Gunnar Kilian-Member of the Board of Management HR and Truck & Busat Volkswagen AG...571.3.. Markus Duesmann-Management Board Member - Brand Group ‘Premium’at Volkswagen Group...591.5..
Trang 1FPT UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION
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-THE CURRENT MANAGEMENT ISSUES OF
VOLKSWAGEN GROUP
Subject: MGT103 – Introduction to Management
Instructor: Tran Quang ThangClass: MC1810
Participants:
1 Le Nhat Chi Mai – HS180044
2 Nguyen Lan Phuong – HS186147
3 Hoang Thi Ngoc Phuong – HS186403
4 Nguyen Ngoc Thuy – HS181126
5 Vu Mai Huong – HS186267
6 Nguyen Thi Van Anh – HS181172
Ha Noi, July 2023FPT University – Introduction to Management – MGT103 – Su23
Trang 3EXECUTIVE SUMMARY
This executive summary provides an overview of the key points and findingdiscussed in the essay on Volkswaygen Our essay explores various aspect ofVolkswagen Group, including its history, corporate culture, mission, vision, corevalue, key factors in the company’s managerment and its strategies for growth andsustainability
The essay begins with a brief introduction to Volkswagen Group, highlighting itsstatus as one of the world’s leading auto mobile manafacturers It traces thecompany’s roots back to its establishment in 1937 and emphasizes the significantmilestones and achievements throughout its history
The second section of the essay delves into Volkswagen’s corporate culture,focusing on its core values, innovation-driven mindset, and commitment tosustainability It highlights the company’s effort in developing electric vehicles andreducing its carbon footprint, positioning Volkswagen as a key player in thetransition towards sustainable mobility
Third, our research focuses on analysing the company’s general environment based
on the PEST model (political, economic, social, and technology) Furthermore, thisresearch aims to delve into the strategic planning and environmental analysispractices of the Volkswagen Group, specifically using the PESTLE framework toanalyze the general environment in which the company operates Moreover, thisresearch analyses the company’s product portfolio and strategic business units(SUBs) by using the BCG matrix
FPT University – Introduction to Management – MGT103 – Su23
Trang 4Lastly, the essay provide a description of the company’s structure, analyse thecompany’s organisation culture and the ways that the organisational structure andculture influence the Volkwagen’s human resource management and its approach toinnovation and change We also point out information about the company’sleadership and key measures placed to control the quality of products thatVolkswagen offered to the customer.
Inconclusion, the essay provides a comprehensive overview of Volkswagen Group,highlighting its history, corporate culture, growth strategies Despite the setbackscaused by the emissions scandal, Volkswagen has demostrated resilience anddetermination in overcoming abstacles and positioning itself as a leader insustainable and innovative mobility solutions
FPT University – Introduction to Management – MGT103 – Su23
Trang 5Firt and foremost, we would like to express our deepest thanks to our engaging,supportive and knowledgeable teachers, especially our research advisor MR TranQuang Thang Throughout the period, our instructor has giving us thedetermination to complete this project and to improve ourselves in a situation that
we never imagined His dynamism, vision, sincerity and motivation have deeplyinsprired us It was a freat priviledge and honow to work and study under hisguidance We are extremely grateful for whay he has offered our group one
We would also like to thank our friendship and partnership to work in MC1810,empathy, and great sense of humor for acceptance and patience during thediscussion that we had on this research work It is really a hard work indeed, but welearn so many things that we know are helpful in our future research
Finally, we express our sincerest gratitude to all the people who have supported us
to complete the research work directly or indirectly
Six members of Group1 would like to extend the deepest gratitude!
