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
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. This approach 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.
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 effort 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.
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.
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.
Creating value for many stakeholders
The Group is dependent on stakeholders to develop its competitiveness, in the same manner as its stakeholders are dependent on the Group in many respects. Accordingly, the Volvo Group strives, jointly with stakeholders, to create common values in a manner that is sustainable in the long term.
This information is extracted from the Volvo Group Annual Report 2012.