The Influence of Business Strategy

This assignment examines the multifaceted impact of business strategy on different areas within a firm. It delves into research exploring how a company's strategic choices influence its tax aggressiveness, aligning information systems (IS) with overall business objectives, and managing project portfolios effectively. The analysis considers various theoretical frameworks and empirical studies to demonstrate the interconnectedness of business strategy and organizational success.

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Strategic Planning.............................................................................................................1
1.2 Factors considered for formulating strategic plan............................................................2
1.3 Techniques for strategic business plan.............................................................................3
TASK 2............................................................................................................................................4
2.1 Organisational audit of Beach Break Live.......................................................................4
2.1 Environmental audit of Beach Break Lives......................................................................4
2.3 Stake holder analysis........................................................................................................5
2.4 New strategies for companies...........................................................................................5
TASK 3............................................................................................................................................6
3.1 Strategies relating to market entry, substantive growth, limited growth..........................6
3.2 Justification of the above stated Strategy for VW AG - .................................................7
TASK 4............................................................................................................................................8
4.1 Responsibilities of personal who are charged with strategy............................................8
4.2 Resources required to implement new strategy ...............................................................9
4.3 SMART concepts for the achievement of target..............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Volkswagen is one of the most popular manufacturing company. In the market when
there is a need of a solution for a special market, joint venture is probably happen. For the
growth of businesses or achievement of goals companies can create some market or business
strategies. This article will describe the process of strategic planning. From this article
organisation can understand the procedure of formulations of new strategies. It covers all the
approaches which is helpful to measure strategy evaluation. After identifying the strategies it
should be clear that how to implement that strategy.
TASK 1
1.1 Strategic Planning
Vision. Vision is basically the ability to see and in business terms vision is used for long
run so that the particular company like Beach Break Live company that is a event management
company can survive for longer period in the market. Vision defines the ability of the company
and their willingness towards achieving the success. The vision of Beach Break Lives is nery
clear as they want to provide their best services in short period so that they can retain in the
market and maximise their profit ratio. Beach Break Lives is very clear with their vision that
their first priority is their customers and then comes the rest. Vision is made for long period so
that a company can retain in the market and improves efficiency to take their organisation to
another level and maximises the profit ratio.
Mission. Mission and Vision are in separable because they cannot work individually.
Mission and vision are like two sides of a coin as mission is very important to complete a vision
(Teece, 2010). Mission completes the vision as it has all planning treatises by implementing
them as plan of action a company can achieve its goals on time Beach Break Lives has a mission
to achive efficiency in their operations by their professional work force by satisfying customers
from the core so that they can recognition in the market by their customers They want to create
unforgeable events for their customers so that they can hold their customers to at last. Beach
Break Live has very definite mission to focus on their customers and only on their work by
giving priority to the preferences and choices so that they can provide best of their services in
less time and money(Astrachan, 2010.).
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Goals. Goals is one of the most important term in setting business as without goals
business can't get established. Goals defines the definite plan of action of the company as these
includes what they want to achieve in what time and on which level. Goals decides the future of
the company as it decides its position in the market so goals is not a secondary as they should be
discussed before objectives. Beach Break Live is a event management company that's why it
should set a goal for longer period by providing best or excellence services to the customers and
towards achieving great position in the market by generating more customers in the market.
Beach Break Live mostly prefers specific, measurable, achievable and time bond goals so that
they can relate to every thing in the market among the customers to achieve great position in the
market after some years(Johnson, G., 2013.).
Objectives. Objectives are the most important term in the organisation as they include
each and every aspect of business and gives the final result. Beach Break company has basic
objective of customer service which includes every thing about customers choices and
preferences so that they can retain the existing customers and will be able to generate more
customers(Bharadwaj, A.,2013. ). A company can only grow when he keeps his customers happy
in all the possible manner by listening to them and solving all their problem from the core.
