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Engineering management final presentation - Group Q1
- 2. To understand Volkswagen's position in relation to other auto-mobile companies competing in their market. To see what damage has been caused to the company due to the relatively recent engine emissions cover up. To look at the Volkswagen's management systems to understand how such a large company can operate. To find out how Volkswagen can manage and operate so many subsidiary companies without removing all control To observe how the company has transitioned from its origin, how it reflects on its past and how it affects their decisions for the future. Objectives
- 3. SWOT ANALYSIS Wide Market penetration Experience in the automotive industry Well known brands Clever advertising campaigns Controls large part of the market share due to the branches of car companies it owns Owner of one the world's second most sold car at around 21.5 million units. Strengths
- 4. SWOT ANALYSIS No more ground breaking developments Diesel emissions scandal Volkswagen focuses and relies more on the other brands it owns other than itself Weaknesses
- 5. SWOT ANALYSIS Research into electric, hybrid etc. Tax credit for hybrid ownership Further development into small and sustainable cars. Value For Money (VFM) cars Leading car manufacturer for Environmentally friendly vehicles Opportunities
- 6. SWOT ANALYSIS Environment climate change Decline in the automotive sector Economy volatility, including fuel Bargaining power of the consumers Threats
- 7. PESTLE Analysis Politics - Emissions cover up scandal - Running multiple subsidiary companies - Volkswagen AG’s Voting Rights - Volkswagen has been under strict scrutiny due to the emissions scandal - Volkswagen has many head offices in multiple continents Economics - Decline in automotive sector - Largest seller of automotive cars in Europe. - Volkswagen sells around 500,000 cars yearly, with a steady increase in sales each following year of around 2 - 4%. - Volkswagen AG sells around 10 million cars annually - Despite the automotive decline, Volkswagen's economical status has been steadily rising due - Massive monetary loss of around 16 billion Euros due to the Emissions scandal. - Ownership and stake in many other automotive companies has helped them stay alive and keep the investors happy. - The history of the company and its many years in business is what makes Volkswagen a relatively stable investment.
- 8. PESTLE Analysis Social - Backlash of emissions scandal - Marketing - Negative Media attention - Brand Identity and reputation - Cultural access via numerous branches selling cars targeted at them - Volkswagen's key objectives and stances on certain topics -Each company is focused on a selective target audience to avoid conflictions between each other. - Open and transparent with company information such as sales. - Many Volkswagen enthusiasts developed due to the long running nature of the company. Technology - Self parking - Environmentally focused outlook in response to relatively recent emissions scandal. - High quality products focused on customer satisfaction - Very large and well funded R&D sector for progression in technological advancements - Very knowledgeable about transport industry, especially automotive vehicles. - The occasional concept car developed to increase Volkswagen following.
- 9. PESTLE Analysis Environment - Emissions cover up - Recently taken a pro-environment viewpoint and starting restructuring the companies to fit this stance. - Volkswagen has stated they will invest in cleaner energy and components to create their cars in the future. - A large contributor to global emissions. - Volkswagen aims to make the latest model at least 10% more efficient than the previous model. -Volkswagen aims to decrease Carbon Dioxide emissions to 95g per kilometre by 2020. Legal - Emissions cover up - Recently taken a downfall due to the defeat device installed to circumnavigate the set environmental emissions testing and laws. - Volkswagen has headquarters in different countries, which all have different laws, rules and regulations about various emissions, materials and electrical applications.
- 10. Content Topics Managing Change and Innovation Decision Making and Planning Challenges Social and Ethical Considerations Environment and Sustainability Jake Lacey Nathanael Oh Mark Morrison Everyone
- 11. Managing Change and Innovation Managing Change and Innovation Jake Lacey
- 12. Managing Change and Innovation Question 1 How has Volkswagen approached it’s ever competing market to remain an influential car manufacturer?
- 13. Managing Change and Innovation Since its founding, Volkswagen has had to adapt to the trends of society in order to maintain its relevance as an automotive producer. How has Volkswagen approached it’s ever competing market to remain an influential car manufacturer?
- 14. Managing Change and Innovation Factors and Strategies - Diverse demographic targeting - Incorporation of modern technology - Safety and Convenience - Marketing (Advertising) - Trust in the company How has Volkswagen approached it’s ever competing market to remain an influential car manufacturer?
- 15. Managing Change and Innovation Question 2 What initiatives have been implemented that reflect today’s society?
- 16. Managing Change and Innovation In their design approach, Volkswagen has aimed to reflect the technological advances that influence today’s society. It is a way of becoming more involved in the consumers and their desires. What initiatives have been implemented that reflect today’s society?
- 17. Managing Change and Innovation Initiatives - Temporary Autopilot Function - Self Parking - Network connectivity - Hybrid Powertrain What initiatives have been implemented that reflect today’s society?
- 18. Social and Ethical Considerations Social and Ethical Considerations Nathanael Oh
- 19. Social and Ethical Considerations Decision Making and Planning Challenges Question 1 Why does /and why should Volkswagen want to be a Socially and Ethically responsible company?
