Business Strategy and Its Various Applications

This assignment involves analyzing the concept of business strategy and its applications in various contexts. It requires identifying key strategies used by companies across different industries, including automotive, technology, and sustainability. The assignment also involves exploring case studies, research papers, and online resources to understand how business strategies are developed and implemented in real-world scenarios.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1Examine the business visions, missions, objectives, goals and core competencies inform
strategic planning when formulating strategic plans..............................................................3
1.2 Analyse the factors that have to be considered when formulating strategic plans...........4
1.3 Evaluate the effectiveness of techniques used when developing strategic business plans5
TASK 2............................................................................................................................................7
2.1 Analyse the strategic positioning of a given organisation by carrying out an organisational
audit........................................................................................................................................7
2.2 Environmental audit.........................................................................................................8
2.3 Assess the significance of stakeholder analysis when formulating new strategy............9
2.4 Explain new business strategy..........................................................................................9
TASK 3..........................................................................................................................................10
3.1Explain strategies related to the Market entry substantive growth, limited growth or
retrenchment.........................................................................................................................10
3.2Appropriate future strategy for VWAG..........................................................................12
TASK 4..........................................................................................................................................12
4.1Roles and responsibilities of personnel needed for strategy implementation.................12
4.2 Explain various resource needed for implementing a new strategy...............................13
4.3 Explain smart target of VWAG......................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Today, it is important to formulate the strategic planning. Large number of organisation
are made their strategies for a accomplishing the goals and objectives. The business strategy is
part of management planning , it helps to develop and improve the organisation performance.
Organisation has made better strategies that are help for achieving success inn near future. There
are various internal and external factors which affects the business activities. Appraise the
business strategies is very important to identify the performance of enterprises. This helps for
accomplish competitive advantages in business. Volkswagen group is a largest auto mobile
company in world. They manufacture the cars and many kind of motor vehicles . They operated
in approx 150 countries. This report shows the vision, mission, objectives and core competences
of organisation. The swot and pestle analyses are also analyses and evaluated. This strategy also
helps to protect the business from financial crises (Aithal, 2016). The management also play the
important role for generate business strategies. Various techniques are used by organisation for
develop their strategic plan. the internal and external factors helps to success of business. The
audit for environment are also made different business strategies.
TASK 1
1.1Examine the business visions, missions, objectives, goals and core competencies inform
strategic planning when formulating strategic plans.
Strategic planning means to ascertain the company plans and policies that are helpful for
a accomplishing desired goal and objectives. It also helps to analyse the organisation internal and
external environment.
Mission: This statement is very helpful for company for a achieving goals and objectives.
through this worker has motivated for work and join hand to their team (Agyapong, and Boamah
2013). The vision of the organisation are achieved only with this mission statement. The mission
of this cited company is that they maintain the position in every sectors and mainly focus for
benefit to their customers. They manufacture the innovative car and motor vehicles which will
attracted to large number of customers.
Vision: This statement indicate the roadmap of company. The mainly purpose of creation
of this statement in order to accomplishing their long term goals and objectives. They also
provides the profit for their investor and other stakeholder(Alsoboa, and Aldehayyat). This cited

company want to become success and earn huge profitability in near future. they also focus to
manufacture different auto mobiles.
Goals: The company made some targets and goals for which they mainly works on this
elements. This is the long term planning which the company has focused. In organisation senior
level of managers are made goal and other workers are work for accomplishing this targets. the
goals of this cited organisation is to expand their business in every corner of world.
Objectives: Booth the goals and objectives are different from each other. These are
process to achieve the established goals. Company made short term objectives. they helps to
company to reach their destination factor. this citied company made objective is that they
motivate their employees to give maximum productivity for achieved the success and growth in
near future.
Core competencies: This help for company to achieve competitive advantages over the
another companies. It also helps for organisation to build their reputation in the minds of
customers. This Volkswagen organisation made their competencies in term of distribution,
manufacturing process, product development and focus for provide better services to large
number of customers.
These visions, mission, goals , objectives and core competencies are helpful for
formulating strategic planning.
1.2 Analyse the factors that have to be considered when formulating strategic plans
Many factors have considered that influences the strategic planning of organisation. Hera
are five phase for develop and improve the strategic planning of organisation:
The first phase is to examine the strategic planning of any business is to SWOT. To
identify the internal and external factors that affect the organisation growth and profitability
with the help of this analysis. SWOT analyse is to examine the strength and weakness of their
employees with the organisation and also analyse the opportunities and threats exist outside the
business environment. This cite organisation has effectively analyse their current position with
the help of swot.
The second phase is to examine the strategic planning of any business is to PESTLE .
Through this factor, it is easily identify the macro factors that affects the profitability of
organisation. Volkswagen group productivity also influenced by this factor that is political,

