Volkswagen Group Analysis and Strategies

This assignment delves into a comprehensive analysis of the Volkswagen Group. It examines the company's market share, strategic partnerships (e.g., with Tata Motors), core values, leadership styles, commitment to sustainable management, organizational structure, and key performance indicators measured using tools like the Balanced Scorecard. The analysis aims to provide insights into Volkswagen's strengths, challenges, and future strategies.

Organizational
Behaviour final

ABSTRACT
Organisational behaviour poses that their most important focus of research would be on
behaviour of individuals in company. It is discussed for the motivation theory in proper manner.
The report is based on Volkswagen, which is founded in year around 1937 and firm is serving
people with Auto-mobile sector. It will discuss about culture environment, expanded 7's, SWOT
and PESTLE of company and various leadership styles as well.

Table of Contents
INTRODUCTION...........................................................................................................................1
Description of Volkswagen.........................................................................................................1
Overview of organisation current position..................................................................................3
Culture of a company..................................................................................................................4
Expanded 7's and its importance.................................................................................................7
Organisational charts...................................................................................................................8
Balanced Scorecard analysis.....................................................................................................12
SWOT analysis of Volkswagen................................................................................................13
PESTLE analysis.......................................................................................................................14
Leadership style and theories used by an association...............................................................14
Major scandals or issues in Volkswagen..................................................................................17
Recommendation for change.....................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Organizational behaviour is a term which signifies the study of human nature or
employees performing at workplace in order to maintain the peaceful environment an enterprise.
In fact, investigation of OB is segmented into three ways such as; individuals in an association
(micro level), working team (meso -level), how an organization may behave (macro level)
(Ahrne and Brunsson, 2011). Volkswagen is a German auto-maker which was founded in
around 1937 by German labour front by having its headquartered situated in Wolfsburg.
Basically, it has been observed that in 2016 this association was consider as a largest automotive
company in terms of sales. However, main objective of an organization is to offered best or
qualitative cars to their customers by using various useful or appropriate promotional methods.
Thus, main objective of this assignment is to highlight previous or current status of referred
company at European marketplace. Along with this also throw some lights on genuine reason
behind change and its effect on entire association. Moreover, number of issues or problems are
also encountered by company while running their business due to fluctuation in external or
internal factors is also outlined in this project. Apart from all these information, this report is
mainly design for understanding the influence of following organizational charts before and
after. At the end of this assignment an effective recommendation is also provided by CEO of an
association.
Description of Volkswagen
Volkswagen is a multinational German company whose main objective is to design
beautiful and impressive cars with unique features which make their products different from
others (Bolino and et. al., 2013). Basically, it was established in almost 1937 by German labour
front by locating its headquartered in Wolfsburg and trying to becoming a one of the leading
association in automotive industry. Initially, German people are not having enough money or
can't able to afford luxury cars of current models due to shortage of funds as well as Germanic
society are legging behind. As a result out 50 German family only one of them are able to buy
luxurious cars rest of them are satisfied with motorcycle. But in coming days, due to emergence
various successful companies just like Volkswagen and coming up with new ideas in order to
raise the living standard of German society. Thus, to seek the potential new market few of car
makers stated emerging independent “people car” projects such as; Mercedes 170H , Adler
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autobahn, steyr 55 and various other. Therefore, an effective profile of an organization is
described as follows:-
Name:- Volkswagen
Type of industry:- Automotive sector
Founded:- around 28th may 1937 (completed more than 80 years)
Headquarters:- Wolfsburg, Germany
Name of founder:- German labour front (Deutsche Arbeitshfront, DAF)
Serving area:- Across international boundaries (world wide)
Significant members:- Herbert Diess (Chairperson of the Board of Management of Volkswagen
Passenger Cars brand)
Production:- approximately 6.073 million units (as per annual report of 2016)
Number of employees:- nearly 626,715
Website:- volkswagen.com
(Source:- Sorabjee, 2017)
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Illustration 1: Tata Motors and Volkswagen Group

According to above representation of logo it has been identified that TATA groups and
Volkswagen are combined together for expanding their business across international boundaries
in order to gain maximum benefits (Chiaburu and et. al., 2011). Along with this as per above
tabular information it has been observed that Volkswagen group is a very large organization by
having number of employees working under this.
