Business Strategy

This document provides an overview of business strategy and its role in strategic planning. It discusses the strategic positioning of Volkswagen and the significance of stakeholder analysis. It also explores alternative strategies for market entry, growth, and retrenchment.

Business Strategy
Business Strategy........................................................................................................................................................................1
INTRODUCTION...................................................................................................................................................................... 4

TASK1........................................................................................................................................................................................ 4
1.1Assess how business missions, visions, objectives, goals & core competencies inform strategic planning...............................4
1.2 Analyse the factors that have to be considered when formulating strategic plan.......................................................................4
1.3 Evaluate the effectiveness of techniques used when developing strategic business plans.........................................................5
M1 Make an effective judgment about the value to your business plan of mission statements, vision statements,.........................5
M2 Explain and then evaluated the key techniques available to the business.................................................................................5
TASK2........................................................................................................................................................................................ 6
2.1 Analyses the strategic positioning of Volkswagen....................................................................................................................6
2.2 Carry out an environment audit for VW AG.............................................................................................................................6
2.3 Assess the significance of stakeholder analysis when formulating new strategy for Volkswagen............................................7
2.4 Present a new strategy for Volkswagen.....................................................................................................................................7
TASK3............................................................................................................................................................................................ 8
3.1Analyse the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth or
retrenchment for Volkswagen.........................................................................................................................................................8
3.2 Justify the selection of a strategy..............................................................................................................................................8
TASK4........................................................................................................................................................................................ 9
4.1 Assess the roles & responsibilities of personnel.......................................................................................................................9
4.2 Analyses the estimated resource requirements for implementing a new strategy......................................................................9
4.3 Evaluate the contribution of SMART targets to the achievement of strategy implementation................................................10
CONCLUSION......................................................................................................................................................................... 10
REFRENCES............................................................................................................................................................................11
INTRODUCTION
Business strategies are the long term plan framed for mainly achieving the goals and objectives of the
business organisation including the various factors. It leads to specifying the targets and the objectives of the
organisation. It also helps in framing plans and policies for the business for their operations. Volkswagen is an
automotive industry deals with the several types of car lines established mainly in the German and it is the largest

automaker company worldwide (Phapruke Ussahawanitchakit, 2011). In this report the Volkswagen asses their
business vision, mission, goals into the strategic planning and also highlights on the significance of the stakeholders
on the strategic planning.
TASK1
1.1Assess how business missions, visions, objectives, goals & core competencies inform strategic planning
The strategy are the directions which helps the organisations to set up their long term goals and cope up with
the business environment and aims at completing the expectancy level of their shareholders. The Volkswagen must
consider must framed flexible strategic decision for their company which aims at a gaining the goals and completing
the target settled by them.
Mission: The mission is mainly consists with the providing of the general information of the company and their
purpose that they will imply for achieving their missions. The mission of the Volkswagen explains the image of their
business and the target set by them for reaching to the success level.
Vision: A vision includes the main working ideas for the working performance in the business. It leads to generation
of certain ideas for the business (Choir, 2014.). It also helps in identifying how business will be reached towards its
objectives. The Volkswagen mission details about the growth level in their business and how to do more
improvement in their business.
Goals and objectives: The goals are considered as the outcomes from the planed source it consists of achieving some
targets. Goals can be of short terms as well as long term. The Volkswagen attains to get maximum sales and gets a
high rate of profit level and providing satisfactory services to their customers.
Core competencies: The core competency includes various factors and resources collectively that sates to be
different in nature in the market (Hirschinger, 2016.). The Volkswagen works on their various tools and performing
the actions with advanced equipments to survive in the competitive world.
1.2 Analyse the factors that have to be considered when formulating strategic plan
There are certain factors that need to be considered at the time of formulating the strategic plans. The factors
are:
Communication- The effective communication is a most important part in any business. The strategic planning can
be successful when there is a healthy communication between all the levels from top to the operational making aware
them about the strategic planning.
Culture- Culture is a lifestyle. Understanding the cultural values helps in getting the culture support towards the plan.
The organisational culture contains various factors such as the attitudes of the employees, beliefs, values and
behaviour against each other.

