Strategic Leadership for Volkswagen Company - MyAssignmenthelp.com

Question: Discuss about theStrategic Leadership for Volkswagen Company. Answer: The organization, their primary service is, where they operate, size of business and the key people The Volkswagen Company majorly deals with the manufacture and distribution of automobiles and passenger Motors(Preston, B., 2015, p.35). The companys headquarters is in Germany. The company is one of the leading manufacturers of automobiles has been reporting high profits over the years (Byron, 2016). The company operates in various 27 countries including Europe, USA, and Australia. The manufacturing company serves the whole world. The CEO of the Volkswagen group is Matthias Muller, and the managing director of the company in Australia is Michael Bartsch. The Problem from the Source The problem roots from the fact that the company during the manufacturing process, fitted some devices in the Audi and the Porsche brands that inhibited the regulating authorities from detecting the gases that the cars emitted(Balbi, A., 2015, p.9). When the consumers in the USA realized this, they raised the alarm, and the company pleaded guilty and were required to compensate the owners of the cars(Lucia, 2017). The discovery was covered by the media and the Australian Consumers also demanded compensation for the defective vehicles. Why it is a Negative The company has been dominating most of the automobile markets in the world. It has had a significant number of loyal customers that have been influenced by the good reputation the company had before the scandal(Hakim, D. and Bradsher, K., 2015, p.15). It is imperative to identify that the negative light in the media has created a bad image for the company. There are some of the customers who regret buying the company's cars. It is evident that the sales volume will decline if the companys management does not clear the air in the Australian market. The Risks it Poses to the Corporation, Size Dimension The company has a high possibility of having a permanent negative image. Also, the customer loyalty levels will tremendously decrease with the fact that the Australian consumers think that they are being treated as second-class consumers because they have not been compensated in the same way as the consumers in the USA(Lucia, 2017). The profits of the company will decrease especially in Australia where most of the customers may deviate from purchasing the companys products. The companys market share will be affected negatively. Systems Analysis of Problem The company thinks that it is not answerable to the Australian consumers. The company should thus research more on the extent of the damage that it has caused and strategize a correction approach. For instance, the company may choose first to correct the bad reputation that has been by the media to its customers(Goel, 2015, p.12). It is also important to verify the long-term impact of the negative light to the future markets. It is imperative for the system to devise other better ways of meeting regulations set by various regulators when engaging in acts that have an adverse impact on the explicit goals of the group(Whittall, A., Lucio, M., Mustchin, S., Rocha, F. and Telljohann, V., 2015, p.91). Quantitative Analysis Description of the Research The study was conducted on the social media platforms, for instance, the Twitter, Facebook and Youtube and the web forums in leading news websites that is the Reuters and the ABC news. The research was focused on attaining of information regarding the current situation that is in Australia on the fraudulent scandal associating the emission devices that it fixed on its cars. The research involved customers and ACCC representatives that were the most concerned about the issue in Australia. Description of why it was Chosen The research was necessary for the acquiring of objective information about the major concerns of the customers. Also, there was a need to find out the magnitude of the negative publicity that the scandal had cost the company. It was imperative in that it could aid in formulating of the best steps that the company could take to correct the situation in Australia. The websites and the social media as the primary sources of information were precise because they provided a platform that could be accessed by many consumers. Description the Method in Detail The method majorly involved the taking of statistics on the number of consumers that were pissed off by the company and the consumers that were still positive about the company. The other approach was to analyze the interviews that were carried out involving the ACCC representatives and the Volkswagen group representative on the issue at hand. The whole information was then summed up to come up with the overall percentage of the negative image the company has gathered and the positive comments from the target population. Description of the Results The results of the study showed that about 95% of the customers were dissatisfied by the company and especially its management. Most of the customers were of the view that the company was fraudulent and that they could not make any purchases until the situation at hand was solved promptly. The company on the other side was with the view that it was not accountable because it had not installed the devices in the Australian vehicles and thus it was not guilty of the offense. Analyze the Results against Theory and the Market It is imperative that the company should engage in corporate social responsibility due to the tarnished image of the enterprise. The reputation of the company is at stake, and so are the profits. According to the results, the company needs to engage in socially responsible activities so that it can restore its image and to promote sustainable development(Zerfass, A., Linke, A. and Rttger, U., 2014, p.63).The company, in particular, should engage in the restorative approach of CSR to be able to claim back its market share. Also, the market of the company has reduced in size, and it implies that the competition in the company will increase due to the market players aim to dominate the markets that the Volkswagen was initially serving. The results are a clear indication of what happens in the case that a company deviates from its primary intentions and leads to a contradiction through imposing harm to the society instead of promoting sustainable developments. Detailed Methodology and the Justification of the Choice The methodology includes the sources of data collection which will majorly include the websites for news such as ABC News and Reuters and the Social Media. The method of data collection will be to carry out a survey(Barth, M., Bauer, A., Hughes, E., King, A., and Koerner, H., 2017, p.34). Identification of the target population on the internet.Then a sample size will be determined due to the limited resources and time. The method will involve contacting of the respondents via the email and telephone. Information will be analyzed using probability oriented methods. The methodology will ensure that the information collected is sufficient, precise, relevant and consistent with the objectives of the research. Develop a set of strategic recommendations arising