Involvement of the Volkswagen Group in Chinese Market - Dissertation Example

? Analysis of the Involvement of the Volkswagen Group in Chinese Market – Internationalisation of the Automobile Manufacture Companies Introduction Today’s business world is a competitive one and the companies deal with global issues and global competition. The advent of computers along with new and better technology has made the world a small place and opens the local markets to global companies. Industries such as information and technology, automobile, fast food, manufacturing, information technology enables services, etc have been majorly influenced by the globalisation. The companies today have realised the fact that sustained growth is only possible when the company focuses not only on the national market but also international market. The major industry that has been influenced by globalisation is the automobile industry. Automobile industry today is a global industry with the demand for automobiles increasing like never before. There are various reasons for this increase in the demand for automobiles. One reason is the increase in demand for automobiles in the developing countries and countries like China. Chinese and Indian automobile markets have now become the major attraction to many European and American automobile companies. In response to this global demand and also to sustain the growth, major automobile companies have now been concentrating on the emerging markets such as China and India. This research is aimed at analysing the internationalisation of automobile manufacturers. In order to do so Volkswagen and the Chinese market is taken as an example. Volkswagen’s operations in China have increased rapidly since its first interest in it in the 80’s. This research aims to analyse the involvement of Volkswagen in the Chinese market and how it has affected the sales and in-turn the growth of the company globally. The research analyses the various strategies adopted by Volkswagen and how it has been implemented. It also looks into the result of these strategies on the overall success of the company. Also the Chinese market will be analysed in detail. That is, the reason behind the attractiveness of the Chinese market to the global companies and the advantages and disadvantages of doing business in China. This is a research proposal outlining the aims, objectives, methodology of the research. It addresses the important aspects such as relevance of the research, recipients of the research, rationale, etc. Research Aim, Questions and Objectives Research Aim Aim of any research is to find measurable and testable data or information that adds to the existing human knowledge. Any research must have a specific aim that needs to be accomplished at the end. The primary aim of current research is to analyse the involvement of the Volkswagen group in the Chinese market and relate it to the overall internationalisation of Automobile manufacturers in general. A secondary aim of this research is to understand the Chinese market with respect to automobile manufacturers. In order to accomplish the above aims of the research, there is a need to formulate specific research questions and research objectives that address the various aspects of the research topic. Research Question Research question is the most important aspect of a research proposal as it addresses the core of what the researcher intends to do. Research questions are vital not only for the current research but also for further research as it leads to the formulation of new questions this leads to further investigation and research in the topic (Lester & Lester, 2009). A research question directly indicates if the researcher is on the right track to accomplish the aims of the research. A research question needs to be well formulated keeping the aims of the research. A research question should not be too elaborative or too restrictive. The reason for this is that an elaborative question might not be intriguing as it might turn out to be a explanation rather than a question. On the other hand, if the research question is too restrictive it may not cover the entire scope or the idea behind the research. Hence, a research question must be to the subject and at the same time cover the entire scope of the research. Keeping the above points in mind, the following research questions have been framed for the current research: What are the various factors that have lead to the internationalisation of automobile industry (automobile manufacturers)? What are the various strategies that Volkswagen adapted in order to internationalise its operations? What has been the strategy of Volkswagen in entering the Chinese market? What are the lessons that other Automobile Manufacturers can learn from Volkswagen? What are the ground realities of operating in China for an Automobile Manufacturer? What are the pros and cons of the Chinese market with respect to Automobile Industry? Research Objective Research objectives can be seen as partial answers to the research questions. Hence, research objectives must demonstrate an understanding and be in sync with the research questions. Every research must have a sense of purpose and a drive towards the research. This purpose and drive is indicated by then objectives of the research (Saunders et al, 2007). Research objectives represent the intentions and immediate outcome of the research in the form of precise statements (Jankowicz, 2005). Research objectives must be achievable and clear. They also must assist in answering the research questions (Polonsky & Waller, 2005). Therefore, research objectives are the driving force behind any research and hence be framed with a lot of care and thought. Following are the research objectives of the current research: To establish the trend of internationalisation