Comparative Analysis of Business Strategies

This assignment requires a comprehensive analysis of the global business environment, competitive forces, and strategic approaches to succeed in international markets. It involves reviewing case studies, research papers, and articles on topics such as digitalization, service-oriented models, resource-based theories, evolutionary theories, social CRM, and dynamic competitor identification. The goal is to provide a detailed comparison of different business strategies and their applications in various contexts.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT............................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Analysing strategic position of Volkswagen.........................................................................1
2.2 Environment audit for Volkswagen.......................................................................................2
2.3 Significance of stakeholder analysis......................................................................................3
2.4 New strategy for Volkswagen...............................................................................................4
TASK 3............................................................................................................................................5
3.1 Market entry strategy and its implementation.......................................................................5
3.2 Selection of strategy for VWAG...........................................................................................6
TASK 4............................................................................................................................................7
4.1 Roles and responsibilities of personnel.................................................................................7
4.2 Estimation of resource requirements for implementing a new strategy................................8
4.3 Evaluation of the contribution of SMART targets to the achievement of strategy...............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy are concerned with long term direction of company. The strategy of
organisation does not only effect to environmental forces but also expectations and values of
members of organisation. A company strategy consists with competitive efforts and business
approaches to target new customers. Strategy is considered as pattern or plan which integrates
organisation goals, rules and policies in a sequence manner. Present report is based on
Volkswagen company which is largest automotive sector in UK. The aim of this company is that
to provide high quality of cars and services to customers to satisfy their requirements. Besides
this, manager have to set prices according to customer’s income so that it will easy for the, to
purchase car. In this, their goals, mission, objectives in regard to strategic planning is explained.
Along with this strategic position of company which has been carried out by them while auditing
is discussed in detail. Besides, roles and responsibilities personnel has been described at the time
of implementing new strategies. In last, SMART objectives of organisation has been evaluated in
achieving business targets.
TASK 1
Covered in PPT
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TASK 2
2.1 Analysing strategic position of Volkswagen
Manager of Volkswagen can also conduct SWOT analysis which will help them in
identifying their competitors in competitive market. This will help to company in adopting
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appropriate opportunities for providing best services to customers (Adebolu, Adeoye and
Oyetayo, 2011). Internal audit can be done with the help of this;
Strengths of Volkswagen
Well-structured umbrella brand – On of the strength of Volkswagen is it is to be
known as well-structured umbrella market. They are producing super cars as well as passenger
cars as well as bus's.
Excellent brand recognition – Brand of this company is very strong in Europe and USA
which is also helping them to make more strong position in market.
Research and development – This company is also known as using high technology
inbuilt and consumers are trusted on them for their performance. Besides this, R&D of all sun
brands are giving beyond expectation to customers.
Weaknesses
Parent brand can be strengthened – This company is investing large amount of funds
in in advertisement to build a brand for their competitors (Amit and Zott, 2012). So, this
organisation itself needs to spend more funds for creating equity for parent brand.
Weak position in India – In this country, brand position of this company is quite weak
because there are already so many competitors who are providing high quality of cars to
customers.
Opportunities
Worldwide expansion is possible – Demand or products will arise when there is rising
in GDP. There are many countries which is classified as Emerging. So, Volkswagen can tap
these emerging countries with a wide expansion of their products and services.
Modern and innovative design – Designs of cars will always crowd puller when they
are coming to auto mobiles. Therefore, other brands are launching new design of cars every
quarter to keep their brand alive.
Threats
Competition is ever increasing – The competition between organisation are increasing
day by day. So company have to always new and latest technology to introducing new cars.
Innovation is being implemented all across - Volkswagen company has to be aware
about new technologies which are available in market and ready with research and development
team to innovate or provide new cars.
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2.2 Environment audit for Volkswagen
The manager has to carry out environmental factor on regular basis to identify those
factors which are affecting to organisation objectives. For this, PESTLE analysis is conducted;
Political factor – This company have faces many political difficulties in developing their
own brand name inn other countries (Carney and et. al., 2011). Political situation of all countries
are not same. Car industry is closely related with policies which are made by government. So, it
become challenge for organisation to understand different political pressure of other countries.
Economic factor – Automobile industry is making large amount of contribution in
national income of country. Developing this kind of industries are important for emerging
economies which will give more advantage to Volkswagen. The prices of cars should be set
properly which can also focus on lower segment of market.
