Volkswagen Skoda Strategy - Free Essay Example

COMPANY REVIEW VOLKSWAGEN PROBLEM STATEMENT Volkswagen acquired Skoda in the early 1990s and it had problems after the acquisition. The major problem was the strategy adopted in acquiring Skoda. Volkswagen was known for its quality while Skoda was known for its high level of unreliability and poor quality. There were a lot of issues as a result of the acquisition. The deal resulted in loses to Volkswagen and this paper will analyze the various strategies that can be adopted to prevent these problems. (ICMR Case studies, 2007) PROBLEM EXPLANATION In the early 1990s, Volkswagens sales in the US were less than 100,000 cars a year and the sales were coming down drastically. This forced the company to start looking for new markets to safeguard its long term interests and Volkswagen embarked on its multi-brand strategy in an effort to rationalize its brands. Volkswagen took over Skoda and the two companies had little in common. Volkswagen vehicle brands were distinct in their discipline and the brands include Audi, VW, SEAT and Skoda. Volkswagen made an effort to maintain its brand image and each brand had its own distinct brand identity. The company planned to target different market segments with each of its brands. The Audi brand targeted the rich and it is synonymous with exclusivity, technological superiority and coolness. When Volkswagen acquired Skoda, Skoda was having a bad reputation in the industry for quality and reliability. There were problems acquiring and transforming Skoda into Volkswagen. The first major problem was the strategy adopted in acquiring Skoda. Some of the other issues include: Human resource problem, Integration problems, new product development, quality improvement and image building etc. (ICMR Case studies, 2007) STRATEGIC LOGIC BEHIND THE DEAL The major reasons for acquisition are to expand the market share. When acquisitions occur, companies face challenges impacting the sales and revenue of the organization. Acquisitions take place in terms of the extent to which the business activities of the acquired organization are related to those of the acquirer as falling into four main types according to Francis, Cherunilam (2005): Vertical: Organizations combine vertically from successive processes within the same industry, e.g. a producer or wholesaler may acquire a series of retail outlets. Horizontal: This happens within similar organizations in the same industry. Conglomerate: This refers to the situation where the acquired organization is in completely unrelated field of business activity. Concentric: In concentric type of acquisition, the organization acquired is in unfamiliar but related fields into which the acquiring company wishes to expand The Volkswagen-Skoda deal will come under the Horizontal type of acquisition. The Merger was made as a measure of consolidation in the automobile industry. Volkswagen wanted to become number one in the operating field. The merger is an attacking measure from Volkswagen. Francis, Cherunilam (2005, p 639). ANALYSIS OF VARIOUS STRATEGIES Volkswagen adopted a horizontal takeover and it was at once full acquisition without any regards to the Human resource issues, Integration issues, new product development, quality improvement and image building etc. All these issues would never have risen if a combination of the strategies discussed is adopted. Francis, Cherunilam (2005) states the major strategies of acquisition as: Exporting Exporting is the most traditional mode of entering the foreign markets and it is a quite common one even now. International trade has been growing much faster than the global output resulting in greater old economic integration. Exporting is the appropriate strategy when one of the more conditions prevails: The volume of production is less or at a minimum Manufacturing products or the Production Cost in the host nation is high. The foreign market is categorized by production bottlenecks like infrastructure problem. Strict political or other policies of investment in the foreign country. There is no long term business relationship or that there is no guarantee of the market available for a long period. Licensing/Franchising Licensing/Franchising which involves minimal commitments of resources and effort on the part of the international marketer, are easy way of entering the foreign market. A licensing agreement may also be one of cross licensing, wherein there is a mutual exchange of knowledge and patents. In cross licensing a cash payment may or may not be involved. Firm purchases the right to manufacture or distribute product. e.g., UVA merchandise, Eddie Bauer Explorers Franchising is a form of licensing in which a parent company (franchiser) grants another independent entity (franchisee) the right to do business in a prescribed manner. This right can take the form of selling the franchisors products, using its name, production and marketing techniques are general business approach. Contract Manufacturing Under Contract Manufacturing, a company doing international marketing contracts with firms in foreign countries to manufacture or assemble the products while retaining the responsibility of marketing the product and this is a common practice in international business. The major characteristics of Contract Manufacturing include: 1.The company provides no funds or resources for setting of production facilities. 