Introduction Four Functions Approach Important Success Factors Challenges that will face next 5 years Findings Recommendation Solar Power and Tidal Resignation of Volkswagen's CEO Martin Winterkorn Who is liable if collision occurs? i. Planning Long-term objectives Strategies Difficulty of individual goals ii. Organizing Employees report to me Centralisation or Decentralisation iii. Controlling iv. Leading

1. UKMM 1013
Management Principle
Presented by

2. Introduction
 1937, located in Wolfsburg, Germany, aim is “people car”.
 1938, Gesellschaft Zur Vorbereitung des Deutschen Volkswagen mbH to Volkswagenwerk GmgH.
 Almost 336,000 people subscribed but failed to deliver to customer.
 1939 to 1945, WW2, more than 15,000 slave laborers building vehicles for German army.
 1998, Volkswagen set up a restitution fund by survivors.
 1949, Volkswagen passes to Heinrich Nordoff.
 The state of Lower Saxony is Volkswagen main factory.
 1955, The sale of Beetle reach 1 million.
 Volkswagen is one of the biggest firms in automotive market in 2014.
 Volkswagen set a mission and four objectives to get success in 2018.
 Minimizing fleet costs and providing world class customer service.
 Attain long-term relationship with customer by advance innovation and high quality.
 Focus on environmental protection and profitability of our vehicle projects.
 Selectively extended range of friendly vehicles by sufficient use VW group’s assets and improve competitive advantages.

3. POLC (Four Functions Approach)
Planning
1. Long- term objectives
• Increase its unit sales and profit in long- run (10 mil)
• Growth in market share
• Make return on sales at least 8% before tax
2. Strategies
• Expand the range of vehicles
• Expand customer base
• Adapt their vehicles to specific local requirements

4. Organising
1. Span of control
• Optimum span of control
• 15- 20 subordinates
• Managed by Board of Management along with Articles of Association
• Management is conducted by committees from different department
• Hence, no overriding or abusing of power
2. Job Designation
• Skill Variety
• Task Identity
• Task Significance
• Autonomy

5. Leading
• Conduct survey
Barometer of Opinion
Year 2014, 443000 employees took part in this survey
• Inprovement ideas
Give opinion online
2 million inprovement ideas received

6. Controlling
• Information system
More than 9300 IT employees, 700 systems
Developing and improving current application and system
• Risk management system
Helps to spot risks and existing risk
Dr. Ferdinand

7. Important success factors
-Volkswagen comes out a strategy to become the leader of
global automotive industry.
-pays attention and focus on the environmental protection and
profitability of vehicle projects
-barometer of opinion
Challenges over 5 next years
-To overcome the emissions scandal
-They came out a Strategic plan 2025
-emphasize on the electricfition cars
-To get back the good reputation

8. Findings
-complete hierarchy organisational
structure
• Long range electrical vehicle
projects.
• Makes wise decision in handling
diesel emission.

9. Recommendation
1.Solar Power and Tidal
•Converse the sunlight
•natural changes in water level
2. Resignation of Volkswagen's CEO Martin Winterkorn
•He does not know what happens
•subordinates
3.Collision
•Accident become controllable
•Car designer or The person in the car

10. Conclusion
• Age-old brands
• always plan to increase their unit sales and profit
• Outstanding management
• Still have problems