Environmental factors- At the time of strategic planning the external and internal factors must be considered and
evaluated. The Volkswagen must try to cope up with the changes in the environment and adapts certain changes in
their working which also leads for the betterment in the work performance and helps in surviving for longer term in the
competitive world.
1.3 Evaluate the effectiveness of techniques used when developing strategic business plans
BCG matrix- The BCG matrix is also called by the growth matrix. The BCG matrix is mainly based on the
product life cycle theory which helps the business in identifying the most suitable appropriate strategies and a certain
level which should are required to particular business unit. The BCG matrix also plays an important role in the
strategic planning. It determines the profitability state of the business. The BCG matrix is distributed into four
categories mainly as cash, cow, dogs and the question mark (Park, 2014). The model helps the business in identifying
whether they are required to invest n the business or required to do discontinue in their business or sometimes they
are n the state of developing new products.
GE MCKinsey matrix- This model mainly highlights towards the industry sector and the business unit
strength. They include the nine cells and deals within the certain types of variables and are determined by evaluating
the criteria and executing the value of each and later multiplying the value with the determined factors. It is a
guideline structure that analysis the business portfolio and further implicates the strategic planning and determines the
investment requirements in each business unit. The GE MCKinsey matrix considers more complicated in nature.
M1 Make an effective judgment about the value to your business plan of mission statements, vision statements,
The business aims at achieving the maximum rate of profits and doing the large number of expansion in the business.
For running the business successful the vision, missions are stetted which leads to set up an performance standard and aims at
achieving the particular target settled (Galvin, 2014). The goals are the benchmarks fixed up the company to reach a certain
success level. The adaption of new technologies working with cope up in dynamic environment leads to survive in the
competitive world and retains long term life of the business.
M2 Explain and then evaluated the key techniques available to the business
The business performance and techniques are based on certain parameters. They are deepened on the certain model. The
BCG matrix plays an important role in the business. It provides a blue print for the business and helps in identifying whether
there is requirement of the investments in the business or requires to do discontinue the business activities. It searches out the
needs of developing of the new products. The GE MCKinsey model emphasis on the strategic planning and identifies the
investment requirements in each business unit.

TASK2
2.1 Analyses the strategic positioning of Volkswagen
For analyzing the strategic positioning of the Volkswagen the SWOT analysis can be done which helps in
identifying the strength, weakness, opportunities and the threats. By gathering the information through the SWOT
analysis the Volkswagen may take actions related to the business strategies for gaining the targets and the objectives
of the business. The SWOT analyses of Volkswagen are:
Strength:
 Has an ability to work in the dynamic environment.
 The Volkswagen has a strong relationship with china and had a joint venture with the local Chinese
automakers.
 They had a great expansion of business in several countries and have the most largest portfolio among all the
competitors of automakers.
Weakness:
 They have a low market share
 The Volkswagen had a led a negative impact in the peoples mind of their brand
 They suffer from the low expertise knowledge and had no innovation in work related to battery vehicles.
Opportunities:
 They have an opportunity to perform within the changing environment.
 The Volkswagen has the opportunity to get emerged in the Indian market and expands their business.
 They can grow more factories in china for the further growth of the business (Li-heng, 2013)
Threats:
 Increment of other competitive brands
 The local transportation facilities decrease the sale of the cars individually
 The government rules and taxation policies.
2.2 Carry out an environment audit for VW AG
For getting the detailed knowledge about the environmental situations of the Volkswagen the PESTEL
analysis can be done.

