Business Strategy and Its Impact on Organizational Performance

The provided document is a collection of research papers and articles related to business strategy, its types, and its impact on organizational performance. The document includes references to studies on the Chinese Tao of business, transparency strategy, and the use of business analytics in strategic planning. It also mentions the importance of matching business strategy with CIO characteristics for better performance. Additionally, it provides information on how to approach a business strategy assignment, including creating a PESTLE analysis and Porter's generic strategy.

Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategies positioning............................................................................................................1
2.2 Environment Audit................................................................................................................3
2.3 Importance of stakeholder analysis (SA)..............................................................................5
2.4 New strategies for the VWAG .............................................................................................6
TASK 3............................................................................................................................................8
3.1 Appropriateness of alternative strategies..............................................................................8
3.2 Selection strategy .................................................................................................................8
TASK 4............................................................................................................................................9
4.1 Responsibilities of individuals..............................................................................................9
4.2 Requirement of resources for implementing strategies.........................................................9
4.3 Contribution of SMART objectives....................................................................................10
CONCLUSION .............................................................................................................................10
.......................................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategies define as a process of specifying the enterprise's vision, objective,
goals, missions and developing all plans and polices in a systematic manner. It is also identify as
a science, art of the management as well as craft of implementing,evaluating and formulating
cross function that will disable an industry in order to achieve long term objectives (Business
Strategy, 2016). It will cover a period of time of about 3 to 5 years which is longer in sometime.
It is long term action plan which designed to attained a specific targets or set objectives or
values. It is a core function of administration which must be said that having a better strategy as
well as executing as well.
This file is based on “Volkswagen Group”, it is a largest automotive manufacturing
organisation in the all over the world. The VW AG mainly divided into two divisions such as
financial services and Automatise Divisions in United Kingdom. In this report core
competencies, mission and visions of the business along the different factors which is
formulating strategic plan also described here. Organisational and environmental audit as well as
important of stakeholder analysis which is also determined in this assessment. Substantive,
limited growth and retrenchment for cited company along the duties of personal in
implementation changes which is determined in this file. Requirement of necessary resources
which is essential for formulating new strategies, and at the last SMART objective of the
enterprise which is also analysed in this report.
TASK 1
Covered in PPT.
TASK 2
2.1 Strategies positioning
Each and every activities evaluation which is complete by the organisation in order to
satisfying buyers needs and wants. It also improve the business operations results is known as
audit of organisation. They have different advantages as well as it supports in determining the
firm skills and ability such as infrastructure, resources. This will guide the company manager at
the same time in making effective strategies. The SWOT analysis which is very essential and it is
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used by manger of the VW AG for analysing the strengths, opportunities, threats and weaknesses
of the business. This method define under this which are as follows:
Strength Weaknesses
Skills and capabilities of an organisation which
is differentiate from their challengers so it is
called as strength. By analysing the high share
in market effectively, it can captured by cited
business . There are several points which are as
follows:
 To deliver and make variety of quality
products in order to fulfilling buyers
satisfaction.
 VW AG use effective and efficiency
process for producing finished goods.
It is important for making maximum
number of the clients which acquire
effectiveness in whole business
activities.
 They use standard approach for
making quality goods.
 They expanded their activities in
different locations.
 They have positive brand, it is one of
the main strength of the organisation in
order to increase productivity and
profitability.
 VW AG have innovative and effective
commodity which attract maxim,um
number of the buyers in every year.
There are several points of the weakness which
have mentioned company in their business
operations are:
 Numbers of their challengers which is
very high so it is grater weaknesses of
enterprise.
 Poor knowledgable and experience of
employees which effect the
implementing process of strategies.
 Lack of capital and fund
Opportunities Threats
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 Maximising technological products
scope which provide best opportunities
to the company to expand their
activities in different fields.
 As buyers needs and wants which are
modifying at speedily. It give better
opportunities to the VW AG to add
additional features in their existing
goods for delivering creative services.
 Acquire competences and skills
through acquisitions.
 Various kind of company policies
which is made by legal authority as
well as rules and regulation which is
generate unnecessary conflict in the
functioning of business.
 One of the main threats is large
numbers of the challengers which are
existence in same market.
