Business Strategy and Its Various Perspectives

The provided assignment is a compilation of academic papers and articles that explore the concept of business strategy from multiple perspectives. It includes works on digital business strategy, performance implications of knowledge management processes, and the influence of business strategy on project portfolio management. The document also touches upon stakeholder mapping and its importance in successful project management. The summary aims to provide a brief overview of the various topics and themes discussed in the assignment.

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Covered in ppt.............................................................................................................................1
TASK 2 ..........................................................................................................................................1
2.1 Identification of strategic position with assistance of organizational audit..........................1
2.2 Environmental audit for Volkswagen...................................................................................2
2.3 Measures related with stakeholders in preparing of strategies..............................................3
2.4 New strategy for Volkswagen...............................................................................................4
TASK 3 ...........................................................................................................................................5
3.1 Alternative strategies related to market entry limited growth and sustainability..................5
3.2 Selection of best strategy......................................................................................................6
TASK 4 ...........................................................................................................................................6
4.1 Roles and responsibilities of personnel in strategy implementation....................................6
4.2 The essential resources requirements for execution of new strategy for Volkswagen.........7
4.3 Evaluation of SMART targets in business strategy .............................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
Business strategy is considered as the effective organisational plan which is essential in
dealing with business objectives and set aim. It plays the most effective role in order to gain
competitive advantage at market place. The basic purpose of each organisation is to achieve their
goals and objectives within a stipulated period of time from which an effective business strategy
is required. It is required for a firm to manage their work according to the framed strategies so
that it will be easy for them to attain growth and success in a systematic and effectual way.
Volkswagen is the largest auto mobile manufacturer in Europe that is chosen for the present
study. This report will study about the strategic positioning of firm as well as its environmental
audit with assessing the significance of stakeholder analysis. The roles and responsibilities of
personnel who are responsible for strategic implementation will be described here as well.
Further, contribution of SMART targets will be highlighted as well.
TASK 1
Covered in ppt..
TASK 2
2.1 Identification of strategic position with assistance of organizational audit
The basic requirement of each business organisation is to formulating an effective
strategy which helps them to evaluate those factors in working environment that are impactful in
decreasing the performance of firm and does not let them to attain growth and success. Internal
audits are important tools that are used by firm to analysing their difficulties which may affect
organisational performance (Acquaah, 2013). It can be described as consulting and objective
activity which create values in operation function of company. Organisational audit is a
systematic approach which helps in reducing conflicts and obstacle at the work place or helps in
proving a effective way to running all business activities in smooth manner. This also helps in
identifying strength, weaknesses, opportunities and threats of firm. It can be measured through
SWOT analysis of business venture. SWOT analysis of Volkswagen is described as follows:
Strength Volkswagen is a multinational company who operates there business
activities in various geographical areas. Its operates its products and
services over 160 countries; its vastly expand there business activities in
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Germany, China, Brazil and Asian countries. It is a car manufacturing
company who deal in luxury cars and spend a huge amount in the
department of research and development in order to identifying the
current market situation.
Weaknesses Volkswagen is possessing their business operation in some certain
countries which is considered as its major weaknesses. It has only 3%
share in automotive market of Asian country. The company is work on
generating more advancement in their products but is not enough for
capturing a wide area of market.
Opportunities These are accumulated through implementing companies strength at right
place. These type of business are having more chance to expand their
business operations in international market in order to making more profit
and growth for company. It is easy for Volkswagen to enter into new
business segments just for generating more market share and profit. The
company is able to implement various changes through applying new
tools and techniques at market place (Astrachan, 2010).
Threats The company is facing high loss in their profitability due to heavy price
of fuel. High rate of fuel will demand of hybrid cars and sales of
companies will also decreases. Strong market competition is the major
treat of companies growth and success.
2.2 Environmental audit for Volkswagen
Company was facing various issues related with cares which are developed by them as
they were eliminating smoke and pollution in very large amount, in the year of 2015. this has
impacted on natural environment and also affect the health and safety of people (Auzair, 2011).
