International Business: Strategies of Ford and Volkswagen for World Operations

This article discusses the business strategies of Ford and Volkswagen for world operations. It explores Volkswagen's operations in Latin America and Ford's operations in Europe. The article highlights the investments made by Volkswagen in Argentina and the unprofitable phase of Ford in the European region.

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1INTERNATIONAL BUSINESS
Introduction
The Volkswagen Group is identified as one of the leading multibrand groups engaged in
the automotive sector (Volkswagen.com, 2018). The company’s business strategies primarily
incorporate business activities comprising the Automotive and Financial Services sector.
Furthermore, all brands in the Automotive Division except the Volkswagen Passenger Cars as
well as Volkswagen Commercial Vehicles brands are considered to be legally autonomous
separated organizations. Similarly Fords has reportedly made huge commitments to have
effective operations in Europe (Ford.com, 2018). The following paper highlights the way Ford
and Volkswagen have employed strategies in order to effectively execute world business
operations.
Discussion
Volkswagen’s Business Operations in Latin America
Reports reveal that Volkswagen has made significant investments of €580 million over
the following five years in the production of newly launched SUV in Argentina
(Volkswagen.com, 2018). However, the company has anticipated that from 2020, the
manufacturing plant will aim to execute the delivery process of the new model which has been
established in Argentina and pertaining the other regions of the South American continent. It has
further been noted that the company is essentially aiming to ascertain its establishment for the
successful growth and development of its brand in the global market with the significant
Volkswagen’s Transform 2025+ strategy (Volkswagen.com, 2018).

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The company has been aiming to underpin the positioning of the Volkswagen at the top
of the volume sectors and further accomplishing market shares with newly launched models
exceptionally tailored by Volkswagen in order to accomplish the demands and needs of its
consumer base (Volkswagen.com, 2018). Furthermore, the recent model assignment executed by
Volkswagen in Argentina has been regarded as a significant objective in order to enhance its
brand image and recognition (Volkswagen.com, 2018). It has been anticipated that the design,
volume, size and equipment of the proposed SUV strategized for 2020 market on MQB technical
expertise are besieged in order to appeal to a wide range of customer base comprising various
regions of South American continent and as a result has emerged further momentum to the ideas
pertaining to the strategy aimed by Volkswagen for its Latin American customer base
(Volkswagenag.com, 2016).
Ford’s European Business Operations
The European Business Operations of Fords have witnessed certain unconstructive
outcomes which has led several analysts to dissolve the company’s business operations out of the
European region (Ford Corporate, 2018). It has further been analysed by modern economists that
the closure of Ford’s European business strategies would bring transformations to the enduring
circumstances and further aid the company change its brand recognition. During the unprofitable
phase in the European region of Ford Motor Corporation from 2012-2015, the company lost a
significant amount of around $3 billion (Ford.com, 2018). This has made General Motors
emerge with specific intentions of selling a range of brands in European region. Studies revealed
that the company emphasized exclusively on selling Blue Oval, by further aiming to sustain the
significant Lincoln luxury brand secluded from the region which fundamentally aimed to
enhance Ford Vignale trims (Ford Corporate, 2018).

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Conclusion
Therefore, it can be stated that Ford proficiently proved European productivity ability for
US auto manufacturers with the accurate stability of product, services, competence and
successful brand identity. Furthermore, the restricted variant of MQB has further facilitated
Volkswagen to improve its brand recognition among the Latin American customer base.

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References
Ford Corporate. (2018). Retrieved from https://corporate.ford.com/company/operation-list.html
Ford.com. (2018). Sustainability Report 2017/18: Ford Motor Company. Retrieved from
https://corporate.ford.com/microsites/sustainability-report-2017-18/index.html
Volkswagen.com. (2018). Upward trend in South America | Volkswagen inside. Retrieved from
http://inside.volkswagen.com/Upward-trend-in-South-America.html
Volkswagenag.com. (2016). Volkswagen Konzern - AR 2016 - Structure and Business
Activities. Retrieved from http://annualreport2016.volkswagenag.com/group-
management-report/structure-and-business-activities.html