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Volkswagen Organizational Structure

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Volkswagen Group
Basically, Volkswagen Group uses a global product division. This structure is arranged in which domestic divisions are given worldwide responsibility for product groups. The company’s business activities can be separated into the Automotive and Financial Services.
“All brands in the Automotive Division – with the exception of the Volkswagen Passenger Cars and Volkswagen Commercial Vehicles brands – are legally independent separate companies. The business activities of the various companies in the Volkswagen Group focus on developing, producing and selling passenger cars, light commercial vehicles, trucks and buses. The product portfolio ranges from motorcycles through fuel-efficient small cars down to luxury vehicles. In the …show more content…

As we see that Volkswagen Group has its own separate board of directors, their marketing strategies, their management system, and also a separate annual report proving that they are decentralized by delegating the task to each and every member of the company. Based on Greet Hofstede’s model of Cultural Dimension, Volkswagen Company have a lower power distance where they dislike controlling and showing expertise. For example, if there is any mechanical problem with the operation sectors, the production and manufacturing divisions, managers and employees usually work together to solve out the problem. Co-determination rights are comparatively extensive and have to be taken into account by the management. A direct and participative communication and meeting style is …show more content…

Volkswagen has better projection of product design and a good balance of matrix organization. As Volkswagen follows a decentralized decision making system, they are more open to ideas and allow the lower management to make decision. This proves the confidence of Volkswagen Company on its employees and allows good communication between in the management and operation departments. Volkswagen also introduce a trainee program, “StartUp Brasil” in Brazil which features an international module and gives talented young with above average qualifications start in the company. This shows that how Volkswagen is committed to economic and social sustainability and has excellent organizational arrangement to position their product in global

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