Business Strategy and its Applications

This assignment delves into the realm of business strategy, analyzing its theoretical foundations and practical applications. It presents a collection of case studies highlighting diverse business strategies employed by prominent organizations such as Volkswagen AG, DBS Bank, and others. The assignment encourages students to critically evaluate these strategies, considering their impact on firm performance, competitive advantage, and organizational sustainability. It explores key concepts like continuous wave strategy, big data analytics, climate change adaptation, transparency in business practices, supply chain management, digital transformation, and the role of leadership competencies in shaping successful business strategies.

Business Strategy

Table of Contents
Introduction................................................................................................................................................3
1.1 Assessing business missions, visions, objectives, goals & core competencies informing strategic
planning ...........................................................................................................................................3
1.2 Analyzing the factors that can be considered when formulating strategic plan .....................4
2.1Analysing of the strategic positioning of VW AG .....................................................................5
2.2 Carrying out an environment audit for VW AG......................................................................7
2.3 Assessing the significance of stakeholder analysis while formulating new strategy for VW AG.7
2.4 Justifying the selection of a strategy for V W AG...................................................................8
3.1 Analyzing strategies related to market entry, substantive growth, limited growth or for the
retrenchment VW AG.......................................................................................................................9
3.2 Justifying the selection of a strategy for V W AG.................................................................10
4.1 Assessing the roles & responsibilities of personnel at VW AG for strategic implementation. 11
4.2 Analysing the resource requirements for implementing a new strategy for V W AG..............11
.......................................................................................................................................................12
4.3 Evaluating the contribution of SMART targets for the achievement of strategy implementation
in V WAG.......................................................................................................................................12

Introduction
A business strategy plays a very important role in any organization to achieve a desired goal. It
can be termed as a long term business planning. Business strategies can take about 4-7 years. It deals
with major problems like increasing finance to develop new factory. Planning should be done for
deciding the products that need to assign leading resources(Agrawal,2016). Strategies are related to the
scope of a business activities like what and where to invest. This report describes various business
missions,goals,factors that need to be considered while formulating strategic plan. In addition to this it
analyzes the strategic positioning and carry out environment audit of V WAG (V WAG, 2017).It also
brings the strategic evaluation V WAG. Apart from this it assess the roles and responsibility of
personnel at V WAG and the contribution of SMART targets to the achievement of strategy
implementation in V WAG.
1.1 Assessing business missions, visions, objectives, goals & core competencies informing strategic
planning
Business Vision-:A vision gives a thought of what the organization want to accomplish. It is related to
accomplishment of something in future. It should be an inspiration for the people in organizations.
Mission-:It is about what can be done in order to achieve vision(Aitken,2016). A mission
statement do not need intuition,it gives a clear picture about what organization can do and what it can't.
A good mission statement should be-:
 Short-:It should be easygoing ,every person must be knowing about the statement so that they
can use it in their correct context.
 Simple-:It can be used in day to day life activities. Words should not be complicated that cannot
be utilized in daily purpose.
 Operative-:It should give a clear way and must pay its attention on what an organization does
and information about allocating resources.
Objective and goals-:It is a type of statement will help to achieve the desired goals of the organization.
Goals can be achieved through the hard work done in the organization. Various example of business
goals include-:
 Increment of gain margin

