Business Strategy and Organizational Performance

This assignment delves into the crucial connection between business strategy and organizational success. It examines how different strategic approaches influence firm performance across diverse industries. The analysis considers factors like resource allocation, operational strategy, human resource management, and external market dynamics. Drawing from academic research and real-world examples, the assignment highlights the significance of aligning business strategies with organizational goals to achieve sustainable growth and competitive advantage.

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Strategic positioning of Swing Patrol by carrying out audit of company........................3
2.2 Environmental audit for Volkswagen...............................................................................4
2.3 Importance of stakeholder analysis when developing new strategy................................5
2.4 New strategy for Volkswagen..........................................................................................6
TASK 3............................................................................................................................................7
3.1 Appropriateness of alternatives strategies related to market entry, substantive and limited
growth.....................................................................................................................................7
3.2 Justification of selection of strategy.................................................................................8
TASK 4............................................................................................................................................8
4.1 Roles and responsibilities of personnel who are charged with strategy implementation.8
4.2 Analysing estimated resource requirements for implementing new strategy...................9
4.3 Contribution of SMART targets to the achievement of strategy implementation............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is a plan by which an organisation can accomplish its aim and goals.
Strategy is helpful in the long term existence of an organisation which aids in increasing the
profitability and efficiency of business. It is related with some main problems of resources like
improving or increasing the funds for developing a new plant or factory (Casadesus-Masanell
and Ricart, 2010). Further, in development of every new strategy, management has to take their
stakeholders in account as well. Human resource department has the charge in relation to divide
and execute all roles and responsibilities in a proper manner. This business report mentions about
the scandal of Volkswagen Group along with a case which is related to Dragons Den, BBC.
Moreover, this assignment also includes vision, mission and core competencies for executing the
strategic planning in an appropriate manner. There are some effective and efficient techniques
deployed at the time of developing some business plans. Thus, Volkswagen business firm
conducts an environmental audit for checking pollution level that will be stated in the report.
TASK 1
Covered in PPT
TASK 2
2.1 Strategic positioning of Swing Patrol by carrying out audit of company
Volkswagen is an auto mobile business organisation. This company makes many
luxurious cars for its consumers (Jocovic and et. al., 2014). But this firm also make some
changes in its existing cars. It makes goods on the basis of their needs and wants or also build
some unique features in cars. The employees or consumers of this firm is very loyal towards it.
For enhancing its productivity and reputation, company contribute some part from its profit in
welfare of society (SWOT analysis, 2017). Volkswagen should determine some strengths,
weaknesses, opportunities and threats to analyse the strategic positioning. From SWOT analysis,
company can carry out its audit programme.
Strengths- It is a capabilities of company and also it has some clear aims and goals. In
last three years, the sales and profitability of this company has been increased. The main strength
of this company is that it has a better business strategy. Volkswagen also conduct some activities
for the welfare of society.
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Weaknesses- The main weakness of this organisation is that it does not conduct some
promotional activities to aware people about its work or business. In increased its pricing
strategy and does not make any kind of change (Li and Tan, 2013). The approach which this
company used is unfocused approach and its cars cost are very high.
Opportunities- It has a great opportunity to increase its revenue from enhancing its brand
name. The main focus of this company should be on enhancing the growth and profitability of
business. It can expand its business in to new areas.
Threats- The major threat or problem is that there is minimum restrictions in automotive
s industry to entry in to new areas. The competition is very high in this industry.
2.2 Environmental audit for Volkswagen
It is necessary to each and every business organisation to conduct audit programme for
knowing the errors in business. In 2015, in car industry, there is large number of problems and
issues arise and the reason behind this that in cars pollution in more quantity found. From this,
the environment harm and it can impact on health of people. From this the sales of many cars
was less. After all this, Volkswagen started manufacture of cars which is pollution free. And
after some time the sales and revenue of this firm increased. In context to this, conduct an
environmental audit, analysis of PESTLE is carried out:
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(Source: Pestle Analysis, 2015)

Political factors- Volkswagen operates its automotive business in all over the world.
From this, the political factors impacts its business activities and operations. In this factors
includes legislation, policies of government and taxes (Johnson, 2017). When company sent its
cars one country to another, then the rates of taxes become higher.