Social factor – Society are playing vital role in development of automobile industry. This
company is providing opportunity to people which also improves their lifestyle as well leaving
standard.
Technological factor – Volkswagen company is using high technologies in order to
manufacture different cars (Colmorn and Hülsmann, 2014). While using of good technology will
help to organisation in launching of new hi-tech cars. Without using new technology for
production, then it is not possible for organisation to gain high volume of profit.
Environmental factor - The resources which are used by organisation while
manufacturing diesel or petrol car are should be utilised in proper manner. Cited firm, is having
many plans in many countries and from these plants smoke emitted in air. It is responsibility of
manager to take care of natural environment of their plants. For example, company have to use
limited resources and get permission from US environmental protection agency because
Volkswagen had used illegal software which is chested on emission test. Through this they are
production diesel cars which is polluting more than 40 times than normal cars.
Legal factor – This company has to follow all legal requirements to provide quality of
services to customers. Through this they can also focus on many laws; such as competition,
labour, taxation and many more.
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2.3 Significance of stakeholder analysis
Stakeholder are playing central role in setting up priorities and objectives of organisation.
It is important for organisation that all stakeholders should participate in decision which are
taken by higher authorities. Stakeholder analysis is review and consideration of impact on their
business. It is an approach which is using by organisation to identify and investigate force filed
which are formed by individuals or group of people for the benefit of organisation. The internal
stakeholders of Volkswagen are employees, customers, vendors and external are such as
societies, government.
Figure 1: STAKEHOLDER MANAGEMENT
(Source: Stakeholder Analysis, 2017)
In cited company, stakeholder needs and expectation is very important in order to achieve
predetermined objectives. With the help of stakeholder analysis, manager is determining their
sales and regulatory frameworks. Their stakeholder includes investors, employees, customers,
scientist or non-governmental which shows a strong network of relationship which indicate their
presence in market. They are working with different level of group people in order to achieve
their objectives and targets.
In Volkswagen stakeholders are closely related with success of company and wealth of
organisation. It is responsibility of manager to identify the issues which are facing by
stakeholders (Stakeholder Analysis, Project Management, templates and advice, 2017). The
analysis of stakeholder can be done with the help of identifying their needs, evaluating existing
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strategies and also conduct programme which will attract them towards company to make sturdy
relationship with them.
There are some benefits of stakeholder analysis which help to company to retain in
market for a long period of time. Such as; better strategies and decision can be taken by
organisation, support from powerful stakeholders are receiving, understanding their nature by
communicating with them and reaction of people can be find out about their business ideas. If
any decision is taken by organisation, then it is essential to involve stakeholders which will help
them to take better decision for attaining goals and objectives. It will also help them to make
proper marketing strategies in which they can interact with customers and satisfy their basic
needs. The key stakeholders of company should be determining properly to satisfy their needs
which also influence their interest also.
2.4 New strategy for Volkswagen
Volkswagen Group is laying with the foundation of sustainable mobility. Strategies is to
be adopted in such a manner in which they maintain the emission gap of environment. As per
given case scenario, this company had launched diesel cars which are producing 40 times more
pollution and harming to local people (Geraci, 2017). This company had installed illegal
software through which they can cheat with their emission test. Emission gap is necessary which
has to be maintain by every organisation to protect environment from unnecessary resources. In
order to maintain the environment resources, manager have to take help of expertise in order
make appropriate strategies. While taking any decision for the benefit of organisation, higher
authorities have to involve stakeholder for their benefits.
The strategy should be adopting in such a way which create value for customers. This
company can adopt strategy of new product development. Through which they can maintain their
emission gap which is necessary for organisation. This strategy will help them to launch new
cars and adopting further opportunity to expand their business.
New strategy for Volkswagen is to adopt price strategy in which they can set the prices of
cars as per need of customers. For this manager has to properly analyse that who are their
competitors and what strategies they are adopting to attract customers. In this price skimming is
good where company sale cars at lower price at a particular point of time. But after a period of
time, they can rise price of cars to beat their competitors.
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TASK 3
3.1 Market entry strategy and its implementation
There are various aspects for strategy implementation but before it various marketing
strategies to be framed which are:
Market entry strategies:
Merger, acquisitions and joint venture: Merger is the composition of two separate
firms in order to stay alive or make the sick company survive.
Acquisition on the other hand is friendly buying or takeover of one company over other
which helps in increasing the market share and entering into new markets making company's
portfolio wider.
