Business Plan of Audi

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This strategic business plan focuses on the Audi Group and which strategies it should pursue to realize its growth objectives in the automotive industry. First of all, the company´s business, mission and vision are introduced. A market overview is given and Audi´s current market position is analysed. Furthermore, a SWOT analysis is made which serves to make assumptions about Audi´s future performance and objectives are formulated. Last, resource requirements and budgets are laid out in order to understand the financial considerations behind the formulated strategies. The report will end with a short conclusion. It is important to note that only secondary data, e.g. the Internet was used to write this report.

I. Company Presentation

A. Overview

Audi is a German company headquartered in Ingolstadt, which produces and designs automobiles. Due to the fact that the company owns the two brands Audi and Lamborghini, it is active in the premium and supercar segments. Audi is currently employing 59,513 people. (Datamonitor, 2010)

B. Brand Essence and Values
Audi´s philosophy and ambition is to develop pioneering automotive concepts, which fulfill their customers’ high expectations. This philosophy is captured in the brand essence “Vorsprung durch Technik” which includes the brand values sportiness, sophistication and progressiveness. (Audi AG, 2011) Facts and Figures

In FY 2010, Audi had an operating profit of EUR 3,340 million and an operating return on sales of 9.4 percent. Compared with the industry average, the Audi Group was one of the most profitable businesses in the automotive industry worldwide. In FY 2010, the Audi brand increased its vehicle deliveries in over 80 markets with 1,092,411 vehicles sold. The table below shows the sales of Audi vehicles by region. (Audi AG, 2011)

C. Business Description
Audi is a 99.55% owned subsidiary of Volkswagen AG, Wolfsburg, Germany. The company operates through production locations in Germany, China, Italy, Hungary and Belgium and owns the six major brands: Audi, Lamborghini, Volkswagen, SEAT, Skoda and Bentley. The company´s cars are produced and sold globally through a network of subsidiaries and collaborations. The table below indicates which car models are produced and sold by Audi and its subsidiaries. (Datamonitor, 2010)

Company/location| Car Models/activities|
Audi Ingolstadt (Germany)| Production of A3, A3 Sportback, A4 car line, A5 Sportback, A5 Coupe, Audi Q5, A3 Cabriolet (body), TT series| Audi Neckarsulm (Germany)| Production of A4 Sedan, A5 Cabriolet, A6 car line, A8 luxury, S5 Cabriolet, S6 Sedan, S6 Avant, S8 and A8 W12. | Quattro - wholly owned subsidiary of Audi (Neckarsulm , Germany)| Production of RS 6 Sedan, RS 6 Avant, Audi Q7 V12 TDI quattro, and Audi R8 mid-engine sports car| Audi Brussels (Belgium)| Production of Audi A3, VW Polo|

Audi Hungaria Motor company | Developing and building engines for Audi, as well as other Volkswagen Group companies and for third-party companies in Gyor (Hungary)| Automobili Lamborghini (Sant’Agata Bolognese, Northern Italy)| Building of Lamborghini Gallardo and Lamborghini Murcielago| sales subsidiaries Volkswagen Group Italia, Audi Volkswagen Korea (Seoul, South Korea) and Audi Volkswagen Middle East FZE (Dubai, United Arab Emirates)| Sales of the Bentley, SEAT, Skoda, VW Passenger Car and VW Commercial Vehicle brands|

D. Corporate Strategy
Audi´s priority strategic corporate goal is a qualitative and profitable growth (Strategy 2020). Audi is trying to achieve this goal through effective and efficient structures and processes, an ongoing optimization of costs and systematic investment management. The company´s aim is also to cover investment from self-generated cash flow because they favor a high level of self-financing to preserve the Audi Group’s ability to invest and act. In addition, Audi prefers to have an attractive product range and to...
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