1.2 Factors considered for formulating strategic plan
Strength. This is the most and first discussed factors in strategic plan as it defines the
ability and the quality of the services provided by the company to their existing customers so that
thy can retain in the market and match the market level by fighting competition to maximise
efficiency and brings effectiveness in the company. Beach Break Live show its strength through
its customers because it has very strong network of customers and working tean all around the
world. This company provides the best quality services to its customers in less time and in less
pay.
Weakness. Each and every company has some kind of weakness which leads them down
in some way or the other. Beach Break Love has only one weakness and that is its
communication chain as communication chain defines the speed of the services that are
providing by a company.
Competition. Competition is there in every field no matter you are in what team so if
company wants to survive in the market then he need to fight the competition by analysing all
the factors that are affecting the company's environment. A company needs to prepare a detailed
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report of his and his competitors company in the targeted market so that it can take corrective
measures accordingly.
Current condition. It is that term which gives reality check to the companies about their
condition in the market. Beach Break Live company finds its current position in the market by
preparing complete report of each and every aspect after knowing the current condition a
company knows that what are the corrective measures to be taken by him on what basis and on
what level.
1.3 Techniques for strategic business plan
Techniques are kind of method that are performed by companies to formulate overall
mission and goals Some techniques are as follows :
1. Market Research. Market research is basically a process that collects all the
information all together so that this data can help company to grow and expand in
a certain market. Market research shows the exact position of the company to help
managers so that they can prepare a healthy mission and vision in the competitive
market. Beach Break Live do market research to compete the competitors and
survive for long run in run market.
2. SWOT Analysis. SWOT Analysis is a strategic planning that consist of Strength,
Weakness, Opportunity and Threats that business faces from day one to end.
Beach Break Live do SWOT analysis so that they will get to know about each and
every aspect of their business (SWOT Analysis: Theory, 2017). By this analysis a
company can change its decision that are affecting their business in a harmful way
and can defeat their competitors by making appropriate strategies.
3. Cost Benefit analysis. This analysis is very common in terms of business
planning as this helps in assembling the cost and potential analysis of the
company. Beach Break Live company prepare this analysis to ensure their
performance by calculating cost and their potential in the market.
Feasibility Study. This study is done by the company to know about the profit earned
from a particular project (Dong-Hun, 2010.). Beach Break Live company perform this to know
their profit ratio among the total cost. This is very useful as it shows if there is some defect or
not.
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TASK 2
2.1 Organisational audit of Beach Break Live
Organisational audit can be done only by measuring the strength, weakness, opportunity
and threats of a company. Organisational audit is very crucial term as it defines all the internal as
well as external factor of the business.
Beach Break Live company shows its strengths by its excellent service facility that he is
providing to its customers in very short period and with less pay than others. Organisational audit
shows strength as very strong point determining all best of their services in this(Cinquini,and
Tenucci, 2010). The biggest weakness of this company is its communication chain and because
of only this the company is unable to achieve efficiency in its operations. One of the biggest
opportunity for Beach Break Live company is that their customers are very loyal and giving
chance to this company to take corrective measure to grow and expand itself in competitive
market. There are many threats in each and every field of the business and in event management
company the biggest threat is that if their services are not approved by customers they will not be
able to survive in the market. They should keep their services up to date and whatever techniques
they are using should be best among all if they want to survive for long in the market.
2.1 Environmental audit of Beach Break Lives
Environmental audit includes the PESTEL analysis and these are as follows :
1. Political factors. These factors include all the legal matters of the company as a company have
to deal with many legal issues weather they are from government sectors or private sectors.
2. Economic factors. This includes all the factors that are related to the economy and affecting
business in one way or the other. These factors have great impact on how an organisation is
doing business and how much they are profitable in the current economy. These factors affect the
company at very high level because this includes – inflation, deflation, demand and supply and
so on.
3. Social factors. Social factors includes all the social issues and responsibility of a
company(Montgomery, 2011). A company also needs to give importance to the society because
these are the only one who buys their product and consume their services.
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4. Technological factor. This factor includes the technologies that companies are using to bring
effectiveness in their work and efficiency in their organisation(Campbell, Edgar,and Stonehouse,
2011). Technological factors deeply affects the marketing and the management so the company
needs to be very attentive in these matters.
5. Environmental Factors. These factors include environmental related issues that affect a
company in producing their goods and services(Verbeke, 2013 ). Environmental issues have
become very important in current situations of businesses as many companies are unable to
produce their product just because of scarcity of resources, pollution and many more.
6.Legal factors. This factor is one of the most important factors as company deals each and every
thong in a legal way. In a company there is a legal contract for each and every thing as after
breaching this contract the company or any other person is legally liable for what thy had done.
This factors maintain rules and regulations in the organisation.
2.3 Stake holder analysis
Stakeholders are those people support company to grow and expand to reach the
maximum level of efficiency. Stakeholder analysis is a process of taking decision so that they
can prepare appropriate plan of action. Stakeholder decides the future of the company as many
decisions are taken by them for growth and upliftment of a company. They hold very powerful
position in the company and no single new strategies can be made without them. Their consent is
needed on each and every project as they support financially as well as morally(Woodcock.,
Green, 2011). They play different roles according to their position in the department.
2.4 New strategies for companies
Companies should adopt new strategies to expand their business and maximise their
profit ratio. New strategies should bring positive results for the company because new strategies
decides the future position of the company after considering all the crucial factors then only new
strategies should me made that may affect the company. All the possible analysis should be done
before formation of new strategy.
Beach Break Live company should take all the control over their resources and take
corrective measures to reduce the wastage of resources so that thy can retain in the market for
long run and maximises their profit to another level( Meskendahl,, 2010.).
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TASK 3
3.1 Strategies relating to market entry, substantive growth, limited growth
Market entry strategies -
Merger or joint ventures : It is a process of buying of one company by another. In other
words when a company takes ownership of another company, it also known as takeover. This
can be done by purchasing shares of the company by another company. The reasons behind the
acquisitions or joint venture are to expand the business. The main reason of acquisitions of
companies is that they are working at loss and they want to increase there productivity and profit
margins then acquisition is the only way to stay in the market. When businesses enters into new
markets, it increases profit. At the same time also increases dangers. Two separate companies
can merge with equal size (Higgins, Omer and Phillips, 2015). Firms also merge unequally with
less or more shares. In the acquisitions a large company can merge with the small companies. In
the joint ventures partners shares the risk and knowledge.
Franchising : Franchising is also a business strategy which focus on making an image in
the minds of customers that the firm can help them to fulfil their needs. It is a process of
selecting a good company in the global markets. Through this procedure companies can
manufacturers products and services that fulfil customer requirements.
Substantive growth: Substantive growth focuses on the horizontal and vertical
integrations or related and unrelated diversification. These strategies are applied through joint –
venture instead than organic growth. Vertical integration occurs when company is its own
distributor. Horizontal integration occurs when company merges with another company.
Diversification is a process of deciding to manufacturer a new product for the new markets
(Issa-Salwe and et.al., 2010).
Organic growth : It is a strategy in which companies can achieve their goals by increasing
sales or output. It is different from acquisition or merge. Organic growth focus on real growth of
the organisations to improve the managerial skills. Through this strategy businesses can
understand that the organisations are using it resources in the well meaner or not. So they can
improve their skills for organisational growth.
Limited growth -
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Market penetration: Market penetration is a process of advertising the existing products
of the organisation to their existing customers. The main focus of market penetration is to
increase revenue by promoting the products of company or by changing the brand.
Market development: Market development is a process of promoting the existing
products of the company into a new market or with new customers (Meskendahl, 2010). In this
strategy product remains same in the market.
Product development : product development is a process of expanding the companies
with the help of promoting their new product in the existing market. Organisation can replace
their old product with the new products.
Innovation: This strategy involves the replacement of existing product with the new
product. After inventing new produce promoting this in the new market or with the new
customers. This strategy involves more risk than other strategies.
Retrenchment: Retrenchment is the process of reducing something. All organisations
have goal of a successful business. The organisation want to increase their business growth but
when the scale of business revenue decreases than they start to reduce their business activities,
this reduction is known as retrenchment. Divestment is a strategy of selling off part of the firm in
the product market. It occurs when company needs to increase money (Oltra and Luisa Flor,
2010).
3.2 Justification of the above stated Strategy for VW AG -
Every organization in the market want to achieve their target by using the strategies.
Strategic planning is a long term process for developing a plan to achieve company's goals. VW
AG is automobile company, it can select best strategy for its business growth.
If any company wants to start joint venture, it provides the opportunity to gain new
expertise. The firm can understand better ideas of business growth. VW AG company wants to
achieve success in the market. If it selects to merge its company with another company, then it is
a advantage for the company that joint venture will give access to better resources. Joint venture
is a support for both company or it is an arrangement of both company (Parnell, 2010). In the
joint venture both companies share the risk, cost of manufacturing and profit as well. In case the
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project of that company fails then it is not the only firm who will bear the loss. All the expenses
will be divided into both the parties.
The primary advantages of selecting the substantive strategy are capital. In the small
businesses, there is lack of capital. For the growth of our organization, entrepreneurs have to take
a risk of funds. Vertical integration allows them to expand their company without taking funds it
also reduces the risks. Opening of a single firm takes time, but this strategy allows it to open in
the minimum time. The control over organization helps to run businesses in a highly profitable
manner. In vertical integration company takes full control of raw materials (Reich and Benbasat,
2013).
In the limited growth strategy if VW AG company uses market penetration it will be
more beneficial. Market penetration is a strategy in which company sells its existing products in
the same market. So it increases market shares and also useful for productivity. This strategy
takes less risk because there is no new product and no new market.
TASK 4
4.1 Responsibilities of personal who are charged with strategy
The success of strategy is depends on strong managerial leadership. Chief executive
officer holds the responsibility of implementation of a good strategy. They should explain
strategic plan with the objectives. Organisational leaders should be conscious about the
expectation of shareholders. They are responsible for misunderstanding or any confusion relating
to the duties of employees in the organisation.
The team members who are acting in the firm, who hold a team together, they have a
duty of effective innovation in the organisation. Communication in the firm should be clear.
Team cohesion also creates disadvantages such as it decreases productivity and lack of
creativity. Team members should identify the issues of responsibilities of staffs. The reasons of
successful strategy implementation is communication in the organisation (Scholes, 2015). The
managers of any companies have a duty to encourage for strong communications.
The organisation is necessary in upholding appropriate records. The advantage of having
clear roles presents the moral standards. Business holders are also responsible for it. It is
manager's duty to compare the competition between to organisation. They should always try to
maintain the standard of company. It is also a duty of manager to fulfil expectations of
customers. Hence, the success of any strategy depends on the strong managerial leadership. So
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leaders must fulfil company's strategic plan. All the strategies mentioned in the report should be
followed for the organisational goals. The manager should set a vision for the members of
corporation to clarify the strategic intention.
4.2 Resources required to implement new strategy
For the implantations of strategies always depends on the resources. If there are limited
resources in any firms and other corporations, it will be difficult to fulfil any strategy without
any resources. When all resources are combined then the firm can formulate their strategies. It
will become capable for doing any task for the organisation. Mainly there are four resources to
implement the strategies, which are human resources, financial resources, physical resources
and information resources (Schrader, Freimann and Seuring, 2012).
Human resources – The better implementation of the strategies are basis on the workers
of the organisation. Employees are responsible for the effective business strategy, they are the
biggest assets of the organisation. VW AG company is looking for the finest talent and valuable
things, from which that company can achieve success with implementing new strategies.
Financial resources – To understand the capability of VW AG company and for the
implementation of strategies, financial resources are very important. Some strategies are based
on the financial resources. The strategy of producing new product or introducing it in the new
market can take money. So for the completion of the best strategy financial resources are
required for it.