in the global automobile industry To establish the need for companies to internationalise operations in order to sustain the growth To analyse the internationalisation strategies of Volkswagen To identify and analyse the various strategies adopted by Volkswagen in entering the Chinese market To understand the ground realities for an international automobile manufacturer in China To suggest strategies on internationalising operations for automobile manufacturers Rationale Researcher The researcher has had a passion for automobiles and has been very interested in the global automobile companies. Volkswagen has been one the global industry leaders for over half a century now. The researcher always has been attracted towards Volkswagen and how they have been able to achieve the cult status in the industry with respect to products (automobiles) and business. Through this research the researcher intends to combine passion with academics and try to come up with new information about both Volkswagen and global automobile industry in general. Also, China has caught the imagination of the researcher. The researcher is very impressed with the way china, irrespective of numerous problems, has grown on to become such a huge market. The researcher’s interest in China as a market was strengthened after the row between Google and Chinese government. The researcher wants to conduct an in-depth study in order to understand the actual conditions for conducting business operations in China. The researcher has been following both the topics, automobiles and Chinese market, by collecting information through various sources like websites, newspaper, government reports, etc. The researcher is update with the developments in the fields and now wants to take the interest to the next level. Hence, the researcher is confident of conducting the research and coming up with new information. Relevancy of the Research Automobile is a dynamic industry and is growing at a great pace. The demands for automobiles have been consistently increasing and show no signs of going down. Hence, it is high time that companies come up with new strategies and plans to beat the completion. Also Chinese market has been extremely attractive not just to automobile but all industries. As this research address both the above, it is relevant in the current situation. Recipients of the Research This research will be partial fulfilment of the Masters of Business Administration Program in the University. The primary recipients of the research are the university faculty and the thesis guide. This research will be of interest to numerous automobile companies that are looking to internationalise their operations. Also this research will benefit those companies who are on two minds on internationalising their operations and entering new markets as it will establish the need to do so. This research will also be of interest to companies that are looking to understand the automobiles industry in the Chinese market. These will be the secondary recipients of the research. Research Methodology Automobile industry today is a global industry with many companies having their presence in numerous countries and the local companies trying to establish their foothold in the global market. The researcher believes that there is a pattern and trend behind the internationalisation of the automobile industry. This trend will continue in the coming future and the automobile industry will continue to grow. At the same there are many companies that have failed to understand this trend and those who have understood have failed to follow the trend. Hence, through this research the researcher will suggest strategies and ways of how companies can internationalise their operations. Also, the author will support the idea about China being the next biggest market through this research. Due to the dynamism of the research topic the researcher intends to use both deductive approach and inductive approach in this research. The deductive approach will be used in order to prove the belief that automobile industry will continue to grow and internationalisation trend is here to stay. Inductive approach will be used in order to suggest strategies and plans in order to internationalise the operations of a company and ways of entering emerging markets like China. In an inductive approach a researcher uses practical findings and results to derive at a hypothesis where in, a deductive approach an assumption is made and then the researcher goes on to prove the assumption right through the research (Bryman & Bell, 2007). Such an approach demands the use of both primary and secondary research. The primary research mainly consists of the data and information that the researcher himself/herself has collected through surveys, questionnaires, interviews, etc and the secondary research consists of the information collected from the works of various scholars and researchers in the field and also other sources such as internet, electronic data bases, industrial reports etc. The researcher would then integrate the findings of both the results to draw conclusions and reinforce his/her belief. Research Design Research design is a framework to the research. It clearly specifies the path that the researcher intends to take to accomplish the objectives of the research. Due to the dynamic nature of the research topic the researcher intends to use both qualitative and quantitative research. The main reason for this is that there is a need to find statistical data as well as to draw theoretical conclusions. Qualitative research is gathering of information through primary research and secondary research and quantitative research is to use the data collected and interpreting it in a statistical manner to draw clear and concise conclusions through what is observed. Such a