Volkswagen Group: Data Design and Mobility Strategy Analysis Report

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Added on  2021/02/19

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This report provides an in-depth analysis of Volkswagen's mobility strategy, focusing on its goals for 2025 to become the most attractive employer in the automotive industry. The report examines data design principles and the effectiveness of data collection methods, specifically comparing SurveySparrow and SurveyMonkey. It explores the strengths and weaknesses of SurveySparrow, highlighting potential biases and the importance of appropriate data collection. Furthermore, the report assesses Volkswagen's financial position, including its cash flow statements and the impact of the emission scandal. It also examines the company's e-mobility initiatives and investments in innovative fuel-efficient vehicles. The report concludes with an evaluation of Volkswagen's progress towards its strategic objectives, considering factors such as customer satisfaction, technological advancements, and financial performance. This analysis aims to provide a comprehensive overview of Volkswagen's approach to data-driven decision-making and its journey towards achieving its mobility goals.
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Data Design
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EXECUTIVE SUMMARY
Under this project, scenario has been built around Volkswagen Group, which looks for
shaping its mobility till by 2025. As topic is mainly depended on how company uses its data
techniques from own sources or other source to increase its brand name, as best employer in the
marketplace, a detailed analysis has been made on effectiveness of same. Therefore, to analyse
the position of business, management of Volkswagen uses survey sparrow techniques, that helps
in evaluating if it is able to achieve strategic goals or not. In this regard, a detailed discussion is
made for analysing the effectiveness of survey sparrow data collection method, that states that
using this technique may provide biased data that effect research outcomes. So, it is better to use
SurveyMonkey method of data collection, for analysing if Volkswagen is able in shaping its
mobility.
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Table of Contents
Strategic Business Question: How much Volkswagen is able to shaping its mobility till 2025, to
become the most attractive employer in the automotive industry?..................................................1
Question 1:..............................................................................................................................1
Question 2:..............................................................................................................................2
Question 3:..............................................................................................................................4
Question 4:..............................................................................................................................9
Question 5:............................................................................................................................12
Question 6:............................................................................................................................16
REFERENCES..............................................................................................................................21
Appendix 1: ...................................................................................................................................23
Appendix 2.....................................................................................................................................24
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Strategic Business Question: How much Volkswagen is able to shaping its
mobility till 2025, to become the most attractive employer in the automotive
industry?
Question 1:
Data design refers to a process of designing a dimensional model, which allows the
customised reporting. It exposes a model of information about business strategies while
providing flexibilities for generating reports (Cox, 2018). For this process, a number of data
technique tools are used, to evaluate a strategic questions of business. In context with
Volkswagen, it is one of the largest German automaker company in terms of sales, that founded
in 1937 and headquartered in Wolfsburg. In order to realign the Volkswagen Group, in both
strategic and technological manner, its employers have defined four main goals for fascinating
and sustainable market as -
Volkswagen mainly intends for deploying the intelligent innovations and technologies, in
order to become a world leader in automotive industry, in terms of customer satisfaction
and quality (Volkswagen: Goals and Strategies, 2015). Here, customer satisfaction
consider as one of the main key requirements to gain long-term success of business.
Generating unit sales of approximate 10 million vehicles a year is the main goal of
Volkswagen particularly in major growth markets.
Another aim is to earn long-term return on sales to ensure strong financial position of
Group, which retains the ability of business to act even in difficult market periods.
To become the most attractive employer in the automotive industry, management will
concern more on developing the best team in given sector, that are highly qualified, fit
and motivated for the same (Whitmeyer and et. al., 2019).