2.It frees the company from the risk of investing in foreign countries. Management contract Under the Management contract, the firm providing the management Know-how may not have any equity stake in the enterprise being managed and in short, in a management contract, the supplier brings together a package of skills that will provide an integrated service to the client without enquiring the risks and benefits of ownership. Thus, as Kotler observes, management contracting is a low risk method of getting into a foreign market and it starts yielding income right from the beginning. Assembly operations As Miracle and Album point out, a manufacturer who wants many of the advantages that are associated with overseas manufacturing facilities and yet does not want to go that far may find it desirable to establish overseas assembling facility in selected markets and even products meant to be marketed domestically are assembled abroad. Fully owned manufacturing facilities Companies with a long term and substantial interest in the foreign market normally establish fully whole manufacturing facilities there. As Drucker point out â€Å"It is simply not possible to maintain substantial market standing in an important areas unless one has a physical presence as a producer.† A number of factors like trade barriers, differences in the production and other costs, government policies encourage the establishment of production facilities in the foreign market. Joint venture Joint venture is a very common strategy of entering the foreign market. In the wideset sense, any form of association which implies collaboration for more than a transitory period is joint venture. New legal entity is created for a specific project/product with joint ownership by the partners e.g., NUMMI, Dow Corning The diverse types of Joint overseas operations include the sharing of ownership and management in an enterprise, Licensing/franchising agreements, Contract manufacturing and Managerial contracts. Counter trade Although the major reason for the substantial growth of counter trade is it is used as a strategy to increase exports, particularly by the developing countries, counter trade has been successfully used by the number of companies as an entry strategy. Strategic Alliance Strategic Alliance has been becoming more and more popular in international business. Also known by such names as entente and coalition, this strategy seeks to enhance the long term competitive advantage of the firm by forming alliance with its competitors, existing in critical areas instead of competing with each other. Firms contract to blend skills (marketing, distribution, RD) on specific project/product, but no separate entity Third country location Third country location is sometimes used as an entry strategy. When there are no commercial transactions between two nations because of political reasons or when direct transaction between two nations are difficult due to political reasons are the like, a firm in one of these nations which want to enter the other market will have to operate from a third country base. CONCLUSION AND RECOMMENDATIONS Acquisitions lead to conflict between nations. There is always resentment among the employees as they fear loss of job and feel insecure and oppose to change. So employee problems will arise due to the culture problems, technology related issues, company policies and procedures etc. some of the vital facts about acquisitions are Mergers and acquisitions can lead to create monopolies in a sector, Mergers and acquisitions lead to cartel formation, Mergers and acquisitions always have the problem of culture and resentment among shareholders. So care must be taken regarding this before takeover, Environmental forces play a vital role in a merger, Mergers and acquisitions can affect the GDP of a nation to a great extent. (Gaurav Sharma, 2007, p 21) The analysis of Volkswagen-Skoda deal gives a hint of the various strategies that will act as major success factors that are needed for a successful take over. Bent Wessel-Aas, (July 2005) states the critical success factors in a merger as : (1) Complete and Clear objectives, goals and scope of the project, (2) Client consultation and acceptance, (3) Project managers competence and commitment, (4) Project team members competence and commitment, (5) Communication and information sharing and exchange, (6) Project plan development, (7) MA advisory firms resource planning, (8) Time management and tight secrecy, (9) Price evaluation and financing