E23-10-180

Volvo Car Group Report

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Table of Contents

1. Introduction..........................................................................................................................3
2. Volvo’s Operational Strategy to Sustain Competitiveness...........................................4
2.1 External Analysis of Volvo............................................................................................5
2.1.1 PESTAL Analysis........................................................................................................5
2.1.2 Five Forces Framework..............................................................................................8
2.2. Internal Analysis of Volvo Car Group......................................................................10
2.2.1 VMOST Model...........................................................................................................10
2.2.2 4V’s Topology............................................................................................................11
2.2.3 Five Performance Objectives....................................................................................12
3. INTEGRATION OF DEVELOPMENT AND ORGANIZATIONAL STRATEGY
WITH OTHER KEY DECISION AREAS..........................................................................14
3.1 Development and Organization..................................................................................14
3.2 Supply Strategy............................................................................................................15
3.3 Capacity Strategy.........................................................................................................17
3.4 Process Technology......................................................................................................18
4. DEVELOPMENT OF ORGANIZATIONAL STRATEGY AND LONG-TERM
COMPETITIVENESS...........................................................................................................19
4.1 Practices, tools, and techniques for supply strategy.................................................19
4.2 Proposed Practices based on the example of TESLA...............................................21
4.3 Measurement of Development Organizational Strategy..........................................22
5. Conclusion...........................................................................................................................24
6. Reference list.......................................................................................................................25

LIST OF FIGURES
Figure 1……………………………………………………………………………………….9
Figure 2………………………………………………………………………………………10
Figure 3………………………………………………………………………………………11
Figure 4………………………………………………………………………………………15
Figure 5………………………………………………………………………………………16
Figure 6………………………………………………………………………………………19

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LIST OF TABLES
Table 1………………………………………………………………………………………5
Table 2……………………………………………………………………………………..11
Table 3……………………………………………………………………………………..13
Table 4……………………………………………………………………………………..18

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1. Introduction

Volvo Car Group is a prominent automotive corporation with its headquarters situated in

Sweden. The corporation has gained recognition for its manufacturing and dissemination of

high-quality automobiles, including sedans, SUVs, and electric vehicles. Volvo Cars operates

as a subordinate entity inside the broader corporate structure of the Volvo Group, including

other divisions such as Volvo Trucks, Volvo Buses, and Volvo Construction Equipment.

Volvo Cars is well acknowledged for its steadfast dedication to safety, innovation, and

sustainability within the automotive sector (Group, 2023).

2. Volvo’s Operational Strategy to Sustain Competitiveness

The operations strategy plans a corporation's customer support and commercial enterprise

projects lengthy-term (Group, 2023a). Operational strategies emphasize the agency's

objectives and plans to achieve them. These strategies make sure that the company has the

right approaches and technology to prevail. Strategic planning ought to evaluate the delivery

chain, clients, rivals, strengths and weaknesses, organization facilities, and current procedures

and technology. An examination of these elements must determine how they help or impede

the enterprise plan and how to maximize their usefulness and confirm operational

competencies. According to Bichou and Gray (2004) every product and carrier, new and

antique, needs strategic strategies. These techniques can also help corporations comprehend

the manufacturing strategy and the way it relates to the sales approach at every stage of

product improvement. This guarantees cost optimization and decreases the likelihood of

unplanned operations. Updating techniques enable businesses to maintain competitive

priorities and improve their products and offerings whilst new information is available.

Tracking competitors' offers may also help organizations detect their very own and their

competitors' vulnerabilities. Organizations can also alter their plans for the usage of this

information (monday.com, 2022).

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The implementation of a well-defined company strategy may contribute to the attainment of a

competitive advantage by;

 Ensuring quality: It entails that the proper aesthetic, the way products and services

appear and feel, is met on every occasion. This reduces charges associated with

having to remake or remodel products and services, in addition to lowering returns or

complaints whilst first-rate expectancies have no longer been met.

