Core Competencies Of Volkswagen

2. Financial Resources refers to whether the organisation has access to funds for investment and development, its financial stability and the possibility of loans. Volkswagen the group (2016) highlighted that the company had sales revenue of 213 billion euros in 2015 which indicates that company is somewhat financially sound.
3. Human resources are the people employed by the organisation whether permanent or temporary and what value they bring to the organisation. According to Volkswagen the Group (2016) the company has over 600000 employees producing over 40000 vehicles and works in other field of business. The knowledge, skills and a good balance between demand and ability provided by these employees contribute to the competitive edge achieved

Therefore, as an industry leader according to Volkswagen the group (2016) innovative technologies, highly qualified staff with extra -ordinary skills and environmentally sustainable automobiles is the core competencies that provide Volkswagen with the competitive edge over its competitor. Although these core competencies are what identifies the company and distinguish it from its competitor’s highly qualified staff and extra -ordinary skill seems to be the most important competency of the company. This is because innovation and environmentally sustainable automobiles are powered through the bright and intelligent minds of the company’s employees. These talented and skilled employees provide Volkswagen with access to a variety of markets thus significantly contributing to the technological innovations of the products making it difficult for competitors to imitate. According to Volkswagen openings (2016) without highly qualified staff possessing extraordinary skills, Volkswagen would have no

As stated by Volkswagen group (2016) the company operates many plants worldwide where production is done for that respective local market and different model are produced in different plants. These strategic decisions were taken by the company because the cost is lowered when special parts and cars have to be shipped shorter distance, additionally; each plant producing a different model reduces the assembly cost to the company. Materials are purchased from suppliers worldwide they are stored until they are needed in the production line. The “Just In Time” (JIT) approach is used to handle all raw material purchase. According to Volkswagen (2016) the company uses a highly efficient global network to manage its supply chain. The company’s initiative of FAST (Future Automotive Supply Tracks) focuses on digitization; this is used to highlight investments and make efficient use of resources. The system allows suppliers to be involved in the innovation within the group and contribute ideas towards the development of vehicles at an earlier stage. The manufacturing or assembling is done by the combined efforts of robots and employees. The major parts of the operation are done by robots in an effort to reduce wastage, energy and time while the employees would do the quality checks. According to Mc Martin (2016), Volkswagen