The strategic planning of Volkswagen

Running head: STRATEGIC PLANNING OF VOLKSWAGEN
STRATEGIC PLANNING OF VOLKSWAGEN
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STRATEGIC PLANNING OF VOLKSWAGEN1
Table of Contents
3. Project C – Identification of the issues that the organization is facing while implementing the
following,.........................................................................................................................................2
Major issues identified.................................................................................................................2
Strategic change...........................................................................................................................3
Recommendations........................................................................................................................4
References........................................................................................................................................6

STRATEGIC PLANNING OF VOLKSWAGEN2
3. Project C – Identification of the issues that the organization is facing while
implementing the following,
Major issues identified
The major issues that are faced by Volkswagen based on its processes in the automotive
industry are as follows,
The levels of competition that are faced by Volkswagen in the automotive
industry are considered to be quite high due to the presence of organizations like
Ford, Toyota, Honda, General Motors and Nissan.
The diesel scandal that is faced by Volkswagen in the year 2015 has tarnished the
image and reputation of the organization and has affected the consumer base of
the firm in a negative manner (Bloomfield 2017).
Volkswagen has been facing major issues related to the reduction in operating
profits due to the enhanced levels of compliance issues in the automotive
industry.
The lack of investment made by Volkswagen in the research and development
based activities has been a major strategic issue that the organization has faced
(Clibborn, Lansbury and Wright 2016).
The issues that have been faced by Volkswagen in the automotive industry are able to
influence the operations of the firm and its position in the sector as well. The effectiveness of the
strategies of Volkswagen is also affected by the competition that is faced in the industry. The
reputation of the firm has also been influenced in a negative manner by the compliance based
issues that it has faced in the last few years. The lack of proper research and development has a