This is the essential issue which is not accumulated by firm as they were not aware about the
situation and problem. Its get evaluated by firm when the sales of car were decreased as
compared to their competitors. It is required for firm to resolve it by making proper strategies
which are effective in enhancing sales of firm. Environmental audit can be done through
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PESTLE analyses and it ca be considered as the most essential tool in automotive industry. This
is describes as follows:
Political Environment: The major purpose of each business organisation is to expanding their
business activities in terms of generating more profit and growth. Volkswagen achieve success
through paying less tax, tariffs, and exercise duties as they are dealing in high profile auto mobile
industry.
Economical Environment: It is required for each business firm to formulate strategies in order
to diversify their business activities in well planned manner so that goals could be achieved at
very high scale in economy. Some issues are arise due to inflation in economich condition of
firm.
Social Environment: These are mainly linked with the all business environmental factors that
are valuable in providing shaping to behavioural aspects of customers with the involvement of
buying preferences of client in respect of developing features of car as per the taste and
preferences of customers who are willing to taking advantage of Volkswagen.
Technological Factor: This factor is connected with manufacturing products as per the
advancement in technology that are suitable for enhancing the productivity of firm. The company
is focused on producing goods and services as per the demand of customers in order to sustain
them for long time.
Environmental Factor: This company considered environmental component in their business
venture, so this will not affect their business operations (Azar, 2011). Thee company is focused
on resolving the issue of smoke in their cars and develop new and innovative cars with more
advance features.
Legal Environment: This part mainly consist of present legislation policies and plan that are
affecting their business operations. It is required for each business organisation top follow the
rules and regulation which are assembled by government in order to managing their business
activities within and out side of the country.
2.3 Measures related with stakeholders in preparing of strategies
Stakeholders can be considered as the most essential part of business organisation, who
are contributing their best efforts in order to attaining desired goals and objectives. Effective
formulation of business activities are helpful in attainment of long as well as short term goals of
firm that are very much effective in enhancing overall performance of firm. Research activities
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are more effective in evaluating the needs and wants of customers who are very much important
in gaining competitive advantage at market place (Barberá and et. al., 2012). Volkswagen is
applying matrix policies, thus is is more effective in identifying actual needs and wants of
potential buyers.
The value of stakeholder analysis are measured as follows:
 Stakeholders are most essential part of firm and helps in increasing profit and revenue of
firm through contributing their best. Stakeholders are implementing their self in
establishing effective plan which are result in performing CSR activities at work place.
 Various strategies are formulated in respect of analysing current and past position of
market and also helps in attaining competitive advantage.
 Strategic plan are essential in order to carry out all business activities in appropriate
manner, which are important in enhancing firms performance through improving
employees performance.
 Business firms are focused on determining plans and policies which are necessary for
employees as well as higher authority to follow in respect of developing their
performance and working ability.
2.4 New strategy for Volkswagen
In today's competitive world each business organisation is focused on implementing
effective business strategy in order to managing their whole organisational activities, so that firm
can achieve desired goals in appropriate manner. This is valuable in enhancing performance of
firm through providing high quality products and services to their potential buyers who are
willing to taking advantage of offered services of firm. Business strategies are effective in
increasing profitability and productivity of firm (Chang and Chuang, 2011). New and effective
strategies are designed to identifying the stakeholder who are involved in each activity of
business operation and helps in contributing their significant efforts in targeting a wider area for
increasing their sales and revenues. New and effective strategies are formulated in order to
gaining at higher position at market place in which firm can easy set their business activities as
per their priorities. For implementing new strategy Volkswagen follow some basic steps which
are described as under:
 First and major duty is to mapping their stake holders in order to identifying the demand
and needs of customers at market.
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 Second shareholders can formulate strategies which are effective in expanding their
business activities at very large scale through offering high quality and advance feature in
their cars.
 The strategy of growth are beneficial for firm in respect of measuring the areas in which
firm can easily expand their business activities at market place.
 It is the major responsibility of firm to identifying the changing needs and wants of
customer that are arises due to implementing change in market trend (Cinquini and
Tenucci, 2010).
The above mention factors are very much valuable in gaining competitive advantage at market
place in order to proving competition to their competitors.
