Volkswagen Organizational Dynamics Case Study

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Primary objective of the project is to identify and study the concepts of Groups and Organisational Dynamics by analysing Volkswagen’s current woes due to the diesel emission scandal, how the organization’s culture was one of its root causes and the current CEO’s measures to tackle the crisis within the organization’s structure. Based on secondary research, we analysed the situation by applying different theories and frameworks and how these theories can be applied in the organizational context.
2. PROBLEM STATEMENT
To examine the causes and repercussions of Volkswagen’s emission scandal on the cultural front and what changes the current CEO of the organization should incorporate in order to restore its brand image.
3. INDUSTRY PROFILE – AUTOMOBILE
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Growth has dropped due to the increasing levels of saturation in the larger car markets of the world. Worldwide the trend is towards ensuring that one 's products are superior in terms of quality.
The passenger car segment has emerged as a major driving force for upstream industries like steel, iron, aluminum, rubber, plastics, glass, and electronics and downstream industries like advertising and marketing, transport and insurance. The car industry generates large amount of employment opportunities in the economy. For example in the US, every sixth worker is involved in the making of an automobile.

The USA and Japan are the leaders with around 42% of the total world market. However, since the last two to three years, the international passenger car industry has been witnessing an over capacity of more than 30%. Ridesharing, Intelligent mobility and Big Data Analytics are the key trends that influence the market in the current scenario.
Global sales are expected to grow by over 5% to reach 91.5 million vehicles. The US market is expected to reach 17 million and China is expected to reach 17 million, and China is expected to cross 26 million in
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From being a closed market with just five players selling out-dated models, Indian automotive industry has evolved starting with the joint venture between the Indian Govt. and Suzuki forming Maruti Udyog which commenced it’s production in 1983. Component manufacturers also entered the market through joint ventures. The de- licensing took place in 1993 and many major OEMs started their assembly operations in India. Since 2008, there were more than 35 major market players. Most of the import control was removed and Indian companies started to gain global acceptance.National Automotive Board was set up to act as a facilitator between the Govt. and the industry.
Gross turnover of automobile manufacturers in India expanded at a CAGR of 6% over FY07-14.
Production of automobiles increased at a CAGR of 10.5% over FY05-15. Two wheeler was the fastest growing segment representing a CAGR of 10.86% followed by passenger vehicle segment with CAGR of 10.31% between FY05-15.. India is world’s sixth largest vehicles manufacturer globally. Further, India is Asia’s second largest two-wheeler manufacturer and fifth largest producer of commercial vehicles, fourth largest manufacturer of passenger car and the largest manufacturer of

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