The Volkswagen case shows how a once revered and respected company chose to respond to increasing Environment Uncertainty in their pursuit of profits. Consider the many factors in their General and Task environment that impacted their decision-making when choosing to install the defeat devices. There were other ways for the company to achieve the required sustainability standards so what prevented them from choosing one of these other options?
Outline a number of strategies and tactics Volkswagen might have adopted to handle their increasingly dynamic and complex environmental uncertainty.
Which ones do you think could have worked?
What was happening at Volkswagen that prevented them from applying some of these mechanisms?
Think of how other companies you are aware of have made changes to incorporate the environmental regulations set by the government and the social expectations of their consumer market. What should the incoming CEO do to regain the company’s reputation and to ensure that something like this never happens again.
As you think of these questions and prepare your Case Notes, please remember to:
- Highlight a few key Points from the case;
- Describe the major issue and offer solutions; and
- Apply concepts from the External Environment chapter to support your analysis
