[Saif ]1 1) Summary of Situation

Strategy can change the future, either boost or beaten. Volkswagen, the biggest German automaker and the third largest world automaker, to envision there strategy is obviously the most challenging task for the company. This paper describing about all the facts and figures, which can go in favor or against the company. The management is dealing with the question either to stick to the MQB (modular transverse matrix) as there mega platform strategy or not. Many opportunities as well as risks are associated with this question. MQB has its roots in flexibility, plug-and-play modularity, commonality and all these demand great engineering expertise and understanding between all the key departments to provide the desired result. This idea can change the game, for sure. It can help the organization by practicing as its management technique and solidifying its individuality. 2) Key IssuesIdentification and Analysis

The fundamental concept of Holy Grail is being stretch across many different vehicle types, sizes and brands, then build them by the millions, and exploiting range of markets by deploying comparatively less investments. It can help the organization to reach the global sales charts several years ahead of its 2018 target. This strategy is not new for VW as they are being benchmarked by other key industry players i.e. Toyota Motor Corp and Ford Motor Co, for modular platforms, quite synonymous with MQBs basic theme. This idea began in 2007, being exploited in next four years at the cost of $70 billion, with projected annual gross savings by2019 of $19 billion, and gross margins approaching 10%. This in its basics is moving towards standardization but on the same edge catering range of audiences. It has great potential to provide unstoppable momentum in China, the U.S., Europe and most of the rest of the world. MQB can prove itself to be the single most important automotive initiative of the past 25 years. Can snatch the global sales crown from Toyota. None of its competitors has such diversity of brands, the richness of technology, the geographic propagation and mega budget necessary to implement and take advantage of this initiative, might prove itself as fruitful as adaptation of standardization to Ford or streamlined production system to Toyota. There is a mega opportunity for all the stake holders. It can provide an exciting opportunity to its suppliers by yielding 5-6 million orders for identical components and prove itself as innovative technique, novel and unique, a break with a past. The most important advantage of this technique is: To design, engineer and build wide variety of vehicle size and shapes To create more cars those are more tailored for specific markets at lower cost. Need not to sell so many units to break even

MLB is component set used to design all of the groups small and medium front-wheel-drive family models, including the latest generation of the Golf and Audi A3

[Saif ]2 MSB is component set used to design for premium rear-and all-wheel drive vehicles e.g. Lamborghini (ultra-luxury and performance brands) Challenges as huge volumes are planned, so if a single part is defective, and as that part is being used in many different models then it can affect the production adversely doing against the philosophy of spreading growth evenly and growing reliance on China i.e. forming joint venture with China top two manufacturers, 10 assembly/component factories, and boosting investments makes it susceptible to negative market development being mid-level player in the U.S. market dominated by GM and Ford its full rollout might be attain in decade where there is a challenge of facing new chief who might not be agree with this strategy

Opportunities 3) VW supporting its recent growth with additional production capacity in Mexico, expansion of existing facility in Puebla and potential increase t new Chattanooga plant Top managers scanning overseas markets i.e. Africa, Latin America and ASEAN Recommendations MQB provoke and strengthen the idea of simplifying the techniques and raising profit from flexibility and commonality. The company should take it as a management technique because it will help to shape the strategy at its foundation and future chain strategies and tactics. It requires great engineering proficiency to have all the operations in tune. Requires bulk of communication between the departments and stake holders. Keen analysis of market trends should be observed. Keen analysis and comparison of the stated and required results should be taken.