Globalizing Volkswagen: Creating Excellence on All Fronts Harvard Case Solution & Analysis

Beetle did Volkswagen (VW) a household name all over the world for over 50 years. But in the early 1990s, VW Group, with its Audi, Seat, Skoda and brands, was in poor condition: the high cost base, costly duplication between different brands of cars, and a weak lineup led profit to decline by 85% in 1992 . At the moment, Ferdinand Piech, CEO of Audi, was invited to take the post of General Director of VW. The company ended 1993 with a loss of almost one billion Eurodollars. In 2001, net profit rose to a record 2.9 billion Eurodollars. Between 1993 and 2001, sales increased from 39.1 billion to 88.5 billion Eurodollars, with international sales increased from 55% to 72%. Turn makes the VW Group included Audi premium brand, saving space on the edge of bankruptcy, and the conversion Skoda Auto from cheap Eastern European carmaker respected player. According to Business Week, VW was "one of the best companies in the world car." Describes the transition from 1993 to 2001. Takes readers through the successful implementation of the VW production system platform, its globalization strategy, moving upmarket, and many innovations in the business. "Hide
by Z. January Kubes, George Radler Source: IMD 35 pages. Publication Date: January 1, 2002. Prod. #: IMD141-PDF-ENG

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