Volkswagen: Finance Missteps

Course Categories Ratings:

1. Ethics: 9/10 - The case is heavily centered around the unethical decisions made by VW, their impact on the company's reputation, and the steps taken to amend these issues.
2. Finance: 8/10 - The case explores financial decisions that led to the scandal and discusses the financial implications of the scandal and subsequent recovery.
3. Strategy: 8/10 - VW's aggressive growth strategy is a key factor in the narrative, with a detailed look at how this strategy backfired and was later realigned.
4. Sustainability: 7/10 - The discussion of VW's transition from diesel to electric vehicles touches on sustainability issues, though it is not the main focus of the case.
5. General Management: 7/10 - Management's role in creating a high-pressure environment, their decision-making process, and changes in corporate governance are addressed in the case.

Weaknesses of this Case Structure:

1. Depth of Financial Analysis: While the case addresses financial implications and decisions, it lacks in-depth analysis of VW's financial position and does not use enough financial data to support its assertions. For instance, a detailed balance sheet analysis before, during, and after the crisis could provide a richer understanding of the financial impact.
2. Scenario Description: The case does a fair job of painting a broad picture of the scandal but could provide more specific examples of how VW's decisions played out in real-world scenarios. This would help students better understand the implications and consequences of VW's actions.
3. Focus on Leadership: The role of VW's leadership in the scandal and in the company's recovery is underexplored. Detailed analysis of leadership behavior and decision-making during the crisis could offer insights into crisis management.
4. Marketing Aspects: The case does not delve into how the scandal affected VW's brand image and market position, and how VW undertook reputation management and regained customer trust.

Strengths of this Case Structure:

1. Ethical Focus: The case effectively highlights the ethical considerations and implications of VW's actions. This is a significant strength, as it provides an opportunity for students to explore business ethics in a real-world scenario.
2. Strategic Focus: The case offers a strong narrative of VW's strategic missteps, their implications, and how strategy was restructured in response to the crisis.
3. Recovery Narrative: The case includes a strong discussion of how VW recovered from the scandal, including changes in corporate governance and strategic focus. This narrative provides valuable insights into how companies can bounce back from significant setbacks.
4. Real-world Context: The case is based on a real-world event that had significant global implications, making it highly relevant and impactful for students. It exposes students to the complexities of managing a large multinational corporation during a crisis.