1. Transcript of volkswagen do Brazil
German multinational automotive Members: Natalia Mejia
Carolina Mariño FACULTAD DE CIENCIAS ECONÓMICAS Y ADMINISTRATIVAS CLASS: Strategy in action. TEACHER: Sandra Jenina Sanchez. CASE: VOLKSWAGEN DO BRASIL Driving Strategy with the Balanced Scorecard 370.000 Employees Worldwide 61 Production facilities across 21 countries 151 Countries 10 Brands 6.3 million vehicles sold The Automotive Landscape in Brazil (cc) image by nuonsolarteam on Flickr It had the 5th largest land area and population It had the world's 9th largest economy Recently is the largest and most diversified economy in Latin America The ...view middle of the document...
30% mkt. share (2003)
21% share Emphasis in exports 45.000 164.000 But... Why export strategy was defeated? appreciation of the brazilian currency Increases in the local labor costs increases in raw materials costs Intense competition in global markets export margins failed to cover the excess capacity costs Since 1999 until 2007, VWB faced market share decline and financial losses. Schmall and his management team started introducing balanced scorecard to monitor and analyzed the root cause of those problems. Vision Build a high performance team that would drive VWB to become the South American industry's leader in quality, innovation, sales, and profitability on a sustainable basis. Goal: Re-brand VWB into one with enthusiastic and highly-motivated employees to achieve high performance Objectives To change VWB's bureaucratic and slow moving culture change the mindset of the company accelerate the adoption of a new strategy and culture develop and sustain improved performance Enlarge markets , improve processes and innovate in new products Enable the company to regain its #1 market position in Brazil BSC & Strategy map The BSC was based on a strategic map which had the power to decode high-level objectives into operational terms that mobilize their employees teams. The industry was highly volatile Feedback and learning Communicating and linking Business Planning Balanced Scorecard Translating the vision Continuing with the strategic map and scorecard communication.
Make activities and games to reassure the strategy for the employees, board games and role play games.
The Strategic map has also been introduced in the production...