scheme, and (10) Risk management By adopting a combination of these strategies, the problems that arise due to acquisition will be overcome. REFERENCE Francis, Cherunilam, Business Environment Text and Cases, Fourteenth edition, Himalaya Publishing House Pg. 639 652. Gaurav Sharma, 2007. Mergers and Acquisitions Strategies. The Business Line, 5 August, pg 4 6. ICMR Case studies, 2007. Volkswagens Acquisition of Skoda Auto: A Central European Success Story. Available at: https://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/BSTR262.htm Bent Wessel-Aas, July 2005. German car manufacturer Audi—a Volkswagen Group company acquisition of Skoda will be a cost-effective and high quality hub for procurement. Available at: https://findarticles.com/p/articles/mi_m3012/is_6_185/ai_n16071220

The Workplace For The Aging Workforce - 1000 Words

Occupational Therapy can promote, health, safety and productivity for older workers in today’s increasingly aging workforce. The average life expectancy has increased from 70.8 years in 1970 to 77.2 years in 2001. According to the Bureau of Labor Statistics, 63 million Americans are above the age of 65. Perry, PE, CPE, L. Designing the Workplace for the Aging Workforce, How to use Ergonomics to Improve the Workplace Design. http://195.28.226.39/NR/rdonlyres/AEFC0FF5-EE0B-4765-B5D4-F640D99E1412/0/Designingtheworkplacefortheagingworkforce.pdf.) Ten million adults over the age of 65 are still working, and that number is expected to double over the next ten years due to extended careers, second careers and longer life expectancy. People above retirement age continue to work for social, financial and healthcare benefits. One of the industries affected the most by this aging workforce is the manufacturing industry. 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The Preface Starts Off By William Lloyd Garrison - 1695 Words

The preface starts off by William Lloyd Garrison describing his encounter with Frederick Douglass at an anti-slavery convention in Nantucket. Garrison tells us that Frederick Douglass made an escape from the southern prison house of bondage and that his speech at the convention was a memorable one. Frederick Douglass’s had eloquence and a skill of persuading. Connecting people’s minds and hearts to his words of description about the reality of slavery. The audience responded with great attention and created a common perspective about the actuality of slavery that Frederick Douglass describes. As soon as Frederick Douglass finished his speech, Garrison arose and declared that the hunted fugitive’s speech was better than Patrick†¦show more content†¦Rather than the descriptions revealed by the masters who might have hide the significant facts about his slaves life and the mistreatments they receive. Phillips was also glad to learn a lot of the true facts f rom Douglass’s narrative and learns the wretchedness of death that gathers over the souls of the slaves before they could even learn their A B C’s. Phillips also mentions that Frederick Douglass originates from a state (Maryland) where the conditions for a slave were less harsh than the other states in the Deep South. Where one can only imagine the horrors that surrounded the slaves in those states. Wendell Phillips also praises his book and is also confident that whoever reads his book will be persuaded towards the cause of anti-slavery and that since Frederick Douglass is a marvelous and persuasive speaker, his book will also consist of the same elements. Finally, he mentions to his friend about how he wrote his own name and his masters names clearly in his narrative, making it dangerous upon himself. Phillips also relates this choice towards the founding fathers when they wrote their names on the Declaration of Independence. Here we can admire Frederick Douglassâ₠¬â„¢s bravery and that he is not scared to spread the truth about the reality of slavery that many do not know. Frederick Douglass was born in Talbot county, Maryland. Douglass explains that he does not know his age, as many other slaves also do not know theirShow MoreRelatedThe Preface By William Lloyd Garrison3512 Words   |  15 PagesThe preface by William Lloyd Garrison describes the encounter between Frederick Douglass and Garrison, at an anti-slavery convention. It tells about how this encounter led to a long partnership between the two as well as Douglass’ involvement in the Anti-Slavery Society. At the convention the people noticed his appearance as well as his intellectual side. The crowd seemed to respond well to the idea of protecting Douglass against his owners. In the convent Garrison says Douglass’ testimony made theRead MoreSports17369 Words   |  70 Pagesof reference: The writer’s point of view, or bias. Do you think she or he is qualified to write about this subject? Is the book based on personal experience? 4. Thesis: What is the main point here? Why do you think this book was written? Read the preface and the book jacket, if applicable. Give a brief description of the book in terms of its thesis, and give your opinion on how well it is supported. 