 Maximising governments regulations
 intense competitions
2.2 Environment Audit
The audit of environment is define as a process of determining different elements which
is present in surround (Acquaah, 2011). This will support an enterprise to accomplish its goals
and values by bringing a disciplined and systematic methods to evaluate as well as change the
effectiveness of control, governance process and risk management etc. It is also define as a micro
business, it will includes the customers, competitors and other stakeholder.
PESTLE Analysis of the Volkswagen group which are as follows:
Political factors: In this, company operating different numbers products which are existence in
this. With the use of this business face different legal and political problems in this organisation
(PESTEL Analysis, 2016). VW AG is capable as well as liable to follow all rules and regulations
in systematic manner. Under this kind of legislation which is regulated by the UK government.
From the same, doing and starting of the business expansion in other locations, so it is needed to
analysis their effect on business process.
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(Source: PESTLE Analysis of VW AG, 2015)
Economic factors: Wage, bank, deflation and inflation rate which are present in the market. In
this buyers income level which is mainly consider. For example: if various kind of the banks that
maximise the loans rate, so it is generate hurdle in the business expansion because in today VW
AG is pay maximum interest (Alsudiri and et. al., 2013). As another, minimum interest rate
which is highly effects on the upper level management to grow activities in another areas.
Social factors: Different trends, spending patterns and lifestyle of the buyers which is present in
the same location. All these are largely impact on the individual and their buying process.
Maximising the technological goods usage, it is positively maximise VW AG sales in a
systematic manner.
Technological factors: For maximise the product sale in order to capture a large share in market.
So it is very essential for each and every organisation to select innovative technology. Buyers
updated new goods in order to increase their satisfaction level (Amit and Zott, 2012). New
technology and their adoption which is reduce the business operation cost as well as maximise
effectiveness of them.
Legal: In this factors all rules and regulation comes, which is good as well as bad for the
company in achieving high productivity and profitability in a effective manner. Sometimes this
source determine the obstacles and misunderstanding in the firm functioning.
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Illustration 1: PESTLE Analysis

Environmental : Each and every businesses are liable to use effective activity in order to make
healthy and safety environment. So in this way organisation running smoothly which is most
essential for the VW AG to make friendlily environments due to products. From the same,
effective process as well as raw material quality cab be used by cited company.
2.3 Importance of stakeholder analysis (SA)
SA is an process of the evaluating a judgements effect on relevant parties. It is clearly
defining as a tool for a project and another activities (Butler, 2012). Without the use of this
business can not operates input of many persons. So this kind of people are known as a
stakeholder.
Importance of stakeholder analysis: There are several significance of SA which are follows
under this:
 Capable to use stakeholder opinions in order to developing and improving organisation
strategies.
 When the help of the powerful neutral, so it is main success of the VW AG which is
ensured.
 Capable to understand the stakeholder intentions.
 This analysis is very important to pre determine the neutral actions in a systematic
manner.
 This will also very significant in motivating employees, forming partnership,
corporatising citizenship and analysing marketing strategies (Elliot, 2011). Able to analysis persons reaction about their business operations.
There are some phase which is includes in this analysis which are as follows:
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Illustration 2: Stakeholder Analysis
(Sources: Stakeholders Grid, 2017)
1. First phase analysis the participation process which is used by VW AG Stakeholder in a
systematic manner. Who are acquire as well as involved in business operational are
known as stakeholder. This step highly effect on the customers, competitors and other in
order to achieve high productivity and profitability.
2. Second step is very essential to identify the stakeholder interest and influences in a
effective and efficiency manner (Firnkorn and Müller, 2012). In this way different
individual facility which is don by the business. In this they are significant because they
have high interest to make large amount of the efforts such as communication channels in
order to implement buyers satisfaction.
3. Last phase is evaluate to keep good understanding which is influence on the persons in
the organisation. This step have support and feedback due to clients, customers and other
stakeholder which are present in VW AG group.