Joint venture is a partnership venture or a corporation to share risks or knowledge. It is formed
with alliances and is different from mergers and acquisition (Kokwaro, Ajowi and Kokwaro,
2013). Recently Volkswagen has overtaken Toyota in 2016, two major joint ventures in china.
Franchising: It is a marketing procedure which helps in building reputation of product in
the minds of the customers. It builds an image of the product in the market for retaining
customers. VW has currently about 650 us dealerships (approx.) and aims to add 100 new
dealerships to its network.
Organic growth: This is another strategy of market entry which indicates the real growth
for the company and how the organization can use its resources to increase profits. It has been
used by VW for internal performance analysis reaching up to 7.5%.
Substantive growth: This strategy evaluates the integrations and related or unrelated
diversification and are often applied through mergers, acquisition, or joint venture.
Integration comprises of horizontal and vertical integrations. Horizontal integration
occurs when a company acquires or merges with a competitor (Kompalla and et. al., 2017).
Vertical integration occurs when a corporation becomes its own supplier or distributor.
Limited growth: It comprises of market penetration, market development, product
development and innovation.
Retrenchment: It refers to cutting down of cost and aiming to grow the business and area
of business activities intentionally considering market reduction, economic recession,
uncompetitive cost arrangement and poor competition.
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3.2 Selection of strategy for VWAG
The Volkswagen group focuses on innovation, profitable growth, customer driven and
sustainable approach. It shall follow strategies comprising of strategic decisions aiming long
term profitable growth and encouraging new product development for the purpose of filling the
emission gap. They also aimed at breaking brands and functions with specific measures and
financial targets. It shall adopt regional growth strategy aiming at expansion and investment
plans taking the company at an advanced stage.
The strategic planning shall also be associated with market volume and unit sales
developing technology as new competency. A responsive and collaborative approach is taken to
achieve desired goals.
Significant efficiency improvements are to me made to ensure financial and operational
excellence across all divisions and functions (Kreisl and et. al., 2013). The research and
development expenditures are also being improved to improve the efficiency of products.
Additional funds are generated by optimising investments.
The main goal of the company is to become the economic and ecological leader of the
global automotive industry. The company shall select such strategies which promotes
environmental protection and profitability of its vehicles so that appropriate contribution can be
made to the challenging market conditions. The size of new investments should be controlled
and an attractive range of environment friendly vehicles shall be allowed for adequate use which
can make improvement in the market position in comparison to its competitors. The focus on
ecological products shall be emphasised to undergo constant development, flexibility and
profitability.
Productivity shall be improved and quality shall be carried out within the time limit along
with acquiring new customers (Montgomery, 2011). The other factors considered during the
selection of strategy includes standardisation of processes in direct and indirect areas, shorter
production cycles, investment discipline, financial solvency, etc.
TASK 4
4.1 Roles and responsibilities of personnel
The success of strategy implementation is proved by strong managerial leadership. As
some strategy implementation personnel the focus shall be laid on strategic intent i.e. clear
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vision. The major roles and responsibilities are related to the communication of strategies to the
relevant department so as to avoid misunderstandings and also in identifying variety of issues
like gaps incurred, successful strategic implementation. The role of top management of people is
that they are making rules and polies, regulations for targeting customers and beat their
competitors. But these policies are implemented by middle level of employer and communicate
them to operational employee to target their aims. Now, it become responsibility of lower level
employee to work accordingly in order accomplish with the goals of organisation. Higher
authorities are having more reasonability than other levels because they have to monitor and
analyse all those activities which are performing by employees and employers on regular basis.
The strategies for Volkswagen focuses on costs and customers value, suppliers, region,
process and tools, staff and organization. Along with competitive and marketing strategies,
international strategies are also followed which includes distribution and production oriented
plans. The personnel must be clear about the strategy formed as it could help in taking
appropriate actions and convincing the concerned employees.
Innovative and digital strategies in Volkswagen are introduced to look beyond the ways
by which customers can be engaged (Pagani, 2013). The identity and life of individual affects the
choice of product of the customers thus strategic implementations are made to fulfil the demands
of the customers as per their choices.
The roles and responsibilities of personnel charged with strategy implementation are:
 It shall involve in providing the vision and progress reports to various stakeholders
 It shall set a benchmark to achieve the desired goals within specific period
 Provide guidelines to carry out strategic activities effectively
 Various resources shall be used for expansion to foreign markets.