economic, social, technological and environment, how this factors are greatly impact the
activities of organisation. This comes under PESTLE analyses.
The third phase is to examine the strategic planning of business is to SWOT matrix, In
this matrix, they are divided into four quadrants namely as S-O strategy that indicate Max max ,
S-O strategy that indicate Max Min, W-O That is Min Max strategy and W-T that is Min Min
strategy .
Company has use various budgeting procedures and tools that helps for analyses their
strategy planning. Every business organisation has face various challenges in regard of their
internal and external environment of organisation. The internal factor consist human resource,
man power planning, organisation culture their leadership all these elements are managed and
developed. Comes to this cited company , they mainly focus for manufacturing the automotive
component. This company has suffered from huge crises so this has to affect her finance
stability. CEO of this company has change their climatic condition, economic and rules and
regulation. Most population of UK has affected through diesel because they pollute much
chemicals that are hazardous for public health.
1.3 Evaluate the effectiveness of techniques used when developing strategic business plans
Various theory that are applied for developing strategy plans and mention their
advantages and disadvantages. SWOT and PESTLE MODEL are help for review the straegy
formulation.
SWOT MODEL
With the help of this model, it is easy to identify the internal and external environment of
business organisation. The internal factors means the strength and weakness of employees who
are work within the organisation whereas the external factors includes the opportunities and
threats existed outside the company. Through this method, it help to analyse the goodwill and
profitability of businesses.
Advantage of SWOT analysis:
Every business has see theirs strength then according to this they work to improve their brand.
This cited organisation also focus to their internal strength that helps for achieving growth of
company. Every business has also focus to their weaknesses so it can reduce all risk and
complexities that are comes in future. With the help of this factor, they also get competitive

advantages with other co panes. This cited organisation also identify the threats that are exist in
market and they focus to remove this threats.
Disadvantage: Mostly all business are worked to theirs strength , they do not much focus on
their weaknesses and threat,so it affects the productivity of business. Sometime they provide
information that are not useful for business enterprise, it also adverse affect of organisation
working.
Pestle analysis:
This model analyse the company political, economic, social, technological, legal, and
environment conditions.
Political: This factor mainly influences the working of industry(Killing, 2012). Certain
industry are affected this factor such as government stability, trade and tariff policy. It is
necessary that the company has worked according to rules that are imposed by government. The
government has put the diesel rate high it adverse affect the company profitability.
Economy: This factor mainly impact the consumer purchasing power and their income
level. The inflation rate, exchange rate etc. are all consist of economic factors. The increasing
prices of fuels that have large impact the growth of Volkswagen group.
Social: This factor also very important for business growth. IT include various elements
such as demographics, income level and cultural trend(Ang, 2011). Today mostly person are get
more knowledge relate to motor vehicles, cars in respect of their mileage capacity, prices of
competitor etc.
Technological: This play the major role for development of industry. Companies has
innovate different models with help of this technology advancement(Firnkorn, and Müller
2012.).
Legal: This factor has adverse affect the company policies and procedures. Government
has made new rules tat are adopted by this organisation. Volkswagen has restricted in UK
because diesel has spread the adverse effect of health of human being.
Environmental: This factor influence the supplier and consumer income level. The
climatic condition are comes under this factor.