2.4 New strategies for the VWAG
VW AG group ally the Porter's Generic strategies because its cost is very cheap, and
there is no frills airline (Porter's Generic Strategy Assignment Help, 2016). It is a more
expansive for the operators which give fantastic service as well as maximum level of comfort
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(Fox, 2012). This is also very essential and necessary for the every organisation to identify their
strength, weakness, treats and opportunities in systematic manner. It is mainly divided into four
parts which are as follows:
Cost leadership: It is very important and beneficial strategies of the company. VW AG should
ally this so they can gaining aggressive benefits (Ghezzi, 2013). It also develop the edge which is
necessary for the business to increase their sales from their challenger's. There are several way
in attaining this schemes by VW AG such as:
 Maximising revenues by decreasing costs, while pleading average price of the industry.
 Increasing share in market through charging minimum prices, while making reasonable
advantages. So in this, cars costs will be reduce in order to attract large number of the
buyers due to products.
(Source: New strategies of the VW AG, 2016)
Differentiation: With the use of this business should be needed good research, innovation and
development. The capability to supply high quality serves and products to their potential and
targets buyers.
Cost focus: Company should be focus on cost strategies because with the use of this business can
understood the dynamic market (Granados and Gupta, 2013). It is make the strong loyalty with
their buyers. It is make specific segregation which is minimum attractive to challenger's.
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Illustration 3: Potter's Generic strategy

Differentiation Focus: This will also very essential strategies of the Porter's. VW AG should try
to use this because with the utilization of this , different type of buyers highly attract and
purchase their products in easily.
TASK 3
3.1 Appropriateness of alternative strategies
There are several kinds of alternative strategies which is apply by VW AG in their
business, with the support of this company can increase their market share. These activities as
well as strategies which are as follows:
Substantive growth: With the use of this mentioned organisation expand their business activities
either horizontally as well as vertically for attracting maximum buyers (Haley and et. al., 2011).
From the same, an enterprise get other company to merge with their expanding firm in another
location. In order to maximising different activities and profit of the organisation, company can
grow their share. VW AG expand their industry by introducing the electronic car concept.
Limited growth: With the use of this cited organisation can use various tactics in order to
attaining set goals and targets. There are various concepts which is used by firm such as
innovation, penetration and new product development which is very beneficial for the company.
They introduce their limited growth in electronic car.
Retrenchment: It is one of the main method which is evaluate by the upper level management in
order to made effectiveness and profitability of each goods. Main benefits of this approach is to
save unnecessary cost of the enterprise. It is save by the VW AG group, the main purpose of this
in getting maximum benefits on investments. Basically retrenchment scheme which is classified
into three section such as cost & assets reduction and revenues generations.
Further more, Volkswagen group is use limited growth schemes in their business,
because they have 2 venture and investors in china (Ibrahim, 2015). It is very important for the
VW AG in increasing their car sales in order to achieve long as well as short term goals &
objectives in a systematic manner.
3.2 Selection strategy
According to the Johnson, which define three test such as suitability, acceptability and
feasibility etc. With the support of these test company can face to reduce unnecessary issues.
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Cited business use limited growth strategies in their business because , it is one of the important
and essential part of the every industry in order to maximise their product sales. It is suitable for
the VW AG for making quality and better product quality to use innovative technologies. It is
essential as well as necessary for enterprise to expand their business in other areas. With the use
of this they accept all issues and obstacles which is existence in the organisation. So they can
solve and reduce all unnecessary issues and conflict. With the assist of limited growth they also
increase their share and reduce unnecessary cost in market.
TASK 4
4.1 Responsibilities of individuals
Main duties of personal, it is important for the employees to achieve goals and objectives
of the organisation in order to attain high productivity & profitability. Several role and
responsibility of individual which can be determined under this:
Managers: They play essential role in formulating business strategies. Their role is not only
determine the resources which is needed for implementing schemes but all gather them (Klatt
and et. al., 2011). They play their role in recruiting and selecting talented candidates who have
experience in this field. In this process they develop different branning programme, which is
essential for the employees to increase their skills and knowledge. They use different kind of
incentive which is known as monetary as well as non-monetary system for motivating staffs.
Employees: Workers are also main part of the organisation because their implement the all
business strategies in an essential manner. Who are make raw material to finished goods process
is called as employees. The role and responsibility of workers to introduce all modification and
provide complete help to the company in order to achieve high productivity and profitability of
the organisation.