To achieve all such objectives, so that Volkswagen can become the most attractive
employer in automotive industry, it is essential for management of given company to evaluate
effectiveness of company first. As this would help in analysing requirement of modification and
strategies need to enhance capability of business (Pourghebleh and Jafari Navimipour, 2019). For
this purpose, Survey Sparrow tool is used for collecting, analysing and aggregating the
information, to meet specific business question. Thus, using this tool, management of
Volkswagen can gather information from various authenticate sources and analyse the same, to
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conclude result. But to use this technique, it is also essential to conduct risk assessment in
following manner -
Applicability: Before gathering any published information about company like business
data, industry analysis and more, it is necessary to check applicability of data first (Dennis,
Wixom and Roth, 2018). This would help in measuring if gathered information is relevant or
appropriate for significantly meeting the outcomes, so that chance of failure or other risks like
irrelevant information can be minimised.
Availability of Resources: It is one of the main component of risk assessment process,
where to collect information, how many sources are available need to check first. It may help in
ensuring that chosen method will provide desired amount of available resources to collect
relevant information (Flynn, Albrecht and Scott, 2018).
Ethical consideration: To collect information from company's data, industry analysis,
government census and more, it is essential to ensure that proper ethical rules are applied also, by
concerning on terms and authenticity of each available resource.
Artefacts of Business Rules: In order to use company's data for analysing current
condition of business or meet significantly the objectives, it is also becomes essential for a
project maker to concern on business rules and regulations (Cox, 2018). This would help in
maintaining authenticity of project more efficiently.
Therefore, to significantly meet the business question of Volkswagen, a number of
surveys can be conducted to analyse business position in market.
Question 2:
Irrespective of the industry, in which business of a company deals, it is imperative to be
the best. For this purpose, it is essential to know the customers better, for exceeding their
expectations as well as let them to choose over competitors (Dennis, Wixom and Roth, 2018). In
this regard, data helps in achievement of analysing where change are needed to be done. But
before pick any data collection tool for business, it is necessary that the same must portray
multiple roles. For example, donning the cap about customer feedback on a related
product/service, different software can be used. While market research software is used to know
the target market inside out, that helps to listen to a customer via evolving into a voice of
customer tool (Witten and et. al., 2016). Therefore, best data collection tool will be turned itself
into virtually manner like – Data Usage tool, consumer satisfaction survey software, employee
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engagement software and more. Among these tool, one such tool is SurveySparrow. This tool
includes two types of surveys as conversational forms and chat-like surveys. As both methods
provides the conversational experience to collect data therefore, while drafting surveys, it is vital
for management of Volkswagen to ask right questions in order to get correct answers (Tracy,
2019).
Strengths Weaknesses
SurveySparrow is considered as easy
method to take feedback of customers,
by setting up survey and sending the
same through e-mail and different
channels (Pourghebleh and Jafari
Navimipour, 2019).
This method allows to embed the
survey directly into website of
company, where best part of
SurveySparrow is that – for collecting
and analysing data, no additional
statistical software is needed.
It offers easy to interpret reports and
visualisation, as well as help in
developing effective strategies to
follow new trends of market in
business.
Limited features shows the major
disadvantage factor of respective
method of data collection tool.
Open-ended questions that allows
individuals to give their own view,
create difficulties in meeting the
strategic objectives of business.
Biasedness of data create inaccuracies
as well, where hidden agenda and lack
of personalisation cannot be avoided in
developing the transparency in
company's decision (Whitmeyer and et.
al., 2019).
For analysing the viewpoint of company's stakeholders, a questionnaire has been
conducted where 30 respondents (stakeholders of Volkswagen) are chosen. Hereby, some
questions have been asked about effectiveness of selected data collection method (as shown in
Appendix 1). It has been interpreted from this survey, that SurveySparrow consists a number of
features that helps Volkswagen in analysing the customer's feedback about its quality of products
(Noble and Smith, 2015). But lack of personalisation and hidden agenda always arise questions
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for accuracy and reliability of data. Therefore, it is essential for management to use given tool in
appropriate manner, so that significance of meeting the objectives can be ascertained.