Technological factors- In short period of time, technology changes rapidly. From
adopting new and latest technology in its production process, then sales of firm can be increased.
With the help of technology, this firm can maintain its data base and also accounts in a
systematic manner.
Social factors- Society impacts a lot on the business operations. Company emphasises on
making pollution free cars or reducing the cost of many cars. By this, segment of middle class
people are buying the same. From this, the perception of society towards company is good.
Economic factors- These factors refers to the feature of the economic system of United
Kingdom country., the government of this country develops some strategies and also some
economic policies and it is beneficial for the market of Volkswagen.
Legal factors- Governments makes some rules and regulations, policies under which
Volkswagen has to work. If in case if company will not work legally, then it will impact on the
business environment.
Environmental factors- For conducting business effectively, the environment should be
good. This factors include climate, natural terrain, seasonal variations, etc.
2.3 Importance of stakeholder analysis when developing new strategy
Stakeholders play an important role in the business. Main stakeholders of Volkswagen are
suppliers, customers, employees, creditors, government and shareholders. They all take very
much interest in the business activities. The stakeholders mapping is known as an analysis which
helps to know about the roles and responsibilities of participants at the time of decision making
process related to new strategy formulation. The importance of stakeholder mapping made a
huge impact on new strategy’s execution process (Liedtka, 2010). Stakeholder analysis plays an
effective role at the time of development of new business strategy. Some of the considerable
points are as follows:
 Helps in enhancing the level of satisfaction
 With the help of this, skills and abilities of staff members will be identified.
 To find assistance from the more powerful other stakeholders of company
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 In case if stakeholders will develop new and effective strategies, the need of finance will
be fulfilled.
 The stakeholder mapping is a tool and procedure which is used in making strategy and to
do analysis of stakeholders to categorise and also clarify different stakeholders. There are
four steps in this:
o To identify the stakeholders in organisation
o To analyse the interest and perspective of stakeholders
o Mapping the relationships among goals of an organisation and stakeholders
o Ranking and giving priority to stakeholders
2.4 New strategy for Volkswagen
There are many strategies like business development, growth strategies, etc. that
Volkswagen can use. However, for the firm, the most suitable is product development strategy.
The strategy of Volkswagen is to develop some value and focus on satisfaction of needs and
wants of its consumers. From stakeholder’s help, the management of this firm can easily
implement its new plans and strategies. For new product development, Volkswagen can
formulate a new business strategy. The new strategy for Volkswagen is product development.
With the help of this, Volkswagen becomes enable to meet different needs of its consumers by
providing a new product. From this, the profitability of company will be increased and new
expansion related opportunities will be met. Company has to expand their business and make
development in their products in the existing market as well as in new market. In context to this,
there are some good strategies and policies for Volkswagen which are described as below:
 Main priority of an entity is to take care of all stakeholders (Meskendahl, 2010).
Shareholders are the essential part of any organisation and they provide fund for business
activities. Shareholders are considered as the real owners of company and their main
motive is to earn profit by delivering high quality designer cars.
 The management of Volkswagen business firm should take care of their stakeholders and
the policies which are formulated by them. A major focus have to frame on shareholders
as they are real owner of an organisation.
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 The top management of firm is to create new policies and plans that is beneficial of
company as well as employees. It is the duty of manager of this firm is to implement
these policies in an effective and efficient way.
TASK 3
3.1 Appropriateness of alternatives strategies related to market entry, substantive and limited
growth
The alternative strategies is very necessary for developing good opportunities for
resolving issues and problems which are related to business activities (Montgomery, 2011). For
enhancing growth and profitability of business, this company make new and effective strategies
to entry in new market place. From new market entry, the sales of firm will increased and also
meet some new opportunities to target and attract new consumers and sustain current buyers.
Market entry strategies
Organic Growth- It is a strategy which helps Volkswagen to accomplish its goals by
enhancing the sales as well as output. Managers of this business firm use their skills and abilities
for increasing the profit level of company.
Merger- In means when two or more than two firms work together for achieving the
common objectives.
