Impact of Brexit on Freelancers

This assignment delves into the impact of Brexit on freelancers. It examines how Brexit has affected freelance work opportunities and the overall economic stability for this group. Students are required to analyze various online resources, including news articles and blog posts, to form a comprehensive understanding of the situation.

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Organisational audit of Volkswagen................................................................................1
2.2 Environmental audit of Volkswagen................................................................................2
2.3 Importance of stakeholders analysis while formulating new strategy .............................3
2.4 New strategies for Volkswagen........................................................................................4
TASK 3............................................................................................................................................4
3.1 Alternative strategies appropriateness..............................................................................4
3.2 Justification of strategy.....................................................................................................5
TASK 4............................................................................................................................................6
4.1 Roles and responsibilities of personnel who are responsible for strategy formulation....6
4.2 Resource requirements for implementing the new strategy for VW AG.........................7
4.3 Contribution of SMART targets in business strategy.......................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business strategies can be referred as a set of activities by which company reaches to its
decided destination within stipulated period of time (Scholes, 2015). It is a long term planning
which consists of various steps that have to be followed by every employee while performing
their job. In short, it can be said that it provides vision and mission to all members that help in
carrying out the operations effectively and efficiently as everyone will know the proper way for
performing their job. This strategy is very helpful in achieving the competitive advantages over
its rivals. This project is based on Volkswagen which is the biggest automobile company in
United Kingdom. It manufactures better quality of products or services as per the requirement of
customers' needs or wants. This assignment will help in knowing that how business vision,
mission and goals help in formulating the strategic plans. It will also state about the importance
of stakeholders while formulating a new strategy.
TASK 1
Covered in PPT
TASK 2
2.1 Organisational audit of Volkswagen
In today’s competitive world, it will be grateful for company if it will evaluate its own
capability and performance so that it can remove all their weaknesses from the workplace within
set period of time and can obtain its desired result effectively and appropriately (Werner and Xu,
2012). This audit is very beneficial for an organisation because it creates value for the firm as
well as improves business operation effectively. It aids in obtaining specified objectives by
adopting systematic and disciplined approach by which effectiveness of risk management can be
improved. In simple terms, it can be said that it is an activity that aids in improving business
operation by identifying strengths or weakensses. This audit can be carried out through SWOT
analysis which will help in identifying the gaps that exist in between desired performance and
existing capability. VW AG's SWOT analysis is as give below-
Strengths-
 It has good brand name in the entire world which has gained trust of large number of
customers.
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 It has large number of employees who are well skilled.
 It provides various range of products to their clients.
 Effective and efficient marketing department. It does joint venture with local Chinese auto mobile company for capturing large market
share.
Weaknesses-
 Continuously increasing level of competition in the market.
 It has limited growth and market rate.
 In U.S market, it has low market share. It has no ability to make battery driven vehicles.
Opportunities-
 It can expand their business in African market.
 It can merge with Non-German auto-mobile manufacturer.
 It can acquire any new company for increasing its skills and competence.
 Now a day, clients are demanding for autonomous vehicles.
 Focus on significantly improving sustainability policies to remedy damaged brand
reputation. It should introduce fuel efficiency in their products so that its demand can be increased.
Threats-
 Some competitors are introducing some unique products to their clients.
 Cost of production is very high.
 Government has introduced some environmental related rules and regulation now
company has to make their strategy accordingly.
 Government of host country is providing more safeguard to local manufacturer that
minimize company’s efficiency (Isoherranen and Kess, 2011).
 Continuously increasing fuel prices which is the biggest threat for this because it will
decrease the demand of products.
2.2 Environmental audit of Volkswagen
In today globalisation period of time, there are various factors which affects business
capability and effectiveness (Business Strategy, 2017). While formulating any new strategy,
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Volkswagen should evaluate all those components which may affect business strategy which can
be possible with the help of PESTLE analysis that are given below- Political- It is the most influential that may alter the activities of company at any time. At
present scenario, there are more instability because of having elections (Carney and et.
al., 2011). In this situation, company has to understand the governmental rules and
regulations and has to make their strategy accordingly so that it can carry out their
operation without any hindrance. Economic- It includes various factors like economy situation of country, employment
level etc. While formulating strategy, VOLKSWAGEN should consider it otherwise it
will not be able to reach to its decided destination. Social- At present scenario, consumers' taste and preferences are changing continuously
so while proposing strategy, company should consider it for serving to their clients in
better manner so that they will remain in the company for long period of time. Technological- There are more competition in the market so for getting competitive
advantages, Volkswagen should adopt latest technology which will help in producing
better quality of products or services (Business Strategy, 2017).
 Legal- Government has made various rules and regulations regarding safety of
employees or customers which have to follow by company in every situation. And some
laws will be changed after completion of Brexit. So this factor should be involved while
formulating strategy.
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 Environmental- Volkswagen is a defaulter in the eyes of US environmental laws and at
present, top authority of UK is also investigating this case with their close watch. So firm
should follow all legislation for getting best result (Welch and et. al., 2011).