FPT University – Introduction to Management – MGT103 – Su23
Trang 6TABLE OF CONTENTS
1 The introduction of the company 9
2 History 10
2.1 Early Years (1937 - 1945) 10
2.2 Post-War Recovery (1945 - 1960) 10
2.3 From 1970 to 2000 11
2.4 Global Expansion and Challenges (2000 – 2010) 12
2.5 From 2010 to 2023 12
II STATEMENT OF MISSION, VISION AND CORE VALUE 13 1 Statement of mission 13
2 Vision Statement 14
3 Core Value 14
III ANALYZE VOLKSWAGEN ‘S GENERAL ENVIRONMENT 15 1 Political Factor 16
1.1 Political Stability and Government Policies 16
1.2 Regulatory Compliance and Emissions Standards 17
1.3 Trade Policies and Tariffs 19
1.4 Government Support for Research and Development 20
2 Economic Factor 22
2.1 Macroeconomic Conditions 22
2.2 Exchange Rates and International Trade 24
2.3 Industry Competition and Economic Impact 24
3 Social Factor 25
3.1 Changing Consumer Preferences 26
3.2 Ethical and Social Responsibility 28
4 Technological Factor 29
4.1 Embracing Electric Vehicles 29
4.2 Autonomous Driving and Advanced Safety Systems 31
4.3 Digitalization of Manufacturing 33
4.4 Sustainable Innovation and Research 35
IV ANALYZE VOLKSWAGEN’S TASK ENVIRONMENT 35 1 Competitors 35
2 Customers 36
3 Supplier 38
FPT University – Introduction to Management – MGT103 – Su23
Trang 74 Regulator 39
5 Strategic Parners 40
6 Volkswagen’s product portfolio and strategic business units (SBUs) by using the BCG matrix 41
6.1 Stars 42
6.2 Question Mark 43
6.3 Cash Cows 44
6.4 Dogs 45
V ORGANIZING 46 1 Outline of The Legal Structure of The Group 46
2 Organisational Structure of the Group 47
3 Corporate Culture and Organization Volkswagen 52
Exploring new territory 52
Diversity and equal opportunities 54
VI LEADER AND CONTROLLING 56 1 Information of management of Volkswagen 56
1.1 Oliver Blume - Chairman of the Board of Management of Volkswagen AG .56
1.2 Gunnar Kilian-Member of the Board of Management HR and Truck & Bus at Volkswagen AG 57
1.3 Thomas Schmall-von Westerholt-Management Board Member - Technology at Volkswagen Group 58
1.4 Markus Duesmann-Management Board Member - Brand Group ‘Premium’ at Volkswagen Group 59
1.5 Ralf Brandstätter-Executive Officer, China at Volkswagen Group 60
1.6 Gerardo Scarpino-Executive Director, Group Works Council at Volkswagen Group 60
1.7 Thomas Schäfer-CEO, Volkswagen Passenger Cars Brand at Volkswagen Group 62
1.8 Arno Antlitz-Management Board Member - Finance & Operations at Volkswagen Group 62
2 How does a company's leader (CEO, president, etc.) use different types of power (legal, rewarding, coercive, referral, expert) to influence employees and achieve success? Are the goals of the organization? 63
2.1 The Volkswagen emissions scandal-Former Volkswagen CEO Herbert Diess 63
2.2 Oliver Blume - Chairman of the Board of Management of Volkswagen AG .66 FPT University – Introduction to Management – MGT103 – Su23
Trang 82.3 Gunnar Kilian-Member of the Board of Management HR and Truck & Bus
at Volkswagen AG 67
3 Can a leader be considered an effective or “good” leader? If yes, what characteristics and behaviors can he/she exhibit that make him/her a good leader? If not, then provide some reasons why and suggest some solutions 68 4 What measures are in place to control the quality of services/products offered to customers? 71
4.1 Apply a quality management system 71
4.2 Strategy of the Group Quality Department 72
4.3 Focus on software-based system development 74
5 Provide some recommendations to further improve and ensure the quality and value of services/products offered by the company 76
I COMPANY BACKGROUND AND HISTORY
FPT University – Introduction to Management – MGT103 – Su23
Trang 91 The introduction of the company
Volkswagen Group, also called Volkswagen AG
Logo:
Type: Public (AG)
Industry: Automotive
Founded: Berline, Germany (28 May 1937; 86 years ago)
Founder: German Labour Front
Headquarters: Wolfsburg, Lower Saxony, Germany
Number of locations: 100 production facilities across 27 countries
Area serves: Worldwide
Website: www.volkswagen-group.com/en
Volkswagen AG, known internationally as the Volkswagen Group, is a Germanmultinational automotive manufacturer headquartered in Wolfsburg, Lower Saxony,Germany The company designs, manufacturers, and distributes passenger andcommercial vehicles, motorcycles, engines and turbomachinery, as well as offeringrelated services, including financing, leasing and fleet management
The Volkswagen Groups sells passenger cars under the Audi, Bentley, Cupra, Jetta,Lamborghini, Porsche, SEAT, Škoda and Volkswagen brands, motorcycles underthe Ducati name, light commercial vehicles under the Volkswagen CommercialVehicles brand, and heavy commercial vehicles via the marquess of listedsubsidiaries Traton (Navistar, MAN, Scania and Volkswagen Truck & Bus) It isFPT University – Introduction to Management – MGT103 – Su23
Trang 10divided into two primary divisions: the Automotive Division and the FinancialServices Division
Volkswagen was founded in Berlin in 1937 and incorporated in Wolfsburg tomanufacture the care that would become known as the Beetle The company’sproduction grew rapidly in the 1950s and 1960s In 1965, it acquired Auto Union,which subsequently produced the first postwar Audi models Volkswagen launched
a new generation of front-wheel drive vehicles in the 1970s; including the Passat,Polo and Golf; the last became its bestseller Vokswagen acquired a controllingstake in SEAT in 1986, making it the first non-German marque of the company, andacquired control of Škoda in 1994, of Bentley, Lamborghini, and Bugatti in 1998,Scania in 2008 and of Ducati, MAN, and Porsche in 2012 The company’soperations in China have grown rapidly in the past decade, with the countrybecoming its largest market [1]
2 History
2.1 Early Years (1937 - 1945)
Volkswagen was founded on May 28, 1937, by the German Labour Front under thedirection of Adolf Hitler Its primary goal was to produce an affordable car for theaverage German citizen, known as the “People’s Car” or “Volkswagen” in German.The company’s first production car was the iconic Volkswagen Beetle, designed byFerdinand Porche However, due to World War II, the production was primarilyfocused on military vehicles, and civilian car production was limited
