Business Strategy Analysis and Implementation

The assignment requires analyzing the concept of business strategy, its significance in achieving competitive advantage, and its implementation through effective strategies. The document references relevant books, journals, and online sources to provide a comprehensive understanding of business strategy. It is essential for students to understand how business strategy can be applied to improve firm performance and achieve success in the market.

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
(1.1) Strategic planning..........................................................................................................3
(1.2) Factors considered while making a plan .......................................................................4
(1.3) BCG Growth matrix ......................................................................................................5
M1 Vision and mission of company ......................................................................................5
M 2 learning techniques at an organisation............................................................................5
TASK 2............................................................................................................................................6
(2.1) SWOT analysis of VWG..............................................................................................6
(2.2) PESTLE Analysis of VW Company..............................................................................7
(2.3) Influence of stakeholders in formulating strategies.......................................................7
(2.4) Strategies for growth......................................................................................................8
(3.1) Analyzing growth strategies for organization..............................................................9
(3.2) Selecting effective strategy for organization...............................................................10
(4.1) Roles and responsibilities of personnel in implementing strategies............................10
(4.2) Resources required for implementing a new strategy in VW......................................10
(4.3) Contribution of SMART in implementing a strategy:................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy basically refers to plan that is made by the top management in order to
make business more successful than others in the market. Business strategy ensures the growth
and expansion of the company if it is made properly to achieve the goals and objective on time.
Strategy made by the company clarifies all the steps that has to be followed by each and every
employees as it involves what should be done and in what manner so that they can achieve an
efficiency and will be able to retain in the market for longer period by earning more profit than
others. Strategies are made by the according to the need of the situation as for every different
situation there are different strategies are made.
TASK 1
(1.1) Strategic planning
Mission : Mission refers to the planning that is made by the company so that they can handle all
the uncertain factors that are uncontrollable in nature with a proper back up plan. The company
can achieve its goals and objective on time only if they follow the steps that are mentioned in it
(Woodcoc, Green and Starkey., 2011) . The Dragon den is a TV show of the entrepreneur that is
telecast on the BBC channel and they have mission to attract more viewers and entrepreneurs
for their show.
Vision : Vision is refers to the ability to see but in the business it refers to pre analysation that is
done by the company to avoid all the threats that may affect the business in all the way possible.
Pre analysation of all the factors will help the company to take the corrective measures on time.
BBC is news channels as it has the clear vision to achieve the success with the position by
proving their efficiency in each sand every task that is performed by them.
Objectives : Objectives are the part of the planning as to make a plan there has to be a proper
objective behind them. This translate the process into action as this clarifies the purpose behind
setting up a business and helps in identifying the necessary actions that should be taken by the
company to achieve its goals (Verbeke., 2013) . BBC has a clear objective to promote it shows as
this is very important for them if the want to retain in the market and achieve the goal on time.
Goals : Goals refers to the target that has to achieved by the company if they really want to retain
in the market and earn more profit. Goals determines the desire of the company as what it want

to do and in what time. This decides the future of the company in the market. BBC has clear goal
to promote its shoes so that they can retain in the industry and will be able to earn more profit.
Core Competencies : Core competencies defines the level of competition in the market So
companies make effective strategies to survive in the market and compete with competitors.
BBC has many competitors in the industry and to fight with them they needs the proper and
strong strategy so that they can defeat them.
(1.2) Factors considered while making a plan
There are many factors that are considered while making a plan as these factors will help
the company to achieve the efficiencies in their operations. These factors analyse the business
environment for the company. Some considered factors are as follows :
Competitive Strategy : This strategy is made by the company to analyse all the factors of the
competitors so that they can make more efficient strategy to retain in the market for longer
period in a better position than others and earn more profits (Meskendahl., 2010) . Competitive
strategy will help the company to rectify their mistake if there is any in the current strategy that
they have applied in the operations to achieve the goals. BBC makes the competitive strategy for
the Dragon den as it is their responsibility to analyse all the factors that may affect their business
to the core. Through this they analyse all the factors that are affecting or may affect them so that
they can take the corrective measures according to the needs and the requirement of the situation.
Chang in consumer behaviour : This is one of the most important factor that is considered while
making a plan as it very important for the company to know the choices and the preferences of
the customers as they are the one who helps the company in its upliftment (Astrachan., 2010) .
The company should make or design the product according to the needs and the demand of the
customers. For BBC the customers are the viewers who watch their programmes and promotes in
the best way possible. They give full priority to their viewers as they bring the TRP for their
shows and help them in go for a long term. They full fill the demand of the viewers to make the
good position in the industry.
Economic condition : This factor is considered in the plan as this is the condition that related to
the economies This factors deeply affects the business as it includes all the terms that are
important for the business. This factors include demand and supply along with the products as
they are the former points that are firstly considered in the business. BBC is a news channel that's
why it limits its supply according to the demand of the customers.

