Business Strategies in the Digital Age

This assignment delves into the evolving world of business strategies, focusing on how companies adapt and thrive in the digital age. It examines various concepts like digital transformation, innovation, and the impact of technology on competitive advantage. The analysis is supported by real-world examples and case studies, providing a comprehensive understanding of successful business strategies in today's dynamic environment.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategic positioning of Volkswagen by conducting its organisational audit..................1
2.2 Environmental audit of Volkswagen................................................................................2
2.3 Significance of stakeholders while formulating strategy.................................................3
2.4 New strategy for Volkswagen..........................................................................................5
TASK 3............................................................................................................................................5
3.1 Appropriateness of alternative strategies..........................................................................5
3.2 Justify selection of strategy..............................................................................................6
TASK 4............................................................................................................................................7
4.1 Roles and responsibilities of personnel............................................................................7
4.2 Resource requirement to implement new strategy...........................................................8
4.3 Contribution of SMART targets.......................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy plays a vital role in development and growth of any organisation.
Manager of company has to make plan, which will aid them to attain targets and objectives in an
effective as well as efficient manner. It always begins from a planning function, additionally, it is
a continuous process. Volkswagen is one of most leading automotive industry in UK. There main
aim is to provide quality products to their customers so that they can enhance their market share
as well as profits. Along with this, they use new techniques while producing goods for
purchasers. Enterprise can make strategies for their business, it assist them to attain goals and
objectives in an effective manner (Agyapong and Boamah, 2013). They also need to implement
it appropriately, it will help them to take advantages from their competitors. Manager divide
work among employees according to their skills and abilities.
TASK 1
Covered in PPT
TASK 2
2.1 Strategic positioning of Volkswagen by conducting its organisational audit.
Internal audit is essential for every enterprise such as Volkswagen, with the aid of this,
they can easily determine errors as well as mistakes. They conduct SWOT analysis for above
stated purpose, so that employer of cited company easily identify strength and weakness as well
as opportunities and threats also (Aithal, 2016). Along with this, they can attain their goals and
objectives effectively and efficiently. Volkswagen's SWOT analysis is mentioned as below:
Strength Weakness
 They have widest portfolio compare to
other automotive organisations.
 Firm use diversification strategies in
their business.
 Volkswagen has joint ventures with
some Chinese auto makers which will
aid them to increase their revenues.
 They have approx 349,000 workers in
 Company has not amazing brand image
compare to other establishment such as
Toyota.
 Recall rate of UK is too much.
 They have very low market share in
UK.
 Products of Volkswagen are not much
environmental friendly (Alsoboa and
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their concern.
 They offer variety of model to their
customers which will provide them
more satisfaction.
Aldehayyat, 2013).
 Sale of their cars is not much because
of very high prices.
Opportunities Threats
 They can focus on their policies which
will aid them to develop brand image,
as result to, they can increase their
revenues.
 Company has long term relationship
with car manufacturer.
 There cars are much innovative, that
will assist them to take advantages
from their competitors (Basili and et.
al., 2014).
 Purchasing power of people is
continuously increasing day by day.
 Government rules and regulations are
continuously increasing.
 Prices of raw materials are rising which
can affect profits of firm.
 Value of their cars is too high so that
they cannot attract middle class society
towards their products.
 Increasing in prices of fuel.
 Competitors are also use innovative
techniques in their products which can
affect goods of Volkswagen.
 Additionally, international competition
is enhancing day by day.
2.2 Environmental audit of Volkswagen.
It is essential for each and every company to know their external environment very well
because it can influence business activities either directly or indirectly. Along with this, it is
uncertain as well as uncontrollable (Bozkurt and Kalkan, 2014). Thus, organisation conduct
PESTEL analysis for above stated purpose, which is described as below:
Political factors: This element can affect operational activities of cited firm because they are
doing their business in approx more than 150 countries. Thus, they have to face various forms of
political issues. They need to make an effective strategies so that they can face them
appropriately manner. Banking industry as well as financial sector also aids to increase sales of
car, as they grant loans to people so that they can purchase it according to their choice. Along
with this, interest rates are as per policies of regulatory bodies. Thus, it is a biggest challenge to
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understand politics of every nation, which is facing by Volkswagen. Like, rules and regulations
of China is different from UK.
