Volkswagen global strategy International VW activities. Risk management system

Course Contents: (Business in Europe)

Summary:

The Volkswagen Group with its headquarters in Wolfsburg is one of the world’s leading automobile manufacturers and the largest car producer in Europe. In Western Europe, the largest car market in the world, nearly every fifth new car came from the Volkswagen Group. The company attained a global market share of 12.1 percent.

The Group operates 44 production plants in eleven European countries and seven countries in the Americas, Asia and Africa. Around the world more than 320,000 employees produce over 21,500 vehicles or are involved in vehicle-related services on every working day. The Volkswagen Group sells its vehicles in more than 150 countries. It is the goal of the Group to offer attractive, safe and environmentally friendly vehicles which are competitive on an increasingly tough market and which set world standards in their respective classes.

The Group's passenger car business is divided into two Brand Groups. Under the leadership of the Group, the Audi and Volkswagen brands are responsible for the results of their respective Brand Group worldwide.
Audi's Brand Group is made up of the Audi, Seat and Lamborghini brands and places an emphasis on sporty values. The Volkswagen Brand Group is made up of the Volkswagen, Škoda Auto, Bentley and Bugatti brands and stands for more classic values. Each brand retains its differentiated brand-image and operates as an independent entity on the market. Together, the product ranges extend from the low-consumption 3 litre vehicle to luxury class vehicles. The Group’s commercial vehicle products are the responsibility of the Volkswagen Commercial Vehicles brand. Across all its brands, the brand group responded to declining markets with flexible adjustments of production.

RISK MANAGEMENT SYSTEM. The aim of all business activity is to identify and exploit opportunities to enhance the value of the business. In this, Volkswagen – as a Group of companies operating on a worldwide scale – is also exposed to risk. The responsible handling of global uncertainty forms part of the risk management system operated by Volkswagen. The object of this system is to identify business risk in a timely manner and to limit it to such an extent that the economic benefit of the relevant business activities outweighs the risk.

Alongside the existing reporting and early warning system, the risk situation is routinely assessed on the basis of written and verbal surveys. The risk management system is an integral part of Group management practice, and has been assessed by the Company’s external auditors. Accordingly, it conforms to the requirements of the German Law governing controls and transparency in business (KonTraG).

eBUSINESS ACTIVITIES

In close collaboration with its suppliers, Volkswagen has progressed its e-Business activities begun in 2001 from a B2B marketplace to a B2B supplier platform. The portal at www.vwgroupsupply.com optimizes the information flow between the Volkswagen Group and its partners while at the same time creating a stronger link between supplier and Group processes.

The core of the system is the new “VWGroupSupply” supplier database, which in future – containing, as it does, all the suppliers to the Volkswagen Group – will represent one of the largest component supplier listings in the automotive industry. In it, all suppliers will be able to record their individual calling cards – that is, the range of products and services they offer to the Volkswagen Group.

The virtual applications, including the "Electronic Supplier Link (ESL)" online inquiry facility online negotiating online catalogue purchasing "eCAP" capacity management online standard texts will save time, cut costs and so boost the competitiveness of the Volkswagen Group. This communications platform now also integrates other processes, such as technical modifications and invoice processing, online.

The Volkswagen Group already manages nearly its complete procurement volume of more than € 50 billion via the Internet.

The internet platform started in early summer of 2000 is up and running. Under the domain "VW Group Supply.com" the most important components Online Catalogs, Online Inquiries, Online Negotiations and Capacity Management have already been introduced to all brands and regions of the Volkswagen Group.

Available Languages:

Volkswagen, global strategy, International, activities, Risk management system, world’s leading , automobile manufacturers, car producer, Europe, Master, International Business, Customs, Logistics, import, export, exporter