Audis Consumer Bargaining Power

Runninghead:LEADINGTHROUGHDIGITAL LEADINGTHROUGHDIGITAL NameoftheStudent NameoftheUniversity Authorsnote 1LEADINGTHROUGHDIGITAL TableofContents Task2-CaptureInsights....................................................................................................2 Task3-MakefastDecisions..............................................................................................4 Task4-AcquireandEngageTalents.................................................................................6 Task5-CreateaDigitalReadyCulture.............................................................................8 Task6-SteerCollaboration..............................................................................................10 Task7-SelectyourLeaders.............................................................................................11 Concludingremarks..........................................................................................................12 References.........................................................................................................................14 2LEADINGTHROUGHDIGITAL Task2-CaptureInsights AudimayusePorter'sFiveForceModeltounderstandtherivalsinthemarketanduse PESTLEAnalysistounderstandtheAudimacroenvironment(Gamble,ThompsonandPeteraf 2019). Porter'sFiveForces Figure1 Source:CreatedbyAuthor 1.Buyerpower(moderate):Audi'sconsumerbargainingpowerhasimprovedduetomore rivalry,rulesandregulationsaboutcustomerprotectionandcustomerexperience concentration.Audihasthereforeconcentratedonthecreationandpreservationofcustomer experience. 2.Thethreatofsubstitution(moderate):Goodscreated,forexample,byBMW'srivals contributetoathreatofsubstitution.Audi'srenown,productinnovationandsuccesshelpto reducethethreatofsubstitutionofitsbrandintheautomobileindustry. 3LEADINGTHROUGHDIGITAL 3.Thethreatofnewentry(low):Theautomobileindustryhasgreatbarrierstoentryandexit. Highcompetitionisanimportantfactorthatthreatensnewbusinessentryandrequiresahuge amountofmoneytostartanewbrand(Bruijl2018). 4.Sellerpower(low):Audi'slargebusinessisthecauseofitssuppliers'lowbargainingpower. Whenpurchasingrawmaterial,Audiisoperatingwithmanysuppliers,andmostsuppliers relyonAuditoearntheirincome.Thesuppliersshallcomplywiththecompany'slaws. 5.Competitive(high)competition:Theautomobileindustryisverycompetitivesincethere aremanyvehiclebrandsglobally.AudihasmanyrivalssuchasTesla,BMWandPorsche. Competitionbetweenbusinesseshasincreasedconsumerprotectionandexperience(neren, ArarandYurdakul,2017). PESTAnalysis AudiusesPESTinthefollowingwaystogetinsightintomacro-environmentaltrends: Figure2 Source:CreatedbyAuthor 4LEADINGTHROUGHDIGITAL 1.Politicalfactors:Audioffersservicestomanycountriesandisthusinfluencedbythese countries'governmentpolicies.Audirevenueswereadverselyaffectedrecentlybythetrade warbetweenChinaandtheU.S.China'smarketisAudi'smajormarket,andadeclineinthe country'sgrowthaffectedthesalesofAudi(VZQUEZetal.,2018). 2.EconomicFactors:GDPisproducedinthemajorityoftheU.K.byservicesandtourism sectors.Allsuchenterprisesneedcarinstallations,andAudioffersthecompanyextensive, feasiblechoices.AccordingtotheEuropeanCommissionestimate,UKGDPisexpected below5%(Stenberg2017).ThisensuresthatAudi'soveralleconomicconditionisstableand feasible.Theinflationrateis0.8percent,whichmeansthateconomiesaremorecompetitive withpeoplelessinterestedinpurchasingcommodities. 3.SocialFactors:Audi'sdemandintheU.K.isincreasing.Thepeoplehavehighdisposable revenuesandtendtopurchasequalitygoods.Theglobaleconomy'sdownturnhasaffected thecarindustryandreducedprofits.Audicars'demandisalsodeclining. 