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Volkwagen- Case Report

Sukhwinder Singh, 1814323

Reju Roy,

Ripandeep Kaur,

Elham,

University Canada West

CMPT 641: IT for Managers.

Samuel Li

May 22, 2020.

SWOT Analysis of Volkswagen

SWOT analysis is a tool that could help the managers of Volkswagen to understand the environment and current situation of the company. With the use of this technique the managers of the company could easily find out the solutions to figure out the key issues and also how to mitigate those problems and issues. Therefore, as per the current situation and this case the strengths, weaknesses, opportunities and threats of the company are as follows,

Strengths of the Company

Being key player of the automobile industry, Volkswagen has some critical strengths that helps the company to prosper the market and earn the high rate of revenue for the company. The numerous strengths that makes the company to follow the strategic pathway are,

· Free Cash Flow. Volkswagen has the very strong cash flow which is not bounded to any limitations. It avail the resources for the expansion of the projects and also introduce the new projects.

· Business Portfolio. Volkswagen is that one company who owns twelve famous car brands, which includes both the luxurious car brands and normal passenger car brands. Since, the company has started it has been regularly investing in buying and build the huge business (brand) portfolio. This strong portfolio enables the easy expansion of new product huge market share for the company, which makes this internal attribute a key strength of the company (Fern Fort University, n.d.).

· Huge volume of Car Sales.

· Strong Financial Position.

· Strong Network of Dealers and Distributors.

· Features like Rear Suspension.

Weaknesses

· Weaker Research and Development Department.

· Lower Profitability Ratio

· Organizational Culture

· Less Investment for Technology Upgradation.

· Low Quality Products.

Opportunities

· Economic Growth

· Customer Behavior

· Add New Products

· Demand for Self Driven Vehicles

Threats

· Lawsuits or Legal Actions.

· Updated Technology of Rivals.

· Intense Competition.

· “Road to Zero” Initiative

PESTLE Analysis for Volkswagen

PESTLE analysis is a tool for analyzing the external environment of the company. It plays vital role in the formation of the strategy for attaining the competitive advantage and sustain the success of the company for long haul. It provides an valuable deep look of the operational challenges that the company could face. Moreover, its gives the information in advance about the risks and threats for the firm’s venture so that company could work proactively and retain the investors of the company. Also, it includes the analysis of six key attributes of the external environment that has the direct impact on the company’s operation, which are, Political, Economical, Sociological, Technological, Legal, and Environmental factors. It also helps the company to figure out the current issues and challenges that the company is facing from this external environment and also channelize the possible solution for that.

So, the PESTLE analysis for Volkswagen is as follows,

Political Factors

· Cross Nation Trade Policies.

· Threatening call of Improving Higher Taxes on Auto Imports from EU by US.

Economical Factors

· Unpredictable Economic Conditions.

· Banking and Financing Services of Host or Parent Country.

· Diversification

Social Factors

· Risk of Losing the Buyer Trust.

· Customer Behvior for the Company.

· Higher Job Opportunities.

Technological Factors

· Investment in the R&D Department

· Advanced technology of Competitors in the Industry.

· Efficiency of Manufacturing.

Legal Factors

· Laws and Regulations of the Region.

· Expected Ban on the use of Diesel Cars.

Environmental

· Carbon Foot Prints of Volkswagen.

· Trend towards the Green Products.

References

Fern Fort University. (n.d.). Volkswagen SWOT Analysis/Matrix. Fern Fort University. Retrieved on May 16, 2020, from http://fernfortuniversity.com/term-papers/swot/1433/1041-volkswagen.php