Consequently, Volkswagen was first exhibited and sold-out in united states in around
1949. Thus while entering into a U.S market, this organization may briefly sold as a victory
wagen and Volkswagen of America was formulated in almost April 1955 in order to increase
their sales or services at American marketplace. However, day-by-day sales of an association get
increase by extended their car projects in various countries and coming up with innovative ideas
to seek the attention of millions of clients. Along with this, directors of company also trying to
design numerous of assignments at different marketplace for gaining the attention of domestic as
well as foreign clients (Coghlan and Brannick, 2014). Instead of all this, Volkswagen also
implemented number of change in their company by considering recent choice or preferences of
customers and tries to manufacture cars with new trends.
Overview of organisation current position
It has been observed that Volkswagen is expanded across international boundaries in
order to generate maximum revenue by facilitating domestic as well as foreign clients. In fact, it
is not easy to manage or handled a large enterprise due to emergence of number of competitors.
Along with this, regular fluctuations in micro and macro factors have a greater impact on success
or development of an enterprise. However, according to annual report of 2016 Volkswagen is a
growing rapidly by removing their success barriers and increasing their sales with the use of
various modes of advertisement (Dewettinck and van Ameijde, 2011). Thus, their revenue
increases by around 217.3 billion EUR and having famous subsidiaries such as ; Audi, Skoda
auto, Porsche and so on. Apart from this, their market shares also get maximized due to attentive
nature of overall staff members as well as CEO of an organization.
According to survey report, selected association have implemented numerous of
modification in their current products or services due to emergence of recent trends as well as
change in customer choice or preferences. Additionally, modernization of world also enforce
director of an enterprise towards alternation in their recent cars to compete with their rivalries
which are available at European marketplace. Thus, it has been understood that currently
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Volkswagen are consider as a new global sales leader in automotive industry because of their
high productive and succeeded in satisfying their customers of different marketplace.
(Source:- Pare, 2012)
According to above representation it has been identified that in U.S market market share
of Volkswagen increases day by day due to maximization in customers demand because of their
products features or services (Friston, 2010). In fact, America is a well educated and developed
country because of members living there are standardized with impressive life styles.
Instead of this, it has been summarised that CEO of an organization have implemented
number of alteration or reformation in their existing policies by accumulating necessary
information in order to capture attention of customers as well as succeeded in gaining their trust
also. Therefore, lots of improvement is done by managerial team of a company and efforts to
become a leading association in automotive industry.
Culture of a company
As a CEO of an association it has been observed that from last 25 years Volkswagen is a
part of specific group which was seems as a leading association in auto-maker industry because
of their different organizational culture, norms, values etc (Hilyard and Cunningham, 2012). In
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Illustration 2: Volkswagen market share

fact their main objective is to offered splendid quality of cars or impressive vehicles by
satisfying customers desires or demand. Thus, it has been identified that one of the most
indispensable pillar of Volkswagen is its human resource or a team of large number of
employees due to which they get succeeded in attaining their set objective or targets. Around
10000 labours are working under this enterprise including specialist persons, trainees and interns
in order to live their life comfortably. Along with this, major objective of employees is to learn
something new or innovative by gaining experiencing and working under experience members
(Horner and Swarbrooke, 2016).
Moreover, their leaders are also skilled or talented by having capability of dealing with
various difficult circumstances. In fact they are ensuring that entire staff members may
accomplish their work on regular basis without delaying it.
(Source:- Core Value, 2016)
According to above graphical presentation it is understood that vision of Volkswagen is
to become a leading company of automotive sector at European marketplace by following
appropriate culture, norms, policies, strategies, rules and regulation (Hunter and et. al.,2013).
Thus, this above core values shows that this organization believes in work in a harmony by
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Illustration 3: Core Value

maintaining a positive relation with their employees, shareholde4rs, customers and various
other important components.
