Volkswagen

In: Business and Management

Submitted By sona1988
Words 1164
Pages 5
Sona Patel
Volkswagen of America Managing IT Priorities
The new process at Volkswagen to select, manage, schedule and fund projects seems structured and effective.

The Transformation:
In the 1990s, Volkswagen had a very decentralized IT system. Initially they had outsourced all their IT work to Perot Systems and in doing so they drastically reduced the IT staff within the organization. When that didn’t work well, they created Volkswagen AG company gedasUSA Inc. which acted as the point of contact with Perot Systems. Soon, they also created eBusiness teams within each Business unit which in turn developed relationships with their own third party IT providers. This highly segmented design led to high costs and poor timeline adherences. To correct this, Volkswagen created a new business unit within the organization that would be the single point of governance for IT related issues. This unit worked in conjunction with the eBusiness teams and the gedasUSA team but was solely responsible in the management, scheduling, budgeting and execution of the IT projects. This was the first step in the right direction.

The New Process:
There are a lot of factors that govern which projects are the most ideal to be funded and the new system seemed to understand that. The three step process was very structured and first identified the dependencies between various projects. It also classified similar projects and grouped them together for execution. This immensely helped to narrow down the number of projects that were in running to be funded.
Earlier, there was no system in place that decided which project was more critical. It was all very haphazard. The responsibility of managing IT was shared among multiple providers, which meant that each had their own rules and guidelines to decide which projects were to be implemented. This led to non-uniformity.
The reason I…...

Similar Documents

Volkswagen

...Volkswagen Group Business Strategy & International Management Content 1 2 Introduction Volkswagen Group 2.1 2.2 Figures, Data, Facts History 2 2 2 4 5 5 6 8 8 10 12 12 15 16 17 18 3 Strategy Planning 3.1 3.2 Overall Strategy Strategy 2018 4 Business Risk Analysis 4.1 4.2 Porter’s  Five  Forces Resources and Capabilities 5 Financial Risk Analysis 5.1 5.2 Key Financial Figures Risks 6 7 8 SWOT-Analysis Conclusion References 1 Business Strategy & International Management 1. Introduction Whenever you visit another country and you say that you come from Germany on of the first things   you   ever   hear   is   “Germany,   oh   I   like German   cars”   and   then   they   say   e.g.   BMW,   Mercedes or Audi. That shows that German cars are not really German cars, instead they are world cars, produced and sold in countries all over the world. In my case I choose the Volkswagen Group because it is the biggest German car manufacturer and the second largest in the world. Moreover the strategy of Volkswagen is to be the largest car manufacturer until 2018. To reach this goal it is very important to understand the globalized world to compete with their competitors in a more and more competitive environment. Furthermore it is very important to show attention to emerging markets to increase the company’s   sales   especially   when   some   markets   like   America   and   Europe   are   satisfied. In this report I want to analyze the......

Words: 5482 - Pages: 22

Volkswagen Aig

...Volkswagen: Annual Report Breakdown Abstract Financial accounting can be a stressful job to most small business if they do not know what they are looking at. However, large corporations such as Volkswagen have this animal figured out and laid out for everyone to see. In this assignment we will be looking at several aspects of what makes up annual report. First, we will indentify and explain the main sections that comprise the meat and potatoes of an annual report. We will also discuss the key factors that influenced the company’s financial performance during the year. Next, we will define and look at the primary assets held by the company. Lastly, an explanation will be given on how management characterizes the internal control environment of the company. I hope by the end of this assignment you will gain a better understanding on the inner workings of Volkswagens budget. In order for us to identify the main sections of the annual report we must first define what an annual report is. According to our textbook an annual report is a statement that summarizes the financial results of a company’s operations for the year and its plans for the future (Accounting principles, 2009). When you look at Volkswagen’s annual report the first thing you notice is that they have many portions that make up the report. For the ease of understanding, they have segregated the financial documents into five streamlined categories: Divisions (shows all sub company assets under......

