Vw Do Brasil

In: Business and Management

Submitted By khaledakida
Words 1771
Pages 8
VW Do Brasil
Report by Khaled Akida – BU671
Word Count: 1749

For Case Discussion 1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil in 2007 (VWB)?
Since 1999 till 1007, VWB faced market share decline and financial losses. Schmall and his management team started introducing balanced scorecard to monitor and analyzed the root cause of those problems: that was a big challenge as Schmall wanted the tool to be VWB primary management tool, and this needed to restructure part of the organization chart to accommodate new leads and task force for this project. The task force main focus was to come up with a strategy map based on finance, internal process, customer, and potential and growth. On the other hand, consumers purchase of VW products slow downed, and this lead the company to respond quickly by cutting back production and lowering spending. This action could also create more problems, as further cuts in production and lower investment would put market share expansion and new product development in danger. Other challenges were the entry of many multinational car manufacturers into the Brazilian market. The market share of VW was heavily affected among other competitors, but Shmall was still optimistic of seeing more growth in the country market. The cost cutting action of the company makes it thinking of ways of reeducating its managers on how to spend wisely their budget, how to improve their processes and how to innovate new products at reasonable costs.

2. Describe VWB’s strategy?
The VWAG based on the financial number see VWB as its third largest system, behind China and Germany. VWB has four plants with 7.04 Billion Euros of revenue and employs 22,000 people. It main manufacturing focus is on small and medium size cars, offers 22 different models with 9 newly prototype designed in Sao Paulo Plant. The Strategic…...

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