2.2 Post-War Recovery (1945 - 1960)
After the war, the British Army took control of the Volkswagen factory, and majorproduction facilities were dismantled and transported to Britain However, in 1949,the company restarted production, and the Beetle became an international success
FPT University – Introduction to Management – MGT103 – Su23
Trang 11The Beetle’s popularity grew throughout the 1950s and 1960s, and Volkswagenexpanded its product lineup
In the 1960s, Volkswagen began expanding its operations and acquired Auto Union,which included the Audi brand The 1970s saw the introduction of new modelssuch as the Golf, Passat, and Polo
2.3 From 1970 to 2000
From the late 1970s to 1992, the acronym V.A.G was used by Volkswagen AG as abrand for group-wide activities, such as distribution and leasing Contrary topopular belief, “V.A.G” had no official meaning, and was never the name of theVolkswagen Group
On 30 September 1982, Volkswagenwerk made its first step expanding outsideGermany by signing a co-operation agreement with the Spanish car manufacturerSEAT, S.A
In order to reflect the company’s increasing global diversification from itsheadquarters and main plant (the Volkswagenwerk in Wolfsburg), on 4 July 1985,the company name was changed again – to Volkswagen Aktiengesellschaft(Volkswagen AG)
On 18 June 1986, Volkswagen AG acquired a 51% controlling stake in SEAT,making it the first non-German subsidiary of the Volkswagen Group On 23December the same year, it became the Spanish company’s major shareholder byincreasing its share up to 75%
In 1990 – after purchasing its entire equity – Volkswagen AG took over the fullownership of SEAT, making the company a wholly owned subsidiary, and on 28March 1991 another step to the expansion of the group’s activities was madethrough the signing of a joint venture partnership agreement with Škodaautomobilová a.s of Czechoslovakia, accompanied with the acquisition of a 30%
FPT University – Introduction to Management – MGT103 – Su23
Trang 71Creating a positive work environment is also a major motivating factor Besides, set
up positive rewards when employees achieve the set targets
If employees have a new idea, motivate them and give them the responsibility tocomplete the idea
4 What measures are in place to control the quality of services/products offered to customers?
The Volkswagen Group is one of the world's leading car manufacturers, with manyfamous brands such as Volkswagen, Audi, Porsche, Skoda, and Lamborghini Inorder to maintain its competitive position and reputation, the Volkswagen Grouphas adopted many measures to control the quality of services/products provided tocustomers In the current era of globalization and fierce competition, maintainingand improving the quality of products and services is a key factor for businesses tosurvive and develop
4.1 Apply a quality management system
One of the important measures to achieve this goal is the application of a qualitymanagement system (QMS) based on the ISO 9001 standard The ISO 9001standard is an international QMS standard developed by the Organization forStandardization International (ISO) developed and issued This standard sets outrequirements for defining, controlling, and continuously improving processeswithin a QMS to ensure that the needs and expectations of customers andstakeholders are met [44] [45] [46]
The first benefit of applying ISO 9001 to the Volkswagen group is to help improvethe operational efficiency of the business According to ISO 9001, businesses mustclearly define the processes in the QMS, from design, production, assembly, andinspection, to delivery and product warranty These processes must be continuouslymonitored, controlled, and evaluated to detect and correct possible errors or risks.FPT University – Introduction to Management – MGT103 – Su23
Trang 72This helps businesses save costs, time, and resources while improving the quality
of products and services According to the Volkswagen Group report 2020, theapplication of ISO 9001 has saved businesses 2.5 billion euros in the year, andincreased customer satisfaction rates to 95%
The second benefit of applying ISO 9001 to the Volkswagen group is to helpstrengthen and enhance the image and reputation of the business in the internationalmarket When you receive ISO 9001 certification, it shows that you have compliedwith international QMS standards, and are committed to providing customers withhigh-quality products and services This helps businesses increase trust andcooperation with customers, partners, and government agencies around the world.According to a 2019 World Trade Organization (WTO) study, businesses with ISO
9001 certification are 10% more likely to export than businesses withoutcertification The Volkswagen Group is one of the businesses with an extensivedistribution network in more than 150 countries and is the world's largestautomobile manufacturer in terms of sales
A third benefit of applying ISO 9001 to the Volkswagen group is that it helps driveinnovation and continuous improvement in the QMS The ISO 9001 standardrequires businesses to define quality objectives and plan to achieve them Theorganization must also conduct QMS audits, assessments, and reviews to identifyopportunities for improvement and take necessary measures This keeps businesses
up to date and in line with customer and market requirements and expectations andencourages creativity and learning within the organization A prime example ofinnovation by the Volkswagen group is the development of electric and smartvehicles, in response to the need for environmental protection and traffic safety
In summary, this standard sets forth process, documentation, testing, and continualimprovement requirements to ensure that the Volkswagen Group's products andservices meet or exceed the expectations of customers and management agencies.FPT University – Introduction to Management – MGT103 – Su23