How Volkswagen Escaped Annihilation

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How Volkswagen Escaped Annihilation
Summary of the article
In summary, the article presents the way Volkswagen Company escaped a nearly-fatal crash after the diesel cheating scandal. A company with vigorous corporate edifice experienced a close to collapse risk as it was involved in one of the biggest scandals in automotive history (Campbell et al. 1). Ideally, it was revealed that the company demonstrated their systematic determination to fraud on the emission trials. The employees developed software that granted the diesel cars seem cleaner than it was possible. As a consequence, it brought the firm to its knees and even terminated the career of its chief executive officer who had served for a long time.
Ways Volkswagen managed to avoid the worst-case scenario
The Volkswagen Company managed to prevent the worst-case scenario in several ways. One of the decisions was to allow the chief executive officer Martin Winterkorn who was among the group dispatched to record an apology video that was two minutes long. Besides, Matthias Muller who was the new CEO attempted to reimagine the firm for an electric vehicle era (Campbell et al. 1). It is for this reason that Volkswagen Company embarked on the biggest electrification program and by far within the international car industry and pledged to use $25 billion to make the hybrid or battery-powered variants to every single model by 2030.
Ways corporations undergo strategic responses to extreme cases
There are several ways corporations are able to undergo strategic response during the extreme crises as demonstrated through the Volkswagen Company (Smart, and Vertinsky 200).

For example, CEO Matthias Muller devised a way that enhanced the association between the existing external setting in which the company functioned and the consequent repertoire appropriate for the strategic reactions established to handle the crises. As a result, the CEOs propensity to approve a specific strategic posture relied on his insights on best ways the company could regulate its environment including the costs of bringing changes within the company. In nutshell, Muller’s objective was to ensure the electric vehicle focused on the commonplace, cheap, and high-end market as inspired by the company’s own Beetle during the 1960s.

Works Cited
Campbell, Matthew et al. “How Volkswagen Walked Away From A Near-Fatal Crash”. Bloomberg.Com, 2018, https://www.bloomberg.com/news/features/2018-03-29/how-volkswagen-walked-away-from-a-near-fatal-crash. Accessed 9 June 2018.
Smart, Carolyne, and Ilan Vertinsky. “Strategy And The Environment: A Study Of Corporate Responses To Crises”. Strategic Management Journal, vol 5, no. 3, 1984, pp. 199-213. Wiley, Accessed 9 June 2018.