Volkswagen was founded in the 1930s. Like its name in Germany, its brand positioning was originally positioned as a car brand that ordinary people can afford. Volkswagen initially focused on designing and manufacturing cars.
Obviously, there is no need to say anything about their competitiveness in manufacturing capabilities. It is worth mentioning that Volkswagen’s business strategy is commendable. If the success of ‘Volkswagen Type 1’ is an expression of their manufacturing capabilities, then the diversification of products from one to ‘Audi’,’Volkswagen’ two brand sets is undoubtedly the success of business strategy. And the information system allows Volkswagen company to process large amounts of information and operate efficiently. VWoA is a subsidiary of VWAG in the United States. In the 1990s, VW’s Volkswagen and Audi two brands faced challenges in the US market.
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VWoA executives was trying to reverse this trend. In order to put more funds available In the market, executives decided to reduce short-term IT costs. In 1992, VWoA signed a ten-year contract with an IT companies and drastically reduced its internal IT staff to fewer than ten people. Over the next seven years, VWoA clearly felt that the layoffs were excessive and that their IT knowledge was not even sufficient to manage the outsourcing contract.
Therefore, the number of VWoA’s IT staff gradually increased back to 28. VWoA consists of 10 business department and they are embarking on the challenging task of reforming prioritizing and selecting IT projects. These 10 business departments submitted more than 40 project plans and required a total of up to 210 million U.S. dollars.
At the same time, VWAG, the parent company of VWoA, only gave a budget of 60 million U.S. dollars, which means that there are many programs that cannot obtain funding, and Inevitably create a sense of loss.