University Management Case Study: Volkswagen Solutions Analysis

This case study analyzes the Volkswagen management crisis, focusing on solutions to address violations of corporate social responsibility and customer dissatisfaction. The student provides two primary solutions: implementing a penalty process and offering product replacements. A SWOT analysis is conducted for each solution, evaluating their respective strengths, weaknesses, opportunities, and threats. The student then selects the penalty process as the preferred solution and develops an operational plan with actionable steps, including reducing payment scales, withholding increments, and identifying algorithms for penalty procedures. The assignment demonstrates an understanding of management principles, problem-solving, and strategic planning within a business ethics context. References are provided to support the analysis.

Running Head: MANAGEMENT
MANAGEMENT
Name of the Student
Name of the University
Author Note:

1MANAGEMENT
Solutions
 For violating the rules of corporate social responsibilities, the company should be
imposed with some penalties such as Illegal disposal of Hazardous Waste (Giordano
et al., 2017).
 To avoid the traffic related issues the buyers needs to be provided with replacement of
the vehicles they have already purchased (Nishijima et al., 2019).
 Strengths – This solution will provide a lesson to the organization for violating the
common rules (Dai & Yu, 2019).
Violating the rules is connected with ethical concern – “any potential defense
argument of a “miscalculation” or “computer error”.
 Weakness – This solution will help the organization to identify the lacking aspects.
To increase the awareness about the companies, own other weaknesses.
 Opportunities – This solution will make the organization understand that it should
adhere to Corporate social responsibilities (Dai & Yu, 2019).
To make them aware about CSR to elaborate this it can be said. “…explicit
commitment to environmental awareness and sustainability”.
 Threats – The policies and regulation related to Corporate social responsibility.
To make them understand about the consequences of violating CSR.
Solution 2:
Volkswagen needs to Provide replacement of vehicles to their buyers.
 Strength – This solution will help to retain the customer loyalty (Melser & Syed,
2016).
This solution will help to retaining customer loyalty. “My most urgent task is to win
back trust.”

2MANAGEMENT
 Weakness – This solution will become a cost-effective remedy for the organization.
This identified weakness will introduce the affecting aspects for the organization.
Hence Volkswagen will be able to resolve the identified issues easily.
 Opportunity – It will help in creating referral program can help them to promote their
products (Melser & Syed, 2016).
It helps to introduce the referral program for Volkswagen to resolve the situation
afterwards.
 Threats – New entrants can take advantage of the situation.
Introducing the organization with the probable threat. which limits access to data,
particularly outside the European Union. VW took the position that it was still committed to
“maximum transparency” but was obligated to abide by the laws of its home country.
Choice
1. Penalty process – it refers to providing a sort of punishment to an individual or group
of individuals for violating any rules or regulations. Penalty often serves the
opportunity to score the ultimate goal any organization is aiming at. Hence, both the
two solutions made for Volkswagen will able to provide some opportunity as
mentioned in the above section. From the above mentioned two options including
penalty process and product replacement, the best option to solve the problem is
penalty process.
Operations
1. Operational goal – VW will Evaluate and control the performance of the organization
to enhance their activities in near future.
2. Action steps for implementing penalty process
 VW will Reduce the lower scale in the time-scale with one-time payment.

3MANAGEMENT
 VW will be able to withhold the increments of all the payments.
 Identifying the proper algorithms for the penalty procedure and its applicability on the
organization.
 Understanding the value of representing the problems to the compressed zone.
 It will include the identification the barriers of operating the penalty procedure for the
organization.

4MANAGEMENT
References
Giordano, L., Roizard, D., Bounaceur, R., & Favre, E. (2017). Energy penalty of a single
stage gas permeation process for CO2 capture in post-combustion: A rigorous
parametric analysis of temperature, humidity and membrane performances. Energy
Procedia, 114, 636-641.
Nishijima, D., Kagawa, S., Nansai, K., & Oguchi, M. (2019). Effects of product replacement
programs on climate change. Journal of cleaner production, 221, 157-166.
Melser, D., & Syed, I. A. (2016). Life cycle price trends and product replacement:
implications for the measurement of inflation. Review of Income and Wealth, 62(3),
509-533.
Dai, J., & Yu, S. (2019, January). Subjective Aspects in the Process of Administrative
Penalty. In 2nd International Conference on Social Science, Public Health and
Education (SSPHE 2018). Atlantis Press.