Recovery after the Scandal of Volkswagen Cheated

        The companies may have to face so many issues when they are discovered violating the business and moral ethics, which their obligation to follow. If a company gets a bad reputation in the eyes of customers and investors, then it can be so damaging for them in different ways. This is what happened with Volkswagen, when they were found guilty of emission test scandal. The company sales went down, and they have to recall their vehicles all around the world. Moreover, their shares and sales went so low for the first time in their history, and things were absolutely devastating for them. This was the time for the company to get out of this trouble and look forward to regain its reputation and market value. It was certainly a big challenge to overcome. But they dealt with it by applying a proper strategy, where they settled the financial cases and paid fines, and recalled their vehicles. It helped them to gain space in 217, when their sales again started to experience growth (Boudette 2018)

        The company reviewed its overall strategy so that they can get back on track with the sales and profits as high as they were able to achieve in the past. The company made some structural changes along with altering their decision making processes, which focused on rebuilding the brand image and regain its position in the market. This scandal was a wakeup call for the company to stand up and look for every other issue to resolve, and get the direction back on track. They worked with great focus to cut costs in every possible manner. Moreover, the company adopted a decentralized approach in their management and allowed everyone to take part in this recovery period so that company can be made number one once again. The leadership processes for the company were renewed and reshaped, and company focused on its premier brands to regain the trust of shareholders and customers (McGee 2018)

References of Volkswagen Cheated

Boudette, Neal E. 2018. Volkswagen Sales in U.S. Rebound After Diesel Scandal. Accessed December 1, 2018. https://www.nytimes.com/2017/11/01/business/volkswagen-sales-diesel.html.

McGee, Patrick. 2018. What went so right with Volkswagen’s restructuring? Accessed December 1, 2018. https://www.ft.com/content/a12ec7e2-fa01-11e7-9b32-d7d59aace167.