Comparing Mintzbergs 5'Ps to Volkswagen

Introduction

Part 2 of this report will critically asses the relevance of Mintzberg’s 5 Ps of Strategy to the case study; VW conquers the world found in Appendix B. Appendix B discusses the influence of Ferdinand Piech, Chief Executive of Volkswagen and the turnaround he oversaw during his time with the organisation. The article focuses on the ‘dire’ situation Piech inherited in 1993 and the strategy he implemented to ensure Volkswagen becomes the world’s biggest car maker. There are many different definitions and theories surrounding strategy. Henry Mintzberg (1996) recognised this and created a multilayered conception of strategy which he called ‘The five Ps for strategy’. Mintzberg’s 5 Ps incorporate five definitions of strategy that can interrelate, compete or complement one another to create a holistic view of strategy. Individually the 5 Ps are presented as plan, ploy, pattern, position and perspective.
This report will apply the theory of Mintzberg’s 5Ps to Appendix B and assess how the relevance of each ‘P’ manifests itself.

Mintzberg's 5Ps

Mintzberg’s first P of Strategy is Plan. Plan is defined as creating a set of guidelines that the organisation should follow (Mintzberg, 1996). It is clear from Appendix B that Piech has an overall plan to become the world’s biggest carmaker by volume in 2018. As Appendix B suggests, this plan was achieved in 2012, seven years early. This ‘P’ is relevant as Piech started his tenure at Volkswagen with a set goal, a plan he wanted Volkswagen to follow. In this context, Mintzberg's plan fits very well to the case study of Volkswagen, however it also raises important questions. As this Plan was achieved early, did this ‘long term’ plan demonstrate an easy option from Piech and can Volkswagen consider this achievement a success?
Appendix B discusses how the volatile automotive industry played a big part in