Words: 720 - Pages: 3

Volkswagen

...amount is far from adequate. However, at the time, there were no additional funds available. The procedure for deciding which projects will receive funding is streamlined by a new prioritization process. This process for managing IT priorities is part of a new business architecture designed to align organizational activity with corporate goals and strategy. During the first few years of any new policy or procedure there are bound to be unforeseen complications. The largest glitch was how the new process did not account for “behind the curtain” programs such as the intercontinental Supply Flow Project. The Supply Flow Project should absolutely receive funding. The cost should not come entirely from VWoA, but allocated amongst the global Volkswagen group of companies. This project is critical to Volkswagen’s global supply chain management and their goals. Successful global integration not only promises company wide savings, but plays an underlying role in customer satisfaction and loyalty, the number one corporate goal. This Supply Flow Project is already underway and needs additional funding for a timely completion. The new funding prioritization process overlooked such programs as this, primarily because the benefits achieved were at the global level. Because of the widespread benefits, all global constituents should contribute to the project’s financing. Matulovic, along with the supply flow group in Germany, should combine forces and present their case to VWAG for......

Words: 1119 - Pages: 5

Volkswagen

...9-606-003 REV: JUNE 14, 2007 ROBERT D. AUSTIN Volkswagen of America: Managing IT Priorities Dr. Uwe Matulovic, chief information officer (CIO) of Volkswagen of America (VWoA), placed the telephone in its cradle and leaned back in his chair, replaying the just-completed conversation with one of his peers from the Executive Leadership Team (ELT). The call, Matulovic mused, had been similar to three others he had participated in that week, each with a different ELT member. The results of a new prioritization process—a list of IT projects that would be funded in 2004—had been unveiled only a few days earlier. But already a storm was gathering. The phone calls from other executives had common themes. All the callers had expressed concern that high priorities for their areas of the company had not been funded. Some had repeated views expressed during the prioritization process by people who worked for them about supposed categorization mistakes that penalized their business units. And each of the calls had concluded with an informal request to insert an unfunded project (or two) into the IT department’s work plans. “We don’t have to reopen the process,” the most recent caller had said, “but perhaps spare capacity might be applied to make some progress on this project in 2004—we’ve done this before, and it would mean a lot to our area and to the company’s growth plans.” The 10 business units that made up VWoA had proposed more than 40 projects, with funding requirements......

Words: 6266 - Pages: 26

Volkswagen Inspection

...Global Compact Case Study Final Version 23 March 2007 Better Health and Safety for Suppliers A partnership project between Volkswagen, ILO & GTZ Maria Kristjansdottir Reykjavik University, School of Law mariak02@ru.is Tel: + 354 699 0482 Better Health and Safety for Suppliers Case Abstract This case study focuses on the “Better Health and Safety for Suppliers” project and how Volkswagen AG seeks to strengthen their policy in Health Protection, Promotion and Occupational Safety by promoting social protection, improving safety and health standards and strengthening labour inspection. The project is a partnership project between Volkswagen, the International Labour Organization and the German Corporation for Technical Cooperation. The project entails first facilitating the participation of selected Volkswagen suppliers in Brazil, Mexico and South Africa in audits with respect to Occupational Safety and Health in their workplace. Based on the findings of these initial audits, several recommendations are given and used to generate a checklist for a second review (conducted up to 6 months after the initial audit). A report is then created which documents the audit findings, including any improvements that have taken place at such supplier. When all the suppliers have been assessed, best practices and solutions found across all project countries will be developed and collected into an online network. This......

