VolksWagen Term Paper Example | Topics and Well Written Essays - 2000 words

VolksWagen - Term Paper Example Volkswagen operates in more than 100 countries including Argentina, Australia, Bosnia and Herzegovina, Brazil, Canada, China, Germany, India, Mexico, Russia, South Africa, UAE, UK and USA (Volkswagen, 2013a). It has 43 plants worldwide that produce Volkswagen cars and/or components. It exports its models and sells through regional offices in countries where it does not produce. Value Chain Framework of Volkswagen Figure: Value Chain model by Michael Porter. Source: Institute for Manufacturing, n.d. Inbound Logistics. Volkswagen has developed an extensive network of local suppliers in all the countries where it operates manufacturing plants. It has its focus firmly on achieving cost efficiency, reducing time to market, regional economies of scale and flexibility in production (Volkswagen AG, 2010). Operations. Volkswagen has 43 plants worldwide that manufacture cars and/or components, as shown below. Figure: Volkswagen worldwide plants. Source: Volkswagen AG, 2013c ; Volkswagen AG, 20 13d. Outbound Logistics. The outbound logistics is handled by Volkswagen Logistics that ensures timely delivery of Volkswagen cars from the factories to the dealers. It is also responsible for international flow of all its models from all its plants by land, sea and air to all its regions. It manages 5 million vehicles per year (Ludwig, 2012). Marketing and Sales. The three key USPs on which it aims to differentiate its cars from competitors are being innovative, responsible and delivering long-lasting value. It has marketed its products as reliable, high-quality and German-engineered. It has a worldwide extensive dealer’s network that is well-integrated with a centralised department that ensures transparency in sales (Volkswagen AG, 2013e). Services. Volkswagen offers an integrated services environment by means of a global chain of after-sales service outlets, along with an active Customer Relationship Management (CRM) function that gathers market trends and implements chang es to its products and a financial service (Volkswagen Financial Service) that assists buyers opt for its products (Volkswagen AG, 2010). Procurement and Infrastructure. Volkswagen has partnered with several direct suppliers who in turn have partnered with subcontractors. It has also implemented several programs aimed at standardising quality, consistent delivery and cost-effectiveness of materials that it buys from its suppliers. (Volkswagen AG, 2013f). Human Resource and Technology. Volkswagen Group employs 549,763 talented people around the world as of 31 December, 2012. It supports the advancement of women and 15.2% of its workforce comprises of females. It also has in place a performance-rewarding mechanism that recognises excellence of employees. It engages its employees in formulation of strategies through opinion surveys that collect opinions, suggestions and feedbacks (Volkswagen AG, 2013g). Volkswagen has also taken initiatives to be more environment-friendly by reducing e nergy-consumption of its servers and air conditioners through modern technology and reducing the use of paper. It has also introduced digital factory models that reduce wastage in building an actual factory and a â€Å"Quicar† online program that encourages customers to share energy-efficient cars (Volkswagen AG, 2013h). Question 2: Where do its revenue / profits come from? Volkswagen’