Business Strategies of Volkswagen: Impact of Macro Environment and Internal Capabilities

BUSINESS
STRATEGY

EXECUTIVE SUMMERY
The present report is based on Volkswagen Company in order to understand the business
strategies. In which it includes various concepts like how macro environment influence the
function and activities of business unit. The aim of this report is to explore all these aspects of
business strategies which could help company in carrying out all operation of business in
effective manner. And with help of SWOT, VRIO, PESTLE and so on frameworks, company
can attain its predetermined goal.

Table of Contents
Executive summery..........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..........................................................4
TASK 2............................................................................................................................................6
P2 An analysis of companies internal capabilities with the help of an appropriate framework
................................................................................................................................................6
TASK 3..........................................................................................................................................10
P3 Porters Five Force model to analysis competitive factors of market..............................10
TASK 4..........................................................................................................................................12
P4 Devise a strategic plan and strategy management plan for organisation........................12
CONCLUSSION............................................................................................................................14
REFERENCE.................................................................................................................................16

INTRODUCTION
Business strategies refers as a course of action or decision which assist business unit in
order to achieve specific goal or objective of company. Such set of competitive action helps
organisation in following favourable techniques and measures. This assist in directing right path
for reaching the stipulated targets. Whereas strategic planning means preparation of plan or plan
as well as establishment of path in order to reach organisational goal. It helps company to
increase operational efficiency, market shares and profitability along with this it makes business
more strong. The present report is carried out upon Volkswagen with the point of exploring
strategically decisions taken by firm over course of years. It was founded by German Labour
Front in year 1937. It is a multinational automotive manufacturing company, headquartered in
Wolfsburg, Germany. They operates their business globally with product line in passenger cars,
SEAT, SKODA etc. in order to become leading company in automotive industry. This
assignment belong to PESTEL analysis to identify macro- environment and SWOT along with
VRIO analysis to determine internal resources and capabilities. Furthermore, this paper includes
analysis of Porter's Five Forces model to gain insight into business competitive environment. At
the end, strategies plan is identified with the help of Ansoff's matrix.
MAIN BODY
TASK 1
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies.
PESTEL analysis framework that is used to assess the impact of macro environmental
factor on the functions of an organizational. To carry out operational activities as well function
of an organization in an efficient manner, it is essential to monitor the influence of external
factors (Bocken and et.al., 2016). Managers of Volkswagen are constantly engage in assessing
the influence of macro environmental factors on their business activities that is elaborated as
follow:
Political Factors: Political factors put a great influence on functions of a business. It
included various factors like political stability, tariffs imposed by government and many more.
Volkswagen is a European company has expanded its business worldwide. The operations as