Business Strategy Analysis: Malaysian Hotels

This assignment, based on the research paper 'The effect of business strategy and external environment on management control systems: a study of Malaysian hotels' by S. Auzair (2011), requires an analysis of how business strategy influences management control systems within the context of the hotel industry in Malaysia. The assignment involves evaluating the role of both internal and external environments on strategic decision-making processes and their impact on operational efficiency.

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
AC 1.1 Cocofina and their business strategy with Mission, Vision, Goal and core competencies..3
AC1.2 The factors which consider while formulating business strategy planning..........................4
AC 1.3 Technique used to make effective strategies business plan.................................................4
TASK 2.................................................................................................................................................5
2.1 Analysis the strategies positioning of Volkswagen AG by carrying out an organizational audit
..........................................................................................................................................................5
AC 2.2 Environment Audit of the Volkswagen................................................................................6
AC 2.3 Assess the significance of stakeholders analysis when formulating new strategy for the
VW
AC 2.4 Present a new strategy for the Volkswagen AG...................................................................7
TASK 3.................................................................................................................................................7
AC 3.1 Analysis the appropriateness of alternatives strategies relating to market entry, substantive
growth, limited growth or retrenchment for Volkswagen AG..........................................................7
AC 3.2 Justify the selection of a strategies for the Volkswagen AG................................................8
TASK 4.................................................................................................................................................8
4.2 Resources of business.................................................................................................................9
AC 4.3 Evaluation the contribution of SMART target to the achievement of strategy
implementation in Volkswagen AG................................................................................................10
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11

INTRODUCTION
The business strategies is the process in which the systematic implementation and evaluation of
business plan which helps in achieving the organisation long term goals. In this report the business
strategy of cocofina and the Volkswagen has covered. To achieving growth of cocofina their
business mission, vision, goals and their core competencies can be considered for the success.
While the Volkswagen has to positioning new strategies for making their product development and
targeting the market penetration. The alternatives strategies such as limited growth is effective for
the entry in the market. As a result the SMART model also bring modification in the business
strategies.
TASK 1
AC 1.1 Cocofina and their business strategy with Mission, Vision, Goal and core competencies
Vision: Their vision of making people healthy with their coconut drink and other products. To
complete the social needs and make valuable brand for the customers. They want contributing in the
economic growth and development of the nation by creating more employment and revenue return
to the nation.
Mission: The mission of Cocofina is to produce highest number of product related with the
coconut. They want to cover the market share within a certain time. Also they have mission to be
number one organisation in the country. They want their brand become Mobiles among the global
customer
Goals:
 Cocofina have goal to create innovative product which contains coconut.
 They have goal to make environment free with pollutions (Three kind of business strategy,
2017).
 Also they goals to make citizens healthy with their products.
 To expand their business globally with their own outlets.
Core competence: variety of products such as coconut energy drink, coconut energy bars chips,
vinegar, sugar, and flour made from the fruits which are found in the tropical areas are the core
competencies of the Cocofina (Astrachan, 2010). This are the product create value but the most
important benefit for Cocfina products are healthy for the human bodies. It contains several
nutrition’s which gives energy whole day. It also reduce the blood pressure. Specially removes
depression and stress with its antioxidant properties.

AC1.2 The factors which consider while formulating business strategy planning
For any business success they role strategic business plan is highly important. To formulate the
strategy planning following factors have to be consider such as:
 Internal Factors: This factors includes the inside the organisation whether it can be the
core value and ethics, also the culture of the organisation and policies which can affect the
strategy plan.
Figure 1PESTEL analysis
(Source: Campbell, Edgar. and Stonehouse, 2011)
 External Factors: This are the factors which are not in the control of the organisations. But
according to that factors organisation has to adapt their situations (Campbell, Edgar. and
Stonehouse, 2011). This are the factors includes the political factors, economical factors,
social factors and technological factors has to be considered. Political factors affect the
business plan as such the policies made by government for the business has to be follow.
The current market situation which leads to be play the economic factors. The change in the
technologies may also affect to the business strategy plan related the process of products.
The social factors will affect the strategy planning in which the taste and preference of the