from the findings your primary research. The company should come clean with the matter by stating its position The company should disseminate information to the customers regarding the situation. It is imperative for the customers to be able to be informed in time to reduce the negative impact that is created when the customers acquire information from other sources(Tom, E., 2017, p.231).Information should be outlined through media platforms that can be accessed by most the customers. If the company does not respond to the allegations, then it will imply that it does not care about the concerns of the customers. The company should engage in corporate social responsibility Engagements in socially responsible activities that will help create a positive image for the enterprise. The stakeholders are concerned that their interests will not be achieved and thus the company needs to address this. CSR may include funding of community initiatives, planting trees and removing the alleged device on its products(Georgievski, 2016, p.34) Through the use of the various CSR approaches should engage in socially responsible approach that will entertain sustainable development. The CSR projects to be implemented should be within the companys interests and that of its stakeholders. The company should compensate the consumers that were affected For the company to fully satisfy the customers, it needs to make up for the customers for the damages that it has caused to them. The fact that most of the customers think that they are being treated as second-class consumers it is an indication that customers positive attitude towards the products is damaged and thus the company needs to give an incentive(Jung, J.C., and Park, S.B., 2017, p.27). If the USA consumers were compensated, then the company to exercise fairness should instigate right through applying the same measures to customers that have received the same damages. The company should market its products to create a positive reputation The company should engage in the marketing of its products so as to create a positive image of the products. The company can incorporate promotion activities, and public relations approaches that will instigate the customers to continue with their loyalty to the enterprise. It is relevant for the company to engage in customer relational management that will make the customer feel esteemed and honored by the Corporation. Customer care services can be promoted so that the customer's inquiries and concerns are listened to and addressed in time to reduce the impact of the negative reputation. The Future The future of the company is characterized by a lot of engagement in CSR. The company in the coming days would want to reduce the number of lawsuits against it by the consumers (SCANDAL, 2017, p.122).Have good relations with the government by engaging in activities that do not breach the law in any way(Hakim, D. and Bradsher, K., 2015, p.22). It is also considerable in the future that the company will face stiff competition in the market because the market players will be more keen on bringing the company down due to its tarnished image in the past. Presentation of the Findings The overall sales reduced The results indicate that the overall sales of the company will reduce and this is due to the tarnished image of the company. It is certain that even the USA and the Australians consumers will shy away from the products. The reduced sales will lead to losses both in the long term and the short time of the company. Most of the products of the company do not move in the store as much after the scandal was unearthed. The profits have reduced The profits that the company is reporting are down from the 21.7Billion that it was reported in the year 2016. The reduced profits are attributed to the weak sales due to the reduced customer retention and loyalty of the consumers. The reduced benefits are attached to the added costs that the company is experiencing due to the increased litigations. The company is reporting more expenses. Customers are dissatisfied Clients of the company are dissatisfied majorly as a result of being sold to faulty products. The client's dissatisfaction is high with most of the consumers swearing that they will not purchase the company's product more so those in Australia. The dissatisfaction of the customers is still spreading to other countries, and thus the company's ongoing concern is at stake. The market share has reduced The competition in the market is stiff. The litigations that are involving the company has made the company to be subject to negative light. Its target markets are now being shared by the other market players in the market like the Nissan Company(Siano, A., Vollero, A., Conte, F., and Amabile, S., 2017, p.30). Its market is now limited to the limited number of loyal customers. The customers have since shifted to other brands that are not part of the scandal allegations. Bibliography Balbi, A., 2015. Volkswagen scandal: one of the world's largest automakers has admitted to unethical decision making and is working on clarifying the" inconsistencies. Strategic Finance, 97(6), pp.9-10. Barth, M., Bauer, A., Hughes, E., King, A., and Koerner, H., 2017. Volkswagen Public Relations Plan. Byron, K.., 2016. Australia sues Volkswagen Over alleged Emission Frauds. [Online] Available at: https://www.reuters.com/article/us-volkswagen-emissions-australia-idUSKCN11634R?il=0 [Accessed 26 May 2017]. Georgievski, B.a.A.A.., 2016. The Effect of the Volkswagen Scandal (A Comparative Case Study. Goel, A.., 2015. Volkswagen: The protagonist in the Diesel Emission Scandal. Hakim, D. and Bradsher, K., 2015. After Volkswagen Revelation, Auto Emissions Tests Come Under Global Scrutiny. [Online] [Accessed 26 May 2017]. Jung, J.C., and Park, S.B., 2017. Volkswagen's Diesel Emissions Scanda. Thunderbird International Business Review, 59(1). Lucia, S.., 2017. Volkswagen Diesel Scandal: ACCC sues over Doggy emissions Claims. [Online] Available at: https://www.abc.net.au/news/2017-03-08/accc-sues-volkswagen-over-diesel-emissions-scandal/8335506 [Accessed 26 May 2017]. Preston, B., 2015. Volkswagen scandal tarnishes hard-won US reputation as green company. The Guardian, 25. SCANDAL, G.E.., 2017. CHAPTER TWELVE REPAIRING TRUST: A CASE STUDY OF THE VOLKSWAGEN GAS EMISSIONS SCANDAL JUDITH TURNBULL. The Discursive Construal of Trust in the Dynamics of Knowledge Diffusion, p.249. Siano, A., Vollero, A., Conte, F., and Amabile, S., 2017. "More than words": Expanding the taxonomy of greenwashing after the Volkswagen scandal. Journal of Business Research, 71, pp.27-37. Tom, E., 2017. Knowledge management and leadership: the carbon emissions scandal in the automobile industry. Przedsi?biorczo Mi?dzynarodowa, 3(1), pp.229-40. Whittall, A., Lucio, M., Mustchin, S., Rocha, F. and Telljohann, V., 2015. Volkswagen transnational company agreements: The meaning of international corporate regulation at work. The transnational company agreements: Experiences and prospects. Final Report, 2(17-117). Zerfass, A., Linke, A. and Rttger, U., 2014. HE CONTEXT FOR LEADERSHIP IN PUBLIC RELATIONS. Public Relations Leaders as Sensemakers: A Global Study of Leadership in Public Relations and Communication Management.