4.Technologicalfactors-Audiintroducedvariabletransmissionthatimprovedfuelandpower provisiontohigherlevels.Audiisalsoworkingonintroducingnewelectricvehiclesand aimstoavailthemtothemarketby2025. Task3-MakefastDecisions Decisionsarethepsychologicalmechanismbywhichanactionofvariousalternativesis chosen.Anaction,arecommendationandanopinionaretheresultsofeachdecision-making phase(Gallivanetal.,2018). 5LEADINGTHROUGHDIGITAL Basedontheproblemsinvolved,Audicanusepsychological,cognitiveorregulatory decision-makingstyles.Nomatterwhatstyleleaderschoose,DanielKahnemanhasproposed cognitivepolicytheoriestochoosethemostsuitablepolicysolution. Optimizingvs.Satisficing:Tofindtheoptimumchoice,theorganizationmustgatheras muchinformationaspossible,includesoptimizing.Whencompaniesreceivesufficientdatafrom thesources,theywillmaketherightdecision.Ontheotherhand,satisficingmeansoperating withminimalknowledgethatislessthanoptimal.Obtainaperfectbusinessdecisionfroma smalldatabaseisdifficultfortheorganization.Duringthedecision-makingprocess,the individualhasaccesstolimitedinformation.Thisimpedesrealobjectivityandcanmakea defectivejudgment.Therefore,thedecision-makersofAudihavetobeabletoidentifythe requisiteimperfectionsandtendtodecidequicklybutlessperfectlyaccordingtotheriskof errors. Intuitivevs.Rational:Acquiringknowledgewithoutanyreasonisreferstointuition, andrationalistheuseoflogicandreasontomakesenseofathing.Withoutproperreason,any problemcannotbesolvedinbusiness.Allpeoplehaveaconscious,subconsciousmind.The unconsciousmindquicklyconsolidatesknowledgeandalmostinstantlymakesdecisions.The consciousminddemandsevenmoreeffortasthemindmakestherightdecisionusinglogicand rationality. 6LEADINGTHROUGHDIGITAL Figure3 Source:CreatedbyAuthor Combinatorialvs.Positional:Iftheobjectiveisspecificallydefined,weuseit combinatorial,asitclearlyandpreciselydefineseverytarget.Ontheotherside,weusethe positionalstyleifthetargetisnotspecifiedincomparison.Whendeciding,thecombinatorial playersdecidetorelatetheoriginalpositiontotheoutcome.Thedecision-makersattherolefeel thatanunpredictablefuturecanmeetacertaingoal. Followingthedecision-makingprocessesdescribedearlier,themanagerandanother decision-makerofAudiwilldiscussdifferentoptionswithintheCommunitytomakequick decisionstorespondrapidlytochangesinthemarket.Anydecisionendsinavoiding,solvingor seekingsolutionstotheproblemsrequired. Task4-AcquireandEngageTalents HRMalsoplaysanimportantroleingainingacompetitiveadvantageandallother functionsofthecompany.Everyemployeehasdifferentskills;agoodlevelofskillandtalent willmakeabusinessdifference.Digitaltransformationisamarketchallenge.Thedigital 7LEADINGTHROUGHDIGITAL programissueforAudioranyenterpriseisnotthelackoftechnologybuttheabsenceof expertise(SavaneviienandViliauskait2017).Thatmeansthatthebusinesslacksexpertise anddoesnotacquiretherightskills.Businessescanfocusonthreeareastoattractthenewdigital dreamteam. Reimbursementfortheskilledpeople:Companiesmayfindittemptingtooutsource theircapabilities,butnowisthetimetothinkabouttheobjectives.Asdigitalasabusiness becomes,itsdigitalassetsaremoreimportant.Audimustprovidedigitalperformerswith versatilityandcommitmentonsite.Audimustemploytop-leveldigitaltalentstochangethe digitalprocessinitsindustryandhirethemfortheenterpriseinthemostcost-effectiveway. Audiwillberequiredtopaythemaheavysum,butAudiwillbereturnedwithapremiumifit canemploytheappropriateteam(DinnenandAlder2017).Thebestwaytorecruitpeopleisto paycorrectlyforthem.Acentreofoutstandingtalentisanattractiveandtransformativenucleus. Audineedstodevelopitsdigitaltransformationteaminsteadofoutsourcing. RedesignH.R.:Audineedstore-createthehiringfunctionfromscratchtogainand involvetalent.Allaredigital,andeveryworkermustknowthetechnology.Intheirorganization, Audishouldincorporatenewtechnologyfortrainingtheirstaffsinceitisdifficulttoimprovethe efficiencyofemployeeswithoutsufficientawarenessofemergingtechnology.Humanresources redesignwillenabletheorganizationtoimproveitsstaff'sefficiencyandoptimizeitsbenefit. TheH.R.teammustalsohireworkerswhocanmeetthejobneedsandbuildacommittedteam immersedinadigitalculturebasedonresponsibilities(Meyers2020).Inaddition,H.R.should educateandinspirestafftolearnprofessionallytorecognizethedigitalrequirementsofan organization. 