Apart from above core values, sever other most respected values of Volkswagen are
described as follows:- Togetherness:- First and foremost policy of referred association is that they all believe
in working in a team and understand the power of togetherness which resulted in
completion of specific task in a minimum duration. Thus , this factors shows that
managers of Volkswagen always trying to maintain cooperation among staff members
by creating a mutual understanding between supervisor and subordinates (Huntingford,
2012). Consumer oriented:- As per this element, it has been understood that they believe in
satisfying needs or demand of customers in a given time frame. It means they give full
attention of their clients and try to design their vehicles as per their choice or
preferences. Genuine:- Members or employees of Volkswagen are always honest towards their
products or services without cheating with their customers. Along with this also tries to
maintain long term relations with clients by gaining trust or loyalty. Mindful:- Director of an enterprise use their minds while producing goods and during
designing process. It means, before manufacturing any new car or items managerial
team definitely consider all the necessary elements which affects sale of a product. Courageous:- They are very confident while introducing their goods or services across
international boundaries.
 Efficient:- Employees are skilled or committed towards their assigned task or activities.
Hence, it has been analysed that corporate culture of Volkswagen changes as per
situation and from last decades they believe in equality amongst staff members (Jin and Costa,
2010). In fact, in recent time period, management team including board of directors as well as
employees are discussing together in order to create something new or modern. It means they are
focussing on implementing advanced technology by increasing the responsibilities of their
employees.
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Expanded 7's and its importance
The 7's framework is also known as VBM (Value based management) which help to
organise a firm in effective mannerism. Therefore such 7's together as factors determine and tell
how the corporation operates in right context. Hence, they are as follows:
Shared values: This part of 7's is that point where all the other steps are interconnected
with this value. Shared values means as what for organisation is there in market and what are
those things in which firm believes to work on. Moreover, it is normally based on entity's central
beliefs and the attitude Volkswagen is having in accomplishing their goal and objective.
Strategy: Volkswagen makes many strategy to perform in right way and thus strategy
and decision includes various things like different scare resources which has to be allocated by
company as (Environment, competitors and customers) all such criteria help firm to attain their
identified goal and objective.
Structure: This has to be opted in correct format as this help in getting effective working
in organisation. Although it is known as whole organisation unites themselves with each other
like functional divisions (top to down format), networking and centralization etc. Volkswagen
has to choose the right structure so that work or task can be cone in proper manner.
System: Different procedure and policy are there which act as base for characterizing
that how the task and work is important for company like (hiring, performance appraisal and
financial system etc.) which make firm to complete their task on time.
Staff: It is required to have number of staff should be available with company so that
effective working can be done and there are various personnel who is having a different nature
and culture and according to such, Volkswagen has to work and allocate work so that timely task
can be completed and entity can accomplish their goal and objective.
Style: In organisation there are various people who is having a different culture and
nature as organisation has to choose that culture of style which does not harm any employee in
company. Although, it is also required to see how managers behave in management style and in
attaining target and aim of firm.
Skill: In Volkswagen various people work according to their capability and skill. Hence,
entity has to develop the motivation level in them so that they can increase their productivity and
performance level in organisation which will directly help Volkswagen to accomplish their
future targets. Core competence should be strong of workers in firm.
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Organisational charts
An association chart is a diagrammatic representation which highlight an effective
structure of Volkswagen and relationship as well as relative ranks or position of members
performing at workplace. In fact, it is also utilized by company in order to show connection of
one department to another and outlined roles or responsibilities of overall staff members
available at workstation. Thus, organisational chart is very much indispensable in every
enterprise either small or large because it is beneficial or effective in accomplishing task in a
defined period (Lancaster and et. al., 2013). Therefore, relations which is determined by
graphical representation are ; managers to sub-superiors, directors to managerial team,
employees to employers, chief executive to several departments and so on. Moreover, when an
enterprise chart extended too large then it may classified into various smaller sub charts in order
to highlight roles of separate sections. Hence, various types of organization structure are defined
as follows:-
 Hierarchical.
