Volvo Group is a manufacturer that develops trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. It also provides solutions for financing and services. This international company is not only present in Western Europe but in several other regions around the world, such as in North America, Asia, East Europe and the Middle East, which confers it a strong global position and world class products. Volvo has a decentralized organisation, and sizeable in-house units that supply components, services and support to the business areas (Volvo Group 2004).
The company was founded in 1927, has today about 81,000 employees and production in 25 countries, and operates on more than 185 markets. Volvo's net sales 2004 amounted to € 22 billion.
Volvo Group, as indicated by its name, consists of various business areas which are Volvo Trucks, Mack, Renault Trucks, Volvo Buses, Volvo Construction Equipment, Volvo Penta, Volvo Aero and Volvo Financial Services. Its largest business units are Volvo Powertrain, Volvo 3P, Volvo IT, Volvo Logistics, Volvo Parts and Volvo Technology.
First, we are going to study their mission and vision statement using various theories to try and tell whether they are “well-written” or not. Then we shall analyse Volvo's policies for corporate responsibility and ethical behaviour and their outcomes. And we will eventually talk about the company's organisation for global operations.
[...] “Non-Discrimination The Volvo Group hires and treats its employees in a manner that does not discriminate with regard to gender, race, religion, age, disability, sexual orientation, nationality, political opinion, union affiliation, social or ethnic origin. Workplace diversity at all levels is encouraged” (Volvo Group 2005). We can see that Volvo Group seems to consider diversity as very important for the company. Furthermore, on Volvo Group's website, we can see this quote about diversity: Volvo Group recognizes the importance of valuing diversity as part of our current and future business success” (Volvo Group, 2005). [...]
[...] Then, we can also consider the mission and vision statements of Volvo Cars: Mission: be the world's most desired and successful premium car brand.” Vision: create the safest and most exciting car experience for modern families.” We can use the two models again. Firstly, with the UAD, we can see that they contain the first two part of the UAD: and as both verbs suggest an action and identify it vaguely. Then “premium car brand” and “modern families” include a social categorization. [...]
[...] Here we can see the global environmental standards for production plants: (Environmental data 2004, www.volvo.com) It is important to notice that the work of implementing environmental management systems covers the whole value chain, including product development, purchasing, sales and service. We can add that by 31 December Volvo production plants had been awarded ISO 14001 certification, representing 96% of all employees. Moreover, we shall enhance the fact that there are two key issues in Volvo's environmental programmes that are climate change and air quality. [...]
[...] The goal for each brand is to maintain a leading position and strengthen its market position. Ideally, each brand will be what the customer prefers in each customer category, thus strengthening the Group's total operations. Then, we mentioned Volvo's world class products. Actually the group supplies transport solutions for demanding customers around the globe and is renowned for listening to customers and getting involved directly in challenges involving their operations on land, in the air and at sea. Many of the company's solutions are developed in close collaboration with customers to ensure their specific requirements are met. [...]
[...] We can list three types of attitudes within the multinational enterprises: the ethnocentric attitude (which consists in bringing the home country's manners to the host country) and the polycentric and geocentric attitudes (which consist in adapting the management to the host country, to act in a more local way) (John Naylor 2004). A very interesting point about Volvo Group's organisation for global operations is that it combines a decentralized organisational structure, with a polycentric or geocentric attitude, which permit Volvo to be as close as possible to its customers; and an ethnocentric attitude, a company culture, characterised by Volvo philosophy describing Volvo's values, its corporate culture and the way Volvo works. [...]
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