Volkswagen Emission Scandal Impact on India: A Business Report

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Impact of the Volkswagen Company
emission scandal on India

Table of Contents
INTRODUCTION............................................................................................................................. 3
LO1.................................................................................................................................................5
P1............................................................................................................................................... 5
P2 & M1..................................................................................................................................... 6
P3............................................................................................................................................... 9
D1............................................................................................................................................ 11
P4............................................................................................................................................. 12
M2............................................................................................................................................16
LO3............................................................................................................................................... 17
P5 AND M3.............................................................................................................................. 17
P6 & M3................................................................................................................................... 27
LO4............................................................................................................................................... 29
P7 and M4................................................................................................................................29
D2............................................................................................................................................ 30
CONCLUSION............................................................................................................................... 33
REFERENCES.................................................................................................................................34

INTRODUCTION
Background
Volkswagen is a German Car Manufacturers with it’s headquarter in Germany. The company
was established in the year 1946. By the year 1975, the company holds the position of the top
selling brand of the Volkswagen Group (Siano et al., 2017). The CEO of the company in the year
2007, Martin Winterkorn has brought a new goal for the business. They have a focus on the
sales of cars in the US to be tripled and become the market leaders in terms of automakers.
The Volkswagen in 2007 wanted to utilize the pollution control technology named Blue Tec
which was developed by Mercedes-Benz and Bosch. However, it was very costly but effective in
the area. Therefore, there was enormous pressure on the managers to beat rival firm Toyota by
introducing diesel cars. The automakers could skip the expensive pollution control systems with
better mileage and performance (Oldenkamp et al., 2016). Volkswagen was found cheating with
the regulated tailpipe pollutant. The technology which was installed to shut down the vehicle’s
pollution control system has proportioned with a fine of $120000 in 1973. This has regulated
the fake results of the software that were equipped in the vehicle.
The environmental regulator in California has begun hearing the problems in the EU. This has
direct in the Acts that were counterpart in terms of controlling the pollution. The three vehicles
were randomly chosen for testing. These include BMW, X5 and Volkswagen Jetta and Passat. As
per the Environmental Protection Agency, the German makers have illegally installed the
software’s through which the diesel power vehicles to bypass the standards (Mansouri, 2016).
The software’s were unable to detect state emission testing and show reduced emission. This
scandal went in public and the company has lost near about 38% of the market capitalization.
The study can provide the impact of the Volkswagen emission scandal on the automotive
business environment of India (Zhang et al., 2016).
India is a diverse cultural country with the largest sale of automobile segments in the market.
The Indian auto industry becomes the 4th largest in the world with sales increased to 9.5 per

cent in the year 2017. The prominent auto exporter has strong export growth expectations for
the near future (Cavico and Mujtaba, 2016).

LO1
P1
Despite being a well-known company, it installed the software in more than 11 million diesel
cars to manipulate through the pollution test. This has directed on loss in sales and market
capitalization as well as downgraded credit rating. The Volkswagen has provided the production
at zero import duty to the subcontinents (Mačaitytė and Virbašiūtė, 2018). This is likely to feel
the heat that Indian officials and German firms can brace towards bad news. The total export
output of the Volkswagen in India is 60% and about 50000 cars are shipped every year. The key
structure of the organization of the Volkswagen is outlined by different business activities. The
automotive and financial services divisions and brands within the division are managed (Cavico
and Mujtaba, 2016). The exception of the Volkswagen Passenger Cars and commercial vehicles
brands are solely entitled as the consolidate portfolio for the development of the genuine parts
business. The product and sales of fuel-efficient cars to luxury vehicles are managed by
Volkswagen. This can comprise of the production, development and sale of light and
commercial vehicles such as trucks, business and other heavy parts (Goel, 2015).
Due to this scandal, the outbound shipments have fallen and still, the matter on India is still
being evaluated. This can direct on establishing further technical facts. The key objectives of the
research are:
 To improve the trade agreement and export ratio of Volkswagen car in India
 To assess the impact of international trade between Volkswagen Car in India
 To understand the impact of the emission scandal on the regulations and policies of
India

P2 & M1
Project Definition
The project focuses on the emission scandals of Volkswagen and its impact on the regulations
and policies of the other host countries.
Problem statement
The Volkswagen emission scandals have negatively impacted the other automobile companies
and because of this scandal, the sales of Volkswagen also decreased they lost the trust among
the public which is impacting their image (Crête, 2016). The Volkswagen group is facing a
problem of establishing credibility among its stakeholders and consumers.
Project strategy
The project strategy for the research conducted can include
 The Volkswagen can have planned for foreign direct investment which can help them in
increasing their sales so the proper analysis of investments opportunities can be
evaluated through various tools and techniques.
 The company can add new products or cars in their product line so as to win the trust of
the public and can make their image again with best quality and service.
 The company can study customer behaviour and can post a bond which can be the
indicator of creditability. They can give assurance to the public this will help Volkswagen
in rebuilding its image (Reitze, 2016).
Project scope
The study will give a clear understanding of the impacts which can help other companies to
plan their strategy accordingly.
Project cost and time

