Analysis of Social, Economic, Political, and Technological Impact on Volkswagen Group

1.The following text describe problem situations. Read the text and note down the problem signaling words and expressions. (5 points)
                                                   
The Lodge Bistro Chain 

1. Joyce Lodge opened her first café in 1989. In 2010, Joyce Lodge retired. Her daughter Patricia gave up her job as a management consultant to become the chief executive officer of the Lodge chain. At this point, the business remained reasonably successful but experienced growing competition in the sector. Indeed, the business faced an increasingly threatening external environment. The economy moved into recession. The shareholders of the business were becoming increasingly nervous and began to put pressure on Patricia to respond actively to these challenges.  There are staff problems across the chain. High turnover, particularly among serving staff and poor performance.

2.Below are mixed SWOT factors of KFC case study. Fill the chart to Identify each SWOT factor. (2points each)

a.With over 15,000 establishments in 120 countries, KFC is an internationally recognized venue.

b.Increasing numbers of competitors.

c.Serving high-fat foods; considering how health-conscious the public is these days, greasy chicken is not going to cut it anymore.

d.KFC is in the prime spot to dive into the vegetarian market. Adding new vegetarian options will improve the relationship between KFC and health-conscious and vegetarian consumers. 

e.KFC became popular thanks to its good chicken.

f.Raw material prices are rising.

g.By maintaining the same price point with new menu options, KFC is positioned to enter a new market without sacrificing the beloved chicken-
focused meals. 

h.KFC follows a franchise management system, meaning each one is individually managed. It is not uncommon for one KFC to have high reviews while another, just down the street, is collecting bad press.

i.Alongside KFC, Taco Bell and Pizza Hut also share the same corporate owner brands. Brands have the influence, power, and resources to improve KFC as a restaurant.

j.Introduce new products fish and deals menu that will attract more customers.

3.Read the extract carefully and apply the problem-solution pattern of analysis to it. Use numbers only to refer to each answer. (5marks each)

Colston & Colston
(1) Colston & Colston is an independent firm of chartered surveyors and commercial property consultants with extensive contacts throughout the West Country and South Wales.

(2) They had one bookkeeper using Sage desktop accounting and an accountant dealing with year-end filing and tax advice.

Problem Signaling Words and Expressions

(3) They had numerous files of paper in the office; sales invoices, purchase bills, expenses, and bank statements to name but a few of what they had to handle.

(4) Also the flow of information was not satisfactory for they were receiving the compliance side of an accounting function but not any management reporting and wanted to be in touch with their data to start tracking how various areas of the business were performing.

(5) Angela Ashworth of Purple Lime (a team of experienced and practiced accountants) met with Alistair Colston and his fellow partners.

(6) Angela introduced the firm to the world of Xero cloud accounting software and some of the associated apps which could be used to run their business.

(7) Live bank feeds were integrated with Xero.

(8) Following on from that Receipt Bank was integrated with Xero for all costs and expenses to be captured and finally, Re-Leased was integrated at the front end which is a commercial and residential property management system.

(9) The business now has a tailored cloud based system and the office is free of many files of paper.

(10) All documents are stored in the cloud.  

In about 500 words,  analyse how Social, Economic, Political and Technological factors might affect  Volkswagen Group. Define each factor with examples in context.

Volkswagen Group 

Volkswagen Group is the world’s second largest automotive manufacturer. In addition to their eponymous passenger car brand, Volkswagen Group is responsible for eleven other major cars, motorcycle, and commercial vehicle brands, including Audi, Seat, Skoda, Ducati, and Scania.
While the global company has continued to post impressive numbers for both profit and market share, it appears to be facing a mixed outlook for the future.

Both the United States and the United Kingdom are major markets for Volkswagen Group’s many vehicles. Unfortunately, there are serious doubts about the future of trade regulations between Germany the company’s home base and those countries. Throughout 2018 and 2019, the United States has repeatedly shown its willingness to place tariffs on goods imported from the European Union. Until now, the automotive industry has not been subject to these tariffs, but there’s a very real risk that might change.

 On the plus side, consumer spending is growing across all corners of the globe. This means that consumers are more willing than ever to purchase consumer goods such as electronics and, to an extent, automobiles. Increased consumer spending is especially significant for automotive brands in poorer markets, where consumers may have previously purchased no vehicles whatsoever. In wealthier markets, increasing consumer spending is still beneficial as it results in more expensive model choices and the purchase of various extras.

At present, the most promising green technologies for the automotive industry include electric motors, batteries, and hydrogen fuel cells. Volkswagen Group has already shown its ability to produce battery-powered electric cars with various Audi and Porsche models. 

While consumer spending is growing, consumers’ desire to drive isn’t. For reasons both financial and environmental, many individuals are choosing to give up car ownership and travel with bicycles, scooters, buses, trains, and ride-sharing apps such as Uber or Lyft. This could present a major downturn in sales both for Volkswagen Group and the industry.