Complete a case analysis of Case 11.2:  Car Wars at Wolfsburg found on pages 341 of your text.  Make sure you open & read the guidelines and rubric that you will find under the Syllabus link of the class. Please note that the rubric follows the criteria outlined in the assignment guide and rubric.  

Case Analysis Guidelines                                                                          

The purpose of a case analysis assignment is to provide you with an opportunity to apply concepts from class to actual situations.  Your group case analysis should be professionally written, concise, and in APA format. Please be sure to incorporate theories or concepts from class, and outside research. Reference them appropriately.

Your case analysis should follow the model described below:

·      
Read the case thoroughly in 1-2 readings.

·      Reread the case and begin your written analysis using the following format and/or headings:

·      Synopsis of the 
Situation:
  Write a brief 
synopsis that describes the background information about the case, an overview of the case.

·      
Key Issues:
  Definethe key issues/factors and the roles of the Key Players.
  You should include only those issues that impact the identified problem.

·      
Define the Problem
  

·      
Alternative Solutions.
  Develop two 
or more alternative solutions to the defined problem.
  This should not be a laundry list of actions one could take to address every symptom, but alternative actions that could correct the problem at hand.
  Identify the pros and cons of implementing each alternative.

…….

.

·      
Selected Solution to the Problem:
  Select one of the alternatives and explain why it would be best.
  Most of this work is already done if the alternative solutions clearly point out advantages and disadvantages to each.

·      
Implementation/Recommendations: 
 Identify how to implement the selected solution and what the expected results (positive and negative) might be. Your job is to identify an action, not put off action.

CASE STUDY 11.2 CAR WARS AT WOLFSBURG:

By Steven L. McShane, University of Western Australia

 Over the past 15 years, Volkswagen Group (VW) acquired several fiefdoms—Audi, Lamborghini, Bentley,

Bugatti, Skoda, SEAT—that jealously guarded their brand

and continuously rebelled against sharing knowledge.

One member of VW’s supervisory board (the German

equivalent of a board of directors) commented that

 managing the company is like trying to ride a chariot

with four or five horses, each of which pulls in a different

direction.”

 
…….

.

 Then Porsche AG entered the fray. The luxury sports car

company, which relies on VW for some of its production

work, began acquiring stock in VW and eventually

achieved a controlling interest. Porsche CEO Wendelin

Wiedeking was aware of VW’s internal rivalries. If you

mix the Porsche guys with the Audi guys and the VW guys

you will have trouble,” says Wiedeking. Each is proud to

belong to his own company.”

 Yet Wiedeking stirred up a different type of conflict as

Porsche tightened its grip over VW’s supervisory board.

Through an unswerving drive for efficient production and

astute marketing, Wiedeking and his executive team transformed Porsche into the world’s most profitable and prestigious car company. Wiedeking wanted to apply those

practices at VW by closing down inefficient operations and

money-losing car lines.

  Wiedeking is a Porsche CEO from another corporate

culture,” says German auto analyst Christoph Stuermer.

He’s out to maximize profits by cutting costs. And

he snubbed everyone, telling off VW management, interfering with their way of doing business.” Ferdinand

Dudenhoeffer, director of Germany’s Center of Automotive Research (CAR), agrees. Porsche is very successful in being lean and profitable. It’s not going to be

harmonious.”

 Particularly offended by Wiedeking’s plans was VW

chairman Ferdinand Piëch, who had a different vision of

Europe’s largest automaker. Piëch, whose grandfather

 developed the VW Beetle, placed more emphasis on

spectacular engineering than exceptional profits. For

 example, he supported the money-losing Bugatti brand,

which VW acquired several years ago when Piëch was

CEO. More recently, Piëch championed the Phaeton,

VW’s luxury car that broke new ground in innovation (it

boasts 100 patents) but did not achieve commercial

success.

 Wiedeking, on the other hand, believed that VW

could be more profitable if it stopped producing the

 Phaeton and Bugatti. Piëch sees his vision endangered

by Wiedeking,” says Dudenhoeffer. Wiedeking said that

there are no holy cows at VW, no more Phaetons, no more

Bugattis.” These ideas made Piëch’s blood boil. Anyone

who says that VW should pull the Phaeton doesn’t

 understand the world,” grumbled Piëch, explaining that

luxury cars represent the only segment with double-digit

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