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英国essay代写:Change Management Analysis for Volkswagen and Car Industry

2019-01-11 | 来源:51due教员组 | 类别:Essay代写范文

本篇essay代写- Change Management Analysis for Volkswagen and Car Industry讨论了大众汽车。大众汽车是《福布斯》2017年欧洲富豪榜前30强企业,也是大众汽车行业的重要组成部分。历史上的汽车行业需要变革来应对市场的变化,而大众汽车成功的管理措施使其变得更加强大。其驱动力来自外部力量,包括政治、经济、社会文化、技术等因素,以及组织成长的内在需求。本篇essay代写51due代写平台整理,供大家参考阅读。

Volkswagen,大众汽车,essay代写,代写,paper代写

1. Introduction

This paper aims to discuss the importance of change management for Volkswagen – the top 30 company in the European list of Forbes 2017 and its car industry. As we can see, the historical car industry calls for change to response the market change and the successful management measures taken by Volkswagen make it become stronger. Besides, a brief discussion on recognizing the need for change will be put forward. The driving force comes for external strength including the political, economic, sociocultural and technological factors and the internal need from the growth of organization. At last, this paper will also analyze the potential challenges for the starting of change and the resistance for change management at the beginning can be classified into four parts, unclear goal, infirm determination, lack of unity and weak implementation.

2. Factors for successful change

2.1 The essence for running business in car industry

In regard to car industry, there are three important factors influencing its development. They are brand power, technological innovation and manufacturing technique.

Firstly, the strong and impressive brand image can provide consumers with the brand association, which is the basis reason for purchasing and is also the foundation of brand loyalty. Usually, consumers tell the difference among different car product according to their brand. For an example, when talking about the low fuel consumption and advanced electronic equipment, the picture of Toyata usually appears in consumers’ mind. Besides, the factors influencing the purchasing behaviors are various including the product features, product quality, corporate reputation and so on. However, for most people, they are lack of specialized knowledge for inspecting all parts of a specific car. So they rely on the brand image helping them to make a decision (N Karabakal, A Günal and W Ritchie, 2000). As for many middle class and better-off groups, when they are looking for a luxury car, they usually associate the car brand with its features, quality and other important indicators. Once these positive factors are accumulated to a certain extent, the purchasing behavior happen.

Technology innovation plays a significant role in car industry and its development drives the car industry changing (P Beske, J Koplin and S Seuring, 2008). Car industry can almost make good use of all the most advanced technology innovation from other industry, such as air-condition, robot, numerically-controlled machine tool, micro electronic technique and other amazing technology. To our surprise, all the technology mentioned above can be applied into the car industry and develop itself with the growth of car industry, which makes the car industry keep energetic even though suffering the hit of oil crisis and environment protection issues. Nowadays, the competition on car market is the technology competition indeed. Car industry development history shows that all the car companies around the world have changed their attention from lean production and scale production to technology of micro electronics and information technology in terms of R&D, production and sales. Besides, the technology for car industry is also paid attention to eliminate the environment pollution because government and public in most countries have thought highly of the environment protection.

Last but not least, the manufacturing technique is also important for the car industry, which contains two parts: technology and manufacturing management. The former one has been discussed in the last part. To guarantee the high quality and acceptable price for consumers, the manufacturing management of manufacturing technique should be highlighted (J Koplin, S Seuring and M Mesterharm, 2007). It is about the executive force for a certain car company. In an enterprise, the main functions of the production management, is responsible for creating the enterprise product or service. The invested enterprise system resources product the good or service for consumers .Inputting enterprise systems include personnel, equipment, materials, materials, energy, technology, service, factory building, land, capital and government regulation, social and environmental requirements such as resources or information, the system output is enterprise produce a product or service. The manufacturing technique and management turns down the cost among this process and increase the efficiency.

2.2 Successful example – Volkswagen

In 1980s, Volkswagen suffered a lot in American market with the sales volume down and decline of brand image. Causing this situation can be concluded into two parts: the terrible advertising marketing and outdated product feature. At that time, the most important cooperative partner in terms of advertising marketing field is DDB, which bears almost all the advertising creative and advertising implementation for Volkswagen. One of the advertising slogan – Fahrvernugen, which means bringing fun for driving is the worst failure advertising slogan in the history of Volkswagen with the unclear brand positioning. Besides, the featured product chose by Volkswagen aims to get better market share in North American market with undesirable product quality. American people all are looking forward the new product – GOLF. But it is delayed on. All the factors mentioned above make Volkswagen into a dilemma (SRH Barrett, RL Speth, SD Eastham, IC Dedoussi and A Ashok, 2015). However, after a change and adjustment, it refreshes itself. Firstly Volkswagen shuts down the cooperation with DDB and it put this original marketing budget into a more effective way. Volkswagen decides to spend a lot of effort into the NFL (National Football League) and the Olympics Game. Besides, it also becomes the exclusive sponsor of SUPER CUP of Internet car, which establish confidence for consumers and its agency. Based on the advertising marketing implemented, the brand image has input into consumers’ mind successfully and in the end of 1994, Volkswagen put out the new product – New Beatle, which has beautiful and contracted vehicle model with higher quality compared with the old one (PC Zumbansen and D Saam, 2007). The New Beatle has stimulated the nostalgia for the consumers purchasing the old one and the marketing tools meet their expectation. Thus, Volkswagen has achieved revived in 1990s in American market.