 Matrix.
 Horizontal.
As a CEO of Volkswagen it is essential to classified work into different sections for
completion of work in a minimum time frame by considering relevant facts or figures. Basically,
it is identified that splitting of work is very much beneficial for company in various ways that is
highlighted as follows:-
 Completion of work in a defined time period.
 Create healthy relations between employees and employers.
 Maintain the healthy environment of an association.
 Attainment of enterprise goals as soon as possible.
Above components helps in understanding the roles of employees as per their
specialised. Organizational charts is beneficial for Volkswagen in various manner that is defined
as under:- Proper designing:- First and foremost advantageous of using organisational chart is to
create an effective structure to meet the set targets of an association in a defined time
period (Miller and Heather, 2013).
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 Assisting employees:- According to this element, charts also helps in showing roles or
responsibilities as well as job role of staff members performing at workplace as per this
specialisation. Thus, if every individuals get aware about their obligations towards
enterprise then it automatically encourage them towards their personal or occupational
goals by assisting corrective path. Classification of work:- Structure of a company also segregated work in between
different departments for proper functioning of an organization. It means, if business
activities are distributed between whole staff members then workload may get minimized
from one person. Highlight business relations:- Organisational charts is also highlight positive relations
between employees or employers, managers to directors and various others (Parker and
Collins, 2010). Identification of workload:- One of the major advantages of chart is that it shows actual
work pressure upon employees or labours with the help of effective structure. Minimization of losses:- If an association succeeded in assigning task to employees as
per their qualification, skills and specialisation due to which they get succeeded in
accomplishing allotted work in a minimum duration. As a result, maximum profit is
earned by minimizing losses. Enhancement of employee performance:- Presentation of employees automatically get
enhanced by designing proper functioning of an association. Coordination between employees:- Cooperation amongst workers are also maintained by
managing entire work in an efficient manner. Maintain environment of an association:- If employees coordinated between each other
then it creates a healthy relations between which resulted in creation of peaceful
surrounding of an enterprise.
 Assessment of budgets:- Charts of a company is also useful in analysing the budgetary
system of an enterprise by estimating future or current expenditure at workplace by
considering relevant facts or figures (Piaget, 2013).
Thus, above elements shows that organizational structure shows an effective plans or
policies which is followed by entire association to attain their similar objectives or goals. Hence,
managers of Volkswagen going to distribute their commercial activities into various department
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for completing it in a defined time period by satisfying consumers. Volkswagen is a large
multinational corporations serving domestic as well as foreign clients by manufacturing
innovative or creative cars with unique features for generating maximum revenue.
(Source:- Organizational Chart, 2017)
Thus, adoption of method of classifying job between staff members have a greater
influence on an enterprise as well as employees. Hence, an effective assessment of “before and
after” using organizational chart process is described as follows:-
Condition of Volkswagen “before” implementing distribution technique:- If an
enterprise is not going to classifying commercial roles or responsibilities between employees or
employers then it creates confusion while completing task or activities (Rego, Ribeiro and
Cunha, 2010). In fact entire company get affected due to this in various manner which is shown
as under:-
 Chances of conflicts:- Initially, it may create disputes or contentions amongst staff
members and managers while performing their job role due to availability of inaccurate
information about their job role. As a result their performance get affected and failed to
achieved set targets.
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Illustration 4: Organizational Chart

 Creates confusion or coercive:- If there is absence of proper clearance about
obligation or duty then it immediately creates cognitive state which resulted in wastage
of time or working hours.
 Influence surrounding:- When Volkswagen is not using this organizational chart and
working without making an effective plan or structure for an enterprise then peaceful
environment of an association get impacted. As a result performance of employees get
hampered in various manner.
 Affects business relations:- According to this component it has been understood that
when Volkswagen is not using this strategy then they are failed in making business
connection with their competitors as well as not able to create a positive relation
between higher authority or lower. Hence, if influence their overall image at European
marketplace and decreases their sales.
 Improper flow of communication:- Lack of interaction problem between managers or
staff members is occurred due to ineffective structure of a Volkswagen policies.