TASK 2
2.1 Analyse the strategic positioning of a given organisation by carrying out an organisational
audit
Organisational audit can be defined as an objective assurance independent and consulting
activity which is specifically designed for adding values and improving organisational
operations. It brings systematic and disciplined approach to analyse and evaluate the
effectiveness of risk management. It is also termed as an activity which is made to assist
organisation and important is sustainability and operations.
SWOT Analysis of Volkswagen: -
Strength
 It is regarded as widest brand portfolio
among all automotive companies in
automobile industry
 Having “TOGETHER – 2025”
expansion strategy.
 Resonance between brands.
 Joint ventures with local and
international auto makers.
Weakness
 Negative publicity and promotion
policy weakens the whole
Volkswagen brand.
 The highest probability of detection in
the U.K Market.
 Low level of shares in UK automotive
market.
 Low expertise and less competence in
manufacturing battery driven
vehicles.
Opportunities
 Fuel prices are expected to increase in
the coming future so battery driven
vehicles are good prospects.
 Acquiring better skills and competences
through acquisitions of small
companies .
 Demand of autonomous vehicles will
increase.
 Decreasing value euro exchange rate in
Threat
 Intense competition is observed in
Global market.
 maintenance cost is too high .
 government regulation policies are
different and strict in different
countries.

market .
 Focusing on improving sustainability
policies to rectify damaged brand
reputation.
2.2 Environmental audit
Environmental auditing is an measurement tool of environment to measure the activities
of environment based on certain criteria. It takes certain environmental factor which recognize
and benefit of environmental matters and the environmental performances are taken by a wide
range of parties. It is used to investigate, understand and identify and helps in rectifying the
adverse effect of these activities on the environment .
PESTAL analysis of Volkswagen: -
Political Factors: Volkswagen is facing political problem in almost over 140 countries as
different country have different political conditions . The political setup of different countries
have factors like the banking and low level barriers to market entry and also different country
have different international trade agreement.
Economic Factors: The economic factors which impact the company like the
taxes,sustainability in growth rate ,investment in research and development, size of market ,
competition in market and government expenditure, these elements are to be considered while
studying the economic factor.
Social Factors: These factors involves that in the social environment are like young
population of the country, stability in social structures, the workforce and their frame of mind,
new market and the demand forecasting and other mergers and acquisitions.
Technological Factors: The technological factor involves the skills of research and
development team, assisting capability of the technical team and penetration of technology in
current trend it is important to monitor sustainability of business,their recycling policy , local
market , infrastructure and weather conditions
Legal Factors: It involves authorisation and legalisation of the company in the country.
The concentration of company in market. factors like consumer protection law, property law,
labour law, taxation law and emission law as well as they should take extensive care of taxation
requirement .

2.3 Assess the significance of stakeholder analysis when formulating new strategy
Stakeholders' analysis plays a crucial role in determination and analysing needs and
wants of stakeholders of the company. It can be used in order to determine all issues of
stakeholders and resolve them in an effective manner. Managing stakeholders expectations and
ensuring their active involvement is the major role of stakeholders' analysis. Along with this,
stakeholders of Volkswagen also put a huge impact on its decision making activities and it
enables effective risks identification and response planning so as to gain high competitive
advantage.
On the other hand, a stakeholder is any entity with a declared or conceivable interest or
stake in a policy concern. The range of stakeholders relevant to consider for analysis varies
according to the complexity of the reform area targeted and the type of reform proposed and,
where the stakeholders are not organized, the incentive to include them. There are various types
of stakeholders are follows:
Stakeholders Concern
Government VAT, legislation, taxation etc.
Employees Job security, rates of pay, communication, compensation etc.
Customers Customer care, value, ethical products, quality.
Investors Income, return on investment
Creditors New contracts, liquidity, credit score.
Stakeholders' mapping - It is a collaborative process of research, debate, and discussion
that draws from multiple perspectives to determine a key list of stakeholders across the entire
stakeholder spectrum.
2.4 Explain new business strategy
Every organisation have to create their business strategy if they want to increase their
market and customer for products. Many kind of business strategies are available in the market
by which a company can increase its market share. There are available some strategies are given
below:
Market penetration: It includes increasing market share by attracting more and more