Words: 7303 - Pages: 30

Volkswagen

...INTI INTERNATIONAL UNIVERSITY FACULTY OF BUSINESS, COMMUNICATION AND LAW MKT 2103 / MKT2105 – CONSUMER BEHAVIOUR AUGUST 2014 INDIVIDUAL ASSIGNMENT (20%) Analyse the case study given and answer the following questions. While most automobile companies talk about bankruptcy, merger, collapse, and liquidation, Volkswagen AG is posting solid earnings. Based in Wolfsburg, Germany, and Europe's biggest automaker by sales, Volkswagen (VW) managed the global eco-nomic recession well by focusing on emerging markets such as China and Brazil and continually reducing costs. VW is the leading auto firm in China, not Toyota or Nissan. VW's market share in Western Europe rose to 20 percent in 2009 from 17.9 percent a year ago. While shrinking demand for new cars in major markets and high raw-material costs, and unfavorable exchange rates have reduced earnings of most European automakers, VW anticipated these conditions through excellent strategic planning and continues to take market share from rival firms worldwide. The German truck maker and engineering company MAN AG is VW's largest single shareholder at 30 percent, and its business too has been good. MAN'S third quarter of 2008 saw profit jump 34 percent, lifted by strong sales of trucks, diesel engines, and turbo machinery. VW is currently spending $1 billion to build a new plant in Chattanooga, Tennessee, for the production of a midsize sedan in 2011 with initial capacity of 150,000 cars annually. VW's plans for 2018......

Words: 784 - Pages: 4

Volkswagen

...priorities at Volkswagen of America? The new process for managing priorities at Volkswagen of America provides more transparency and reduces duplicity in projects compared with their old method. Volkswagen established a Project Management Office (PMO) and required business units to prepare the list of proposed projects at the beginning of the year. This was a great first step in highlighting the similarities amongst the projects prior to budgets being set and work being done. It also identified the dependencies of projects on one another and allowed some to be de-scoped for subsequent years. In turn, this reduced the estimated cost from $210 million to $170 million. In phase 2, business units prepared a more formal proposal with information such costs, benefits and how the project links to a business/enterprise goal. While not embraced entirely by some of the groups, this was a good method for aligning IT projects with business strategy. By documenting a more formal proposal, Volkswagen was able to use this detailed information to help narrow down and prioritize projects. During phase 3, executives were asked to indicate the top three projects for the year. These would most likely be applied to the majority of the budget and any other projects would have to figure out a way to get funding or place projects on hold for a year. This more organized structure of prioritizing projects is substantially better than throwing darts in the dark. This process allows Volkswagen to......

Words: 1524 - Pages: 7

Volkswagen

...March 24, 2015 Case Study #1 Volkswagen Group Prepared By: Team 2 Alejandra Alvarez Amanda Kilroy Ryan Musante Bastian Steppin The Volkswagen Group (VW), based in Wolfsburg, Germany, is one of the largest automakers in the world. Comprised of twelve different brands, the automaker maintains a global presence, with more than 100 factories across Europe, North and South America, Asia, and Africa. The company sells its cars in 153 countries. As the world’s 8th largest employer, it has 592,586 workers who produce close to 41,000 vehicles every weekday. Volkswagen boasts many notable strengths, such as strong brand identity (in all 12 of the their brands), dedication to creating customer satisfaction, and excellence in design and engineering. The secret to their success, however, truly lies in their avid dedication to improving efficiency. As efficiency increases, production volume rises, and costs shrink. Throughout their supply chain there have been countless efforts, both large and small, to improve processes, speed up, and lower costs for virtually all tasks that are required to put vehicles into the hands of customers worldwide. Corporate Structure Volkswagen’s corporate structure appears to violate the conventional wisdom of the automotive industry. Firstly, they have a large assortment of brands, each running as its own entity. Each has its own board of directors, and its own annual reports. The brands cater to different markets, either in......

Words: 8167 - Pages: 33

Background of Volkswagen

...The Volkswagen Group Background The Volkswagen Group with its headquarters in Wolfsburg, Germany is one of the world’s leading automobile manufacturers with the world’s biggest car plant. The group is made up of nine brands from seven European countries: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda, Scania and Volkswagen commercial vehicles. Separately these brands have its own personality and functions as an independent entity on the market. The product ranges from low-consumption small cars to luxury class vehicles. In the commercial vehicle division, the product offering spans heavy trucks, busses and pickups. The Volkswagen Group has operations in approximately 153 countries. Unlike other automobile companies, they do not use the word “Vision”, but somewhat they express it like this: Our strategy pursues a clear objective: By 2018, the Volkswagen Group is to be the world’s most successful and fascinating automobile manufacturer and the leading light when it comes to sustainability. The internal mission statement of the Volkswagen group is not available to the public, but on November 25, 2010, the Volkswagen Group joined 21 German companies in agreeing to a "mission statement for responsible actions in business", which serves as a national mission for the Volkswagen group and focuses the Volkswagen leaders on the benefits of responsible business to consumers. The six principles of this shared mission statement are: * Business must serve the good...