(Source: Rob, 2016)
2.3 Importance of stakeholders analysis while formulating new strategy
Volkswagen which is the biggest auto-mobile manufactures in the entire world. It is
operating their business in more than 80 countries and make a good image in the mind of
stakeholders (Business Strategy, 2017). It needs to do analysis of their stakeholders and should
also ensure that their needs or wants are satisfied. Stakeholders are very important for the success
of company so their needs or wants should be satisfied so that they will remain in the company
for long period time. In Volkswagen company, there are various types of stakeholders like
suppliers, employees, government, customers etc. For satisfying them, research should be
conducted with the help of matrix by which stakeholders can be categorised easily that are given
below-
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Figure 1: Brexit and freelancers – what’s the impact?

Keep satisfied
(Maximum power and highly interested)
Company has responsibility to provide all
relevant information about changes so that
they can carry out operation effectively.
 Shareholders Workers
Manage closely
(More power and less interest)
They should get satisfaction with provided
information so that they will not get bored and
will not interfere in business operation.
 Suppliers
 Government
Monitor
(Minimum power and maximum interest)
These stakeholders need to be well informed
about the threats so that they can contribute in
the success.
 Customers Financiers
Keep informed
(Less power and interest)
Company should provide limited information
to them but should not disturb them by sending
continuous message.
 Local community
Stakeholder analysis is very beneficial for the success of company (Wheelen and Hunger,
2017). Apart from this, there are other benefits which can be got by cited organisation that are
given below-
 It will motivate to employees for doing work for effectively and efficiently.
 It will also assist is formulating effective strategies related to market because with the
help of this, firm understands needs or wants of concerned members.
 It maintains balance between corporate and social responsibility that helps in the
development of citizenship.
 It also helps in designing effective and successful strategies by which company can
obtain competitive advantages over its rivals.
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After analysing all pros, it can be said that stakeholders are very important aspect in an
organisation by which it can reach to its decided destination within stipulated period of time as
well as assist in creating valuable resources and permission.
2.4 New strategies for Volkswagen
For getting competitive advantages over its rivals, it is very important for Volkswagen to
formulate new strategies so that it can handle to all those factors which are impacting its
effectiveness and efficiency. In this, organisational and environmental audit plays an important
role because it helps in identifying gaps that are existing in the organisation.
Volkswagen needs to make new strategy that will help in increasing and maintaining its
capabilities. From a survey, it came to know that cited organisation required to pay approx. 19
billion to US government and this can be managed by firm by cutting down some cost from
current activities.
For Volkswagen, limited growth strategy will be suitable because in this, no need to
invest high level of resources and will also help in maintaining existing capabilities while
enhancing market share. This tactic includes joint venture strategy where company can take help
of other organisation. It will be beneficial for firm because it will aid in establishing itself in
other nation with minimum resources (Fernandes, 2011).
This strategy will also help in increasing efficiency of its diesel car engines as to reduce
their pollution level. It can also focus on electric vehicles and hybrid technology. If cited
enterprise wants to get success then it need to focus on futuristic approach which will assist in
increasing level of performance.
TASK 3
3.1 Alternative strategies appropriateness
There are various ways or techniques by which Volkswagen can maintain and enhance
their efficiency and effectiveness level. As per its present situation, it needs to adopt that strategy
which will aid in managing resources in an effective and appropriate manner. There are
numerous strategies which can be adopted by company that are given as below- Substantive growth strategy- With the help of this tactic, company can capture large
market share because in this, firm does integration with other organisations horizontally
or vertically. Integration means when company merges or acquired another enterprises,
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will be known as merger or acquisition. This strategy provides various range of benefits
like it increases efficiency and effectiveness level as well as market share and will also
help in obtaining competitive advantages over its rivals. As per given case study,
Volkswagen wants to expand their business operation so that it can capture large market
share by introducing the concept of electric cars (Canavan, Sharkey Scott and
Mangematin, 2013). Limited growth- As per this, firm can do joint venture with other local firms that
enhances the level of resources by which company will be able to carry out their
operation effectively and efficiently. Apart from this, it includes various tactics like
market penetration, innovation and product development. Cited organisation wants to
introduce product that is electronic car which is an innovative idea.
 Retrenchment- As per this tactic, organisation must withdrawal that products or outlet
from the market which are not generating desired result or outcome. This action will help
in increasing efficiency level and will also save their cost which can be invested in other
profitable project so that company can reach to its decided destination and can also
capture large market share. VW AG can retrenched in three ways that are cost reduction,
assets minimization and revenue generation (Harris and Rae, 2011).
As per given case study, Volkswagen has adopted limited growth strategy because it is
going to do joint venture in China.
3.2 Justification of strategy
In Volkswagen company case, there are various reasons for choosing limited growth
strategy. Organisation has limited resources which is the foremost reason for selecting this. In
this, they do joint venture with local firm which increases its resources and capabilities by which
it can capture a large market share and will also be able to serve their clients effectively and
efficiently. First reason to choose this strategy is that it has obligation to pay approx. £19 billion
to US government and it has lack of monetary resources. In this situation, limited growth
strategy will be suitable because it will help in managing the resources effectively and
efficiently.
