Introduction

The Volkswagen Group is one of the world's leading and largest car manufacturer, with its
headquarters in Wolfsburg. The group uses 125 production plants in 20 European countries
and 11 other countries in the Americas, Asia and Africa. 671,205 employees worldwide
manufacture cars, and work in automotive-related services or other business sectors.
Volkswagen Group sells its cars in 153 countries. Passenger cars Volkswagen, Audi, SEAT,
ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial
Vehicles, Scania, and MAN are the twelve products from seven European countries.

Being Carbon Neutral has been the outcry for years and yielding traction in recent years at a
faster pace than expected. The transition from internal combustion engines to electric power
is also, often referred to as a mysterious system, the subject of predictions and ideas for years
from now. Volkswagen is taking a leadership role here to make the world a much cleaner,
greener, and sustainable place for future generations.

The idea of Electric mobility even though stemmed from environment pollution and carbon
neutrality race, has reshaped into a viable business model due to its reduced Total Cost of
Ownership. Even at this juncture, studies show that 85% of the Consumers are interested in
buying Electric vehicles but only 5% are willing to pay more. Such a situation demands a
much more focused and dedicated strategy to bite the bullet and retain its leadership in the
Automobile industry at this changing times.

The success of any organization depends on its performance and its reliance on the
organization's strategy. In today's highly competitive environment it is significant to plan the
right strategy, but without the right implementation you will not get the desired results.
Organizations monitor various performance metrics based on set and accepted goals. The
question is whether the expansion of these goals is aligned with the vision and strategies of
the organization.

Vision & Mission

Vision
The group goal is to position themselves as a “global leader” to provide sustainable mobility.
Mission
The group focus to provide attractive, safe, and environmentally friendly vehicles. Using
wide portfolio of strong brands, they promise to fulfill the customer various needs and offers
tailored mobility solutions to influence more delighted customers. Business operates in
accordance with the principles of passion, integrity, quality, reliability and considered the
same as the foundation of work.

Strategy Formulated
Key partners
 VW partnership with IONTY fast charging station provides an awareness among the
customer about the VW wide charging station facilities creates a positive impression
among the customer mind and reduces the customer anxiety on vehicle charging.
 Elli (Electric life), green energy provider and wall box charger providers been a
subsidiary of VW, planning to provide affordable wall box for our customer and
installation services.
 FAW-VW a subsidiary of VW, is in strategic point to help VW group to penetrate the
EV sector in Asia.
 Partnership with FORD automobile will help VW group to establish a strong point in
America.

Key activities and Customer relation

 Initiative of producing large quantity of cars and focus on uniqueness in designing of
cars attracts the market.
 In-house production of batteries in our plants.
 Increase customer loyalty by providing better customers maintenance service in terms
after sales service.
 Advertise and demonstrate the car facilities by organizing big events drags customer
attention.
  Segmenting distribution outlets according to product categories and customer
segmentation.
Value proposition
 Best experience and good performance at low maintenance cost and better price.
 Brand loyalty
 Mass production of high-quality powertrain to enhance a better experience to our
customers.
 Fully AI powered App will assist in locating charging stations, maintenance, and
customer service from within the car and through paired devices.
Competent resource management
 EV production waste management by employing qualified project managers.
 The recruitment & training of critically skilled employees in R&D department for
transforming VW from traditional automobile company to technology powered
transportation solution provider.
 Conversion of production plants to full EV plants band testing sites with the help of
our skilled employees.
Sales
 Sales through our company's owned website and wall box, our motive in this point is
to achieve a minimum cash flow conversion cycle so that we can reinvest as soon as
possible.
 Huge expansion of network in entry segment category stores powered by unique entry
level product offering will result in mass publicity and more customer conversions.
 Tie up with financial institutions with low interest rate finance plans.
 Focus on aggressive promotions and advertisement to attract the potential customers
and retain the existing customer.