customer has to be identify with the proper research.
 Competitor: This factors affects the organisation in each and every aspects of the business.
They can be the reason for decreasing the market share of our own organisation. Once the
market share cover by the competitor the existing business will suffer loss or may be in the
breakeven point.
AC 1.3 Technique used to make effective strategies business plan.
Before making any effective business strategies plan the following techniques are used:
 Business Model: This are the tools which can be study whole business process. It is used to
make goodwill in the market. Sometimes it can be the product or the services of the business
can be the value for the business.
 Business Analysis: Analysis of business is the important key techniques for making
effective strategies business planning (Hahn., Kolk and Winn, 2010). It can be the proper
research on the customers’ demands, tastes and preference or the statically data collection on
the research done on the particular product or services used by the customers.
 Business plan: For every business there is a proper plan and procedure. It can be the
investment into the new business or to expand the existing business it required plan. To
generate revenue from the different sources can be the target for the business.
 Business case: This techniques used to analysis the benefits which the business is going to
get. Also the cost of their core products can be the study in the business case. The risk which
has to be taken for the business are the area to make a business case
 Budget Planning: For every business in each and every area requires the budget. It may be
the Annual budget or the quarterly budget depends on the size of the business.
TASK 2
2.1 Analysis the strategies positioning of Volkswagen AG by carrying out an organizational audit
The organizational audit is the process in which the current situation has been analysis on
the different parameter for making organization system better (Chang and Chuang, 2011). It is not
simply to found the mistake but to rectify the wrong practices in the organization. The audit of the
Volkswagen AG can be done through the SWOT Analysis inn which strengthen, weakness,
opportunity and threat has to be considered.
 Strength: The current strategy announced by the VW AG is the “TOGETHER- 2025. In
this strategy they are focusing their goals up to the 2025. They have some mission of

introduce 30 new electrical vehicle by 2025. This is the most important organizations
electrification.
 The joint venture with the localized chines auto maker companies to cover the maximum
market share of the china.
 Weaknesses: As per the customer reviews their cars are not satisfied the need of the
environment. The pollution from the carbon of Volkswagen cars are high in comparison of
competitor cars.The positioning in the US market is the biggest weakness for them. They are
not able to cover the market share and also not complete ting there sales target.
 Opportunity: change in the technology to manufacturing environment friendly cars
(Meskendahl, 2010).
 Threat: The impact of the global economy is also a factor for reduction in their sales. High
competition from the Indian market make their brand downward.
AC 2.2 Environment Audit of the Volkswagen
The environment audit or the external factors studied by the organization for improving the
goodwill in the Market. The environment audit can be analysis from the different environment such
as political. Economic, social, technological and legal environment.
 Political Environment: Volkswagen has issued with the government during their
commitment failure of carbon emission from their car and which makes their brand value
decrease (Auzair, 2011). Due to the political intervention they have to suffer huge loss.
 Economic Environment: This environment has influenced the Annual revenue of the
Volkswagen inn which they are not able to stable in the Market like US. Downward sloping
economy is the rising the question for the manufacturing and not able achieving the sales
target from the different market is the big issue for them it’s just because of the economic
pressure.
 Social environment: The response from the society after their scam make their sales
decrease and not able to get response from the US market customer also the social issue for
the Volkswagen.
 Technological Environment: The technological used to manufacturing their product is care
to the environment. Also try to solve the problem related with carbon emission.
 Legal Environment: The Volkswagen involves in the scandal of the manipulation in their
cars carbon emission proves the wrong results from which they to face the legal action from
the government. Which leads to pay huge revenue loss as fine fee (Klettner, Clarke and

Boersma, 2014). To break the law related with environment issues.
AC 2.3 Assess the significance of stakeholders analysis when formulating new strategy for the VW
AG
The stakeholder are the important assets of the organisation. It include their work force, customers.
Shareholders, competitor, government, and creditors. Every decision from the organisation will be
impact on the stakeholders. The employees of the Volkswagen are maintain a happy relation with
their customers. In the Volkswagen the authorised business person have to face the problem after
the name raised in the scandal of carbon emission in in their products. They face the problem like
not achieving the sales due to loss of customers trust. It is necessary for them to aware about such
things.
Figure 2Stakeholder analysis
(Source: Dong-Hun, 2010)
The competitor of the Volkswagen took advantages with this activity in which they are not able to
cover the market (Dong-Hun, 2010). To make aware about the competitor step is the necessary
aspect from them. Which brings changes in their current situation better. Shareholders have to be
considered for the new strategy beachside they are incurring loss after the sales has been decreased.
Proper revenue planning has to be considered while making any decisions. Stakeholders are always
be the first priority for them. Volkswagen can build the strong stakeholder with its brand value
which brings change in their business. To make proper market research will give clear pictures for
their customer’s preferences. It is very important to assess the significance of stakeholders analysis
to formulate any new strategy bring changes for the Volkswagen groups.