 Improving customer experiences: Operations strategies need to consist of specific

discussions around customers, their expectancies, and how to meet and exceed those

expectations. This allows for standardized customer reviews so that no one seems like

they're being omitted or handled unfairly (monday.com, 2022).

 Ensuring reliability: According to monday.com (2022), a big issue of operations

techniques lies in placing a widespread and retaining it. Proper reliability relies on

proper testing, and operational strategies must encompass precise instructions about

the trying out and studies that ought to be finished at every development level, as well

as records concerning how to use these facts for destiny developments.

2.1 External Analysis of Volvo

2.1.1 PESTAL Analysis

Table 1

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Political Factors

The operations of Volvo Car Group are subject to the effect of political considerations,

including government rules and policies that aim to encourage the widespread use of electric

cars and establish benchmarks for emissions and fuel economy. The implementation of these

laws may influence the development and commercialization of Volvo's automotive products.

In a similar vein, the worldwide supply chain and export/import of cars and components for

Volvo may be influenced by tariffs and trade restrictions. The cost of manufacturing and

sales for Volvo Car Group may be influenced by changes in trade policy. The presence of

political stability in the areas in which Volvo Car Group works is crucial for the company's

operations and development. The provision of government assistance, such as incentives or

subsidies, may also play a significant role in bolstering the viability and acceptance of

Volvo's electric car options.

Economic Factors:

Volvo sales depend on the economy. GDP growth, inflation, and consumer spending may

affect Volvo sales. Strong economies and consumer spending power may boost Volvo sales

by increasing car demand. Exchange rates and currency values may affect Volvo's sales and

profitability. Currency exchange rates affect imported component costs and exported car

prices for Volvo Car Group internationally. Volvo's market competitiveness may suffer.

Interest rates and borrowing costs affect Volvo Car Group's financial and investment choices.

High-interest rates may raise borrowing costs for companies and individuals, hurting vehicle

sales. Volvo's sales may drop if buyers are less inclined to finance their automobile purchases

due to higher borrowing rates.

Social Factors:

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Volvo Car Group's product development and marketing tactics may be affected by client

preferences for electric automobiles, sustainability, and safety. The company must update its

goods and services to meet customer needs. Demographic factors including population

growth, urbanization, and ageing may affect Volvo's target market and automotive product

demand. Understanding demographics is essential for marketing and product development.

Safety has always been a Volvo Car Group priority. Volvo's concentration on electric

vehicles and sustainability may influence customer worries about safety and environmental

effects, which may affect automobile sales.

Technological Factors:

Volvo Car Group is adjusting to new automotive trends, notably electric cars. The firm

realizes it must develop and provide breakthrough electric car technologies to thrive in the

increasing industry. Battery technology and charging infrastructure must improve. Volvo Car

Group has possibilities and challenges from fast autonomous driving technology

development. To compete and satisfy customers, the corporation must lead autonomous

driving innovation. This needs continually improving driver assistance and exceeding the

competitors in autonomous driving. Vehicle connection and digitization offer Volvo several

options in the digital age. The organization knows digitization and networking boost

customer drive. Connected automobiles may provide new services and gather user data.

Digitalization and connectivity may help Volvo dominate the car industry and satisfy

customers.

Legal Factors

Volvo Car Group relies on government rules and safety requirements in a highly regulated

business. The corporation must follow car safety, pollution, and product liability laws.

Following these rules is not only legal but also vital to preserve consumer confidence. In the

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automobile business, where innovation and technology are crucial to competitiveness,

intellectual property rights must be protected. Volvo Car Group must protect its patents and

IP to preserve its market position. Data privacy and consumer protection are becoming more

crucial as automobiles become more linked. Volvo Car Group must comply with consumer

protection legislation and secure client data. The organization must also prioritize data

security and safeguard client data from breaches and abuse. Volvo Car Group can stay legal

and retain consumer confidence by resolving these legal issues.

