Pestle and Swot Analysis of Volkswagen AG 2016-2017
Jonathan. K. Kush is the lead business writer at 123 Writing. He holds a BA (Hons) degree in Business Administration from the University of Brighton, UK. As a Market Research Analyst by profession, Jonathan has nearly a decades experience in market research and business analysis. His passion includes studying markets and industry trends to understand their impact on company strategy, performance and ways firms can mitigate their environment to outcompete rivals.
Latest posts by Jonathan Kush (see all)
Volkswagen AG may still be the world’s second largest automaker in the world after Toyota but negative macro trends and interferences from its external environment could take a toll on the company’s performance this year drastically changing the auto landscape. Such interferences include Trumps 20% tariff threat on all EU made cars which he wants implemented by November 2018. The UK, Volkswagen’s second biggest market in Europe, recently introduced a new initiative that will end sales of diesel and petrol cars by 2040. If fully implemented, at least 50% of news cars sold in the UK must be ultra-low emissions by this date. For Volkswagen and other automakers, the threat is clear; move to electric or perish. The company has also paid more than $25bn in fines and damages related to its 2015 ‘diesel-gate’ scandal, an amount that excludes the threat of future financial compensation from civil litigation.
These are some of the macro factors looked at in this report using PESTEL and SWOT to determine how Volkswagen can leverage its internal core competences like supreme innovation, engineering, manufacturing and assembly to position itself better in the future despite adverse macro influences as well as take advantage of new macro opportunities.
NO CITATION FOR THIS WORK WAS RECORDED
Volkswagen strategy Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the broad macro-environment of Volkswagen and the automobile industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
- Use our swot analysis example to gain an overall understanding of Volkswagen's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
- To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.
Analyse the internal and external environment of Volkswagen using Pestle & Swot 2016-2018.
1.0 INTRODUCTION
Volkswagen AG is the world’s second largest automaker in the world after Toyota. According to Statista (2017), Volkswagen had a global market share of 7.2% in the global automobile industry behind leader Toyota (9.2%). Group revenue in 2017 was €230.7bn on operating profit of €17bn (Annual Report 2017). The German automobile group saw a 6.2% increase in 2017 revenue from 2016, thanks to a strong performance in BRIC nations especially China where it has been doing extremely well for the last 3-5 years (B).
Established in 1937, Volkswagen produces and sells passenger cars under various brands such as Audi, Bugatti, Porsche, Bentley, SEAT, Škoda Lamborghini, and Volkswagen as well as motorcycles under the Ducati brand (Annual Report 2017). For over two decades, it has established and maintained the largest market share in Europe reaching production output of 4.7 million vehicles in Europe in 2017 out of 10million sold globally.
However in 2018, the company was fined €1bn by public prosecutors in Germany for issues related to the 2015 diesel emissions scandal. This adds to other fines it has already paid in other countries including North America where it paid damages of more than $25bn and a $2.5bn fine in 2017. This even excludes the threat of more financial compensation from civil litigation (McGee 2018).
These are some of the macro factors that will be looked at in this report while internal factors include the fallout from the emissions scandal in 2015. The report will use both PESTEL and SWOT to determine how Volkswagen can leverage its internal core competences like engineering, manufacturing and assembly to position itself better in the future despite adverse macro influences as well as take advantage of macro opportunities.
Services We are Offering
We are more than a free study and revision tool.
We also provide
on demand research and custom writing services.
123 Writing is the #1 exam revision and assignment study platform in the UK.
Get unlimited access to answered student essays, assignments, past exam questions and sample coursework written by qualified academic writers & tutors.
Our Standard subscription typically retails for £299.88 a year.
Today, you can join at 80% discount.
Here’s a full breakdown of everything you get as a Standard or Premium subscriber...
» Get access to our database of more than 5,770 answered premium strategy case studies
Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.
» Free access to past exam & assignment answers
Revise and prepare for exams and coursework with our fully answered exam notes and sample assignment papers. Furthermore, get quick on-demand answers to past exam question and assignment questions from our writers. Exam answer notes come with personalized lesson plans, and detailed study notes complete with detailed explanations of each answer, for maximum exam revision and assignment preparation. This tool is perfect for readers struggling with exam preparation & assignment study.
» Get extra assignment related help from our writers & tutors
Achieve high grades with a little extra assignment related support. Get extra help with your essays, assignments and general coursework, from our knowledgeable writers and tutors who will provide extra assistance when required for all academic related tasks including proofreading, grammar editing & correction, citations, referencing, etc. at no extra cost for standard and premium subscribers. All our standard and premium subscribers receive free proofreading services, which will include a check for punctuation, grammar, sentence formation, typographical errors, formatting, errors and other consistency issues (broadly).
» Get free assignment & essay writing help worth up to 7K words
Commission an on-demand essay, or assignment title from our knowledgeable writers and tutors on any subject matter. Get up to 7,000* words in on-demand custom assignment help from our writers who can assist with difficult topic in classical business literature. (* 7,000 free word credit exclusive to premium members).
» Fast & speedy answers to on-demand case solutions & assignment questions
Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).
» Get exclusive Q&A sessions with our subject matter writers
Ask our qualified, vetted and knowledgeable writers up to *12 essay, assignment and coursework related questions annually and receive accurate, clear, and detailed answers including step-by-step explanations briefs that are easy to follow. (*Exclusive to premium members).
» Free access to test bank questions & answers, study notes and practice quizzes
Test your knowledge on any subject with our quick quizzes and test banks for maximum retention after revision and studying. Test Bank contains questions in a variety of formats including multiple choice, true/false, short answer, and essay questions.
» Free access to video tutorials & study packs
Get free access to exclusive video tutorials to common subject topics. Our subject matter video tutorials, study notes and study packs have been created to help students learn and understand basic course module materials, as well as prepare students for their coursework assignment questions, essays and exams. Our video tutorials, study notes and study packs can be organized by topic, textbook or Question &Answer.
» Access to textbook chapter reviews and answer solutions
Get access to chapter reviews of popular business books, broken down in easy-to-understand simple concepts with simplified English. If English is not your first language, this service will make revising for essay assignments and exams as easy as 123 (Exclusive to premium members).
