. aptitude and personality types – whether you are technically minded. excellent training and career development prospects. results oriented environment and strive to be the best in everything you do. we do not offer in-school training courses. .
In three simple steps. VW’s Recruitment Manager. this powerful online competency based tool allows Recruiters to Profile their jobs. This was a labour intensive task which was reducing their turnaround time to place candidates at the dealerships. fair and legally compliant. Many of the positions at VW dealerships are Sales Executive positions which attract huge volumes of applicants. our processes for distribution and support services are world class and we have some of the most technologically advanced resources in any industry. We therefore invest heavily in training.000 emailed CVs for one position. coaching and distance learning. Jenni Jordan. We have a reputation for providing the best and most genuine customer retail experience to every person visiting our dealerships. For Volkswagen to maintain its excellent reputation. This ensures that their initial selection process is consistent.The Volkswagen Commitment Throughout Volkswagen we have a rigorous commitment to quality and excellence. Recruitment Specialist. On Profiler Before using Profiler. We want you to be part of this delivery. which they found to be a very time consuming and a cumbersome process. VW were in need of a mechanism to effectively scan . employees need to be kept up-todate with changes in technology and commercial developments that affect the delivery of customer satisfaction and the business objectives. Volkswagen is committed to the continuous development of the skills and knowledge of its people. making our people some of the best trained in the industry. through training. recount how they received over 1. Volkswagen (VW) had to manually screen and filter CV applications. and Pauline Bruwer. A career with Volkswagen is a very unique and rewarding experience Profiler Profiler significantly reduces the cost and time it takes to recruit candidates. which they had to manually read through to find suitable candidates. Screen applications according to set Qualifiers and Interview short listed candidates. Our products are highly acclaimed.
” . Volkswagen have noticed that since using Profiler. VW are constantly on the lookout for particular types of candidates. there has been a more sophisticated caliber of candidates who apply. it is a good indicator of who has been attracted to the ad in the first place.” she continues. In addition. It is very important for them to have an accurate job profile set up as well as filtering and screening capabilities to sort out the applicants that meet the criteria and have the potential competencies of the job from those that do not.” says Bruwer. This reduces the amount of time utilised when screening and interviewing candidates. Although she doesn’t regret them from this screen. for example Sales Executives. “It shows the candidate up front that they are dealing directly with the company and that they have put some thought behind the ad -“that we are professionals and that it is going to be a rigorousprocess. it is still useful to use it as a basis to interview.’” says Jordan.to give her more information about the candidate prior to meeting in a face-to-face interview. the autoregret functionality results in a huge time saving and efficiency improve ment. “Once the profile is set up. Bruwer says she uses the first two steps of Profiler to shortlist candidates and uses the last step .through CVs rather than having to go through each and every CV in great detail. “The filter results are also extremely beneficial because we can decide whether we will only consider candidates who match the position 100% or if we will consider 80% matches for example. Profiler indicates what percentage the candidate has matched the competencies required for the position. An unplanned benefit of the Profiler process is that it shows the candidates who apply to the positions that there has been a lot of thought in setting up the job advert and that it is quite a professional internal process. Both Jordan and Bruwer find the ability to quickly identify correct candidates as extremely beneficial in that it speeds up the process and selects a better caliber of candidate upfront. She explains that this also means that the actual interview is a lot quicker because a lot of the questions are already answered in the screen. says Jordan.the online interview . even if they don’t have specific positions to fill. They also wanted to ensure that they were conducting a fair recruitment process which was legally compliant and consistent. They therefore need to keep the applications coming in all the time to build up their talent pool. Profiler was the obvious choice for VW. “Profiler makes it a lot easier when screening the volumes of CVs coming through and in addition it helps us with the setting up of the job specification. explains Jordan.
This ensures that only serious candidates apply to the position and there are less “chancers” applying to the positions. . she concludes.says Jordan.
Chapter-6 Production Policies .
Volkswagen: The Transparent Factory (Dresden, Germany)
To lead off the Plant Tours I'll start with the tour that most exceeded my expectations. Volkswagen's Transparent Factory (GLÄSERNE MANUFAKTUR auf Deutsch), as highlighted in a Plant Tour on the VWvortex forums, is a phenomenal manufacturing facility. In my opinion it is one of the most impressive factories I have seen to date. The Transparent Factory opened in 2002, and both the German and English names are a word play on the double meaning of transparent, referring to both optical transparency and transparency of the production process. The Transparent Factory builds VW's top of the line Phaeton,
and Bentleys can also be built on the same assembly line since the Phaeton's D1 platform is shared with the Bentley Continental GT and Bentley Continental Flying Spur. Ergonomics and a great deal of industrial engineering are obvious in the layout and manufacturing design. The assembly line is quite different from any automotive final assembly plant that I have seen before, and the whole facility has an experimental design feel to it. The cleanliness of the facility lends a sterile, hospital like feel to the whole site, and the white coveralls of the assembelers almost seem inappropriate (as if they should be wearing a white lab coat instead)!
The assembly operation and component factories, in places such as nearby Zwickau, appear quite integrated, and one can definitely tell that little expense was spared to establish the Transparent Factory as the flagship manufacturing operation in VW's worldwide operations. I am still very surprised that VW has not advertised their Phaeton manufacturing process more to the public. Phaetons are very nice cars, and showing the public how their car is built would make many people rethink the general assumption that VWs are a lower tier product versus Audi, BMW, and Mercedes Benz. VOLKSWAGEN Pune plant
VOLKSWAGEN Pune plant The Volkswagen plant in Chakan occupies a total area of over 2.3million square metres (575 Acres), with buildings covering about 115 thousand square metres, which means, the total premises is 2x1kilometres. A workforce of over 3500 people was engaged in building during its peak construction stages. The plant was built with an investment commitment of INR 3800 Crores (580 million Euros) by Volkswagen India Pvt. Ltd. It is the largest investment by a German company to date in the Indian growth market Production The plant has a production capacity of 110,000 vehicles a year. The construction of the plant commenced in 2007 and has been built in a record time of 17 months.
