Business and Society

Risikomanagement analysis

of Volkswagen Group AG


This newspaper aims at figuring out the main problems Volkswagen AG faces and offering a number of possible approaches to overcoming all of them. To do so, we first ubung the strengths and weaknesses in the automakers and also the possible options that rest ahead. Then, we recognize the greatest threats faced by the corporation. All of us continue by offering a set of suggestions that try to exploit options and to counteract threats. To be able to assess the alterations of the corporation's risk management and social responsibilities that our tips would deliver, we initially gather info on the current policies regarding these two websites. Finally, we come up with 3 propositions, about the adaptation to a changing competitive landscape and the needs to address environmental alterations and issues. Indeed, the corporation needs to live up to its sustainability goals also to the strategic and societal needs pertaining to the purchase in producing the next generation of non-oil structured cars.

Inspecting the organization

Today, Volkswagen AG is one of the largest automakers on the globe, preceded just by Toyota and Standard Motor (World Ranking of Manufacturers, 2012). During the last decade, the German born group found the saling gap with two front-runner decrease. This summer, the brands in which Volkswagen AG owned or operated a handling vote out-sold the ones held by Basic Motor (GM is World's Largest Automaker in 2011 yet VW Group Says Less than Fast, 2012). Volkswagen AG's next presently aims to increase larger than Toyota by 2018. We determined two primary competencies that allowed Vw AG to grow because large: their capacity to successfully adapt its products to neighborhood tastes as well as its capacity to frequently innovate.

Strong points

One of the key factor of this success is Vw AG's capability to implement an effective, largely multidomestic strategy. Besides the group tailor usana products to the local tastes, but also decentralized and existing its development plans throughout the world (Volkswagen group, 2013). For example , the Vw Passat, which is one of the group's flagship car, see both its design and its strength properties variate depending on the market where it is going to be sold in. Besides having different add-ons like the radiator grill, the tire software and the tail lamps, the American variation of the Passat is also even more spacious plus more expensive than the American type, as illustrated on the Number 1 (Meiner, 2014). Though mainly multidomestic, Volkswagen AKTIENGESELLSCHAFT also places an feature on developing strong expertise transfer regimens within and across its brands, providing an bit of transnational character for the brand's approach (Volkswagen group, 2013ii).

Number 1: Example of the main design big difference between the Passat model in america and in China, highlighting Volkswagen AG's multidomestic strategy (Volkswagen group, 2013iii).

Business and Society || Risk Management evaluation of Volkswagen AG ||2

Besides being able to simultaneously react to different customer's needs, Volkswagen AG benefits on distinct level as a result of its multidomestic strategy. On the one hand, the group minimizes the tariffs it is well worth your time on the product by producing locally. This component is especially necessary for the China market, in which the tariff can be as high as 200% of the unique price (Why foreign cars are expensive in China, 2012). Producing locally therefore permits Volkswagen AKTIENGESELLSCHAFT to sell for a price that brands which experts claim not produce locally are not able to compete with. On the other hand, running the operations regionally allows these to reduce the money risks, therefore minimizing the exposure to losses due to the speculation on values.

Within the value-chain, Volkswagen AG excels in R& D as well as in production. Although the German born group works the procedures all over the chain, these kinds of activities would be the group's centre of expertise (Schmid, 2007)....

References: Bleakney, P. (2013). Comparison Test: 2013 Toyota Prius V crossbreed vs 2014 VW The game of golf Wagon TDI

Clean Diesel powered

CCN Money (2012). Volkswagen Das Vehicle Giant. Contacted on: January 15, 2014. Retrieved coming from:

China's 2014 auto sales might rise 10% (2014, January 11). China and tiawan Daily. Consulted on January 15


Cremer, A., & Schwartz, J. (2013, January 25). Volkswagen might enter cheap market with Chinabuilt car. Reuters. Consulted on January 15 2014. Retrieved from:

CSR Volkswagen (2014). CSR projects. Consulted about: January 13, 2014. Recovered from:

R_worldwide. html

European Federation for Transfer and Environment (2013)

upon: January 13, 2014. Retrieved from:

January 13, 2014. Gathered from:

GM is World is actually Largest Automaker in 2011 although VW Group Says Not so Fast (2012)

Consulted in: January 15, 2014. Gathered from:

Greenpeace (June 2011)

Griffiths, R. (2011). Response from Volkswagen UK. Consulted on: January 13, 2014. Gathered from:

Japanese automakers ' product sales in China and tiawan surge in November (2014). Consulted upon: January 10, 2014.

Kopp, R. and Richter, E. (2007). Business Social Responsibility at Volkswagen Group. From:

Zimmerli, T. C., Richter, K

Lieberman, M. and Montgomery, G. (1988). First-mover advantages, Proper Management Log,

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Meiners, J (2014). European and U. T. 2011 Vw Jetta: Right after. Consulted in January

of sixteen 2014

Risk Report (2014). Risk Survey of Volkswagen Group AKTIENGESELLSCHAFT. Consulted about: January 12-15, 2014.

January 13, 2014. Retrieved via:

Schmid, S

Market. Consulted on: January 15, 2014. Retrieved from:

The world 's top 95 non-financial TNCs. United Nations Convention on Trade and Development, 2013


Tulder, vehicle, R. (2014). Business and Society [lecture slides]. Erasmus University or college, Rotterdam.

Consulted on January 15, 2014. Retrieved via:


Universidad sobre las AmГ©ricas Puebla, ColecciГіn de Hipotesis Digitale (2012)

Consulted about: January 15, 2014. Gathered from:

Volkswagen group (2013). Production plants. Consulted on January 15, 2014. Retrieved coming from:

Organization and Society || Risikomanagement analysis of Volkswagen AG ||13

Vw group (2013ii)

up_honors_best_apprentices. html code

Volkswagen group (2013iii)

VOLKS WAGEN 's rise to global No . one particular remains evasive as U. S. sales disappoint (2013, October 23). Automotive


Why foreign vehicles are expensive in China (2012)

Universe Ranking of manufacturers (2012)

15 Volkswagen Long term Concept Cars-VW Innovation And Engineering Superiority (2013)

in January 15, 2014. Recovered from:

Business and Society || Risk Management examination of Vw AG ||14

but also the total brand sales elevated in the last years (CCN Money, 2012).


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