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These two recommendations prove to be the best candidates for change to address shortcomings and future problems for the Volkswagen Group. They ofer a acceptable balance in risk and reward.
8Implementation 8.1Kotter’s 8 Step Model 8.1.1STEP ONE: Create a Sense of Urgency When news first broke of the Volkswagen emissions scandal it forced the entire organization into panic mode. The sense of urgency to fix the issue is extremely high, as this ‘scandal’ is highly damaging towards the goodwill of the number 1 automaker. Due to the events and threats that the scandal caused for the company it has meant that a reactive change is necessary to revolutionize the company’s organizational structure. After the scandal, Volkswagens market share dropped 0.4%, which does not sound like a great deal however it caused the company to lose their number 1 automaker status.27The reason as to why Volkswagen initially found itself in this situation is due to the pressure to produce a car on budget and in a short amount of time to compete with competitors. Volkswagen became more concerned with the strategies and developments of competitors that it lacked precision and time to focus on developing proper emission cutting technologies. The organizations executives put pressure on engineers to create a car that had emission standards to meet American laws, as these new laws wiped out competition in the diesel automotive market of America. Volkswagen saw an opportunity in the market andexploited it using unethical technologies. The future threat that Volkswagen faces that if it finds itself in another predicament where they don’t have the technologies to compete in the market that they use cheating software to integrate a product into the market again. There is a balance that Volkswagen needs to reach in regard to being able to produce a high performance yet environmentally friendly car, yet being able to get it into the market before too many competitors enter the market causing them to lose their market share and possibly finding themselves being overtaken by new competitors and better grade technologies. Therefore, it is essential that Volkswagen focus on rebuilding the trust both within the company structure as well as with its consumers. If Volkswagen finds itself in another situation where laws change and they don’t have the technology to integrate a product into the market, that they don’t falsify technologies just to try and make a capital gain and maintain their number 1 automaker status. Volkswagen is facing up and coming threats with the implementation and innovation of autonomous cars. Competitors like Tesla are already ahead in these technologies causing Volkswagen to possibly feel the pressure at being behind in the future market. Therefore this is a vital time that Volkswagen ensures it focuses on developing trusted technologies to show that it can be a trusted company.