Business Strategies for the Digital Age

This assignment requires you to critically examine evolving business strategies within the automotive industry. Focusing on how companies like Volkswagen are adapting to digitalization and mobility, analyze specific examples of their strategies. The analysis should delve into the impact of these strategies on private vehicle ownership and consider future trends in the sector.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategic positioning of a given organisation........................................................................1
2.2 Environmental audit for given organisation..........................................................................4
2.3 Importance of stakeholder analysis.......................................................................................5
2.4 New strategy for given organisation.....................................................................................5
TASK 3............................................................................................................................................6
3.1 Alternative strategies relating to market entry, substantive growth, limited growth or
retrenchment................................................................................................................................6
3.2 Selection of a strategy...........................................................................................................7
TASK 4............................................................................................................................................8
4.1 Roles and responsibilities of personnel.................................................................................8
4.2 Estimated resource requirements for executing a new strategy............................................8
4.3 Contribution of SMART targets to achievement of strategy implementation......................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Business strategy refers to the working plan for a business firm in order to accomplish its
objectives, vision and also for optimizing the financial performance with business model. Under
this, firm develops a long term action plan which is designed for achieving a specific aim and
goals. It is necessary for a manager to develop an efficient or proper plan which will help staff
members to achieve organisational goals. Without having a strategy, it is impossible to achieve
the business targets (Ackermann and Audretsch, 2013). Under this given report, there is a case
discuss regarding Volkswagen as well as Johnson & Johnson which is a firm of Dragon Den. In
present report, factors which are considered at the time of developing strategic plans are
mentioned. A strategic positioning of Volkswagen firm from carried out an organisational audit
will be discussed under this report. In this report, importance of stakeholder analysis when
developing a new strategy will be discussed. Main motive of Volkswagen is to provide better
quality of products to customers so that it can make improvement in the market share as well as
in increasing revenue of the organisation. Regarding implementation of business strategy, there
are many roles and responsibilities of human resource which will be discussed under report. A
contribution of SMART targets and goals to achievement of strategy execution in Volkswagen
will be discussed under this mention report.
TASK 1
Covered in PPT
TASK 2
2.1 Strategic positioning of a given organisation
An intrinsic audit is very important for every business firm like for Volkswagen. With the
help of this, firm can easily determine its mistakes and then improve them in an effective or
proper manner (Alsoboa and Aldehayyat, 2013). Volkswagen is the biggest automotive
manufacturing business firm and it sells cars in Lamborghini, Skoda, Bugatti etc. SWOT analysis
is helpful in knowing about the strengths, weaknesses, opportunities and threats of a business
firm. From this, firm can accomplish its organisational objectives in an efficient and systematic
manner. The SWOT Analysis of Volkswagen is given as below:
1

Strength Weakness
 Volkswagen has wide range of cars
which gives more option to select from
all. Under this firm, around more than
350,000 are working. This company
has a worldwide production plants
(Bentley, Omer and Sharp, 2013).
 In China, it has a largest market plant
as well as more market share.
 It has the strongest diversified portfolio
brand and it sells as well as owns
almost 13 automotive brand such as
Bentley, Audi, etc.
 In the United Kingdom, rates of its cars
are very much high. The market share
of Volkswagen in United Kingdom is
not much high. The products or cars
which Volkswagen manufactures are
not more eco- friendly and also, they
are environment friendly.
 In comparison to other automotive
companies such as Toyota, Volkswagen
has not a very good brand image.
 The main weakness of Volkswagen
business firm is negative publicity of its
brand.
Opportunities Threats
 It is necessary for Volkswagen to focus
on its policies and from this the
goodwill of this company can be
enhanced as well as profit level.
 It can capture more market in United
Kingdom by using effective strategies.
 Through making environment friendly
cars.
 The employees of Volkswagen can
develop more creative cars because it
will be helpful to compete with its
competitors at market place.
 Under this, rules and policies which are
developed through government bodies
are regularly changing or enhancing.
 Cost of Volkswagen is more so from
this, the middle class people are unable
to purchase its car products (Bozkurt
and Kalkan, 2014).
 Its strong competitors are using
incentives and effective techniques for
its products which can impact on the
services and products of Volkswagen.
 In the automotive industry,
international competition is enhancing
continuously.
2