(1.3) BCG Growth matrix
BCG growth matrix refers to the model that is given by the former in order to calculate
the market share and the growth rate of the companies in the market. The four categories of this
are as follows :
Dogs : Dogs category of this matrix determines the company who have low market share and
growth rate in the market. The companies of these categories are unable to generate mare cash as
they have very limited resources and opportunities in the market.
Question marks : This category of this matrix includes those companies who are growing rapidly
in he markets as they consume very huge amount of cash (Teece., 2010) . They are unable to
generate as much as they are consuming cash in the market.
Stars : These types of a company have very high market share as they generate more cash than
others in the market. They also consume very huge amount of cash as the work done by them is
of high level. BBC consumes as much as they generate along with the very high market share in
the industry as they are efficient in their work and working on the remaining factor.
Cash cows : These act as a leader in the market as they have al the power and authority in the
market. They generate the cash more than they consume as they can make their moves according
to their choice in the market.
M1 Vision and mission of company
Vision and mission of company are inter related with each other. By achieving mission, the
vision of company is automatically achieved.
Vision- BBC wants to be a successful TV news channel. Also, providing effective news to the
public by following their core values.
Mission- BBC wants to promote their show through entrepreneurs so that it can gain more TRP
through it. Also, it can have
M 2 learning techniques at an organisation
It is stated above that business plan is based on how strategies are developed to achieve goals
and objectives. The techniques used by organisation are:-
Market condition- It refers to analysing situation of market so that effective plans can be made.

Past data- It is related with past plans and strategies that are been implemented by business to
achieve goals and objectives.
Competitors strategy- By observing competitors strategy it becomes easy for organisation to
develop plans and strategy.
TASK 2
(2.1) SWOT analysis of VWG.
Internal and external environment plays an important role in determining organisation
position in the industry. Internal shows strength, weaknesses, threats and opportunities available
in the market. Here, organization audit has taken with reference to Volkswagen Company.
 Strength (S)-
It can be analyzed that the strength of VW Company is that it is largest automotive
company, which operates worldwide. It has immense customer base and its brand image
is very famous. Customer relies on it and as a result, it achieves its goals in effective way.
 Weaknesses (W)-
It has very high range of prices of cars. It is main weakness of VW as its cars are high of
prices as compare of its competitors. It should lower down its prices so that it may
achieve more customers by attracting them with low prices and which in turn provides
more profits in effectual manner (Scholes, 2015).
 Threats (T)-
The case of cheating of emission test has led a threat to company. This should be solved
by company to recreate its brand image, which has spoiled it in bad manner. It should not
cheat its customers by violating environmental laws and imparting pollution in the
country. In addition, it should be make effective strategies to go ahead of its competitors.
 Opportunities (O)-
Market segment should be expanded by it so that it may earn more profits. This will
broaden its customer base by expanding its business. By expanding the target market
segment, it may exploit the markets, which are not yet discovered by it. It will provide
customers and will led to more profits.
(2.2) PESTLE Analysis of VW Company
POLITICAL : These factors which is determined to extent where the government can influence
the VW economy. It means if government change the price and value of tax and duties then the

structure of the VW can be change according to the market conditions. Political factors are Fiscal
policy, tax policy, trade and tariffs.
ECONOMIC : The factors of an economy determines the performance of economy which will
directly impact on the VW organisation with long terms (Teece., 2010) . If the economy rates
changes then the price of products and services of VW will also change accordingly. It will also
affect the power of customers purchasing and also give an effect demand and supply.
SOCIAL : The social factors are those which are the elements of market such as market
environment, cultural trends, population and demographic. In the session of holidays, the
customer power is on top level and they purchase more items from any organisation or VW. This
also produce the demand power.
TECHNOLOGICAL :This kind of factors are those which change the technology innovations
with available options in technologies which impact on the techniques of VW. This can be refer
to the research, development and the automation of any amount of technological awareness
which a market have.
LEGAL: It is kind of factors affect the VW organisation in both terms internal and external.
There are few laws which affect the organisations' environment (ThAstrachan, J.H., 2010). It
might be depend on the certain country laws or policies of the VW organisation. The legal
analysis depends on the legalisation such as safety, consumer and labour laws of VW
organisation.
ENVIRONMENTAL :This environmental factors are determined by the surrounding
environment of VW organisation. The aspect of the pestle is necessary for the VW organisation
such as farming, tourism and agriculture etc. VW environment analysis includes global changes,
environmental factors and geographical location of VW organisation.
(2.3) Influence of stakeholders in formulating strategies
Stakeholders are an important element in every business. As such, while formulating new
strategy stakeholders analysis is very necessary. It is also called stakeholder mapping as it
understands the role of them while formulating strategy. For formulating strategy, VW has to
convince them effectively so that new strategy may be formulated and implemented by it.
VW should understand that it works with the concern of its stakeholders and consent of
them is needed at every stage so that they may be satisfied. Another significance of SWOT is

