Volkswagen Emission Scandal Analysis

This assignment delves into the Volkswagen emissions scandal, examining the problems associated with their manufacturing of diesel cars. It highlights Volkswagen's disregard for environmental regulations, misleading information about emissions, and the use of defective devices to alter readings. The analysis explores the impact of these actions on the company's reputation, market share, and stock price. Furthermore, it provides recommendations for ethical business practices and environmental responsibility.

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INTERCULTURAL BUSINESS COMMPENTICIES
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Introduction.
The world has become a global village in many fields of development and
technological advancements. Thus, many companies have been able to process, produce and
manufacture variety of products in their plants and later on marketing these products to various
potential destinations all over the globe. This has created networking in the world of business
and enterprise. Most of these products that are in the market today are of good quality with high
performance standard rates. This has brought a lot of competition which is described as
unhealthy competition. This results to production of other counterfoil products that highly
resemble the original products in making. Consumers fail to distinguish these two different
products in both short term and long term periodicals. Later on, the products start indicating
some abnormal effects to the consumers and the environment.
On the other hand, some companies have a great track record of many great products
in global market circulation with an aim of making more profits. These products are highly
consumed by the customers all over the world without any iota of regrets and speculations in the
product make. At that point in time, the companies producing these takes advantage of
consumers naivety and introduce certain product containing some defects that can highly affect
the population density and the entire environment in the long run. It takes the courage of the
investigative mechanisms to research on these products produced by world great companies
without minding the company reputations in the market. Sometimes the research reveals various
abnormalities in these products.
Connecting the above assertions to the case study provided, it is very important to
recognize the great work done by the German biggest automotive producer, the Volkswagen.
This company is rated among the best companies in production of automotive in the entire world.
The company have produced popular best sport super cars such as Bugatti and Porsche. These
are one of the best cars the world has ever made and the most expensive as well (Hughes 2008).
Therefore, Volkswagen has being making a lot of profits out of the huge sales. However, an
abnormality arose when the company released another car model that brought some negative
impacts to the population and the environment. The company went ahead and produced millions
of diesel cars that released a lot toxic gases to the environment.

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Analysis of problems discovered in the Volkswagen emission scandal case study.
As mentioned earlier in the context above, Germany has been on the topmost position
in manufacturing automotive and super cars all over the globe. Volkswagen being the best
company in manufacturing the present and most recent models of sport and super sport cars.
Nevertheless, all said and done, the case study revealed several problems associated to the
manufacturing of diesel cars by Volkswagen Company.
To start with, it is good to have ambitious targets to be achieved by any company and
individuals. By 2018, Volkswagen had set ambitious target of emerging the best and the biggest
automaker in the entire globe. This desire triggered an idea of manufacturing diesel cars by
Volkswagen Company (Prasch 2008). This is where the first problem started. Without
considering the implications of releasing the diesel cars to the market, Volkswagen went ahead
and manufactured diesel cars without considering the negative impacts posted to the environment
and the entire population density. They were driven by huge profits that would be generated and
their ambition of becoming the largest automakers in the entire globe.
Secondly, another problem discovered in the case study is Volkswagen
manufacturing diesel cars with environment problems without the consent of World’s
Environmental Regulators. It seems that Volkswagen knew the impact of emissions of toxic
gases from their diesel cars but decided to bend the laws regarding the same. It is important to
adhere to rules and regulations so as to avoid contrivances and negative implications to all
stakeholders in the entire market. Again, unpopularity of diesel cars in USA also become another
problem revealed in the case study. The critical stringent regulations concerning the environment
in the USA contributed highly to the realization of Volkswagen high emissions diesel cars
(Cachon 2012). These regulations are highly regarded in USA and any step to reveal the
underlying implicated is given the first priority by agencies governing these regulations.
Therefore a problem arose when Volkswagen marketed their diesel cars to USA knowing
clearing how their environmental regulation would highly affect their market. This did this
having known the mistake done in ignoring the regulations required before releasing a new
product to the market. They ignored all the emission tests which would have indicated the

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problems of diesel cars and maybe Volkswagen would have devised ways to correct the
emissions before releasing the diesel vehicles to the wider market.
In addition, another problem discovered in this particular case study is interference
with the United States Protection Agency reports on the diesel cars manufactured by
Volkswagen (Bolstorff 2011). After the agency realized the damages caused by emission of
nitrogen oxide, it made Volkswagen to realize the negative impacts demonstrated by these
emissions. Instead of taking the information with good faith and revert on the emissions,
Volkswagen dismissed these claims. This made the agency to innovate a new software that could
test the level of nitrogen oxide gases samples in the Volkswagen diesel engines both in the
laboratory and on transit. The software revealed that the amount of toxic nitrogen oxide in these
engines will result to emission of toxic gases that were neither good to human population nor the
environment.
Moreover, insertion of defect devices by Volkswagen to the diesel engines was yet
another very serious problem revealed in the case study. These devices altered the correct
readings of the real amount of nitrogen oxide in Volkswagen diesel engines.
Recommendations.
1. It is good to adhere to rules and regulations set so as to protect the environment and the
population by Volkswagen and other similar companies.
2. It is important to put the consent of the people and the environment as first priority
instead of being driven by ambitions and profits.
3. We recommend further studies that would cause negative impacts to the environment and
the population.
Conclusions.
In conclusion, it is important to note that the company failed to adhere to the
environmental regulation standards. They went ahead and gave misleading information of
emissions released into the environment. Once it was discovered, Volkswagen had to recall all
the cars sold in the global market. This resulted to great loss in the company in terms of market
share, stock price index and brand popularity.

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References.
Bolstorff, P 2011, Supply Chain Excellence: A Handbook for Dramatic Improvement Using the
SCOR Model, AMACOM.
Cachon, G 2012, Matching Supply with Demand: An Introduction to Operation Management,
McGraw-Hill Education.
Hughes, D 2008, The Ultimate Supply Teacher’s Handbook, Continuum International Publishing
Group Ltd.
Prasch, RE 2008, How Markets Work: Supply, Demand and the Real World, Edward Elgar Pub.