These above problems or barriers faces by enterprise due to ineffective business plan and
due to absence of organisational charts (Rice, 2013). But now its time for highlighting the
benefits of implementing appropriate or suitable plan or strategy for commercial activities by
disseminating task between employees.
Situation “after” drawing organizational charts:- As per statistics it has been
observed that Volkswagen is encountering number of problems or issues which affects their
success or development because of inappropriate business plan . Thus, CEO of an association is
implemented one of the major schemes that is distributing task between employees with the use
of effective organizational charts. Hence, condition of a company after this highlighted below:-
 Attainment of set objectives in a defined time period by assigning business activities as
per employees specialisation or talent (Robbins, Judge and Campbell, 2010).
 Authorities or power are distributed amongst staff members in order to maintain
cooperation between them.
 Minimization of losses due to accomplishment of task and activities in a minimum
duration.
 Volkswagen succeeded in generating maximum revenue by designing splendid products
or services.
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 Transferring goods at a right time.
(Source:-Volkswagen SUSTAINABLE MANAGEMENT, 2017 )
As per above chart it has been identified that Volkswagen classified into various groups
or departments in order to accomplish their business operations in an efficient manner by
distributing between various staff members (Tannenbaum, Weschler and Massarik, 2013).
Balanced Scorecard analysis.
A balance scorecard is that which is being used to identify and improve their different
internal business function as well as their external outcome too. Normally, it is used to provide
feedback to firm.
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Illustration 5: Volkswagen SUSTAINABLE MANAGEMENT

Source: Balanced scorecard. 2018.
It is that which provide framework and various languages that make to describe the
strategy in consistent and reliable manner as well. The main theory of balanced scorecard is to
have measure of factors which create various values for firm and it directly influences its ability
to prosper in right way. Although it is somewhere a visual tool which is being used to know
effectiveness of various activity in comparison of strategy plan made in firm.
SWOT analysis of Volkswagen
Volkswagen has to make an SWOT analysis of their company which help them to know
that what are the strength and weakness firm is having which will help in attaining their goal and
objective of entity. SWOT of company is as:
STRENGTH WEAKNESSES
 Volkswagen is having a strong brand.
 Company serve million of people wit
their Cars.
 It is also a growing brand and having a
largest manufacturing facilities in firm.
 Volkswagen is that which is having
poor brand recall.
 Company is having a limited car
design.
OPPORTUNITY THREAT
 Company can go with manufacturing  Inflation create hurdles.
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Illustra
tion 6: Balanced Scorecard

fuel efficient Cars.
 Can go with optimization of resources
so that they can minimize losses.
 High competition is there which result
into a great threat to company.
PESTLE analysis
Volkswagen has to make an PESTLE analysis which help them to make a correct
decision and can be used in evaluation as well. Pestle analysis is as follows:
Political: Various discount policy encourages people to buy hybrid cars and electric cars
which help company to increase their sales.
Economical: This is something which affects firm in various ways as implementation of
various policy programs is moving underway which is making and bringing strong crisis repair
of the economy.
Social: Although in UK, statistics says that older people take step further to protect their
environment as because more population is aging.
Technological: Technology of hybrid cars is increasing as investment is huge.
Legal: Legislation for committing vehicle manufactures for specific co2 and their
registration was passed.
Environment: Therefore emission of Co2 generated by cars and 14% emission was
calculated in UK.
Leadership style and theories used by an association
Volkswagen is a leading association and having a maximum market share at marketplace
because of their skilled or experienced leaders. Along with this they adopted various successful
styles to lead their team by managing overall behaviour of an association. Leadership style
determines different approaches of a leader in which they provides direction, planning and
motivation to their fallow workers. This study was performed by Kurt Lewin in 1939 to identify
different styles of leadership. There are some different leadership styles explained such as-
The pacesetting leader- Theses leaders are expect more models excellence and self
direction to their employees. In this, leader is provides well being direction to workers which is
helps to improve their capacity of working. This style is works best when employee's are already
more skilled and self motivated (Tremblay and et. al., 2011). In it leaders are requires quick
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result for each objectives and they always works with more effective and efficient manner than
others. These types of leaders are always says that Do as I do because they only want accurate
results of all perspectives.