TASK 3
3.1 Alternative strategies related to market entry limited growth and sustainability
The organisation is focused on adopting most suitable strategy which are helpful in
attaining growth and success for firm. In order to formulating plans Volkswagen are using
different type of strategy which are impactful in organisational business operation. Some
strategies are describes as follows: Market Entry: Each business organisations are focused on attaining their desired goals
through providing services to the potential customers in well planned manner (Coad,
2011). With the expansion of business in different geographical areas, it will easy for
customers to taking benefits of services and variety of goods which are offered by
company. Limited growth strategy: This is widely used by those firm who are not having huge
amount of money to expand in their business activities. This can be considered as the
most suitable strategy which is applied by Volkswagen in respect of increasing their
performance and working ability at market place. Retrenchment: In this company is focused on adopting new and advance strategy which
is most suitable for growing market share and profit of company. According to this
strategy organisations are leaving the past strategy which is used by them in their
previous performance and does not effective in gaining profit.
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 Sustainable growth: Company is mainly focused on adopting effective pricing policy at
market place in order to gaining attention of large number of people towards their offered
products and services.
3.2 Selection of best strategy
The effective and best strategies have to be accumulated by firm which helps in achieving
organisational goals and objectives. Volkswagen have measured the situations of market in the
overall economy. The company is focused on designing effective plans for adding some new and
advance featured in their cars, so that productivity could be increased. They are mainly concern
about fulfilling the needs and wants of customers in order to providing satisfaction. The strategy
of limited growth is the best suitable strategy for Volkswagen and it is impactful in increasing
their productivity through involvement of advance technology. With the help of this strategy the
resources that are involved in economy of firm effectively utilised (Eccles and Krzus, 2010).
Company have to design some effective plans in order to entering into new market and gaining
attention of targeted customers. The company is using various strategies in order to reaching at
higher competitive advantage at market place. Now a day's company is focused on
manufacturing those goods which are having high demand at market place. This create value in
achieving higher growth and profit at market place. The company is targeting those customers
who are willing to taking advantage and benefits of offered services of firm and helps in
enhancing the productivity of firm through increasing their sales at market place.
TASK 4
4.1 Roles and responsibilities of personnel in strategy implementation
In an organisation various individuals are helpful in making effective strategies at work
place. They are very much essential in accumulating organisational goals and objectives in
desired period of time (Montgomery, 2011). Some are describes as under:
CEO: Chief executive officers can be considered as the most essential part of shareholders who
are contributing a huge amount in effectively implementation of business and its activities at
market place. They are the owner of firm and responsible for all activities that are helpd at work
place. They are mainly concern on dividing whole business among various departments in order
to completion of work through applying various resources.
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Manager: They are the essential part of firm that are involved in board of directors of firm and
having a control on all business activities that are effective in carry out the business in right
direction (Elliot, 2011). They are responsible for assigning task and duty to the employees who
are putting their efforts in achieving goals and objectives of firm.
Engineers and research personnel: They play most effective role at work place and contributing
their best in enhancing productivity of firm through applying various innovative tools and
techniques. They are responsible for making understand their subordinate about task and duty
which are needs to followed by them .
Top management: They are helpful in assigning task and duties to employees who are working
in some groups and departments as per their own capabilities. They are responsible for
identifying weaknesses of employees in order to providing training and development programs in
respect of enhancing their performance.
4.2 The essential resources requirements for execution of new strategy for Volkswagen
In order to implementing effective strategy various resources are required that create
value for firm and its business activities. Volkswagen use various resources for formulating plans
and policies, some are described as under:
Human resources: It can be considered as the most essential assets of firm, in which employees,
managers and subordinates are involved who are contributing their best in attaining competitive
position at market place. It is necessary for higher authority and owners for knowing the needs
and wants of employees in order to proving significant support in attaining desired goals and
objectives (Ghezzi, 2013).
Financial resources: This is the most effective resources of firm which is essential in
implementing all business activities in a right manner. It is required for each business
organisation to manage their capital in order to carry out business activities in proper direction.
Physical Resources: IN this competitive era each business firm is focused on adopting most
suitable strategy in order to improving their productivity through emerging development in
technologies and tools. It is the responsibility of manager is to identifying the needs and wants
of work place, so that employees can work in efficient manner.
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4.3 Evaluation of SMART targets in business strategy
Managers of Volkswagen are facing issues from several aspects which are operating in
business process. In order to execute SMART goals and objectives in performing their business
operations (Dong-Hun, 2010). This results in achievement of high markets shares and growth
rates. There are several plans and policies adopted in order to enhance their performance level
and develop skills and capabilities of employees. SMART objectives should be Specific,
Measurable, Attainable, realistic and time bound.