7 8 EXERCISES IN SPORTSCASTING 5. Evidence: What kinds of arguments does the author useRead MoreSports17363 Words   |  70 Pagesof reference: The writer’s point of view, or bias. Do you think she or he is qualified to write about this subject? Is the book based on personal experience? 4. Thesis: What is the main point here? Why do you think this book was written? Read the preface and the book jacket, if applicable. Give a brief description of the book in terms of its thesis, and give your opinion on how well it is supported. 7 8 EXERCISES IN SPORTSCASTING 5. Evidence: What kinds of arguments does the author use, and howRead MoreLangston Hughes Research Paper25309 Words   |  102 Pagesdivide its citizens. Langston had no playmates because Mary Langston lived in a run-down, white neighborhood. He was afraid to leave his yard, where he was safe from rowdy white boys who chased and teased him about the second hand clothes and cast-off womens shoes that he wore. Langston spent many hours sitting on a stool beside his grandmother, who read him stories from the Bible or from his favorite book, Grimms Fairy Tales. Her long wavy hair had very little gray in it, and in her ears she

A history of isreal Essay Example For Students

A history of isreal Essay Israel, slightly larger than Massachusetts, lies at the eastern end of the Mediterranean Sea. It is bordered by Egypt on the west, Syria and Jordan on the east, and Lebanon on the north. Its maritime plain is extremely fertile, but only 17% of the land is arable (Figure 1). The southern Negev region, which comprises almost half the total area, is largely a desert. The Jordan River flows from the north through Lake Hule and Lake Kinneret, finally entering the Dead Sea, 1,349 ft below sea level, the worlds lowest land elevation. In a time of war, it is far too easy to get caught up in the violence, and forget that the true goal is peace. Hate, death, and pain make it difficult for the belligerent nations to think rationally and come up with a plan to end the violence. This is why a third party is necessary. A third party sees the situation from an outsiders viewpoint. Therefore, they are able to offer better advice and solutions. This situation is applicable to the current Middle East Crisis. Palestine and Israel cannot come to a peaceful solution without the help of the international community. In order to help the feuding parties, the United States needs to be neutral, fair, and unbiased. The current leaders need to avoid the mistakes made by the historical leaders and nations that led to the escalation of the conflict, like McMahon-Hussein Correspondence did. The McMahon-Hussein correspondence is essentially a series of letters exchanged, in 1915, between Feisal Hussein, who was Sherif of Mecca at the tim e, and the British High Commissioner in Egypt, Sir Henry McMahon (Khalidi 1980, 92). The British were willing to negotiate with the Arabs because they needed military support during the First World War, and the Arabs could provide this support. In this correspondence, the British representative promised to Hussein that if the Arabs revolt against the Turks, the British government would grant them independence. The main controversy in McMahon-Hussein correspondence and the question of Palestine at large lies in the certain areas, that McMahon claimed cannot be said to be purely Arab and should therefore be excluded from the proposed limits and boundaries, of the Arab state (Khalidi 1980,117). There is also an opinion that the correspondence at issue has no legal grounds, since it was never concluded in mutual agreement. The Arab community took the British promise seriously, and the events that took place only a couple of years after the series of letters were passed certainly infuria ted the Arab population. The question of Palestine after the correspondence was the most heated debate, and largely due to British indecisiveness and inability to keep its promises. Zionism was the national movement for the return of the Jewish people to their homeland and the resumption of Jewish sovereignty in the Land of Israel, advocated, from its inception, tangible as well as spiritual aims. It was a movement that arose in the late 19th century in response to growing anti-Semitism. In the struggle to establish a Zionist state, the some Palestinians were eventually forced to leave their country, beginning a cycle of conflict that characterized Palestine as a state since the beginning of the Zionist movement. The Palestinian Arabs, who felt their very existence was threatened by the Zionist movement, waged official and unofficial wars against the Zionists as a means of liberation. After fleeing Palestine in the first century, the Jewish people sought a return to the Holy Land for centuries due to the strong religious significance of the location. However, until