Strategic Management Analysis Report

This assignment requires students to demonstrate their understanding of key strategic management concepts and frameworks. It involves applying analytical tools like SWOT analysis, the BCG Growth-Share Matrix, and stakeholder analysis to a specific case or scenario. Students are expected to evaluate strengths, weaknesses, opportunities, and threats, analyze market positioning using the BCG matrix, and identify key stakeholders influencing strategic decision-making. The report should present a comprehensive analysis, supported by relevant examples and insights.

BUSINESS
STRATEGIES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Evaluation of business vision, mission, objectives and core competencies..........................1
1.2 Factors to be considered while formulating strategies..........................................................2
1.3 Effectiveness of the tactics to inform strategic planning .....................................................3
TASK 2............................................................................................................................................4
2.1 Assessment for the strategic positioning of Volkswagen ....................................................4
2.2 Development of environmental audit for Volkswagen.........................................................6
2.3 Analysation of the importance of stakeholder analysis.........................................................7
2.4 Recommended business strategy for the selected organisation............................................8
TASK 3............................................................................................................................................8
3.1 Evaluation of appropriateness of alternative strategies.........................................................8
3.2 Justification for the selection of appropriate strategies.........................................................9
TAKS 4..........................................................................................................................................10
4.1 Analysis of roles and responsibilities of personnel.............................................................10
4.2 Assessment of the need of resources to meet the objectives...............................................11
4.3 Evaluation of the contribution of SMART goals...............................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategies for business plays a significant role in the effective functioning of the
organisations. A well-defined business plans are always better to have for proper guidance in
which operations should be carried. It helps in achieving specific business goals and objectives.
Business strategies are framed after the overall assessment of all the internal and external factors
that can harm the effectiveness of the organisation (Campbell, Edgar, and Stonehouse, 2011). In
order to evacuate the negative factors and the flaws obtained in these analysis, business strategies
are prepared. The present report is prepared for the investigation of dragon den, BBC. An
effective business plan has been developed for the selected entity. Furthermore, many important
aspects of the business objectives and its core competencies will be discussed in this study. This
undertaking also revolves around Volkswagen. Various tactics that are used by the cited firm to
cope up with the factors impacting its value. In addition to this, ways in which the company can
gain competitive advantage will be analysed in this undertaking. Lastly, some SMART
objectives will be suggested to VW for getting business operations on right track.
TASK 1
1.1 Evaluation of business vision, mission, objectives and core competencies.
Effectiveness in planning is highly required buy the individual to ensure access to their
organisational goals and objectives. These strategies thus formed are considered as an effective
process that helps in demonstrating organisational policies, ways and allocation of resources,
budgeting, etc. However, there are certain terms which are required to be consider before such
planning. They are the business visions, mission, objectives and core competencies, which are
described below:
Mission: Mission of an organisation is the rationale behind its set-up and existence. It is
regarded as the aim of an establishment and this statement is very significant. Mission statements
states the actions that are to be taken to meet the business vision. It further motivates employees
to work in a co-ordinated manner (Chaffey, and White, 2010). For instance- A mission of a
company belonging to retail sector can be "to provide effective products to the customers to
satisfy their needs and demands to earn more profitability".
Vision: It is regarded as the future desires which a organisation has for the business. Vision
statements of an entity also rendered an understanding of the tasks that are to be completed in a
specific time period. For instance: The vision of a company belonging to retail sector can be "to
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become a leading player in the sector by providing products to the customers as per their needs
and demands."
Objectives: Objectives are the the findings of the actions that are planned to attain the
organisational goals. These are the measure of the progress that motivates businesses to work in
effective manner. They are also regarded as the guidelines that helps in work according to the
plan.
Core competencies: These are the set of abilities possessed by an organisation to gain
competitive advantages over the rivals. This feature helps entities in sustaining in the market
places. For instance: In context to a fashion store the core competencies required are the design
of the clothes, the material used, quality, skilled employees, effective after sales services, etc.
Such entities can gain competitive advantage by working on all these factors in an appropriate
manner (Champoux, Durgee, and McGlynn, 2012).