- 20. Social and Ethical Considerations Question 1 Answer Companies like Volkswagen run on a large scale. They have to tread carefully. Due to this Volkswagen must look after its employees and customers as well as itself. Offer good wages, safe environments, reliable cars, and cars the make them money. Volkswagen understand that Being Socially and ethically responsible is how they stay running and relevant to make money.
- 21. Social and Ethical Considerations Question 2 What does Volkswagen do in order for them to become a Socially and Ethically responsible company?
- 22. Social and Ethical Considerations Question 2 Answer Volkswagen has ‘Responsibilities’ for the company, which are like goals and incentives. The responsibilities are; ● Corporate Responsibility - Recycling, consumption of resources. ● Responsibility for Society - Promoting art, education, science, health sport. ● Responsibility for the Workforce - Provide good working conditions, provide them with future prospects.
- 23. Decision Making and Planning Challenges Decision Making and Planning Challenges Mark Morrison
- 24. Decision Making and Planning Challenges Decision Making and Planning Challenges Question 1 How has Volkswagen gone about fixing or limiting the effect of the relatively recent emissions cover up?
- 26. Company Priorities Priority one: The top priority is to support the customers affected by the diesel issue. This linked in with one of the company's key philosophies that the customers are at the core of everything their 600,000 employees worldwide do. Priority two: To systematically drive forward and complete the investigation into what happened. Priority three: To Introduce new structures into the Volkswagen Group. Volkswagen want to decentralize their management to a greater extent providing greater independence for their brands and regions. Priority four: To create a change in the Volkswagen Group's culture and management behaviour to allow change, create cooperation and to become more transparent to the public and their customers. They will still maintain their quality driven focus and their pursuit for perfection, but just allowing more flexibility to the process. Priority five: To reorganise their strategy they had developed for the year 2018 with a new focus goal set on 2025. The CEO stated that many of their employees were more focused on greater production values and selling the vehicles where the company desires a qualitative growth.
- 27. Question 2 - Multi-Brand Strategies Question 2 Given Volkswagen owns an assortment of other car companies; How do the various organisations run and who makes the decisions?
- 28. Volkswagen AG
- 32. Volkswagen AG Management Board Matthias Müller Prof. Rupert Stadler Dr. Herbert Diess Andreas Renschler Dr. rer. Pol. h. C. Francisco Javier Garcia Sanz Dr. Christine Hohmann-Dennhardt Prof. Dr. rer. Pol. Dr.- Ing. E. h. Jochem Heizmann Frank Witter Dr. Karlheinz Blessing Chairman of Volkswagen AG Chairman of Audi Chairman of Volkswagen Passenger Cars “Commercial Vehicles” “Procurement” “Integrity and Legal Affairs” “Volkswagen China” “Finance and Controlling” “Human Resources and Organization”
- 33. Holding Companies Matthias Müller Chairman of Volkswagen AG Dr. Oliver Blume Chairman of Executive Board Wolfgang Dürheimer Chairman and CEO Prof. Rupert Stadler Chairman of Audi, Lamborghini and Ducati Stefano Domenicali CEO of Lamborghini Claudio Domenicali CEO of Ducati Prof. Rupert Stadler CEO Wolfgang Dürheimer Chairman and CEO
- 34. Volkswagen Brands Dr. Herbert Diess Andreas Renschler Chairman of SCANIA and MAN “Commercial Vehicles” Chairman of Volkswagen Passenger Cars Joachim Drees CEO Henrik Henriksson CEO and President Bernhard Maier CEO Luca de Meo Chairman Dr. Eckhard Scholz CEO Dr. Herbert Diess CEO
- 35. Environment and Sustainability Environment and Sustainability Everyone
- 36. Environment and Sustainability Question 1 How has Volkswagen as an organization gone about making their products sustainable both in the present and the future?
- 37. Environment and Sustainability In a world where considerations of sustainability are becoming more and more important, Volkswagen not only have change their way of thinking for design and manufacturing, but also have to answer for the diesel emissions scandal. How has Volkswagen as an organization gone about making their products sustainable both in the present and the future?
- 38. Environment and Sustainability - Hybrid Powertrains - Eco Driving How has Volkswagen as an organization gone about making their products sustainable both in the present and the future?
- 39. Environment and Sustainability Question 2 What is the problem related to the emissions of cars and their impacts on the environment?
- 40. Environment and Sustainability Combustion is the act of burning a mixture of fuel and oxygen. In cars a similar combustion occurs, the by-products of a combustion engine are Carbon monoxide (CO), hydrocarbons (HC), Nitric oxide (NO), uvsmoke and other evaporative emissions. Diesel cars have a higher NO output over traditional petrol and gas fueled cars. But the main concern is the output of CO emissions for both petrol and diesel fueled cars. CO molecules in the air allows for other more harmful greenhouse gases to linger around. What is the problem related to the emissions of cars and their impacts on the environment?
- 41. Environment and Sustainability The backlash that was caused by the emissions scandal was potentially crippling to Volkswagen’s reputation. Now they must make amends for the mistakes they made. What is the problem related to the emissions of cars and their impacts on the environment?
- 42. Conclusion and Recommendations Conclusion and Recommendations