Volkswagen: Global Business Analysis, Ethics, and Technology Impact

This report provides a comprehensive business analysis of Volkswagen, examining various aspects of its operations. It begins with a background of the company, followed by an application of PESTLE analysis to understand the macro-environmental factors influencing the business. The report then explores the impact of globalization on Volkswagen, highlighting how it has adapted to international markets and technological advancements. It also discusses the company's target consumers, workforce, and the role of ethics in its business practices, including its efforts to combat carbon emissions and reduce its environmental footprint. The report concludes with a discussion of Volkswagen's commitment to sustainability and its future strategies. The report is contributed by a student and is available on Desklib, a platform offering AI-based study tools.

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Table of Contents
Background of the company............................................................................................................2
Use of PESTLE Analysis.............................................................................................................2
Impact of Globalization on Volkswagen.........................................................................................3
Support of Technology.................................................................................................................3
Target consumers.............................................................................................................................4
Workforce of Volkswagen...........................................................................................................4
Role of Ethics..................................................................................................................................5
Importance of ethic in the organization can be established as:-..................................................5
Combating carbon emission and reducing Co2 by company.......................................................6
References........................................................................................................................................7

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Background of the company
The Volkswagen is one of the world’s most leading automobile manufacture as well as it is the
largest carmaker in the Europe. The company was founded in the year 1937 by German
Government. The company was based on Wolfsburg, Germany as well as they have employed
over342000 employees in the organization that able to build up over 21500 vehicles a day.
Volkswagen production site are located in Europe, Asia, Africa as well as America. The
company aspires to raise its focal point on foundation business, decrease production costs as well
as also improve profitability. The major line production of the company includes Audi,
Volkswagen Passenger, Skoda, SEAT, Bugatti as well as Bentley range of vehicles. The major
emphasis of the company is on enhancing its focus on the core business, reducing the cost of
production as well as profitability (Siano et al., 2017).
Use of PESTLE Analysis
PESTEL ANALYSIS is used to monitor the Macro environmental factors affecting the
organization. It stands for:-
 P for POLITICAL
 E for ECONOMIC
 S for SOCIAL
 T for Technological
 E for ENVIORMENTAL
 L for LEGAL
The positive environment of PESTLE plays a vital role for the company. The positive
environment supports the company in operating the business smoothly as well as also supports
them to enhance its overall profit in an effective manner.
Economical Factor: The stability economic environment of UK supports the company to achieve
its targeted goal in more efficient manner. The GDP of the country grew by 1.4% and it is
expected growth to stabilize around 1.5% with the conditional on reaching a board free trade
agreement (FTA). The country is also considered as the free market as well as enhances the

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foreign direct investment that provides an opportunity to the Volkswagen to expand its business
by targeting the consumers and controlling over its cost in more effective manner.
Technological Factor: UK is well developed and highly technical country. London is the main
hub for both financial as well as technological institutions. The business is frequently developing
new technologies to offer the best solutions for their consumers. The country attracted £28
billion in the investment of technology since the year 2011 while comparing to the £11 billion in
France and £ 9.3 billion in Germany. Therefore, the positive technical environment of UK
support the Volkswagen to grow and compete its competitor more efficiently through
introducing new product in the market more effectively and effectively (Bulian et al., 2019).
Impact of Globalization on Volkswagen
Globalization is very broader aspect word it contains whole globe in, it is simply bringing the
whole world closer with no specific boundaries attach to do business in soulful way. It is
interaction and integration of the people, companies, economies, and countries worldwide. It
leads to increase in the global transportation, trade, economies as a whole which will lead to flow
of funds globally so that the economies of different governments get stronger and better. The
working culture, management of staff, etc. things is pushed up on the brighter side for all
economies. Capital investments are made by the International monetary fund also so that fund
flow become easier and authentic.
Volkswagen can increase its sales in the different countries by going globally by adopting their
culture, needs, geographical structure and add as a brand to their car industry and leading to
increase in revenue and company plan.
Volkswagen also can get better in technology adaption as the new finer engines, models,
performance boosters; fuel cuter can be learned by it helping its market hold to be stable (Ammar
and Sami, 2016).
Support of Technology
Technology has gained Volkswagen a lot in different parts of its business as it has put down its
cost of searching customers and advertisements of cars as the technology has made it easier for

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one to search for new models and compare them online only from any place in world and get a
full feedback on the research on the car very easily. Logistics have been made very easy for the
organizations as automated machines have been developed who perform the work on their own
no manual guidance is needed this has brought down the cost of manpower for company. The
time consumption which took earlier to send the specified models to a particular global location
has been lowered as jumbo air carriers have developed to perform the task. Communication
barriers have been shattered as all information about launching, pricing, features; arability, and
so on are being online and prospective customer can have a look on it. The real examples can be
FLIPKAT a renounced online shopping company has led to increase in the revenue from 15403
billion to 19854 billion from 2016 to 2017 and increasing it to 30164 billion in year 2018 by
indulging technology advancements in their business. One more is of Mc. Kenney’s product
Advance Driver Assistance System which demand has increased from 94 to 139 million units
from 2014 to 2016 (Lee et al., 2018).
Target consumers
Targeted customers are those which can be converted from potential to actual ones. These are
those selected customers who have the potential to buy organizations production in their capacity
and will remain intact with the organization for further trade also. Industry plays an important
role in targeting customers as your product will be popular in which section of people like in
Volkswagen will the targeted customer is having capacity to buy a luxury, demography also
related in this as stats of the religion, culture, population, age, sex, and so on like in Volkswagen
analysis of demography is essential, Behavioural changes in the people according to changing
geography’s, economies, culture, language, etc. will lead to a peddle stone in finding target
customers. Volkswagen has to keep check on daily styles of people, colour liking as per any
nation or something (Arli et al., 2017).
Workforce of Volkswagen
The workforce actually present in the Volkswagen AG company as a whole stands down to 656
K in the year 2018 which has immensely increased from 357 k in 2001. The workforce is in very
good condition as whole but Volkswagen is cutting down 4000 employees. Working staff of full
time employees was in the very good condition the staff from the early starting stage have been

