Volvo 2012 Annual Report Download - page 12

STRATEGIC APPROACH
The road we are taking
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 gov-
ernance 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 recon-
ciliations 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 coordi-
nated 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 strat-
egies 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 stra-
tegic 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.
Strategies 2013–2015
Wanted position
2020
O
u
r
v
i
s
i
o
n
:
W
o
r
l
d
l
e
a
d
e
r
i
n
s
u
s
t
a
i
n
a
b
l
e
t
r
a
n
s
p
o
r
t
s
o
l
u
t
i
o
n
s
2012
The right product
or service in order
to contribute to high
productivity in the
transport system
Safe and secure
transport solutions
Energy efficient
transport solutions
with very low
emissions of
CO2, PM, NOx
and noise
Sustainable Transport Solutions
Sustainable transport solutions to the Volvo Group
are solutions that “improve the short and long term
economic and environmental performance meanwhile
social impact is considered".
A GLOBAL GROUP 2012 STRATEGY
The Global Compact
In 2001, the Volvo Group signed
Global Compact, UN's initiative on
socially responsible business prac-
tices. The Volvo Group's principles
for responsible business are based
on Global Compact among other.
8