AC 2.4 Present a new strategy for the Volkswagen AG
To change in the Volkswagen AG new strategy will be formulate on the basis of current situation.
For that Ansoff matrix will be beneficial to Volkswagen. The new strategy for the Volkswagen AG
is to be considered the product development and the market development. The market development
will be helpful to make a sensible step in the US market. To penetrate the market will beneficial to
Volkswagen to cover the market share and earn revenue (Hoejmose, Brammer and Millington,
2013). The product development can be the second things for the new strategy of the Volkswagen a
s their cars are not environment free and the carbon emission is more in their product which has
been reduces the market value as well they had lost the customers trusts. With product development
strategies they can try to change the process of testing their carbon emission or introduce the new
technology equipment for find the carbon emission with help of different vendors and finalised the
best suitable result from them to launching their new cars in the market. As a result of new strategy
the one more things will be arise when the product and market development will be done for them is
diversification of the customers. As the customer will divert back to them that will be result for the
more sales and revenue generating aspects.
TASK 3
AC 3.1 Analysis the appropriateness of alternatives strategies relating to market entry, substantive
growth, limited growth or retrenchment for Volkswagen AG
The below alternatives strategies can be relating to easy market entry.
 Limited Growth:- This can be introduce by the Volkswagen during the entry in the
Chinese market that they accidence the localized auto maker to compete with the competitor
as well to cover market of china. That led to help in the limited growth of the Volkswagen
AG.
 Substantive Growth: In the substantive growth the firm want to stable in the market. As
result the Volkswagen sales has been decline due to global economic decreased (Teece,
2010). The US market not responding with their goal. The Indian market also not
remarkable for them but they try to be in the market with the different strategies and cost
cutting for their cars.
 Retrenchment: in the retrenchment continuously decline the sales and as result the
liquidation has to face the organization. Volkswagen has also faced the declining their sales
target and not able to earn revenue in the global market in which the Volkswagen has come
in the liquidation situation. This will brings the loss of market share and survive in this

situation is not easy.
The best suitable is limited growth in which organisation know the results and it will be
beneficial for the entry in the market.
AC 3.2 Justify the selection of a strategies for the Volkswagen AG
As per the case study of Volkswagen it has been generalised that current situation of the
Volkswagen is not up to mark. It has to be more focus on their business strategic (Verbeke, 2013).
The limited growth is beneficial for the Volkswagen where they know there customers and they are
getting the result with this entry in the market. The budget has to be allocate in the proper manner as
such the liquidation will not took place no matter what the situation comes. The limited growth can
give the right direction for the Volkswagen. Using of new software for the testing the carbon
emission will be help full in trust build of the stakeholders. Nevertheless, Volkswagen is going to
make its product development and market penetration strategies are in the direction of limited
growth to deal with current situation. The product development change their perception of the
customer. The market penetration also help to achieve the limited growth for the Volkswagen. But
the global economic condition is not for the Volkswagen. As they have to aware about to invest in
the niche market. It can be justified that Volkswagen not only a big brand but it growth can affect to
the market and for the compatriot they are focusing in the new technologies before the year 2025.
TASK 4
4.1 Roles & Responsibilities of personnel who charged with strategy implementation
Roles :-
 Operation Analyst:-The roles & the functions of operational analyst is to analysis & learn
the vehicle allocation, sales & distribution management, analysis of area allocation,
performs related to the development of network development or managed the new vehicle
assignments & orders (Reinhardt and Stavins, 2010).
 Sales Analyst: - Sales manager preprepared the annual business plans & help the monitor
the Parts & the accessories sales where his objective is to create new ideas in the selling of
Volkswagen.
 Marketing Analyst:-This is the individual which help to develop the broad understanding
of the corporate marketing function & support the department overall analysis of the market.
Some roles assigned is media planning, brand advertising, dealer digital marketing,
competitor analysis, understanding the customer acquirements.
 Finance Analyst:-It refers to that individual is control the business or its finance degree &
focusses on the overall management.