Strategic & Operational Plans

As organization face globalization and competition, the need for alternatives coping with
these problems are increasing. Volkswagen believes that success in today’s business
environment not only lies on financial sustainability but also other aspects such as staff,
customers, and development. The inclusion of these items in the evaluation will enable
managers to get a complete view of the organization. An effective management tool will lead
to organizational collaboration, having common goals, strategies, and vision.
Balance Sore Card aims to provide management with a framework, a way to translate the
organizational goals and vision of the company are a comprehensive set of measures to
improve performance. There are four views finance, customer, internal business process,
learning and growth which clearly communicate the strategy and objectives of the
organization while also explaining to the stakeholders who drive for future success. By
clearly articulating the results the organization aspires to achieve and its drivers of those
results, management hopes to empower, inspire, and culminate in the skills and determination
of the people within the company to achieve long-term goals (Kaplan & Norton, 1996).
Enterprise Scorecard Volkswagen (5-year Strategic Plan)

PERSPECTIVE STRATEGIC OBJECTIVE - SYNERGY

Aggressively invest in growth & business
Financial
Increase cash Inflow from mature business
Customer satisfaction
Customer
Build Brand
Improved Dealer Networks
Develop new product
Internal Process Improve the quality of critical process
Sourcing economies of scales - partnership to access high quality
and reliable product
Share strategic jobs and skills
Learning & Development Create organization alignment with employees
Share key systems and knowledge

About Vokswagen EV
In May 2019, VW announced a pre-booking in Europe with the first model of its new
electronic ID.3. The first special edition, specially designed for pre-booking, features state-
of-the-art, high-performance equipment, which is limited to 30,000 vehicles. VW drives e-
mobility using consistent and commitment approach unlike any other car manufacturer. By
2025, the Group plans to build and sell up to 3 million electric vehicles a year - depending on
market developments. At that time, there will be more than 80 new types of electric motors,
including 50 electric motors. With its power outage, VW Group is investing heavily in future
travel: a budget of more than € 34 billion by the end of 2022 through e-travel, autonomous
travel, digital communications, and new travel services. The VW brand will be setting
attractive models with lower prices on the road, paving the way for the emergence of electric
cars around the world. The strategy is based on a modular drive matrix (MEB), a technology
platform specifically designed for electric vehicles. Production of VW ID, the world's first
MEB-based car series, will begin in Zwickau at the end of 2019. September 2018 marked the
beginning of a new era for Audi, and, when the car manufacturer introduced the e-Tron, the
first car made with a series of electric motors. The e-Tron offers Audi fans and customers a
combination of driving entertainment and everyday use.
Volkswagen EV Balance scorecard – 5-year Plan
This section mainly focusses on the 5-year strategy of Volkswagen business unit. Scorecard
explains various goals related to the four perspective of balance scorecard which will be
measured for the effective and efficient working process at the business unit level.
 Perspective Goals Measures - KPI Target Intiative
Improve sales volume effort by adopting new
Sales growth - EBITA 35% growth on sales (yearly average 7%)
marketing & adversting techniques
Positive Financial Performance
Return on investment 15% Create an agile business development plan
FINANCE
Net Cash Flow 10 billion Create financial management plan
To capture market share in existing & emerging
Market Share Growth 13% Worldwide awareness campaign about EV vehicles
segments
complaint resolvement within TAT 24 Empower Customer Relationship Team to respond to
Reduce customer complaints Number of customer complaints attended
hours,>95% quries immediately
Optimazation in availability of materials for
Increase on time delivery % of deliveries meet within deadlines >96% on time delivery
production/Inventory management tracking
CUSTOMER
Increase joint ventures in powerwall
Charging Stations Increase the free charging stations Partnership with key technology players
technologies - 3 partners/country
Launch - New product Launch per year 3 products /year New launches with great marketing campaigns
Customer satisfaction survey NPS score - 90% Currently 82%/above 90 Foccus on Net Promoter score
Launch management Foccus on Pre-booking car sales 60% of the total car Ensure the on-time deliveries of pre-booking sales
100% achievement on the budget (budget =
Manufacturing exellence Cycle time (plan Vs Actual) Adopting LEAN manufacturing techniques
5%)
Real time vehicle statics software for preimpting
INTERNAL Rapid maintaenance team Request fulfillment time - After sales service 99.99% as per Service Level Agreement
service requirements
PROCESS
Increase productivity using Partner Engagement
Strategic Partnerships Maximun cost reduction per acquisitions Expand and streamline the production process
and make each unit profitable
Manage Inventory and analyze the inventory
Inventory mangement Shrinkage should be below 3% Control check on damages and losses
mismatches
Reduce Development
Average time for the intial phase till completion Within 6 months More Investment in R&D
Time(R&D)
Attrition should below
Employee Retention Reduce Attrition rate especially top talents 4%/100%achievement on employee Survey/External employee ranking
engagement activities
LEARNING & Increase employee knowledge Employee per sales contribution/Employee test
>90% employee productivity Continous training programs on selling skills
DEVELOPMENT & productivity on process
Provide online learning Training resources &instructional guides 10% increase in the online training content
Convert existing training content to online platform
opportunities through online and adherence on training calendar
Powerwall use in remote areas where there
Foccus on community development & social
CSR Initiatives is no access of power - 100% adherence on Create CSR ploicies
intiative such as energy conservation
CSR activities

