Business Strategy Analysis & Planning

This assignment delves into the crucial elements of formulating effective business strategies. It guides students through various analytical tools like PESTLE analysis to understand external factors influencing a business, stakeholder mapping to identify key players and their interests, and Porter's Generic Strategies to define competitive advantages. The text also provides examples and resources for further exploration.

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategies positioning of business by carrying out an organisational audit......................1
2.2 Environment audit for a company....................................................................................3
2.4 New strategy for a company.............................................................................................6
TASK 3............................................................................................................................................7
3.1 Appropriateness of alternative strategies link to market entry.........................................7
3.2 Strategy selection..............................................................................................................8
TASK 4............................................................................................................................................8
4.1 Responsibilities and roles of personal that charged with implementation of strategy.....8
4.2 Estimated resources needed for implementation new strategy.........................................8
4.3 Contribution of SMART objectives.................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategy can be define as a plan of action which is designed in order to attain long term
goals and objectives in a systematic manner. It is also identified as a science and art of
marshalling & planning resources for their effective or efficient use (Business Strategy, 2017). It
is a process of developing the policies, plans as well as specifying mission, vision, goals,
objectives and values of organisation. It will sets attain all desired goals and targets which
describe long term planning of firm. It is concerned with main problems like boosting the finance
to build an innovative plan and factory. Strategies that are also controlled with determining
commodity which is allocate main resources (Agyapong and Boamah, 2013).
In this assessment chosen organisation is “Volkswagen Group” is a Auto industry
company in UK. They provide luxury cars to their potential and target customers. This report
describe core competencies, goals, mission and strategy positioning of the cited firm.
Environment and organisational audit as well as importance of shareholder analysis is analysed
in this file. There are various strategies in the market but company use only Substantive growth
schemes. An individual have many duties to charged implementation of scheme and at last
SMART objective of VW AG which is also determined in this assessment.
TASK 1
Covered in PPT
TASK 2
2.1 Strategy positioning of business by carrying out an organisational audit
Positioning of VW AG is define as the SWOT Analysis of company, it is very important
in identifying the internal environment, it includes Strengths, weakness, opportunities and threats
etc. With the help of this an organisation can find out their competitors which are present in same
market and also provide similar branded commodity to their clients.
Strengths Weaknesses
 The broad brand portfolio whole
automotive business. Like Audi, SEAT,
SKODA and SCANIA etc.
 Well-known products which is one of
 Main weakness of Volkswagen is
negative publicity off the all brand.
 Low share in U.S market automotive
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the big strength of the VW AG in order
to fulfil buyer’s satisfaction level.
 Innovative “TOGETHER- 2025”
STRATERGY.
 Diversification Schemes
 Natural process between brands
 Joint investors with general Chines
auto-makers.
 Develop innovative competence in their
car battery technology, autonomous
driving and digitalisation (Aithal,
2016).
 Maximises R&D outlay to multiple-
digit billion range.
place.
 Advanced recall rate in the UNITED
STATE market.
 No competence as well as little
expertise in making battery impelled
vehicles.
Opportunities Threats
 Fuel cost are expected to boost in near
future.
 Competence and acquire skills through
acquisitions.
 Demand and need for autonomous
vehicles.
 Weakening exchange rate in Euro.
 Focus on importantly developing
sustainability policies to curative
damaged reputation of brand.
 Technological products will be
increasing in order to give better
opportunities to the organisation to
expand their business in various
locations.
Intense competition
Further damages and fines that will be have to
give.
Maximising rules and regulation of
governments
There are different numbers of the competitors
which are provide same brand in existence
market.
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2.2 Environment audit for a company
 In a simple word, this techniques that can effect different kind of evaluations
supposed to determine management system and environmental compliance gaps
(PESTEL Analysis, 2017). It is also identify as an external factor of the business, this will
includes PESTLE Analysis such as political, environmental, social, economic,
technological and legal etc. With the use of this technique VW AG can be achieve long
as well as long term goals and objective in a specific time period. Political: With the use
of this tool business operating large number of the products in this market. In this way,
VW AG face different kind of issue due to political as well as legal in this enterprise.
Mentioned business is capable to follow various rules and regulation which is formed by
the government (Alsoboa and Aldehayyat, 2013). There are several ways the firm make
its care products more competitive for examples: Manufacturing different concern model
in Mexico to maximise costs.