Economic factors: Automotive enterprises provide development to every country, as it
contributes in nation's national income. Along with this, they also take part in GDP of state. This
form of companies aids in development and growth of steel, glass and so on. This element never
certain like, there is a big problem of crisis, which can affect the sales of automotive
organisation. Because if people don't have money, they cannot purchase car (Campling, 2012).
Along with this, if prices of fuel increases then also it can influence economic circumstances of
country.
Social factors: It is an important element, which plays vital role in success of Volkswagen. If
they enhance their business, then they can aid to provide employment opportunities to general
public. They have to handle social issues in an appropriate manner, such as read accidents are
increasing day by day. Thus, it can provide negative image and Volkswagen has to take care of
every problems effectively.
Technological factors: it plays an essential role in every organisation. Company has to use new
techniques in their business so that they can improve efficiency of their products and services.
With the aid of this they can provide more satisfaction to their clients as well as improve their
profits and reputation in market also (del Río and et. al., 2011).
Environmental factors: This element can affect organisation either negatively or positively.
Raw material, diesel, steels and so on can influence environment of nation. Thus, it is essential
for Volkswagen that, they have to invest in R&D which will help them in development of
production and along with this, they can protect surroundings of country.
Legal factors: It is needed for each and every enterprise to accomplish legal requirements which
is necessary to fulfil. They have to follow every laws which is associated with their business.
2.3 Significance of stakeholders while formulating strategy.
Bondholders are an essential part for each and every organisation, they provide growth
and development to business. It may consists an individual, group as well as organisation. They
take participate in every activities of Volkswagen because they invest their money in their
business. It may also includes creditors, workers, unions, regulatory bodies and so on. They
always support all activities of cited company.
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Along with this, there are various importance of stakeholders analysis while formulating
new plans, which are mentioned as below:
 It is essential for them to determine people who can influence their business activities
either internally or externally (Firnkorn and Müller, 2012).
 If manager of Volkswagen want to improve performance of their workers, then they have
to motivate them. As result to, it will aid them to enhance their profits and reputation in
market.
 They need to understand nature of each and every person within organisation, so that, if
there is any issue arise they can eliminate it with aid of effective conversation.
 Superior always need support of their staff members, which will assists them to attain
desired targets and objectives of Volkswagen.
 Employer of cited firm can take help of powerful stakeholders, when they begin their
concern.
 It is must for them to determine those elements which can affect their business strategies
directly as well as indirectly.
If association wants to attain more development or growth, then they have to interpret
their shareholders carefully (Godlevskaja, van Iwaarden and van der Wiele, 2011).
Illustration 1: Shareholder's grid
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2.4 New strategy for Volkswagen.
It is essential for every type of enterprise to make an effective plan so that they can
provide satisfaction to their customers. Cited company develop blueprint, which will aid them to
create more values of their merchandise and administration among their clients. Whenever a firm
generate new product for their buyers, they need to make new strategy for this. Every people
have their own needs and wants which they want to accomplish, and Volkswagen fulfil them by
offer unique as well as innovative products to them (Houdet, Trommetter and Weber, 2012).
Along with this, it aids them to enhance their profits and improve their brand image in country.
An appropriate plan also assists them to expand their business and merchandise in all over the
world.
Volkswagen makes their blueprints for cost leadership, along with this, they want to lead
in market by taking advantage of price. If they reduce values of their products and services then
it will help to increase their revenues. As well as, it aids them to improve their market share. It is
essential for them to maintain quality standard of their merchandise, which will assist to attract
more purchasers towards them. Lower cost help them to improve their productivity or sales. If
they segment their market then they can accomplish demand of each and every type of buyers.
As result to, it will assists them to take advantages from their competitors in the marketplace.
