Essay on Business Strategy of Volkswagen

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task 1: Process of formulating strategic Plans................................................................................1
1.1 Assessment of mission vision goals, objectives, and core competencies of Hungry house. 1
Mission........................................................................................................................................1
1.2 Elements to be considered while developing strategic plans................................................2
1.3 Evaluating the techniques for developing strategic plans for Hungry..................................3
Task-2 Formulating strategy ...........................................................................................................5
2.1 AN organisation audit for Volkswagen (VW)......................................................................5
2.2 conducting environmental audit for Volkswagen.................................................................6
2.3 Importance of stakeholder analysis in framing stratergy......................................................8
2.4 Developing new strategy for Volkswagen..........................................................................10
3. Strategic evaluation approaches................................................................................................11
3.1 Ascertaining the suitability of alternative strategies in relation to growth or retrenchment
for Volkswagen.........................................................................................................................11
3.2 Justifying the strategy selection .........................................................................................13
4. Analysing the way of implementing strategy............................................................................13
4.1 Assessment of roles and responsibilities of personnel in implementing strategy...............13
4.2 Evaluating the resource requirement in implementation of strategy..................................14
4.3 Calculating the contribution of SMART target to strategy achievement and
implementation in Volkswagen.................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business strategy refers to designing of long term plans by
company to achieve its goals and objectives. Business strategy can also
be defined as the process of analysing mission, vision, goals and
objectives of the firm. Business strategy helps organisation in providing
direction in order to achieve its aim and objectives. It has a crucial role
to play in organisation as without proper guidance, company will not be
able to work smoothly.
The purpose of the study is to suggest effective strategic planning
for the Volkswagen company. Volkswagen is the leading organisation
dealing in Auto mobile sector. The study will include various processes
involved in strategy planning and implementation. The report will also
include the significance and influence of various people on organisation.
Task 1: Process of formulating strategic Plans
1.1 Assessment of mission vision goals, objectives, and core
competencies of Hungry House.Mission
Mission is a statement that defines the purpose of establishment of a
particular firm. It helps organisation in analysing various the demand
and supply of product and services that the company is going to offer.
Mission statement of Volkswagen that contributes in strategic planning
are;
 To produce and deliver attractive, safe, luxury, safe and
environmental friendly vehicles.
 To expand its core business
 To earn higher profit.
 To gain high market share.
 To establish worlds standard in respective industry.
1

Vision
Vision statement can be considered as the road map of any company. It
indicates what company wants to become and what position the firm
wants to achieve in the future, it helps in providing guidance by building
platform for growth of the firm.
Vision statement of Volkswagen
To become the top-rated auto mobile industry. Its mission is to have
focus on positioning as a international and economic as well as
environmental leader among auto mobile manufacturer. To be most
successful fascinating and sustainable auto maker.Goals and objectives
The goals and objectives describes the target that the
company has to achieve throughout the year.
The objective and goal of the firm are:
1. To stand as winner in auto mobile industry.
2. To grow its business.
3. To introduce more services.Core competencies
Core competencies refers to the skills that assist business in
gaining competitive advantage. The core competencies of Volkswagen
sales and marketing strategy. The organisation serves unique portfolio of
goods that is made up of successful brand that attracts customer.
Innovative skills has helped company in distinguishing their products and
services from that of competitors. Multi brand structure.
2

1.2 Elements to be considered while developing strategic plans.
1. Factors related to industry-In planning strategy various
elements are needed to be analysed. These elements include
growth, competitive strength, profitability, market entrance etc. As
these elements may have great effect on its working.
2. Competition element: Examining the competitor’s position is
important part that need special attention while framing strategy
as this part may have great impact on survival of firm. The reasons
behind the success of any organisation is its understanding about
the competition in market and knowledge about its competitors.
3. Strength and weakness: Before planning or framing strategy
company should use swot analysis method in order to get
information about its strengths and weaknesses as this will assist
the firm in developing accurate strategy. In addition to this
appropriate strategy will help firm in reducing its weakness and
gaining competitive advantage.
1.3 Evaluating the Techniques for developing strategic plans for
Volkswagen
There are two techniques that can be used by Volkswagen which are:
Growth sharing matrix: This matrix has been created in order to assist
firm in long term strategical planning which will aid business in analysing
growth opportunities. These opportunities can be examined by
overviewing the products' portfolio and determining the field for
investment,etc.
It considers that firm’s business unit can be classified into 4 categories
which is based on combination growth of market share and market. (Sia
and Weill 2016.)
On the basic of this matrix various situation faced by company can be
analysed.
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1. Stars: This star symbol in BCG matrix shows high market share and
full growth. The company is placed in star situation when it is generating
large amount of cash due to their larger market share and high growth
they have to bear large amount of cash. In this case the company make
efforts to maintain its larger share in market then it can place itself in
the position of cash cow and can generate cash revenue.
2.Question marks-in this situation the firm consumes large amount of
cash and captures growth rapidly but the firm in this case is unable to
generate high revenues due to their low market share. This position
provides opportunity to company to transform themselves and take
place themselves in star position and further firm can convert their
situation in position of cash cow.
4
Illustration 1: BCG Matrix
Source:
(http://http://www.smartinsights.com/
marketing-planning/marketing-
models/use-bcg-matrix/ )