Analysis of Audi's Enterprise Performance Management Strategies

This report provides a comprehensive analysis of Audi's enterprise performance management. It begins with an introduction and overview of Audi, a German gasoline-powered car manufacturer, including its mission, vision, and core values, emphasizing its commitment to innovation, consistency, and customer satisfaction. The report then delves into Audi's strategic goals, focusing on its strategies to maintain a leading position in the global automotive industry, including sustainable mobility and risk reduction. The analysis extends to Audi's lifecycle stage, identifying it in the shake-out phase. A Porter's 5 Forces analysis assesses the competitive landscape, highlighting the weak threat of new entrants, the bargaining power of suppliers and buyers, the low threat of substitutes, and the limited rivalry among existing companies. The report also includes a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting Audi. Finally, a balanced scorecard is presented to summarize key performance indicators, followed by a conclusion that synthesizes the main findings of the analysis.

Running head: ENTERPRISE PERFORMANCE MANAGEMENT
ENTERPRISE PERFORMANCE MANAGEMENT
Name of the Student
Name of the University
Author Note

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Introduction
The main objective of this paper will be to analyse the enterprise management of the
organization of Audi, which is also regarded as a gasoline powered car manufacturer. A
detailed summary of the company along with the mission, vision and values will be discussed
here. The strategic goals of Audi as well as the phase of the life-cycle where it stands will
also be analysed in this paper. An outline will be provided in the context of Porter’s 5 Forces
that will have an impact or already impacting the organization will be discussed here as well.
The positive and negative externalities in terms of PESTEL analysis will also be analysed in
this paper. A balanced score card will be presented at the end of this paper, along with a brief
conclusion to sum up the main discussions of this paper.
About the Organization
Audi AG is an automobile or car manufacturing public limited company from
Germany, which was founded in the year of 1910. The organization is engaged in designing,
engineering, producing, marketing and distributing luxury vehicles around the world. It can
be noted in this context that Audi is considered as a member of the Volkswagen Group. The
organization possesses a worldwide presence, which also includes 11 production facilities
that are located in 9 countries. Audi India and Audi e-tron are the 2 divisions of this car
manufacturing organization. The organization manufactures gasoline or petrol engineering
cars as well as diesel engineering cars. Apart from all these, electric cars are also getting
manufactured by the management of this organization as a part of reducing the pollution in
the global environment which occurs from both the diesel and gasoline manufactured cars.
Mission Statement
The mission statement of Audi is consistently Audi, which states to achieve the
success through using innovative and creative ways in the overall manufacturing and
designing process, along with possessing the ability and commitment to generate the
enthusiasm among the employees and the people who are associated with this business house.
A unique way of business operations are performed by the management of this organization,
which has helped to position themselves at the top in the business sector where it operates.
Consistency is the term which is followed in each and every process of the organization,
mainly in designing and manufacturing of the vehicles that are presented by Audi to their
customers who are present globally. It can be stated in this context that consistency plays an
integral role in cementing the position of a particular business entity in their respective
business industry, and the same is followed by the management of this German gasoline car
manufacturing organization. The management reflects the emotions and wishes of their
customers in their every action as the guided principles, which helps to perform their business
operations globally and satisfy the needs and requirements of their customers. The mission
statement also helps this business entity to become one of the premium car manufactures in
the global automobile sector (Mission Statement Academy, 2020).
Vision Statement
The vision of this multinational organization is to present Audi as a premium brand
across the world, along with possessing the vehicles with the convincing power through the
sportiness, brand values, superiority and permissiveness. The vision statement reflects the

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ambitious nature of the management of this business entity, which is to maintain the standard
that is offered by this car manufacturing company to the niche market segment across the
world. Automobile sector is one of the most competitive business sector in the world, and
Audi has successfully gained the competitive advantage against its competitors through their
exceptional designs, considering the value as well as global reputation that is enjoyed by the
management of this company. The vision organization is to maintain their superior position in
the global automobile sector by performing the core values that are followed by the
management of this company (audi.com, 2020).
Values
The core values of Audi include cooperation, urbanization, integrity, digitalization,
respect and sustainability, which has helped the business approach that is followed by the
people who are associated with this business entity and grow the business into a global entity
through the ability of the people who are managing the issues and challenges that are faced in
the daily business operations in the global automobile sector. The core values that are
followed by the management of Audi helps to possess a progressive and supporting working
environment assuring to stay on track for each and every stakeholder with the
accomplishment of the vision and mission statements that are followed by them (audi.com,
2020).
Strategies
It can be stated in this context that the global automotive industry is one of the most
competitive and tough business sectors in the world, and they are facing a radical upheaval in
order to identify the ever-changing requirements of the people in the global market place. The
management of Audi has engaged themselves in designing their strategies accordingly s that
it successfully meets the requirements of the people and deliver the product according to that,
which will satisfy the needs and wants of the people in this particular business sector. They
has engaged themselves to play an instrumental role in structuring this transformation along
with maintaining the leading position by providing gasoline manufactured vehicles in the
global market place. The strategies that are designed by the management of Audi follows the
sustainability and mobility in the business operations that are followed by them throughout
the whole world. Reducing the risk factors is an important strategy that is hugely followed by
Audi, as it helps them to maintain their leading position in the global automotive industry.
Another important strategy that is followed by them is to reduce the corporate carbon
footprint in all their business operations and perform the Consistently Audi strategy
effectively and efficiently. Sustainable competitive advantage can be gained and followed by
successful transformation of these strategies in their global business operations. Improvement
in the gas mileage along with the sustainability of the gasoline manufactured vehicles is also
an important strategy that is followed by the management of Audi around the world
(audi.com, 2020).
Phase of Life-Cycle
The management of Audi has created an ecobalance for each of the new model that
has been manufactured by this business house, which helps to evaluate all phases of the
business lifecycle. It can be termed in this context that ecobalance, which is also known as
life cycle assessment, helps to analyse the environmental impact of a particular brand after its
launch in the global market place. After analysing the details of the business operations that

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are followed by this business house through its gasoline manufactured vehicles in the global
market place, it can be said that Audi has reached to the shake-out phase, where the sales of
the vehicles manufactured by this business house, but at a slower pace (Kompalla, Kopia &
Tigu, 2015). This mainly happens due to presence of a number of competitors in the market
place and saturation in the approaching market. The profit earning for Audi has started to
decrease, which has resulted in increase of the costs, along with increase in the cash flow in
the business operations and exceeding the profit of this German multinational organization.
Porter’s 5 Forces Analysis
Threat of New Entrants
The threat of new entrants in this automotive industry is weak, as it is very difficult to
accomplish the economies of scale in this business industry. This makes to possess a cost
advantage as it is comparatively easier to produce vehicles in large numbers, which also
makes the overall production costlier for the new entrants in this business sector. The capital
requirements are also high in this industry, as it can be stated in this context that price of the
gasoline manufactured vehicles by this organization are high in nature, and this makes
difficult for the fresh entrants to invest in this premium priced market segment. The rules,
regulations and policies regarding procurement of the license along with other legal
requirements also restricts the permission of fresh or new entrants to start business operations
in this particular business sector. The management of Audi are taking the advantage of the
economies of scale that is possessed by them in their business industry, and keep their focus
on the innovation in order to differentiate their product from that of the new entrants.
Bargaining Power of Suppliers
There is presence of a number of suppliers in the automotive sector compared to the
buyers who are present in the global market place. This identifies that the suppliers possess
less control in the prices of the gasoline manufactured vehicles, and this results in weakening
the force of the bargaining power of the suppliers of this particular business sector. The
products which are provided by the suppliers possess low switching costs and are fairly
standardised, which also weakens the bargaining power of the suppliers. This helps Audi to
purchase the raw materials from the suppliers at lower prices, and can switch to another
supplier if the products supplied by the previous suppliers are not suitable (Bhatia, 2016).
Bargaining Power of Buyers
There is more number of suppliers than the organizations who are engaged in
producing the gasoline manufactured vehicles in the automotive sector globally. This helps to
signify that the buyers have lesser options, which makes the bargaining power of buyers
weak. The differentiation in the products manufactured in this industry is high, which makes
it difficult for the buyers, as they have only few options to choose from. The income of the
buyers of this particular industry is also low, which also makes the bargaining power of the
buyers a weak force. The management of Audi need to focus on innovation along with
differentiation to attract more buyers from the global market place. The quality of the
gasoline manufactured vehicles plays an integral role to the buyers of this industry, and
customers from across the world can be attracted by Audi by proper implementation if their
mission and vision statements.
Threat of Substitutes
There is less number of substitutes available for the vehicles that are manufactured by
Audi. This signifies that there is no limit in the profit earning for the business houses in this

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industry, which weakens the threat from the substitutes. There is less number of substitutes,
which are expensive as well. Auto motive organizations like Audi sell their products at lower
prices than their substitutes with maintaining the quality of the product. This is the area where
the management of Audi focuses, which restricts switching of the buyers to other business
houses.
Rivalry among Existing Companies
There are very less number of organizations present in the global automotive sector.
This also makes this a weaker force, as they are also big in size of the business operations
performed by them. Apart from this, the vehicles produced are highly differentiated, and this
need to be followed by the management of Audi so that actions taken by the rivals possess
less effect on the customers who seek the unique products manufactured by them (Anon,
2020).
PESTLE Analysis
Political
Political stability plays an integral role in the business operations of Audi. Situations
like Brexit can possess negative impacts in the gasoline as well as other models that are
manufactured by them. Trade barriers also affect the overall production of this company.
Economic
The current economic system affects the decision making system of this organization,
as the rate of GDP affects the rate of growth of Audi in a particular nation. The financial
markets of these business entities also affect the overall production of Audi globally.
Social
The demographics of the population hugely impact the identification of the target
segment and satisfying their needs and demands. Healthy standards need to be effectively
maintained by the management of Audi in the societies where they operate.
Technological
Present technological improvements need to be properly identified and the gasoline
manufactured vehicles need to be designed and manufactured according to that.
Innovativeness need to be maintained by Audi across the world to maintain their leading
position.
Legal
Intellectual property laws along with other data protection laws need to be followed
and maintained ethically, so that no legal actions need to be taken or faced by the
management of this automotive industry.
Environmental
The environmental standards need to be maintained in manufacturing of the gasoline
powered vehicles, so that less pollution can be created in the context of global climate
conditions. Environmentally sustainable approaches need to be followed by the management
of Audi (Anon, 2020).

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Balanced Scorecard
Conclusion
From the above discussion, it can be stated that Audi successfully designs and
manufactures gasoline powered vehicles and supplies them effectively across the global
automotive market efficiently. But, certain rules and standards need to be maintained to
reduce the pollution that is created by the usage of this particular vehicle.

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Bhatia, J. (2016). Porter's Five Forces Industry Analysis of Indian Passenger Car
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