Licensing- It refers to when a patent enterprise give permission for using its copyright by
paid some fees (Oltra and Luisa Flor, 2010). The parent business firm is known as licensor and
other business enterprise is also known as licensee.
Substantive growth
With the help of this business strategy, Volkswagen can enhance its market share. In this
type of growth includes unrelated, related, vertical, horizontal and many more diversifications.
This business firm also use some growth related strategies formulating the growth and
profitability of its business compared to other competitors.
Limited Growth
It consists of market penetration, product development and market development. These
three are the main factors and all are helpful in development of business. With the help of this,
limited growth strategy will increase the equity and decrease debt.
Retrenchment
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From this, Volkswagen will much feasible and also minimize its business related
operations (Scholes, 2015). In the retrenchment includes liquidation, turnaround and also
divestment. In this, firm can minimize its single operation and it is the responsibility of a
manager is to maintain the financial condition of firm.
3.2 Justification of selection of strategy
Volkswagen uses market growth strategy to increase its business future. With the help of
this kind of strategy, company can do its business successfully. With the help of this, company
can know about its competitors, their strategies and also identify the demands of its customers.
From this growth strategy, the management can easily make the solution of many issues. This
selected growth strategy helps in market and the product development. The reason behind using
this strategy is that it helps in resolve many problems and issues related to business. Volkswagen
invest its money on modification of its existing products and also invest on other international
outlets of business.
TASK 4
4.1 Roles and responsibilities of personnel who are charged with strategy implementation
The strategic implementation is a process of addressing who, when, where and how can
reach the aims and goals of a business firm (Slater, Olson and Finnegan, 2011). The main focus
of this kind of implementation is on the full company. It is the duty of a Human Resource
manager is to implement all policies and strategies in an effective way. It is also the
responsibility of a personnel manager is to monitor and control all activities of company.
Manager of Volkswagen always motivate its staff members to work in a proper manner or to
maintain a positive working environment. The manager of Volkswagen business firm works on
product development strategy and increase and produce a product of new quality from adopting
new and latest technology. The roles and responsibilities of personnel are as follows:
 It is the duty of a manager to implement all policies and strategies at workplace which are
formulated by top management.
 The formal communication is necessary sunder which the responsibility of each
information and data is done.
 Related to new strategy the top management has to pass information to the operational
function for using the good quality resources.
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The strategy implementation will be beneficial for the environment of company for strong
leadership. If in case there is a need arise to any kind of change, then it is the duty of CEO of a
business firm to implement modifications and changes. The Chief Executive Officer of this
company should maintain the positive working environment of Volkswagen.
4.2 Analysing estimated resource requirements for implementing new strategy
There is a requirement of Volkswagen for some resources such as market and product
development for implementation of new business strategy (Teece, 2010). To implement an
effective strategy, this business firm should use these three main resources:
Human Resource- In the success of company, human resource departments plays an
important role. Human resource is the backbone of this business firm. There is a requirement of
human resource is to maintain some result and also start developing a new plan. This function is
the ability and capability of this company. It is a main key to execute a strategy and the
performance of firm is totally depend on the HR and this department should also have the
technical knowledge. It is the responsibility of a manager who have knowledge about automotive
industry and also job. Manpower should be proper.
Financial resources- It means that in what manner Volkswagen manage its finance and
its strategies to make the business operations more effective. There are two main ways of finance
equity and debt. It is the responsibility of a finance manager is to manage all the funds and also
try to minimize the cost of production the financial resources consists two main components such
as ability to enhance funds and current financial funds. More fund is necessary for enhancing the
quality of cars and to establish the good air bags in cars.
Time and material resource- For making any kind of strategy, there is a need of
particular time and for implementation of strategy is also a requirement of some effective
material (Spender, 2014). Volkswagen should adopts and use latest technology and some
machineries which can fulfil the needs. It is necessary for company to use good quality of raw
materials in the car production from which the environment is not harm.
4.3 Contribution of SMART targets to the achievement of strategy implementation
SMART targets is a way of achieving the goals and objectives of a business firm in a
proper manner. The top management of Volkswagen business firm always make SMART plan or
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target to achieve success (Pestle Analysis, 2015). SMART refers to specific, measurable,
achievable, realistic and time bound.