2.2 Environmental audit for given organisation
It is necessary for each and every business firm to know about their extrinsic
surroundings because these can directly or indirectly impact on the business activities. It can be
uncontrollable and uncertain. For environment audit, Volkswagen does PESTLE which is given
below:
Political factors- This component can impact on the Volkswagen’s operational exercises
as it conducts business in more than 145 countries. So, in addition to this, Volkswagen faces
many political problems. It is necessary for this company to prepare an effective plan so that it
can deal with any problem in an effective manner (Firnkorn and Müller, 2012). The rate of
interest as well as tax rates of every country are different. These both are on the basis of policies
of government.
Economic factors- Growth rate along with market share of automotive organisations are
more and they contribute towards the national economy of United Kingdom. Along with this,
they give their contribution towards increasing the GDP (Gross Domestic Products) of country.
In this context, Volkswagen faces some problems due to the crisis which can badly impact on
sales. If in this, fuel value will be enhanced then it will impact on economic condition of country.
Social factors- These factors play a prominent role in the development of Volkswagen.
In order to put a positive impact on society, it is important that Volkswagen should manufacture
friendly cars and provide them at reasonable price so that the middle income families can
purchase same. It is necessary that firm should handle all social issues in an effective way.
Technological factors- It is important for Volkswagen to use new and advanced
technologies to increase effectiveness and profit level of an organisation. Volkswagen uses new
technology in its production process so that the quality of its car will be good and satisfy the
needs of consumers. It will help in enhancing the goodwill (Grover and Kohli, 2013).
Legal factors- It is necessary for Volkswagen to work according to the legal rules which
are developed by UK government. Firm should apply all legislations at the workplace.
Environmental factors- It can negatively and positively impact on business. There are
some components which can impact on country’s surroundings like steels, diesel, etc. In this
context, Volkswagen should invest in the research and development which will help in
advancement in manufacturing.
3

2.3 Importance of stakeholder analysis
Stakeholders are the necessary part of business firm to increase development and profit
level of a company. It can be directly as well as indirectly impact on business strategy. The
stakeholders of Volkswagen are government, staff members, consumers etc. Stakeholder analysis
refers to a systematic process to collecting as well as measuring a qualitative data and
information to identify the interests which will be helpful in executing a policy (Kernbach,
Eppler and Bresciani, 2015).
Importance of stakeholders analysis at the time of formulating new strategies are given below as
above:
 It is important for the bondholders to determine those individuals which can impact on
the business performance as well as operation internally along with externally.
 If managers wants to enhance the performance level of their employees then it will
inspire them and they will be motivated. It will helps in enhancing services as well as
goodwill of Volkswagen.
 In Volkswagen company, employer always support its staff members, so that they can
achieve organisational goals on given time period.
 It is necessary for firm to determine all those necessary factors which can impact on its
business plans negative as well as positive.
 It is important that Volkswagen should know about its current market trend.
 Stakeholders analysis helps in delivering coordination as well as cooperating among the
project team and also bondholders.
2.4 New strategy for given organisation
It is essential for each business firm to develop an effective an proper strategy which
helps in satisfying demands and wants to customers in an efficient manner (Klettner, Clarke and
Boersma, 2014). An employer of Volkswagen business firm to develop an effective guidelines or
policies which can helpful ion enhance the market value of firm as well as developing a better
relationship among the firm, and consumers. In context to this, it is necessary for Volkswagen
company that before introducing any new product, it is necessary to create a new and effective
plan. The needs and tastes of every person is different from each other, so it is necessary to know
about the demands and preferences of people and then manufacture products or cars. It is
necessary that a business strategy should be related with organisational objectives.
4

The Volkswagen business firm uses a new strategy and that is market penetration. Under
this Volkswagen firm can enhance its market share with the help of making some changes in its
modification as well as pricing strategies (Li, Zhou and Si, 2010). With the help of this firm can
make its existing policies and also modify its pricing strategies, it will be beneficial for firm and
increase the profit level in an effective or efficient manner.
TASK 3
3.1 Alternative strategies relating to market entry, substantive growth, limited growth or
retrenchment
If a business firm wants to retain at market place then it is necessary to attract more
customers from business activities. In competitive market, there are many strong competitors of
Volkswagen organisation like for an instance Toyota. In context to thus, it is necessary for
Volkswagen firm to examine or identify its competitors and then prepare a better strategies
which can helps in beat competitors. The alternative strategies concerned with limited growth,
market entry etc. are given below:
Market entry- It refers to the whole new market for business. It is based on some
external factors like for an instance competition level, tastes and needs of consumers,
government taxes etc. Volkswagen is a large size firm and it provide its products at international
level. So in this the chances of risk is high and the cost expenses more (Markus and Loebbecke,
2013). In context to this, it is essential for employer of Volkswagen organisation to maintain
strong contacts with people and also acquires some other companies. It will helps in capturing
large market share and firm can achieve its goals in specific time period.
Substantive growth- Volkswagen organisation maintains as well as enhances its potion
in competitive market from this substantive growth strategy. In order to get success and attract
more consumers towards firm, then it is necessary to Volkswagen to develop some attractive cars
and provide additional features in them. In addition to this, firm ca be diversified its good in
other markets and from this the chances of risk will be less and revenue will be enhanced. It will
also helps in compete with its rivals at market place.
Retrenchment- If an organisation wants to accomplish its set goals and objectives in an
effective manner then it is necessary to increase business and products in other areas. If firm
5

deals with any risks as well as complexities then in this case strategy is helpful. It assesses in
manage all problems in a proper manner.
Limited growth- If Volkswagen company wants to enhance its market share then it
should create some merchandise for its consumers (Pagani, 2013). In context to this, firm can
provide its services as well as products in many areas in order to increase its goodwill in all over
the world. From this it can compete with its competitors in an effective or systematic manner.
3.2 Selection of a strategy
In order to make improvement in business, it is necessary to company to make some
changes in its existing policies and strategies so that firm can achieve targets and goals on proper
time. In this competitive market, performance of Volkswagen is high as comparison to other
firms. In context to this, it is analysed by Volkswagen that the skills and knowledge of staff
members so there is a need to provide them training so that they can do their business related
activities in an effective or proper manner. The main motive of Volkswagen business firm to
enhance the profit level with make some changes in the quality of its cars or other products. The
selection of a good strategy is helpful or better for the future and it can not impact on the process
of an organisation. With the execution of effective strategy, Volkswagen can enhance its market
share as well as business areas (Scholes, 2015). A justification behind strategies of Volkswagen
are given below as above:
Sustainability- For development prospective, Volkswagen business firm provides wide
range of products and services to consumers. In this business firm, skills and knowledgeable staff
members are working and they give their contribution in achieving organisational objectives. An
operating profit and also more growth can be use with the helps of opening new research in
United Kingdom in context to attracting more people.
Feasibility- It is based in that strategy which will be beneficial in future in order getting
new consumers so that firm can get the competitive benefits at market place. The customers of
the undeveloped nations have minimum income so that their experience of shopping is limited.
The people buy only those products which is necessary to them.
Acceptability- Volkswagen has a more market share and this firm provides its cars in
many different countries. The major reason behind long term retaining of firm is that it provide
better quality of innovative products to consumers. It conducts promotional activities ta large
scale.
6