Environmental Factors:

Concerns about climate change and sustainability have led to the widespread adoption of

electric automobiles and stricter emissions requirements by governments. Focusing on

electric automobiles, Volvo Car Group recognizes environmental issues and prioritizes

sustainability. Volvo is intentionally aligning its goals with the global effort to reduce carbon

emissions and promote sustainability. Due to its heavy consumption of raw materials and

energy, the car industry has negative environmental impacts. Volvo Car Group is using

sustainable manufacturing and renewable energy to reduce its environmental effects. These

activities address vehicle industry resource constraints and environmental issues. A circular

economy, which reduces waste and optimizes reuse and recycling, is gaining popularity.

Volvo Car Group is committed to circular business practices, including component and car

repair, remanufacturing, and recycling. This pledge reflects the growing importance of

recycling and a more sustainable and resource-efficient approach across industries.

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2.1.2 Five Forces Framework

Figure 1

The Five Forces Framework, established by Michael Porter, analyses industrial competition.

Companies may assess their industry position and make educated choices to retain or

strengthen their competitive advantage by understanding these influences (OP-SCM, 2023).

 Competitive Rivalry: Assesses automobile industry competitiveness intensity. Volvo

Car Group competes with BMW, Mercedes-Benz, and Audi in a very competitive

market. Competition affects price, product differentiation, and marketing.

 Buyer bargaining power refers to consumers' ability to influence price and conditions.

Due to the availability of alternatives and the opportunity to evaluate pricing and

features, vehicle purchasers have a lot of leverage. Volvo Car Group must satisfy

customers to be competitive.

 Supplier Bargaining Power: Suppliers' ability to influence price and terms. Volvo Car

Group uses several suppliers for parts, materials, and technology. The organization

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 must maintain solid supplier connections to establish a steady supply chain and

negotiate favourable terms and pricing.

 New Entrant Threat: This force addresses the potential for new rivals in the market.

Automotive companies must spend heavily, have established distribution networks,

and have manufacturing and technical skills to enter. However, technological

advances including electric and driverless automobiles may draw new market

participants.

 Substitute Threat: Investigate alternative goods or services that meet client wants. In

the car business, replacements include public transportation, ride-sharing, and

alternative mobility. Volvo Car Group must innovate and distinguish to avoid

replacements.

2.2. Internal Analysis of Volvo Car Group

2.2.1 VMOST Model

Figure 2
The abbreviation VMOST represents the five key components of an organizational

framework, namely Vision, Mission, Objectives, Strategy, and Tactics. It embodies a

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methodology for conducting an internal study of a corporation. VMOST is employed by

organizations to get insights, cultivate, and execute corporate-level initiatives.

Vision Volvo Car Group's vision is to be a leader in next-generation

mobility by transforming into a fully electric carmaker, improving
safety features, selling cars online, and continuously updating their
vehicles through software updates.
Mission Volvo Car Group's mission is to produce high-quality, premium
electric vehicles that are climate-neutral by 2040 and to create a
circular business model. They aim to reduce the carbon footprint
per vehicle by 40% by 2025 compared to 2018 levels.
Objectives Increase retail sales and market share
Improve profitability
Expand global footprint
Strategies Focus on electric vehicles
Strengthen customer relations
Invest in technology and innovation
Tactics Launch new products
Establish a Tech Hub in Krakow
Continue sustainability initiatives
Table 2

2.2.2 4V’s Topology

The abbreviation VMOST represents the five key components of an organizational

framework, namely Vision, Mission, Objectives, Strategy, and Tactics. It embodies a
methodology for conducting an internal study of a corporation. VMOST is employed by
organizations to get insights, cultivate, and execute corporate-level initiatives.

Figure 3

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The 4Vs topology, as delineated by Slack and Brandon-Jones, serves as a conceptual

framework employed to examine and classify diverse operational processes within

organizational contexts. The primary focus of this study revolves around four fundamental

aspects or attributes of operations (Slack & Brandon-Jones, 2022).