 (Source: PESTLE Analysis of VW AG, 2016)Social: This factor includes different trends,
customer lifestyle and spending patterns which are present in similar area. Above all
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components which are highly influence by the customer purchasing behaviours. With the
use of this mentioned organisation maximise their sales due to new technology. Environmental: In during the day, all kind of the business are capable to use effective
strategies and activity, main purpose of this to make healthy environment for the
customers. So in this way each and every buyers are attract to purchase large products.
With the use of this an enterprise smoothly run in order to make friendlily surrounding
regarding to car products. Economic: This factor consider such as economic growth,
interest & inflation rate, monetary & unemployment policies, consumer confidences. In
sometime, lone rate of the bake which is create barrier in the expansion of business
because in during the day cited company provide maximum interest (Basili and et. al.,
2014). Technological: There are different elements which will includes in this like: new
developments and inventions, technological transfer rate, technological obsolescence
speed or life cycle, changes in car and information technology. In this component VW
AG can increase their sale as well as capture maximum market share. Company should
be use new technology in their business so it is very beneficial for them in increasing
buyer’s attraction largely.
 Legal: Employment laws, tax policies, competitions and safety regulation, these are
considers in this methods in order to decreasing all rules and regulation which is
influence on the company and its products largely. With the exercise of the VW AG can
achieve high productivity in a specific time duration. But sometime it case as issues i.e.
misunderstanding and conflict in the function as well as employees of the firm.
2.3 Significance of stakeholder analysis when formulating other strategy
SA (Stack holder analysis) is define as a project management, business administration
and conflict resolution. All are the process of assessing a judgements effect on relevant parties. It
is a part of management that analysis problem which consists of balancing and weighting whole
of the fulfilling demand.
Importance of SA: It is very essential for the business to achieve long as well as short
term goals and objectives in a short duration. There are several points that define it is very
important such as:
 To know Stakeholder better in different situation like: relative importance, interest and
power, improved managed relationships, uncertainty identified etc.
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 Make better decisions and strategies
 Greater acceptance of enterprise actions by neutral
 It is a systematic way to evaluating stakeholder interest and power
 It can support entrepreneur implement and formulate their investor through securing help
from powerful shareholder.
 SA supports with identification of potential risk and interests etc.
 With the help of this tool VW AG can achieve high productivity and profitability in a
systematic manner. It is also very important in motivating different kind of persons and analysing selling
strategies.
Stakeholder analysis includes several steps which are as follows:
 Step 1: It is analysis the activity of all participation, it is used by Volkswagen group in
their business operations (Bozkurt and Kalkan, 2014). This phase will be influence on the
challenger's, buyers in order to increase profitability of the mentioned organisation.
Illustration 2: Stakeholder Analysis
(Sources: Stakeholders Grid, 2017)
 Step 2: This is a very important and necessary factor of the company as well as individual
to determine interest. It also influence on the business activity in an effectively and
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efficiently. With the use of this all activities of the company which will be complete by
an individual in a systematic manner. The reason of it is essential because they have more
interest to build maximum efforts amount such as promotional mix, it is very important to
attract large number of the potential and target buyers due to car products.
 Phase 3: It is define as a last step which is also effects on individual to evaluate better
training programmes in order to increase their skills and knowledgable in systematic
manner (Campling, 2012). VW AG group expand their business so they required
talented and experienced candidates who experience in this field and who can be achieve
long as well as short term goals and objectives in a specific time period.
2.4 New strategy for a company
New strategy which is very necessary and important part of every business in order to
grow and success in the organisation. VW AG group apply Porter's Generic strategies in their
business. This method is describe how an enterprise pursuer aggressive benefits across is
selected market. It includes three as well as four elements such as generic strategies along lower
cost, focus and differentiated etc. The main reason of mentioned company is selecting this
strategy is, its price is very low and there is never frills airline (Porter's Generic Strategy
Assignment Help, 2015). It provides fantastic and useful services and increase comfort level of
the company in a systematic way. It is important for the Volkswagen to identify their SWOT
analysis in an effective and efficient manner. It is divided into four parts which are as follows:
Cost leadership: It is essential as well as useful strategies of the VW AG to increase
their productivity and profitability level. Mentioned business follow this in order to gaining
different competitors advantages. It improve the all edge which is required for the organisation in
maximise their product sales from their contenders (Del Río and et. al., 2011). Why company
adopt this strategy so there are some reason which are as follows:
 It reduce the cost and increase profit of the Volkswagen group. Maximising market share due to modifying less price, it is beneficial for the firm in
making reasonable benefits.