Firms are focusing on setting targets for employees in order to enhance their performance
and increase productivity at work places. There should be good coordination among all
departments in order to achieve good results. The main aims and objective of selected firms are
described below as:
 Making an effective strategy not only enhance workers capability along with employers
but it also effect productivity which in turn affects profitability ratio by 30% in positive
manner (Meskendahl, 2010).
 When the number of customers will be increased who will use their goods and services
and will give satisfaction as feedback.
 Shareholders are considered as backbone of the company because they are the major
channel of funding, so they should be valued at work places in order to achieve high
profitability.
CONCLUSION
As per the above report it has been concluded that each business organisation is focused
on implementing best strategy at work place in order to enhancing their performance and
working ability of employees. Strategic planning plays most effective role in business
organisation and helps the higher authority to taking effective decision that are beneficial for
organisational performance and growth. SWOT and PESTLE analysis is also helpful in making
effective decision and conducting business audit in order to evaluating their performance of firm.
The factor that are useful in formulating strategic plan. Identifying the effectiveness of
techniques that are used in developing strategic business plan. Strategic position of a given firm,
environmental audit and various stake holders of firm. The roles and responsibilities of personnel
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who are responsible for strategic implementation. The contribution of SMART targets will also
be described in efficient manner.
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REFERENCES
Books and Journal
Acquaah, M., 2013. Management control systems, business strategy and performance: A
comparative analysis of family and non-family businesses in a transition economy in
sub-Saharan Africa. Journal of Family Business Strategy. 4(2). pp.131-146.
Astrachan, J. H., 2010. Strategy in family business: Toward a multidimensional research
agenda.Journal of Family Business Strategy.1(1). pp.6-14.
Auzair, S., 2011. The effect of business strategy and external environment on management
control systems: a study of Malaysian hotels. International Journal of Business and
Social Science. 2(13).
Azar, O. H., 2011. Business strategy and the social norm of tipping. Journal of Economic
psychology. 32(3). pp.515-525.
Barberá, L., and et. al., 2012. Advanced model for maintenance management in a continuous
improvement cycle: integration into the business strategy. International Journal of
System Assurance Engineering and Management. 3(1). pp.47-63.
Bharadwaj, A. and et. al., 2013. Digital business strategy: toward a next generation of insights.
Bharadwaj, A. and et. al., 2013. Visions and voices on emerging challenges in digital business
strategy.
Burlton, R., 2010. Delivering business strategy through process management. In Handbook on
Business Process Management 2(pp. 5-37). Springer Berlin Heidelberg.
Campbell, D., Edgar, D. and Stonehouse, G., 2011.Business strategy: an introduction. Palgrave
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Chang, T. C. and Chuang, S. H., 2011. Performance implications of knowledge management
processes: Examining the roles of infrastructure capability and business strategy. Expert
systems with applications. 38(5). pp.6170-6178.
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.
Coad, A., 2011. Appropriate business strategy for leaders and laggards. Industrial and Corporate
Change. 20(4). pp.1049-1079.
Dong-Hun, L., 2010. Korean Consumer & Society: Growing Popularity of Social Media and
Business Strategy. SERI Quarterly.3(4). p.112.
Eccles, R. G. and Krzus, M. P., 2010. Integrated reporting for a sustainable strategy: One Report
has the potential to significantly change how companies operate and investors think,
shifting the focus from that of meeting short-term financial goals to developing a long-
term business strategy that not only makes a commitment to corporate social
responsibility, but also to a sustainable society. Financial executive.26(2). pp.28-33.
Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
and framework for IT-enabled business transformation. Mis quarterly. 35(1). pp.197-
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Ghezzi, A., 2013. Revisiting business strategy under discontinuity. Management Decision. 51(7).
pp.1326-1358.
Jocovic, M. and et. al., 2014. Modern business strategy Customer Relationship Management in
the area of civil engineering. In App
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Meskendahl, S., 2010. The influence of business strategy on project portfolio management and
its success—a conceptual framework. International Journal of Project
Management.28(8). pp.807-817.
Montgomery, C. A. ed., 2011.Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Online
Stakeholder mapping, 2014. [Online]. Available through:
<http://continuingprofessionaldevelopment.org/stakeholder-mapping-key-to-successful-
project-management/>. [Accessed on 2nd October 2017].
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