PhilTake #27 - The Sidelines, Part 2

Every business has six critical elements called Morphemes. Morpheme #1 is The Premise (covered in PhilTakes #16-20). Morpheme #2 - The Promise (PhilTakes #21-25). Morpheme #3 –The Sidelines – refers to limitations external forces put on your business.

In PhilTake #22, we discussed Volkswagen’s decision to cheat to make its diesel cars appear cleaner burning than they actually were. One sideline (of many) the company crossed was the EPA’s emissions standards, which regulate emissions levels from vehicles. Volkswagen installed software in 11 million diesel engines worldwide to circumvent emissions tests.

For a while, this strategy worked – car sales increased. Then the act was discovered. The result? Penalties of up to $18 billion (as in $18,000,000,000.00), customer class-action lawsuits and criminal charges – and that’s only in the U.S. This scandal has spread around the globe.

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