1.2 Factors to be considered while formulating strategies
There exists some factors that should be considered by all the organisations before
formulating strategic business plan. This analysis is significant in determining the elements that
can impact upon the business performance. In order to cope up with this, some assessments that
should be performed for the successful accomplishment of the plan are as follows:
Analysis of market environment: Before starting formulating any business plan, it is
essentially required to analyse all the internal and external factors which are associated with the
business. The outcome obtained from these assessment gives clear understanding that an
organisation will require for its operations and expansion. Some major tests that are performed
for analysis of environmental factors are target segments, economic condition, policies used by
competitors, etc. (Davis, 2012).
Analysis of competitors: Competitor or rivalry analysis is also a significant assessment that
should be performed by organisations to sustain in the market place (Hoskisson, Shi, Yi, and
Jin, 2013). For this type of analysis the tool that can be used is benchmarking, competitive
analysis model, etc. With the helps of these tactics the idea of effective policies adopted by the
rivals can be understand. Further, the level to competition present in the market place can also be
estimated.
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Stakeholder analysis: In order to create effective plan for the business strategies, it is essential
to determine the needs and demands of all the stakeholders associated with it. The major
segregation of it are buyers, suppliers, employees, investors, etc.
Allocation of the budget for the plan: Before implementation of any business strategy in an
organisation, it is essential to allocate al the resources that will be required to accomplish it. An
appropriate budge has to be developed by the high level authorities before strategies formulation
(Johnson, 2017).
1.3 Effectiveness of the tactics to inform strategic planning
All companies seeks for the maximum profit that they can generate from any operations.
There are some common method that are sued by most of the firms such as market expansion,
market entry, etc. However, for this enhancement it becomes crucial for the entities to select the
best tool that they can make use of in this order. For the selected fashion brand industry
belonging to retail sector, the most effective technique is explained below:
BCG growth matrix: There are four categories of this tool that fits into a 2 by 2 matrix. For
each block, a tag is assigned and then the business activities are positioned in them. It is as
follows:
Stars: This box represents the high market growth and market share. At this stage, the entities
will require more financial resources. This is thus to sustain the growth and to achieve the good
market share.
Cash Cows: Cash cows signifies that there is a low growth of the organisation. However, it had
achieved a high market share. In this case, when the implementation of business plan will take
place then its revenue will increase by enhancing the market share (Kent, and Zunker, 2015).
Dog: In this box, there exists a situation in which the entity will not be able to gain the effective
market growth. Also, the share of them are low. The items placed in this element of the matrix
are ineffective for the firm.
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Question Mark: The activities that are positioned in question marks have high growth rate and
low market share. There is major risks associated in the business operation with this category as
low market share will create losses.
TASK 2
2.1 Assessment for the strategic positioning of Volkswagen
In order to analyse the strategic positioning of the selected entity, it is required to observe
the internal environment. For this, the tools that can be used is SWOT analysis. It will help in
identifying the strengths, weaknesses, opportunities and threats of the entity.
Swot analysis of Volkswagen :-
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Illustration 1: BCG Growth Matrix
Source: BCG Growth-Share Matrix, 2017

Strength - Volkswagen is an auto mobile company. It is the biggest car maker company in the
market. It is the strategic acquisitions company. Volkswagen has 610076 employees till 2016
and geographic area of Volkswagen in the 117 countries. It is the worldwide auto mobile
company. Volkswagen has the biggest brand and product and customers portfolio among the all
auto mobile organisation and planing to increase business in another countries. It should be
further recognised that the financial condition of the cited firm is very strong (Klatt, Schlaefke,
and Moeller, 2011).
Weakness - As the market so many auto mobile companies serve their services and sale their
products. But in the market if any company will not be able to serve best services to their
customers then customer can be unsatisfying with the services and product. And Volkswagen
faced negative publicity in the market and Volkswagen has low market share in the U.S. auto
mobile market (Lienert, Schnetzer, and Ingold, 2013). The trust of company from the products
has been declined after it has been observed that it is using illegal software to cheat the emission
test. This further downed the brand recognition of the firm. Further, the company has weak
strategic positioning that harms its business value and effectiveness.
Opportunities - Volkswagen can start their business in new areas or new countries, so people
can take advantage and use the service given by Volkswagen. Volkswagen can produce the more
cars for the customers according to their needs and demand, because customers demand does
increase day by day. Volkswagen can focus on improving services and product sale.
Volkswagen can make new strategy for the customers that how the customers will satisfy with
their services and product and how Volkswagen can earn more profit.