The measure of the amount of space occupied by an object or substance is referred to as

volume. This dimension pertains to the magnitude of resources or activities implicated in the

operation. This pertains to the magnitude of production or provision of services. High-volume

activities are characterized by the utilization of significant amounts of resources, whereas

low-volume operations are associated with the management of comparatively smaller

quantities.

Variety encompasses the breadth or heterogeneity of offerings, encompassing products,

services, or activities within an operational context. Operations characterized by high variety

provide a diverse array of options or customization, whereas operations characterized by low

variety are characterized by restricted choices and uniform offers.

The dimension of variation in demand pertains to the degree of fluctuation in the demand for

the outputs of the operation over a certain period of time. Operations that exhibit a high

degree of variation in demand are subject to considerable changes in demand levels, whereas

operations characterized by low variation tend to have more stable and predictable demand

patterns.

Visibility refers to the extent of consumer engagement or transparency inside a given

business. High-visibility operations are characterized by regular consumer engagement and

interactions, whereas low-visibility activities entail less customer contact and are

comparatively inconspicuous to customers.

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2.2.3 Five Performance Objectives

Table 3

Quality

This aim emphasizes the significance of offering reliable, error-free products and services

that meet consumer expectations. It includes specification compliance, reliability,

consistency, and meeting or exceeding client expectations. The firm has a solid product

quality reputation. Volvo strives to meet or exceed customer expectations by improving

vehicle quality.

Speed

Quick turnaround and on-time delivery define a fast operation. Increasing process efficiency,

reducing wait times, and lead times. This includes satisfying customer expectations quickly

and reducing delays. Volvo Car Group is speeding up manufacturing, delivery, and customer

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service. Volvo wants to improve its speed in all areas to serve customers quicker and increase

efficiency.

Dependability

Dependability stresses stable performance and outcomes. It requires meeting delivery

deadlines, minimizing disruptions, and building customer trust. Timely delivery, trustworthy

outcomes, and customer trust are all part of it. The firm routinely delivers automobiles on

schedule and meets client expectations. Volvo strives for reliability by consistently delivering

high-quality automobiles and offering trustworthy customer service.

Flexibility

Flexibility is the capacity to adapt to market changes and preferences. Multiple product

versions, fast production switchovers, and personalized service help achieve this.

Manufacturing adaptability and customer demands are considered. Volvo Car Group offers a

variety of car types and customisation choices to satisfy client needs. Volvo wants to increase

flexibility by selling more customized vehicles and innovating its inventory.

Cost

Costs must be reduced for efficiency. To reach this aim, processes must be simplified,

resource utilization optimized, and waste eliminated while meeting or surpassing all other

performance standards. This aim involves reducing costs, maximizing resources, and

reducing waste while achieving or surpassing performance goals. Despite its high-quality and

modern features, Volvo Car Group maintains low pricing. Volvo wants to streamline its cost

structure to boost profits and stay competitive.

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3. INTEGRATION OF DEVELOPMENT AND ORGANIZATIONAL STRATEGY

WITH OTHER KEY DECISION AREAS

3.1 Development and Organization

Figure 4
According to the Henderson-Clark paradigm an incremental innovation will build upon

current component and architectural expertise. Two instances of incremental innovation in

the realm of storage media are increases in magnetic disk capacity and disk rotation speed.

Modular advancement is the alternative scenario. Information of the architecture itself may

be reused, but fresh information will be needed for one or more parts of a modular system.

Modular innovation may be seen in the fact that most hard disk manufacturers began

replacing ferrite read/write heads with thin-metal heads in the 1980s. The antithesis of

modular innovation is the architectural innovation. This sort of innovation will have a

profound effect on how parts are connected to one another, but individual part knowledge

won't change.

