Winterkorn vows the turnaround of the U.S. business is his “no. 1 priority.” But there’s only so…

Winterkorn
vows the turnaround of the U.S. business is his “no. 1 priority.” But there’s
only so long any management can put up with nearly $1 billion annual losses. Says
one executive close to VW: “For the first time in some time, the phrase ‘If we
are to stay in the U.S.’ precedes a lot of conversations at VW.”

1. Does the
trouble at VW suggest that VW executives confused business strategy with
advertising (a non-strategic marketing activity)?

2. What are
three essential elements that you would prefer to see in an ad campaign which
would parallel the message in VW’s business strategy?
»

Winterkorn
vows the turnaround of the U.S. business is his “no. 1 priority.” But there’s
only so long any management can put up with nearly $1 billion annual losses. Says
one executive close to VW: “For the first time in some time, the phrase ‘If we
are to stay in the U.S.’ precedes a lot of conversations at VW.”

1. Does the
trouble at VW suggest that VW executives confused business strategy with
advertising (a non-strategic marketing activity)?

2. What are
three essential elements that you would prefer to see in an ad campaign which
would parallel the message in VW’s business strategy?

3. To help
answer the question of whether VW should plan to stay in the U.S., what
information would executives need to consider?

4. How do
you explain the relative success of VW in Europe (paragraph 2) given its
failure in the U.S.?

5. Does this
case teach us something about the classic debate over “style versus substance”?
If it does, how does what you learned apply generally to formulating a business
strategy?

»

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