Business Strategy Innovation Analysis

This assignment involves critically analyzing three case studies of business strategy innovation: Nespresso's triumph with its innovative business model (Matzler et al., 2013), Rolls-Royce's Power-by-the-hour strategy driven by technology (Smith, 2013), and Volkswagen's 2025 strategy targeting digitalisation and mobility. Students are required to apply relevant theories and models from the provided sources to evaluate these cases and discuss how these strategies have contributed to the success of these companies.

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategic positioning of Volkswagen....................................................................................1
2.2 Environmental audit..............................................................................................................3
2.3 Significance of stakeholder...................................................................................................5
2.4 New strategy for Volkswagen...............................................................................................6
TASK 3............................................................................................................................................6
3.1 Alternative strategies.............................................................................................................6
3.2 Justification of selected strategy...........................................................................................7
TASK 4............................................................................................................................................8
4.1 Roles and responsibilities of personnel.................................................................................8
4.2 Essential resource while implementing new strategy...........................................................9
4.3 Contribution of SMART targets............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is a set of activities which is prepared to achieve its desired goals and
objectives in a minimum time period. In fact schemes of organizations are simply defined as a
long term planning for existing business for profit maximization. Therefore success of enterprise
is mainly depended upon effective and impressive strategy by considering micro and macro
environment (Alsudiri, 2013). Basically report is all about useful schemes adopted by
Volkswagen, one of a largest automotive production company famous for its attractive cars for
example Lamborghini, Audi, skoda. This report is going to classified into four different parts
with impressive presentation which throw lights on vision, mission and objectives of an
organization by considering effective business strategy. Apart from this, it also shows
appropriate business plan of Volkswagen by acquiring accurate information and data by
considering external or internal environmental factors. Along with this, report highlighted a new
strategy for achieving its desired goals and target by satisfying their customer needs and wants.
The main motive of assignment is to protect surrounding from getting exploited by implementing
useful strategy (Al-Karaghouli, 2013).
TASK 1
Covered in PPT
M1
Mission, vision and core strategies is consider as one of the essential part of an
organization as it direct entire staff members towards corrective path in order to attain set
objectives or goals. In fact, it has been analysed that an association needs to make plans or
strategies by considering relevant information or data about customers choices or preferences.
Basically, first or foremost vision of an enterprise is to gain trust or loyalty of numerous of
consumers by satisfying their demand or needs.
M2
Business plan consist of roles or responsibilities of staff members which is required for
them to perform in order to gain organizational goals or objectives. In fact, there are number of
techniques or tools are identified which plays a major role in designing business plan by
accumulating necessary information such as; understanding choice or preferences of domestic as

well as foreign clients and so on. However, demand forecasting is one of the indispensable
aspect for production department team because it assist an association while planning process.
TASK 2
2.1 Strategic positioning of Volkswagen
Internal audit is very much indispensable for whole industry as well as Volkswagen to
identify its hidden problems and obstacles which affect the success of an enterprise. In fact
organization audit plays a very eminent role in describing the barriers behind success of
enterprise (Acquaah, 2013). Therefore it act as a very useful techniques of attaining goals and
objectives in a given time frame with the help of necessary resources. Apart from this audit
determine errors and mistakes of a company by conducting SWOT analysis which are mentioned
below :-
Strength 1. Volkswagen have a number of branches across national borders due to
their effective strategies which expand business at international level.
2. Qualitative and standardized products with creative features which
highlighted their goods from other competitors.
3. Appointed skilled and knowledgable person for implementing the
strategies in an effective manner (Eldabi, 2013).
4. Adopt various attractive techniques of promoting their products across
national boundaries for satisfying their domestic as well as foreign
consumers.
Weakness 1. Limited market share in UK.
2. Products of Volkswagen destroy the environment which means it affect
the surrounding by creating pollution
Opportunities 1. Due to their qualitative products they have maximum number of
employees who are crazy for their catchy vehicles.
2. Company believes in adopting effective strategies and policies for
promoting their brand over the seas with unique and different ideas
(Azar, 2011).
3. Due to emergence of numbers of companies there is increase in
employment opportunities which resulted in increase in buying power of

