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    Volkswagen Do Brasil - Driving Strategy With BSC

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    Rahadyan Adi
    Thomas Schmall faces challenges as the new CEO of Volkswagen do Brazil, including falling exports, unprofitable profits, and low employee commitment. To address these, he introduces the balanced scorecard and strategy map. The scorecard and map help analyze challenges in different areas and monitor progress. Key aspects of the new strategy include building a high-performance team, adopting the new culture and tools faster, and improving relationships with employees, suppliers, and dealers. The scorecard provides transparency and helps ensure all employees understand their roles in overcoming challenges.

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    Volkswagen Do Brasil - Driving Strategy With BSC

    Uploaded by

    Rahadyan Adi
    518 views20 pages
    Thomas Schmall faces challenges as the new CEO of Volkswagen do Brazil, including falling exports, unprofitable profits, and low employee commitment. To address these, he introduces the balanced scorecard and strategy map. The scorecard and map help analyze challenges in different areas and monitor progress. Key aspects of the new strategy include building a high-performance team, adopting the new culture and tools faster, and improving relationships with employees, suppliers, and dealers. The scorecard provides transparency and helps ensure all employees understand their roles in overcoming challenges.

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    Volskwagen do brazil

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    volkswagen-170725035450

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    Thomas Schmall faces challenges as the new CEO of Volkswagen do Brazil, including falling exports, unprofitable profits, and low employee commitment. To address these, he introduces the balanced scorecard and strategy map. The scorecard and map help analyze challenges in different areas and monitor progress. Key aspects of the new strategy include building a high-performance team, adopting the new culture and tools faster, and improving relationships with employees, suppliers, and dealers. The scorecard provides transparency and helps ensure all employees understand their roles in overcoming challenges.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    518 views20 pages

    Volkswagen Do Brasil - Driving Strategy With BSC

    Uploaded by

    Rahadyan Adi
    Thomas Schmall faces challenges as the new CEO of Volkswagen do Brazil, including falling exports, unprofitable profits, and low employee commitment. To address these, he introduces the balanced scorecard and strategy map. The scorecard and map help analyze challenges in different areas and monitor progress. Key aspects of the new strategy include building a high-performance team, adopting the new culture and tools faster, and improving relationships with employees, suppliers, and dealers. The scorecard provides transparency and helps ensure all employees understand their roles in overcoming challenges.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 20

    Volkswagen do

    Brasil - Driving
    Strategy with BSC
    2
    Problems and challenges faced

    1. Falling exports
    2. No proper functioning of the manufacturing units.
    3. Instability and low employee commitment.
    4. No proper funding and finance which led to unprofitable profits.

    3
    Brazil Brief

    Automotive Landscape in Brazil


    ▰Fifth largest land area and population in the
    world.
    ▰Strong in automotive sector
    ▰Stands as world’s fifth in consumer market.
    ▰85% of the 53 million lived in urban areas.

    4
    Volkswagen do Brasil

    2008- Global Share VWAG 10.3%


    3 largest automotive company
    151 Countries
    Generated employment for 370 thousand people and Generated revenues of 113
    pounds
    Sales of 3.6 million units across 10 Brands
    Vision 2018 : Sell 6.6 million/unit
    3 largest in VWAG behind CHina and Germany

    5
    Volkswagen - Timeline

    1939- Production of vehicles began


    1953 - 1 production plant outside Germany
    1956- more than 50% manufactured in Brazil
    1969- 61% Brazil Car Production
    1970’s - Launch of Medium Size Cars
    1986 - Volatile Industry ; Decline in market
    1997 - Highest sales (1.6 million)
    2003- Domestic Sales Drop ( Increase in Labour and R/M)

    6
    CEO - Thomas Schmall

    2007 - Made CEO


    Introduced New Procedures - Managers inside Manufacturing Units
    Goal - Not to be reliant on cost reduction,employee layoffs and downsizing but use
    high german tech to be a quality innovator,sales and profitability
    Aggressively Rebrand
    2006 - Josef-Fidelies Senn - Global HR Coordination ; Economist
    Introduced BSC
    2007- Carsteen Isensee - CFO
    They lead a team to implement VWB Transformation

    7
    Communication of Initiatives

    Giga - Interactive communication , asks


    questions about strategy
    Customized Learning Map
    BSC - Tool for Cultural Change - Top down even
    discussed and implementing strategies in shop
    floors

    8
    Ideologies of Thomas for BSC

    Approx 80% data was Hard Data


    75% from internal systems
    25% from external systems
    20% from surveys
    Data -
    45% - Customers
    33%-Employees
    22%- Market Assessments
    Management by Objective

    9
    Compensation and Recognition

    Multiple command training messages by linking compensation


    system
    Projects can be presented by anyone
    Best employee should be rewarded
    Mgmt Development Review - High performing Individuals , Job
    Promotions , rotations and training

    10
    Engaging Suppliers and Dealers

    VWB - 550 suppliers


    15800 different components
    600 independent dealers
    2008 - Supplier day Event - Recognize best annual performance
    Dealer Academy - Sales, post sales service
    Color coded performance analysis (Green , Yellow and Red)

    11
    Questions
    What challenges does Thomas Schmall face upon
    becoming CEO of Volkswagen do Brazil

    •Decreasing Market Share ( Japanese and French manufactures)


    •Struggling to minimize production due to appreciation of Brazilian currency
    •Due to stiff competition( Ford, Fiat etc) ,prices could not be increased
    •Inefficient processes in the company
    •Employee Dedication

    13
    Describe VWBs new Strategy

    •New work culture for employees to workout the problems, for improved
    decisions , and for high motivation
    •Introduction of balanced scorecard and strategy map
    •Build a performance team to drive the company to success
    •Faster adoption of these new culture and strategy
    •Better Relationship with employees, suppliers and dealers
    •Rebranding to be seen as high innovators of cars

    14
    How does the strategy map and Balanced Scorecard help Schmall and
    Senn implement the new strategy? What are the strengths and
    weaknesses of the scorecard and its implementation?

    Strategy map – helped in the analyzing the challenges in each section(Financial ,


    customer, Internal ,potential and Growth)
    –Gave them idea on how to overcome challenges
    •Balanced Scorecard : used to monitor the outcome of goals specified in the
    strategy map.
    –Gave current status of how much the problem has been solved.
    Problems can be solved much more faster rate if any
    Weakness of Balanced Scorecard: Takes time to understand,Development and
    Cost of Training
    Strength of Balanced Scorecard:Efficiency,Transparency

    15
    How can Schmall and his team use the scorecard to deal with the
    challenges faced by the company in January 2009?

    •Set the objectives


    •Communicated through all levels of management
    •Transparency was attained
    •Every employee was clear with its own Responsibilities
    •What all steps should be taken to overcome the challenges

    16
    Strategic Map - Primary Strategic Goals pursued by
    the Organisation

    Translating vision - Achieve Market Share growth and sustainable growth by getting
    the desired financials
    Communicating Linking - Projects , Games , Awards and Engagement programs
    Business Planning- Increase market share , improve stakeholders relationship and
    financials of the company
    Feedback and learning - Annual Contest , Job rotations and promotion

    17
    Strategy Map - Objectives

    Finance
    Customer- Satisfy Customer's experience
    Process- Service oriented , cost efficient ,flexible
    production and workforce
    Potential and Growth Challenge - High
    performance , sustainable growth

    18
    19
    THANKS!
    Any questions?
    .

    20

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