Impact of Multinational Companies: Volkswagen Group in China

This report investigates the positive and negative impacts of multinational companies (MNCs) on the business environment in China, using the Volkswagen Group as a case study. The report begins with an introduction to globalization and MNCs, highlighting their influence on economic development, capital formation, and infrastructure. It then outlines the aims and objectives of the project, including understanding globalization, identifying benefits and negative impacts of MNCs, and recommending solutions. The report includes a project management plan, a work breakdown structure, and a Gantt chart. The research methodology, which is qualitative and employs an inductive approach, is detailed, including research design, sampling, and data collection methods. The findings are presented, discussing the impact of Volkswagen's operations in China. Finally, the report concludes with a reflection on the research process and recommendations for minimizing the negative effects of MNCs. References and an appendix are also included to support the research.

MANAGING SUCCESSFUL
BUSINESS PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Aims and objectives of project ............................................................................................3
P 2 Produce project management plan .......................................................................................5
P 3 Work break down structure and Gantt Chart .......................................................................6
..........................................................................................................................................................7
LO 2 ................................................................................................................................................7
P 4 Research methodologies.......................................................................................................7
LO 3...............................................................................................................................................10
P 5 Finding and discussion........................................................................................................10
P 6 CONCLUSION ..................................................................................................................17
LO 4...............................................................................................................................................19
P 7 Reflection............................................................................................................................19
REFERENCES .............................................................................................................................20
APPENDIX ...................................................................................................................................21

Topic – To identify the positive and negative impact of multinational companies on
business environment in China – “The study on Volkswagen group”
INTRODUCTION
Multinational companies are entered in the new market which have the various operations
in the more countries. It operates oversees by setting up the units such as subsidiaries or affiliates
or take over or merges with the local companies. MNCs conducts a significant proportion of their
operations in the other country (Bartlett, 2017). Therefore, it can affect and influences on the
other countries economic entire environment in both negative and in positive ways. MNCs
benefit from the lower cost and grant given by the government of developing countries in order
to attract these. That cane help to reducing poorness, dynamic economic development, making
tasks by utilizing the localised people, rise employ standard through paying improved wages the
localised firms pay. In additionally, that can rise economical growth via standard transferee
practical application as well as cognition, develop and build up infrastructure, increase people
standard of living. This gives positive impact on economical development, exportation based
industrialization, capital formation and practical application, research and development process.
Other hand it will give the negative impact such as keep independent improvement, escape of
capital, exploit workers and surroundings pollutions. By this MNCs is give the negative and
positive impact on the business and its environment.
In the present research, Volkswagen group is being chosen their assessment. Volkswagen
group is the German international automobile production organization. It designs, producers and
distributes traveller, commercial vehicles, motorcycles, engines and various services to peoples.
It is world's biggest automotive company by sales. The group is operates 122 production plants
in the 20 countries. It has the 302554 numbers of employees with the 11.844 net income in
2018.
LO 1
P 1 Aims and objectives of project
Aim
To identify the positive and negative impact of multinational companies on business
environment in China – “The study on Volkswagen group”
Objectives

 To understand the conceptual of globalisation in context to Volkswagen
 To determine benefits to business environment by multinational company entering in
China
 To examine the negative environmental impact of Volkswagen’s operations in China
 To recommend effective solutions for minimising negative effect of multinational
companies on business surroundings.
Research questions:
1. What is the concept of globalisation?
2. What are the benefits of multinational company in business environment in china?
3. What factors are the impact of Volkswagen operations is affecting to business
environment?
4. What are the recommendation for minimising the negative impact of multinational
companies?
Research Background
The background of the research is to determine positive and negative effects of
multinational companies on business surroundings of China. Research is based on Volkswagen
group. Research will identify importance of the multinational companies across the world and
how they are impacting the market of China. It tends to create an understanding of the Chinese
market and what are the recent changes which have greatly influenced the market of China
(Binder, 2016). The research is going to involve related studies of the Chinese environment and
its car makers. The chosen organisation for the research is Volkswagen. The company is one of
the largest car makers based in Germany. The research will evaluate the importance of car
making industry and how the car making industry is being greatly influenced by the choices of
the consumers.
Rationale
The reason behind choosing the topic is to measure effect of multinational companies on
business atmospheres of China. The report will evaluate the basic understanding of the Chinese
market and how it operates. It will increase deeply knowledge about evaluations of Chinese car
makers and how they tend to earn their profits. The topic will provide an understanding of the
performance of car makers and in what manner the Chinese market is developing itself in order
to serve the needs of its car makers.