8LEADINGTHROUGHDIGITAL Createavaluepropositionthatreflectsdigitalstaff:Digitaltalentrespectsmoneyand seeksreputation.ThedreamofmanyskilleddigitalwarriorsistoworkwithAudi.Audimust offeritstalentedindividualsinnovativeandinventiveopportunitiesandtransparentandquick careeradvancementandrecognizetheirinfluence. Task5-CreateaDigitalReadyCulture Digitalreadycultureissharedandmutuallysupportedbyhigh-performanceprinciplesin anorganizationaladvancementthatimplementsadigitallycompatiblebusinessatmosphere. Cultureisthemostimportantthingtopushadigitaltransitioninanenterprise.Newwaysof thinkingandworkingtogetherthroughthewholeenterprisearenoteasytointegrate(Fleisherand Bensoussan2017).Formalandinformalleaderswillhelppromoteadigitalcultureinthe followingwaysinsupportofdigitaltransformationwithinAudi: 1.Definingdigitalprinciplesofthecompany:Tocreateadigitalculture,Audineedsto believethatemployees,peopleandsocietywillbuildapositivefutureinbusinessbybeing moreconnected,collaborative,agile,adaptive,transparent,data-driven,diversifiedand accessible(Wokurkaetal.,2017). 2.Assesstheexistinglocation:Audialreadyhasatraditionofitsown,andthecompanyneeds toretaincertainfacets.Audiwilldetectwheretheorganizationdigitallyfallsshortwhile performingaGAPanalysis.TheresearchexamineswhetherAudihasthetechnologies neededforbuildingadigitalcommunity,therightprocessesandskilledstaff. 3.Todeveloptechnology:Audimusttheninvestintechnologytolearnnewskillsandbeas goodaspossible.Formalorinformalleadersmayprovideopportunitiesforemployeesto 9LEADINGTHROUGHDIGITAL introducethemselvestoemergingtechnologyanduseinteractivetechnologiesto communicateandcreatebusinesssilos. 4.Perfecttheprocess:GivenAudi'sbroaderecosystemofalliances,suppliersandconsumers, leadersshouldprovideinsightsintotherealexperience.Theleadersneedtobedata-driven andagiletodothings(Waldfogel2018)s. 5.Enablepeople:Theemployeesneedtoformallytrainemployeestoinitiatenewtechnology actions,proceduresandthoughtmethodstostimulatedigitalculture.Theleadersshouldtake theoppositementoringinitiativetoeducateandencourageemployeestodevelopamore openculture. 6.Ensuredalignmentofthecompany:TheleadersneedtoensurethatAudihasthedigital principleslinkedandsynchronized.Ifthedigitaltransitiondoesnotmatchorganizational principles,thecompanycannotmaintainitselfatanystage(Hemerlingetal.,2018). Audi,forexample,wouldliketotrainallremoteemployees.Audidigitalvalueisto digitizeprocessesandusedigitalserviceroutinely.Consequently,Audiassesseswhetherthe enterprisehassufficientmeansandresourcestotrainitsemployeeswiththeGAPanalysis. Otherwise,Audibudgetstokeeptheoperationsmooth.Theleadersthenformallyandinformally developtechnologyandtraintheirworkers.Theleadersassumeresponsibilityfortheprocess andthecreationofdigitalculturewithrealexperience.Finally,whentheemployeesarewell educated,theleadersallowemployeestooperateinanopenculturethatensuresthatthe objectivesareconsistentwithAudivalues. 