Audi :On target to become number one Business & Marketing Essay

Audi: On Target to Become Number One
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Audi: On Target to Become Number One
Operations, logistics, and supply chain management are significant activities in modern economies. These activities play an integral role in improving the standards of living in the society. It is through these activities that consumers can receive quality products and services promptly. According to Zijm et al. (2019), a supply chain incorporates all the activities required to convert raw materials into final products. According to the authors, these activities range from “sourcing through component manufacturing and final assembly to distribution to end-markets, and including all necessary materials handling and storage (in short, logistics) activities” (p.33). It is evident that supply chain management involves the overseeing of a myriad of activities and processes that are necessary for availing the final product to the consumer. Logistics refers to the storage and transportation of materials, parts, and products throughout the supply chain (Zijm et al., 2019). Operations are activities and processes necessary for the conversion of raw materials into final products. These activities are particularly relevant in the automotive industry where numerous raw materials and processes are needed in making the final product. This essay examines quality management and new product development and process are relevant in the case of the automotive manufacturer Audi.
Audi is a brand of the Volkswagen Group, and it is one of the top manufacturers of luxury vehicles in the world. Headquartered in Ingolstadt, Germany, the company operates in more than 100 markets around the globe, including the UK (Audi, 2019). The company has over 90,000 employees that managed to help it deliver 1,878,105 cars to consumers around the globe in 2017. In addition to its two production sites in Germany in Neckarsulm and Ingolstadt, the company has production facilities in countries such as Belgium, Mexico, Hungary, Spain, Algeria, Slovakia, Brazil, India, China, and Russia (Audi, 2019). The Ingolstadt is the firm’s largest facility, and it attracts around 400,000 visitors annually. It is through these facilities that the company manages to deliver up to 380 units of cars to the customer per day. Quality management and new product development and processes are extremely relevant concepts in the operations of Audi. The quality of products and services determine to a great extent the success of a firm. According to Boyer and Verma (2010), quality refers to the ability of a product or a service to meet or exceed the expectations of customers consistently. Quality is a major determinant of success, particularly in the automotive industry that is extremely competitive. Quality management is thus an essential part of operations as it helps a firm attain goals such as customer satisfaction and loyalty, cost reduction, and better financial performance (Boyer & Verma, 2010). New product development, according to Boyer and Verma (2010), encompasses the organization, concept generation, marketing plan creation, and evaluation, as well as the commercialization of a new product. New prod...