P 2 Produce project management plan
Project Management Plan
This is considered as the very essential part while conducting research on given topic or
study. This is a document which is used for guiding the execution of the research study and also
for effectively controlling the project (Boyle, 2017). The important aspects and components of
project management plan are standard regarding range, price, program, quality, risk, resources as
well as communication. Following are given the elements that are used while preparing a project
management plan:
Cost: fundamental work of researcher is to set the cost of budget for the project for
completing the overall study. Project management costing is required in relation to move out the
different research actions effectively. In relations to effectively organize the present research,
£5000 are required for reaching the aims and objectives and also for performing required
activities and tasks. The impacts of multinational company is a broad concept which requires
researcher to study all required narrow aspects in authentic and relatable way. Utilization of
appropriate cost of resource which help to attain the result of research.
Quality: This is also a very essential aspect of the research study while reaching to the
aims and objectives. The data or information that is gathered by the researcher should be
authentic, reliable and relevant so that it can effectively resolve the research issues. Researcher
also ensures that quality is maintained effectively while collecting information and also in its
interpretation (Farmer, 2017). Utilization of appropriate quality of resource which help to attain
the result of research.
Resources: Adequate and relevant resources are needed for conducting whole research in
systematic and effective manner. The quality of research study will get affected due to
unavailability of adequate and relevant resources. Utilization of appropriate resource which help
to attain the result of research.
Communication: This aspect is considered as the backbone while conducting the
research study on specific topic. There needs to be effective communication in different
functional units of business and various other relevant activities related to entering in different
and new markets. Researcher will make use of emails and circulars in order to have effective
communication. Utilization of appropriate communication which help to attain the result of
research.

Risk: proper assessment of risk factors need to be done while conducting the research in
effective and systematic manner as it will help both the organisation and researcher for
maintaining effectiveness of the research study. There are many risks that can be present such as,
theft of data, issues related to security, etc. Therefore, researcher focus on ensuring and
mitigating the risk through proper management planning (Glukhov, Ilin and Levina, 2015).
Determining risk factor appropriately which aid to achieve outcome of study.
P 3 Work break down structure and Gantt Chart
Task
Mode Task Name Duration Start Finish Predece
ssors
Auto
Scheduled Market Identification 12 days 03/12/18 16/12/18
Auto
Scheduled Market Selection 14 days 16/12/18 30/12/18 1
Auto
Scheduled Conduction Market research 11 days 31/12/18 10/01/19 2,1
Auto
Scheduled
Formulation of objectives and
goals 10 days 26/12/18 03/01/19 2
Auto
Scheduled
Audience identification in new
market 8 days 08/01/19 15/01/19 3,4
Auto
Scheduled Marketing plan creation 10 days 15/01/19 25/01/19 3
Auto
Scheduled
Implementation of marketing
plan 15 days 25/01/19 09/02/19 5,6
Auto
Scheduled Product Testing 14 days 09/02/19 22/02/19 7
Auto
Scheduled Final Product Launch 7 days 22/02/19 01/03/19 8

LO 2
P 4 Research methodologies
Introduction
This process is used for collect information for the purpose of making and taking
decisions of business. It is the specific process or techniques used to identify, select, process and
analyse information. In the research, the methodology section is help to the researcher to
critically evaluate the overall study and research like validity and reliability. This includes
philosophies, approaches, types, design, data collection, data analysis, sampling and ethical
consideration. The types of research methodologies which is select by the researcher for data
collection is underpinned the work (Hillson, 2017). Utilization of effective research
methodologies help to attain the result of topic of positive and negative impact of multinational
companies on business environment in China.
Research type
Business research have to be done in the effective and valuable manner because it is
systematic process. This help to collect data by following prefect procedure. This have two types
which are qualitative and quantitative research. Both are different and help to collect data from