The original mainframe computers were jam-packed with 14-inch disks, and throughout the

years the industry has produced 8-inch, 5.25-inch, 3.5-inch, and 1.8-inch disk drives, among

others. When the hard drive became smaller, our understanding of the interconnections
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between its parts grew, but the individual parts continued to use much the same technology;

this prompted us to label these shifts as architectural breakthroughs. Finally, a really

revolutionary breakthrough will be one that completely alters our understanding of both

components and buildings. The shift from magnetic to optical technology in the hard disk

business is another example of a revolutionary change. New components were needed, and

the arrangement of existing ones within hard disks was altered, when the laser was introduced

to the disk drive industry.

3.2 Supply Strategy

Figure 5

These boxes indicate various buyer-supplier relationships and imply alternative sourcing

techniques. Low-risk goods have little influence on organizational profitability. This section

uses office stationery the most. Although necessary for workers, pens and paper do not harm

the firm or pose a danger. Stationery bothers purchasers. It wastes time on tangential issues.

The sourcing tactics used here prioritize efficiency and administrative load reduction. E-

auctioning and catalogues are great ways to delegate tasks to suppliers or internal customers

reordering items.

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Buyers have power when products are profitable yet low-risk, so they use it to get higher

profits. Traditionally, procurement specialists have used this position to cut costs, but more

modern organizations want to unleash their suppliers' innovation. The market dynamics of

this connection depend on abundant, commoditized elements. Since suppliers provide similar

products, they may be simply replaced. Buyers may overplay their hand and bankrupt a low-

profit margin seller.

Leverage increases risk but decreases reward. Suppliers have the upper hand. Few providers

can raise prices oligopolistically. These vendors take the most time from buyers, according to

Procurement Leaders. Supplier relationships are difficult despite their little influence on

corporate profitability. Market structure drives buyers to accept poor deals. The main tactic is

damage limitation. This area will provide minimal options, thus procurement must realize

this. Buyers will be more imaginative in changing trade arrangements. Creative internal

operations might rewrite product specifications to leverage the supplier's material.

High supplier risk and profit impact categories include critical suppliers. These are business

essentials. These products only represent a few suppliers, yet a good and stable supplier

relationship is crucial to the purchasing company's future. Managing such suppliers involves

a variety of talents and may consume a lot of executive time in sponsoring and guiding the

relationship. Unlike non-critical things, each contract is unique and emphasizes equal parties'

shared benefits in collaboration. Strategic partners should innovate product and process

innovation to get long-term buyer commitment and aggressive development.

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3.3 Capacity Strategy

Table 4

According to Slack and Lewis (2019), capacity refers to the degree of output or service that

an organization can manage within a certain period. It focuses on identifying the best degree

of capacity to fulfil consumer demand while also considering issues like cost, resources, and

flexibility. Volvo Car Group has established a capacity plan that incorporates the construction

of Tech Hubs in key areas to maximize resource usage and efficiency. The corporation

presently has four Tech Hubs, including one in Stockholm and Lund, Sweden, which

concentrate on software development, technological innovation, and research and

development. Another Tech Hub is situated in Bangalore, India, and specialises in software

development and digital solutions. Recently, Volvo Car Group announced the creation of a

Tech Hub in Krakow, Poland, to complement the current Tech Hubs.

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3.4 Process Technology

Figure 6

Process technology refers to the methods, equipment, and systems used to transform inputs

into outputs within an organization's operations. This strategic decision area involves

selecting and implementing the most suitable process technologies to achieve the desired

outcomes. Companies need to consider factors like efficiency, quality control, scalability, and

innovation when making decisions about process technology (YANG and LIANG, 2018).

