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Task 4: Explain how their style of organisation helps them to fulfil their
purposes (P4)
1. Explain how the way in which Volkswagen is organised helps them to achieve their
purpose and aims as stated in the annual report. In your explanation identify the
chain of command or the line of control.
2. Explain how the way in which Volkswagen makes a strategic plan helps them to
achieve their purpose and aims as stated in the annual report. In your explanation
identify the chain of command or the line of control.
The purpose of Volkswagen AG is to make a high profit. Their main aim is to become the biggest
multinational of the world in the vehicle industry. They want to be settled in all the countries of the
world.
Geographical area
Volkswagen AG is headquartered in Wolfsburg, Germany. Volkswagen AG has factories in 20
European countries and in other 11 countries in the Americas, Asia and Africa. They sell their
products in around 150 countries. When they are in different and many countries, they can make a
high profit. Knowing in which countries they are and what countries they not they can expand the
countries they are and settle in countries they are not. This information is useful and trough this
information they can reach their aim and purpose which is make a high profit and become the
biggest multinational. In countries, they are not so big, they can put more effort in it to make it
bigger. By doing this they can make money and also reach their aim which is becoming the biggest
multinational.
Functional areas
Volkswagen AG has the finance, marketing, production, customer service, sales and human resource
department. By having different departments their work can be done easier and they can reach every
purpose and aim. The financial department of Volkswagen AG keeps records of financial activities
and provides managers with information that they can use in decision making. This information is
useful, because they know if they are doing good or not. If they are not, they should improve it to
make more money to reach their purpose which is make a high profit. At the financial department,
they know if there is enough money to be settled in more countries or not. If not, they should work
harder to make money and operate in more countries to reach their aim which is becoming the
biggest multinational.
The marketing department of Volkswagen AG is responsible for identifying, anticipating and
satisfying customer requirements. The marketers of Volkswagen AG have an important say in
deciding: the products that Volkswagen AG produces, the prices charged, the promotion to
encourage customers and the places where the goods are sold. Through the promotion of the
marketing department they can get the attention of more people to become their customers. If they
get more customers through the information they can make more money and by getting more money
they can operate in more countries. By doing this they can reach their purpose, because they make a
high profit and also reach their aim which is becoming the biggest multinational, because they settle
themselves in more countries.
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