3. Necessity for change

Change cycle can be divided into three sections: recognizing the need to change, having ability to change and being willing to change. In this part, it is going to discuss the first section.

3.1 Recognize the need for change

Recognizing the need for change is a phase of being aware of the issues in an organization, developing the sense of changing, preparing to diagnose the indeed problems, staring the feasibility analysis and studying the experience from other organization (Roger Gill, 2010). In this parse, there are some visible performance responding to new sense about market change and technical breakthrough. In a word, this part focuses on the sense establishment. The specific measures and activities for this parse can be diagnose, research, brainstorming and establishment of team of experts working for the change management.

In 1980s, Volkswagen makes good use of this measures and it works. At the beginning, when Volkswagen entering into American market, it relies on its previous successful experience in European and copies it to the new market without changing including the sales channel, marketing tools and product features. However, the decline sales volume and reduction of profits alarm Volkswagen the danger and it begins to change (D Waddell and AS Sohal, 1998). Firstly, a specific team of experts is set up for being responsible of problem research and it is found that marketing tools and poor product quality leading Volkswagen to troubles. But for the way to change this situation and save brand image, there are various ideas. Some senior executives the cooperation with DDB should not be turn down easily because DDB is an experience brand consulting company and it has been partner with Volkswagen for many years. But after a sufficient discussion and consideration, Volkswagen decides to be responsible for its marketing by itself and chooses the new ways to change this situation (J Kramer and J Magee, 1990).

3.2 Leadership in change

Leadership is extremely important for the change management and it occurs when someone is trying to affect others. The basic skills for leader are diagnosing, adjusting and communicating. Diagnosing is the ability of being aware of the present situation and rational future expectation. The gap between present situation and future expectation is the performance gap, which is the target problem waiting to be solved (WJ Orlikowski and DJ Hofman, 1996). Adjusting requires the leader to make good use of all the resources in an organization including talents and capital to eliminate the performance gap. Last but not least, only knowing what needs to do with a certain resources is not enough if others cannot understand your thinking. Thus, communication skill is also important to convey the information of urgency of changing and convince others to follow your advice.

To make the change successfully, enterprise leader should carry out a clear strategy and communicate it with all people in the organization as well as convince them. Languages and action are both significant (SG Eick, TL Graves, AF Karr, JS Marron and A Mockus, 2001). Besides presentation, behaviors are also necessary. The reputable person in the organization will be chose to lead the change management. Staffs can be invited to visit the importance of new strategy for the company and it build up the confidence for them consequently.

When a clear goal is set up, the following thing is to mobilize all staffs to take part in it. It contains three points: providing one focus, generating motivation and creating sustainably. The strategy for change should be simple and clear based on a consistent core idea. In addition, it is also expected to have plain priority, reasonable resource allocation, sustainable adjustment and adaption to company culture.

3.3 Communication change

Because the change for an organization cannot be achieved by one person and the leader needs many and even all the staff to take part into the change to make it successfully, the communication with stakeholders is extremely important. It is meaningful to keep communication with the change going on. The knowledge can be conveyed by communicated with different layer of an organization and it helps to recognize the need for change. Sometimes, worker at the production line may discover the issues hid into the market and producing process, which is far away from the decision maker. With this important knowledge, lead in an organization can decide whether to carry out the change to respond the market change. Secondly, without effective communication, the decision for change may be disorder and unclear (Ronél Rensburg and Ursula Ströh, 1998). Change management should think about the stakeholders’ profit and formulate change schedule according to the priority of solving different problems. Additionally, decision maker cannot be thoughtful for the planning especially the profit concerned by different stakeholders. Thus, the communication can help to bring out a clear picture of profit of different parts. At last, a successful change needs to be implemented. Take Volkswagen for an example, when it decides to change it marketing tools and turn down the cooperation with DDB, it has enough communication with American branch and the local agency and get support from them (J Tucker, 2011). This behavior help Volkswagen to maintain the cooperation with agency. The agency do not give up the franchising for Volkswagen’s new product, which is meaningful to hold the sales channels.