The primary strategic decision area of the subject under consideration may relate to its

growth and organization. To enhance its growth and organizational structure in alignment

with its strategic objectives, Volvo Cars might concentrate on certain crucial domains such as

allocating resources towards research and improvement and the development of electric and

autonomous vehicle technology, implementing an agile and flexible organizational structure

to promote innovation and versatility and prioritize personnel development and retention

strategies to cultivate a proficient and driven workforce

Volvo Car Group's Development and Organization strategic decision area combines, aligns,

and interacts with various other strategic decision areas. The Supply Strategy and

Development and Organization are complementary. Volvo Cars requires a stable and

sustainable supply chain for components and materials to create new automotive technologies

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and features. This involves strong supplier cooperation, manufacturing schedule coordination,

and quality and compliance requirements. It also affects Capacity Strategy. Volvo Cars must

grow manufacturing capacity to fulfil demand as it develops and offers new products and

technology. This involves market predictions, production capability assessments, and

strategic investments in production facility expansion or optimization. Volvo automobiles

must enhance its production processes to incorporate new technology and features into its

automobiles.

4. DEVELOPMENT OF ORGANIZATIONAL STRATEGY AND LONG-TERM

COMPETITIVENESS

4.1 Practices, tools, and techniques for supply strategy

Non-Critical Items

Volvo Car Group standardizes products to improve production and operations. Volvo

achieves economies of scale and lowers manufacturing costs by standardizing vehicle design,

components, and features. This lets the corporation provide uniform product quality and

customer service throughout its vehicle portfolio. Volvo Car Group automates and improves

its buying. Volvo uses catalogues and e-tendering systems to expedite procurement, boost

transparency, and negotiate better supplier terms. This reduces procurement lead times,

optimizes inventory management, and lowers human buying expenses. Volvo Car Group has

plenty of raw materials and components for manufacture. This requires smart supplier

alliances and strong supplier connections. Volvo avoids supply interruptions and maintains

material flow by using various sources and risk management.

Leverage Items

Volvo Car Group can negotiate better supplier arrangements due to its size and buying

power. Volvo Car Group may save costs and enhance supply chain efficiency by unifying its

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buying needs and negotiating long-term contracts for better price, quality, and delivery.

Volvo Car Group uses targeted pricing and negotiations to maximize profits. It can increase

profit margins and keep prices low by negotiating with suppliers and cutting costs. Volvo Car

Group prioritizes a steady supply of parts and materials for its production processes.

Maintaining excellent supplier connections, having efficient inventory management, and

diversifying its supply chain may reduce interruptions.

Bottleneck Items

Volvo Car Group relies on outside suppliers for crucial parts and supplies. Supplier network

disruptions may delay operations and raise expenses. Volvo should develop supplier

relationships and improve quality control to stabilize its supply chain to alleviate this issue.

Staying competitive in the fast-changing automotive sector demands constant innovation and

the capacity to react to client preferences and market trends. To find product substitution and

replacement possibilities, the organization should actively watch market changes and

customer input. If Volvo Car Group cannot satisfy rising car demand, its manufacturing

capacity may become a bottleneck. This results in lost sales and money. Volvo should

increase output by investing in manufacturing facilities and streamlining procedures.

Leverage Items

Volvo Car Group has been able to leverage its purchasing power to negotiate favourable

terms with suppliers. This is reflected in the increase in revenue driven by higher volume,

strong mix and pricing. Volvo Car Group has implemented targeted pricing strategies and

effective negotiations to improve profitability. This has positively affected operating income,

as seen in the increase in EBIT. Despite disturbances related to semiconductors, Volvo Car

Group has been able to improve its production rate during the first quarter of 2023. This

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indicates that the company has a relatively stable and abundant supply of necessary

components and materials.

4.2 Proposed Practices based on the example of TESLA

Volvo Cars has the potential to derive valuable insights from Tesla's strategic approach to

development and organizational practices. Tesla has effectively adopted a flexible and

dynamic organizational framework, enabling it to expediently conceive and introduce new

goods (Neumann, 2019). The organization places a high emphasis on cross-functional

cooperation, facilitating the smooth integration of teams from several departments. According

to YANG and LIANG (2018), Tesla fosters a corporate environment that promotes

innovation and embraces calculated risks, allowing its staff the freedom to explore novel

concepts and transform them into tangible outcomes. Through the implementation of

comparable strategies, Volvo Cars has the potential to augment its developmental and

organizational capacities, hence resulting in enhanced operational efficiency and a more

cohesive alignment with its strategic objectives.

