Preparing Business Strategy for Volkswagen

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1, 1.2, & 1.3..............................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Organisational audit..............................................................................................................1
2.2 Environmental audit of Volkswagen.....................................................................................2
2.3 The importance of Stakeholder analysis in preparing strategies...........................................4
2.4 New plan of action for Volkswagen......................................................................................5
3.1 Modification of strategies in appropriate manner.................................................................5
3.2 Explain the selection strategy................................................................................................6
4.1 Roles and responsibilities of personnel in strategy implementation.....................................7
4.2 Requirement of resources for implementing the new strategy of Volkswagen....................8
4.3 SMART targets in business strategy.....................................................................................9
CONCLUSION.............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is an action plan which assist in achieving different goals and
objectives in an effective manner. The role of managers is to controlling, planning, directing
different programmes and activities within an organisation. It help company in analysing
different departmental decisions that are taken to complete particular task at given time period. It
is important to ensure that all resources are directed towards same direction which assist in
achieving higher efficiency rate (Scholes, 2015). It aids in bringing organisational alignment in
business process. Business strategy is used as a tool for gaining competitive advantage over the
market forces. Volkswagen is the multinational car manufacturing company which is based on
United Kingdom. It is global product brand which provide best car model to their clients or
customers, but recently it has break environmental laws which can damaged its brand image in
the country. Now they need to develop new business strategies which will provide direction that
can be followed for accomplish growth while minimise resource activity. There are different
tools and techniques which are used in this report and they will also use that for registering
growth and development.
TASK 1
1.1, 1.2, & 1.3
Covered in PPT
TASK 2
2.1 Organisational audit
An organisation who recently involved in market has to analyse whole market and its
factors for achieving better market positions (SWOT Analysis. 2017). It is essential for the firm to
managing its own audit that will help in matching its strength with opportunity of market. If an
enterprise does undertake this activity than its operations might get constraint. It is important for
the company to know its strength, weakness, opportunities and threats which assist in dealing
with different market situations (Verbeke, 2013). Recently, Volkswagen face a situation in which
they has to pay huge amount to the US environmental commission. The firm need to conduct
organisational audit as to gain knowledge related to the variables present in market and increase
its own capabilities in effective manner. Volkswagen is the firm which is present in more than

100 countries and they provide manufacture facilities in 27 countries which are exist in every
continent (Peña and Villasalero, 2010). The company use swot analysis as a tool to conduct
analysis which are as under:
Strength  Effective and efficient manufacturing group
 The firm always innovate their products
 It has approx. 350000 employees
 Flexible product range
 Modify motor parts and features of cars
Weakness  Very limited market share of company
 Competition is too high in this sector
 Brand image is damaged due to scandals
Opportunities  Developing relationship with different manufacturing companies
 Firm can also expand their business in other areas
 Adopt new design and features
 Emerging economies present in higher return potential
Threats  Environment laws can change whole market of company
 Rising in cost of raw material
 Government restricts big company like Volkswagen as to protect
local manufacture in market
 Constantly changes in technologies are increasing cost of firm
2.2 Environmental audit of Volkswagen
There are various types of factors that surrounds Volkswagen and managers needs to
manage and control them in an effective manner. The external environment is very disruptive
and it required to controlled by organisation so that any change can not affect company ability
and they easily serve products in the market (Montgomery, 2011). Volkswagen manage various
functions in countries and also they faces more risk in these external environment factors. It has
to analyse them so it will assist in gaining knowledge and develop action plan to overcome
threats. The firm conduct PESTLE analysis to evaluate factors in more effective manner