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detained to get the best ever knowledge in times of disparities. Volkswagen is known interested
in the most of the automation of the production process. Part time workers were also encouraged
by the management to get their work done in time when permanent staff was not present. Zero
hours are also attracted in the production house where they can relax and be paid for not doing
the job also. Volkswagen also was into to spending the bonuses and rewards to the best
performers organization has promised to give up 4750 pounds as the bonus part in 2018. The
bonus is equally given according to the extra performances given by either the top management
people or the lower management. The labour outsourced by the company at the time extra
production, or strikes, etc. is being treated well in the organization in case of remuneration and
bonuses if outperformed (Whittall et al., 2015).
Role of Ethics
Ethics are the basic principles that work on a concept on which human conduct is dependant. It
haves the study of universal values which have the essential equality of all men and women,
includes natural human rights and sights, being serve to the rule of land, and includes the health
and safety of the natural environment
Importance of ethic in the organization can be established as:-
 CREATING CREDIBILITY:- The organization will create a credibly in the industry that
it is a most ethical way of business and its management is well disciplined and always
into follow up of ethical moral and values which will help in creating more customer and
revenue in future.
 UNITY:- The employees and employers come on the common platform to perform the
business. The communication can be set up very securely and confidently in the
organization so that a proper smooth working can be established (Kaptein, 2015).
Combating carbon emission and reducing Co2 by company
Volkswagen was always in the mood of use in the renewable source of energy in production so
the emulsion in the environment of Co2 and diesel consumption is decreased. The Co2
generation has worldwide reduced by 40.4% with its Think Blue, Factory environmental

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program. The natural resources consumption has reduced to 30 % by the end of 2010 year. By
2025 organization wants to achieve the mark by 45%. Zwickau will build the Volkswagen ID
with a Co2 neutral point. Zwickau plant has reduced the CO2 emulsion with the help of
measures to 66 % in the past years. The organizations believe in the reduction of Co2 and
discontinuing use of the diesel operated machines has resulted in the vast positive achievement.
By the end of 2019 Zwickau the ID1 will be producing entirely carbon neutral production and
helping the environment to go greener. This will be possible after generating high levels of
energy, using high configured plant with greener fuel consumption, hydropower will be the best
source of energy by the Volkswagen to use which will the pure source of greener fuel and natural
fuel with no emulsion of CO2 and consumption of diesel (Salahuddin, Alam and Ozturk, 2016).

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References
Ammar, S.A.M.O.U.T. and Sami, B.O.U.S.A.B.O.U.S. (2016) Human capital impact on the
success of small and medium enterprises. Global Journal of Research in Business &
Management, 4(2), pp.254-266.
Arli, D., Grace, A., Palmer, J. and Pham, C. (2017) Investigating the direct and indirect effects of
corporate hypocrisy and perceived corporate reputation on consumers’ attitudes toward the
company. Journal of Retailing and Consumer Services, 37, pp.139-145.
Bulian, F., Enters, D., Schlütz, F., Scheder, J., Blume, K., Zolitschka, B. and Bittmann, F. (2019)
Multi-proxy reconstruction of Holocene paleoenvironments from a sediment core retrieved from
the Wadden Sea near Norderney, East Frisia, Germany. Estuarine, Coastal and Shelf Science,
p.106251.
Kaptein, M. (2015) The effectiveness of ethics programs: The role of scope, composition, and
sequence. Journal of Business Ethics, 132(2), pp.415-431.
Lee, M.J., Paik, S.Y., Cave, A.H. and Jung, J.S. (2018) Comprehensive competitiveness for auto
companies from the USA, Germany, Japan, and Korea: empirical analysis through a diamond
model perspective. International Journal of Multinational Corporation Strategy, 2(2), pp.95-
132.
Salahuddin, M., Alam, K. and Ozturk, I. (2016) The effects of Internet usage and economic
growth on CO2 emissions in OECD countries: A panel investigation. Renewable and Sustainable
Energy Reviews, 62, pp.1226-1235.
Siano, A., Vollero, A., Conte, F. and Amabile, S. (2017) “More than words”: Expanding the
taxonomy of greenwashing after the Volkswagen scandal. Journal of Business Research, 71,
pp.27-37.
Whittall, M., Martinez, M., Sánchez, F.R., Telljohann, V. and Mustchin, S. (2015) Volkswagen
Transnational Company Agreements. The meaning of international corporate regulation at
work. The Transnational company agreements, p.71.