International Business Plan: Volkswagen Company Competencies

This report provides an in-depth analysis of Volkswagen's international business plan. It begins with an introduction to the importance of international business planning and sets the stage for examining Volkswagen. The report then delves into the company's business competencies, utilizing the VRIO model to assess its strengths and weaknesses, including its global presence, R&D capabilities, organizational culture, infrastructure, supply chain, and product portfolio. The analysis further explores Volkswagen's management styles, highlighting management by objectives and democratic management. The report also addresses the company's failures, specifically the diesel emission scandal, and its successes, including increasing sales revenue, global expansion, and innovation. Finally, the report discusses Volkswagen's strategies for the future, focusing on sustainable mobility, electric vehicles, autonomous driving, and digital networking. The conclusion emphasizes the importance of addressing environmental concerns, leveraging existing resources, and adapting management styles to overcome challenges and maintain a competitive advantage.

INTERNTAIONAL
BUSINESS PLAN
TASK 1

 Planning is very essential for any types of businesses either small, medium
or big.
 Before venturing into international markets companies have to draft an
international business plan.
 International Business plan is the document that will help in setting their
goals by effectively allocating the resources and determine which nation
offer the most potential for their products as well as how to reach their
clients and how to make competitive offers.
 The main reason behind the preparation of International business plan is
to prepare companies to enter the global market place by effectively
organizing the resources.
INTRODUCTION

 In this present presentation, Volkswagen company is being chosen for
assessment.
 It is a German multinational automotive manufacturing company whose
headquarter is located in Wolfsburg, Germany.
 Company was founded in 1937 by Berlin.
 Further, this presentation will include the business competence as an
international operator. It will also discuss the management styles and
success and failures.
CONT…

 Business Competencies is a set of specific capabilities, abilities and
knowledge that sets a company apart from its rivalries in the market place.
 In order to track the business competencies of Volkswagen company,
VRIO model is best.
 The VRIO framework looks at the value, rarity, imitability and
organisation of the company and it also helps in determining the strength
and weaknesses. Here is the VRIO analysis of Volkswagen:
BUSINESS COMPETENCE

 International Presence: The brand reputation and internation presence of
Volkswagen is incredible.
 Capabilities of Research & Development: Volkswagen company has
managed the strong research and development and they used to spend large
amount of fund in R&D.
 Culture of Organisation and HRM: Volkswagen has started emphasising
on the HR management so that they can empower the human resource so
that their organisational culture can meet the requirements of 21st century.
In 2017, there were 642300 employees were employed.
CONT

 Large infrastructure for production: The
infrastructure of Volkswagen infrastructure
is very huge. About 10.9 millions of units
were produced in 2017 of vehicles and the
international manufacturing of network
comprises of 120 locations of productions
 Extensive and large Supply Chain: This
is also one of the capabilities of
Volkswagen as they has established a
special network of FAST suppliers.
 Huge Product Portfolio: This capability
stand among the biggest capabilities of
Volkswagen..
CONT..

RESOURCES VALUE RARITY INIMITABLE EXPLOITED IMPLICATION
Global Presence Yes Yes No Yes Competitive
Benefits but not
permanent
Production
Infrastructure
Yes Yes Yes Yes Competitive
Benefits
Capabilities of
Research &
Development
Yes Yes No Yes Competitive
Benefits but not
permanent
Supply Chain Yes Yes No Yes Competitive
Benefits but not
permanent
Culture of
Organisation &
Human
Resource
Management
Yes Yes No Yes Competitive
Benefits
Product
Portfolio
Yes Yes Yes Yes Competitive
Benefits

The management styles of Volkswagen is very effective and incredible as
company has remarkable achievements.
Management by Objectives (MBO):
This is one of the management styles adopted by the managers of
Volkswagen as the purpose of this styles is to improve the performance of
the company by clearly defining the objectives which are agreed by both
employees and management.
Democratic Management Style:
This is the type of management style where manager offer
opportunities to employees to take part in decision making. Manager
deploys the views, opinion and thoughts of employees. This is the reason
of innovative feature in cars of Volkswagen because a single person cannot
think too widely.
MANAGEMENT STYLES

Diesel Emission Scandal is Volkswagen and it is recognised as one of the
biggest scandal in automobile industry.
It is the cheating scandal for which the Rupert Stadler, executive of Audi
was arrested.
The Environmental Protection Agency of United States has reported that
Volkswagen has installed illegal so-called defeat devices in hundred of
thousands of 2.0 litres engines since 2009.
This was the biggest failure that has cost the brand to more than $30 billion
in penalty.
Failures

 The success of Volkswagen was started to continued upward trends and it
is growing continuously.
 The sales revenue and customers base is increasing consciously by 5.9
percent to €20.1 billion.
 Company is growth across the world as well as expanding in Germany
itself.
 Innovation is rising continuously.
 In August 2018, company has delivered 513300 vehicles which is about
3.7 percent hike.
 In 2018, Company is growing with high pace b the hike of 26 percent in
Europe.
Success

 Shaping mobility for generations to come is the strategy of Volkswagen
which takes a goal of making mobility sustainable for them and for coming
generations.
 They are focusing on manufacturing electrical vehicle, autonomous
driving and digital networking and will make clean, innovative, intelligent
and safe automobile.
 There are four dimensions of this strategy are excited customers, excellent
employer, role of safety, integrity and environment, competitive
profitability
Strategies

 From the above report, it has been understood that Volkswagen has to be
very concern about the environmental emission as the scandal has badly
affected the brand image of the firm.
 The strategy planned by Volkswagen will give incredible result to the
company as all the dimension are excellent.
 But it can be said that Volkswagen can also make full use of and derive
benefit for existing resources of the company that will raise the capabilities
of innovation and gain competitive advantages.
 After the scandal, brand has suffered lots of issues and bad publicity but
with their management styles and with great sense of mind, they had came
up with the great come back in the market.
CONCLUSION

Books and journals
Blackwelder, B., Coleman, K., Colunga-Santoyo, S., Harrison, J.S. and
Wozniak, D., 2016. The Volkswagen Scandal.
Chambers, I. and Humble, J., 2017. Plan for the planet: a business plan for a
sustainable world. Routledge.
Hummel, K., Pfaff, D. and Rost, K., 2018. Does economics and business
education wash away moral judgment competence?. Journal of Business
Ethics, 150(2), pp.559-577.
Schoar, A. and Zuo, L., 2017. Shaped by booms and busts: How the economy
impacts CEO careers and management styles. The Review of Financial
Studies, 30(5), pp.1425-1456.
Talay, M.B., Townsend, J.D. and Yeniyurt, S., 2015. Global brand
architecture position and market-based performance: the moderating role
of culture. Journal of International Marketing, 23(2), pp.55-72.
REFERENCES