 Increment in skillfulness
 Improvement in employee training
Core Competency Theory of Strategy-:This is a strategic theory that provide action that need to be
taken by the firm to accomplish welfare in the competing market. The concept states that the firms
should work only with their strengths in the places where they face competition. Organization should
bring out their plans to enter inside the core competencies and the core ability is the important ground
for the worth increased by the firm. Each organization have a particular field in which it does well in
comparison with their rivals,this field can used again by the organization in other products as the field
of strength will increase its customers(Akter and et.al,2016). The main strategy is that the firm should
pay more importance on its strength and work with the advantages.
1.2 Analyzing the factors that can be considered when formulating strategic plan
Companies around the world generally acquire strategic plans. They generate a sight of their future and
develop plans requires to go there. Some of them are unable to realize their vision and this leads to
failure of delivering the desired outcome. The execution department cannot find out there reason for
the failure so they repeat the strategic plan again and again,in the hope that the next plan will provide
good outcomes. There are 4 factors that can be utilized for ensuring strategic plans-:
 Engagement-:Planning of strategies is a process not an event. A major element of any process
is the involvement of the entire workers in the organization. Involvement of workers is
important in planning strategy and direction for the organization. Input from employee's will
provide knowledge on issues,opportunities,concerns that have not been known or understood
before. The strategies are not executed by the senior management,this work is done by staff.
 Communication-:Planning of strategies are successful when the communication approaches
can be added. The communication starts by informing the employees about the strategic
planning that will be undertaken(Amran,Wong and Hashim 2016). Communication can be of 2
types bottom up and top down. The involvement of the employees in the process is bottom up
communication. Employees will produce the input according to strategic planning by giving
surveys or feedback. This accompanied by the top down communication.
 Innovation-:The strategic plan provide ideas to produce a different product or to give new
service or rebuilding of a department etc. These put up the team to work together to apply their
knowledge on important initiatives and provide them with money to establish success.

Innovation plays a very important role in organization. They develop new plans for creating
new products and services. Many organizations ask their employees to be more innovative.
 Project Management-:Once the strategic plan is made,there are 2 important factors that are
related to project management. First is to find out what the project needs to achieve
success .Second is to develop prioritization of all projects to isolate between high priory and
low priority projects.
1.3 Evaluating the effectiveness of techniques used for developing strategic business plans
The important activity for any company is business planning besides the size,industry or region.
The business process can be sometimes discouraging as people with less experience in this field can
make utilization of variety planning techniques. The usage of these techniques effectively will ensure
that idea has enforced and output will be achieved.
SWOT Analysis
It is one of the element of business plans,either for the entire business or for specific function
we perform SWOT analysis. It is an acronym for strength,weaknesses,opportunity and threat. It is a
process where all participant of planning find out all the factors related to external and internal that
they are facing. The final feedback is then considered and prioritized to find the items on top of each
category. These are then taken as a input to produce goals,objective.
Nominal Ranking
This is also like SWOT analysis which is done to produce the long list of unit. The participants
are provided with the quantitative amount of votes that they can utilize for any unit on the list,by
providing various votes for one unit if they want. They offer sticky dots to participants to use them on
flip charts where the unit have been put. Once voting is done by all participants,the votes are counted
for every unit are checked and find out the highest raring unit(Baraibar‐Diez, Odriozola and Fernández
Sánchez,2017).
Team facilitation
The supporter of planning effort will play a crucial part and is responsible for assuring that the
process works smoothly from start to end,each and every person must get an opportunity to give the
input. The aim of the team is the development of plan that need to be achieved. There are various team
facilitation techniques such as active listening,reinforcing positive feedback. The team has to go
through various number of sequential steps like formation,storming,performing that would need

different skills.
2.1Analysing of the strategic positioning of VW AG
The main strategy and goal of the Volkswagen group is to position its brand as the leader among
the all other auto mobile companies and desires to be the most fascinating and wealthiest auto maker
among all. The study has been made through the SWOT analysis to explain the companies position in
an organizational audit.
 STRENGTH: The Volkswagen is the largest brand among all other auto mobile companies
because the vehicles are sold among different brands like – Audi, Seat, Skoda, Bentley etc.
furthermore there goal is to introduce about 30 electric vehicles which will give a huge
competition to its rivalries. Not only this those vehicles will be made with high technologies
with advanced battery and autonomous digitization. The brand will be diversifying in such a
way that it will give a huge competition in market.
 WEAKNESS :The huge or big time weakness of this brand is the scandal of software held
during the year 2015 which resulted in a big loss for the company where almost 5 million cars
were returned back to the company. Moreover, in Indian market the demand for Volkswagen is
quite less if compared with Hyundai and Maruti(Buckley,Burton and Mirza,2016). Not only this
the brand is even in loss due to spending a lot of sum on its parent brand like Audi, Porche and
many other brands.
 OPPORTUNITIES:As the fuel prices are falling in the near future which results in increasing
the demand for the cars and after the scandal was done during the year 2015 the company has to
again build the morale of the buyers resulting in the better upcoming of the engineers with the
technologies in innovative manner.
 THREATS: The major drawback or threat of the company is the scandal which has badly hurt
the image of the company resulting in decrease in faith of the buyers. We are well aware of the
increasing competition among the various auto cars in the market which may occur future losses