finding opportunities for growth. without employees goals and objectives of organization can not
be achieved The potential of workers helps company to accomplish its set targets in effective
manner.
Another importance of stakeholders analysis is that firm may identify needs and demands
of customers. The market is carefully analyzed with the help of this anlaysis.t makes easy to
assess the demands of customers in totality (Leonidou and et.al, 2015). With the help of
stakeholders effective strategies can be developed which will attract new customers. Legal
policies regarding various laws and regulations may be easily identified with the help of this
analysis. As such, it is very helpful technique that is used by organization to maintain its growth
my making new and competitive strategies. VW effectively uses this analysis as a part of its new
formulation of strategy.
Customers- They are the people for whom the product is been made. Any change in their taste
and preference will affect Volkswagen strategy in developing product.
Suppliers- They provide raw materials to company and are responsible for delivering finished
goods to customers. Change in supplier policy will affect Volkswagen in production of goods
and fulfilling demands of consumers.
Employees- They are known as work force of company as they perform task to accomplish goals
and objectives. They are the most important element of organization as without them it is not
possible to achieve mission.
(2.4) Strategies for growth
For proposing new strategy, Ansoff matrix may be utilized for developing strategy for
VW Company. New strategy for VW Company is to market development and product
development so that it may reach out to more customers and its sales may increase at large.
Market development is necessary so that it may capture the customer effectively which will
improve upon the profits (Sia, Soh and Weill, 2016). In addition, product development is vital as
it is required that technology should be used by it and no outdated techniques may be used in
manufacturing of cars.
Another strategy may be used with the reference to Porter generics strategies suggest
product development, which will be beneficial for VW. In this product development firm may
introduce new and fresh feature in cars so that customers may attracted with that feature and
sales of company may be effectively injected with more profits. VW has high competition from

rivals as such; differentiation may be helpful to capture more customers by expanding their base.
It helps to surpass rivals and unique branding can be established. It provides VW to inject sales
as differentiation strategy may be helpful as it provides new innovation to company in effectual
manner. This strategy may be useful to company as provides an competitive edge to company in
comparison to rivals. Most important part of differentiation strategy is that product development
is achieved eventually which leads to more enhanced profits to firm.
(3.1) Analyzing growth strategies for organization
Growth strategies are beneficial for company to expand and develop in different
situations. These strategies is helpful then earlier strategies as firm can adopt it as and when
uneven situations arise in company. Market strategy is useful for organization to expand its
customer base in effective manner so that new customers are attracted by it for more revenue.
The strategies for marketing entry are joint ventures, merger and acquisition etc.
Stability in growth can be done by using diversification strategies. VW can manufacture
materials on itself and do not purchase from suppliers (Boone and et.al, 2017). This will help it
to have growth. Stability in growth has a direct relationship with company operations. By cutting
the cost of manufacturing, it may flourish in the effective manner. Limited growth is adopted by
company in complex business situations as when it is suffering loss or losing market share and
low profitability. Limited growth strategy is followed in case of market and product
development. The major use of this strategy is to understand clearly the market trend.
Retrenchment strategy may be used by organization when it is facing no increment in
sales such that when goods are not performing well in the market, then it may draw them out to
manage the resources (Madsen, 2016). It helps to meeting out expectations of customers.
Company may adopt the divestment, liquidation and turnaround strategies. This will help to
effectively utilize its resources and to fulfill needs of customers and their preferences are
carefully analyzed. As such, these alternative strategies are helpful to firm.
(3.2) Selecting effective strategy for organization
VW Company has been good in revenue generation as it has well reputation in the
market. However, as per the case study, it has cheated the consumers as emission tests were not
applied. As such, it needs a well structured strategy to cover its reputation which is lost because
of this act. Their growth is tremendous but as not as expected as it needs to relook at its business