Threats - In the market many auto-mobile companies are giving their best services. So its a
competition factor for any of the company and Volkswagen too. In addition to this, it has been
observed that there exist various laws by the government to control the emissions from the
vehicles. This will thus harm the existing models (Reinhardt and Stavins, 2010). Also, the
expenses will be increased for the development of new product range that emits less or no
harmful substances.
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2.2 Development of environmental audit for Volkswagen
There are various external environmental factors that do effect a business and its
effectiveness. Out of them, some major that impacts on the Volkswagen will be studied in this
sector. For studying the impact of those elements, the analysis tool that will be used is PESTLE
Analysis. PESTLE of Volkswagen is as follows:
Political factors: Major elements that are covered under these factors are political stability, laws
implied by the existing government, the level of corrup0tion present on the country, etc. In the
present context it has been observed that the political party that was active at the time of
emission scandal was against the entity. This has caused a large amount of fines and other
charges that have impacted the financial condition of the selected company. However, following
the results of this, the entity has developed effective manufacturing systems that has reduced the
cost linked with the fines (Shirey, 2011).
Economical factors: Elements that are associated wit this factor of the extremal environment
covers the interest rate, GDP, current growth rate, tax rates, currency exchange rates, etc. For the
chosen company, Volkswagen it has been observed that at the time of the scandals the financial
crisis has been occurred. However, with the time and effective strategies the organisation was
able to maintain the finances on the right track.
Social factors: This factor is associated with the beliefs and perception of the customers with the
products that are offered by the companies. For present case scenario, it has been observed that
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Illustration 2: SWOT Analysis
(Source: SWOT Analysis, 2017)

the increased level of modernisation has put a societal influence over people to have their own
vehicles. This effect is more visible in the developing countries like Pakistan, India, etc. Thus, in
this way social factor are highly in favour with the business growth of cited firm.
Technological factors: In the present era of technologies it has become highly significant for the
organisation to deal with the increased pressure. This factor thus raised the demand of having
advanced tactics in the products (Wæraas, 2015). Further, this deed of advancement by
compiling products with new innovation has increased the expenses of the firm. In addition to
this, these trends are getting enhanced day by day, affecting the finances of Volkswagen.
However, its should be recognised that the increased technologies have also played a major role
in making people to opt for having their own vehicles for transportation.
Legal factors: There are various elements that are covered under this external environmental
factor. The influence of this parameter is directly on the policies and other internal framework of
the entity that influence it to alter the overall procedure. In context to the present scenario, it
should be recognised that there are various legislations and regulation that Volkswagen is
required to introduce in its business operations (Wüstemeyer, Madlener, and Bunn, 2015. For
instance: Heath and safety at work, employment laws, equal rights act, etc.
Economical factors: There are major affects that are provided to the Volkswagen are by
ecological factors. The increased awareness of people towards the sustainable development of
the business has influenced the selected organisation to limit the production. In addition to this,
after the emission scandal the entity has to implement all the laws framed to save the
environment. In addition to this, Volkswagen should also pay attention on the development of
that vehicles that emits no harmful substances to the atmosphere.
Thus, this is the environmental audit for the Volkswagen. In this, all the external
environmental factors that can affect the operations of the company are analysed.
2.3 Analysation of the importance of stakeholder analysis.
Stakeholders are e integral part that should be considered in all the business operations to
ensure effectiveness of the organisation. It major components are the employees, employers,
customers, suppliers, investors, etc. They all should be considered while planning any business
strategy. In this section of the report the significance of stakeholder analysis before
implementing any business strategy will be explored. Importance of this assessment is as
follows:
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 It helps in understanding the needs and demands of various people associated with the
business.
 It further helps in maintaining effective relationship with the different people linked with
the business by evaluating their perspectives.
 Further, stakeholder analysis assists in getting significant feedback and ideas from
various elements of the business (Zalengera, and et. al., 2014)
 It moreover assists in influencing the shareholder. This in turn helps in getting effective
financial support from them.
2.4 Recommended business strategy for the selected organisation
There are various business strategies that exists for increasing the value of a firm.
However, it should be noted that the most effective of them is the Ansoff's matrix. This is a 2 by
2 matrix comprising four elements namely, market penetration, product development, market
development and diversification (Johnson, 2017). Depending upon the organisational needs and
resources, one f them is selected.