Words: 515 - Pages: 3

Volkswagen Case

...of suppliers and dealers to the strategy. But after a sharp decline in sales triggered by the global financial crisis of 2008, the executive team faces a dilemma: should cut back production levels and funding for strategic initiatives until sales recover, or should it continue to invest for the future? Balanced scorecard to monitor and anlayze the root cause of the problems: market share decline & financial losses BSC was based on strategy map which had power to decode high-level objectives into operational terms that mobile their employee teams Key problem: cut back production levels and funding for strategy initiatives until sales recover OR should it continue to invest for future http://www.scribd.com/doc/216303578/Volkswagen-Do-Brasil Question 1,2, 4, 5, 7 Quetsion 1 Internal & external problems: External: * vast decrease in domestic market share * appreciation of Brazilian currency & increases in local labor and raw materials -> leads to that VWB struggled sticking to their export-led strategy & maintainaing production minimum * VWB couldn’t increase prices on shipped products, because of stiff competition -> leads to that excess capacity costs wouldn’t be covered by insufficient export margins Internal * Inefficient processes on shop-floor and administration, like reliance on cost reduction, employee layoffs and capacity downsizing * Changing mindset of employees -> work dedication negatively......

Words: 340 - Pages: 2

Volkswagen

...How should a worldwide auto maker regain trust after brands disaster? A case study on Volkswagen Group Daniel HARMAN 620019565 dh325; Jeffery YIM 620022358 jy28; Ka Ying MAN 640042125 km499; Wing Tim MAN 650052933 wm259; YuPeng Huang 650003422 yh379; Zhihan GUO 650058943 zg234 Outline Emissions scandal of Volkswagen Group and its importance Reasons for comprehending the scandal Analysis of the case Implications for international enterprises Recommendation References Emissions scandal of Volkswagen Group and its significance Emissions scandal of Volkswagen Group ● ● ● Pass emissions tests by cheating Have to recall 11 million of carsestimated cost would be €6.5 billion Share price dropped from €162.40 on Sep 18 to €106 on Sep 22 Volkswagen AG VOW.DE (XETRA) in Euro Source: Reuters (2015) Reasons for comprehending the case Source: Volkswagen (2014) Volkswagen Sustainability 2014 At A Glance, p34 Reasons for comprehending the scandal ● United States is the second largest auto market ● Volkswagen Group is the largest auto maker ● Many international firms face brand crisis and should know how to renounce Analysis of the case Institution based view The leading perspective in international business suggests that ● Firms’ performance is determined by the institutional frameworks to a great extent. Institutional transitions ● Fundamental and comprehensive change introduced to the rules of......

Words: 1532 - Pages: 7

Volkswagen

...First I want to show you some car brands. Volkswagen,the best-selling car brand in Europe.Audi, the world’s third largest luxury car brand after Mercedes-Benz and BMW. Scania, the sweden commercial vehicle producer, Skoda, the famous automobil manufacturer based in the Czech Republic, and SEAT, the biggest Spain car maker. Then the ultra-high performance car brand Lamborghini ,Porsche and Bugatti. And last ,British ultra-luxury car brand Bentley. All these brands have one thing in common, they are all owned by the Volkswagen group of Germany. * The Volkswagen Group strengthened its position as the top motorcar manufacturer in Europe in 2009 by increasing its market share by half a percent to 21.1%. * Volkswagen group also is the third largest car maker in world just behind Toyota and General Motors.But unlike Toyota is struggling from its brand crisis and GM struggling from bankruptcy,Vw’s performance is relatively strong during this economic crisis. * Headquartered in Wolfsburg, Germany * Total employee  370,000  * In 2009, Volkswagen Group sold 6.31 million vehicles, claiming over 11% of the world passenger car market SWOT –strenths Successful mutilple brand strategy The Group is made up of nine brands from seven European countries: Volkswagen, Audi, SEAT, Škoda, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini and Scania.  Each brand has its own distinct brand identity and operates as an independent entity on the market. The......