The project for Volkswagen will cost them more than $120 million. This can constitute the
following activities such as:
Affected vehicles 30 (in thousands of million)
VW fines 50
VW settlement 20
Import of New models 20
Table 1: Projected cost
Source: Goel, 2015
Communication plan
In order to increase sales the plan of communication must be clear and accurate
stakeholder details Procedure or
method
Time Sender
Top
management of
Volkswagen
Information
about project
progress in detail
with accurate
data
Through proper
documentation and
also through
personal meeting.
monthly Manager
Financier Investment
planning and
implementation
Meeting weekly The team leader
of the project
Staff Evidence of
planning
Email monthly Junior
management
Dealer Organizing and
making time
tables
Emails and meetings regularly Marketing and
sales
department.
Table 2: Communication plan
Source: Reitze, 2016

Resources
The project will require a human and financial resource to have a clear understanding of the
terms of different departments and also between the customers (Lynch et al., 2016).
Risk involved
The various types of risk involved in this project are as follows
Risk ID Statement of
risk
Chances or
probability
Impact Score Response
Scope Quality Cost
1 Financial risk 0.2 0.4 0.3 0.1 0.054 Budgeting and
control
2 Operational
risk
0.1 0.5 0.2 0.3 0.035 Accurate and
correct use of
technologies
3 Management
Risk
0.3 0.1 0,3 0.4 0.057 Clear policies
and process
4 Changes in
government
policies
0.1 0.4 0.2 0.1 0.044 Requires a
more effective
plan of
communication
5 Systematic or
market risk
0.3 0.5 0.3 0.2 0.032 Require study
of the overall
market and
maintain
volatility

P3
Control techniques
Figure 1: WORK BREAK DOWN STRUCTURE
Source: Milne, 2015
1.0 Impact of Volkswagen Company emission
scandal on India
1.1 ESTABLISHING
AIMS AND
OBJETIVES
1.1.1 BRAIN
STROMING
1.1.2 FOCUS
GROUP
1.1.3.
DETERMINING
AIMS AND
OBJETIVES
1.2 SECONDARY
RESEARCH
1.2.1
DATACOLLECTION
1.2.2 LITRATURE
REVIEW
1.2.3 META
ANALYSIS
1.3 PRIMARY
RESEARCH
1.3.1
QUETIONAIRRE
(SURVEY)
1.3.2 DATA
COLLECTION
1.3.3
QUANTITATIVE
ANALYSIS
1.4 RESULTS AND
IMPLICATIONS
1.4.1 EVALUATION
1.4.2 FINDINGS
1.4.3 IMPLICATION

Gantt chat will illustrate the scheduling of the project. It is a type of bar chart which was
evaluated in 1917. This chart is helpful in knowing the exact position of the project by tracking
all the details (Milne, 2015).
Activities 1-2
week
3-4
week
5-6
week
7-8
week
9-10
week
11-
12
week
13-
14
week
15-
16
week
17-
18
week
19-
20
week
Idea generation
Aims and
objectives of
project
Collection of data
through
secondary
research
Meta – analysis
Primary data
collection
Quantitative
analysis of data
Results and
outcomes
Recommendations
Evaluation

D1
The project plan can help in meeting the management stages through which the process of the
research methodologies are staged under five key areas (Bachmann et al., 2017). They are:
Initiation
The project focuses on providing the impact of Volkswagen's emission scandal on the Indian
market. This can direct on the various risk associated with the foreign direct exchange. The
stage also presents the involvement of the risk, communication and involvement of the
stakeholders with the subjective change in the business (Whiteman and Hoster, 2015).
Planning
The planning involves the direction of the project through which the globalization of the
business can help in meeting the supply of the automotive parts from one place to another.
This can include the range and dependency of both the multinational aspects through which
the business can be entertained.
Executing
The project provides the foreign direct investments affected due to the emission scandals. This
has also directed on the sovereignty and culture to meet with the multinational organization's
demand. This can help in executing the deliverables and projects demand for the business
(Nelson, 2016).
Controlling
The control on the performance has helped in meeting the progress of the project through the
necessary change. The requirement can be managed with the help of the services that occurred
in the project through which the resources can be attained with the business (Lane, 2016).
Closure