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New Business Project by Volkswagen - Essay Example

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From the essay "New Business Project by Volkswagen," it is clear that the basic idea behind the new business project by Volkswagen is to reach that segment of the population those who find difficulty in purchasing a car but requires it on daily basis…
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New Business Project by Volkswagen
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Download file to see previous pages As the company announced the recall of nearly 9 million cars, it was estimated that an amount of € 6.5 billion was required to come up with the costs of the scandal. Therefore, there is an urgent need for the company to come up with a new business project with the changed framework to regain its brand value and market share in the car industry. As the company’s stocks which reflected the market concerns significantly fell down, it became the toughest challenge for the company to bring back their position and win the loyalty of the consumers. 2.1 Force Field Analysis of Volkswagen When Volkswagen was planning for a business change in order to gain back its hard-earned reputation, it is necessary to analyze the major factors forces which will support and hinder such change. In this context, Force Field Analysis is an important decision-making tool that can assist it in making the decision for a change within the business. Such an analysis will serve the purposes of i) deciding whether to undertake the change after evaluating the factors; ii) of increasing the chance of success of the change by weakening the forces against the change and by strengthening those in support of the change. The new business project or the proposed change by Volkswagen is the brand enhancement. After involvement in the major emissions scandal, what suffered most is the brand appreciation of the company and its perception to the ones who are related to its product i.e. the consumers, suppliers, dealers, employees and the shareholders. ...Download file to see next pagesRead More
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