decisions. Here, justification is made about growth limited strategy where it includes product
development.. With these strategies, customers needs are identified and fulfilled.
This limited growth strategy helps company to resolve its current issues so that more
focus may be made and firm can enhance its productivity. This may be justified, as company
needs modern advancements so that it may strengthen its position. Moreover, the element of
differentiation strategy also plays a prominent role as goods may be distinguished properly. The
perfect blend of differentiation strategy and limited growth strategy may be aligned and company
may be able to create value of its goods. This strategy may help company to flourish in effectual
manner (Agrawal, 2016). The limited growth strategy helps company to focus its business so that
certain modifications may be inculcated and thus, strategy may be implemented by it in effective
way.
(4.1) Roles and responsibilities of personnel in implementing strategies
Personnel management plays a crucial role in implementing strategies . They are responsible for
communicating what changes have occurred within the organisation and how to adopt them.
Employees should know about change in strategies so that they can work accordingly. It will
help them to achieve goals and objectives. (Fontana, Sastre-Merino and Baca, 2017). In an
organisation, every department is important in developing of business s strategies. Therefore, any
change in business strategy has to be communicated within overall organisation. The top
management is responsible for implementing change in strategies and communicating it to
managers of Volkswagen. It will create new objectives and goals and change in processes.
(4.2) Resources required for implementing a new strategy in VW
1. Raw material:
These are the basic resources that is required to produce cars according to customers needs.
With proper raw material, the VW can produce new auto mobiles in the industry. Thus, raw
materials should be enough to implement strategy. Moreover, its quality should be maintained in
order to fulfil demands of high class customers.
2. Advanced technology:
It involves using new equipments and resources in production process to reduce the sot
per unit. It will be useful in increasing profits and improving the quality of product. As cars are

very complex to produce so technology plays an important role to fix each component in right
place. (Fiorino and Bhan, 2016). a lot of research should be done to include technology in
production process.
3. Finance:
It is the most essential element that is required to implement new strategy. The availability of
finance depends upon VW profits and its financial position. Strategy can only be implemented if
VW is capable enough to have strong source of finance. (Akter and et.al, 2016). Further, these
resources are required so that effective functioning and working of business may be done.
4. Human resources:
It relates to man power that is required to perform task to achieve goals and objectives. They are
base for VW as they help in accomplishing goals through effective implementation of strategy. .
(4.3) Contribution of SMART in implementing a strategy:
They are parameters that is used to measure the performance of organisation. They provide
direction to goals of company that has to be achieved. It helps and guides company so that its
objectives may be achieved in effectual manner. It is as follows:-
‘S’ stands for specific that means short term profits should be made to gain market share. VW
focuses on increasing market share so that it may provide luxurious cars to its customers at
large. Specific targets are met when company has identified targeted or homogeneous group.
This helps it to exploit the market and as such, customers are focused which becomes their
ultimate targets. As such, customers purchase according to their preferences (SMART goals,
2016).
M stands for measurable which states that company must measured its goals with some certain
parameters that are set in numerical way. This makes it effective in measuring its target. This
also helps company to measure it’s certain parameter related to [profit and as such, measurable
targets are set by it for its efficiency.
‘A’ stands for achievable that means targets set should be achievable. This makes it effective to
work in dynamic environment and it may achieve its stated goals in effectual manner.

R’ stands for realistic that means targets set should be achievable in near future. It is not like that
targets set seems to be impossible to achieve. It has made its target in real world by
implementing set targets which are achievable in realistic world.
‘T’ stands for time bound which shows targets must be achieved in specific time frame. Time
frame refers to time mentioned in strategy to achieve goals. It is achieved by firm within
stipulated time all of its objectives.
CONCLUSION
Hereby it can be concluded that organization is required to formulate the strategy in that
manner which provides it with effective profits. The strategies may be formulated as per as the
competitive strategies so that it may go ahead of its rivals. Implementation of well-structured
strategy is important so that customers may be lured to buy goods of company. This will provide
satisfaction to consumers and as a result, profits may be earned by organization in effective way.
This report throws light on various strategies that are implemented and followed in VW. How
these strategies will help VW in growth and development. Moreover, it shows that how product
development in VW will be beneficial for them. For company it is essential that it may form a
competitive strategy and this make sure by implementing that strategy which may beat its rivals
in effective way. This helps company to earn desired profits and as such, revenue is maximised
and customer satisfaction is accomplished which is ultimate objective of business. It is required
that firm may adopt the strategy which may enhance its profitability and this is possible by
making and implementing effective strategies. Certain strategies are used by company, which
makes them able to capture the market of homogeneous customers and make effective sales.

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