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Managing Cross Border Report Volkswagen Group

   

Added on  2020-04-07

15 Pages3495 Words45 Views
Managing cross the border – Volkswagen Group 1MANAGING CROSS THE BORDER – VOLKSWAGEN GROUPName:Institution:Course:Tutor:Date:

Managing cross the border – Volkswagen Group 2Table of ContentsExecutive summary.....................................................................................................................................2Introduction.................................................................................................................................................2Structure of Volkswagen Group..................................................................................................................2Control and coordination mechanism of Volkswagen Group......................................................................3Five stages of evolution for Volkswagen Group........................................................................................4Exporting with local dealers....................................................................................................................4Create sales and marketing supporting host country..............................................................................5Production base shifted to host country.................................................................................................5More functions moved to host................................................................................................................6Some essential functions moved back to center.....................................................................................7Ways of designing an organizational structure............................................................................................8Design problem.......................................................................................................................................8Determining types of structure that fits business needs.........................................................................9Defining executive and management teams...........................................................................................9Establishing performance metrics and compensation.............................................................................9Strategies and factors that warrant a structural change in an MNC..........................................................10Control Mechanisms for Global Firms.......................................................................................................11Conclusion.................................................................................................................................................12List of References......................................................................................................................................13

Managing cross the border – Volkswagen Group 3Executive summaryThe aim of this research paper focuses on addressing the issues that comprise of management of an organization across the border, in particular, Volkswagen Group. The paper describes the structure of the company as well as control and coordination mechanism of Volkswagen Group. The issues addressed in the article are the five different stages of evolution for the multinational company and four ways of designing the structure of an organization, that operates in the global marketplace. It also describes the strategies along with factors that warrant the structural change in the Volkswagen Group as an example of the multinational company. Theideas in this presentation explain how different managers in international business can be able to adapt to appropriate organization structure based upon the strategy of the operations of the company.IntroductionStructure of Volkswagen GroupVolkswagen Group is a renowned German multinational automotive manufacturing corporation with its headquarters in Wolfsburg, Lower Saxony. Volkswagen Group remains to be one of the top multi-brand units within the automotive sector. The Group deals with actions ofdeveloping vehicles as well as components of the Group brands. The company also involves in the activities of production and selling of cars especially passenger vehicles together with light commercial cars, and vehicles brands for Volkswagen Commercial. Besides, business activities of the company comprise of the Automotive along with Financial Service sections that include activities of leasing and management of fleet (Volkswagen Group | Announces further

Managing cross the border – Volkswagen Group 4investments in innovation, technology 2013, p. 11). Business actions of several components of the organizations within Volkswagen Group concentrates on creation, production and promoting cars for passenger, trucks, light business vehicles, together with buses. The proportion of products produced by the Volkswagen Group extends from motorbikes to fuel-economical small cars along with luxury cars. The Multinational Company (MNC) focuses on the activities that aidit in coordinating its operations in a strategy that leads to massive revenue in every financial year. Therefore, the objective of this research article is to address factors involved in the managing across the border within Volkswagen Group. Control and coordination mechanism of Volkswagen GroupThe ideas of control, as well as coordination of overseas subsidiaries, remains as the permanent task for operations of Volkswagen Group just like other multinational companies. Thestrategy to monitor and coordinate every activity by a company is a permanent work regardless whether its operations base in Europe, the United States, Asia, or elsewhere in the global marketplace (Abdullah 2016, p. 1). Volkswagen Group follows the mechanism as the mean of achieving common organizational objectives and international management control (IMC). The monitoring and coordination mechanism of the Volkswagen Group allows it to find the best blend between federal together with decentralized process of making decision while it employs several mechanisms. In the attempt by Volkswagen Group to solve effects brought about by the globalization of the market, it has focused on a move towards the kind of loosely coupled network of organizing its operations.

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