Physical resources – VW AG company spend a lot in physical resources. Physical
resources can be defined by local offices of the company. Physical resources play an important
role for providing an advantage over competitors to the company.
Information resources – Before selecting any strategy it is more important to consider
information resources. The organisation can forecast that whether it can keep all information of
its customers or not. Information resources are required for billing reporting and any network
performance of any strategy (Teece, 2010). For the effectiveness of strategy information
resources are important to transfer report of organisation.
4.3 SMART concepts for the achievement of target
SMART analysis is the tool of setting the objectives in terms to represent business
activities. SMART is a combination of setting goals and objectives that are specific, measurable,
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attainable, relevant and time bound. The idea of achieving goals of VW AG company must be
effective.
Specific - the objectives or goals of organisation must be specified or there should a
specific area for a specific needs. There should be clear that how will the organisation achieve it.
When firm is planning a project the objective should be clear. The description should be specify
in the way that anyone who is reading this objective will interpret in the same way. The
organisation should make sure that the objective described is observable (Astrachan, 2010). For
example – VW AG company wants to expand its share from 13 % in next year.
Measurable - The goal of the firm should be measurable. There should be a data from
which organisation can measure their progress. The organisation should know that how will it
measure the expectation. Using assessable terms like Quantity , quality , frequency cost and dead
lines etc .
Attainable - The objectives of the organisation must be realistic and achievable . It should
be based on any example: To measure the framed objective market share of the last year will be
compared.
 A indicates to achievable which helps to meet aims and objectives of the firm in the
appropriable resources. The organisation should have the capability of achieving that
goal.
Relevant – the objectives of organisation should be relevant to the business. It should be
considered worthwhile (Astrachan, 2010). There should be clear that what will be the impact of
this objective in the market .
Time bound – There must be a dead line for a particular time. The goal of the firm should
have a definite end. It refers that the objective has end point and it should be build into it. For
example – It is a mission of VW AG company to achieve goals in the 3 years.
CONCLUSION
This article concludes the process of strategic planning. This covers the process of
formulating new strategies for our firm. From this article organisation can analyses the
appropriate strategies relating to the marketing entry, substantive growth, retrenchment and
limited growth for the VW AG company. Companies can assess the roles of manager who are
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charged with strategies. This article can help us to analysis the resources which is required for
the new strategy. At the end it describes the SMART concepts for the business objectives.
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REFERENCES
Books and Journals
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its success—a conceptual framework. International Journal of Project Management, 28(8),
pp.807-817.
Astrachan, J. H., 2010. Strategy in family business: Toward a multidimensional research
agenda. Journal of Family Business Strategy. 1(1). pp. 6-14.
Astrachan, J.H., 2010. Strategy in family business: Toward a multidimensional research
agenda. Journal of Family Business Strategy, 1(1), pp.6-14.
Bharadwaj, A., and et.al., 2013. Digital business strategy: toward a next generation of insights.
Campbell, D., Edgar, D. and Stonehouse, G., 2011. Business strategy: an introduction. Palgrave
Macmillan.
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.
Cooke, F.L. and Saini, D.S., 2010. (How) does the HR strategy support an innovation oriented
business strategy? An investigation of institutional context and organizational practices in
Indian firms. Human Resource Management, 49(3), pp.377-400.
Dong-Hun, L., 2010. Korean consumer & society: growing popularity of social media and
business strategy. SERI Quarterly, 3(4), p.112.
Higgins, D., Omer, T. C. and Phillips, J. D., 2015. The influence of a firm's business strategy on
its tax aggressiveness. Contemporary Accounting Research. 32(2). pp. 674-702.
Issa-Salwe, A. and et.al., 2010. Strategic information systems alignment: Alignment of IS/IT
with business strategy. JIPS. 6(1). pp. 121-128.
Johnson, G.,and et al ,. 2013. Exploring strategy text & cases (Vol. 10). Pearson.
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