On the basis of the outcomes that are obtained from the various assessments that are
conducted on Volkswagen, an effective business strategy is recommended and that is market
penetration. It has been observed that in order to sustain in the present market place, the entity is
suggested to the company that should pay attention on the innovative development of the
products so that they can attract a large customer base. This is essential to incr4ease the business
value of the Volkswagen. Apart from this, the cited firm should develop effective strategies for
the marketing and promotional activities to gain competitive advantage.
TASK 3
3.1 Evaluation of appropriateness of alternative strategies.
Alternative strategies are plans that all the organisations should prepared to increase the
business size. This is highly effective in boosting the value of a firm. As strategic planner of new
phoenix, some effective strategies suggested to the selected organisation to implement in the
business are as follows:
Development:
Product Development: It is regarded as most impelling tactic that should be implemented by the
chosen company to ensure organisational success. There are basically two method in which a
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product can be developed by a firm. Firstly, Volkswagen can develop a wholly new range of
vehicle to satisfy the needs and demands of customers. On the other hand, the company can
modify the flaws in the existing product. however, it should be recognised that the modification
is a better method to opt as there is leaser requirements of basic resources such as time and
money.
Market Development: This strategy is helpful in developing a deep understanding of the
market places where the organisation can expand their business size. There are various method in
which the cited firm Volkswagen can develop market. The cited firm is suggested to define new
target markets and then it is required to research the new place so that development can be
proceeded in right direction. This type of development is done for the existing products and
services. Only new market segments are developed and identified under this strategy for business
expansion (Kent, and Zunker, 2015).
Diversification and Integration:
Related Diversification: In this type of variegation, the elements which are closely related to the
product line are got diversified.
Unrelated Diversification: In this, the diversification of products is performed. However, it
should be recognised that these products are different form the existing ones.
Horizontal Integration: This is a market desertification method in which Volkswagen can
involve various companies in business operations at the same stage of production. The cited firm
can make co-ordination with the other entities for getting effective outcomes.
Vertical Integration: In this type of integration, companies are involved with the same industry
but at the different stages of production (Davis, 2012).
3.2 Justification for the selection of appropriate strategies
Depending upon the business size, scale, scope and purpose, the objective sf their
business do differ. However, for the present case scenario, the selected company Volkswagen
wishes to become a leading player of the respective industry (Chaffey, and White, 2010). In this
subject, the most suitable strategy that can be used by the organisation is Market penetration.
This approach will renders assistance to the cited firm in expanding its market and thus, business
value. This can be attained by modifying the already existing products. Also, some innovations
can be added in them to meet up the rising needs and demands of the consumers. Further, the
mentioned company can collaborate and make alliance with other firms to achieve the setted
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goals. For instance: The organisation can merge with the companies that provides raw material
for the development of the product. It will also help in cost optimisation of suppliers. Also,
merging with similar organization will help the firm in increasing the customer base. This in turn
will increase the market share of the Volkswagen. This rise is thus helpful for the profitability
and achieving organisational goals (Johnson, 2017).
In context to the product development, it is a great tool that provides help in increasing a
large group of customers. It is because of the fact that development in the services will be able to
satisfy more customers and thus, buying behaviour will be influenced. With the help of some
innovating ideas, entity can also modify the already existing products. In this way, the cost
associated with the production of a new one will be saved. Besides this, the modified or newly
developed products will help in expanding the business by attracting customers.
TAKS 4
4.1 Analysis of roles and responsibilities of personnel
There exist various departments and people that works in an organisation with their
varied roles and responsibilities. However, it should be recognised that all of them are integral
part for effective functioning of an entity. With regards to the selected company Volkswagen,
there are large number of employees who are working for the firm. Functions of the workers
present in different departments differs (Davis, 2012). In context to high level managers, they are
required to manage the business plan by making effective decisions to be implemented. Their
role is also to manage the work effectively by assigning it to the right and skilled employees.
Further, they should observe the effectiveness of the already existing policies and procedures of
the entity. In case, if they are observed to be ineffective than essential modifications and
alterations should be performed by them. Further for effective strategic planning of the business
operations, managers of the Volkswagen are advised to consider all the internal and external
environmental factors that can impact the effectiveness of the project.
