Managing Culture and Change Volkswagen Group

Question: Describe about the Managing Culture and Change for Volkswagen Group. Answer: In the sequence of the globalisation, the countries, companies and the business worlds are trying to make more interaction in a lively way. For making a high interactive networking channel a successful organisational and cultural change has to be incorporated throughout the various business practices. In this present context, to execute the current study, the leading automobile company, Volkswagen has been taken care off. It has been speculated that the organisational culture and its environmental context are the prime objectives that offer several opportunities, resources and constraints for the managing the organisational culture and the change initiatives (Eapen and Annamalai, 2014). In this present scenario, the several scholars stated that the automobile company, Volkswagen is currently experiencing a significant change in the organisational environment and the internal structure. Volkswagen is suffering from a major regulatory change after the revelation of the emission scandal to mitigate the significance (Hanifah and Mohamed, 2011). The diesel emission change has created much distress for the Volkswagen group. In this particular report, a model such as XYZ Model has helped to recognise the effectiveness of the adopted actions. The report identifies that a massive crisis has appeared for the Volkswagen for the illegitimacy and defilement of environmental rules. The study has exposed that the inadequacy and the professional incompetence of the employees that needs for an immediate change of the employees to improve the competency level in the automobile market. Hence, the importance of the change management is required for Volkswagen to survive in the market for retaining the brand position and improving the customer loyalty index. On the contrary, at the initial stage, the change management process was incorporated only on the employees. However, the management change has also been made over a particular time span. It has been identified that the major change process occurred due to the external factors like the diesel emission scandal. Thus, it is a crucial time for the Volkswagen to restructure the business activities. In the words of Venables (2007), the loss of consumer goodwill has affected the brand sustainability, which can be resolved by adopting a restructured business model. On the other hand, to mitigate the scandal the brand has invested a lot in enhancing the goodwill and the trade revenue of the brand as well. In this regards, Simn-Moya and Revuelto-Taboada, (2016) stated that the business strategy of the Volkswagen was to meet the organisational goals and objectives by increasing the production of the vehicles. Thus, the lack of strategic thinking and value creation approach had affected the operational activity of the brand. Therefore a strategic rethinking is necessary to enhance the sustainability factor of the brand. The overall sustainability indicates that the employee skills and the corporate value added services need to be changed immediately to improve the efficacy of the brand. On the other hand, the firm has focused on hiring a diversified workforce to meet the global challenges, which can be considered as a potential approach to resolving the sustainability issues. The greater focus on the environmental sustainability program such as Think Blue Nature can also be a possible agenda for meeting long-term goals and objectives of the firm. All in all more strategic intervention would be required to enhance the overall brand sustainability in the global market. References: Eapen, M. and Annamalai, S. (2014) A study on job satisfaction among employees in an automobile sales and service company, Prabandhan: Indian Journal of Management, 7(1), pp. 15-16. Hanifah, M.Z.M. and Mohamed, Z.A. (2011) Value configuration through value chain for competitive advantage, Global Business Advancement, 4(4), pp. 368-370 Simn-Moya, V. and Revuelto-Taboada, L. (2016a) Revising the predictive capability of business plan quality for new firm survival using qualitative comparative analysis, Journal of Business Research, 69(4), pp. 13511356. Venables, M. (2007) On a roll [automobile industry], Manufacturing Engineer, 86(2), pp. 1819