The Hon’ble Governor of Maharashtra His Excellency Shri. S. C. Jamir and Prof. Dr. Jochem Heizmann, officially inaugurated the new plant on March 31st, 2009 in the presence of nearly 500 international guests.
The Pune plant is one of the most modern in the Volkswagen Group. It has a high level of vertical integration and a large share of local suppliers. The facility is the only production plant operated by a German automaker in India that covers the entire production process from press shop through body shop and paint shop to final assembly.
The facility uses futuristically designed state-of-the-art equipment. For example, the Body shop uses the Diode Laser Brazing (DLB) technology, whereas the Roof & Side Framer laser technology is used for welding the roof to the body of the car. The facility is also one of the few environment friendly manufacturing plants around the area. For Example, the Exhaust of the Paint shop is re-burnt and the resultant heat and energy is reused.
Full-fledged production has taken off at the plant with the production of the Skoda Fabia in May 2009, followed by a Polo based model in December 2009.
in its commitment towards the economic development of the state of Maharashtra.determination bodies within the Volkswagen Group and has since gradually introduced this approach into corporate structures across the Group. these standards were extended to general purchasing. This is especially important in the case of suppliers from developing and emerging countries where statutory environmental and social standards are inadequate or even non-existent. we are under a special responsibility to ensure compliance with uni form environmental and social standards throughout the Group in view of the continuing internationalisation of our value streams.Workforce Volkswagen India Pvt. All new purchasers receive regular training in this field in order to ensure a heightened awareness of deviations and improvement potential with respect to suppliers. In this context. ..” said Francisco Javier García Sanz. In 2008. it is impor tant that our partners not only supply goods of impeccable quality but also implement minimum environmental and social standards throughout the world. the Volkswagen Group has set minimum environmental and social standards. Member of the Board of Management of the Volkswagen Group responsible for Purchasing. To this end. back in 2006 the Volkswagen Group drew up a “Sustainability in Supplier Relations” scheme in conjunction with Oldenburg University and the co. plans to hire 2500 skilled employees Quality concepts used by the company Sustainability in supplier relations In purchasing too. “Sustainability in Supplier Relations” has since become a key element in supplier management throughout the Volkswagen Group. as well as into production-related purchasing processes. Ltd. “For us.
the Volkswagen Group is actively involved in strengthening networks. for example via the Online portal “Responsible Supply Chain Management”. internal procedures were analysed and process optimisation measures were successfully defined. At training workshops extending over several days. International networking At the European level. including sustainability requirements. the use of resources or the promotion of productand process-related innovations. At the end of these workshops. As a result. transparency in the purchasing process or supplier development are regularly reviewed and revised as necessary. We are conducting a re view to determine the extent to which these standards are already taken into consideration in internal and external processes on site and to identify any optimisation potential. all the elements of the scheme. all the participants joined forces to draw up plans of action including improvement measures. not least in connection with strategic decisions on future investments. . early warning system. Prospects for cooperation Our joint responsibility as partners in the supply chain continually presents us with new challenges. As a partner in the European Alliance for CSR.Extension to other brands and regions We are currently in the process of ensuring that our standards for “Sustainability in Supplier Relations” become more strongly anchored at our various brands and in the regions where the Volkswagen Group operates. Furthermore. the “Sustainability in Supplier Relations” scheme is subject to a continuous evaluation process. we also conducted an intensive exchange of information with Chinese suppliers in the areas of environmental and social standards. the Volkswagen Group and other companies are committed to anchoring sustainability more fi rmly as an element of supplier relations for the entire automobile industry. dialogue and communications. the Volkswagen Group is a member of the joint “CSR in Supply Chains” working party with representatives from a large number of automakers. This ongoing development of our supplier relations is essential if we are to attain our sustainability objectives. During a seven-month pilot project at the VW Group China in 2008.
Chapter-7 Findings & Conclusion .
Since then it maintaining it market and on the growing stage with its main goal of maintaining the environment. cost effective cars and classy vehicles. Because of its commitment with its employees it is getting better returns from their employees. Volkswagen has family friendly HR policies.000 vehicles per annum.Chapter-7 Findings & Conclusion Volkwagen entered Indian markets in 2007. It has many problems since from the level of production. In view of the problems. . Still they are in the process of winning their obstacle race and of course maintaining their market. development and market trends. It is note worthy that Volkswagen has a sound financial and capital position. Volkswagen India Private Limited operates a manufacturing plant in Chakan which is capable of producing 110. Volkswagen has a modern apprentice ship programme for the new comers in the industry to utilize their potential in a proper way for the betterment of the company as also for the employees. This is very important reason for its maintenance of the market. In all. design. needless to mention that Volkswagen will definitely come up in Indian automotive industry with its innovative. Volkswagen is a new entrant in the Indian automotive industry and it is facing problems in capturing the market share of its competitors. because of its modern marketing strategies. it is trying to maintain and achieve its targets. The plant is also shared by Škoda Auto India Private Limited for assembling the Škoda Fabia.
FINANCE.COM WWW.WIKIPEDIA.Bibliography WWW.IN WWW.LONDREMARKETING.COM WWW.CO.CAREERJUNCTION.GOOGLE.COM WWW.COM .GOOGLE.ANGELFIRE.VOLKSWAGENAG.COM WWW.VOLKSWAGEN.CO.COM WWW.ZA WWW.
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