 Political factors- The political factors influence on the political behavior of the business. It includes the tariff,
taxation policies and gets influenced due to the international trade and effects on the subsidies on the taxes
and duties and affects on the overall legislation.
 Economic factors- The economic factors consist of the influence on e exports and imports and the activities
related to their taxation rate changing. There wide range in the economic scale and their capacity power which
leads to cause for the industry.
 Social factors- The Volkswagen aims at performing the work by filing the corporate social responsibility
(CSR) (Rangkuti 2013). The social factors also highlights on the consumers behavior and taste and
preferences and their ability of purchasing the car.
 Technological factors- It leads to innovation in technology working with new technology for cars and
advancements in the work performance.
 Environmental factors- The environment faces certain issues related to global warming and certain climatic
issues. As the organization produce various levels of waste from their production like chemical waste and co2.
The Volkswagen consists working on vehicles that emerged low gas emission and moving towards the green
products.
 Legal factors- The legal factors include the rules and the regulations and consider the legal process for the
working. The legal part includes the trademarks of the vehicles and the competitive brands and their branding
positions.
2.3 Assess the significance of stakeholder analysis when formulating new strategy for Volkswagen
Stakeholders analyzing is a method of determining the effective people that have a great interest in the
business. They had a significant impact on the business activities and they are also engaged in the decision making.
The planning for the business can also determined by them. The Volkswagen firstly identify the strengths of their
stakeholders that helps in making changes in the strategies of developing the new strategy which leads to an
increments in the business activities (Milovanovic, 2015). For the generation of the new project an formulating the
changes in the existing strategies of the business the Volkswagen has to evaluate the stakeholders that will helps in
analyzing the behavior, attitude and the interest of the stakeholders. By analyzing the stakeholders the Volkswagen
will be in a state to identify the role player within the organization and with whom management can allot the roles
and duties for the dynamic environment. This indicates the delegation of work according to the interest of the
individual. The organization also consists a regular check or monitoring the stakeholder performance which aims at
evaluating the strength and for attaining the business strategy. By providing the sufficient knowledge to the
stakeholders about the changes leads to a beneficial for the business at the time of planning.
2.4 Present a new strategy for Volkswagen
The new strategy adopted by the Volkswagen is of growing together. They aim at building up a new and a better and
powerful Volkswagen. They facilitate their customers with providing more vehicles according to their suitability and the range
and deals with various technological changes for getting them in implementation for their business. They focuses on presenting
an attractive investment policies which provides them profitability and remains reliable in nature. For overcoming from the

financial crises and surviving in the competitive scenario they may adopt the market strategy such as joint venture. The joint
ventures are considered as the effective strategy in terms of development of the business. The Volkswagen according to this
market strategy may evaluate the situation and helps in determining the other organization who are well established in the
market. This includes low funds and the recruitment of the skilled staff and they may also continue with the existing staff y
providing them training and briefing the about the work and target more on the staff who has more depth knowledge about the
market and their production related activities (Ghikas, 2012). The joint venture considers the risk factor at the minimum level
as both the parties have equal distribution of the resources an equal support and contributes according to the contract in the
organization both are responsible.
TASK3
3.1Analyse the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth
or retrenchment for Volkswagen
There are various alternative strategies that can be implemented by e Volkswagen for achieving the objectives and
goals. The following alternative strategies are:
Substantive growth- The substantive strategy includes the horizontal and the vertical integration that can be utilized in the
expansion of the business. It is beneficial in getting the resources which the competitors are involving at the time of preparing
the same segments o the business. The Volkswagen leads to supply of their products in different states and in different
marketplaces this provides them a idea of different cultural and trends changing of the different places which helps them in
producing according to it and surviving more in the competitive world (Milovanovic, 2015). Doing sufficient changes by the
Volkswagen in their products line and services leads them for beneficiary and encourage them for doing more expansion in their
business and reaches business to a certain competitor level. This leads to providing more satisfactory services to the customers.
Growth strategy- For the expansion of business and achieving the goals of the business the Volkswagen may executed the
growth strategy. This helps in promoting the existing products into the new market including several benefits. This leads for
expansion of business and making aware the people of the various products.
3.2 Justify the selection of a strategy
By adapting the values that have been evaluated from the external and internal market of the Volkswagen, the joint
venture that is the market growth has been determined for the management. For implementing the strategy the company may do
not have to more changes the slightly change are required in the functional activities and also regarding the policies build up for
the staff members they framed for the further processing does not requires a huge amount of change or development( Business
strategy, 2017). This leads to an easily acceptable method for the organizations as does not require many efforts for the change.
These strategies will also helps the Volkswagen is investing a low amount of funds for the development of the infrastructure.
They acquired the skilled staff members for the operations to be performed. It will emphasis on the increment in the production
level as the risk factor gets distributed among both the parties (Agustang, Suparman and Hastuti, 2016) .The sharing of the
risk will helps them in taking more decision related to production frequently as they both will be responsible for any uncertainty
occurs due to any consequence. They aims at creating marketing strategies more feasible in nature and changes according to the
dynamic environment and adopts certain technological changes in their business. Joint venture focuses on fuller utilization of
the resources at its best way and hires experts for the operational work and for the better utilization of the technology.

