volkswagen; new strategy and cheating scandal

Volkswagen; New Strategy and Cheating Scandal

Class: Strategic ManagementResearcher: Natchaya Charnsakorn

Date 03/13/2016

Learning Objective: Ability to understand the role of

values, mission, and vision in formulating and

implementing strategy

Current Event Article: Hotten, R. (2015, December 10).

Volkswagen: The scandal explained.

Research Question

Did the Volkswagen Group make the right move to

formulate and implement new strategy into the

organization?

(Yes, it does not = Pro) (No, it does = Con)?

Description

• Focusing on positioning as a world’s

economic and environmental leader

(Strategy, 2016).

New Strategy = “GROUP Strategy 2018”

Company’s Mission

“The Group’s goal is to offer attractive, safe and

environmentally sound vehicles which can compete in an

increasingly market and set world standards in their

respective class.” (Jurevicius, 2013)

Volkswagen VZ. (2016)

Current Event

Creating harmony and good

culture within the company about

environment protection.

Organization’s value, mission, and vision

Con

Pro

• New Strategy fit with

- Not all level of employees

- Lose employees, investors trust

- Lose credibility and reliability

Pro

• New Strategy fit with

High demand of eco-friendly products

Con

- Lose huge cost of product recall- Lose market share- Lose brand loyalty- Lose customer trust

Con

- Hard to achieve - Lose brand image for

long term

Pro

• New Strategy fit with

World’s Current EventEnvironment and Eco-friendly

Evaluation

Good Strategy

• Good Value

• Good Mission

• Good Vision

Hard to achieve BUT

Recommendation

• Following value, mission, vision, and strategy

seriously.

• Finding the way to rebranding and regain the

customers base.

Short term profit

Thank you

References