Volkswagen in Romania: A Case Study of Multinational Impact

Desklib provides past papers and solved assignments. This report analyzes Volkswagen's impact on Romania's business environment.

MANAGING A SUCCESSFUL BUSINESS PROJECT
How do Volkswagen impact the business environment of Romania

INTRODUCTION
The multinational corporation is a business organization which is having good relations
with the other countries and engages in foreign direct investment to enhance the profit.
The growth of multinational companies is enhancing rapidly (Bailey et al., 2018). It has
been observed that the organizations want to expand their business in other countries in
order to enhance their brand value and sales ratio. Expansion of multinational companies
highly impacts the developing countries and their economic structure. This assignment will
be evaluating the impact of multinational companies on a developing country.
For understanding this topic accurately this assignment is choosing Volkswagen that is a
multinational company. The company is expanding its business in Romania which is a
developing country. Volkswagen is working in the automotive industry from the past 80
years the company was founded on 28 May 1937 by German Labour Front. The
challenges and issues that have been faced by Volkswagen at the time of expansion in
Romania will be discussed in this report (Barnham, 2015). The positive and negative
impact of multinational companies like Volkswagen on host destination like Romania will
be focused on the assignment.

LO1
P1 DEVISE PROJECT AIMS AND OBJECTIVES FOR A CHOSEN SCENARIO
The main aim of this research project is to analyze the impact of multinational companies
on the host destination for which the report is choosing Volkswagen that is expanding their
business in Romania. For gaining the accurate results the research report needs to use
tools and techniques (Buiga, 2012). With the help of appropriate methods and systematic
implementation the researcher can gain satisfactory outcomes from the research.
Volkswagen has faced a lot of challenges at the time of expanding its business in Romania.
The report wants to analyze the positive and negative impact of multinational companies
on the country.
Mainly the project is focusing on Jobs and wages. Exploitation of workers in developing
countries and the elimination of jobs and lower wages in developed countries has been
observed. It is impacting the employment and market opportunities in developed and
developing countries (Charles Jr et al., 2017). Globalization is one of the main reasons for
the growth of multinational companies. Salaries and wages of employees have influenced
after the expansion of multinational companies. The different opportunities and challenges
which have been faced by the multinational companies will be focused in this research
report.
The main aims and objectives of this research study are presented below:
 To critically evaluate the challenges and opportunities that have been faced by a
multinational company (Volkswagen) at the time of expanding the business in
Romania.
 To analyze the growth of multinational companies in a developing country
(Romania).
 Impact of globalization on the growth of multinational companies.
 To analyze the exploitation of workers in developing countries and the elimination
of jobs and lower wages in developed countries (Geraldi and Lechter, 2012).

P2 PRODUCE A PROJECT MANAGEMENT PLAN THAT COVERS ASPECTS OF
COST, SCOPE, TIME, QUALITY, COMMUNICATION, RISK AND RESOURCES
M1 PRODUCE A COMPREHENSIVE PROJECT MANAGEMENT PLAN, MILESTONE
SCHEDULE AND PROJECT SCHEDULE FOR MONITORING AND COMPLETING THE
AIMS AND OBJECTIVES OF THE PROJECT
Project management is a plan which is really effective and helpful in managing the
structure of the research report (Harrison and Lock, 2017). It is helpful for the project
manager to attain the goals and objective of the report successfully. The project
management plan will be accurately applied to Volkswagen so that the impact of
multinational companies on developing countries like Romania will be analyzed properly.
There are some essential stages of project management plan such as:
Project scope
Project time frame
Project cost
Communication plan
Quality
Risk and other resources
Project scope
Project scope is an essential aspect of the project which includes essential roles and
responsibilities of the project manager (Holton, 2011). The scope is helpful in deciding the
limits and boundaries for the report.
 The positive and negative impact of expansion on the business growth of
Volkswagen will be analyzed.
 The organization needs to adopt different strategies and plans in order to expand
their business successfully in a developing country.