Differentiation: In this way cited company should be required better development,
innovation and investigation etc. VW AG is capable to supply large product quality to their
clients in an essential manner.
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Cost focus: Cited organisation may be focused on this strategy because it is identify the
market need and demands as well as nature such as dynamic. It will makes powerful loyalty
with their audience. It also it will also make segregation which is attractive large number of the
competitors (Firnkorn and Müller, 2012).
Differentiation Focus: It is another porter's strategy which is very beneficial for the
enterprise to attract large number of the buyers to buy their commodity in easily.
TASK 3
3.1 Appropriateness of alternative strategies link to market entry
There are different type of alternative strategies that is use of Volkswagen in their
company. With the use of this schemes an organisation can maximise their profitability and share
in market. Under this activities are as defined: Sustainability Growth: It is defined as a growth rate which can be sustained without
generating another important economic issues, particularly for future generation. It give
help to VW AG to expand their company either vertically & horizontally in order to
attracting different clients. Business gets another organisation to integrate with their
expanding industry in different areas. This strategy is very beneficial for the mentioned
firm because with the use of this, they can increase profit and share in marketplace
(Godlevskaja, van Iwaarden and van der Wiele, 2011). They introducing their new
concept such as car features in business operations. Limited Growth (LG): In this company use different kind of tactics to achieving long
term targets. There are several components such as new product development (NPD),
penetration and innovation which is used VW AG because it is very useful as well as
beneficial for business. They highly present their LG in electronic car.
 Retrenchment: This method is analysed by the manager of top level to made
profitability, productivity and effectiveness of every products. One of the main advantage
of this is to save unneeded price of the firm. Main aim of this is to achieving large
number of advantages on investments. Essentially it is divided into 3 part i.e. cost
reduction, revenue generation and asset reduction (Houdet, Trommetter and Weber,
2012).
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After that, cited company use to apply limited growth strategy in their organisation.
Volkswagen group have 2 investor in China. It is very beneficial scheme for the VW AG in order
to maximise their product sale as well as attain objectives and goals in short time period.
3.2 Strategy selection
As per the Johnson, they define different kind of strategies and their test such as
acceptability, suitability and feasibility. With the use of this VW AG group can decrease all
unnecessary cost and problems which are existence in this business. Mentioned company usage
limited growth scheme because it is very important and useful of the firm in order to achieving
long term goal and objectives in a specific time period. It is very significant part of the firm in
maximise their sales in a suitable manner (Kernbach, Eppler and Bresciani, 2015). Company use
this strategies in their business operations which is very beneficial for both organisation and their
employees in achieve personal and professional objectives. It is also essential in reducing
unnecessary cost ad resource which are effected on business environment.
TASK 4
4.1 Responsibilities and roles of personnel who are charged with implementation of strategy
Main role and responsibility of the individual which is very essential for the organisation
and employees to attain long as well as short term goals and objectives in a short duration.
Proper duty of the manger can be increase high productivity and profitability in an essential
manner. There are some role of workers and managers which are as follows: Managers: They play significant role in strategies formulation. They are very important
person in organisation to manage, control and monitor all activity. They have capability
to analysis different activities which is beneficial for the organisation to increase product
sale and achieve large profit in an effective and efficient manner (Killing, 2012). VW AG
have different kind of managers one is human resource , they also play essential role in
recruiting and selecting skilled and talented candidates who have experience in this filed
and gain long term objectives.
 Employees: They are main assets of the organisation which play significant role in
reducing all unnecessary cost and resources. They implement as well as formulated all
business strategies with the use of new technology. This person is responsible to make
natural material to last goods activity is known as workers. The duty of this people to
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determined whole changes as well as give support to the Volkswagen to attain profit at
large level.