dual approach is used when there is a need to understand the relationship among variables and to explore the topic further (Creswell, 2003). Qualitative research uses both primary data and secondary data. Primary is the data collected first hand by the researcher through interviews, questionnaires, etc. The researcher would collect data/information from various sources and give personal interpretation. In secondary research, the researcher is dependent on the works and findings of other researchers and scholars in the field. That is secondary data would mainly comprise of the data collected from the books, journal, electronic databases, reports from companies, etc. In quantitative research the researcher uses the data/information collected to construct a statistical model that will help to explain the findings in a better way. Quantitative research provides information that is adequate to understand the current scenario (Marsh, 1982). Surveys will be conducted by the researcher through which he/she will extract statistical data. Also various sources from which the researcher would get quantitative data are industrial reports, surveys conducted by other researchers, etc. Methods of Data collection There are various methods available for data collection. The methods that the researcher intends to use in the current research are: Interviews: An interview allows interaction between the source and the researcher and hence is one of the best methods of data collection. This leads to the clear understanding of the research topic by interviewee which leads to better outputs. That is the information collected from an interview will be reliable and accurate. Questionnaires: Questionnaires are an alternative to an interview when a personal interview is not possible. Even though there is no personal interaction here, accurate and reliable information can be extracted by the way the questionnaire is framed. Questionnaires are very useful in getting quantitative data. Academic Research: Academic research involves collecting information from works of other scholars and researchers in the field. Both qualitative and quantitative data can be obtained from academic research. Various sources for academic research are books, journal articles, papers, websites, etc. Research Philosophy Research philosophy is a very essential part of the research as the research philosophy helps the researcher to specify and refine the methods used in the research; evaluate different methodologies and to be creative and innovative (Easterby-Smith et al, 2001). The research philosophy used in the current research is positivism. Positivism is the information obtained for observable experience (Saunders et al, 2007). All the information collected will be verifiable. Population Population is the area to which the research is associated with (Groves, 2009). The population of the current research is the Automobile sector. The research is targeted analyse the internationalisation of the automobile manufacture industry and hence will be the population of the research. Sampling The section of the population which is going to be surveyed is known as the sample of the research (Groves, 2009). The researcher intends to interview at least 25 professionals (Both form top management and regular and entry level employees from Volksawagen and other experts in the field who can throw light ground zero realities). Also, researchers and authors in the field will be interviewed. Questionnaires will be asked fill out as many researchers and professionals as possible to get the overall perception. Data Editing, Coding and Analysis The researcher will be using various tools for the purpose of editing, coding and analysis of data. From a basic Microsoft tool such as MS-Excel to more complicated SPSS software which is statistical analysis software program will be used. Timetable A Gantt chart is attached at the end of this proposal. Ethical considerations The details of all the participants in the survey will be kept confidential until and unless the participant agrees to reveal their identity. Research Onion Gantt chart Sl. No. Activity Weeks 1 2 3 4 5 6 7 8 9 10 11 12 1 Literature review                         2 Methodology review                         3 Develop Questionnaires                         4 Pilot test of Questionnaires                         5 Conducting Survey                         6 Administer Questionnaire                         7 Enter data into computer                         8 Analyze data                         9 Report of findings                         10 Coding and decoding                         11 Updating Literature                         12 Printing and binding                         13 Finalize Report 14 Submission                         References Bryman, A. & Bell, E. (2007). Business research methods. NY: Oxford University Press. Creswell, J (2003). Research design: qualitative, quantitative, and mixed method approaches. CA: SAGE, 2003. Easterby-Smith, M, Thorpe, R & Lowe, A (2001). Management Research: An Introduction. Sage Publications Ltd; Second Edition (2001). Groves, R, Fowler, F, Couper, M, Lepkowski, J, Singer, E & Tourangeau, R (2009). Survey Methodology, John Wiley and Sons, 2009 Jankowicz, A.D. (2005). Business research projects. 4th ed. London: Thomson Learning. Lester, J.D. & Lester, J.D. (2009), Writing research papers: a complete guide, Harlow: Longman. Marsh, C (1982). The survey method: the contribution of surveys to sociological explanation. London; Boston: Allen & Unwin, 1982. Polonsky, M.J. & Waller, D.S. (2005). Designing and managing a research project: a business student's guide. Thousand Oaks, CA: Sage publications. Saunders, M, Lewis, P & Thornhill, A (2007). Research methods for business students. 4th edition, New Jersey: Prentice Hall. Read More