In regards with human resource management team, they should develop a healthy
working environment for the employees by increasing the communication level. Further, they are
supposed to resolve all the queries form the end of lower level employees. There exists one more
significant role that a human resource management team of a company should perform and that
is effective training and development sessions for the workforce (Hoskisson, Shi, Yi, and Jin,
2013).
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4.2 Assessment of the need of resources to meet the objectives
Depending upon the needs of case scenario, there are three major type of resources that
will be required by the selected organisation, Volkswagen. These are as follows:
Time and Material Resources: Accomplishment of event business objectives requires a certain
amount of time. In addition to this, some basic materials are also needed for the appropriate
development. As per the mentioned goals, it has been observed that Volkswagen will need some
effective and highly advanced technologies to add in the new models (Champoux, Durgee, and
McGlynn, 2012). Apart from this, auto-mobile sector is reliant on some basic raw materials for
the development of their products. Further, it will take some time for the completion. Hence,
time and material are considered to be key resources that the entity needs to have.
Human Resources: For the successful planning of the strategies and its execution, skilled and
effective workforce is required. Human resources are considered as central to all business
procedures. For the present case, skilled and innovative employees are required for the
development of innovative products (Chaffey, and White, 2010) .
Financial Resources: These are regarded as those sources which are required in each and every
business activity. There are two ways in which finances can be made. they are debt and equity. In
context toe Volkswagen, the entity will prefer to undergo equity as no interest is charged for this.
4.3 Evaluation of the contribution of SMART goals
Setting up of goals should not only be framed by implement the lacking things rather
these aims should be SMART. That is they are required to be specific, measurable, achievable,
realistic and time-effective. There ear various benefits of implementing goals that are postulated
on this type of framework. Some basic significance of such goals are as follows:
This framework will allow the entity to set relevant objectives that can add value to their
business. In this way, time and money for the waste project that is nowhere related can be saved.
Further, if the entity sets targets that can not be measured then the effectiveness of the plan can
not be understand. This will later may cause a continuous investment in an ineffective strategy
(Campbell, Edgar, and Stonehouse, 2011). Besides this, it is required that the goals of the
company should be realistic and not imaginary. If they will not be on the right track then work
effectiveness will not be brought. The objectives setted for the betterment of the organisation
should be time-bound. Also, they should be measurable so their efficiency can be evaluated.
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Now, in context to the present case, it has been identified that the selected organisation
set a goal of increasing it market share by 20% in every quarter. This objective is beneficial for
the entity. It should be recognise that it is attainable as rising business by 200% is not a big deal.
Further, it is specific to their aim on increasing business value. In addition to this, the time limit
of 3 months that is set for the accomplishment of the task has made it time-bound.
CONCLUSION
From the present report, it can be concluded that every organisation should implement
effective business strategies to achieve the setted goals and objectives. In addition to this, they
are also required to achieve desired market postcondition by set targets. This report covers the
analysation of strategic position of the selected organisation. Further, internal and external
environmental factors that can harm the business effectiveness are analysed in this undertaking.
In addition to this, roles and responsibilities of personnel working in the firm are also discussed.
All these assessments and their outcomes will be taken in consideration while developing
effective business strategies of Volkswagen.
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REFERENCES
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Hoskisson, R. E., Shi, W., Yi, X. and Jin, J., 2013. The evolution and strategic positioning of
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Johnson, G., 2017. Exploring strategy: text and cases. Pearson.
Kent, P. and Zunker, T., 2015. A stakeholder analysis of employee disclosures in annual
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Lienert, J., Schnetzer, F. and Ingold, K., 2013. Stakeholder analysis combined with social
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Reinhardt, F.L. and Stavins, R.N., 2010. Corporate social responsibility, business strategy, and
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Shirey, M.R., 2011. Addressing strategy execution challenges to lead sustainable change.
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Wæraas, A., 2015. Making a difference: Strategic positioning in municipal reputation
building. Local government studies. 41(2). pp.280-300.
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Wüstemeyer, C., Madlener, R. and Bunn, D. W., 2015. A stakeholder analysis of divergent
supply-chain trends for the EuroYang, J., 2017. Audit Oversight. In Environmental
Management in Mega Construction Projects (pp. 289-306). Springer Singapore.
Zalengera, C., and et. al., 2014. Overview of the Malawi energy situation and A PESTLE
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