With the help of this tactics, cost or expenses of company can be minimized which will
increase its sales or revenue. It will also aid in enhancing the capability or efficiency of company
by which it will be able to achieve competitive advantages over its rivals.
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TASK 4
4.1 Roles and responsibilities of personnel who are responsible for strategy formulation
While formulating strategy, every member of the company has main obligation to give
their best so that firm can reach to its decided destination in an effective and efficient manner.
Roles and responsibilities of various personnel are described below-
 Managers- These personnel plays an important role in the formulation of strategy
because they directly involve in decision making process. They have main obligation to
implement planning as per the requirement of company so that it can achieve its desired
result. Their main responsibilities are given below-
◦ To communicate all important information at all levels so that they can perform
accordingly.
◦ To delegate roles and responsibilities among every members as per their capabilities.
◦ Conduct evaluation process for analysing needs or wants of consumers. Expatriates- These person are those who watch the international market and also lives
there for completing the project of company. They have main liability to ensure that
everyone is doing their job as per organisational goals and objectives (Leonidou and et.
al., 2015). Engineers- They have main responsibility to ensure the effectiveness and efficiency of
manufacturing unit so that products or services can be produced as per requirement of
clients. For achieving same, they should adopt new methods or technology so that
productivity of employees can be improved.
 Senior authorities- These person have responsibility to give their suggestion to manager
so that effective strategies can be made or implemented and company can reach to its
decided destination. They are also obliged to implement tactics under their supervision.
4.2 Resource requirements for implementing the new strategy for VW AG
While implementing effective and successful strategy, Volkswagen need to have various
types of resources which are described below- People (human resources) - It is the most important needed resource which should have
in the company so that it can obtain its desired result or outcome. If organisation will not
have proper staffing then who will carry out strategy effectively which will create
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hindrance in the activities which will result that Volkswagen will not be able to reach to
its decided destination within stipulated period of time. So it will be better for company
to hire employees as per requirement (Ozaki, 2011). Finance (financial resources) - For completing a project, there is requirement of
monetary resources. If company will not have proper funding then it will create hindrance
in the implementation of strategy. So while formulation of tactics, management should
ensure that it has proper money so that it can carry out its operation effectively and
efficiently. Material- For implementing strategy, it is very necessary that there should be proper
availability of raw material so that production process can be carried out smoothly and
effectively. If there will have no resources then production process will be interrupted
and then firm will not be able to reach to its decided destination within stipulated period
of time. Fixed resources (physical resources) - In the implementation of strategy, there is also
required fixed resources like machinery or sales outlets etc. Without having them, firm
will not be able to produce products or services as per expectations.
 Parts of cars (physical resources) - For making a complete car, there is required various
types of parts so for this, company should contract with those suppliers who will provide
better quality of material at reasonable prices (Taylor, 2012).
4.3 Contribution of SMART targets in business strategy
Sequence of activities which are used by an enterprise to achieve the set results and end
targets is known as strategy. It is very necessary to set a specific strategy to implement in a better
way for capturing a larger market share. During the formulation of an effective strategy, concept
of SMART targets can be used by the managers of Volkswagen. Smart, measurable, attainable,
realistic and time bound objectives help in achieving efficiency in the operations of business.
Top managers of Volkswagen can use this for making an effective business plan. Smart: Strategy should be implemented in an enterprise for some pre-decided specific
targets. This provides direction to all activities of firm along with clear roles and
responsibilities. By making specific targets, effective results can be achieved by
Volkswagen (Bullough, 2012).
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 Measurable: Objective must be measurable. It means results of targets can be measured
by the managers. Main benefit of this is that it provides opportunity to the manager to
identify effectiveness of every method and also assist him what modification can be done
in the plan. Measurable targets motivate employees and the whole enterprise. A
measurable target of Volkswagen can be to increase sales by 15% in the coming three
months. Acceptable: All the set targets must be acceptable by all workers working in different
layers of firm. This provides support to enterprise for implementing the strategy in an
effective way. Relevant: Relevant means worthwhile and important. It means all the set targets of
strategy implementation should be like that it contributes in the success of firm.
 Time bound: A set time should be fixed by the manager for completing all set targets.
This increases the effectiveness of business operations and help organisation in achieving
efficiency (Frąckiewicz, 2012).
SMART objectives of Volkswagen is described as below-
 It wants to expand their market in Africa via joint venture.
 Enhancing efficiency level of firm by 40% in 8 months.
 Increment in sales by 30%.
So, it is necessary and important for the manager of Volkswagen to adopt the concept of
SMART targets during the process of making strategies regarding the business activities (Yin,
2016).
CONCLUSION
From the above information, it can be summarised that making an effective business
strategy to achieve success is very important for a firm like Volkswagen. For deciding the future
actions of business, organisational audit can be done by the manager of Volkswagen. By this,
they can identify the strengths, weaknesses, opportunities and threats of the firm. For doing the
environmental audit, PESTLE can be used by a firm for formulating effective policies. Further,
for expanding business activities in other countries, important strategy should be used by the
managers of firm for capturing a larger market share. It is necessary to define all roles and
responsibilities of personnel during the implementation process for getting effective results.
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