customers. It focuses on existing segments in market. Market penetration includes selling more
products to new and existing customer (Agyapong and Boamah, 2013). If talk about VWAG
which operate its business in UK they have to adopt market penetration technique to increases its
sells in the Market.
Product development: This involves modification in the existing product or
development of new products according to the need of the customers. It also focuses on the
innovation in the products so that they can sustain in the market for long time against its
competitors. It also includes thinking about new products so they can attract more customers for
increasing sells. For example in auto mobile sector VWAG have to modify its products which is
closely related to the needs and preferences of the customers. Because in UK there competition is
very tough so they have to be innovative in their products (Kernbach, Eppler and Bresciani,
2015).
Market development: Company has to develop and finding new market for their
existing products. For this purpose market segmentation is very important for finding new
customers and identify various types of clients (Godlevskaja, van Iwaarden and van der Wiele,
2011). In UK it is very important to segment different market so company can bring new
products according to the choices and preferences of the customers.
Diversification: Company has to focus on diversify its market so more people can
purchase firm's products. This involves new products transfer into new market. This strategy of
business is very risky because if organisation is move away from what it has done in the past it
create uncertainty so diversification is helps to spread the risk.
TASK 3
3.1 Explain strategies related to the Market entry substantive growth, limited growth or
retrenchment
Market entry growth: It includes some points which are mentioned below:
Organic growth: When a company starting development over its own business as the
same way it is known as organic growth. It has been done in the beginning. Merger: When two organisation is combine together and conduct a business it is known
as merger.

 Acquisition: This is different from merger. When a company take over another company
and conduct separate business entity known as acquisition (Killing, 2012). Strategic alliance: Some time a company adopt the assets of another company to achieve
its goals and objectives than it is known as strategic alliance.
 Licensing: It includes that if a company give rights to another company to use its name in
exchange of some fix amount. Here parent company known as licence and another
company is known as licensee.
Substantive growth: Related diversification: When a organisation starting its diversification and it related to
the product line than it is known as related diversification (Firnkorn and Müller, 2012). Unrelated diversification: It includes when a company conduct diversification and it is
not related to their existing products that means it is a unrelated diversification. Horizontal integration: This kind of integration includes when two different companies
are engage in business at same level of production or different industries known as
horizontal integration.
 Vertical integration: This type of integration involves different companies at different
stages of production than it is called vertical integration.
Retrenchment: Turnaround: It includes transfer of underperforming organisation into profitable
organisation. It focuses on improving financial performance by identify different sources
of finance and resolve financial crises. Liquidation: A organisation can adopt this strategy when it reaches its last stage of its
business cycle. In liquidation a company is sell its all the valuable assets and money from
those assets are used to pay creditors.
 Disinvestment: This kind of strategy includes sell whole business to another company.
Limited Growth: Market penetration: It includes increasing market share by sell more more products and
services to the customers. It also focuses on develop new products and this can be done
by various market strategies such as discount and advertisement (Champoux and et.al.,
2012).

 Market development: It includes market segmentation which helps to attract the different
customers and increase sell of the company.
 Product development: This includes modify or innovate new product by creating,
designing and marketing of new products.
3.2Appropriate future strategy for VWAG
Future strategy of VWAG is to became a successful auto mobile company in UK. To full
fill this objective company has to adopt future strategies for growth. Market development
strategy is appropriate for VWAG. This strategy is help to the company for develop new market
by market segmentation. It will help to attract more new customer in the market and provide
them better product according to their preferences. Organisation can also use strategic alliance to
increases its business in UK. Marketing development strategy is help to the company to adopting
other strategies that can helps to increase profits of the business (Burlton, 2015). VWAG can
also use product development strategy which help to differentiate of products from its
competitors. By adopting these strategies company can increase its business in different area of
UK. Because there is tough competition in the market so company have to adopt market
development strategies for sustain in the market for long time against the customers.
TASK 4
4.1 Roles and responsibilities of personnel needed for strategy implementation
When a organisation want to implement their which is adopted by then to accomplish
their objectives they needed a person who can lead all over work and assign the whole work to
subordinates according to their skill and competencies. The persons who have lead whole work
should have some roles and responsibilities which is necessary to achieve the goals and
objectives of the organisation. For successful implementation of the strategies these roles and
responsibilities should clearly defined. Manager of the VWAG is responsible to communicate
whole strategies to their employees (Ang, 2011). They are also responsible to communicate
strategic plan. Responsibility of proper completion of strategy is depend on the good leadership
skills and communication skills of the managers and CEO.
Apart from that another responsibility of personnel department is that to maintain proper
record of every activity of the strategy. It also includes that manager have to responsible for legal
and ethical standards which is very important responsibility of the personnel department.