best sources. The qualitative research type is the best because this relate to feelings and words.
Other hand, quantitative research connect by the mathematics calculations. In the present
research, researcher has select qualitative research for achieve aim and objective of research and
for that thematic analysis will be done. Utilization of research type help to attain the result of
research that is positive and negative impact of multinational companies on business
environment in China.
Research approach
Research is the plan and schedule process which is generate effective data from by the
prefect sources. This have three types which are inductive, deductive and abductive research
approaches. (Johnston, 2017). for done the research done in perfect manner researcher have to
use the best and effective approaches like deductive research is generate the validity of test
which is hypothesis. Inductive is give fast result of work. Other hand, abductive is the provide
best and table conclusion. In the present research, researcher has select the inductive approach.
Thus, researcher effectively and efficiently identify the positive and negative impact of
multinational companies on business environment in China by using the inductive approach.
Research design
Research design is the best and effective framework which is give and provide the best
combination of different elements of research. This involves various and effective samples of
methods for collecting data work place. This have two parts which are descriptive and
correlation. Here is researcher has select the descriptive research design. By these researchers is
able to identify the positive and negative impact of multinational companies on business
environment in china by using the descriptive research design (Larson and Gray, 2017).
Sampling
Sampling is the best ways for collecting data by the employees and other peoples. In this
data collect by the peoples gathering and population. In this researcher has select the best
sampling which is random sampling. In this researcher had asked questions from 20 peoples for
collect data. That is help to achieve aims of research that is negative and positive impact of
multinational company on the business environment (Polonsky and Waller, 2018).
Data collection
It is process of collect the information and knowledge about their particular topic. It is
very important to collect the data from authentic sources. With the help of this, researcher has

collect data and information by proper sources, hypothesis and theoretical concept. This can be
divided into two part which is primary and secondary data collection method. Primary data
collection is collect data from two sources like qualitative and quantitative research. Other hand,
secondary data collection is collect form the sources like newspapers, social media, online
portals etc. other hand secondary data is also refers and select for collecting data and
information. In the present study, researcher is select the both methods like primary and
secondary data collection method for analysis positive and negative impact of multinational
companies on the business environment (Polonsky and Waller, 2018).
Data analysis
Data analysis is the important and effective part of the research because without analysis
it research is not complete in effective manner. With the help of data analysis, researcher has
able to done research in effective manner and get proper and best answers of work. For the
present research, researcher has select qualitative method in that thematic analysis has been
done. This research is includes by the graphs, chart and questions (Young, 2016). Effective data
analysis helps attain result of research topic that is negative and positive impact of multinational
companies on the business environment in China.
Ethical consideration
It is most important part of research. That are norms, standard which makes difference
between right and wrong process. It is very important for the scholar to understand the rules and
regulations. That are help to make study is very authentic and valid. Following the ethical
consideration help to achieve the aims of research that is negative and positive impact of
multinational companies on the business environment in China. There are some ethics which are
need and required to consider the before and during the study and research which are as follows:
 The dignity and respect of the respondents are maintained and researcher has take care of
that.
 The confident was adequate (Rana, 2018).
 The protection and privacy of data was ensured by the researcher.
 Data or information is collected by the authentic sources.
 No nay participants are forces for participant and give information to the study and they
can leave this process this is the rights of them, the sample wherever they want.
 All the participant in then study were not subject to about harms in any ways whatsoever.

LO 3
P 5 Finding and discussion
Finding as well as discussion is portion of study through this researcher get thoughts of
what are think about particular topic. This area related to the research findings as well as
outcome. Leading aim of finding is to explain and describe importance of findings. It is essential
portion of research, it is highlight value of examination as well as aid to fill gap in existing field.
Theme 1. Maximum manager are working for more than 5 to 10 years.
Particulars Participants
0 to 2 years 5
2 to 4 years 8
4 to 7 years 4
7 years and above 3

Interpretation: From above graph, it can be understood that out of 20 contestant, 8
participants are working for 2 to 4 years in the Volkswagen. 5 respondents are working for 0 to
2 years in the firm. Also, it can be interpreted that 4 participants are working for 4 to 7 years in
the organization. 3 respondents are working for 7 years and it above within the selected firm.
0 to 2 years 2 to 4 years 4 to 7 years 7 years and above
0
1
2
3
4
5
6
7
8
Column B
Illustration 1: Maximum manager are working
Source: Maximum manager are working

Theme 2. The actual concept of globalisation.
Particulars Participant
Yes 13
No 5
Not sure 2
Interpretation: From above pie chart, it can be understood that out of 20 contestant, 13
participants are replied that globalisation is actual concept which is utilised in the Volkswagen. 5
respondents are replied that no globalization is not actual concept in the firm. It can be
interpreted that 2 respondents are not sure about the concept of globalisation.
0 to 2 years
2 to 4 years
4 to 7 years
7 years and above
Illustration 2: Actual concept of globalization
Source: Actual concept of globalization

Theme 3. The challenges faced by Volkswagen while entering in china.
Particulars Participant
Alien culture 8
Dynamic business environment 5
technological changes 7
Interpretation: From above graph, it can be understood that out of 20 contestant, 8 participants
are replied that Volkswagen faced challenges like alien culture while they enter in the China. 5
respondents are said that selected firm faced challenge in terms of dynamic business
environment when they enter in nation. Furthermore, it can be interpreted that 7 participants are
replied that many technological changes in terms of challenges faced by firm.
Alien culture
Dynamic business environment
technological changes
0 1 2 3 4 5 6 7 8
Column B
Illustration 3: Challenge faced to enter in china
Source: Challenge faced to enter in china

