Essay on Business Strategies

BUSINESS STRATEGY

Table of Contents
TASK 1 ..........................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategic positioning of Volkswagen by carrying out an organizational audit.....................1
2.2 An environment audit for Volkswagen................................................................................2
2.3 Significance of stakeholder analysis when formulating new strategy for Volkswagen........3
2.4 Present a new strategy for Volkswagen...............................................................................4
TASK 3............................................................................................................................................5
3.1 Alternative strategies relating to market entry or substantive growth..................................5
3.2 Justification of selection of a strategy for Volkswagen........................................................6
TASK 4............................................................................................................................................7
4.1 Roles & responsibilities of personnel at Volkswagen...........................................................7
4.2 Resource requirements for implementing a new strategy for Volkswagen.........................7
4.3 Contribution of SMART targets to the achievement of strategy implementation................8
CONCLUSION...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A business strategy can be simply defined as a means by which corporation set their
desired goal and objectives. It is a long term plan that may be of approx 4 to 5 years (Campbell,
Edgar and Stonehouse, 2011). A business strategies are majorly concerned about with its
resource issues. For example, elevation in the finance in order to build a new industry or plant.
Strategies are mainly related to the scope of business activities. There are commonly two types
of strategies namely general strategy and competitive strategy. The general strategy are
concerned with the development of enterprise in terms of products and services. This also
includes globalisation that is expansion of business in all over the world. While the competitive
advantage are related with the doing best in relation to their competitors. This includes selling
goods or services at minimum cost in comparison to their challengers. The present report is
based on the business strategies of Volkswagen. In this project, the mission, vision, objectives
and goals are explained. The factors that have to considered like strength and weakness of
corporation, industry and the competition are also described. The effectiveness of techniques
used in the process of business strategies are also defined in this project.
TASK 1
Covered in PPT
TASK 2
2.1 Strategic positioning of Volkswagen by carrying out an organizational audit
An organizational audit for Volkswagen can be performed by using SWOT analysis that
assists corporation in understanding their internal strength and weaknesses and also the external
threats and opportunities. The SWOT analysis is done below:
 Strength: Volkswagen is a very organized umbrella brands. All people know that they
are producing high engineered super cars and passengers vehicles. They are running their
business in all over the world. One of the advantage of Volkswagen is that they have
deep pockets and because of that they are capable for expanding at faster rate (Astrachan,
2010). It has a strong market demand in Germany as most of the cars founded are of this
brand only. This is a company that is producing approx more than 26,700 motor vehicles
in a single day. It is obvious that no one can manufacture such an amount of cars if they
have not any demand. It has a rank of 57 in all over world.
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 Weakness: One of the main weaknesses of corporation is emission of its scandal.
Approx more than 5 to 6 million of cars contracts were canceled and returned back to
company. The trust of their users are broken as the installation of wrong pollution testing
software are came out from the top management of the enterprise (Auzair, 2011). The
major competition is faced by the company as many brands are emerging and penetrating
the whole market. This competition is giving benefits to the customers but are affecting
negatively to the company.
 Opportunities: One of the benefit gained by corporation is that, purchasing power of
vehicles are increased and keep increasing year on year. As the loans and finance option
are made available to customers, they are buying vehicles at faster rate. Auto-mobile now
become their basic need. The Volkswagen have to tap the emerging nations and can
expand their market in all over the world.
 Threats: One of the main threats to enterprise is the hitting of its brand reputation due to
the emission of scandal. People get afraid to purchase their cars, due to this the selling
rate of cars are reduced at large scale. Government is also imposing several taxes and
most of the revenue of company goes on paying such taxes only.
2.2 An environment audit for Volkswagen
Environmental audit of Volkswagen is performed by doing pestle analysis which is
discussed as follow:
 Political factor: Volkswagen is operating their business in more than 150 nations, due to
this they are facing different political situations in different nations. They are facing with
the fluctuating nature of currency (Burlton, 2010). Sometimes the value of revenue gets
decreases and causes loss for organization but sometimes it also provides benefits when
the value of currency gets increased. Banking and financial sector are giving its impact
on the turnover of company as these sectors provides loans and the interest rate is decided
by government policies only.
 Economical factor: Auto-mobile industry are powerful organization that are giving its
contribution in the national income of the country. Volkswagen are contributing in the
GDP of the nation where they exists. Other side of economic factors are also present that
are related with uncertainty of the economical conditions of world. For example,
European debt crisis is a major issue of car manufacturing enterprises as people now have
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