Volkswagen Operation Management

To the contrary, it became an all-time bestselling car with the help of its innovative engineers and designers. Volkswagen Beetle outdid Henry Ford’s Model-T2 and it became the best car. This was facilitated by its sheers quality together with its reliability, distinct feel and look, affordability and economy felt like a Beetle. Through “Think Small” advertisement campaign the car made huge sales in the United States and was the best selling foreign-made car in the 60’s in the U. S3. VW group identifies differentiation as one of its major market strategies. This entails putting the company on top of other manufacturing companies with its increased customer satisfaction resulting from good service delivery8. This has been done by providing new designs, quality products, improving and expanding services that surpass other automobile manufacturers.

VW group hence looks at a quality strategy that is a compartment of differentiation strategy to outstand its competitors. Nevertheless, with the current rise players in this industry, VW group has put this into consideration in its strategy and implementation due to the efforts required to maintain market share, keep customers coming back, maintain revenue and reduce costs. In the development of business strategy, organizations should address key strategy elements that influence the long-term performance10. Such elements include; competitive contact, strategy reaches, management practices in addition to business relationship and managing resources. Corporate strategy reach involves the definition of corporate vision, mission, goals, and objectives. Opportunities, strengths, threats, and weakness are to be considered in the component. This definition enables the implementation of the strategy and ensures that trade units are well incorporated for easy firm management.

Though it has its operations across the globe, the firms’ main market is in Europe. The second largest market for VW is in China, where VW group China is the largest venture automaker. The DHL supply chain offers a great part of the in-plant logistics for VW assembly plant in Slovakia. This accrues up to 50% of production materials produced by VW group. It comprises of windscreens, gearboxes, and engines for the Audi Q7, Volkswagen, Porsche Cayenne, and Touareg14. S. , vehicles for sale are at first conveyed to any of the five seaports that are used as distribution centers. In the five ports, their facilities that are referred to as processing centers where all vehicles have to pass through for numerous qualities control checks and handling.

From here they are transited to dealers at various market destinations by means of either truck or rail transportation. The company thus focuses on advancing the flow of cars from the plants to the dealers with regard to customer service and cost18. Considering that railroad transport is much cheaper compared to trucks, a cost-effective plan will look much into distribution centers20. The best solution is estimated at over $20 million annual saving related to transportation costs. On the other end, the distance between existing processing plants estimates at $6 million annually to an optimal solution. The projection shows that fixing the cost of installing as well as operating pool facilitates are not significant compared to saving resulting from an enhance transportation21. The results illustrate that using decentralized distribution criteria would effectively attain the new performance concept.

Volkswagen Company should dedicate more efforts towards marketing their luxury brands such as Porsche, Bugatti, and Lamborghini to the market they already hold. Volkswagen holds the advantage to the increase in a number of clients in American market demanding for high-end cars demonstrates an opportunity for the company. Being the second largest car manufacturing company globally, Volkswagen has the capacity and resources to generate a number of cars. Moreover, the company has 15 brands offering the American clients’ opportunity to choose their favorite based on either performance, cost-effective, or safety certified among others. Weakness-Opportunity strategy entails matching focusing on enhancing internal flaw by utilizing external opportunities. Nonetheless, this is a challenge by the change in the market towards improved technology and self-driving vehicles.

Corporations such as Navya, Delphi, and Tesla are constantly coming up with prototypes of different vehicles to replace human drivers on the road26. Encounters such as construction zones, tunnels, pedestrians, and merging that proved to be a limitation of previous efforts at self-driving vehicles are now simply fitted with sensor technology, camera, and enhanced GPS. Volkswagen Company requires investing more resources in order to outweigh its competitors on self-driving vehicles. It would be beneficial to exploit the currently expanded R&D department to alleviate the challenge of being left behind. Their operational strategy entails, involving all the stakeholders, having a rigorous recruitment and ensuring that they use the locally available resource. Additionally, VW has ensured sustainability by cutting the cost of production as well as having an effective supply management team.

Generally, the company has been such successive and profit by ensuring that they have in place the best operational strategy and making them the firms’ culture. Works Cited. Abdulrahman, Muhammad Dan-Asabe, Nachiappan Subramanian, Chang Liu, and Chengqi Shu. " Human Resource Development International10, no. Dyson, Robert G. "Strategic development and SWOT analysis at the University of Warwick. " European journal of operational research 152, no. 3 (2004): 631-640 Elson, Charles M.  Modern Man: The Life of Le Corbusier, Architect of Tomorrow. Houghton Mifflin Harcourt, 2014. Flint, Anthony.  Modern Man: The Life of Le Corbusier, Architect of Tomorrow. Houghton Mifflin Harcourt, 2014.  The life of the automobile: the complete history of the motor car. Macmillan, 2014. Pavlínek, Petr, Ricardo Aláez-Aller, Carlos Gil-Canaleta, and Miren Ullibarri-Arce.  Foreign Direct Investment and the development of the automotive industry in Eastern and Southern Europe.