Volkswagen: Strategies and Change Management

This report explores the existing and new strategies of Volkswagen and how change management techniques are implemented. It discusses the company's operational and marketing strategies, product development and research, and strategic change management. Recommendations for the future are also provided.

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Executive Summary
This report will be exploring the existing and new strategies of Volkswagen to come to a
conclusion about their change management techniques. This report will be looking into how
the various sectors of the company are managed and how change is affecting all the new
departments. The change in vision to the vision of a sustainable and clean future will also be
discussed.

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Table of Contents
Introduction................................................................................................................................3
History of the company..............................................................................................................3
Strategy......................................................................................................................................4
The new action plan for the company........................................................................................5
Operational strategies.................................................................................................................6
Marketing strategies...................................................................................................................7
Product development and research.............................................................................................8
Strategic change management....................................................................................................8
Recommendations......................................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................11

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Introduction
Volkswagen AT which is also internationally known as the Volkswagen group is a
multinational automotive manufacturing company that has its headquarters in Wolfsburg,
lower Saxony, Germany. The indirect majority of this company is owned by Porsche SE. It is
responsible for designing and manufacturing passenger vehicles and commercial vehicles. It
also makes motorcycles, turbo machinery and engines. It is the world's largest automaker if
we take into consideration the sales (Volkswagenag.com 2019). In this assignment
Volkswagen will be looked into in order to explore the company's reports and manufacture
report outlining the organizations strategy, the various internal working hours of the
organization and how it undertakes the various departments of operations, product
development, marketing, growth, innovation, implementation and strategic change.
Recommendations will be outlined for the company to be better in the future. The annual
reports and insider information about the company needs to be looked into in order to present
the report containing all the details as discussed (Cameron & Green 2015). This report will
basically focus on the business model and strategy on which the company works. the various
products company has and how the market them as well as the new innovation they are
presenting inside the market and how it helps in the growth of the company. research in
inside of the company will also be paid attention to along with how strategically change is
implemented within the company.
History of the company
Volkswagen is primarily known as the manufacturer of the car called the beetle when
it was founded in 1937. The Beatle been an extremely popular model helped the company to
grow rapidly in the years between 1950 and 1960 and then it went on to merge with auto

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Union in 1965 which was responsible for producing the Audi models that was introduced
after the war. Volkswagen now sales passenger cars under various popular names like Audi,
Bugatti, Porsche, Bentley, Lamborghini, Skoda and SEAT. It sells various motorcycles under
the brands Ducati. It even sells commercial vehicles like trucks and buses under the brands
Scania, Man and Volkswagen commercial vehicles (Volkswagenag.com 2019). It has two
primary divisions the first division being the automatic division and the second division being
the financial services division. The company also boasts of 2 two joint ventures better located
in China and currently the company runs in approximately 150 countries and there are about
a hundred facilities for production in 27 countries.
The Volkswagen Atkiengesellschaft is currently a public company and has been
primarily listed on the Frankfurt stock exchange. It is also a constituent within the euro stoxx
50 stock market indexes (Reiger 2010). The company has secondary listings in places like the
Luxembourg stock exchange and six Swiss exchanges.
Strategy
Strategy is the most important part of any kind of business organisation because it is
the driving factor of any organisation which allows it to sell the products in the market all the
while making profits. Volkswagen means people's car (Klien 2015). And they want to live up
to this game because then main mission is providing individuals with affordable mobility.
Millions of people across the world are now using Volkswagen cars as their individual
vehicles. The new vision is called sustainability for generations to come this company wants
to provide answers to the various challenges that a present today and will be presented
tomorrow with the group strategy together 2025 (Volkswagenag.com 2019). They are
focusing on sustainable mobility for the present generation zealous future generations and

