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Strategy Formulation Process in Crisis Management: Volkswagen Case Study
Dalarna University, School of Technology and Business Studies, Business Administration and Management.
Dalarna University, School of Technology and Business Studies, Business Administration and Management.
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Aim:

The aim of this study is to understand what strategies are used over time by a company facing a transgressional CSR crisis, in order to regain legitimacy, and towards which stakeholder group these strategies are directed.

Methods:

In order to achieve our aim, Qualitative case study based on secondary data published by Volkswagen as well as news articles were used to identify what strategies the company used over time.

Results:

To be able to answer our aim, different theoretical lenses were used; SCCT response strategies, legitimization strategies, strategy formulation process and stakeholder theory. Therefore, four main different strategies were identified, minimize attribution, blind adaptation to strategy 2025, US differentiation and internal moral reasoning. The former two were addressed to all stakeholders while the latter two were concerned with specific stakeholder groups.

Conclusions:

Strategy formulation process during a transgressional CSR crisis is a complex procedure and literature on crisis management should move away from static frameworks towards a more dynamic understanding of how strategies can come to life. Coupled with the complexity of societal expectations in general, a company might have to adopt the paradoxical approach even for one stakeholder. Lastly, an addition to Situational Crisis Communication Theory is proposed.

Place, publisher, year, edition, pages
2017.
Keyword [en]
Crisis Management, Legitimacy, Legitimization Strategies, Corporate Social Responsibility, Stakeholder Theory, Situational Crisis Communication Theory, Strategy Formulation Process, Paradox
National Category
Business Administration
Identifiers
URN: urn:nbn:se:du-25266OAI: oai:DiVA.org:du-25266DiVA: diva2:1113110
Available from: 2017-06-21 Created: 2017-06-21

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf