Business Strategy and Stakeholder Analysis

This assignment explores the critical link between business strategy and stakeholder management. Students are tasked with analyzing a provided case study, applying concepts like Porter's Five Forces to understand the competitive landscape, and utilizing stakeholder mapping to identify key stakeholders and their influence on strategic decisions. The aim is to demonstrate how effectively considering stakeholders contributes to successful business strategy implementation.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Use of mission, vision, core competencies in order to frame strategic planning..................1
1.2 Factors consider when strategic plan....................................................................................1
1.3 Effectiveness of techniques for developing strategic plan....................................................2
TASK 2............................................................................................................................................3
2.1 Organisational audit for a company......................................................................................3
2.2 Environment audit for VWAG..............................................................................................4
2.3 Significance of stakeholders when framing new strategy.....................................................5
2.4 Present a new strategy for VWAG........................................................................................6
TASK 3............................................................................................................................................7
3.1 Appropriateness of alternative strategy.................................................................................7
3.2 Justification of strategy selection..........................................................................................8
TASK 4............................................................................................................................................8
4.1 Roles and responsibilities of personnel.................................................................................8
4.2 Estimated resource requirement for implementing the strategy...........................................9
4.3 Contribution of SMART targets to the achievement of strategy implementation..............10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategic planning is fundamental for every commercial entity; it helps
management by providing direction to all working activities. Formulation and execution of
strategies and policies also helps a company to achieve its goals and objectives in a certain time
period (Annabi and McGann, 2013). The present assignment is based upon Volkswagen, it is one
of the largest automotive manufacturing company. It designs commercial and passenger vehicles,
engines, motorcycles etc. Apart from this, the report will be describe significance of strategic
planning in growth and success of business organisations and necessary tools and techniques
which can be used in strategic planning process.
TASK 1
Covered in power point presentation
TASK 2
2.1 Organisational audit for a company
Organisation audit is an essential component through which business advantages and
limitations could understand properly. Along with this, it also support in identifying all threat
and opportunities which are surrounded by a business and its working (Auzair, 2011).
Volkswagen AG have to conduct an audit through which they become able to determine about
all consents properly after their emission case.
Strength Weakness Opportunities Threats
More number of
vehicles which
facilitate an option for
every user to consume
prefer one.
Company engaged in
an incident where they
take 5 million cars
again back in
consideration.
A major opportunity
for a company is to
use new technology
for manufacturing of
cars so that they
become able to
compete with others.
A major threat for
VKAG is increase in
number of competitors
which affect business
negatively.
Their brand presence
in all around the globe
Another major
weakness for an
By using new
advancement they
Another threat is
related with an
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is frequent and
appropriate through
which satisfaction
level get enhance.
association after
incident is resign by
their Chief Executive
Officer which provide
platform to others to
compete into market
world.
become more able to
innovate many designs
and manufacture new
products and services.
organisation reputation
in market world.
2.2 Environment audit for VWAG
It is essential for a business to analyse various new competitors in market as well as
market area where they need to get expand business properly (Porter's Five Forces, 2013).
VWAG emission scandal affect their reputation very badly as well as their goodwill also get
impacted. Thus, controlling this perspective, management will have to conduct an environmental
audit in which they become able to again prepare strategic plan properly. Hence, for this context
porter five forces analysis could done which is as follow: Bargaining power of customers: After such scandal business bargaining power in context
with customers get over value and user can charge price according to wish as well
management have to cut down their prices. Now, they do not have any option rather than
selling vehicles at low price and again create an appropriate brand image. Bargaining power of suppliers:This concept stated about VWAG that bargaining power
of suppliers get low because they were not able to sale out their products at market. Now,
many vehicles of company remain unsold which harms their profitability and marking. Threat of substitute: After this thing, strategic manager analyse that threat of substitute is
high for a company. There are many other automotive associations are already working in
this industry which arose a situation of shift from one brand to other. Thus, many people
start purchasing other brand products. Threats of new entry: After this scandal, many new organisation will start working in this
field like Apple etc. This factor also get underpin by strategic manager of a company and
thus when they are going to incorporate new strategy manager have to take thing thing in
account and use new and appropriate technology to deal with this factor.
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 Industry rivalry: Strategic manager of a company found that industry rivalry of business
got increase after this factor. Many new companies are identify by working in this
automotive industry which enforce an association to prepare strategies properly.
Illustration 1: Porter's Five Forces, 2017
(Sources: Porter's Five Forces, 2017)
2.3 Significance of stakeholders when framing new strategy
Stakeholders are such people whom are related with business internally and externally.
Internal stakeholders are all such people which are related with business internally where as
external stakeholders are such personnel whom are related with an organisation externally such
as customers etc.
Thus, stakeholders are helpful and important for a business when they are preparing new
strategy. This factor should have to take in account by business properly so that they become
able to prepare such strategies which are helpful in making expansion easily (Boies, Lvina and
Martens, 2011). VWAG have to determine each and every stakeholder properly and use mapping
process as well in order to frame new strategy for business development and growth. Strategic
manager should have to determine such thing in account when incorporating new business
strategies properly:
1. Connected stakeholders: Major stakeholders of a business are debentures holders,
suppliers, customers whom are connected with business properly. VWAG group have to
connect all such stakeholders in their mind when they are going to prepare strategic plan
for better and effective future development. This enable them in maintain keen focus on
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customers and manufacture quality vehicles whom do not provide any sort of quality
disability.
2. Internal stakeholders: When VWAG manager going to prepare their plan they have to
take in account all internal stakeholders of a business. Managers and employees of a
company are a vital part of an association whom support in providing beneficial
outcomes in long term context (Butler, 2012).
3. External stakeholders: In external stakeholders government, pressure groups, local
communities are essential authority whom are working for the society and enforce many
association to use such steps which contribute more in forward working. VWAG
engaged in an scandal where US protection of environment agency identify that
Volkswagen vehicles harming environment and thus, management have to consider them
properly when preparing future strategy properly.
(Sources: STAKEHOLDER MAPPING – MARKETING THEORIES, 2017)
2.4 Present a new strategy for VWAG
Business require essential strategy which enable them in working in an appropriate
manner (Campbell, Edgar and Stonehouse, 2011). Hence, for sustaining at market it is essential
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Illustration 2: STAKEHOLDER MAPPING – MARKETING THEORIES, 2017

for them to frame appropriate and suitable action plan and modify it with a time spam as well.
According to present scenario, VWAG identify to involved in a serious cause under which they
take 5 million cars again back to get changed . This affect brand reputation of a company and for
controlling this measure strategic manager prepare appropriate action plan which facilitate them
growth and development. Hence,a new strategy for an organisation is:
 They have to target new market world in which emerging and developing market support
them to gain brand reputation again
 Use new technology properly so that new and innovate products and vehicles could
manufacture which leads to pollute less environment
 Revision of all mission, vision and objectives is another major thing when new strategy
will lead to frame out
 Use of promotion mix enables them in delivering quality products to target user properly
 Promote new products at their new market world which facilitate them an option to make
things appropriate and correct in nature
This is a new strategy for VWAG which have to take in account by management in an
appropriate manner through this they are going to maximise their profit and again gain brand
reputation properly.
TASK 3
3.1 Appropriateness of alternative strategy
Alternative strategies work as such options which can be take by an organisation in their
account so that in case of emergency authority will lead to applied them and gain positive
outcome (Köseoglu and et al., 2013). Thus, many times, these alternative strategies are helpful in
gaining beneficial outcomes. VWAG alternative strategy in order to gain brand reputation again
are described as follow:
Alternative Strategy Option Explanation
Market Entry Strategy VWAG is one of the
globalised company whom are
dealing in various nations.
Hence, they have to determine
such countries properly where
Through this consent, business
become able to deal with new
market customers whom are
going to support business in
order to bring brand reputation
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they still want to establish
brand.
again.
Substantive growth strategy After emission scandal their
working already get suffer and
thus, management have to
identify an option where they
are going to merge association
with others.
Already their brand image get
impacted and thus they have
an option to integrate business
with others and enhance profit
margin in an appropriate
manner.
Limited growth Strategy Market penetration, product
and service development work
as limited growth strategy in
which Volkswagen have to use
new technology and introduce
innovate vehicles whom will
going to release more
pollution.
For promoting business,
management can target new
market world as well as bring
out many new and innovate
products properly.
3.2 Justification of strategy selection
Out of all these strategies, VWAG can opt one of the two option strategy in which market
entry and substantive growth strategy can be used. It is a duty of strategic manager to identify
one of the best approach out of them and implement it in an appropriate manner. Hence, it is
essential for them to critically analyse both of them and then take suitable one to implement it in
an appropriate manner.
VWAG have to implement market entry strategy properly so that they are going to gain
appropriate market share properly and grab new users as well. This enable them in creating and
improving brand image of a company through which maximum outcome could be gain in an
effective manner.
Moreover, business also adopt substantive growth strategy in which they become able to
merge business with other associations properly (Mehta and Mehta, 2011). This facilitate them
an option to make activities effective and appropriate in nature.
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TASK 4
4.1 Roles and responsibilities of personnel
Strategy implementation is an important task which should have to get done in an
effective and appropriate manner. Different personnel are charged with distinct working so that
they are going to make activities appropriate and effective in nature. VWAG have to divide their
working effectively between various number of personnel so that new strategy get implemented
by business in an effective and appropriate manner:
PERSONNEL ROLES AND RESPONSIBILITIES
Top management These are such number of individuals whom are engaged in making
strategy for business so that whole association get appropriate
guideline. They are highly charged with working properly through
analysing aspects and information and prepare action plan against
that.
