Question

1. What should VW company do now and in the future to deal with the scandal, beyond what has already been done?

2. In general, what can companies (and not just VW) do to prevent scandals such as the one Volkswagen faces? List and explain two specific actions that companies can take to avoid this type of problems. (Be specific – for example: don’t recommend “just be honest” as this lacks detail and it might not be as easy as it sounds, as evidenced by the many scandals in this industry)

3. Should Volkswagen stop producing diesel engines completely? Why or why not?

4. List two strengths and two weaknesses of Volkswagen’s as a global automobile manufacturer?

5. Volkswagen had a strong and successful growth strategy in place before the scandal. What should its growth strategy be going forward, after the main effects of the scandal have been addressed?

Answer 1

Answer= The main issue in case of VW was the unethical and illegal use of technology to deceive the government agencies to get the certification for the cars In order to prevent these kinds of incidences, it is advisable for the organization to have these tests conducted both in the actual ground and in labs so that the government regulations can adhere. It is always preferred to have the test conducted many times so that the results can be verified and to avoid the illegal and unethical practices and getting involved in the legal actions and to be forced to recall the product causing the loss of millions of dollars.

Answer= In my opinion, stopping the production of any product is not the wise decision instead the company must look for the testing and following the norms of the government and to develop or to improve the technology used in the production of the product so that the environmental standards can be met. In fact, there are many vehicle manufacturers that are providing the diesel engines only the company has to ensure the meeting of standards set by the government

Answer -

Strengths:

- The company has installed new technology in which the company aims to sell 15% of all new cars to be sold that will have zero-emission

- A large variety of brands among automotive companies (12 different brands) The company has more than 12 international brands all over the globe

Weaknesses:

- The company gained a lot of negative publicity during the diesel engine scandals

- The company had to spend millions of dollar in recalling the cars that led to a lot of financial burden on the company

Answer =  The company can focus on the following strategies=

- Mainly focusing on the greater passenger safety and adding more features to the car

- Having a better Hybrid and electric car in its product line

- Having a lot of testing of its car for the various standards

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