website as well. Although this was a good response, it also served as a way of reassuring their clients as well as the potential clients that the company was dedicated to customer satisfaction. They also engaged in strategy 2025 which is more about profitability and efficiency (Georgievski& Al Qudah, 2016). CSR Issues The case study shows that Volkswagen is faced with absolute failure regarding CSR. Regarding this issue, VW should design a means of emissions control in order to give the company a fair advantage over its competitors. Secondly, VW should act decisively to succeed in resurrecting its brand image. Moreover, Volkswagen needs to accept responsibility as a corporation instead of constellating individuals for its emission issues. Thus, it has to lay out credible strategies for how it will reduce emissions and verify its compliance with the regulatory standards. Moreover, the firm ought to engage in more sustainable projects so as to win back their large consumer base. In this, the company is already engaged in electric cars program whereby they seek to implement a new scalable electric architecture dubbed MEB (Georgievski & Al Qudah, 2016). This is bound to show the efforts towards sustainability and more environmentally friendly practices in the automobile industry. Lastly, Volkswagen must establish stronger accountability structures as well as practices to foster positive changes in its corporate culture. The recommendations for firms experiencing CSR problems 6 MANAGEMENT PROBLEM SOLVING
Volkswagen should improve on its financial behavior to implement financial management and economic issue awareness. Furthermore, applying innovative financial risk management will promote the nurturing of ideas and remove the need to engage in activities that are not of value to the firm ( Mitton 2002). For further improvement in the business, it is important that VW sets a clear mission statement that will be used to inform employees of the shared objectives and values to be achieved. It is recommended to VW that both employees and the firm should be at optimal conditions since the mutual association is required in the benefits of the two ( Campello et al.2011) This paper strongly argues that as much as VW needs to use the scientific management theory to improve working conditions they must consider the following before execution. The entrepreneur needs to find the financial position of the firm. This measures its ability of the firm and its capability to pay off its debts obligation. The firm must have complete knowledge of its financial situation to accurately implement specific issues which may affect them positively or negatively, enabling them to see the profit margin at the long run ( Saunders, & Thomas, 1997). When VW wants to devise anything, then the financial status is essential to measure its capability. The firm should consider its size before doing anything, and for example, they cannot buy enormous technology when they do not have enough space to keep the machine. On the other
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- Winter '16
- Professor Obura Oluoch
- Management, Volkswagen