10LEADINGTHROUGHDIGITAL Task6-SteerCollaboration SteerCollaborationmeansthatpeoplemakeaneffortandcontributetotheproductivity ofthewhole.SteerCollaborationallowstheorganizationtosavetime,buildteamtiesand enhanceprojectmanagement.Timeisoneofthekeyelementsforeveryorganization,asthe moretimeitcanspend,themoretimeitcanmake(Driskell,SalasandDriskell2018).When peopleworkwitheachother,theysavetime.Thesteercollaborationwilleaseproblemswithout collaborativeprojectmanagement.Audiwillusethefollowingcollaborationtoolstomake individualsmakedecisionsandgiveleadersvisibilitytoorganizationalgrowth. Communication:Themanagersmustcommunicatewiththestaff.Itcouldalsobevery hardtointeractwithalargegroupandtaketheirthoughtssimultaneously.AudicanuseSlack, Yammer,Chanty,etc.,tocommunicateonline(Landon,SlackandBarrett2018). File-Sharing:Audiwilltakeideasfromcustomers,staffandotherstakeholdersto contributetodecisionmaking.Beforefinishinganyproject,Audiwillreceiveinputfrom customersandmonitorthemodifications.Toguaranteetheprivacyofparticularprograms,the organizationshouldenforceadministrativeprotection.Thesecanbemanagedthroughtheuseof digitalresourcestosharefiles.Themostsecureandcommonlyusedfile-sharingtoolsareaG- Suit.Therearealsomanyfile-sharingtools,whicharecommonlyusedlikeFileWhopper,One Driveforbusiness,Dropboxforbusiness,BoxBusiness,etc.;allofthesearesecureandensure theproperencryptionofthefiles. ProjectManagement:Audihastomakecriticalprojectdecisions.Thebusinesshas respectedpeoplewithspecialabilities.Withthehelpofproposalsandselectingtalentin programs,individualscanthenmakedecisionsandrecognizeleaders(Radujkovi,M.and 11LEADINGTHROUGHDIGITAL Sjekavica2017).Supposethecompanycanhandleitsprojectscorrectly.Inthatcase,the project'sresultscanincrease,theorganizationscandeterminethebudget,thetimeline,andthe projectscopemoreeffectively,andtheproperuseofthecompany'sresourcesavailable. OnlineCollaborationtools:Thereareseveralmethodsusedtofacilitatebusiness communicationmechanismsforonlinecooperation.Flowdock,GoToMeeting,Slack,Red Booth,ProofHubetc.,arewidelyusedinonlinecommunicationtools.Withvariousonline collaborationplatformsAudicanenhanceitsworkflow.Thetoolsdecreasethegapbetween workersandimproveproductivityoverall.Thestaffwillworktogetheronprojectsconcurrently, enhancecoordinationandminimizewaste,andallthesehaveledtodecisionsandvisibilityfor leaderstoworkproperly. Task7-SelectyourLeaders Theorganizationneedstorepresentleadershiptalenttoacceleratedigitaltransformation effectivelywithinAudi.Audiwillachievehigherincomeandmarketshareiftheystayaheadof thedigitaltransition.Audialsorequiresadigitalleaderwiththefollowingqualitiestoaccelerate digitaltransformation: Cultivatingagrowthmentality:Leadersindigitaltransformationmustlearnand discover,asleadersfaceseveralobstaclesthattheyhavenotseenbefore.Leaderswithagrowing senseofthoughtwilltakecoursesandsupporttheirteams.Theseleadersarecreative, collaborativeandwillingtolearnanddevelop. Communicationandpowerpriority:Ambiguousconversationsfrequentlyoccurwith thehelpofemployees.Ifworkersdonotrealizewhattheorganizationneeds,theyare disengaged(Wang2018).Communicationsarethestrongeststrengthofleaderswhocan 12LEADINGTHROUGHDIGITAL influencepeople.TodigitallytransformAudi,workersneedtoknowthecriteria,andleaders shoulddirectthemthroughstrongcommunicationskills. Innovationandchangecapacity:Theabilitytoevolveandchangemustbethemost significantleader'scharacteristic.DigitalCIOsareseekingI.T.opportunitiestoreducecosts, increaserevenues,andsupportorganizationalgrowth.Throughplanningandresearching appropriately,leaderscannavigateprogressandturnAudidigitally.Inreality,digital transformationhasinterruptedconventionalbusinessmodelsandfinallydisturbedthem.Atthe sametime,theaspirationsofconsumersaregrowing,andcompaniesworldwidearecontinuously pressurizedtostartnewproductsandserviceseverfaster.Inreality,acompany'ssurvivaltoday oftenreliesonitscapacitytoincorporateconstantinnovationintoitsinitialbusinessmodel.This wholechainwillnotbeaccomplishedwithoutaco-workerleadermotivatingtheirteamto improvetheirabilitiesandexpertisetomaintaintheflowofprogress. Leadersmustinspiretheirteamsandjointhem:Incorporateculture,teamshavebecome amoderntrend.Legacyfunctionsenabledagile,cross-functionalteamstocometogetherfor