TASK 3
3.1 Appropriateness of alternative strategies.
If any company wants to survive in market they need customers as well as have to
compete their competitors (Kernbach, Eppler and Bresciani, 2015). There are various rivalries of
Volkswagen such as Toyota. Thus, cited firm has to analyse them appropriately so that they can
develop plans according to situation. There are some strategies which can be used by them, are
described as below:
Market entry: It is like a planned activity and organisation wants to deliver their items to target
market. When company wants to enter into an international market then they have lots of
options. It can consists risk as well as heavy cost. Along with this, they have to manage contacts
with other people also. For this purpose, association can acquire some other concern. That will
aid in their growth and development. Additionally, they can achieve their goals and objectives in
an effective and efficient manner.
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Substantive growth: If cited firm wants their growth, then they have to develop their products
as well as market. Company can diversify their merchandises in various markets, that will aid
them to reduce risk and improve their profits. Along with this, it assists them to take advantages
from their competitors. It also includes three factors such as turn around strategy, liquidation as
well as divestment.
Limited growth: If Volkswagen wants to enhance their market share then they have to create
new products for their buyers (Killing, 2012). Organisation can sale their merchandise and
services in various areas, which will aid them to build image in market. It will provide growth to
enterprise as well as they can compete their competitors effectively.
Retrenchment: If organisation wants to attain their desired goals and objectives in an effective
manner, then have to expand their business as well as products. If they are not able to accomplish
desire of their workers then they have to sale their assets. This strategy is used by enterprise so
that they can cut their expenditures and become more financial stable.
3.2 Justify selection of strategy.
Market entry: If company enters into a new place then it will aid them to enhance their
revenues as well as improve goodwill of organisation in market. If they take entry into any
foreign marketplace, then they have to make contracts. They can opt an option of merger, it will
also provide financial aid to them.
Substantive growth: Enterprise can use strategy which is known as related diversification
because if firm diversify their products then it will aid them to reduce or eliminate risk. Along
with this, they can enhance their profits (Li, Zhou and Si, 2010). It will aid then to target more
clients in market, thus, they can improve their reputation in marketplace. They can use
innovative thoughts, which will help them in their growth and development. Manager of
Volkswagen need to explore their environment, so that they can make policies according to it.
Limited growth: Cited organisation can use strategy of product development, which will assist
them to take advantages from their competitors. If company wants to improve their brand image
in market, then they have to develop attractive design as well as features also. There are two
other strategies which can be used by firm such as market penetration as well as market
development, but for this they have to be financial strong.
Retrenchment: Liquidity selling is best plan for this, because with this, they can do their
operational activities very well as well as can take financial aid easily. They can pay their loans
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and advances, dues as well as credits casually. Along with this, they can attain their targets and
objectives effectively and efficiently. Additionally, they can compete their competitors and can
improve their brand image in marketplace (London and Hart, 2010).
TASK 4
4.1 Roles and responsibilities of personnel.
If an organisation wants growth and success, then it is essential for them to make
strategies so that they can done their work in proper manner or format. It must be done by
manager of Volkswagen, it will aid him to lead their team appropriately as well as workers can
perform their duties effectively. Hence, a personnel of company plays a vital role to implement
all strategies efficiently. Employer has to perform their roles and responsibilities, so that they can
attain their goals and objectives within given time as well as enhance their revenues. Targets
which are setted by manager, must be for long term, thus, enterprise can achieve long term
profits. If their strategies are better then they can also take advantages from their competitors.
There are various roles and responsibilities of personnel which are described as below:
 It is an important duty of a manager of Volkswagen, to distribute work to staff members
as per their skills, abilities as well as knowledge, which will aid them to attain their
targets as soon as possible (Markus and Loebbecke, 2013).
 It is essential for an employer to maintain an open communication among all units of
cited organisation. Thus, worker of company can easily share essential information with
their superiors without any hesitation. Along with this, they can provide them suggestions
of any problems, which will assist them to improve their profits and brand image in
marketplace.
