Ferdinand Porsche Volkswagen, Operation and Supply Management
Ferdinand Porsche together with his son and son-in-law, Anton Piech founded Porsche in 1931 as a design and engineering firm that sold it services to other automakers. It was until 1948 that Porsche produced its first car, a Porsche branded sports car. However, in early 1930s Porsche had been involved in the manufacture of Volkswagen also known as the "people's car," which led to the opening of the first manufacturing plant for VW in 1938. Porsche, the automaker firm had, by 2007 become the most profitable carmaker on the per unit basis, having only produced an average of 100,000 cars per annum. Porsche for three consecutive years was well-known and identified for the quality of its products.
However, earlier in the 1990s, Porsche saw its sales volume slump by more than 36,000 units and teetered on the verge of bankruptcy that it was almost taken over. The firm then saw a turnaround that was aimed at focusing on forging new core competencies in synchronized engineering and manufacturing; this also included expanding Porsche's market beyond the sports car. This led to approximately double production and sales level in just less than 6yrs. From earlier 2005, Porsche made its interest in VW known by raising its stakes from 11% to about 31%. In 2009, Porsche upped its shares in VW to 50.7% acquiring a controlling stake.
Both Porsche and VW have had a long standing relationship since the early 1930s despite their differences in revenue, employees and production units. The two firms having sharing familial bonds have jointly developed technologies together without fear of confidentiality.
[...] Is enabled Porsche to up its stakes to in VW, thus acquiring a controlling stake. In that case, Porsche, a 100,000 expensive sports car maker per annum, took over a national institution that makes and sells more than five million automobiles per annum. Acquiring VW will enable Porsche to harmonize and reduce its production cost especially with regards to electronics by spreading the 35% of the development cost incurred in electronics for 100,000 units spread over to the manufacturing of more than 2 million cars. [...]
[...] Alternatively Porsche should seek to amend the law at VW that states that a company owning 20% shares, such as Lower Saxony, can block strategic decisions made by the majority shareholders instead of a German law that sets it at 25%(The Telegraph). This will ensure it protects its control in VW, in terms of decision making. Most importantly, Porsche should endeavor to up its stakes in VW from 50.7 pc to 75pc so that it to seal a domination contract enabling to have the groups full financial control(The Telegraph). [...]
[...] Robert, and Richard Chase. Operations and Supply Management: The Core. 2nd ed. New York: McGraw-Hill Companies,Incorporated Print. [...]
[...] This led to approximately double production and sales level in just less than 6yrs. From earlier 2005, Porsche made its interest in VW known by raising its stakes from 11% to about 31%. In 2009, Porsche upped its shares in VW to acquiring a controlling stake. Both Porsche and VW have had a long standing relationship since the early 1930s despite their differences in revenue, employees and production units. The two firms having sharing familial bonds have jointly developed technologies together without fear of confidentiality. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