TASK 4
4.1 Roles and responsibilities of personnel
At the time of implementing a new strategy at workplace, human resource plays an
essential role in this. Volkswagen firm develops new business strategy for make some changes
and benefits of business. The top management of this business firm develops effective and better
strategies and it is a duty of manager to implement these new strategy at work place in an
effective manner (Sluyterman, 2013). The manager of Volkswagen has full control on its
business operations as well as activities in a proper way. Team work is necessary in an
organisation and if all employees will work in a team then the aims of firm will be achieved in a
proper and given period of time. In execution of new business strategy, there are some roles and
responsibilities of personnel which are given below as above:
 It is necessary that manager should divide the work among stage members on the basis of
their skills, capabilities and also knowledge. From this they can attain objectives or gaols
quickly.
 In this, manager of Volkswagen should maintain appropriate and effective
communication among all functions so from this employees can share information and
data easily with their employers with out any hesitation. In context to this, employees can
provide its suggestions regarding any problems so that revenue and reputation of firm
will be improves at market place.
 It is necessary that managers of Volkswagen should look towards ethical consideration
and do its all activities in an ethical manner. From this business activities will never
influenced badly. From this employees will retain in firm for long time period.
 At the time of implementing new strategy at workplace, it is essential for manager of
Volkswagen to include staff members in this ( Smith, 2013). It helps in enhancing their
motivation level.
4.2 Estimated resource requirements for executing a new strategy
In context to execution of effective strategy, it is necessary for Volkswagen organisation
to make some changes in business in an effective manner. The resources should be used by
company in a proper way. At the time of executing a new business strategy some resources are
7

necessary like technological, raw material, human resource and financial resources. These all are
mention below:
Technological resources- All effective machineries as well as equipments are used
through Volkswagen business firm in its production process. Volkswagen company uses
advanced technology to make improvement in its business. Technology is helpful in minimizing
cost as well as time and it is a better resource in implementation of new strategy.
Financial resources- These are those resources which directly impact in execution of
new strategy. In order to purchase new machineries as well as equipments, finance is necessary.
Volkswagen firm needs financial to maintenance of firm, pay salary for employees etc. It helps
in minimising work as well as less difficulty (Sumer and Bayraktar, 2012).
Raw materials- Volkswagen firm deals in an automotive sector. Raw material is a most
necessary resource which needs to firm. It is necessary that raw materials should be in the right
quality as well as right quantity. In order to satisfy the needs of consumers, Volkswagen should
adopt and use better quality of the raw materials.
Human resource- It is a most innovative part or function of Volkswagen business firm.
Personnel of this firm is very disciplined as well as motivated. They should develop a positive
working environment so that all staff members can work in a proper manner. They are the
strengths of firm and work on achieving particular aims and objectives with in a specific time
period . It is a most necessary resources of firm.
4.3 Contribution of SMART targets to achievement of strategy implementation
It is important for business to frame suitable strategy and frame specific targets as well
with a time targets so that they get attain in an appropriate manner. Thus, SMART targets are
helpful in order to accomplish all targets and goals properly (Johnson and et. al., 2013).
Managers need to implement strategies properly so that better and effective results could be
underpin. Volkswagen wants to expand their business into several other countries and decision
makers have to formulate strategy for this concern. Below mention are the SMART targets of a
company which need to involve by management in an appropriate frame: Specific: It is important for business to maintain specific objectives which enable in order
to follow suitable path. Volkswagen need to frame suitable and specific targets for their
expansion so that better results could be underpin.
8