Question 3:
Apart from current challenges, new business models of automobile companies are based
on advancing technology, as well as changes in customer demand also open up the significant
long-term potential for them (McCusker and Gunaydin, 2015). As it has been expected that
industry revenues till 2025 will be doubled because now automakers focus more on scaling up
their e-mobility. Such companies including Audi, BMW, Volkswagen and more are expected to
launch more than 300 new battery electric vehicles (BEVs) by 2025, for meeting the global CO2
fleet regulations. Since, currently it has been estimated that for reducing the worst impact of CO2
till 2021, near about two million electric vehicles are needed to be manufactured. For this
purpose, Volkswagen are going to make a huge investment on its upcoming project i.e.
manufacturing more innovative fuel efficiency vehicles (Hair Jr and et. al., 2015). The main goal
is to ramp up the e-mobility with other automotive players and enhance capabilities of business
and technological base via developing more competencies and cooperating with new market
entrants, like tech companies. To meet this goal i.e. how much Volkswagen is capable in
shaping its mobility for becoming the best employer in automobile sector, an article is chosen.
Hereby, data is collected from Consumer Reports survey (2016), to check reliability of its
products (Are Volkswagen reliable? An impartial look at the German brand, 2017). It has been
found by this survey that Volkswagen was on 9th position in terms of unreliability because one of
each 52 engines has resulted in failure (Duncan and Fiske, 2015). While on the basis of
reliability, it comes on 22nd position of 29 automobile companies. But some of the features that
shows outstanding performance of its products (Volkswagen Golf) are brake pads, bulbs,
cambelt etc. which do not need to repair or replace. Along with this, it provides a great space
and features like climate control, entertainment system, driver assist technologies etc. are all top
of the line, that makes ride more comfortable and smooth.
As Volkswagen is counted as one of the best company than other German counterparts,
but still due to emission scandal, it has lost the reputation of brand in automobile industry. The
great emission scandal that happened in 2015, is considered one of the biggest issue that arise a
number of problems in front of this company (Lewis, 2015). US officials in 2015, was uncovered
the software that was designed for cheat emission testing in Volkswagen cars. This scandal is
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still in headlines today, that impact adversely on respective company, where it has compensated
neat about £11.8 billion to regulators and customers (Abbasi, Sarker and Chiang, 2016). It would
result in decreasing its profitability ratio that put a question mark, whether it is in position to
achieve desired goals in set period of time or not.
To analyse the financial position of Volkswagen, it's annual report of 2017 has been
taken, as shown in Appendix 2. As per this data, it has been analysed that cash flow statement of
Volkswagen group categorised into three division such as Volkswagen group, Automotive &
financial services (Grover and Kar, 2017). At the starting of financial period Volkswagen group
have gross cash flow in 2016, £26007 and in 2017, £32651 (Financial Position of Volkswagen,
2018). The Volkswagen group gross cash flow recorded about £32.7 billion in the financial year
2017 but it is increased by 25.5% as compare last year 2016. There is analysing changes into
working capital after analysing current assets and current liabilities. Current liabilities of the
company more than to current assets that become reason of negative working capital such as -
16576 in 2016 and -33836 in 2017. The group expected of high cash outflow due to linked with
diesel issue in the reporting period.
From the operating activities of group understand that decreased by £10.6 billion to £-1.2
billion (Ewing, 2017) . There is identified new items in the cash flow that present negative effect
on gross cash flow and positive impact change in the working capital. The investing activities of
the group referable to operating activities increase by £18.2 billion which is 8.5% more than past
year. The transaction of Acquisition and disposal of equity investments mainly consist of
acquisition of shares in Navistar and sale of part of PGA group (Hillman and Biggan, 2017). The
amount of sales of the shares in Lease plan influenced to last year data.
