Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard Case Study Help


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Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard Case Study Help

Background and Facts

Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard a workplace supplies merchant for little and average sized organisations has actually recently been involved in preparing for a merger with its rival House Deport, which has actually affected efficiency degrees in departmentswith the senior manager associated with lawful issues put forth by the government Profession Payment. With the Advertising Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the near future. With challenges in the type of a potential social modification and also reduced staff member spirits, the organization wants a complete reengineering effort at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social adjustment at the marketing department of Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard is increasing unpredictability in the working environment leading to numerous challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting strategic decisions because Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Profession Payment's intervention at the same time. Provided the fact that the store has an international existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries may be able to influence efficiency or calculated goals. Federal Trade Compensation's antitrust fit versus the merger used up useful time of the organization's senior monitoring suggesting that 'political' factors can have serious implications for a global service.

Economic Factors: Financial factors such as the emergence of small businesses in the global scenario recommend that Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard is prospering in a setting where there is prospective development of companies. Fact that shop clients are mostly looking for workplace products for residence offices suggests that the market has a rising fad of entrepreneurs and residence based services.

Social factors: Social patterns in the economic climate reveal that customers are searching for benefit along with appealing costs. Market research demonstrates how the client for Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard does not have awareness regarding locating solutions which can use a combination of benefit and also low costs.

Technological factors: Technology plays a vital function in Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard's company approach specifically as the organization is piloting Modern technology centers which would use modern technology sales and also assistance in the form of memory upgrades, outer setups. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

Several underlying Business Behavior problems can be seen in Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard's case as highlighted in this area.

Concerns concerning social change: There is concern about a social modification that would take place once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with most of the staff members already revealing discontent over this potential action. This predicted modification has created stress and anxiety in the work environment which has actually been combined with the previous stress and anxiety of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is lack of workers that can match the stressful atmosphere of a busy organization. Not just does this lead to difficulty in locating the appropriate people, it places anxiety on brand-new hires as can not hold up against the rate and stress that the organization anticipates them to bear.

Twin Coverage Lines: Newbies discover this business culture difficult and also challenging to handle particularly as dotted line partnerships are meant to be weaker generally and also unbiased setup and also efficiency examination is still done by the strong line manager. This means that novices can shed clearness concerning their corresponding functions and also objectives particularly as dotted line coverage does not keep them in straight interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been capable as well as proper for the task however the fact that Kransnow's separation would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Worry & Job Instability: Concern as well as insecurity can be determined as 2 significant problems that Lewis would be handling specifically as the merging has actually currently be terminated and 2 senior execs of the advertising department would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders that would certainly not just be in charge of brining about a cultural change however would certainly also have to verify herself in her new function.

Inappropriate Management Style of Leader: Lewis's management design and also its conflict with the advertising department's role can likewise be viewed as an OB difficulty particularly as she has actually been utilized to managing problems in the operations department where workers are educated to focus on processes and get them right. The advertising department on the other hand can be viewed as a team of people that are used to being nurtured by Krasnow that focused extra on result than procedures.

Interdepartmental Disputes: Interdepartmental arguments between 3 divisions, marketing, merchandizing and procedures respectively over the allocation of the marketing mix can be identified as another OB issue. The advertising department does not share the same vision as the various other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allowance among one an additional either.

Disintegration in Marketing Department: Disintegration between the advertising and marketing departments can be determined as another OB concern which might need more focus. The fact that the advertising and marketing areas in the advertising division are separated is protecting against both departments from obtaining from each other's experience as well as knowledge. Integration of advertising and marketing with retailing as well as procedures would certainly end up being harder if the advertising division itself is degenerated which can be an additional potential OB worry.

Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard Analysis

Numerous theories have actually been used to explain the circumstances to obtain further quality about the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that staffs are easy and lazy, have little ambition and also withstand modification. The tough version of this concept emphasized threat, limited controls, risks as well as punishments. Gradually it produces low efficiency, subtle sabotage and also rivalry (Deal, 2003). Although the scenario at Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard is not entirely adhering to Concept X, it can be seen that brand-new hires are finding this atmosphere instead difficult which might at some point cause a better inclination of the management towards Theory X. Based on McGregor's supported view, which he called Theory Y, the important task of the administration is to set up business conditions so that individuals can accomplish their very own objectives best by guiding their efforts in the direction of organizational rewards. If people discover no contentment in their job, the monitoring would have little choice yet to count on theory X as well as exterior control (Bargain, 2003). Also while assessing Lewis's management design, theory X might have been suitable in the procedures department somewhat however the Advertising department would call for reliance on Theory Y in order to get the imagination as well as creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's problem about bringing consistency in between the advertising and also advertising and marketing department is worried, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the advertising and advertising department's work, there may be the exact same initial disconnect which could lead to the 2nd stage of 'storming' where the teams test one another.

When individuals are provided with change, they enter phase one and so there may be feelings like unhappiness, unpredictability, stress, anger, fear, denial as well as disorientation.The situation at the advertising division of Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard is comparable so Lewis can get comfortable with the suggestion that it is not remarkable habits. It is during this stage that Lewis will have to provide guidance to the division so that they can find a feeling of direction. It can be seen exactly how Krasnow has already made this transition less complicated by making Lewis get entailed in the department a year before his actual separation.
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue related to instability at the work environment has actually been caused to start with by the change in monitoring as well as secondly by the fact that the merging will no longer be started. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has talks about the significance of 'security requires as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to really feel secure and also unharmed' is at the second level of demands. Before an employee can be made to establish psychologically, he needs to have his 'Physiological 'and 'Safety and security' requires met. This indicates that unless the workers are made to feel safe concerning their existing work standing in Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard Case Study

Ramification of Analysis.

The OB analysis has actually considered numerous theories to understand just how to deal with the present circumstance at hand. The complying with 3 options have been recommended to help Lewis manage the business challenges in the advertising and marketing department. Each of these choices has been recommended for relieving the transition needed to bring the advertising department according to the needs of the marketplace as well as for making the social change that would certainly follow when the existing leader leaves.

Integration of advertising and marketing features. Separating Adverting and Manufacturing features. Combination of Advertising And Marketing with Operations.

Analysis of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The internal marketing firm of Volkswagen Do Brasil Driving Strategy With The Balanced Scorecard is already strength for the organization in terms of conserving up on overheads connected to marketing and promo. Given that no new employment has been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising and marketing function, this is a beneficial possibility for incorporating the marketing and advertising features. Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business advertising together with firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both marketing and advertising functions.

The advantage of this approach is that it will certainly integrate both features while reducing the need for hiring an additional resource for advertising. Along with this, Lewis would certainly be heading the advertising and marketing division and regardless her replacement would be required for the existing duty that she is doing. The downside of this option is that outside hiring may produce animosity from internal workers who might be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Manufacturing: Offered the competitive stress and also high quality work needed from the marketing firm, it is recommended that Lewis needs to permit the manufacturing unit to be a separate feature from the advertising and marketing device. Considering that the majority of marketing agencies had these two features as separate units, it makes more sense to follow the standard.

Combination of Advertising with Procedures: Because Lewis is already taking care of the advertising and marketing and also procedures divisions all at once; it makes sense to integrate the two features considering that she has been successfully taking treatment of both ends. The fact that Lewis has to adjust her monitoring style for the marketing division recommends that these two divisions would certainly be culturally diverse.


An analysis of the 3 alternatives suggests that combination of advertising as well as procedures would certainly not be a feasible step due to the vast differences in between the two departments in spite of the reality that currently Lewis is dealing with both. While splitting up of the manufacturing function might have been a positive step for the advertising and marketing department, the reality that it would certainly suggest positioning a third function under Lewis's wing means this should be prevented.

Action Plan.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

Judith Shapiro will certainly be hired to take Lewis's area as SVP of marketing and advertising.

Production feature will certainly continue to be part of advertising and marketing under advertising and marketing function.

Lewis will certainly divide herself from operations.

A democratic management design with employee empowerment will certainly be utilized in marketing department.

Open door policy as well as emphasis on cross department interaction will certainly be targeted at removing disharmony.

Contingency plan.

If the combination does not exercise as prepared, a backup plan would certainly adhere to which would certainly separate the production feature from the marketing function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing department without an SVP. In that case the manufacturing function will certainly be separated by putting it under an SVP production.