4.2 Requirement of resources for implementing strategies
Resources requirement which is very essential and necessary for the cited business to
implement all strategies. Minimum amount of the resources which generates unnecessary delays
as well as maximise business operation cost (Köseoglu and et. al., 2013). There are several
resources which is needed to implement strategies which are as follows:
Funds: It is one of the main resource which is required in implementation of strategy. Within
correct funds amount of VW AG can not formulate all strategies in a effective manner. For
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gathering proper amount of capital cited organisation can take loan from financial resources such
as bank.
Employees: These are important part of the enterprise to implement all activities in a systematic
way (Maté and et. al., 2012). Maximum number of talented workers are needed for formulate
strategy in order to achieving better output.
Fixed resources: Different technical resources such as building, furniture are needed to
formulate scheme in an efficiency and effective way.
4.3 Contribution of SMART objectives
The SMART objective of the company which can be determine under this:
Specific: Strategy implementation targets should be flexible or specific. Duties of all employees
which is determined fairly so that all confusion can be reduce from the workers mind as well as
boosting problems in order to reduce from workplace.
Measurable: All targets which will be measurable (Li and Tan, 2013). It means it rise the profits
from the organisation to measure targets. It support manager in determine the failure and success
of strategies. Volkswagen group target which will measurable and it can be maximise their sales
by 50%.
Acceptable: All targets of company which will set and it is acceptable in their nature. It define as
whole objective which will acceptable by the workers as well as add effectiveness in different
business activities. It is satisfactoriness of stakeholder it is needed for acquiring their help in the
strategy implementation process.
Relevant: It means each and every short term targets of the VW AG should add powerfulness to
the all organisation process. It will ensure the upper level managers that executing their projects
effectively. For example: Sale increase by 50 % in three months in relation with the business
financial performance.
Time bound: All targets of the cited business which is time bounded, it define a specific time
duration which should be set by handlers for fulfilling all task (Majchrzak and et. al., 2014).
This save firm valuable period as well as support in attaining business operations efficiency.
CONCLUSION
As per the above mentioned report, it can be determined the importance of business
strategies in the organisation. In this file different kind of tools and techniques are used in a
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systematic manner such as BCG matrix, Potter's Generic approach, SWOT & PESTEL analysis
of the company. These approaches are define the company position in marketplace and identify
the challenges of the company which are existence in same market. Mentioned firm use the
limited growth strategies in their business operations, the reason of choosing this method is
beneficial for achieving long term gaols and objectives as well as increasing their products such
as different variety in cars. SMART targets of the company which will be achievable,
measurable, relevant, time bounded and specific so that it is best advantage of the business in
grow other market. Funds, fixed and employees are important resources which is needed for the
company in improving their financial and other conditions.
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REFERENCES
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Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
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Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
and framework for IT-enabled business transformation. Mis quarterly. 35(1). pp.197-
236.
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
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Fox, V., 2012. Marketing in the Age of Google, Revised and Updated: Your Online Strategy IS
Your Business Strategy. John Wiley & Sons.
Ghezzi, A., 2013. Revisiting business strategy under discontinuity. Management Decision. 51(7).
pp.1326-1358.
Granados, N. and Gupta, A., 2013. Transparency strategy: Competing with information in a
digital world. MIS quarterly. 37(2).
Haley, G. T., Haley, U. C. and Tan, C., 2011. The Chinese Tao of business: The logic of
successful business strategy. John Wiley & Sons.
Ibrahim, A. B., 2015. Strategy types and small firms' performance an empirical investigation.
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Klatt, T., Schlaefke, M. and Moeller, K., 2011. Integrating business analytics into strategic
planning for better performance. Journal of business strategy. 32(6). pp.30-39.
Köseoglu, M. A. and et. al., 2013. Linkages among business strategy, uncertainty and
performance in the hospitality industry: Evidence from an emerging economy.
International Journal of Hospitality Management. 34. pp.81-91.
Li, Y. and Tan, C. H., 2013. Matching business strategy and CIO characteristics: The impact on
organizational performance. Journal of Business Research. 66(2). pp.248-259.
Majchrzak, A. and et. al., 2014. Computer-mediated inter-organizational knowledge-sharing:
Insights from a virtual team innovating using a collaborative tool.
Maté, A., Trujillo, J. and Mylopoulos, J., 2012, November. Conceptualizing and specifying key
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Porter's Generic Strategy Assignment Help. 2016. [Online]. Available Through:
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