Based on the example of Tesla, some proposed practices for supply strategy could include:

 Vertical Integration: Tesla has focused on vertical integration by bringing various

parts of its supply chain in-house. This allows Tesla to have more control over its

supply chain, mitigating the risks associated with external dependencies and reducing

costs.

 Supplier Partnerships: Tesla has established strategic partnerships with key suppliers

to ensure a reliable and high-quality supply of components. These partnerships

involve close collaboration and long-term agreements, helping Tesla to optimize its

supply chain and minimize disruptions.

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  Advanced Technology and Automation: Tesla leverages advanced technology and

automation throughout its supply chain processes. For example, the company utilizes

advanced analytics, artificial intelligence, and robotics to optimize inventory

management, improve forecasting accuracy, and enhance production efficiency.

 Supplier Sustainability: Tesla has a strong focus on supplier sustainability. The

company expects its suppliers to adhere to sustainable practices and meet specific

environmental and social responsibility criteria. This ensures that Tesla's supply chain

aligns with its overall sustainability goals.

4.3 Measurement of Development Organizational Strategy

There are several ways to evaluate the aforementioned answer. The time between product

creation and launch may be a good indicator of reduced processes and improved teamwork. A

shorter development cycle indicates more efficiency and agility. Improvements in

development cycle time boost operational efficiency and effectiveness, accelerating time-to-

market and customer reaction. Evaluation of department and team cooperation and

communication may reveal the effectiveness of collaboration programs. This may be

measured via feedback surveys, team performance measurements, and project success rates.

Cross-functional communication is essential for smooth operations, bottleneck reduction, and

performance improvement. This method improves interdepartmental collaboration, increasing

output, reducing lead times, and improving customer satisfaction.

An innovative company culture may be measured by employee engagement and

inventiveness. Surveys of employee contentment, ideation participation, and proposal

implementation may reveal staff engagement and inventiveness. Successful operations

depend on employee involvement and inventiveness. Active workers are more motivated,

productive, and committed to reaching success. A culture of innovation encourages staff to

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think creatively, find ways to improve, and actively innovate operational procedures.

Financial gains, product quality improvements, and competitive advantage may result.

5. Conclusion

Volvo Car Group strives to increase profitability and lower manufacturing costs by

controlling expenses and improving efficiency. The organization optimizes its supply chain

and production processes to save costs and preserve quality. Volvo Car Group is recognized

for dependability and customer satisfaction, therefore safety and quality are top priorities.

They regulate automotive quality throughout manufacturing using innovative technologies

and rigorous testing.

Volvo Car Group optimizes logistics and supply chain management for fast delivery.

Managing inventories, lowering lead times, and enhancing supplier and dealer collaboration

help them deliver automobiles. Volvo Car Group seeks to develop a manufacturing system

that can swiftly adjust to changing needs and consumer preferences in a dynamic market.

This adaptability helps businesses handle demand variations and satisfy client expectations.

Volvo Car Group values innovation and invests extensively in R&D to remain ahead of

automotive technology. They specialize in electric and autonomous car products and

technology development. They work with technology partners to provide innovative

technologies and connections to their automobiles to improve customer experience.

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%20to.

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in Global Leadership. Emerald Group Publishing.

Salehi, N. (2023). Business Model Changes in the Automobile Industry - A Single Case

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Slack, N., & Brandon-Jones, A. (2022). Operations Management 10th edition. (10th ed.).

Pearson Education Limited.

Slack, N., & Lewis, M. (2019). Operations Strategy. Pearson UK.

Volvo Group (2023b). Interim reports. [online] www.volvogroup.com. Available at:

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