weeks,monthsorevenyearstodevelopprojectsorinitiatives.Today'sleadersarerunbymany internationalteamswhomustbeencouragedtooperatewithversatilityandautonomy,renewal andcreativitybeingthecoreofthisoperation,ratherthanbystaticgroupsthatcarryout management-basedplans.Leadingthesetask-focusedteamsneedsanewrangeofskillstolead ratherthanbeauthoritarianbyconvincingandinspiring. Concludingremarks Innovationandimprovementsareabigpartofthemarket.Thecompanyaroundis digitallytransformedbusinessandongoingtomanythreats.Digitaltransformationincorporates 13LEADINGTHROUGHDIGITAL digitaltechnologytoconductacompanyonadigitalplatformandprovidevaluetocustomers. ThestudyaddressedthedigitaltransitiontakingplaceinAudi.Theorganizationhasfaced severalthreatsduringtheprocess.Tomakechanges,thecompanyfirstnoticedthechangesinthe marketusingcompetitivemethodslikePestleandporter'sfivepowers.Tomakefast-changing decisions,AudifavouredDanielKahneman'smethodsbasedonvariouscircumstancesand developingandengagingskills;Audifavouredpayingtherightnumber,redesignH.R.,and buildingvalueforthedigitaltalents.Audibelievesitisnecessarytobuildadigital-readyculture andusestheleaderstopromotetherightculturewithinthecompany.Usingcommunicationtools, Audienableseachpersontocontributetotheorganizationprocess.ItisrecommendedthatAudi choosethebestleaderstomakeanappropriatedigitaltransitionwithinthebusinessculture. 14LEADINGTHROUGHDIGITAL References Bruijl,G.H.T.,2018.TherelevanceofPorter'sfiveforcesintoday'sinnovativeandchanging businessenvironment.AvailableatSSRN3192207. Dinnen,M.andAlder,M.,2017.Exceptionaltalent:howtoattract,acquireandretainthevery bestemployees.KoganPagePublishers. Driskell,J.E.,Salas,E.andDriskell,T.,2018.Foundationsofteamworkand collaboration.AmericanPsychologist,73(4),p.334. Fleisher,C.S.andBensoussan,B.E.,2015.Businessandcompetitiveanalysis:effective applicationofnewandclassicmethods.F.T.press. Gallivan,J.P.,Chapman,C.S.,Wolpert,D.M.andFlanagan,J.R.,2018.Decision-makingin sensorimotorcontrol.NatureReviewsNeuroscience,19(9),pp.519-534. Gamble,J.,ThompsonJr,A.andPeteraf,M.,2019.EssentialsofStrategicManagement:The QuestforCompetitiveAdvantage,6e. Hemerling,J.,Kilmann,J.,Danoesastro,M.,Stutts,L.andAhern,C.,2018.It'snotadigital transformationwithoutadigitalculture.BCG,Boston,Massachusetts,USA. Landon,L.B.,Slack,K.J.andBarrett,J.D.,2018.Teamworkandcollaborationinlong-duration spacemissions:Goingtoextremes.AmericanPsychologist,73(4),p.563. Meyers,M.C.,2020.Theneglectedroleoftalentproactivity:Integratingproactivebehaviorinto talent-managementtheorizing.HumanResourceManagementReview,30(2),p.100703. 15LEADINGTHROUGHDIGITAL neren,M.,Arar,T.andYurdakul,G.,2017.DevelopingcompetitivestrategiesbasedonSWOT analysisinPorter'sfiveforcesmodelbyDANP.JournalOfBusinessResearch-Turk,9(2), pp.511-528. Radujkovi,M.andSjekavica,M.,2017.Projectmanagementsuccessfactors.Procedia engineering,196,pp.607-615. Savaneviien,A.andViliauskait,B.,2017.Practicalapplicationofexclusiveandinclusive talentmanagementstrategyincompanies.Business,ManagementandEducation,15(2),pp.242- 260. Stenberg,J.A.,2017.Aconceptualframeworkforintegratedpestmanagement.Trendsinplant science,22(9),pp.759-769. VZQUEZ,M.L.,HERNNDEZ,J.H.,HERNNDEZ,N.B.,SALVATIERRA,J.A.A.and BARYOLO,O.G.,2018.AframeworkforPESTanalysisbasedonfuzzydecision maps.Espacios,39,p.13. Waldfogel,J.,2018.Digitalrenaissance:whatdataandeconomicstellusaboutthefutureof popularculture.PrincetonUniversityPress. Wang,F.,2018.SocialjusticeleadershipTheoryandpractice:AcaseofOntario.Educational AdministrationQuarterly,54(3),pp.470-498. Wokurka,G.,Banschbach,Y.,Houlder,D.andJolly,R.,2017.Digitalculture:Whystrategyand cultureshouldeatbreakfasttogether.InShapingthedigitalenterprise(pp.109-120).Springer, Cham.