Volkswagen Group In China Essay

5438 words - 22 pages

Executive SummaryIn the following report we analyse the Volkswagen Group in China by using the PESTEL method. It provides an overview of the five factors (political, economical, social-cultural, technological, legal).In the political part we introduce the political system in China and the relationship between China and Germany.Furthermore we discuss about foreign investments, China's Automotive Industry and joint-ventures in the economic part.Changes in China's social-cultural factors play an important role in VW's international business.Although China is a developing country, the technological situation isimproving very fast which is an advantage for foreign companies.In the legal part, the report shows the efficiency of the legal system forbusiness operations. There is a sign of ongoing improvement.Contents1.Introduction2.Current global and regional position of the company3.Political Environment (HU Jing Shi)4.Economic Environment (Benjamin Goetz)5.Social- Cultural Environment (CHEN Juan )6.Technological Environment ( Gema Repiso Romero)7.Legal Environment (BaYan QingGeLe)8.Overall recommendation and conclusion1IntroductionThe Volkswagen Group, headquarters in Wolfsburg Germany, is one of the leading automobile manufacturers in the world. Its history can be traced back to 71 years ago. On May 28 1937 the company was first founded. Since then the company has never stopped manufacturing cars and the business has became bigger and bigger. Until very today, the overall employees of VW Group around the world are 329,000. In 2007 the group sold 6.2 million vehicles worldwide and has 48 production facilities in 19 countries in international market. And VW Group is represented by 175 group companies that produce vehicles or offer serves. Volkswagen entered China in 1984. The group has 13 representative companies in China, undertaking parts delivery and service provision in addition to vehicle production. This report is going to analysis the external business environment in China by using the PEST(EL) framework.2Current global and regional position of the companyThe following tableau shows the key figures of the global situation on theone hand and on the other the situation of all Volkswagen subsidiariesand joint-ventures in China together.Comparing with other foreign automotive Companies the VolkswagenGroup is the biggest foreign car producer in China. The second and thirdare General Motors and Honda.Volkswagen holds 18% of the market share of China´s automotive sector.Global *1)China *2)Volume DataEmployees329,305 (2007)26,000 (2007)Vehicle Sales6,191,618 (2007)430 600 (2005)Financial Data, € MillionSales Revenue108,897 (2007)-Operating Profit6,151 (2007)294 (2007)*1) Volkswagen Annual Report 2007*2) http://en.wikipedia.org/wiki/Volkswagen_Group_China3Political EnvironmentTo enter the 21-century, with the China's peaceful rising and deepening of internationalization processes, China successfully and stably expands the political and foreign...

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