Volkswagen

Topics: Volkswagen Group, Volkswagen, Balanced scorecard, Volkswagen do Brasil, Brazil / Pages: 5 (740 words) / Published: May 9th, 2015
Volkswagen do Brasil
Presented To : Dr . Khaled Hegazy
Presented By: Mona Abdallah
Student ID : 131239

Agenda
• Company background
• Country

• Volkswagen do Brasil
• Challenges Thomas Schmall faceed upon becoming CEO of Volkswagen do Brasil (VWB)
• VWB’s new strategy
• Role of strategy map and Balanced Scorecard in the new strategy. • Strengths and weaknesses of the scorecard
• Using the scorecard to deal with the challenges faced by the company in January 2009

Volkswagen background
370 000 Employees world wide
61 Production facility
Across 21 countries
6.3 M Vehicles across 10 brands

10.3% Market Share
113 Billion Revenue

Brazil
Fifth largest land area and population
World ninth largest economy
Recently is the largest and most diversified economy in Latin America

Volkswagen do Brasil
• VWB was the third largest in the VWAG system behind China and Germany
• Operated four plants
• Employed about 22000 employees
• Produced revenues of 7.04 billion
• Focused on small and medium sized vehicles and offered 22 different models • Had the most complete portfolio within Brazilian market.

Challenges Thomas Schmall faced upon becoming CEO of
Volkswagen do Brasil (VWB):
External problems
Vast decrease in domestic market

Internal problems
Suppliers and dealers efficiency

Failure to stick to export –led strategy as a result of the appreciation of the Brazilian currency relative to the dollar and euro , plus the increase in the local labor and raw materials costs

Culture and strategic change, Changing the mindset of employees

VWB couldn’t increase prices on shipped products due to tough competition in the automotive world-wide because of this company’s excess capacity costs wouldn’t be covered by insufficient export margins.

Inefficient processes on the shop-floor and administration i.e employees commitment and satisfaction i.e reliance on cost reduction, employees layoff and capacity downsizing.

VWB’s new strategy
The main aim of VWB new strategy is to

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