 Aim and objectives of firm should be particular or specific. From this company can
achieve its desired target in a proper way. Volkswagen has examined to enhance its profit
up to 5-7%.
 Goals should be measurable from which organisation can evaluate the aims and goals
which are developed by management. (Woodard and et. al., 2012). It goals will
accomplish on give time period then from this sales will be increased. It consists 5 to 7
percent increment in the share of market in context to numeric.
 Volkswagen set a realistic achievements to achieve the profit and it also attainable in
nature. Volkswagen also achieve its goals and objective in a proper manner.
 Target of Volkswagen Should be relevant by which the management of Volkswagen can
easily set them according to operations of business. In each quarter, the target related to
market share will be increase 5 to 7% and it will be realistic.
 Volkswagen decide a time limit of achieving objectives. Its main objective implement its
strategy to achieve target within a particular time period. After setting up target, there
will be need have revised that all target in every 2 years and through it 5 to 7% market
share will be enhanced.
CONCLUSION
It can be concluded from the above report that business strategy is helpful for achieving
the goals and objectives of firm. In this report studied about the vision, mission and core
competencies required at the time of making strategic plans. In this report there is a contribution
of SMART objectives. It has been assessed that Volkswagen will adopt a market growth strategy
to develop its business.
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REFERENCES
Books and Journals
Casadesus-Masanell, R. and Ricart, J.E., 2010. From strategy to business models and onto
tactics. Long range planning. 43(2). pp.195-215.
Cinquini, L. and Tenucci, A., 2010. Strategic management accounting and business strategy: a
loose coupling?. Journal of Accounting & organizational change. 6(2). pp.228-259.
Connor, J.M. and Lande, R.H., 2012. Cartels as rational business strategy: crime pays.
Dong-Hun, L., 2010. Korean consumer & society: growing popularity of social media and
business strategy. SERI Quarterly. 3(4). p.112.
Eccles, R.G. and Krzus, M.P., 2010. Integrated reporting for a sustainable strategy: One Report
has the potential to significantly change how companies operate and investors think,
shifting the focus from that of meeting short-term financial goals to developing a long-
term business strategy that not only makes a commitment to corporate social
responsibility, but also to a sustainable society. Financial executive. 26(2). pp.28-33.
Iacob, M.E., Quartel, D. and Jonkers, H., 2012, September. Capturing business strategy and
value in enterprise architecture to support portfolio valuation. InEnterprise Distributed
Object Computing Conference (EDOC), 2012 IEEE 16th International(pp. 11-20). IEEE.
Jocovic, M. and et. al., 2014. Modern business strategy Customer Relationship Management in
the area of civil engineering. InApplied Mechanics and Materials(Vol. 678, pp. 644-647).
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Johnson, G., 2017. Exploring strategy: text and cases. Pearson.
Li, Y. and Tan, C.H., 2013. Matching business strategy and CIO characteristics: The impact on
organizational performance. Journal of Business Research. 66(2). pp.248-259.
Liedtka, J., 2010. Business Strategy and Design: Can this Marriage Be Saved?. Design
Management Review. 21(2). pp.6-11.
Meskendahl, S., 2010. The influence of business strategy on project portfolio management and
its success—a conceptual framework. International Journal of Project Management.
28(8). pp.807-817.
Montgomery, C.A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Oltra, M.J. and Luisa Flor, M., 2010. The moderating effect of business strategy on the
relationship between operations strategy and firms' results. International Journal of
Operations & Production Management. 30(6). pp.612-638.
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Peña, I. and Villasalero, M., 2010. Business strategy, human resource systems, and
organizational performance in the Spanish banking industry. The International Journal of
Human Resource Management. 21(15). pp.2864-2888.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Slater, S.F., Olson, E.M. and Finnegan, C., 2011. Business strategy, marketing organization
culture, and performance. Marketing Letters. 22(3). pp.227-242.
Spender, J.C., 2014.Business strategy: Managing uncertainty, opportunity, and enterprise. OUP
Oxford.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Online
Pestle Analysis. 2015. [Online]. Available through:
<https://www.thinglink.com/scene/510850858737467393>. [Accessed on 26th August
2017].
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