Theme 4. Positive impact on multinational company like Volkswagen in china.
Particulars Participant
Providing employment 10
Increase choice 4
National reputation 6
Interpretation: From above graph, it can be taken that out of 20 contestant, 10
participants said that multinational companies like Volkswagen impact positive in relation to
providing the large number of employment in the China. 4 respondents are said that there are
increased the choice in China. Furthermore, it can be interpreted that 6 participants are replied
that multinational companies increase national reputation in China.
Providing employment Increase choice National reputation
0
1
2
3
4
5
6
7
8
9
10
Column B
Illustration 4: Positive impact of multinational company
Source: Positive impact of multinational company

Theme 5. Negative impact on multinational company in china.
Particulars Participant
Environmental impact 7
Increased competition 8
Export of profit 5
Interpretation: From above pie chart, it can be understood that out of 20 contestant, 8
participants are replied that multinational companies like Volkswagen impact negative in relation
to increase competition in the China. 7 participants are said that there are high level
environmental impact in China. Furthermore, it can be interpreted that 5 respondents are replied
that multinational companies are decreased the profits of export in China.
Environmental impact
Increased competition
Export of profit
Illustration 5: Negative impact of multinational company
Source: Negative impact of multinational company

Theme 6. The impact of globalisation on china economy.
Particulars Participant
Increase employment 9
Increased competition 8
Income level 3
Interpretation: From above graph, it can be understood that out of 20 contestant, 9
participants are said that globalization is increased the employment in China economy. 8
respondents are said that globalization is raised the competition in selected economy.
Furthermore, it can be interpreted that 3 participants are replied that income level is also
increased of people in the China economy.
Increase employment
Increased competition
Income level
0 1 2 3 4 5 6 7 8 9
Column B
Illustration 6: Impact of globalisation on china economy
Source: Impact of globalisation on china economy

Theme 7. The social and demographic changes are faced by Volkswagen in china.
Particulars Participant
Buying power 8
Standard of living 12
Interpretation: From above graph, it can be understood that out of 20 contestant, 12
respondents are replied that when multinational companies like Volkswagen entering into china
that help to increase the standard of living of people in social economy of China. Furthermore, it
can be interpreted that 8 participants are replied that increasing the buying power of people while
selected company enter into China.
P 6 CONCLUSION
From above research, it had been discussed that study about positive and negative effect
on multinational companies on business surroundings entering in China. It can be concluded that
researcher determine background of research and explanation that includes reasons for choosing
Buying power Standard of living
0
2
4
6
8
10
12
Column B
Illustration 7: Social and demographic change in china
Source: Social and demographic change in china

theme. It can be discussed that investigator has utilised different study methodologies that
involved approaches, gathering information, ethical consideration, design, data collection, data
evaluating for achievement aims as well as goals of study. It can be determined that study has
made aims and objectives regarding to topic for promote study as well as completing them as
well as getting the result. It can be concluded that usage of methodologies for analysing as well
as gathering information for accomplishing aims and objectives of research. It can be discussed
that investigator utilised questionnaire for gathering information regarding to subject for
achieving outcome. Furthermore, study has completed that investigator used the techniques and
tools for gathering the information for accomplishing the aims and objectives of subject that is
positive and negative impact of multinational companies on business environment in China.
Moreover, investigator used the random sampling for gathering information and analysis them
for accomplishing outcome of topic that is positive and negative impact of multinational
companies on business environment in China. It can be discussed that identify project
management plan which involves cost, quality, resources, communication and risk factors for
completing the research on topic of positive and negative impact of multinational companies on
business environment in China.
Form the finding and discussion of research has support to make and help to find best
ways of solutions. It has impressive and valued for investigator to acquire ideas and views of
peoples about the globalisation. Globalisation has give positive and negative effect on business
for that researcher asked some questions related to the employees of firm in effective manner
without any biasses. Respondents has free for giving answer about the question researcher has
not make any force on them. Globalisation give negative impact on the company, in that
respondents said it increased competition level in the organisation. Majority of peoples has go
with increase level of competition. That had also give the positive impact, that is provide
employment to peoples who have not employment to survive.
RECOMMENDATION
From above primary analysis of information, investigator has suggested different things
which are very effective as well as essential for organisation for successful entered in new
market and new country which is china. There are some proposals from investigator which are as
follows:

Volkswagen group is entered in then new market and country for expand their business in
china. By market research, they can understand the actual needs and wants of customers of china.
For that they can use the SWOT analysis for analysis the strength, weakness, opportunities and
threats from their local area. This help to make changes in their policies before entering in china.
This help to make stronger strength by using their opportunities in their policies and rules and
regulations.
Company can also lunch the new product and services for the china peoples. This help to
increase the choices for the customers and they are attracted towards it. By that company is able
to increase their profit and productivity in the new market and also use the better technologies for
advertising their products in the new market. By these customers are knows about the product
and services which is sells by the Volkswagen group in china.
Then customers are attracted towards it then profits is increase with that management has
the more funds and money for best and better investment on their employees. With that
management can offers the best ad attractive salary and income to their new hirings and exiting
employees. So this will also help to increase the incomes level of employees at china.
LO 4
P 7 Reflection
At time of research, I learn various thinks which has helped to me for increase my skills
and knowledge on the topic of multinational company entering in the new market and country
like china. Those have effective and best for me in my future and also in present. This helped to
develop my research and communication skills. It gives best and better experience to me. This
research helped me for increasing my all over skills which are effective and best.
This research project was effective and I also improve my communication skills with
talking about the peoples and manager of the company. They were very knowledgable person
and also talked to me in very decent manner. The every steps, strategies, techniques and tools are
important to follows for entering in new market and country china. China has totally different
and changes from our local place. There were having lots of culture and demographic changes
that are effective and best for learning new country culture.
This was also helps to me for learning china culture and also how to sets or entered in
new market. Moreover, formulating the aims and objectives are difficult to frame it, but after my

team leaders explained me then I done this in very effective manner. Further, I have use the
various strategies, tools and techniques that are little difficult to understand, but it has very
important part of conducting research. At the times of selecting the methods of study I have
analysed all the kinds of methodologies as well as after that researcher is select on best and
effective methods.
At the end, the best part is data collection from the survey and asking questions. This was
so amazing experience as I have understood the views of manages and peoples of Volkswagen
group. Thus, this research study is very helpful for the research in conducting further by research
studies.

REFERENCES
Books and journals
Bartlett, J., 2017. The Essentials of Managing Risk for Projects and Programmes. Routledge.
Binder, J., 2016. Global project management: communication, collaboration and management
across borders. Routledge.
Boyle, G., 2017. Design project management. Routledge.
Farmer, L. S., 2017. Data Analytics for Strategic Management: Getting the Right Data. In
Encyclopedia of Strategic Leadership and Management (pp. 810-822). IGI Global.
Glukhov, V. V., Ilin, I. V. and Levina, A. I., 2015. Project management team structure for
internet providing companies. In Internet of Things, Smart Spaces, and Next Generation
Networks and Systems (pp. 543-553). Springer, Cham.
Hillson, D., 2017. Managing risk in projects. Routledge.
Johnston, M. P., 2017. Secondary data analysis: A method of which the time has come.
Qualitative and quantitative methods in libraries. 3(3). pp.619-626.
Larson, E. W. and Gray, C. F., 2017. Project management: The managerial process. McGraw-
Hill Education.
Mills and et.al., 2015. Archiving primary data: solutions for long-term studies. Trends in Ecology
& Evolution. 30(10). pp.581-589.
Newton, R., 2016. Project management step by step: how to plan and manage a highly
successful project. Pearson UK.
Polonsky, M. J. and Waller, D. S., 2018. Designing and managing a research project: A business
student's guide. Sage publications.
Rana, S., 2018. Managing businesses relevance beyond technology.
Young, T. L., 2016. Successful project management. Kogan Page Publishers.

APPENDIX
QUESTIONNAIRE
Name of organisation:
Name of respondents:
Gender:
Age:
1. How long you are working in Volkswagen group?
 0 to 2 years
 2 to 4 years
 4 to 7 years
 7 years and above
2. Do you know the actual concept of globalisation?
 Yes
 No
 Not sure
3. What are the challenges faced by Volkswagen while entering in china?
 Alien culture
 Dynamic business environment
 technological changes
4. What are positive impact on multinational company like Volkswagen in china?
 Providing employment
 Increase choice
 National reputation
5. What are the negative impact on multinational company in china?
 Environmental impact
 Increased competition
 Export of profit
6. What are the impact of globalisation on china economy?
 Increase employment
 Increased competition

 Income level
7. What are the social and demographic changes are faced by Volkswagen in china?
 Buying power
 Standard of living
8. What are recommendation you provide for successful entering in new market and country?
…...............