Project time frame
There must be a time limit for the project which needs to be decided by the project
manager (Kirchmer, 2011). The scope, budget, and other aspects can effectively be
managed by setting an appropriate time limit. The project manager is responsible for
completing all the tasks on the decision deadline.
The decided time frame for this project is presented below:
TASK ACTIONS NEEDED TIME
TASK 1 In the first stage, the project manager
analyze the available resources and
conduct a meeting with the designated
expert and identify the project sponsor
First and the Second
week
TASK 2 A draft plan will be created by the
project manager to know the actual
requirements of the project (Landau,
2013).
Third and Fourth Week
TASK 3 A proposed plan must be created that
will include the different challenges and
opportunities which has been faced by
Volkswagen at the time of expansion.
Fifth Week
TASK 4 Understand the different phases of the
project and select the appropriate
method to gain satisfactory outcomes.
Sixth and Seventh Week
TASK 5 Finalize the cost, time, budget and other
essential factors of the project.
Eight Week

Project cost
The project will include different expenses which need to be evaluated by the project
manager at the time of starting the project (Lo, 2011). A well-managed budget must be
maintained by the project manager in order to allocate the project fund accurately.
Resource Requirement Budgeted cost
Raw material $1500
Management Resources $500
Building rent $2000
Insurance and Transportation cost $1500
IT Infrastructure and other facilities $1000
General Equipment’s and other
Machines
$3000
Human resource $1200
Other Miscellaneous Resource $1300
Total $ 22000
Communication plan
This is one of the main elements for the success of the project. Effective communication will
be really helpful in managing all the activities of project plan accurately (Noe et al., 2017).

Execution of an effective communication plan will be helpful in circulating the needed
information between the employees and manager of Volkswagen.
Resource Management
The essential resources that need to be used in the project must be managed appropriately.
Effective resource management is really helpful for the success of the project (Sharp et al.,
2017).
Potential Risk components
The project manager will face different types of risk and challenges at the time of analyzing
the satisfactory outcomes for the research. Risk analysis for this project is defined as under:
Risk Impact Mitigation Strategy
Describe Risk
Project time, structure and
scope need to be analyzed
with respect to risk and
challenges.
The project manager can create
effective strategies and to resolve
the impact of risk.
Describe Issue
The project manager needs
to analyze the probability of
issues (Paauwe and Boon,
2018).
Set accurate strategies and plans
to solve the current issues and
problems.
Describe
dependency
Project dependency and
external factors need to be
analyzed which can impact
the outcome of the project.
Efforts of every individual
incompletion and the success of
the project will be valued and
respected in an effective manner.

P3 PRODUCE A WORK BREAKDOWN STRUCTURE AND A GANTT CHART TO
PROVIDE TIMEFRAMES AND STAGES FOR COMPLETION
Gantt chart is an effective tool that will be really helpful in analyzing the accurate time for
the different activities of the project (Tofade et al., 2012). This will be helpful in managing
the tasks according to their time limits. It is a graphical representation which represents
the duration of every individual task.
Figure: Gantt chart
Source: Gerald and Lechter, 2012

Work breakdown structure
Work break down structure is really helpful in managing the work inappropriate manner.
The project can be successfully completed with the help of work break down structure.
This will cover every aspect of the project which is helpful in analyzing the impact of
multinational companies on the developing countries (Turner, 2019). The work break
down structure for this project is presented below:
Activities Actions
Activity 1 Understanding the situations of
multinational companies at the time of
expanding their business in a developing
country like Romania.
Activity 2 Setting accurate strategies and plans to
attain the goals and objectives successfully.
Activity 3 Finding a reliable source to find the data for
the project.
Activity 4 The work break down structure needs to be
laid down.
Activity 5 Adopting the primary research and finding
the data with the help of using secondary
sources.
Activity 6 Adopting different strategic tools and
techniques to collect and evaluate the data
accurately.
Activity 7 Depict an accurate conclusion from the
gained data of the research.
Activity 8 Conclude a final decision by conducting