Cash inflow from financing activities calculated about £17.6 (9.7) billion. These are
consisting of different activities such as issuance and redemption of bonds and other financial
liabilities. The dual tranche (£3.5 billion) successfully placed in June, 2017 which is increased
net liquidity. It was offset through the dividend paid to the shareholders of Volkswagen AG
(£1.0 billion). At the end of cash flow the Volkswagen group's cash and cash equivalents as
transacted in the cash flow statement about £18.0 (18.8) billion and were thus down on the prior
year reporting date (Charan, 2017). From the cash equivalents less securities, loan and time
deposit get amount of gross liquidity in 2016, £46869 and in 2017, 44329 which is less than to
previous year due to increase amount of securities. From gross liquidity deduct amount of total
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third party borrowings and receive amount of net liquidity and define accurate position of
company which is going negative (Levine and et. al., 2018). Overall cash flow analysis it is
getting that financial position of the company is not good so there is required to focus on
different activities such as financing and investing.
Similarly, by using SurveySparrow tool, a survey is done on customers of Volkswagen,
to get their reviews on efficiencies and quality of its products (as shown in Appendix 2). It has
been analysed from survey that Volkswagen Group is committed towards transparent and
responsible service towards customers all across the world and at each and every step. Company
effectively offer immense level of satisfaction to customers while handling resources and
environment with care (Tao and et. al., 2018). It has been further determined that Volkswagen
effectively meet their standards as to ensure high customer satisfaction and society confidence
for long term. As being the most sustainable automotive company in the world The Volkswagen
Group effectively supports health, sport, arts, eduction, science, culture and other initiative
services as to effectively develop regional structures and conserve nature.
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It has been evaluated from the above given statistical data that Volkswagen received
excellent customers ratings review that has been determined via digital dashboard and insights
(Jentoft and Olsen, 2019). In addition with this, with the gathered feedbacks and interviews from
dealer team members it has been evaluated that customers are highly satisfied from the services
and products that has been offered by company throughout whole world. According to the data
that has been gathered from Qualtrics Platform which is also accessible form mobile and desktop
and are further been easily accessed by staff for insight, customers are purely satisfied and are
loyal towards company from many past years (Zennaro and et. al., 2018). This makes company
to make investment in their customer loyalty programmes as to increase this base in best
effective manner. As per the data from 2018 to 2019, Volkswagen increase their customer
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satisfaction base upto 55% by offering qualitative services and products (Lin Yan and Fu, 2019).
As per according to the Japan Customer Service Index (CSI) study it has been analysed that
volkswagen effectively improved their overall customer satisfaction rate by 13 points to 671
points in the year 2018 (Zennaro and et. al., 2018). further satisfaction in mass market segment
effectively improved by 14 points to 668 points. Thus, as per the ratings and reviews of
customers from all around the world this has been determined that Volkswagen offer services
which is beyond initial as to boost satisfaction level of customers in best effective manner.
Question 4:
Since the main research question here, is to check how much Volkswagen is able to
become one of the leading employer in automobile sector (Jentoft and Olsen, 2019). Therefore,
this can be check on the basis of – customer satisfaction, participation of company in CSR
activities, resources conservation across product life cycle, compliance, risk management and
corporate governance etc.
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For investigating the present research issues, i.e. the current position of company and
quality of its products, two datasets has been taken as – Annual Report 2017 and Customers'
reviews by using SurveySparrow data collection tool (Tao and et. al., 2018). Integrating both
data helps in gathering appropriate information about current position of business and what
customers think about its products' quality. But for analysing effectiveness of such data,
exploratory analyse feedback of stakeholders of Volkswagen has been taken by using
SurveySparrow tool, as shown below
Keyword Questions Excellent... Poor...
Navigation Is the data clearly
structured and laid out?
20 10
Is all desired information
is available to analyse
financial position of
Volkswagen?
22 8
Functions Are the functionalities like
search function, XLS
download and more, of
online version leaves a
meaningful addition?
18 12
Presentation of
Content
Is the content reader
plausible and reader-
friendly?
23 7
Quality of content Do the data described a
trustworthy and
transparent view of
Volkswagen?
24 6
Design Do you consider the
visual design appealing?
22 8
Overall Does the information 20 10
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