Business Strategies of Volkswagen company : Report
Added on 2020-06-06
23 Pages5756 Words64 Views
Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................11.1 Mission, vision, goals, objectives and core competencies ..............................................11.2 Factors that needed to be considered while formulating strategic planning....................21.3 Evaluate the effectiveness of techniques used when developing strategies business plan3PART 2............................................................................................................................................42.1 Analyse the strategic positioning of a given organisation by carrying out an organisationalaudit........................................................................................................................................42.2 Carry out an environmental audit for a given organisation..............................................52.3 Assess the significance of stakeholder analysis when formulating new strategy............72.4 Present a new strategy for a given organisation...............................................................83.1 Analyse the appropriateness of alternative strategies relating to market entry, substantivegrowth, limited growth or retrenchment for a given organisation..........................................93.2 Justify the selection of a strategy...................................................................................104.1 Assess the roles and responsibilities of personnel who are charged with strategyimplementation.....................................................................................................................114.2 Analyse the estimated resource requirements for implementing a new strategy for a givenorganisation..........................................................................................................................114.3 Evaluate the contribution of SMART targets to the achievement of strategyimplementation in a given organisation...............................................................................13CONCLUSION .............................................................................................................................14REFERENCES..............................................................................................................................15.......................................................................................................................................................16
INTRODUCTIONIn recent scenario, business strategies are plays important role within the organisationbecause they helps to attain targets and goals as well as getting success in competitive marketplace. Thus, every business firms seeks to be adopt smart and appropriate methods within theorganisation so that they can enhance their increase their profitability and productivity ineffective and efficient manner (Scholes, 2015). Therefore, Volkswagen is a German Auto-makercompany thus at this time it is one of the largest and leading auto-maker organisation atworldwide level. This report will conducting a organisational and environmental audit in thecontext of Volkswagen. So that effectively identify the major factors which impacts on companyeither positive or negative. Apart from this there will explaining the importance or benefits ofstakeholders while implementing the business strategies within the company. Additionally, therewill significantly represent appropriate new strategy for Volkswagen. Moreover, majoralternatives of business strategies will explaining in a systematic manner such as market entry,substantive growth, limited growth and retrenchment. In the last, there will elaborating majorroles an responsibilities of personnel while implementing the strategies as well as will estimatingthe necessary resources. However, will significantly evaluate the affect of strategies on businessfir with the help of SMART method (Teece, 2010).PART 11.1 Mission, vision, goals, objectives and core competencies It is important for a firm to make effective business strategy which helps a firm inprogressing on the path of success in a stabilised manner. To ensure that there must be acomprehensive strategy it is important to inculcate mission, vision, goal, core competencies inthe strategic plan. Business strategy for any company is designed sighting the core competencyof the firm. As it helps in strengthening of the base of strategic plan and act as a support for theplan. On the other hand mission provides the last destination where firm aims to reach. This actsas a target citing which company makes its business strategy. Vision provides idealogicalframework to the construction of strategic plan. It acts as a torch bearer using which any strategicplanning is constructed. Goals and objectives acts as a blue of the targets that company aims toachieve by its business and hence it is the reason for which strategic plan is constructed. Somentioning of goals and objectives always provide the purpose of the strategic plan. Pearls1
restaurant is a SME that is operational in Edinburgh U.K. It is serving many people in thelocality. Basic ingredients for its strategic planning is as follows:Mission: To become one of the biggest restaurants in U.K. having a customer base ofhundreds of people by implementing the best services in the industry.Vision: To become the restaurant that is capable of serving best quality food where userscan relax with the ambient environment.Goals and ObjectivesTo satisfy the taste of users that comes for the life time experience. To enhance the quality of atmosphere inside the restaurant where people can relax in the dimlight and pleasant music.Core competencies: Pearls have the best quality chefs that comes from different parts ofthe country and has the knowledge of tastes of food served all around the world. These elementswill helps in making the business strategy for this restaurant.1.2 Factors that needed to be considered while formulating strategic planning.There are several factors that supports the strategic planning of the firms these factorsneeds to be analysed so as to make the strategy a success.Industry: For any firm it is important to understand the what is the state of the companyin which the firm is operating. This industry is growing at a very high speed hence the scope ofgrowth for pearl restaurant is bright in the future.Competition: strategic planning is done so that have competitive edge over thecompetitors. There are many small restaurants that are present in the locality and many biggerfirms are operational in U.K. The competition that this firm is facing is very high. In the outsideenvironment of the company regularly increase competition, so that sometimes directly impactson company's performance either positive or negative in nature. Thus, it is required to beeffectively identify the major competitors of the company then as per the situation should bechoose appropriate and suitable strategies within the organisation.Strength and weaknesses: In the construction of strategic planning strength andweakness of the firm needs to be evaluated so that the plan does not fails. Pearls has its strengthin the form of its skilled staff members as well as weakness is that it has less amount of financialresources. Any company's strengths and weaknesses are represent their power and capabilitiesdue to this, it is necessary to be identify and measure with the help of smart ideas and methods2
because it assist to take corrective action as well as aids to increasing profitability andproductivity of the company. Management: Pearl has a small but effective management team that is capable ofimplementing the strategic plan in a better way.Resources: Pearl has limitation of the resources as being a small firm it has low seatingcapacity as well as financial strength is weak.1.3 Evaluate the effectiveness of techniques used when developing strategies business planFor systematically analysing and measuring the effectiveness of an organisation so thatcompany can be used two type of methods such as follows: BCG Matrix: This is one of the important aspect or method for every organisationbecause in which all products and services are categorised into four sections, which areexplaining under follows: Star: These type of services and products of the company have high growth rate andhigh market share. Due to this, there are required to be invest more fund for taking appropriatedecision as well as for growing market share of the company.Cash cow: These type of services of the company has low growth rate and high marketshare. So that, there have high chances to increase revenue and profitability of the company. Dog: This section of BCG matrix defined low growth rate and low market share. Inwhich company does not invest fund they try to stop production and focus on to producesomething new products for customers.Question marks: This is the last stage of BCG matrix in which included those productswhich have high growth rate and low market share. Due to this, there have chances of risk. Profit impact of market strategy (PIMS): With the help of this technique effectivelyidentify the competitive advantage for an organisation. Therefore, there are explainingimportance of PIMS method such as follows:Inside and outside surrounding of the companyManagement systemEffective allocation of worksAppropriate strategies development for the company. 3
PART 22.1 Analyse the strategic positioning of a given organisation by carrying out an organisationalauditOrganisation audit refers to, identifying and measuring the actual position and conditionof the business firm (Astrachan, 2010). A effective audit helps to take corrective action as wellas aids in decision making process. Apart from this, with the help of SWOT analysis method caneasy to conduct organisational audit in the context of Volkswagen. Thus, there are included fourimportant aspects such as strengths, weaknesses, opportunities and threats. This method assist toenhance working performance of employees due to this they will significantly perform theirtasks so that respectively increase productivity and profitability of the company in a appropriatemanner. STRENGTHSWEAKNESSESThis companies has wide range of carsand services due to this customers caneffectively choose as per their needsand affordability. It has high brand name across all overthe world.Volkswagen is one of the largest andoldest auto-maker due to it easy toincreased their customer levelThis organisation has more than350000 employees within theorganisation at national andinternational levelVolkswagen has involved in hybridcars mad motor sports. Regularly increased the competitionlevel in automotive sector due to thisVolkswagen has limited market sharegrowth rate. Controversy and fraudulent activities ofVolkswagen impacted on its brandimage at global level.OPPORTUNITIESTHREATSVolkswagen has an opportunity it canInnovative things and features adopted4
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