Strategic approach

The road we are taking

All work in the Volvo Group is based on our vision, our values and the wanted position. Based on this core, outer rings are created in the form of objectives and focus areas all the way to tangible activities with clearly defined responsible parties. This will lead to responsible governance, based on a long-term sustainability perspective.

The Volvo Group’s long-term plans stake out the road to success – to our vision, our target, as well as our wanted position. Our core values, focus areas, strategic objectives, road maps toward targets and activity plans will help us to achieve this as efficiently as possible.

During 2012, we adapted the Volvo Group’s governance to becoming more efficient and launched a new strategy to achieve the Volvo Group’s targets, wanted position and ultimately, our vision.

All work within the Volvo Group is based on a long-term sustainable perspective, since we are convinced that corporate social responsibility will contribute to long-term success. Assuming responsibility is deeply rooted in our culture and has its base in our core values and policies in the Group’s Code of Conduct. We strive to assume economic, environmental and social responsibility for the operation, products and services in the areas where the Group has the potential to exert influence.

This will enable us to strengthen our brands and relations with business partners and thus create new business opportunities that offer long-term growth and improved profitability.

Changed prerequisites
The global presence of the Volvo Group has undergone a dramatic change in the past decade. The Group has grown considerably in emerging markets and has welcomed new employees and companies. As a consequence of this, the Group currently has operations in approximately 190 markets and employs about 115,000 individuals, who strive to create efficient and sustainable transport solutions for our customers. 

Adaptation of governance
In the past year, we made extensive efforts to adapt the Volvo Group to the conditions and expectations of the business world and the future – and to achieve our wanted position by 2020. The efforts resulted in us taking a step toward governance as one Group with coordinated long-term plans for the business areas. The pace has increased with respect to governance and reconciliations connected to the development of the business areas. We have established a distinct brand portfolio and have moved from a regional focus with individual brands to a globally coordinated approach. In addition, we have created a more distinct distribution of responsibility with measurable targets. It is necessary to have all of this in place prior to the commencement of work based on the new strategies.   

Strategy process to achieve the wanted position and vision
During 2012, a new strategy process was launched, which has resulted in three-year strategies for the individual business areas of the Volvo Group. The process resulted in five to nine focus areas, which are particularly significant for the future development, and approximately 20 strategic objectives per business area. The strategic objectives have been divided into more than 100 road maps and a large number of activity plans.

Our structure for governance encourages close monitoring, as well as rapid and efficient decisions and early adjustments, when necessary. The system also aims to involve all employees, by clarifying how each individual is important to achieving the targets.