Business Strategy Planning - Volkswagen
Assessment on understanding the process of strategic planning and formulating a new strategy for a given organization.
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Added on 2020-01-28
Business Strategy Planning - Volkswagen
Assessment on understanding the process of strategic planning and formulating a new strategy for a given organization.
Added on 2020-01-28
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BUSINESS STRATEGY
Table of ContentsBUSINESS STRATEGY.................................................................................................................1Introduction......................................................................................................................................3TASK1.............................................................................................................................................3To be covered in power point presentation.................................................................................3TASK2.............................................................................................................................................32.1) Strategic positioning of VW AG by organisational audit....................................................32.2) Environmental audit for WV AG.........................................................................................42.3) Assess the significance of the stakeholders analysis when formulating new strategy........52.4) New strategy for VW AG....................................................................................................6TASK3.............................................................................................................................................63.1) Analyse the appropriateness of alternative strategies relating to market entry, substantivegrowth, limited growth or retrenchment for VW AG.................................................................63.2) Justify selection strategy......................................................................................................7TASK4.............................................................................................................................................74.1) Roles and the responsibility of personnel who are charged with strategy implementation.74.2) Analyse the estimated resources requirements for implementing a new st6rategy for VWAG...............................................................................................................................................84.3)Contribution of SMART targets to the achievement of the strategy implementation in WVAG...............................................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES .............................................................................................................................10
IntroductionStrategy is the most important element in running any of the business. It is the plan of themanagement which helps the organisation to grow and to increase the performance. Strategicplanning helps the organisation to attain the objectives and the goals effectively.There are some factors on considering them the organisation carry out all the activities.These factors can affect the functioning of the firm positively as well as negatively. So to copeup with these factors the firm must do strategic planning. It help to make a foundation on whichthe firm carry out its whole working (Acquaah., 2011.).TASK1To be covered in power point presentation.TASK22.1) Strategic positioning of VW AG by organisational audit.Organisational auditing is a tools through which the firm can be able to assess the internalfactors of the organisation.Strength- Volkswagen has the widest portfolio of the brands among all the industries ofauto mobiles. There are no rivals in the market who has this ranges of brand portfolio intheir management. Volkswagen has introduced new strategy to cope up the scandalemission. The difference in the range of the brands the firm can able to target thedifferent group of the customers. It has the best geographical diversified income amongall the companies of this industry. No market has yet generated more than 20% of theVolkswagen's revenue. Weaknesses- The worse part is its negative publicity, it is very badly hampering thefunctioning of the brand. It was found stuck in the scandal (Bharadwaj and et. al., 2013.).It was found that the firm is installing software codes in the vehicle run by diesel. Due towhich such things were emitted which can be injurious to the health of the people. Thefirm has many drawbacks in its product with which it has to recall many of its productfrom many parts of the world. It also received many criticism because of the action that itdid.
Opportunities- It has many opportunities that can help it to overcome the situations thatit has faced. It is expected that the prices of the fuels can be raised in the future. With thelow prices of the fuel the demand for large vehicles has increased. Volkswagen mostlydeals in the smaller vehicle range in case the prices of the fuel rises then too the demanddoes not get affected for the vehicles of Volkswagen. The firm is trying to do effort to bein the market by offering the benefits that can overcome the loss got by the scandal ofemission. To develop the competencies the firm has to acquire small start ups.Acquisition is a costly task but the current rate is comparatively less so the firm can gofor this opportunity (Casadesus-Masanell and Ricart., 2010.).Threats- The competition is very high as the market is very big hence new players areentering into the market and they are trying to tap the untapped market which becomes aproblem and the customers are switching from one to another.2.2) Environmental audit for WV AGEnvironmental audit is the tool by which the firm can know the external factors that canbe complied with the functioning of the firm so that the effective strategic plan can beformulated. For the objective of knowing the external factor PESTLE study can be carried out.1.P (Political environment)- Volkswagen if deals in the domestic market then easily it canhandle the situations but going further the firm might face tough competition. But if thefirm will cross the boundaries and trade outside the country's boarder then the challengescan become an opportunity as because it can be able to tap the market which no one hasyet worked on.2.E(Economical environment)- This factor of environment can affect in the formulation ofthe strategic plan as because the PPP( purchasing power parity) of the customer is themajor aspect. The firm deals in the auto mobile industry ans the prices are in high rangeshence it can affect the demand (Chen and et. al., 2012.).3.S(Social environment)- Society is now very conscious towards the brands of the productwhich they uses therefore the buying behaviour of the customers has changes.4.T(Technological environment)- The technology is getting better in today's market. Everyday advanced technology has been introduced in the market. It is very must that the firmshould follow the trends of the market.
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