the 19th century, Zionism was a small, unorganized movement lacking leadership (Laqueur 1989,50). The Zionist movement gained more popularity when, in 1917, the British announced the Balfour Declaration, stating His Majestys Government view with favor the establishment in Palestine of a national home for the Jewish people, and will use their best endeavors to facilitate the achievement of this object (Khal idi 1980, 92). After gaining control of Palestine a month later, the British decided that negotiations between Chaim Weizmann, the leading proponent of the Zionist movement, and King Faysal of Syria, the foremost Arab leader at the time, were necessary. The two sides managed to reach an agreement in 1919, declaring that the Jews would work together with Arabs to develop Palestine economically, and, in return Syria would acknowledge the Balfour Declaration and permit Jewish immigration, assuming Palestinian Arab rights were protected and the demands for an independent Greater Syria were met. (Said 1997, 119) In 1920, at the San Remo Conference, Britain was awarded the mandate for Palestine. Throughout the period of Jewish immigration to Palestine, wealthy Zionist organizations purchased land for colonization from absentee Arab landowners. In 1929, after a yearlong series of claims and counterclaims, violence broke out in two Jewish quarters of Jerusalem and the towns of Hebron and Sa fad. Eventually the British ended the fighting, but not until 133 Jews and 116 Arabs were killed. The British response to the Wailing Wall incidents was glaringly pro-Zionist (Said 1997, 140). Later that year, the British sent a commission under Sir Walter Shaw to review the incidents. The commission found that most of the problems within Palestine were related to displaced Arabs and a growing Arab fear of further Jewish immigration resulting in Jewish control of Palestine. The commission then recommended that the Britain clearly define its obligations to the Arab community, that Jewish immigration should be controlled directly by Britain, and that Arab tenants should not be evicted following land transfers. Rather than act upon the commissions findings, the British responded by sending another commission to Palestine to investigate the matter. The Hope-Simpson Commission investigated the matter in 1930 and made a series of recommendations that were incorporated into a document know n as the Passfield White Paper (Laqueur 1989, 83). The White Paper emphasized Britains dual responsibilities as a mandatory power and stated Britains intention to delineate lands for displaced Arab peasants. The White Paper also declared that Palestine had a limited economic capacity and proposed that restrictions upon Jewish immigration be established. While the Passfield White Paper did address some Arab complaints, the proposal to limit immigration was unacceptable for the Zionists. .u1509d2cc1df49a614df303424a874f24 , .u1509d2cc1df49a614df303424a874f24 .postImageUrl , .u1509d2cc1df49a614df303424a874f24 .centered-text-area { min-height: 80px; position: relative; } .u1509d2cc1df49a614df303424a874f24 , .u1509d2cc1df49a614df303424a874f24:hover , .u1509d2cc1df49a614df303424a874f24:visited , .u1509d2cc1df49a614df303424a874f24:active { border:0!important; } .u1509d2cc1df49a614df303424a874f24 .clearfix:after { content: ""; display: table; clear: both; } .u1509d2cc1df49a614df303424a874f24 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u1509d2cc1df49a614df303424a874f24:active , .u1509d2cc1df49a614df303424a874f24:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u1509d2cc1df49a614df303424a874f24 .centered-text-area { width: 100%; position: relative ; } .u1509d2cc1df49a614df303424a874f24 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u1509d2cc1df49a614df303424a874f24 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u1509d2cc1df49a614df303424a874f24 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u1509d2cc1df49a614df303424a874f24:hover .ctaButton { background-color: #34495E!important; } .u1509d2cc1df49a614df303424a874f24 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u1509d2cc1df49a614df303424a874f24 .u1509d2cc1df49a614df303424a874f24-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u1509d2cc1df49a614df303424a874f24:after { content: ""; display: block; clear: both; } READ: Test 1 - Inquiry, Atmosphere & Water Cycle Review QuestionsIn 1931, British Prime Minister Ramsay MacDonald wrote a letter to Weizmann essentially nullifying the White Paper. The Arabs deemed it the Black Letter and cited it as proof that the British were willing to kowtow to the Zionist movement due to the tremendous political clout held by the international Jewish community. The conflict between Arabs and Jews continued, with a large scale Arab strike in 1936 resulting in the death of 1,000 Arabs and 80 Jews and no progress towards a solution. Following the strike, the British sent another commission to Palestine, this time under Lord Peel in 1937.