 Targets and timelines shall be used to measure strategy.
 Preservation of moral standards and understanding organisational standards, procedures
and expectations.
 The allocation and distribution of resources must be proper and within the specific time
period.
 The experience of old employees must be valued
 the personnel should ensure the involvement of maximum number of employees towards
strategic implementation process.
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 The obstacles raised during the process shall be reviewed and resolved by the personnel.
 Track of all activities and progress shall be maintained for successful strategic
implementation.
4.2 Estimation of resource requirements for implementing a new strategy
Business strategies gives new dimensions to the operations and market position of the
organization. These provides new parameters in determining new roles. From the point of view
of VWAG, the strategies so formed by it shall be implemented for creating a position in the
market by providing customer satisfaction, innovative production, considering the economic and
ecological factors. Expansion and investment plans shall be evaluated for promoting
development and improving efficiency of products (Rugraff, 2012). The resource requirements
for implementing new strategy are:
Customer market: the strategy formulation shall be focused on providing customer
satisfaction along with capturing market share. The customers and their habits play a vital role in
strategic planning.
Technical advancement: the new strategy implementation is affected by the
technological advancement as if the company lacks up gradation of product then the chances of
migration of customers from one brand to other arises.
Stakeholders: the stakeholders of the organizations include customers, suppliers,
employees, distributors, etc. who play a major role in strategic implementation by adding new
innovative ideas to the strategy during its formation and adopting methods and ways by which it
provides better results.
Financial resources: for the implementation of new strategies the major requirement is
that of financial resources (Schramm-Klein and Wagner, 2011). As without adequate funds the
organization fails to prepare strategic planning as this proves as a failure in investment and
financial stability.
Raw material: raw material as a major resource in any industry plays a vital role in the
implementation of the strategy. It is because non availability or inadequate raw material does not
support in fulfilling customer demand (Zott, Amit and Massa, 2011). For this the quality and
quantity of the raw material shall be estimated during strategic implementation.
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Human resources: the human resources involved in VWAG shall be creative, innovative,
positive and disciplined. They shall have the potential of achieving the strategy of marketing
development.
4.3 Evaluation of the contribution of SMART targets to the achievement of strategy
The SMART targets evaluation relates to the sustainability management, aligning with
the dimensions of economy, people and environment (Woodcock, Green and Starkey, 2011). The
VWAG aligns its sustainability goals with the corporate goals for the achievement of strategic
implementation. The SMART targets are the parameters through which the achievement of the
strategy can be evaluated.
S or specific targets are the profit or market share of the company which are desired to be
achieved by them. VWAG has a total market share of approx. 7% and is working to achieve a
major market share in the coming period. For example, they have to target those customers who
are not afford to buy cars above 12 lacs by 2020.
M or measurable targets are those set by the company. These are measured in terms of
percentage share of profit, sales, increment or market. This includes increment of 4% in the
market share and the profitability can be measured in terms of sales made by the company. The
objective which has been set by higher authority should be measureable so that strategies can be
used accordingly.
A or achievable are those which are to achieved in an effective manner after
implementation of strategies. These are the expected results or desired targets which are focused
by the company to be achieved. After setting out strategies, then these should be achievable for
organisation in easy manner.
R or realistic targets are the objectives set and achieved by the company which helps the
company in increasing its market share and profitability (Zheng, 2011). The realistic targets are
the actual targets achieved by the company. For example, the information which has been
collected by manager should be reliable to use them properly and target their aims.
T or time bound approach is followed in VWAG during and for the achievement of the
strategic targets. The accomplishment of these targets helps the company in improving its market
share and brand image. The manager has to see that objectives should be achieved in set time
period with the help of applying strategies.
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CONCLUSION
It has been concluded from above report that while implementation of effective strategy,
manager gas to properly analyse both internal and external environment. Main strategy of this
organisation is to maintain emission gap where they can launch new cars of diesel. To retain in
competition market, it is essential to adopt appropriate strategies which will also help them to
achieve their objectives. Along with this, if organisation is taking any decision, then they should
consider the needs and requirements of customers, employees so that they can retain for a long
period of time in organisation. As there are many competitor of Volkswagen, so they have to
work accordingly to beat their competitors. It is responsibility of manager to set their objectives
SMART while implementing strategy. These objectives should be realistic and achievable in
time period.
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