Research On Marketing Risk Management Of Faw-Volkswagen Automotive Co.,Ltd.

FAW-Volkswagen is the earliest automobile joint venture which was established in China.Its sales volume has always been among the best in China’s auto market,and the products are deeply loved by consumers.However,in recent years,enterprises have been affected by the internal and external environment,the market share has been declining,and profits have been declining year by year.A series of negative news,such as transmission failure,broken shaft,diesel gate,and suspected monopoly of spare parts,have seriously affected the reputation of the company.A series of marketing risks such as product quality and sales channels have not been effectively identified,which also have not been effectively controlled.Weak marketing risk management has become an important factor restricting the development of FAW-Volkswagen.This has a negative impact on the implementation of the FAW-Volkswagen 2025 strategy.According to the relevant requirements of the SASAC’s(State-owned Assets Supervision and Administration Commission)“Guidelines for Comprehensive Risk Management of Central Enterprises”,as a subsidiary of FAW Group,FAW-Volkswagen launched its risk management in 2013 and established risk management organization structure and risk management system.However,risk management system of the enterprise has not fully played its role.There are many problems in marketing risk management such as inadequate marketing risk identification,unrealistic risk assessment,incomplete risk management process inefficient risk management IT-system and weak risk management culture.Based on the comprehensive risk management theory,in order to identify the marketing risks comprehensively,we would like to conduct internal and external environmental analysis,risk source analysis and survey analysis.Then,the marketing risks are classified and the causes of the risks are described and analyzed.We would like to adopt a bottom-up business-level risk assessment and a top-down company-level risk assessment to evaluate the marketing risks of FAW-Volkswagen.After the effective risk assessment,we can find our top marketing risk.After completing the risk assessment,the enterprise should manage the Top risks effectively and select the appropriate risk management strategy.Based on the current situation of FAW-Volkswagen,the responsibilities of the defense three lines should be clarified.Risk management capabilities of the first defense line should be strengthened.FAW-Volkswagen should set up a three-level risk management structure and clarify the responsibilities and obligations of each business unit.A risk early warning system should be established in the business units.FAW-Volkswagen should also strengthen risk management culture,complete effective tracking of major risks,and check the effectiveness of response measures,and standardize enterprise marketing risk management from processes and systems to achieve marketing risk management objectives.According to the investigation,it can be concluded that by the optimization of existing marketing risk management,the comprehensive risk management can enable FAW-Volkswagen to make correct decisions when he faces risks and improve the risk response capabilities,which also improves marketing level,optimizes marketing model,makes products more competitive in each market segment,improves the market share and profitability,and finally helps FAW-Volkswagen to achieve the business strategy.I hope that the thesis can provide suggestions and references for FAW-Volkswagen’s in marketing risk management.It is also hoped that through the investigation of FAW-Volkswagen’s marketing risk management,it will provide valuable experience for some self-owned brand vehicle companies that have not yet carried out marketing risk management,so that they can survive in the fierce market competition environment,continue to be healthy and develop rapidly.