Managing IT Priorities at Volkswagen of America Essay.

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Discuss how Volkswagen manages its priorities so as to remain competitive in today’s market.

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Over several decades, the Volkswagen of America (VWoA) has been struggling to stabilize its unsteady growth rates. The last 40 years at the company at the company have been occasioned by valleys and picks in the number of automotive sold. Several plans have been drawn to smooth the growth, including positioning the company into two categories; namely classic and sport. The company has been planning for future growth through product differentiation and focusing on goals. The goals set out to secure the future growth have always focused on the IT department as a key entity in the realization of the company’s growth. In preparation for the new growth, several projects have been brought forward, seeking approval and funding. However, the main challenge has always been to identify the right prioritization process for the company. This evaluation seeks to highlight the problems at VWoA and propose necessary changes in the prioritization process to enable funding of the most viable projects. Background of VWoA

 

The Volkswagen of America was founded in 1930s when Ferdinand Porsche designed the first Volkswagen automotive in Germany. The Volkswagen was a family car that could transport a family of five at highways speed. The car was preferred for its modest fuel consumption, and its price range that would be afforded by majority the people. The company was highly popularized by the famous Volkswagen beetle that hit the market in the 1940s. This model kept the vehicles sales at VWoA hurtling skyward for almost 20 years, when the worldwide sale hit a million mark. The beetle market fell in 1070s when its importation into the US would be discontinued later in that decade, however, it production among the Latin nations was upheld into 1990s. This way, the market remained high. The trend of sales in the company experienced ups and downs since 1960s; a scenario that would be referred to as the “Himalayas Chart.”  After 1977, the car sales at VWoA fell sharply over several years, leading to a season that would be referred informally as the “Valley of Despair.” The managers wanted to change the unhealthy cyclical pattern of sales that would set after the introduction of new models. In the 21st century, the concerted efforts to reposition the brand and advertise, together with production of new models saw the company’s vehicle sales rise to the competition with upscale brands. In 2001, senior executives under the leadership of the chairman Dr. Bernd Pischetsrieder began to broaden the global view of the company by reducing the company’s overrepresentation in the small car market. They diversified into mid-sized vehicles and contemporary segments such a sport vehicles utility and special-purpose vehicles (Austin, 2007, P. 455). Simultaneously, Pischetsrieder segmented operations upon two brands; the “classic” brand that partnered with Bently and Skoda, and the “sporty” brand that constituted the Audi grouped and produced vehicles such the SEAT, Lamborghini, and Audi. The immense development in the product offering gave rise to massive proposition and development of new models launched between 2004 and 2008. The implication of the product-diversification strategy would be another wave of market upsurge.

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