Organizational Change: Porsche Company
Today an organization has its foremost goal which is to make its business grow and survive. The ongoing current situations depict that nothing is sure to happen and future cannot be foreseen or predicted. Therefore it is needed to always think about different strategies and techniques that go a long way in improving and flourishing the business. There are a lot of opportunities and vendors to offer a number of services like Customer relationship management, Business Re engineering, or Total Quality Management. Some organizations select any of the diverse opportunities while others are scared if they have made correct decision or not.
If any organization does not apply any technique or select any opportunity to handle their business, the organization would hardly produce any profits (Chaudron, 2008). The experiences by organizations share that an organization got started with Total Quality Management which excited some of the employees and discouraged others, delay in follow through made things vague for employees. This indicates that organizations should always be in process of change. The actions by these organizations will help them to flourish and advance. There should be a design of framework which helps in organizational change.
They also should change by choosing any technique, strategy, plan (Chaudron, 2008). Porsche has been a brand with novelty and modernism, and is known as a legend for its innovation. They started off with the production of motors and engines in 1900, but the actual start was in 1931 and produced an automobile with brand name Porsche in 1948. Before that in 1931 Porsche, as a contract engineer in his design firm, designed the Volkswagen named as Beetles. The best thing about the Porsche’s name on the nameplate of an automobile was that this name was emerging to be the symbolic of firmness, appropriate production, and best ever feat.
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Some of the features of Porsche’s automobile were a grip of driver to the controls, and wash-and-wear character lacked prissy attitude of the car. This idiosyncrasy in Porsche’s product lacked roughness. This was supposed to be the first sports car and since then Porsche topped the world for decades. The efforts and attitude behind the established and dynamic company were more than expected. It became the perfect definition of sports car for the companies to come (Vettraino, 2008).
Even in those days other car manufacturing companies were taking measures for their growth and survival by merging with other companies. Porsche made sure that it would maintain its integrity and independence as long as possible in future. Obviously there is never any surety in this business, it is always unpredictable. Just like that Porsche had claimed for this on very practical grounds, there was certain logic behind that. The logic was to keep the firm in the running state with the steps for present and future and the flexibility to accommodate any changes in plan (Porsche AG, 2008).
Hence the very famous business strategy in organizations failed in front of Porsche’s independent, small size volume-producer automobile manufacturer. The strategy was that the small organizations can only survive if they have an upper hand of any bigger corporate organization. Porsche disproved this claim in its early days (Porsche AG, 2008). Evolution of Porsche includes the success story of all the sports car it produced. Porsche sport automobiles gave evidences of maximum triumphs in the history of 24-hour Daytona series of races and 24-hour LeMans races.
In the early days of Porsche, Dr. Ferdinand Porsche got in touch with Adolf Hitler for discussions about the Volkswagen design, and a sports car design to take part in 1939 Auto-Union Grand Prix. The idea was to produce an automobile with expanded utilities as compared to Volkswagen. Applying different valves and cylinders to the same Volkswagen engine and included a new system of fuel injection, enlarged base in wheels, and with a body design in accordance with aerodynamic rules, which lead to the production of a specialized racing car (Porsche AG, 2008).
In 1948 the Porsche design firm changed its location in Karnten in Austria. There it first made its survival secure by not introducing its own range of vehicles, rather they used to repair and service diverse range of existing automobiles then they began to start working on their racing line of vehicles and other sports vehicles as well (Porsche AG, 2008). Son of Dr. Ferdinand Porsche, Ferry Porsche strategically found out the interest, necessity and willingness of people about an idea of buying an innovative and attractive sports car.
Ultimately he found sponsors to finance his production which lead to the production of lightweight sports cars. This promoted a design firm to an automobile factory having Gmund plants for monthly production. Until 1951, Porsche experienced its achievements to the top. They moved from small factory in Gmund to Stuttgart, where there was a spacious and furnished factory waiting for Porsche designers to work. They achieved milestone of producing the 1000th sports car making all that a reality which Dr. Ferdinand Porsche had envisioned. Dr. Porsche died (Porsche AG, 2008).
The year 1956 was the time when 10,000th production took place. This proceeded with the export orders of customers from abroad. This era was the one when the highest number of victories in racing took place by the Porsche cars. Porsche introduced its 356 models like 356A and 356B. The expansion of factory, its staff and workers occurred. This organizational change required having prediction and idea of future as well; therefore Porsche defended its integrity by maintaining the consistency and feat giving special attention to the quality control.
The symbolic of style and consistent quality Porsche cars were awarded with four quality control certificates for each of their produced car. These certificates commended on transmission, locomotives, vehicle assessment, and dimensions. Hence Porsche achieved its growth and survival both plus revenue of DM 108 million for a year (Porsche AG, 2008). The successful decade of 60s ended with the introduction of many new models and technical expansions. It had strategically started its joint venture with Piech families. Its revenues expanded to 900 millions.
The other steps it took are the research and development works initiated by the organization in order to grow. The boom continued in 70s and 80s as well which were marked by the growing export markets. Japan and USA imported a greater part of its production; hence making a big market. The profit went on to billions (Porsche AG, 2008). In the decade of 90’s market showed a breakdown. The biggest market of Porsche was made by USA and due to the collapse, the average of 30471 sale orders reduced to 4400 in 1991. This continued and company’s sales reduced to 23,060 units with USA making only 4133 sale orders.
The reasons suggested for this collapse might be loss of USA imports, or the growing process of Porsche cars, or the very firm market competitors like Mazda. This leads to the deterioration of business in the decade of 90s (Porsche AG, 2008). The mid of 90s brought with it some revivals and renewals for improvement in efficiency. Hiring of experts in engineering and manufacturing took place from Wendelin Wiedeking. They took steps like reduction of work hours, streamlining of operations and parts procurement with ‘just in time’, analyzed and worked on all the weaknesses that had been overlooked before.
The production of new models started as an updated version of 911; also the production of two-seater sports car took place named as Boxster. There recovery period of 1995 and 1996 were tough enough, did not make profits, and stopped producing frontline engines. In 1998, on the event of golden anniversary, it underwent another merger with Volkswagen to manufacture SUVs i. e. Suburban utility vehicles. This brought Porsche back in the US market and worldwide. Its sales went again to billions (Porsche AG, 2008).
Porsche is one of those organizations that have sustained themselves in the market somehow and tried to keep them in running. Porsche designed almost everything from engines, repair works, tractors, to survival gear. This management is sufficient to keep the position in the market and takeover of Volkswagen was to survive as an automaker belonging to Germany with autonomy. Wiedeking said very well at the press conference on the launch of Boxster “For most of the others, the sports car is a marketing strategy, for us, it is survival.
The customer knows the real one” (Vettraino, 2008). References Chaudron, D. (2008). Begin at the beginning in organizational change. Retrieved March 12, 2009, from Organized Change Consultancy: http://www. organizedchange. com/decide. htm Porsche AG. (2008). Retrieved March 12, 2009, from Funding Universe: http://www. fundinguniverse. com/company-histories/Porsche-AG-Company-History. html Vettraino, J. (2008, December 23). Porsche at 60: The little sports-car company that could. Retrieved March 12, 2009, from AutoWeek: http://www. autoweek. com/article/20081222/FREE/812229989
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Organizational Change: Porsche Company. (2018, Mar 09). Retrieved from https://phdessay.com/organizational-change-porsche-company/
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