 Measurable: Targets need to be measurable in nature so that better and appropriate
concern get fulfil. Volkswagen frame their targets of increase in sales of 30% which
consider as measurable in nature. Agreed: It is important for business managers to consider all stakeholders properly and
agreed upon on a strategy as well. This enables them in order to accomplish all goals and
targets effectively. Realistic: Accomplishing sales target of 30% is consider as realistic in nature which
compile with management sales so that association maintain their place at keen
competitive world (Markus and Loebbecke, 2013).
 Time bound: This target need to get accomplish with in next 2 years so that Volkswagen
can improve their image at market place.
CONCLUSION
It has been given from above business report that if firm will develop the effective
business strategies then it will helps in achieving organisational goals in an effective manner. Tit
is necessary for company to decide its vision, mission and also core competences. These all will
provide benefit for firm. In this report studied about the role of personnel in implementation of
new strategies. An importance of stakeholders analysis has been discussed under report at the
time of implementing new business strategy. An appropriateness of the alternative strategies
which is concerned with limited growth, retrenchment, market entry has been studied under
given report.
9

REFERENCES
Books & Journals
Ackermann, S.J. and Audretsch, D.B. Eds., 2013. The economics of small firms: A European
challenge (Vol. 11). Springer Science & Business Media.
Alsoboa, S. S. and Aldehayyat, J. S., 2013. The impact of competitive business strategies on
managerial accounting techniques: A study of Jordanian public industrial companies.
International Journal of management. 30(2). p.545.
Bentley, K.A., Omer, T.C. and Sharp, N.Y., 2013. Business strategy, financial reporting
irregularities, and audit effort. Contemporary Accounting Research. 30(2). pp.780-817.
Bozkurt, Ö. Ç. and Kalkan, A., 2014. Business Strategies of SME's, Innovation Types and
Factors Influencing Their Innovation: Burdur Model/KOBI'lerin Isletme Stratejileri,
Inovasyon Türleri ve Inovasyonlarini Etkileyen Faktörler: Burdur Modeli. Ege
Akademik Bakis. 14(2). p.189.
Firnkorn, J. and Müller, M., 2012. Selling mobility instead of cars: new business strategies of
automakers and the impact on private vehicle holding. Business Strategy and the
environment. 21(4). pp.264-280.
Grover, V. and Kohli, R., 2013. REVEALING YOUR HAND: CAVEATS IN
IMPLEMENTING DIGITAL BUSINESS STRATEGY. Mis Quarterly. 37(2).
Johnson, G. and et. al., 2013. Exploring strategy text & cases (Vol. 10). Pearson.
Kernbach, S., Eppler, M. J. and Bresciani, S., 2015. The use of visualization in the
communication of business strategies: An experimental evaluation. International
Journal of Business Communication 52(2). pp.164-187.
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics. 122(1). pp.145-165.
Li, Y., Zhou, N. and Si, Y., 2010. Exploratory innovation, exploitative innovation, and
performance: Influence of business strategies and environment. Nankai Business Review
International. 1(3). pp.297-316.
Markus, M. L. and Loebbecke, C., 2013. Commoditized digital processes and business
community platforms: new opportunities and challenges for digital business strategies.
Mis Quarterly. 37(2). pp.649-654.
Pagani, M., 2013. Digital business strategy and value creation: Framing the dynamic cycle of
control points. Mis Quarterly. 37(2).
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Sluyterman, K. E., 2013. Dutch Enterprise in the 20th Century: Business Strategies in Small
Open Country. Routledge.
Smith, D.J., 2013. Power-by-the-hour: the role of technology in reshaping business strategy at
Rolls-Royce. Technology analysis & strategic management. 25(8). pp.987-1007.
Sumer, K. and Bayraktar, C. A., 2012. Business strategies and gaps in Porter's typology: a
literature review. Journal of Management Research. 4(3). pp.100-119.
Online
Volkswagen’s 2025 strategy targets digitalisation and mobility. 2017. [Online]. Available
through: <https://www.sbdautomotive.com/en/volkswagen-2025-strategy>.
10

Artificial Intelligence & Business Strategy. 2017. [Online]. Available through:
<http://sloanreview.mit.edu/tag/artificial-intelligence-business-strategy/>.
11