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Volkswagen Case Study Summary

950 Words4 Pages

When Thomas Schmall became CEO of Volkswagen do Brazil (VWB) in 2007, the company was facing major market share declines and financial losses (Kaplan, R 2011). Because of the intense competition in the global market, VWB could not raise prices on products shipped and so the export margins failed to cover the company’s excess volume expenses, therefore, he needed to define a strategy to bring VWB back to life. Schmall and his team decided that the scorecard would be the means to accelerate the acceptance of the new strategy and culture. They wanted to use the scorecard to change the mindset of the company; essentially be the communicator from top all the way to the factory floor. Additionally, this tool would serve as VWB’s primary management system. The management team would assign objectives to a particular business unit and the objective owners would be responsible for seeing that the benchmarks were set, and the necessary resources were availableto carry out the target goal (Kaplan, R. 2011).
Describe VWB’s new strategy
Schmall knew that change was needed and he wanted to develop a new strategy that would help to regain the leadership spot in his industry and the #1 position of producer in the South American Market. Schmall started his new strategy by focusing on his vision “build a high performance team that would drive VWB to become South American automotive industry’s leader in quality innovation, sales and profitability on a sustainable basis” (Kaplan, R 2011). VWB’s

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