Volkswagen Essay Example | Topics and Well Written Essays - 2000 words

Volkswagen - Essay Example Furthermore, Porter’s Five Forces analysis and SWOT analysis is also conducted with regards to the internal environment of the company. In conclusion, the report proposes two specific recommendations to the Board of Directors after critically and comprehensively analyzing the strategic position of the business. It is suggested that Volkswagen take immediate measures to further enhance its position in the US which has delivered optimistic performance so far but indicates that further efforts are needed. It is also recommended that Volkswagen continue to explore emerging markets across the globe such as India while maintaining its position in China and Brazil. Table of Contents Executive Summary 2 1.Introduction 3 2.Analysis of Strategic Position 4 2.1Internal Audit 4 2.1.1Strategic Capabilities 5 2.1.2VRIN ANALYSIS 6 2.1.3Value Chain 8 2.2External Audit 9 2.2.1PESTEL Analysis 10 2.2.2The Five Forces Analysis 12 2.3SWOT Analysis 15 2.3.1TOWS Matrix 16 3.Conclusion and Recommenda tion 17 1. Introduction Volkswagen is a manufacturer of automobiles originating from Germany; its global presence as an automaker extends to various parts of the world henceforth, contributing towards its ranking as the 14th largest company in the world (Forbes 2013). Volkswagen Group’s mission is to act as a responsible business and maximize the benefits that it wishes to offer to its customers. By promoting the concepts of sustainability and social responsibility the company aims to be the leader in the automotive industry by the year 2018. In order to achieve its objective the company has designed a group strategy to enhance its positioning within the market. This strategy extends to all realms of Volkswagen Group’s operations, such as sales and human resources. The company aims to augment its sales per unit to an impressive 10 million automobiles per annum and also boost its pre-tax profit margin to 8% (Volkswagen 2011). An analysis of the company’s external and internal environment and factors is imperative to assisting goal achievement. Therefore, for the purposes of this report these factors are discussed at length in the context of Volkswagen Group. 2. Analysis of Strategic Position 2.1 Internal Audit Volkswagen believes in implementing a responsible and accountable risk management framework, in order to ensure that its future activities and business operations are not adversely impacted by unforeseeable changes in the company’s external environment (Volkswagen 2007). For the purposes of tackling with the unpredictable situation of the industry, the Group Internal Audit holds the responsibility of reviewing and evaluating the risk management measures of the organization. This process of revision is governed by auditors who conduct comprehensive interviews with the management to assess the satisfactoriness of the conclusions with regards to risk management (Volkswagen 2007). The overall internal audit of the company conforms to the KonTraG, while, specific audits are conducted by German financial regulatory agency, BaFin to evaluate the financial department of Volkswagen (Volkswagen 2007). According to the Volkswagen Annual Report (2007), with regards to the governance of procedures related to the controlling function of management all rules, regulations and procedures presiding over the activities within the company are updated online; the Group Interna