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Describe effects that social media had on the vw scandal
Course:- Other Subject
Reference No.:- EM13860264




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Assignment: length is 6-9 pages (excluding references). Assignment must include introduction, body, and conclusion. If sources are used, sources should be properly cited.

Read the following articles (and any other sources) to gather an understanding of the VW scandals

http://www.wired.com/2015/09/volkswagen-diesel-cheating-scandal-is-good-for-hybrid-cars/
http://www.wired.com/2015/09/vws-bloodletting-gets-going-porsche-boss-take/
http://www.wired.com/2015/09/vw-owners-arent-going-like-fixes-diesels/

Overview of the issue

Chapter 9 - Social computing

• Describe the effects that social media (or computing) had on the VW scandal

• If you were the head of Marketing at VW, how would you use social media (or computing) to fix the company's image?

Management factors

Chapter 2 - Organizational Strategy, Competitive Advantage, and Information Systems

• Discuss the process that VW is going through in re-inventing itself after the scandal

• Use Porter's competitive model to analyze VW's industry status

Chapter 4 - Information Security

• Explain how VW's Information System was compromised in the scandal (discuss unintentional and deliberate threats, items such as information security controls, and Risk mitigation strategy that was used in the aftermath)

Chapter 5 - Data and Knowledge Management

• The article mentioned ‘...At least 30 volkswagen managers played a role in using software to cheat on emissions testing...' indicated there was a large network of corruption within the organization.

o Explain the ways that data governance, big data, data warehouse, and knowledge management systems can be used to name the related parties

Chapter 10 - Information Systems within the organization

• The purpose of FAIS and ERP is to facilitate communications among the department. How can these communications have helped to alert executives of the ongoing corruption?

Customer factors

Chapter 3 - Ethics and Privacy

• Discuss the impact that a vehicle recall would have on the breach of consumer data in ethics and privacies.

Chapter 11 - Customer relationship Management and Supply Chain

• Discuss the ways that CRM systems will be leveraged during the recall process
• Discuss the ways that Supply Chains are impacted during the recall process

Answered:-

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Introduction

It is not the case of too early that Volkswagen was trying to establish diesel engines as one of the best alternatives to electric cars. As Davies (2015) provides, it was merely through the efforts of Volkswagen and some of its counterparts that the US consumer spending on diesel cars has increased from 3 percent to 40 percent. And the major factor worth recognizing is the fact that Volkswagen controls this market. Recently what has taken Volkswagen by thunderstorm is the EPA accusation that the Volkswagen cars in the category of "482,000 diesel-powered, four-cylinder cars in the US, and 11 million cars worldwide" (Davies, 2015) have a software installed which limit the emissions when it detects that the car is being tested by EPA and increases the emission of nitrogen oxides to be about 40 per cent more on other times. This has made not only the world, governments but also the company officials bewildered. While there are top executives identifying that it was an internal matter, company is sacking its major executives including the CEO, Martin Winterkorn. The paper evaluates the impact of social media on the issue followed by the expected reinvention. Also information security, data and knowledge management, information systems, ethics and customer relationship have been considered.

Effect of Social Media on VW Scandal

Social Media had been a major reason that when EPA identified the VW scandal, the whole world came to know instantly. The other major impact was the governments recognizing the scandal and taking actions in respective countries. As Davies (2015) reports while the condition for Volkswagen is getting worse in United States, its own country Germany is questioning it. And, then other countries like Australia are continuing in the list. Doyle (2015) highlights, on Twitter, "@Volkswagen has surged from 40,000 before the scandal to 46,500". This is the ratio related to only one social media channel the same increase has followed in other media like Facebook, Instagram, etc. But this social media increase isn’t benefitting Volkswagen. As Stewart (2015) reports 83% of the social media interactions about Volkswagen are negative. This has instilled in a sense of negativity for the consumers, investors and other stakeholders. The impact is worldwide decease in the share of market enjoyed by the automobile maker followed by fall in share prices. These together have resulted in the company coming on front foot to accept the acquisition. Thus social media has played a major role in VW scandal communication across the whole world, which triggered responses.




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