Words: 789 - Pages: 4

Volkswagen Assignment

...Exercise 1 Volkswagen Supervisory Board German Company Volkswagen, Europe’s largest carmaker had a supervisory board. Institutional investors demanded that the chairman of the supervisory board, Herr Piech resign because of alleged conflict of interest. They claimed that Herr Piech and his family held significant shares in Porsche, which held a near 20% stake in Volkswagen. German’s voluntary corporate governance code states that conflict of interest should result in the termination of a supervisory board member’s mandate. Herr Piech claimed that the conflict would be managed by him leaving the room whenever any Porsche related matter was discussed. Some American institutional investors called this naïve. Herr Piech was strongly supported by the ten employee representatives on the 20 strong board. Discussion questions: 1. Many boards require directors who declare a conflict of interest to leave the room when the relevant issue is discussed. What is your opinion of this practice? Is it naive as some investors in this case claimed? 2. Given that Herr Piech was strongly supported by all ten employee representatives on the supervisory board, do the shareholder representatives on that board have grounds for complaint? Corporate Governance, Tricker P. 2012, 2nd Edition, Oxford Press, London Deadline: 12 & 14 March 2016 Interesting reading: Porsche: The Hedge Fund that also made cars......

Words: 546 - Pages: 3

Volkswagen

...Volkswagen of America: Managing IT priorities Volkswagen, as the name suggests means “people’s car” and defines its objectives to design and manufacture cars which are fuel efficient and affordable. With continuous improvement, Volkswagen has not only subjugated the automotive market with respect to its low priced cars, but also earned industry acknowledgement. The core competency of Volkswagen is structured to build customer loyalty. Although, Volkswagen suffered from erratic sales pattern when the company introduced a new model commonly called as the “Himalayas chart” due to its rise and falls (Austin, 2007).This was because of the management not dealing with situations proactively. This problem was mitigated soon through its competencies in strategizing and manufacturing potentials as well as the expansion of its product diversification, i.e. the establishment of new brands which were the “classic” and the Audi brand group so that the focus is not just on the traditional mid-sized vehicles of a particular segment. Moreover, given the high quality of cars they manufacture, good service, focussed marketing and well-organized stock rotation gives Volkswagen a competitive edge over the other automobile manufactures. The highlight of this case study is to analyse Volkswagen’s business and IT strategies and the importance of process prioritization in executing and aligning these strategies with enterprise goals. With more in-depth analysis of the case, the major challenge faced......

Words: 1268 - Pages: 6

Volkswagen

...The Volkswagen Group with its headquarters in Wolfsburg is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. In 2011, the Group increased the number of vehicles delivered to customers to 8.265 million (2010: 7.203 million), corresponding to a 12.3 percent share of the world passenger car market. In Western Europe over one in five new cars (23.0 percent) comes from the Volkswagen Group. Group sales revenue in 2011 totalled €159 billion (2010: €126.9 billion). Profit after tax in the 2011 financial year amounted to €15.8 billion (2010: €7.2 billion). The Group is made up of ten brands* from seven European countries: Volkswagen, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Volkswagen Commercial Vehicles, Scania and MAN. Each brand has its own character and operates as an independent entity on the market. The product spectrum extends from low-consumption small cars to luxury class vehicles. In the commercial vehicle sector, the product offering ranges from pick-ups to buses and heavy trucks. The Volkswagen Group is also active in other fields of business, manufacturing large-bore diesel engines for marine and stationary applications (turnkey power plants), turbochargers, turbo-machinery (steam and gas turbines), compressors and chemical reactors, and also producing vehicle transmissions, special gear units for wind turbines, slide bearings and couplings as well as testing systems for the mobility sector. The Group operates......

Words: 1907 - Pages: 8