Senior authorities Another major personnel whom are responsible in implementing such
strategies in VWAG group are senior authority. They are the ones
whom collect information from market and transfer it to all their top
authority properly. They enable in guiding and looking upon on
regular activities of business in an appropriate manner.
Lower level personnel They are charged with duty of following all guideline in an
appropriate manner. Lower level of an association have to use
appropriate quality material and technology so that they are going to
control all sort of actions properly and managed such scandal in an
effective manner through quality based vehicles.
4.2 Estimated resource requirement for implementing the strategy
There are different number of resources are helpful in implementing any strategy into
business (Montgomery, 2011). There are different number of resources have to identify by
strategic planning manager so that they are going to implemented the strategy in an appropriate
manner. VWAG manager have to estimated such resources properly and their basic description is
as follow:
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 Finance: More amount of fund is required for the business in which they are going to
increase their quality of products in which they are going to establish air bags. This lead
to increase efficiency and effectiveness of products which delivered by a company
(Murthy, 2012).
 Human resource: Another major resource which can used by VWAG is labours,
employees or staff members whom are dedicatedly working towards an association with a
motive to bring many new things into market and again gain brand reputation for their
further development.
4.3 Contribution of SMART targets to the achievement of strategy implementation
Strategy implementation is not a single thing but there are several number of objectives
and targets get prepared by business properly which only get accomplish through preparing
SMART targets properly. Strategic manager of a company have to prepare such targets properly
in order to bring positive outcome through strategy implementation: Specific:Company target is just to deliver high quality products to their users and protect
the environment as well in which pollution is a major concern. Measurable: The targets should have to be measurable in nature in which company can
measure the goals and objectives which frame by them. Attainable:The goals and targets should have to be attainable in nature. For this,
company have to accomplish all targets in well defined manner (Parnell, 2016). Relevant: The goal should have to relevant for the business through which they can settle
them down as according to business.
 Time based: Management want to accomplish their goal within ext few months through
which all employees can work aggressively.
CONCLUSION
From the above report it has been stated that if there is effective analysis of the
environmental factors then it result in implementing effectual strategies at work places. The main
strategy of Volkswagen are linked with providing best and quality services to all their customers.
They have made plans in order to expand their operation's all around the globe by developing
new models of cars which satisfy needs and wants of customers. The strategy is best suitable is
product development as it helps in achieving target customers who will be buying their cars. It is
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essential for formulate strategies in order to achieve desired goals and objectives thus business
will achieve success in their operations.
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REFERENCES
Books and Journals
Annabi, H. and McGann, S. T., 2013. Social media as the missing link: Connecting communities
of practice to business strategy. Journal of Organizational Computing and Electronic
Commerce. 23(1-2), pp.56-83.
Auzair, S., 2011. The effect of business strategy and external environment on management
control systems: a study of Malaysian hotels. International Journal of Business and
Social Science. 2(13).
Boies, K., Lvina, E. and Martens, M. L., 2011. Shared leadership and team performance in a
business strategy simulation. Journal of Personnel Psychology.
Butler, D., 2012. Business development: a guide to small business strategy. Routledge.
Campbell, D., Edgar, D. and Stonehouse, G., 2011. Business strategy: an introduction. Palgrave
Macmillan.
Köseoglu, M.A. and et al., 2013. Linkages among business strategy, uncertainty and
performance in the hospitality industry: Evidence from an emerging economy.
International Journal of Hospitality Management. 34, pp.81-91.
Mehta, C. and Mehta, K., 2011. A Design Space and Business Strategy Exploration Tool for
Infrastructure-based Ventures in Developing Communities. International Journal for
Service Learning in Engineering, Humanitarian Engineering and Social
Entrepreneurship. 6(2), pp.30-57.
Montgomery, C. A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Murthy, V. P., 2012. Integrating corporate sustainability and strategy for business performance.
World Journal of Entrepreneurship, Management and Sustainable Development. 8(1),
pp.5-17.
Parnell, J. A., 2016. A business strategy typology for the new economy: reconceptualization and
synthesis. Journal of Behavioral and Applied Management. 3(3).
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Torrent-Sellens, J., 2015. Knowledge products and network externalities: implications for the
business strategy. Journal of the Knowledge Economy. 6(1), pp.138-156.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Online
Porter's Five Forces. 2017. [Online]. Available through
:<https://www.strategicmanagementinsight.com/tools/porters-five-forces.html>.
STAKEHOLDER MAPPING – MARKETING THEORIES. 2017. [Online]. Available
through :<https://www.professionalacademy.com/blogs-and-advice/stakeholder-mapping---
marketing-theories>.
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