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Assignment 1 Individual EssayTopic: “Why should I care about the shareholders, who I see once a year at the general meeting. It is much more important that I care about the employees; I see them every day.” – Attributed to the CEO of Volkswagen in 1983.
Executive SummaryThis report provides some in-depth and thorough justification of Volkswagen Scandal in emission happened in 2015. The report starts with the organisational profile followed by contributing factors of the scandal whereas the root causes are explained. Moving on, key actors are also explained and how organisation responded to the consequences are elaborated. Lastly, lessonlearnt and recommendations are also included in the report.IntroductionVolkswagen is a multinational organisation in the automotive industry with the goal to obtain the top position of the automotive industry. With that regard in mind, lack of systemic organisational can cause loose of ethics and behaviour inthis pressured environment.Organisational profileVolkswagen(VW) is a leading multibrand and multinational organisation in the automotive industry. The organisation has specialized on developing and producing passenger cars as well as light trucks and buses. Each brand within the organisation have different group of managements which are independent and operational freely (Structure and Business Activities, 2016).In 2015, it was revealed that the company has been doing false advertisement by selling high eco emission vehicles in the market which affects the organisation reputation largely ever since then[CITATION Geo16 \l 1033 ].Contributing FactorsVolkswagen intended to increase the market share in US to compete with Toyota, world’s largest automotive company. VW wanted to penetrate the US market as a way of market expansion with the intention of becoming world’s first automotive company. Instead of competing with the hybrid cars, VW had decided to go in with diesel cars that have high fuel efficiency without limiting the power[CITATION Ewi173 \t \l 1033 ].
The company’s CEO has vision VW to become the biggest in the market by promoting the number of car sales. He saw the underrated market that VW hasin US and focused on becoming more successful in the US by targeting diesel cars market. But, the company still need drastic amount of sales to cope with the target. To alive VW’s idea of diesel cars in US, the company is needed to make some environmental friendly diesel cars that is fitted into US’s car regulations for emissions as diesel cars tend to generate more pollutants than other types of cars (Lynch and Santos, 2016).