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Skoda Auto From No Class to World Class in One Decade Revised Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 2535 | 401 Words (3 Pages) | Jan Kubes, George Radler | IMD : IMD443 |
A Word File
The major issues the automotive industry ran into in the year 2005 were the system of labor reforms and the way VW cut the wages of its employees and increased the working hours for their labor. This had an impact on the production of the Czech factor line of Skoda as in 2002, their annual labor rates were already 1/8th of their counterparts in Germany, thus there were considerable changes in the layout of the factory of Skoda because of it (libcorm.org, 2006).
Case Analysis for Skoda Auto From No Class to World Class in One Decade Revised
The major benefit the company enjoyed was an increase in recognition for its brand name. Before the acquisition, they were generally considered subpar in the automotive community, which was then altered by the production team of VW when they took charge of the company, this consequently had a positive effect on the growth of sales of Skoda as indicated in the graphs mentioned in the Case Study. The negative impacts for Skoda are negligible, if any, were that their interests for success colluded with those of VW, and in turn, their ideology was shifted to compete with other brands, and over time, it dissolved the core competency of Skoda.
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