Responsibilities:-
 Corporate Responsibility:-Cars have an various impact on the people & environment & the
society, this leads to the corporate responsibility
 Environment Responsibility: - A Volkswagen perform their responsibility for the
environment means production their cars in clean factories (Scholes, 2015). That's why the
cars of Volkswagen is manufactured in such a way which protects the environment by their
designing & operations.
 Responsibility for the workforce/Human Resource:-It’s a top worlds' car producer which
known for their excellence work by their team management. In these regards they regularly
survey the employees there satisfaction with their Mood Barometer. They giver opportunity
to their employees can develop their skills & there working capacity.
4.2 Resources of business
The estimated resources which are the basic requirement of the Volkswagen luxurious car
manufacturing company was as follows:-
 Capital Resources:-An financial resources is basically a finance which is a basic
requirement for the formulation of the business & require for the entire journey of the
organisation. There is the essential element in the long run.
 Land Resources:- For the start-up of business an asset is an element which is required very
must. Under this the Land is refers to that place or area where they run their business,
industry, factories which there which is situated for the production. In the case of
Volkswagen luxurious car manufacturing company there overall production & there
headquarters in situated in Germany & Berlin.
 Human Resources:- A Human resource is that important element in the organisation which
is required each & every stage. Manpower management is very much required in the
organisation where they perform their work with their learning skills & produce sustainable
products to their customers (Robinson, Lloyd Sherwood and DePaolo, 2010). In the case of
Volkswagen, they use a high-tech technique & tools which is required development of
learning skills in their workers as they launch new & innovative highly automatic cars.
 Technological Resources:- A technological resource is that important or mechanical based
resources which is required for the production. As the Volkswagen is the worlds the best car
manufacturing company where they provide highly technological machines &equipment’s in
the company. The technology is that initial element in which overall company is depend.

AC 4.3 Evaluation the contribution of SMART target to the achievement of strategy implementation
in Volkswagen AG
In Volkswagen the SMART target are successfully reached by proper business model. This
will take Volkswagen to the certain directions also helpful in achieving their business goals
S stand for “specific” target which leads to increase the market share of the Volkswagen get
revenue for the Volkswagen. The market share of Volkswagen has 3.7% globally.
M stand for “measurable” target with highest selling 10,296,997. Vehicles. This shows the
remarkable presence by the Volkswagen (Slater, Olson. and Finnegan, 2011).
A stand for “achievable” It can be show that the strategies which is implemented for the
Volkswagen are in proper manner then the target can be achievable.
R stand for the “realistic” In which the goals has to be realistic for the Volkswagen and are
not in the unrealistic which can’t be the participation for the end results.
T stand for the “targets” for the Volkswagen with related to the SMART. From the case
study we can generalised that the Volkswagen is not achieving their target due to product
failure in the market. The target has to be half yearly or the annually and it should be in the
achieving position. Change in target will bring change in the revenue model. Moreover the
targets are not considers as profit making but to cover the market share.
CONCLUSION
From the above reports outcomes it is clear that the business strategies play the major role in
the business long term as well short growth of the business. The different techniques used to make
business strategies effective such as business model, business case, budgeting plan etc. are the
crucial factors for organisation satisfaction. Also the new stretchy used for the Volkswagen with
help of Ansoff matrix change the product and the market shares. The different alternatives strategies
are used for growth can beneficial for the Volkswagen and the SMART model will be the important

REFERENCES
Journals and books
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processes: Examining the roles of infrastructure capability and business strategy. Expert
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Dong-Hun, L., 2010. Korean consumer & society: growing popularity of social media and business
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Hahn, T., Kolk, A. and Winn, M., 2010. A new future for business? Rethinking management theory
and business strategy. Business & Society. 49(3). pp.385-401.
Hoejmose, S., Brammer, S. and Millington, A., 2013. An empirical examination of the relationship
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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.
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.
Reinhardt, F. L. and Stavins, R. N., 2010. Corporate social responsibility, business strategy, and the
environment. Oxford Review of Economic Policy. 26(2). pp.164-181.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning. 43(2).
pp.172-194.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Online
Three kind of business strategy, 2017. [Online]. Available through:<
https://www.smartdraw.com/strategic-planning/three-kinds-of-business-strategy.htm>.

[Accessed on 29th September 2017].