for the brand.
2.2 Carrying out an environment audit for VW AG
Volkswagen AG is one of the world's 2nd biggest automaker int the market after
Toyota,because of its good performance in China and Brazil since last year. It make and sells car under
different brands. The macro factors that are to be taken care in Pestle analysis have huge effect on
economic condition in Europe.
Examine an audit for V WAG
Pest analysis is done for external environment of a specified company on specified market in a
specified country. To figure out the external environment conditions for V WAG we conduct Pest
analysis(Dahlberg,Hokkanen and Newman,2016).
1)Political factor-:One need to know that V WAG is in Germany which is a foreign market. There are
numerous ways that the company can develop cars in a more competitive manner. Canada do make
luxurious cars because of strict rivalry among different brands.
2)Economic Factors-:As per the scenarios Canada people are not really want to purchase items that
are termed as luxuries. The important traits of Canadians is the income distribution. People over there
are not narrow minded,they pay more attention on wealth.
3)Social factor-:This is related to economic factor. Since the population of Canada is less,which results
in issues of delivering products and services to customers.
4)Technological factor-:The products V WAG are similar to other brands that produce high developed
cars and have a safe ratings among the rivalries.
Canada should take these points into consideration for faster development ,where the expectations of
the government is high by increasing the citizens continuously. So this will lead to more demand for
cars to be more expensive,but will produce efficient cars. V WAG car company has the ability to
become number one leader in the market place.
2.3 Assessing the significance of stakeholder analysis while formulating new strategy for VW AG
Stakeholder analysis is a revaluation and thought process of the outcome that stakeholder have
on a particular business. This has increased its importance as entities of non-shareholder that are

customers,employees and other partners that are the reason behind companies success. V WAG
understands the power of every stakeholders and develop strategies on how to involve then in regular
practice.
 Marketing Strategies-:V WAG develop market plans,that gives a brief consideration to the
stakeholder group..The basic expectation is to be fair,honest,transparent in the communication.
The integral marketing tools is conducting a marketing research that can be utilized according
to the wants and prompt the customers. Development of products and their promotions are
influenced by research study that provides the important attitude to consumers in analysis.
 Employee motivation-:V WAG examine the role and responsibility of employees in their
company to assist them to achieve satisfaction and production. The important assessment for
employment consideration are turnover and morale. They should try to understand the wants
and wonder of the employees that V WAG provide to encourage them. The only expectation
that employee want is to provide them with ability to provide their valuable input in decision
process(Fiorino and Bhan,2016). In addition to this,it should also monitor employment laws
such as promotions,hiring to meet desired target in workplace.
 Corporate citizenship-:The responsibility of balancing both social an community work with
profit is the expectation of V WAG company. The leaders wants that one work with honesty and
sincerity.
 Formation of partnerships-:This is a type of collective work among
manufacturers,developers,distributors to provide the good product to its consumers. The
expectation of partners is to work in a open environment for the benefit of the company. The
aim of V WAG is to offer long lasting values,provide good environment for work and
conservation of resources.
2.4 Justifying the selection of a strategy for V W AG
The latest strategy showcased by the company is to become one of the most popular and most
fascinating brand globally. Further, the strategy of the year 2018 which the brand has highlighted
during 2008 is the sign of the upcoming diversification of the auto cars. Another main strategy of this
company is to become the most environment friendly brand by utilizing the resources in the best
possible way.
 The goal of the company is to become the most innovative and successful venture globally by