4.2 Estimated resources needed for implementation new strategy
 It is very essential for the VW AG to have necessary resources so it can be
operate different practices and activities. Without them, an enterprise cannot evaluate its
desired objectives and goals. In other words, cited firm can lead growth and success in
higher level. So there are enough capital and workers, both are main factors of the
organisation which support in operating different kind of activities in an essential way
(Li, Zhou and Si, 2010). These components are determined under this which are as
follows:
 Capital : It is one of the main and necessary resources which is needed in by the mention
industry to grow and success in a systematic manner. With the support of appropriate
fund and capital an organisation can achieve high profitability and productivity in a
systematic manner.
 Building and land: Before establishing an attractive and impressive an enterprise required
to purchase impressive and correct location in order to fulfil buyers satisfaction.
 Raw material Qualitative materials which is very necessary for manufacturing goods.
From the same, indispensable part of business because it pay critical role in sustaining
finished and final commodity for several user on their preferences and taste.
 Financial Resources: To operate organisation practices and activities in daily bases so
that needs of the manger correct sources of fund and capital. There are several source
such as loans, events, borrow money, government assistance from their families and
relatives. These are appropriate source of financial which is needed of each and every
organisation.
 Human resource: It is very important factor which is highly required for the VW AG
because this company expand their business. In this they needed skilled and
knowledgeable candidates who can achieve high productivity and profitability. From the
same, company can provide different training and development programs to their
employees so in this they attend this and increase their skills. It is role of the manger to
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motivate as well as trained their workers to get success of the enterprise (London and
Hart, 2010). Without the support of this, VW AG cannot be implement as well as
formulated business strategies.
4.3 Contribution of SMART objectives
SMART objectives are very essential for all organisation to set their targets in a essential
manner. This values are successful in order to achieve long term targets in an effective and
efficiency manner. These are can be set whole business areas such as marketing, finance and
production etc. It can be includes i.e. measurable, achievable, realistic, time and specific etc.
 Specific: Targets of strategy formulation which should be specific. In this way, role of
every workers that is identified fairly. With the help of this entire disorder can be
decrease in the mind of employees. It will also boosting all issues from the workplace
(Markus and Loebbecke, 2013). in 2007, mentioned company maximised the vehicles
numbers which is derived to buyers to 6.189 million. It is define the specific targets to
attain profitability in a specific time duration.
 Measurable: VW AG Company all objectives are measurable in a systematic manner. It
defines all organisation profit that will be rise with the use of set objectives. It will highly
help manager to identify strategies success and failure. Volkswagen targets that will be
measurable, it means their sale evaluate by 50%. company provides 48 production flora
in 13 countries but there are mainly there sates such as Asia, Americas, Africa and others.
There are 360000 employees in all around the world. With the help of workers they can
measure all projects in a smart manner.
 Achievable: Company can achieve their all targets which will be set. So in this all targets
are achievable by the employees. It also includes all effectiveness in different activities of
the business. It is stakeholder satisfactoriness as well as required for acquiring support in
process of strategy implementation. In year 2017, Volkswagen can achieve high
productivity and profitability in order to maintain employees relation.
 Realistic: It define as short term objectives of Volkswagen group that should be add
quality to the all activity of organisation. This is check by the manager of top level that
evaluating their all project in a realistic manner (Matt, Hess and Benlian, 2015). For
example: During the three months, sales of the VW AG which will be maximise up to
fifty percent with the relation of financial performance of company.
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 Time: Targets of the VW AG will be time bounded, that means it should be define as a
specific period. It is set by company manager for fulfilling each and every task in a
systematic manner. It is save the valuable time of the industry with the help of business
operation. In day to day company grow as well as success at large level.

CONCLUSION
As per the above information, it can be determined the business strategies which is a
process of achieving long term goals and objectives in a short duration. In this report different
tools and techniques are used in a systematic manner which is important for the cited company to
attain productivity and profitability. Methods are Environment & Organisational audit,
Sustainability strategies, SMART objectives, HR & Financial resources which will apply to use
by VW AG in their business operations. Stakeholder analysis, porter's generic strategy and their
importance which is also used company in their business operations. Core competence, goals,
objectives, vision & mission which is significance for each and every organisation to analysis
their position in the market with the use of them. BCG matrix that define the share of the
company in marketplace such as low as well as high. It is very essential for the firm to increase
their market share in an effectively.
REFERENCES
Books and Journals
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London, T. and Hart, S. L., 2010. Next generation business strategies for the base of the
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