Monitoring and controlling is another important factors to successful implementation of the
strategy. Manager have to monitor every single activity of the strategy. It will helps to identify
mistakes at right time and take proper action according to them. If manager is doing proper
control over whole strategy implementation there is less chances of arising of mistakes. It
promote overall performance of strategic planning. Roles and responsibilities of personal
department are playing vital role in successful implementation of strategies. Proper
communication of strategic information to employees is very essential for strategic planning.
4.2 Explain various resource needed for implementing a new strategy
For successful implementation of the strategy various resources are required which is
available in the market. Organisation have adopt various resources and optimal use of these
resources is very essential for implementation of strategic plan. There is various resources are
mentioned below:
Human resources: This is a essential part of any organisation because without the
employees a company can not carry out its operations effectively (Alsoboa and Aldehayyat,
2013). The managers have to identify total number required for implementation of strategy,
check the availability of employees and after that arrange human resources for successful
implementation of the strategy. All over performance of the company is depend on the HR. for
VWAG completion of given strategy is essential to have enough productivity and technical
knowledge. So basically this kind of resource have to considered by any kind of enterprises who
want to complete their strategy successfully.
Financial resources: This is also a crucial resources for completing a strategy
effectively. Without funds a organisation can not operate its business efficiently. Financial
resources means how a company can finance its strategy. It also includes preparing budgets for
every activity so that every function is accomplish effectively. A enterprises can raise funds from
two ways such as debt and equity. There is various financial services available in the market by
which a organisation can raise its funds for their strategy implementation but equity is more
preferable by most of companies as there is no interest bearing cost on principle (Aithal, 2016).
Time resources: This kind of resources is includes set the time for every activity so
strategy can be completed in enough time. Manager has to control on time management of
strategy implementation.

Material resources: For ant strategy there is some material required for implementation
the project. VWAG should use high technologies, machine for fulfilment their adopted
development project.
4.3 Explain smart target of VWAG
By the smart target means that objective and goal which is fixed by the VWAG that must
be specific, measurable in criteria, achieving in time and it must be realistic.
There are detail given below: Specific: This includes some important things which a organisation should know when
they setting their targets. These important things such as what exactly want to achieve,
how it can be achieved, what are the limitations and conditions, why exactly a company
want to achieve this goal and what are the possible alternatives to achieve the same goal. Measurable: It means that a company should identify what things can hear and feel when
it reaches its target. Manager has to focus on breaking down his goal into measurable
elements. Measurable goals is help to go in long time in finding what exactly it is
company want to do. It also help to define physical evident of objective or goal and make
it easier and clearer to reach. Attainable: This include to investigate that goal acceptable or not. It focuses on weigh
the time, effort and other cost against profits which is incurred by completion of goal. If
a company have not enough time, money and knowledge to attain the target that there is
chances of failure (Agyapong and Boamah, 2013). A enterprises can attain any target if
they steps wisely and fix time frame for accomplishment of targets. Goals of the
organisation is reflect the image of the company. Realistic: This step about ensuring that the goal should be realistic. It means targets and
objectives matter to organisation and that is also aligns with other other related goals.
Assistance ans support is needed when achieving goals but it is important to control over
them. So a enterprise make sure that plans transfer to every one but manager is still
responsible for achieving own goal.
 Time bound: Every target need a date and fix time so that task can be completed in
specific time. This part is very important for strategy implementation because it helps
accomplish every day task in time.

CONCLUSION
As per the report it has been concluded that a effective implementation of business
strategy is depend on proper analysis of external environment. The main objective of VWAG is
to technological development in their products according to the preferences and needs of the
customers in UK. Here is suggested that Volkswagen can expend its business operations by
segmentation of different markets. For this propose more identification should be required.
VWAG can also use the product development strategy which help to differentiate products
against their competitor. By adopting this strategy a organisation can operate successful business
internationally and attract their customers. As per the present report a organisation is focuses on
product development strategies which is very important to increase the sells of company. Report
is also include smart target which has to be adopted by enterprises if they want to achieve their
target in specific time and effective manner. Report is also include roles, skill and competencies
of the managers which directly affect the implementation of businesses strategy. Effective
implementation of business strategy mainly depends on existing conditions of market.

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Online
Business strategy. 2017. [Online]. Available through:<http://businesscasestudies.co.uk/business-
theory/strategy/business-strategy.html>. [Accessed on 3rd August 2017].