Business Strategy Assignment - Volkswagen company
Added on 2020-11-12
14 Pages4260 Words305 Views
Leadership ManagementProfessional Development
|
|
|
BUSINESS STRATEGY
Table of ContentsINTRODUCTION ..........................................................................................................................1TASK 1............................................................................................................................................1Covered in PPT.......................................................................................................................1TASK 2............................................................................................................................................1CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTION Business strategy can be defined as an organization's planning to reach specific goals ortarget. A successful business strategy is determined by growth in business, strong financialperformance and strong competitive position. Volkswagen Group is the largest automotivecompany in Europe founded in 1937, and handling around twelve brands such as Audi, Skoda,Porsche henceforth. It is operating two businesses primarily: Automotive business and FinancialServices Business. In this report business strategy, its implementation as well as appropriation ishighlighted. This report have a brief of strategic planning, its execution and factors that hasmajor influence in it (Blackburn, Hart and Wainwright, 2013). In addition to this, it contains casestudy on market strategy of Volkswagen, its internal or external business environment and itsimplementation. TASK 1Covered in PPTTASK 22.1 Organizational auditStrategic planning is an organization process of well defined direction, goals, objectives,vision strategies and decision making on allocation of its resources in a manner that it is enableto reach its stated vision. Volkswagen Group is largest automaker company in Europe. It usesValue based positioning strategy to develop inspirational and emotional connection with itscustomers.Strengths:Global approach: Volkswagen group is the oldest car manufactures and well establishedagainst its competitors. Germany is stronghold by Volkswagen. However the companyhas around 70 production plants and their approach is in close to 149 countries across theworld. Well structured brand: Volkswagen is a very well structured brand and it produces highengineered super cars, passenger's car and buses as well. It has various products in itsportfolio, where each strategic business unit is responsible in the success, and brandingas well as smooth and efficient structure (Iacob, Quartel and Jonkers, 2012).
Excellency in research and development: Volkswagen have built most high technologycars with excellency in their performance. For this, the R&D department of its sub brandshave given it products beyond expectation. Weaknesses:The emission scandal: This scandal affected the whole organisation thoroughly and dueto this near about five million cars were returned to the company. This scandal haveaffected the goodwill of the firm in negative manner.Existing Competitors: There are many automotive companies in competition toVolkswagen. So to stay in market Volkswagen has to play with its pricing in competitionto its competitors like Ford, Hyundai, Toyota etc. and suffer low margin on product,which also affects the brand. Opportunities:Hybrid/fuel efficient/ auto driven and innovative car designs: Growing purchasepower of customer is the biggest opportunity for automotive companies to manufactureproducts which are technology oriented and ecologically concerned (Wang and Verma,2012). In coming time fuel will be costlier so fuel efficient and hybrid cars will drive theautomotive industry. Worldwide expansion: The demand of the product will only increase by growing GDPand rise in need of product. Volkswagen should try localising their product and strategiesas per local requirements to tap more emerging countries and world wide expansion. Threats:Declining Brand reputation : Due to emission scandal the brand image of Volkswagenwas completely affected. Volkswagen have spent a huge amount to rebuild the brandpositioning, however many people are still not confident about this brand.Rise in Competitors: The automotive industries is an open market for all newtechnology and innovations. So the competition will never be decreasing for Volkswagen.2.2 Environment AuditEnvironment audit can be defined as the process to assess whether an organization isdoing proper environmental compliance considering all political, economical, social,technological, environmental and legal factors (Alsudiri, Al-Karaghouli and Eldabi, 2013).
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Business Strategy Assignment of Volkswagen : Reportlg...
|22
|4570
|33
Report on VW Emission Scandal Affect on Volkswagen Grouplg...
|13
|4147
|33
Report on Business Project - Volkswagenlg...
|20
|6766
|36
Understanding the Existing Situation of the Target Marketlg...
|11
|3633
|60
Business Strategy of Volkswagen Grouplg...
|13
|4173
|42
Business Strategy : Volkswagen Assignmentlg...
|16
|3851
|33