 Another main responsibilities of manager is to look over ethical consideration. It will aid
them to do their work in proper manner, thus, an individual interest never get affected.
Along with this, they never want to leave firm so that, it will work as a retention of staff
member.
 They have to evaluate work of their workers timely, so that if there is any deviation, they
can eliminate it in an appropriate manner. Along with this, employees can complete their
work according to given guidelines. As result to, enterprise can improve their profits as
well as reputation in market.
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4.2 Resource requirement to implement new strategy.
It is an essential thing, which is necessary for each and every organisation so that they
can implement it into their projects (Matt, Hess and Benlian, 2015). When Volkswagen begins
any new project then it is needed for them to determine number of resources which will helpful
for them and execution become possible. Company wants to enhance their market share, for this,
they need to expand their business in new market. Along with this, they have to develop some
strategies which will aid them to increase chances of success.
There are various form of resources, which will be helpful in making a project feasible,
are mentioned as below:
Finance: It is like a life ling for any organisation because if there is no fund then there is no
business. If company wants to expand their market as well as starts any new project, then they
need money for this. Along with this, enterprise can also arrange it from various sources such as
banks, share markets, institutions and so on. If firm has a vary good reputation or brand image in
market, then it will be more easy for them.
Human resource: This is another essential resource which will helpful for making any project
survival. Because, without human being no work can be get done. Thus, it is necessary for an
enterprise to hire capable person and give them task according to their skills, capabilities as well
as knowledge, so that they can complete it effectively and efficiently (Morris, 2012). Manager of
Volkswagen can also provide training to their staff members, which will assist them to improve
their performance. As result to, they can enhance their profits and goodwill in marketplace.
Relation with customers: Clients play an important role in growth and development of any
organisation. Because, if there is no buyers then no company can survive in market. Hence, it is
essential for them to make proper contact with their purchasers so that they can improve their
revenues. If their relations with customers are effective then also they can compete their
competitors in marketplace.
4.3 Contribution of SMART targets.
Manager of Volkswagen has to manage SMART targets so that they can do their work
effectively as well as efficiently. Whenever, company starts any new project, it is essential for
them to set targets and objectives which they want to achieve. It must be clear to each and every
one within organisation, so that they can accomplish it in an appropriate manner. SMART stands
for specific, measurable, attainable, realistic as well as time bound (Segers and Inceoglu, 2012).
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As per in context of Volkswagen, these points are discussed as below:
Specific: Employer of cited firm has to set some targets and objectives, which must be specific
in nature. So that workers can easily attain them within given time frame. It means what
company wants to achieve, where as well as when? It also described limitation and conditions of
project. Employer need to determine some alternative ways also, which can be used by them in
any difficulties.
Measurable: As per this, objectives which is decided by organisation must be measured by
manager. It may consists quantity, cost, quality, frequency as well as deadlines. Thus, superior
can easily compare setted standards with achieved targets. Quantity can also be measured in term
of percentage (Sluyterman, 2013).
Attainable: Goals which are set by employer must be attainable within given time period. If they
can achieved by organisation within time then they can improve their profits as well as
reputation in market. If company doesn't has proper resources then they cannot attain their
targets effectively as well as efficiently.
Realistic: Objectives must be real, not fictionary. Leaders can be evaluate those targets easily,
along with this, it provides growth and development to organisation.
Time bound: Goals which are decided by organisation, must be accomplish within time. If they
attain targets within time then it aids them to fulfil needs and wants of their customers as well as
improve profits.
CONCLUSION
As per above mentioned report, it has been concluded that, if company made strategies
for their business then they can achieve desired goals and objectives in an effective and efficient
manner. They have to set targets, mission, vision and so on for above stated purpose.
Additionally they can use various sorts of tools which never be used by any other competitors,
which serve them as a core competency. Organisation can conduct an audit to determine errors or
mistakes. Shareholders play an important role in every firm, because it aids to provide growth
and development to association. They have to use plan in a systematic order. It is essential for
employer to communicate strategies to their employees so that they can help their superiors to
attain it effectively.
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