Solutions to Issues Faced by Volkswagen

DIPLOMA OF BUSINESS
MANAGEMENT

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Contents
Introduction............................................................................................................... 1
Reasons for these issues................................................................................................ 1
Solution to issue......................................................................................................... 1
Conclusion................................................................................................................ 3
References................................................................................................................ 3

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Introduction
For a company it is critical to manage the factors that might have impact on the operations
and growth of the company and also ensure the way in which they are dealing with the issues
that exist within the organisation. Volkswagen which is facing issues such as fines due to
emission laws and there is also decrease the sales of the car due to image failure after
emission scandal of Volkswagen (Markowitz, et al. 2017). Apart from these they have also
faced fines from different governments due to product quality. This part of the report will
address the solutions to the issues that are faced by the Volkswagen.
Reasons for these issues
Some of the reasons why they had to face such issues are as follows:
 Lack of environment friendly business policy: The policies of the company do not
support designing cars that are more environment friendly as their major focus was to
make profits.
 Lack of strong management: It is seen that in the case of scandal that no individual in
the management opposed such incident to take place (Terry-Armstrong, 2016). They
did not implied corporate governance rules while managing their operations.
 Poor marketing: Post such scandal, the company needed to do more aggressive
marketing to save their image but they did not. This is major reason that is some of
the countries like Germany Sales decreased.
Solution to issue
There are many things that could have been done by the company so as to find out the ways
in which they can deal with the issues faced by Volkswagen. Out of which some of the ways
are:
 Re-designing and implementation of ethical framework: At the decision making level,
it is critical for the management to make sure that they apply all the ethical
consideration defined in the company policy and the challenges that might confront
their business model. Re-designing of the ethical standard within the organisation also
means that it is followed strictly. There should be an ethics committee within the firm