Car Wars At Wolfsburg

Recommending a Solution
Group Case Analysis
By: Christopher Francis Audrey Jackson Neha Sharma Michelle Smith

Synopsis

Acquisition of several other companies Rebelled against sharing of knowledge Porsche's interest in Volkswagen Wiedekings goal for Volkswagen Eliminating certain car lines & closing down inefficient operations

Synopsis

Chairman of Volkswagen, Ferdinand Piech outraged Spectacular engineering verses being profitable Piechs ties to Porsche Financial difficulties Piech gains control of both companies

Key Issues
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Porsche gained a controlling share. Wiedeking felt certain brands held no value. Wiedeking was from a different culture. Wiedeking did not discuss his plans with Piech. Piech is emotionally involved.

Underlying Problem

Incompatible Goals

McShane and Glinow (2013, p.322) state, Goal incompatibility occurs when the goals of one person or department seem to interfere with another persons or departments goals.

Underlying Problem

Wiedeking wishes to change VWs business model to be more similar to Porsches.

Wiedeking believes VW can become lean and more profitable.

Accomplished by dropping non-profitable brands (i.e. Phaeton and Bugatti).

Underlying Problem

Piech wishes to leave VWs business model alone.

Piech believes VW is a leader in innovation and engineering. Accomplished by taking risks and supporting nonprofitable brands that convey VWs innovation and engineering.

Alternative Solutions

Alternative Solutions

Selected Solution

Selected Solution

Implementation / Recommendation

References

McShane, S. & Von Glinow, M. (2013). Organizational Behavior (6th ed.). New York, NY: The McGraw-Hill Companies, Inc.