Potential challenges to starting change and resistance management

3.4 Potential challenges to starting change

When starting a change, challenges come. In general, there are four aspect hindering change for an organization. First of all, change without clear goal. Usually, an organization start to change when it is in some trouble such as decline of sales volume, decrease of market share and profits. The company wants to regain market share and boost sales, which is not a specific target. Change management should focus on clear problem. Volkswagen takes lots of time to discover its real problem, which is some matter of its marketing tools and product quality. Secondly, unfirm determination to change is also impede the change implementation. It will happen in the large organizations with wholesome rules and control. They are hard to change and not willing to change easily because it achieve success with the previous experience and system (K Kerber and AF Buono, 2005). If there is no sufficient evidence pointing out the flaw of the previous experience, the change cannot be carried out. Thirdly, lack of union thinking pattern will also influence the change for an organization. When there are different groups in the organization and the change will affect the vested interest of them, the conflict will happen. Last and the most important one is the weak executive force. Although a thorough plan is put forward, the change may fail because the plan cannot be carried out thoroughly.

Volkswagen also suffer a lot at the beginning of the change implementation. The most difficult thing for it is to make a determination to carry out the change because the original marketing tools taken by DDB in other branch is successful and the long period of cooperation is hard to change in a time. Besides, the different interest groups in Volkswagen have different opinions about the change (Alex Wright, 2007).

3.5 Resistance management

It is inevitable for an organization to encounter resistances and to make the change successfully, it should think out the way to reduce the resistances and even translate the resistances into motivation.

For one thing, develop the atmosphere of change in the organization and inset it into the company culture, which means besides the period of change, vitality to accept the new things should be kept in an organization. The leader and management layer should set themselves an example to others to develop the atmosphere of change to embrace the change. Besides, the important ways to make it is to keep communicate with staffs and make them understand the meaning and necessity of change as well as the long term profits for them from the change, which can shut down rumor harming the company (D Waddell and AS Sohal, 1998). Change requires all people to take part in it and give them the right to be informed.

For another hand, it is significant to choose the proper leader to lead the change for an organization. The one should be equipped with excellent performance and great personality charm (PMM Simoes and M Esposito, 2014). The great performance can give him a greater right of speech so as to convince management layer and grass-roots staff. The great personality can make the communication process smoother.

Before the revolution is carried out, the leader of American branch of Volkswagen has spent effort to grow the atmosphere of change and give a speech for all staff about the crisis and coping strategy for the sales down. Besides, the negotiation with agency is also important to keep the sales channels for the following New Beatle, which help Volkswagen regain glory. But it cannot work if the agency give up the franchising of new product.

3.6 Maintaining alignment across organizational components

It is no doubt that conflict will happen with a change goes on because the limited resources and different opinions about the change. The failure of management the conflict can lead to the failure of change. In this part, management layer and leader should be responsible for reduce the conflict. First of all, establish a proper value. Most company requires its staff to obey a value of commercialization to run business because the traditional management value is not suitable for the increasingly global competition. Besides, a reporting system to help staffs to improve themselves is also important (HL Sirkin, P Keenan and A Jackson, 2005). In this way, people are willing to keep learning and develop their skills constantly to adapt the organization change. Thirdly, the issues to be solved should be prioritized from the easy one to the difficult one. Change is expected to carry out when problems happen hindering the development of company. In some extent, change is to solve problems. Thus, decomposing the big problem into several small problems and solving the easiest one to gain some benefit at the beginning can help leader and the organization to grow the confidence to continue the change and get more support (B Doppelt, 2010). Last but not least, time management for the change management is also necessary. Because the market keep changing and the competitors are spending their efforts to develop technology, the time schedule should be followed seriously to keep the change finish timely. Or it is meaningless.

As we can see, the plan to change for Volkswagen’s American branch causes conflict between branch and headquarters about the marketing tools. It is eliminated by the problem decomposing. American branch tries the new marketing tools including sponsoring sports game of Olympics and NFL, which helps Volkswagen rebuild its brand image and make way for the new product’ sales. And then, it announces to turn down the cooperation with DBB. Because the new marketing tools shows efficiency, it gains support from staffs of American branch. Based on it, the following reform measures can be carried out successfully.

4. Conclusion

Market changing and technological revolution calls for change for every organization which is eager to stay competitive and change is tough and needs management. An organization should recognize the need and necessity of change timely and choose the proper leader to lead a change to make the organization stronger. The leader is expected to have excellent performance and great personality charm as well as the extraordinary communication skill to remind all the stakeholders associated to the organization to realize the importance of taking out change. After that, great determination and executive force are significant for the successful change. Volkswagen in this case shows the tough of change and the benefits of change, which is valuable to follow its successful experience of change management.

Reference

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