this is from Exploring Strategy text book.. I need an expert in organization strategies to help me in this case study plz ..

Illustration 5.3 Volkswagen's governance crisis Spring 2015 saw a boardroom battle at one of the world's leading car companies; Autumn brought scandal. The Volkswagen Group was founded in 1937 to manufacture made... [but] don't be fooled. We know what we have to do... the famous VW Beetle, designed by the engineering genius and we started doing it some time ago. The supervisory board Ferdinand Porsche. The Porsche family's own car company has been a crucial supporter in every step of this journey! held an ownership stake that eventually rose to 50.7 per cent However, in September 2015, the United States by 2009. That year, Volkswagen cemented the relationship Environmental Protection Agency (EPA) issued Volkswagen by agreeing to take over the Porsche company, creating a a notice of violation of the Clean Air Act. The company had single group that became the second largest car company in been found to have fitted its diesel engines with a so-called the world. The German state of Lower Saxony, the location 'defeat device that allowed vehicles' nitrogen oxide (NOx) of Volkswagen's huge Wolfsberg factory complex, owns 20 output to meet US standards during regulatory testing, per cent of Volkswagen as well. External investors only hold while emitting up to 40 times more NOx in real-world 12 per cent of the company's voting shares. driving. NOx is a major pollutant, associated with poten- The Spring 2015 boardroom battle concerned a member of tially fatal diseases such as emphysema and bronchitis. the Porsche family, Ferdinand Pich. Pich had served as Volk- Volkswagen installed its defeat device in about 11 million swagen CEO from 1993 to 2002, and then become chairman of cars worldwide between 2009 and 2015. According to some the company's supervisory board ('Aufsichtsrat') (see Endnote estimates, the cost of legal claims, fixes to cars and regula- 22). Pich was a cousin of Wolfgang Porsche, who also sat on tory fines could exceed 30bn. the supervisory board. Pich's wife, a former kindergarten A few days after the EPA notice, Martin Winterkorn teacher, was another member of the supervisory board, as resigned as CEO. He denied knowing about the defeat in recent times were two of his nieces. Half the 20 members devices, but he was the executive ultimately responsible and of the supervisory board are worker representatives; two are he was blamed for an expansion strategy that encouraged representatives of the Lower Saxony government; 17 were risk-taking and a corporate culture that was too inward- either German or Austrian; one represented a Swedish bank, looking. Volkswagen announced that Hans Dieter Ptsch and two more represented investments by the Qatari state. would become the company's chairman (filling the slot left Ferdinand Pich was in dispute over Volkswagen's empty by Pich in April): Ptsch had been Volkswagen's strategy and performance with the company's CEO since Chief Financial Officer since 2003. Matthias Mller, who had 2007, Martin Winterkorn. On appointment, Winterkorn spent a life-long career in Volkswagen, was appointed CEO. had announced his 'Strategie 2018', aiming to become the Sources: Financial Times, 26 April 2015 and 4 October 2015. world's largest carmaker by the year 2018. Winterkorn had increased sales by more than 50 per cent, and Volkswagen Group cars had won World Car of the Year awards five times Questions under his leadership. However, Pich was allegedly disap- pointed about profit margins, falling sales in the USA and 1 To what extent does Volkswagen reflect the strengths the failure to develop a budget car for China. The dispute and weaknesses of the stakeholder model of was carried out behind closed doors, but finally Winterkorn governance (Section 5.3.2)? triumphed and Pich resigned at the end of April. 2 What should Volkswagen have done with regard to The triumphant Martin Winterkorn signalled he wanted to governance and management after the resignation of move on from the internal politicking: "Much has been written Martin Winterkorn? about alleged problems and improvements that need to be