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REV: DECEMBER 20, 2010
ROBERT S. KAPLAN
RICARDO REISEN DE PINHO
Volkswagen do Br rasil: Driving Strategy with the
Balanced Scorecard d op yo kswagen do Brasil (VWB), studied the color-coded charts and d Thomas Schmall, CEO of Volk indicators on his wall. The data sh howed financial, customer, process, and employee p performance through end-of-year 2008. Schmall a his management team had introduced the Balance Scorecard and ed in 2007 as part of a program to reve erse eight consecutive years of market share declines a financial and losses. So far, the turnaround had been successful. The new enthusiasm among the workforce, d e consumers, suppliers, and dealers h led to strong sales
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Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard
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Brazil’s recent global presence came only after multiple internal and external economic crises. In
1994, the government launched an economic stabilization plan that reduced inflation to single digits and helped the country become the largest and most diversified economy in Latin America. With gross domestic product doubling from 1994 to 2008, Brazil now had the world’s ninth largest economy.1 Competition in Brazil
op yo The automotive sector produced 19% of Brazilian industrial GDP. The sector employed, directly or indirectly, more than 1.5 million people in more than 200,000 companies. North American and th European automobile manufacturers had entered Brazil in the first half of the 20 century by assembling vehicles from completely or semi-knocked down imported kits. In 1955, the Brazilian government mandated that the multi-national companies either abandon the Brazilian market or begin producing vehicles with
* Union victory also increased trade with Latin America. Mexico freed itself from French rule in 1867, but risked economic manipulation by its larger northern neighbor, the United States.
the world. " The Big Three" hold nearly 75% of the market and produce over 8
Brazil is within a political crisis. Their government has become extremely corrupt over the years and it appears to continue. Their government is considerably right-wing, and this stagnates growth. This has led to huge risks and issues that have hurt the country in every level. The country was also hit with the last massive recession and it has never recovered. Brazil also took on hosting two world events within this recession. Hosting the Olympics and World cup was a costly investment. Investors and politicians did not see the influx of tourism post these events as they expected which too had an impact on their economy. Brazil now has a huge deficit in it’s net debt and this is expected to climb higher over the coming years. They have
During the late 1800s, Latin America economy developed as the production of goods commenced. Latin American became “reintegrated into the world economy in the years after 1870, thanks to the rise in the demand for Latin America’s raw materials by the rapidly industrializing nations of Europe and the United States.” By the reintegration into the world of economy, Latin America started importing finished goods and exporting raw materials. All this was possible by the technology, capital and markets provided by industrialization nation.
Latin American countries gained a great alliance with the U.S. which really helped them because the U.S. was so powerful (Costa
With the increase in industrialization, particularly rail roads and steam boats, Latin America could efficiently export more goods. The installation of railroads and increased trade stabilized the economy of many countries. As long as Europe and the United States required raw materials, the economy would continue to grow. With the economy growing, political stability followed. This is demonstrated in Chasteen’s essay “Governance did become more orderly. As the profits of the export boom rose, government revenues from import/export taxes rose too…Higher government revenues afforded middle-class people new employment opportunities…Greater stability and prosperity attracted further investment from aboard intensifying trade, and the cycle repeated itself” (Chasteen, 207). As more money flowed into the continent, the more the government improved. Using the available revenue from the export boom, local governments could afford better equipment and put down rebellions with less casualties. The government was better able to provide more individuals with employment opportunities, thus stabilizing the politics in the Spanish Americas.
The Americas, now known as Latin America, has gone through many changes in its history, from being conquered by Spain and Portugal, to the people fighting for its independence and finally, making a living as newly independent countries. From the years 1850 to the end of the 19th century, each region had influences, specifically those that dealt with the after effects colonial rule had on the land. Nations that made up Latin America began modifying different portions in their government in attempts to benefit the majority of the people. More or so, they accomplished this goal, each with their own challenges. Evidently, changes within the social, political and economic systems were focused on external factors.
eventually became one of the foundations of U.S. policy in Latin America. At first, Monroe’s
During the mid 1800s, trade was propelled forward with the innovation of steamships. The global trading market took off like a rocket and Latin America had to keep up with the demands
The automotive industry globally involves the processes of manufacturing as well as sales of cars and other automobiles. The business of this industry is also inclusive of retailing activities like services; sale of spare parts, gas-station retails etc. by the year 2015, and the growth rate of the industry is expected to have a rise of 5.5% (Market Line, 2012). Moreover, as per International Organization of Motor Vehicle Manufacturers, this industry is the leading driver in terms of global economic progress and the largest employer. The changing trends and rising demand for technically advanced cars are giving out more opportunities. This essay is going to be a presentation on the analysis of the Volkswagen positioning strategy with respect to the Porters models of competitive strategies. This essay would be vital, as this analysis would help in revealing the company’s competitive and strategic position in the industry.
made one of the leading manufacturing countries due to all the trade they were doing around the world.
|5000 employees at the beginning of the 1990s, it has grown to exports of $70 billion and 2.8 million employees today, and a globally dominating |
The Boom accrued post World War II which means that many of the countries which influenced Latin America heavily had a new confidence, especially the Latin American countries which had supported the winning side. There was also rapid modernization; a modernization which included an increase in the people getting educated (Companion to Latin American and Latino Studies pg. 101).
Correspondencia sobre este artículo debe ser dirigida a Rubiela Crowder, División Latina en línea, Keiser University, Fort Lauderdale, FL 33309. Correo electrónico: r.crowder@student.keiseruniversity.edu
1995 to 23% by 2010. This in turn resulted in an increased wealth of Brazilian