Business Strategy and Its Importance
Added on 2020-06-03
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BUSINESS STRATEGY
Table of ContentsIntroduction......................................................................................................................................1TASK 1............................................................................................................................................1Covered in PPT...........................................................................................................................1TASK 2............................................................................................................................................12.1 Strategic positioning of Volkswagen by carrying out an audit.............................................12.2 Environmental audit for Volkswagen...................................................................................22.3 Significance of stakeholder analysis.....................................................................................32.4 New strategies for Volkswagen............................................................................................5TASK 3............................................................................................................................................53.1 Alternative strategies relating to market entry and substantive growth................................53.2 Justification of the chosen strategy......................................................................................7TASK 4............................................................................................................................................84.1 Roles and responsibilities of personnel................................................................................84.2 Estimated resource requirements for implementing a new strategy.....................................84.2 Contribution of SMART targets to the achievement of strategy implementation................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
IntroductionA business strategy can be simply defined as the means through which the aim andobjectives of corporates are being achieved. It is also called as long term business planning. It isthe path and range of an enterprise that sustains for a long period of time. It is very important fora firm as it aids in enhancing the performance. Without this it is seriously very hard task tocompete in the market with different competitors (Scholes, 2015). To make a correct businessstrategy is very essential task of an organisation. But there is no guarantee of achieving successeither by making correct or good business strategies and by it execution. The activities oforganisation and its working depends on some macro and micro factors. For this reason,reassessment of business strategies is very necessary other than it is very common to loose itsstrength. The present report is based on the business strategies of BBC. In this project themission, visions, objectives, goals and core competencies of business are informed by strategicplanning at the time of making the plan. The effect of internal as well as external factors over thefirm are also discussed here.TASK 1Covered in PPTTASK 22.1 Strategic positioning of Volkswagen by carrying out an auditAn organisational audit for Volkswagen can be carried on by using SWOT analysis. Thisassists in identifying internal strength and weaknesses of company. Additionally, externalopportunities as well as threats can also be achieved via using this analysis. The SWOT analysisare done below:Strength: One of the strength of corporate is that it is very well organized canopybrands. Every one know that it manufactures advanced technologist fantastic cars, bus aswell as traveller auto-mobile. There are infinite goods or services provides by firm, butthe artefact is very crease-less and economical where each unit of strategic business arehaving the responsibility to maintain their brand and success. It has strong marketexistence in Germany where most of people purchase cars of Volkswagen only(Meskendahl, 2010). But apart from that corporation has 70 production plants and is1
serving to approx 150 nations in all over the world. Volkswagen branding is very strongin Europe and USA. They recently started their work for making hybrid cars andmotorbikes. It has given top most contribution in making total revenue in the US inrelation to other top most brands.Weakness: This is shown by a scandal that affected the brand image of company. Thisoccurs due to the breaking of trust as they have used a wrong software for measuring thepollution level and deceived their customers as well as government. Because of thismore than 5 millions cars contract get cancelled and returned to them (Liedtka, 2010).The rising level of competition lowers the selling rate of company that reduces their turnover greatly. Opportunities: The purchasing power is increasing year to year. Because now severalschemes are launched like loans option, EMI, finance options, etc. That is why companyis gaining the interest of customers. In future, the world-wide enlargement is achievableas demands are rising day to day. Threats: The major threat to Volkswagen is the emission of scandal. This reduces thetrust of customers from them. They are not confident about this brand now so, they donot prefer these cars. 2.2 Environmental audit for VolkswagenIn order to carry out environmental audit PESTLE analysis is performed. This analysis isdiscussed below:Political factor: Legalisation or norms made by government affects a lot the corporationperformances. It may affect positively as well as negatively. The demand of hybrid carswhich venture started manufacturing is increasing day to day. Government also supportsthis as it is environment friendly and make low level of pollution. Every newlymanufactured cars must obey and stick to EU vehicle emission standards and normswhich is known as Euro standards. The government of UK has presented several financialmeasures in order to favour cars that has minimum carbon dioxide discharge. On theother hand if this rate (carbon dioxide emission) is high than company have to pay hightax rates (Martin and Rice, 2010).Economical factor: The rate of revenue is dependent on the demand of cars. The largeamount of revenue is created when the demands gets high. The cost of auto-mobiles has2
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