The authoritative leader- This leadership styles is motivates employees to work as a
team for a common goal and objective. They are never leave a individual alone and provides
them proper learning if they needed. This process is works best when employees needs new
objectives and goals because its approaches will be changed and the do not have to require more
guidance to work on it. In this, leader are always stand as a inspiration of others and they always
says that come with me. They are more motivated to provides particular skills for a clear vision
and mission.
The affiliate leader- In this process, leaders are maintain a emotional relations with their
co- workers. They are believe to make a bonding and working spirit for the organisation. This
style is works when employees feel demotivated and stressful with their works or co-workers.
Their leader is works to boost their self confidence and improve their skills to work harder. They
provide them some training to control their emotion in difficult situation and decision making
skills that how to deal with them (Whitman, 2010). This style is not uses by more effectively in
organisation because leaders need to be more strong in their emotion to deal with competitive
approaches. Its leaders are always that says people come first.
The coaching leader- They are the developer of people and workers for new
competition. This coaching style is works best when leader is helps to improve workers strength
from starting. They are provides them new training to develop their interpersonal skills and their
working ability according to organisations objectives. Leaders are always improve their capacity
to work in different atmosphere with effectively and efficiently. It will not working when their
teammate are not show their interest to learn something new or make some changes in their
Woking style. These leaders are more professional with their coaching and training styles and
they expect more and more from each individuals. This type of Coaching leaders are says try this
more and more whenever they will not get professionalism in their skills (Wong, SPENCE
LASCHINGER and Cummings, 2010).
The coercive leader- This type of leaders are more strict in their approaches because
they believes in orders. Their approaches are more effectively work in emergency situations.
This style is believe in helping to each others or control problems when everything else has been
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failed. In it all the workers are learning to attempt situation in emergency cases. This approach
should not be avoided by anybody in organisation because this is most important and needful
approach for organisation. This type of leaders are believes to say Do what I tell you because
they are more experienced to handle critical situation by their accurate decision.
The democratic leader- They are the leaders who are provides skills for each and every
individual to ask their ideas and provide their opinion in front of each and every one. This
leadership plan is always take each and everyone on a same level. This will provides them a
perfect communication skills to put their thoughts and ideas in front of each and every one. It is
not best choice in emergency situations because at that time all the organisation need a quick
decision and efficient decision making skills according to particular situation. Theses are needed
when staff members are not informed particular guidance and sufficient information to each and
every one. In it leaders are says what do you think.
Leadership theories-
Theories are explain concept and practices of leadership. Theories are always classify
different approaches of a particular topic. In it this is elaborate in different perspectives like
process of leadership, relationship, combination, personalities of worker's and their behaviour on
various situations (Sorabjee, 2017). There are two specific theory which should have to be
follows by Volkswagen company-
Skills theory- This theory is based on provide learning aspects to employees according
to their skills. In this leaders are performed to enhance their interpersonal skills and their quality
approaches in all situations. It is not consider to work in different divisions but it is simply
explain that learned new skills, acquired knowledge, develop new working styles to perform
well in all situations (Organizational Chart, 2017). For this organisation are introduce various
process and this will not only helps for a individual to works well in only a single company but
this will provide them ability to improve their ability for their future approaches.
Situational theory- It is includes situational fact of organisation. For example
Volkswagen starts new and innovative servicing practices for their clients to reduce time factor
of firm and customers (Pare, 2012). For this new objectives of organisation, employees needs a
particular training and knowledge skills to provides effective services to people. In this case,
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leader of workers provides them different training and learning aspects to provide their services
more efficiently to customers. In this situation, leaders have also evaluate their skills and
requires ability to adapt or adjust individuals style in different situation according to their ability.
Situational theory is improve decision making skills of leaders according to assessment of
factors. In it, they should have to be more flexible and smooth in their premisses or their
direction for workers. Leaders are always stand as a example for their fallow employees so for
this they also have to work on their decisions according to different situations.
