For the Assignment, you will apply what you have learned concerning organizational structure and conduct research on Volkswagen (VW). You will respond to the three (3) questions listed below the Assignment instructions in an APA formatted 2–3 page paper . Please view the rubric icon below for the full Assignment details. If one were to chart the growth spurts of Volkswagen over the past three decades, the chart would look like a roller coaster. Plans were for former BMW boss Bernd Pischetsrieder to fix ailing VW when he came aboard in 2002. However, best-laid plans often go astray. VW’s share price is down almost 50% and profits fell by 36%. What is wrong at VW? First, VW has always been able to charge more for its cars because of quality, innovation, styling, and an implied lifetime guarantee. In recent years, however, consumers have decided that the company is going to have to come up with more value for the dollar if loyalty is to be retained. Second, sales in China’s booming market (VW was one of the first car makers on the scene in this giant economy) have plummeted and GM has driven VW from its number one ranking. Third, cost-cutting moves have not worked. Fourth, VW uncharacteristically has labor pains. The CEO has had little luck in reversing these problems because his consensus management techniques are having little impact on VW’s change-resistant bureaucracy. Over half of the company’s 100 managers are not used to making their own decisions. This spells even more trouble for the company in the year ahead. Checklist: Address the following questions in your 2—3 page essay adding an additional title and references page: There are three parts to an essay: Introduction, body, and summation. The first paragraph* or two introduces the reader to the topic of your paper. The body of the paper will address the questions in this particular assignment paper Finish your paper with a final paragraph or two regarding a summary of what you determined and explained in the body of your paper. * Remember to use at least 3 to 4 sentences in each paragraph. Using a search engine of your own choosing, investigate Volkswagen’s performance over the past two years. Write a brief summary of their fortunes and misfortunes. Visit the Volkswagen Investor Relations Web site, then use the search box on the right and search for “organizational structure”. In particular be sure to look at the Corporate Governance Report. Alternately, you can perform an internet search for “Volkswagen organizational structure.” From information supplied, characterize the company’s existing structure. Based on what you have observed in “1” and “2” above; suggest a new organizational structure for the company. Cite any assumptions that you made when you developed your structure. Volkswagen case information instructions You can also go to the Internet and type in “Volkswagen organizational structure”. Some great content there as well. Access the rubric. Source: Robbins, S. P., & Judge, T. A. (2013). Organizational behavior (15th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
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A Case of Organizational Structure in Volkswagen
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Introduction
The automobile industry is one of the most competitive business environments in the world. The once renowned automobile industry leaders have shown struggle in the market over years. This has been blamed on a number of reasons including the recent recession, entry of new manufacturers into the market and internal organizational factors. Volkswagen provides a perfect example of a once industry leader in automobile manufacture, yet now struggles to impose itself in the market. The paper will provide an analysis of Volkswagen’s performance over the past two years, provide a summary of the company’s fortunes and misfortunes and then provide a suggestion of the alternative organizational structure for the company.
The Performance of Volkswagen over the Past two Years
In the 2015, Volkswagen (VW) performance was poor and the company was struggling to make sales in the U.S market. According to (Trefis Team, 2016) the company had low operating margins going into 2015 and things became even worse with the development of the emission scandal. Although 2014 was a good year in terms of sales, the company witnessed a slump in sales in 2015, declining by about 2% owing to the slowing sales in China and the company’s inability to take advantage of the increased demand in its SUV product. In the third quarter, the company recorded a net loss of $1.83 billion. Although the emission scandal has made major headlines over the past two years owing to the economic ramifications to the company, the company’s operating structure has been a subject of great discussion. The company has around 119 factories, employing over 600,000 employees over the world, with over twelve separate brands of vehicles. The company has less than 6% operating margin compared with T…………………………………..
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