Bow Tie Case Analysis

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Bow-tie Explanation
Bow-Tie on: Negative Impact to Stakeholders and Company (A.5)

Stakeholders are by far, the Company’s source of survival. Stakeholders includes Customers, Suppliers, Employees, Managers, Directors, Auditors, Agencies, Shareholders, Investors and so forth. This particular bow-tie analysis looks at the overall risk derived from PESTLE analysis (External Risk) and the Internal Risk mentioned in this report.

The risk event that is entitled for this model in this case is “Negative Impact towards Stakeholders and the Company itself.” The threats that causes and / or contributes to the Negative Impact can be derived from the following:

Firstly, the threat that consumers worries about the future economic conditions would likely to influence a more “Risk Averse Mind-set” which may reduce the probability of owning a car if the economic situation is predicted to fluctuate for the decline. Furthermore, no doubt that major competitors like Toyota may also be aware of such situation and is likely to step up measures. Volkswagen would have to respond to such reactions by developing money
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Volkswagen has to step up in its Group Anti-Corruption System in the Internal Audit Committee to ensure strict compliance, true and fair reports of the company. This measure will help reduce the impact of negligence and audit risk.

Due to the emission scandal, Switzerland has banned several models of Volkswagen cars into the country. As such, sales are not able to be made and revenue will decline if countries worldwide were to also impose similar bans. Volkswagen could better ensure that proper industry standards are being met first and would suit the requirement of authorities before the approval of sales. Also, Volkswagen would have to rectify its mistake by issuing a recall of vehicles as well as compensations.
Future risk

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