Analysis and Valuation of Volkswagen: Management Accounting Tools and Strategies

TABLE OF CONTENTS
Introduction......................................................................................................................................4
PART A...........................................................................................................................................4
1. Company name........................................................................................................................4
2. Establishment year...................................................................................................................4
3. Vision and Mission..................................................................................................................4
4. Managerial highlights..............................................................................................................4
5. Product focused.......................................................................................................................5
6. Key performance information..................................................................................................5
PART B...........................................................................................................................................6
Value chain of the Volkswagen Company..................................................................................6
PART C...........................................................................................................................................7
Business planning strategies........................................................................................................7
Controlling...................................................................................................................................8
Decision making..........................................................................................................................8
PART D...........................................................................................................................................8
Management accounting tools current used by company............................................................8
PART E..........................................................................................................................................10
Conclusion.....................................................................................................................................11
REFRENCES.................................................................................................................................13

INTRODUCTION
The current research is based on the analysis and valuation of the manufacturing sector industry.
In the study, Volkswagen has been chosen, in which mission, vision, products, managerial
highlights, products and services of the companies is explained. Moreover, the main focus of the
research is on the evaluation of management accounting techniques used by Volkswagen.
Further by considering the whole evaluation, the recommendation will be drawn to help the
company in solving upcoming difficulties to improvise their overall profitability and
productivity.
PART A
1. Company name
The selected company for the present task is Volkswagen
2. Establishment year
The company was founded in 1937.
3. Vision and Mission
Volkswagen is known as German international automotive manufacturing company, and it’s
headquarter is situated in Wolfsburg, Lower Saxony. The major operational activities of
company is designing, manufacturing, and distributing of motorcycle, engines, commercial
vehicle, and turbomachinery (Raj, 2017). Their mission is to provide quality products and
services to their customers supported by additional services such as leasing, financing, and fleet
management. The vision of the Volkswagen Company is to be the leading corporation in
products and services associated with the automobile industry. Further, by recognizing such
factors company will satisfy their customer needs to reach another level of success (Annual
report of Volkswagen, 2016).

4. Managerial highlights
Presently the Board of management of Volkswagen AG includes eight members. All the
members are accountable to perform the operations in the Volkswagen group. The Chairman of
the company is Dr Herbert Diess. The operations the Board of Management of Volkswagen AG
is carried by the board of the brands and regions and additionally by the several other group
business holdings and units (Annual report of Volkswagen, 2016). Members of the Board of
Management of Volkswagen AG includes Oliver Blume as a Chairman of the Executive Board
of Porsche AG, Gunnar Kilian as a Functional Responsibility 'Human Resources', Andreas
Renschler as a Functional Responsibility 'Commercial Vehicles', Dr. Stefan Sommer, as a
Functional Responsibility 'Procurement' and Frank Witter, as a Functional Responsibility
'Finance and Controlling (Pettinger, 2016).
5. Product-focused
Volkswagen delivers the wide range of product and services to balance the dynamic
requirements of the customers. The product portfolio of the company is inclusive of twelve
brands from seven European countries such as Volkswagen Passenger Cars, Audi, SEAT,
ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles,
Scania and MAN (Beukes, and van Wyk, 2016).
6. Key performance information
Recently company’s main focus is on controlling a highly competitive segment of the UK car
industry, additionally with its market investment ranging from 6.55 to 10.23 per cent. In 2017 in
UK Volkswagen has given a remarkable performance and moreover changed the maximum
amount in a decided period of time, the share of the company ranging from 6.55 per cent to
10.06 from April to December (Statista, 2018). In spite of bearing some low figures, in a period
of January and May, the market share of the Volkswagen increased in 2018, and moreover, it
attains a peak growth in July 2018, at 10.23 per cent.