Business Strategy of Volkswagen Group
Added on 2020-10-04
13 Pages4173 Words42 Views
Business Strategy
Table of ContentsINTRODCUTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Role of business missions, visions, objectives, goals and core competencies in formationof strategic plans ........................................................................................................................11.2 Factors which are needed to be considered in formation of strategic plan...........................11.3 Effectiveness of techniques at the time of development of strategic business plans...........1TASK 2............................................................................................................................................12.1 Organisational audit of Volkswagen group...........................................................................12.2 Environmental audit of Volkswagen group..........................................................................32.3 Significance of stakeholder analysis.....................................................................................42.4 New strategy for Volkswagen group.....................................................................................53.1 Appropriateness of alternative strategies..............................................................................53.2 Selection and justification of a strategy...............................................................................74.1 Roles and responsibilities of personnel who are charged for strategy implementation........74.2 Resources needed for implementing new strategy................................................................84.3 Contribution of SMART targets for strategy implementation..............................................8CONCLUSION ...........................................................................................................................9REFERENCES..............................................................................................................................10.......................................................................................................................................................11
INTRODCUTIONEvert organisation has some mission and vision which they want to achieve in set periodof time. Business strategy is summary which relates to various plan which help an company inattaining top spot in operating industry. This report will discuss about role of core competenciesand goals in formation of strategic plan. Some important factors and effective techniques forbusiness planning will also become part of this file. This assignment also include case of VWEmission scandal which made huge impact on position and valuation of Volkswagen group. Thisproject will cover environmental audit and significance of stakeholders. It will also discuss aboutstrategies for entering a new market. Estimation of required resources and SMART targets willalso become part of this file. Volkswagen is leading a company of automotive industry they haveapproximately 340 subsidiary companies and they are operating in more than 150 countries. TASK 11.1 Role of business missions, visions, objectives, goals and core competencies in formation ofstrategic plans Covered in PPT.1.2 Factors which are needed to be considered in formation of strategic planCovered in PPT.1.3 Effectiveness of techniques at the time of development of strategic business plansCovered in PPT.TASK 22.1 Organisational audit of Volkswagen groupCited organisation holds top spot in automotive industry. They are targetting 10 millionsale of vehicle every year in order to maintain their dominance in this sector (Agyapong andBoamah, 2013). They have resources for this targets but at the same time they also have to facesome serious challenges. Below is the SWOT analyse in order to determine strategic marketposition of cited organisation:Strengths No other company in auto-mobile sector has such a wide brand portfolio which thisenterprise have.1
They are one of the oldest manufacturer of cars, people trust them because they are usingtheir products from a long period of time. They have high goodwill. Their research and development wing is performing beyond expectation. They are doingwork in efficient automation. They are also making future vehicles which will help themin maintaining their top spot in upcoming time (Aithal, 2016). China is one of the fastest growing economy, cited organisation has almost 20% marketshare in this region. WeaknessesTheir do not has strong presence in emerging market except China.They are manufacturing many products which are not environmental friendly. Nowadayspeople are aware of various issues relating to environment so they are not buying thesevehicles. Some of their brands like Bugatti, Porsche, etc. are release high amount ofCarbon dioxide and they are fuel inefficient. OpportunitiesThey can increase their investments in emerging markets like Brazil, India. According tosome experts these economies will play crucial role in success or failure of anorganisation in upcoming time because they have capacity to generate high revenue(Alsoboa and Aldehayyat, 2013). They have strong research and development development department, they can improveuse them in order to make products which can be run by electricity. This will give themsome extra edge on their competitors.ThreatsCited organisation was planning to invest huge amount on electric and hybrid cars. Dueto high fluctuation in price and less of fuel, their strategic planning is moving in a wrongdirection. Their competitors like Toyota, GM are getting more and more strong. They are enteringin developing economies, this move is given them an appropriate head start. New and domestic players like Tesla have capacity to make a big hole in their pocket.They have to make proper strategies in order to face these emerging threats (Ang, 2011). 2
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