delivering the best to the costumers and provide them with complete satisfaction. As we very
well know that the main aim of the organizations are to serve the best to their costumers.
 Another strategy of the company is to develop its sales above average and aims to initiate sales
above 10 million auto mobile per annum. Not only this the company even wants to achieve the
sound financial position among its rivalries(Johnson,2017).
 The major focus of the company is to create standards among the all other auto motive brands
and wants to create and innovate their existing resources in such a way that it creates the
excitement among the costumers to divert towards the Volkswagen brand.
 The strategy of the company is also beneficial for the economic growth because develop of the
technology results in increasing the need of human resources with in turn results in generating
more employment to the highly skilled labor and further more those skilled labours generate
more of the creative ideas which results in the supreme quality products and services and also
leads to the increase in the growth of the company.
 For instance, the another strategy of Volkswagen is to widen the costumers globally by serving
them with the environment friendly services which is even flexible in environment and
highlighted with high efficiency. Further, aims at a long term profitability of sales.
3.1 Analyzing strategies related to market entry, substantive growth, limited growth or for the
retrenchment VW AG
There are various ways by which an organization could enter in a foreign business. There is no
special strategies that is require for global market. Strategies that V WAG can use for market entry are
as follows-:
 Licensing-:V MAG tries to use this arrangement as it allows a firm to transfer the rights for
usage of services to some other party. This strategy can be proved beneficial if the purchaser has
a huge market share in the marketplace.
 Franchising-:This strategy will lead to speedy enlargement of market. V WAG use this plan to
build a repeatable models that can be transferred into the market easily.
 Joint ventures-:This is a form of partnership that leads to development of independent
companies. Two parties work together to develop third party to tackle this.

 Substantive growth Strategies
 Some of the companies have ideas to increase the growth of the business with the increment in
sales and profit. The growth strategies that are used by V WAG are as follows-:
 Market Expansion-:This strategy is utilized by V WAG for the development of market,thus
selling its product to new firm. Various companies try to adapt the market expansion strategy as
if a business cannot find new markets for the product,then there would be no sales and profit.
 Acquisition-:Strategies for growth in business also involve acquisition. Through this a firm can
buy the firm to increase its operations(Shepherd and Toms,2017). V WAG can make use of this
to increase its business to develop a new market.
limited growth or retrenchment strategies for V W AG
These strategies are used by V WAG in order to deduct one of its business operations with the mindset
of reduction in the expenditure and will reach to more stabilized business position.
The various retrenchment strategies are as follows-:
1)Turnaround strategy-:It is a withdrawing from a wrong decision that had been made before to
change the decline process. Various indicators are provided to decide when the turnaround is required.
2)Divestment strategies-:It is a type of structuring plan that is done again and is used when
turnaround is attempted but is not proved to be successful.
3.2 Justifying the selection of a strategy for V W AG
While selecting a strategy a company can select substantial growth strategies as this will give
plans that will be beneficial for the growth of the company and profit and sales will be enhanced. The
main goal of any business strategy is growth. The achievement of substantial amount of growth in the
business strategies can overcome other deficiencies.
 Exponential Growth-:This is one of the advantage of getting substantial growth as it will
produce more growth in the coming years. Growth of wealth will also enhance. The current
funds that are added in the growth can utilized to fund other project so that wealth that is gained
can be used in future.
 Competition-:The factors that are utilized to consider the competition are strength and strategy.
The achievement of substantial growth gives a way to see success against the rivals. The usage
of additional wealth from growth,will be helpful in a business to invest in other projects to

increase market share. The growth achieved by the business is a sign of gaining a competition
 Creating of wealth-:If we look at a business through larger perspective,the the substantial
growth achieved not only benefit the owners and employee but also increase the society
wealth(Sia,Soh and Weill,2016). The creators of private business are important for the social
group as they increase the standards of living and will provide a better living for individual
subject.
 Priorities-:The key concern for any business strategy is decision of which goals should be
given which level of priority. Deciding the priorities is considered as a key for any business.
This comes under process of planning. The increase of growth is an advantage for business
strategists for developing their steps distinct.
4.1 Assessing the roles & responsibilities of personnel at VW AG for strategic implementation
Roles and Responsibility of managers for strategic Implantation
A manager have a very important part in strategic implementation. The manager can be considered as a
owner of strategic implementation in the department. The content they provide gives a link between
levels of organization. The responsibilities of managers are-:
1)The managers of V WAG should be aware about the importance of strategic execution and must give
100% to their work. This will need to do some extra hard work,most of the managers can easily invent
a new plan but finds difficult to implement it.
2)The managers must try to understand what strategic implementation is about and could be able to
enhance its role in this process.
3)Development of strategy implementation,is one of the important trails of leadership. A good manager
should be good at strategic implementation(Siedel,2017).
Strategic implementation process need the work and care of employees and managers at each levels of
business,as the implementation process has the power of impacting a huge range of responsibilities.
Employees need to be aware about their responsibilities in the process.The responsibilities of
employees are as follows-:
 Impact of job-:In order to make process change successful,employees need to see the changes
that can affect their job work directly or indirectly. In indirect change,employee should be alert
of the changes that can come in the organization and what impact they will have on job
function.