TASK4
4.1 Assess the roles & responsibilities of personnel
The personnel are mainly responsible for the various activities in the strategic planning. The roles of personnel which
are important in marketing implementation are:
Role of finance manager- For the execution of the strategy for the joint venture the finance manager plays an important role.
They will be looking over the financial transactions and will identifying the estimated cost which occurred in the starting period
of first three and four months and are responsible for providing the sufficient information to the top managers for doing further
changes in the financial state of the Volkswagen (Fu-xiu,2012). The managers will also focuses on the return on investments
values for both the partners.
Role of research and development manager- For the implementation of the new strategy in the market the role and research
manager may gathers information related to that new strategy and their uses and highlights the changes that the Volkswagen will
be facing t the time of executing of that strategy. The manager will evaluate and explores the market and collaborate the
existing policies with the new plan.
Role of production manager- In order to execute the new strategy in the market the production manager plays a significant
role. They are responsible for providing training and guidance to the new staff as well as the existing for the further processing.
The production manager determines the issues related to the business by analyzing the strategies before implementing them
(Gupta, 2011 ).
4.2 Analyses the estimated resource requirements for implementing a new strategy
There are various resources required for implementing a new strategy in the Volkswagen. The resources which are
required at the time of execution of strategy are:
Technology- Techniques are the sources for the production which reduces the human efforts. There are different types of
techniques which are obtained by the competitors for their business. The Volkswagen must adapt certain up graded technologies
for their processing which helps them in moving towards their goals and objectives. There work may be based on the joint
venture strategy. The modern technologies and innovative methods help in increasing the production level and increase the
productivity.
Human resources- The Volkswagen will hire the experts in the fields. They may be hired for the implementation of the
different strategies. For keeping a regularly check on the activities of production and for training providing the Volkswagen
requires a human resource who may look upon all the essential business work.
Financial resources- Finance is the most important factor for any business. For the execution of the strategy and at the initial
stage of the joint venture the Volkswagen requires financial funds for the regulation of work for the further communication and
for the equipments the finance is required. For the business operation and for providing salaries to the employees in the
Volkswagen they require a stable finance position.

4.3 Evaluate the contribution of SMART targets to the achievement of strategy implementation
It is a mandatory for the Volkswagen to performs the work according to the SMART objectives that are been regulated
for the new strategy. The SMART targets help the company to focuses on the performance and business and also aims at
maintain the standards. They mainly highlights on the doing efforts for the increment in the level in the business and motivates
the business for engaging more in the production and the sales departments which leads to increases the productivity and
reaches to a profitable state. This type of targets helps the Volkswagen in sustain the business in the china markets. Apart from
that the SMART targets helps the Volkswagen to maintain their operational flow of the business and performs the business
activities in such a way which provides them maximum effectiveness. Despite of several advantages the SMART targets an also
face consists May disadvantages in nature (Effendy and Baizal, 2013). They have the lack of consideration on the
technological factors and the investment factors at the time of implementation of the strategies. They mainly focus on the targets
level related to the one unit measuring which does not helps in gaining the goals and objectives as of whole also leads to a
decline state and considers as the drawback of the SMART targets. Moreover the Volkswagen have the sufficient knowledge
related to their fields and for implementing of the resource for the strategic planning but the using of technology lacking from
the SMART targets affects the business operations.
CONCLUSION
From the above report it has been concluded that the business strategies plays an important role in any business. They affect the
business operations. A proper business strategy helps in granting the success to the business. Business strategies emphasis on
the growth and sustainability level in the market. The Volkswagen is a car manufacturing industry. The mission, vision, goals,
objectives and the core competencies of the Volkswagen are been discussed. The external audits of the Volkswagen also
occurred and focus on the needs of the stakeholders within the organizations. The Volkswagen work is based upon the joint
venture in the report and also with the potential organization. The report also highlights on the roles and the responsibilities of
the leading people and the requirements of the human resources financial resources and the technological resources at the time
of implementation of the strategy in the Volkswagen.
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Online
Business strategy . 2017. [Online]. Available on < http://businesscasestudies.co.uk/business-theory/strategy/business-
strategy.html>. Accessed on [22 May 2017].