The Volkswagen Group is one of the leading car manufacturers in the world. To be one of the biggest requires a large set of employees you can rely on. That is why this company's Human Resources have several methods of attracting and maintaining their workforce. One of them includes employee development. They develop every employee to their highest potential.
One article also says that ''[they cannot] do without the special competence and creativity of women'' (Development Paths). Therefore specific advancement in female talent is included in their development strategies. This method is effective since the company keeps employees who already have some knowledge on the job and push them to their highest potential. The employees feel important to the business hence giving them a sense of motivation. Secondly, the Volkswagen Group offer great working conditions and ''secure jobs for the long term'' (Working and Living).
They offer job security, equal opportunities, ''some factories even offer special child care facilities''(Work/Life Balance) to make life easier for parents. This is surely effective since it is a safe environment for employees and is almost guaranteed to be a long term job. Finally, Volkswagen offers a variety of different part-time jobs for employees looking for a better work and life balance. This is definitely effective because as mentioned, employees will be able to find a schedule that will satisfy their work and life balance.
Volkswagen, unlike most if not all other car manufacturers, are beginning to manufacture their products themselves. ''Anytime a car company buys a component from a supplier, that supplier has to charge a profit. If an automaker can make those components in-house, it gets to keep that profit''(How Volkswagen is run like no other car company), and that is exactly what the Volkswagen Group is doing.
This method is advantageous because as mentioned they keep profit and scratch off and additional cost. It generates more revenue to the company. Furthermore, the company can be more certain about the quality of their product since they fabricate it themselves. The only disadvantage I can think of is that they need to take time to hire more employees, purchase more equipment and replace broken equipment. Therefore in my opinion they chose this type of manufacturing since it brings more profit in the long run.
Volkswagen intends to export their products worldwide to satisfy the constantly growing demand of cars today. To fulfil successfully this demand, they have several manufactories where they assemble the cars. There is at least one of these factories on each continent to minimize the importation cost. However, they import certain pieces that are made by another company, to the factory and then produce the car itself by putting together all the pieces. In other words, this is a use of foreign outsourcing in order to maximize their profits.
Then they export the cars from the factory to all the retailers of the continent depending on orders. Once the cars are at the dealers, they are finally ready to get sold and used by the consumers(Volkswagen International). Moreover, Volkswagen use foreign franchising to expand their international marketing. They offer anyone, under certain conditions to open their own Volkswagen car dealership all around the world. In other words, “They offer the right to market their products if the franchisee agrees to specific operating requirements – a complete package of how to business” (Kelly 250).
For my own opinion, I believe that the firm is doing exactly the right thing to maximize their sales and also to get known worldwide. Advantages include Volkswagen being widely renown and at the same time, increasing the sales massively. On the other hand, way to marketing their products makes it a lot more difficult to manage the whole company's activity. It can be very expensive also if sales do not meet the expectation. There is a lot to gain, but much more to lose. But, it is definitely a risk to take.
The biggest socio-cultural challenge that Volkswagen has to cope with is to successfully enter the market of Asia. Indeed, the vast majority of the people out there buy Asian cars such as Toyota, Suzuki, Honda and many more brands mainly because they represent the local manufacturers. In order to counter this problem, the firm tries to promote and advertise all over the continent to convince the people that Volkswagen is very close and really cares about its clientele.
Gradually, they will be able to regain the market and also gain notoriety in the automobile sector. Another challenge they must face is to convince people that diesel powered vehicles may be more expensive, but totally worth it. Indeed, Volkswagen's crew works very hard to demonstrate that people can save a lot of money on diesel gasoline instead of buying regular gasoline, even if the car itself costs a little more than a regular car. This problem does not apply all around the world. In fact, in Europe, diesel cars are commonly used. However, in the United States, people are very reluctant towards diesel vehicles and have tendencies to choose other brands than Volkswagen only because of this factor.
In opposition to that, they try to give a better image to these cars in order to gradually gain more market. The last challenge that Volkswagen must face is to meet the environmental requirements of the many different countries. In fact, the group has put the environment as a priority and believe that it is a major factor to success. Each year, they re-evaluate the impact they have on the planet and always try to improve it. " Using this data, they then analyse the areas that can be improved. In 2009, the key environmental issues were caused by power consumption and emissions generated by production and transportation.
That is why the Pamplona plant has decided that 2010 is the year to reduce power consumption and emissions even further. This scheme was laid out in the 2010 environmental program, which includes all the general objectives and relevant specific initiatives." (Saving energy and cutting emissions). In other words, they must reach these standards in order to keep their right to sell their products. This is why this is a very crucial political or legal challenge they must face with success.
Works Cited •''Development Paths''. Volkswagen. . •Kelly, McGowen, MacKenzie, and Kim Snow. "BUSN". pg 250. 2012 •McElroy, John. "How Volkswagen is run like no other car company". . 2012. •"Saving energy and cutting emissions". Volkswagen.
•"Working and Living". Volkswagen. . •" Work/Life Balance". Volkswagen. .