 Communication-:The most important part of employees during implementation phase is to
keep the communication lines open. This may include time taken for voice ,solving of
difficulties of changes. The management team should remain touch with the other workers to
overcome the problems that will helpful for them to make implementation process simple.
 Consideration-:The change leader will be an example for other workers and will give
employees a platform when the problems arises. It will be useful for employees to get help from
suitable channel.
4.2 Analysing the resource requirements for implementing a new strategy for V W AG
 Strategy provide direction and scope to the company for a long period of time by meeting the
market wants and fulfilling expectations of stakeholder. Business resources for V WAG can be
divided into several parts-:
 People-:According to V WAG one need to make sure that they have the correct people around
in the company(Agrawal,2016). By this they mean they should possess desired skills that are
required to support the strategy. V WAG expand the skills of employees by providing training
and by hiring new talents.
 Financial Resources-:Such type of resources have the power to finance the business according
to the desired strategy. For example-:The investment in new products will require a strategy that
will put a stress on business finances. The need of strategy should be managed properly from
the view of finance. The examination of financial resources should conduct assessment of these
factors-:
 Existence of financial funds-:These include cash balances,bank and other loans,creditors like
government and suppliers.
 Power to provide new funds-:This will depend on the capability and honor of the management
team and the relationship strength of investors and lenders.
 Human Resources-:Such resources deals with the skills of the business. The skills that
business have are they enough to meet the demand of the preferred strategy. The examination of
human resources should conduct assessment of these factors-:
 Existing staffing resources-:It includes the staff number by experience,grade,location, and the
key roles for the specific training standards.

 Changes according to resources-:This will provide the required human resource that need to be
increased,changes that has to made in the business are there in the strategy.
Physical resources-:This category covers a huge range of resources that are related to physical abilities
to generate a strategy
4.3 Evaluating the contribution of SMART targets for the achievement of strategy implementation in V
WAG
Specific V WAG will increase its sells by 5% in next year.
Measurable It will be measured through sales records
Attainable Objectives are attainable as they have been determined by conducting proper
marketing research
Relevant These are relevant according to the vision of the company.
Time-Bound The time period taken is about 1 Year to achieve this target.
SMART is a rule that is used by V WAG for strategic implementation as it gives a clear idea on
how to goal are set so that everyone are clear with it and collectively the goal is achieved with
understanding. The utilization of SMART in V WAG company has brought a positive impact as this has
lead to the growth of the business which in turn had increase its profit and sales(Soltanizadeh and
et.al,2016). The SMART provides the specific plan or objective that can converted into numbers so that
they can be achieved,they provide realistic plans and ideas that has to be achieved in the given time
period.
Conclusion
Summing up the above report it can be concluded that the significance of business strategies in
a business how strategies are developed to achieve the goal. The factors that can be considered for
strategic planning can be innovation,communication,project management. The effective techniques can
be developed by SWOT analysis,Team facilitation. The strategy of V WAG can be analyzed by
determining strength,weakness,opportunity and threats. The environment affects the company in many
ways and for this Pestle analysis can be done. There are various power given to the stakeholders and
strategies like marketing,employee motivation have been developed. Various strategies are there for

market entry like licensing,franchising etc. The substantial growth strategy is suitable for companies as
it will provide growth to the organization. The roles and responsibility of managers and employees are
very important for the company. The resources for a particular company include
people,financial,human resources. SMART is essential for the company has it will helpful for achieving
the goal.
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