(Source:- Situational Leadership Model, 2017)
Major scandals or issues in Volkswagen
As per the point of view of Van Rooy (2010) Volkswagen had done a scandal in the
month of October 2015 which was based on the emission of carbon dioxide or various poisonous
gases from the vehicles that was being manufactured from their organisation. They had cheated
government as well as customers by showing false report in context of CO2 emission. They
were using a software known as AECD (Auxiliary emission control device ) that gives
inaccurate results and shows false report of the emitting of poisonous gases that causes a large
amount of pollution and affects negatively on the environment temperature. On the other hand
Viswesvaran (2010 )says that Volkswagen had a major push to sell diesel cars in the United
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Illustration 7: Situational Leadership Model

State by stating that their cars have very low emissions. But VW has admitted that approx 10
million cars at internation level involving the eight million in Europe are containing with the so
called “defeat device”. In the month of November they stated that it was found irregularity in
tests for measuring or evaluating carbon dioxide emission scale had affected around 800,000
cars in Europe consisting of petrol vehicle (Situational Leadership Model, 2017). However, it
was told that by going through investigations in the month of December that this only impacted
or affected approx 36,000 of the vehicles produced by VW per annum.
In response, Volkswagen America boss Michael Horn said that they get completely screwed up.
Whereas the chief executive Martin Winterkorn, told that their organisation had totally broken
the trust of their users and the civilians of their country. He had resigned as the consequence of
the scandal and at their position a new person came named as Matthias Mueller who was known
as the former boss of Porsche.
This impacted negatively on the whole business activities of the corporation. Large
number of vehicles get returned back to them after the announcement of result of that scandal.
This badly affected the turn over of venture as their almost contracts got cancelled. There were a
dramatically decrement in the number of their customers as users are not trusting any more on
them (Volkswagen SUSTAINABLE MANAGEMENT, 2017). And as a result market share of the
company started declining. The complete brand image of Volkswagen get destroyed which
creates a great loss for the corporation. In order to recover from these critical situations, VW
have to create some strategies so that they again gain the trust of their customers.
Hence, according to report of 2015 it was announced that around five millions of
Volkswagen branded cars, nearly 2.1 million Audi motors, almost 1.2 million of skoda vehicles
and approximately 700,000 seat cars and around 1.8 million Volkswagen commercial motors are
fitted with wrong device in their engines.
Recommendation for change
As a CEO of Volkswagen it has been identified that changes is a continuous process
which is indispensable for success or development of an enterprise because it helps an
association to seek the attention of millions of consumers. Thus, after analysing above
information or data managing director an organization provided various necessary or useful
suggestion in order to overcome issues or scandals faced by Volkswagen while running their
business (Core Value, 2016). Hence, an effective recommendation is described as follows:-
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 Need to improve their existing policies or strategies.
 Requires to hire or appoint skilled or knowledgable employees so that they can able to
resolve their business issues or barriers.
 Make plans as per current facts or figures.
 Design their vehicles as per consumer taste or preferences.
 Need to manufacture motors which will not pollute environment at high level.
CONCLUSION
From the above information , it has been observed that understanding of organizational
behaviour is very much indispensable for large or small enterprise in order to attain their set
objectives or goals. This assignment is based on overall life cycle of Volkswagen which is
multinational automotive enterprise whose main objective is to design splendid products as per
customer taste or preferences. Along with this, report also highlighted major scandals of referred
association while running their business as well as shows current position of a company at
international marketplace. Apart from this, major objective of this report is to throw lights on
effective suggestion which is given by CEO of an association for removing barriers or obstacles
of Volkswagen.
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REFERENCES
Books and Journals
Ahrne, G. and Brunsson, N., 2011. Organization outside organizations: The significance of
partial organization. Organization, 18(1), pp.83-104.
Bolino, M.C and et. al., 2013. Exploring the dark side of organizational citizenship
behavior. Journal of Organizational Behavior, 34(4), pp.542-559.
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