Report on Business Project - Volkswagen

BUSINESS PROJECT

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................2
1. (a) Comparative Analysis of the Volkswagen competitive position in its various markets....2
1. (b) What issues does the Volkswagen need to consider when trading across borders............8
2. Discuss what Volkswagen needs to consider enhancing their business................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Multinational companies are those which are trading and operating in more than on
nation of world or they are having their existence in almost all countries of world. In this current
analysis there would be study on one of the largest automotive company which is Volkswagen
AG. This company is the German Multinational company that was founded in the year 1937 by
the German Labour Front. Volkswagen in year 2016 was the world's largest automotive seller
company with having production of about 6.07 million units in that same year. The organisation
was at its starting producing only luxury cars which were unaffordable for common people this
meant that company was having very low customer base during its early times. Thus, to increase
this base and its popularity among people of Germany and around the world company decided to
make their projects with name of People's Car. This is also regarded to as current slogan of
company.
In this current assessment there would be introduction of the company and what are the
marketing or competitive strategies which they are making at present or what issues or problem
do the company face. As the company is trading across its borders in numerous countries so it is
common that management would be facing many general issues like that of cultural or legal one.
At the end of this report conclusion and recommendations for coming years plan would be given
so that this could help company in their better way.
Volkswagen AG which is world famous German automotive company is having its
operations and factories almost all around the globe. They are producing, manufacturing and
selling world class models of car and van which is for almost various people like they are having
luxurious, sports, sedan and small cars as well. They are following immense competition by
various car manufacturing companies like that of Toyota (which is the largest company), BMW
Mercedes etc., and Volkswagen is the public limited company which is being listed on Frankfurt
Stock exchange and London Stock Exchange as well. There are various car brands that are
included under this group like that of Audi, Bentley, Bugatti, Lamborghini, Seat, Skoda and
Porsche. Other than this they are also having motorcycles as well, like that of Ducati. Company
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is the largest brand in Europe with having approximately 20% of the market share which in year
2010 had sales record of about 6.29 million with the worldwide share was 11.4%. Merely on the
same time company is also fighting to make up its presence in world after the fuel emission
scandal in year 2010 then in 2013 it become world's most fuel efficient car with its Volkswagen
XL1 model.
It was found by US Environmental Protection Agency (EPA) that at the time of normal
driving conditions of car emission controlling software was shut down which then increased the
pollution to about 40% more. After company admitted that they were using defected device then
they later on called off about 482000 cars with the four cylinder 2.0 litre TDI engines. Company
was fined to about $18 billion and other criminal charges.
Volkswagen is been chosen in this current report making as company after facing gas
emission scandal it is rising up into market with having stronger competitive position. It is been
used due to it rising up its strength and overcoming weakness into market which they are having.
MAIN BODY
1. (a) Comparative Analysis of the Volkswagen competitive position in its various markets.
Comparative analysis would be included to as comparing two companies on the bases of
their process, products, qualification, systems and data. So in this part there would be analysis of
Volkswagen and its two market namely Germany and USA (Saranga, Schotter and Mudambi,
2018). Company is getting very tough competition from various competitor s like that of General
Motors, Toyota and BMW in across the world. Volkswagen is having its presence in all markets
of world especially in German and US markets as they are having high amount of sales and
production of company. The mission statement of company in all its market around world could
be that of working with high qualified professionals who are devoted to provide best form of
services to their customers in market. This particular mission would be then lined up with its
environmental motive which is that of creating safer surroundings, providing quality of products
and those should be safe for customers as well.
Germany:
In the market of German which is the home country of Volkswagen they are in current
year 2018 are recovering with the market up of 8% as there was downfall in last year. The
demand of SUV and luxury cars were increasing which is up to 30% of rise and then the sales of