Business Strategy Essay of VW AG

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO 1.................................................................................................................................................1
1.1 Business mission, vision, objectives, goals and core competencies.................................1
1.2 Factors that considered formulating strategic plan...........................................................2
1.3 Effectiveness of techniques used in developing strategic business plans........................3
TASK 2............................................................................................................................................5
LO 2.................................................................................................................................................5
2.1 Strategic positioning of VW AG through organisational audit........................................5
2.2 Environmental audit of VW AG.......................................................................................6
2.3 Significance of stakeholders analysis to formulate strategy in VW AG..........................7
2.4 New strategy for VW AG.................................................................................................8
LO 3.................................................................................................................................................9
3.1 Appropriate of alternatives strategies related to market entry, substantive growth, limited
growth ....................................................................................................................................9
3.2 Selection of strategy for VW AG...................................................................................11
LO 4...............................................................................................................................................12
4.1 Roles and responsibilities of personnel at VW AG........................................................12
4.2 Estimation of the resources' requirement for implementing new strategy.....................13
4.3 Contribution of SMART targets to the achievement of strategy implementation in VW AG
..............................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

Illustration Index
Illustration 1: BCG matrix...............................................................................................................4
Illustration 2: PESTLE analysis.......................................................................................................7
Illustration 3: Merger and acquisition..............................................................................................9

INTRODUCTION
Business strategy made with strategic vision which require proper planning. Therefore,
planning consist important role which assists to enhance profitability and productivity in the
organisation. With this regard, mission, vision, tools, etc. included which assists to develop
effective functioning in business environment (Vaidyanathan and Aggarwal, 2015). Further,
business strategy also useful aspect to accomplish effective purposes and outcomes through
business will able to ascertain more effective functioning. In this context, present report is based
on VW AG which is automobile industry and operate functions in national and international
market through developing their plan. In order to gain insight knowledge of the company, report
covers strategic position which assists to deliver effective results in the business. Furthermore, it
includes environmental audit to identify impact of market elements on the business in those areas
where company organise their functions. Moreover, it discusses about the alternative strategies
which can be used by the business to enhance their performances in business unit.
TASK 1
LO 1
1.1 Business mission, vision, objectives, goals and core competencies
In order to determines strategic position, following are vision, mission, objectives, goals
and core competencies determines in Neil Westwood’s Magic Whiteboard:
Mission
Mission refers as the purposes set which need to be accomplish for development of the
results. It helps to increase the organisation performances in systematic way. Therefore, the
selected business will easily develop profitability at workplace (Alsudiri, Al-Karaghouli and
Eldabi, 2013). It includes following elements in mission completion:
 Create effective value for each customer in business unit.
 Maintenance loyalty towards the organisation performances.
 Increasing market share and program.
Vision
 Increasing number of customer and employees to create profitability.
 Enhancement in services to attract several customers of international market (Huarng
and Mas-Tur, 2015).
1