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does the main focus currently is electric driving coma driving that is completely autonomous
and digital networking to help make automobiles clean, intelligent, quiet and safe. the
company seems pretty aware of the fact that sustainability is becoming the order of the day
given how depleted on natural resources are and thus automobiles which required petrol or
diesel to run on will have to opt for options better much more cleaner for the environment
and options that can run on electricity (Hornstein 2015). That we can see that there are also
addressing problems of pollution that is caused by automobiles. They are also willing to give
the product so very modern age given their focus on digital innovation in order to make the
experience of driving a completely new and modern one (Kompalla et al. 2017). Thus the
strategy is to promote climate and environmental protection yet sell automobiles in order to
become the cornerstone of affordable mobility in the future that is also contemporary and
extremely individual in nature.
The new action plan for the company
The company is currently focusing on better governance within the company better
performance of the cars best brand equity, becoming a car company that is enabled by
software and becoming a company that has excellent leadership (Kompalla et al. 2017). The
modern strategies consist of both brands in regional strategies as well as functional strategies
(Volkswagenag.com 2019). The company seems to focus on the first belief of value and
integrity. They want to become the leading company by 2025 and they want to resemble a
software company by then too.

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Operational strategies
According to the 2025 vision, the company planned to implement new operational
strategies. The main focus is alliance sustainable success in the company and their want all
the employees to be competent and committed and will be recruited employees who display
the same vigor their existent employees do. The company is looking forward to promote the
satisfaction of the employees by motivating them with opportunities that will be equal for all,
a working environment that will be extremely modern and attractive and will be promoting a
work organisation that is extremely sustainable in nature (Volkswagenag.com 2019). They
are looking forward to promote a culture that is cooperative in nature and culture in which all
the employees are open and positive towards each other and there is no secrets retained
within the company. The company is also looking forward to integrate a diverse workforce
within and they want to promote the leadership which will be exactly in nature and incredibly
inspiring for all the employees (Welch 2019). We are looking forward to retaining these
employees and attracting the best of global talents in order to to work together
enthusiastically and focus on connected and sustainable mobility. all the entries and the
people in the organisation will be coming together to focus together on the turning point of
the environment in which climate change has become one of the central challenges that needs
to be faced by humankind (Kompalla et al. 2017). Company wants to focus on stopping noble
warming and wants to assume responsibility and show the way for other automobile
industries with electro mobility (Volkswagenag.com 2019). Protect the environment but it
will also implement the various political guidelines that have been set for automobiles. The
company plans and becoming a carbon dioxide neutral company by 2050. They are placing
integrity highest on the list of principles and look forward to observe all sorts of new rules
and laws to ensure that their customers are safe and to ensure that errors are dealt with
effectively in order to remove them and ensure that they do not occur again in the future

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(Cameron & Green 2015). The company wants to be responsible for the society and that's the
want to conduct business in a manner that is socially responsible and based on values that are
clear cut and well explained.
The business model of this company is based on the traditional automotive industry
power it is changing towards technology centric business model in order to bring about
change that helped the company grow from purely automotive to digital (Hornstein 2015)..
Change is always welcome the world is changing and how rapidly the needs of the world is
also being reconsidered. Volkswagen has also implement change in order to match up to the
changing needs of the customers in order to promote a much more sustainable future despite
being an automobile manufacturer.
Marketing strategies
The company wishes to capitalize on their existing strengths and wishes to be more
transparent and flexible with the together 2025 strategy (Welch 2019). The company is
vigorously dealing with the things the company lacks in and wants to exploit the strength of
being a global company in order to be successful in the new world of electro mobility
(Volkswagenag.com 2019). The marketing strategies are based on this new kind of
automation which will be attractive to the customer who is looking forward to a sustainable
future for themselves and future generations. Volkswagen houses the most dependable cars in
the industry and they want to keep doing that in order to retain customer interest. They will
be marketing sustainability and conservation of energy in order to attract customers who will
look beyond the traditional idea of automobiles and welcome my future that is much more
integrated with the digital world and much cleaner in nature.

