AN ECLECTIC THEORY OF THE CHOICE OF INTERNATIONAL ENTRY MODE

Business and Society
Risk management analysis of Volkswagen Group AG

Introduction
This paper aims at identifying the main issues Volkswagen AG faces and offering a few possible solutions to overcoming them. To do so, we first probe the strengths and weaknesses of the automakers as well as the possible opportunities that lie ahead. Then, we identify the greatest threats faced by the corporation. We continue by offering a set of recommendations that aim to exploit opportunities and to neutralize threats. In order to assess the modifications of the corporation’s risk management and social responsibilities that our recommendations would bring, we first gather data on the current policies concerning these two domains. Finally, we come up with three propositions, regarding the adaptation to a changing competitive landscape and the needs to address environmental changes and issues. Indeed, the corporation needs to live up to its sustainability goals and to the strategic and societal needs for the investment in developing the next generation of non-oil based cars.

Analyzing the organization
Nowadays, Volkswagen AG is one of the largest automakers in the world, preceded only by Toyota and General Motor (World Ranking of Manufacturers, 2012). During the last decade, the German group saw the saling gap with two front-runner decrease. In 2011, the brands in which Volkswagen
AG owned a controlling vote out-sold the ones owned by General Motor (GM is World 's Largest
Automaker in 2011 but VW Group Says Not so Fast, 2012). Volkswagen AG’s next currently aims to grow larger than Toyota by 2018. We identified two core competencies that allowed Volkswagen AG to grow as large: its capacity to successfully adapt its products to local tastes and its capacity to constantly innovate.
Strengths
One of the key factor of this success is Volkswagen AG’s ability to implement an efficient, largely multidomestic strategy. Not only does the group tailor its

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