Explanation on Targets
Finance
1.Sales Growth (EBITA) – Out of 253-billion-euro of total group sales,88.41 is the VW unit
sales which is 4.5% increment from the last year. Previous year percentage sales are - 4.5,6,6
consequently. Total of 10% increment on sales growth for Year on Year (YTD) considering
new model and increased focus on EV sector.
2.ROI – Previous year ROI are 2019- 11%,2018 -10.35%,2017-7.10%. Taken a target for
15% for 5 years.
3.Net cash flows were negative ($-4238) on last year but planning to achieve to 10 billion for
next 5 year by the Volkswagen group. As share of VW brand in the group is 32%, I have
taken the target of 4 billion.
4.Market Share – Market share is decreasing year by year for nearly 1.5% but expect to take
target of 13% market share for 5 years. Currently it is 7%.
Customer
1.Reduce customer complaints – 95% customer complaints to be resolved within 24 hours.
An escalation matrix should maintain for the immediate resolution of complaints. Focus more
on the detractors.
2.On-time deliveries – Focus on more than 96% on-time deliveries.
3.Charging Stations - Increase in no of partners in Powerwall technologies - 3
partners/country to reach vast market.
4. New product – Total 3/year, yearly 2 products from the ID brand and 1 product previous
successful model.
5.Net Promoter score should be more than 90%. Focus the conversion of customers to
Promoters (9&10 scale).
Internal Process
1.Launch management – 30% should come from the pre-booking sales from total sales.
Annual New Old
target Launch models
100% 60% 40%
Expecting half (30%) pre-booking sales from total sales.
2.Manufacturing Excellence – 100% achievement on the budget. There is a degrowth on
Previous year 6184146/6297110(-1.8%).
3.Rapid Maintenance Team – 99.99 % adherence on Service Level agreement (After sales
service)
4.Strategic partnership – Maximum profitability per acquisitions.
5.Inventory Management – During Physical inventory check the damages and losses should
be below 3% of the EBITA as per industry standards.
Learning & Development
1.Reduce Development time – Current average development is 12 – 30 months should reduce
to six months for fast acquisition of market.
2.Employee Retention – Attrition should be 4% of the total employees.100% implementation
employee engagement activities for better retention.
3.Employee productivity – Sales/Employee should more than 90%.
4.Online Learning opportunities – 10% Conversion of existing contents to online and 100%
adherence on employee training calendar.
5.CSR initiatives – 100% adherence on planned CSR activities. Powerwall use in remote
areas where there is no access of power.

Volkswagen IT Balance Scorecard – One Year plan