Managing the International Value Chain in the Automotive Industry

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Managing the International Value Chain in the Automotive Industry Strategy, Structure, and Culture
Stefan Schmid, Philipp Grosche

Table of contents

Foreword Authors Acknowledgments International value chains: Current trends and future needs, as exemplified by the automotive industry 1. Internationalizationofthevaluechainintheautomotiveindustry 2. Configurationandcoordinationascrucialdimensionsinshapinginternational  valuechains 3. Bestpracticesandoptionsformanagingtheinternationalvaluechain Glocal value creation in the Volkswagen Group: Moving toward greater decentralization of production and development 1. TheVolkswagenGroup’snewglobalstrategy 2. TheconfigurationofproductionactivitieswithintheVolkswagenGroup 3. TheconfigurationofR&DactivitieswithintheVolkswagenGroup 4. Theconsequencesofdecentralizingvalueactivities Speaking with Ralf Kalmbach, Roland Berger “Thecoordinationofinternationalvalueactivitiesisacrucialfactorinachievingsuccess.” Decentralized centralization: Romania as a focus of value creation for Renault’s Logan 1. TheRenaultGroupasaleaderinthelow-costcarsector 2. TheconfigurationofvalueactivitiesfortheLogan 3. Thecompetitiveadvantagesofferedbyemergingmarkets 4

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Speaking with Coimbatore K. Prahalad, Ross School of Business, University of Michigan “Wearemovingawayfromafirm-andproduct-centricviewofvaluetoanetworkcentricandco-createdviewofvalue.” From assembly plant to center of excellence: The rise of Audi’s subsidiary in Györ, Hungary 1. EstablishingAudiHungariaasasubsidiaryofAudiAG 2. DevelopingAudiHungariaasacenterofexcellencewithintheVolkswagenGroup 3. Challengesinmanagingcentersofexcellence Speaking with Matthias Wissmann, President of the VDA “Productionsitesinforeigncountriesandgrowthathome,withstableorevenhigher  employment,arenotmutuallyexclusive.Indeed,theyarebothessentialforsuccessful  growth.” Global networks and decentralized configuration strategies: Strategic, structural, and cultural implications 1. Restructuringinternationalvaluecreation 2. Necessarychangesinthemanagementofinternationalcompanies Glossary Projectpublications Publishinginformation

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Foreword
The need for leadership in international value creation

Theever-changingglobalnetworkofeconomic tiescallsforanewapproachtoleadership– one  thatrequiresbothmanagementandpersonnel toshowgreaterabilitytocooperate.Ifcompanieshopetomeetthechallengesofinternational competition,theyneedtorecognizeandseize theopportunitiesofferedbytheglobaleconomic system.However,thecompetitivepositionofan internationallyactivecompanyisnotdetermined MartinSpilker Program director

Thechangesthathavetakenplaceinoperations, production,communicationsanddecisionmakingareparticularlyevidentintheautomotive industry.Thereisnosuchthingasa“worldcar”; particularlyinthemassmarket,manufacturers needtoadapttheirproductstosuiteachindividualcountry.Thisisnotanewinsight.Butso farcompanieshavehadlittlesuccessinfinding therightbalancebetweencentralizationand decentralization,betweencuttingcoststhrough standardizationandtakingadvantageofgreater marketpotentialbyadaptingtheirproductsto localneeds. Thecompetitivepositionofautomobilemanufacturersisofenormousconsequenceforthe economy.InGermany,onejobinsevenis dependentontheautomotiveindustry;inthe UnitedStatesitisoneinten,andthisindustry isbecomingincreasinglycrucialintheemergingeconomiesaswell.IndiaandChinaarewell ontheirwaytobecomingleadingcentersof...
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