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Product development and research
As already discussed Volkswagen is looking forward to shaping future in the
automobile industry. Volkswagen is focusing on how social issues and conditions as well as
social trends drive the automotive future. Volkswagen wants to anticipate what the customers
in the future might need and wants to transform these into innovative products for the
customers to use. They want to carry out intensive research in this particular field of
technological challenges and ensure that operation is found both inside and outside the
company through proper networking (Volkswagenag.com 2019). They want to ensure that
future meets affordability and individuality through their products. Primary research is done
via group research which has its headquarters in Wolfsburg I'm just responsible for
researching about all the brands. Disc out for international trains in automobiles and the
innovation and technology that is happening across the world. The company also has various
other research bases in the United States, China and Japan. The company is currently
researching on a carbon neutral mobility, sustainable mobility, assistant systems and virtual
Technologies.
Strategic change management
As discussed this company has new strategies for 2025. The company understands
that change is the only constant and that this world is at the brink of losing resources that
allowed the automobile industry thrive on. This planet is already being subjected to a lot of
pollution and environmental degradation caused by pollution and with the loss of resources
the company needs to look forward to other kinds of techniques that will be able to power
automobiles (Kompalla et al. 2017). The company wants to strategic management into a
company that gives mainly in electro mobility in order to promote sustainability and in order

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to ensure that the present generations along with their future generations can depend on the
company for affordable mobility (Volkswagenag.com 2019). This change is being managed
by making new strategies for marketing and operations that allow this new strategy to come
to the forefront and for the company to keep up the pace along with the changing times and to
cater to consumer needs that are much more inclined towards sustainability and clean
environment (Cameron & Green 2015).
Recommendations
The new strategy of the company is a commendable one given how innovative and
futuristic it is all the while being affordable and individualist. Company shirt ensure that the
customer base understand the value of the new technologies and comes to understand how
sustainable they are and how the main benefit our future generations. Company has to ensure
that the car is affordable in nature else the goal will not be reached because people will be
opting for cars that maybe traditional but affordable. Company also needs to focus on the
employees completely understanding the new strategy and everything being communicated to
them and stakeholders. In the period of change effective communication is a maintained and
complete transparency must be maintained to ensure the miscommunication and
misinterpretation of information does not happen. Company can motivate their employees
and allow space for Innovation and growth the company will inevitably do well and ensure
that its status as one of the greatest automation companies in the world.
Conclusion
In this report it is evident that Volkswagen is going through a period of change and
therefore their change is being strategically managed. Change naturally goes on to trigger
more change in the various departments of the company. Change has to be embraced

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completely by all the people within the company for the change to be turned into something
profitable. The company is already one of the leaders in automation and in future if that retain
the status they must think in a way that will allow automation to cries in the future despite the
declining resources and apparent pollution problem in the society. Company must embrace
new technologies and must allow space for Innovation and growth in order to excel and
ensure that it is unshakable in the future.

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References
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Hornstein, H.A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
pp.291-298.
Klein, J., 2015. Velveeta & Volkswagen: sustainability is a moving target. Journal of
Property Management, 80(2), pp.12-13.
Kompalla, A., Kopia, J., Foerster, U. and Geldmacher, W., 2017. Analysis of correlations
between coprporate strategy and operational strategy considering management system
standards. Ecoforum Journal, 6(3).
Rieger, B., 2010. From People's Car to New Beetle: The Transatlantic Journeys of the
Volkswagen Beetle. The Journal of American History, 97(1), pp.91-115.
Volkswagenag.com. (2019). Strategy | Volkswagen Group. [online] Available at:
https://www.volkswagenag.com/en/group/strategy.html [Accessed 8 Sep. 2019].
Volkswagenag.com. (2019). Sustainability | Volkswagen Group. [online] Available at:
https://www.volkswagenag.com/en/sustainability.html [Accessed 8 Sep. 2019].
Welch, J., 2019. The Volkswagen recovery: leaving scandal in the dust. Journal of Business
Strategy, 40(2), pp.3-13.