For the Assignment, you will apply what you have learned concerning
organizational structure and conduct research on Volkswagen (VW). You will
respond to the three (3) questions listed below the Assignment instructions in
an APA formatted 2–3 page paper .
If one were to chart the growth spurts of Volkswagen over the past three decades,
the chart would look like a roller coaster. Plans were for former BMW boss Bernd
Pischetsrieder to fix ailing VW when he came aboard in 2002. However, best-laid
plans often go astray. VW’s share price is down almost 50% and profits fell by
36%. What is wrong at VW? First, VW has always been able to charge more for its
cars because of quality, innovation, styling, and an implied lifetime guarantee.
In recent years, however, consumers have decided that the company is going to
have to come up with more value for the dollar if loyalty is to be retained.
Second, sales in China’s booming market (VW was one of the first car makers on
the scene in this giant economy) have plummeted and GM has driven VW from its
number one ranking. Third, cost-cutting moves have not worked. Fourth, VW
uncharacteristically has labor pains. The CEO has had little luck in reversing
these problems because his consensus management techniques are having little
impact on VW’s change-resistant bureaucracy. Over half of the company’s 100
managers are not used to making their own decisions. This spells even more
trouble for the company in the year ahead.
- Using a search engine of your own choosing, investigate Volkswagen’s
performance over the past two years. Write a brief summary of their fortunes
- Visit the Volkswagen Web site at www.vw.com. From information supplied,
characterize the company’s existing structure.
- Based on what you have observed in “1” and “2” above; suggest a new
organizational structure for the company. Cite any assumptions that you made
when you developed your structure.
Robbins, S. P., & Judge, T. A. (2013). Organizational behavior
(15th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.