consumers.
Threats 1. Rules and regulation enacted by governing bodies have a major threat
for Volkswagen which restrict an organization.
2. High price products resulted in decreases in sales.
3. Emergence of other competitors have a greater impact on products of an
enterprise (Barberá, and et. al., 2012).
4. Cost of fuel is also increases which affect sales of a product.
As per above assessment of strength and weakness it has been understood that it is very
helpful in enhancing the image of an enterprise by determining its problems and improve
accordingly.
2.2 Environmental audit
After identifying the internal problems an organization needs to conduct external audit
for understanding the outside environment which also influence the success of an enterprise in
different manner due to their broad concept. Basically Volkswagen implement strategies for
determining the external barriers which act as a restriction for company while exchanging goods
and services at international level (Chang, 2011). Apart from this a cited enterprise conducted
PESTLE analysis for environmental audit which are mentioned below :-
Political An organization is very much affected by political problems because this
enterprise is serving more than 150 countries. Due to expansion across
national boundaries they are facing political restrictions and barriers for
example tariff problems, import and export restrictions etc. Basically
governing bodies have enacted numbers of laws which influence trade of
company in every manner. In additional they need to follow all the norms
and beliefs amended by advisory bodies (Chuang, 2011).
Legal Legal authority enacted numbers of laws for protecting seller and buyer from
getting exploited. In fact they just want to prevent customers from frauds and
misrepresentation's. Volkswagen have to follow all the legal rules and
regulations while running their business in effective manner.
Technological Emergence of advanced technology forced Volkswagen to modify their
product by using new and innovative raw materials for enhancing its product

outer look. It means a cited company believes in reforming their cars on the
basis customer demand and preferences (Chu, 2014).
Socio-cultural Audit of overall society is very much important for understanding their taste
and preferences as well as opinions towards existing product of Volkswagen.
In other words society is utmost priority for cited organization because they
are final consumer of products so it si very indispensable to conduct analysis
of whole market.
Environmental Surroundings is a factor which provides raw materials to the company for
manufacturing its qualitative products by satisfying the needs and wants of
various desired customers. Apart from this environment audit is helpful in
understanding the hidden barriers which influence society in every manner.
2.3 Significance of stakeholder analysis while formulating a new strategy for VW AG
Stakeholders refers to a person or cluster of an enterprise which plays a very vital role in
attainment of organization objectives for profit maximization. In fact their main motive is to
invest their shares to earn maximum revenue by increasing sales of a Volkswagen. Stakeholders
consist of creditors, employees, shareholders, suppliers, community, government and all of them
plays a very eminent role in fulfilling the demand of organization as well as customers
(KrishnaKumar, 2014). Therefore analysis of stakeholder is an appropriate technique adopted by
company for identifying the individuals who is supporting business activities across national
boundaries. Apart from this stakeholders are very much important for whole enterprise while
formulating business strategy are given below :-
 Emergence of new and creative minds by different stakeholders which is very helpful in
decision making process of business strategy .
 Other shareholders also support and aid enterprise.
 Effective interaction between all of them by understanding the nature of enterprise.
 Predict reaction of customers and other individuals towards their business.
Apart from this various steps are conducted for assessment of different stakeholders are
mentioned here :-

 Step 1 :- First and foremost stage is to estimate the involvement of people in business
operations and its affect. Step 2 :- Secondly, its time for identification of stakeholders powers and interest as well
as their influence on business strategy of Volkswagen. Step 3:- In third step, it has been analysed that interested shareholders try to contribute
their full effort to promote product with effective strategies (Khosla, 2014). Step 4 :- At last less interested stakeholder also have a greater impact on the schemes
implemented by organization.
 Step 5 :- Finally its time for getting feedback from shareholders by creating a good
understanding (Coad, 2011).
Instead of all this, various shareholders have a greater significance on strategy of
Volkswagen due to their eminent role in decision making process in different manner.
2.4 New strategy for Volkswagen
Every enterprise wants to prepare an effective strategy to maximize their profit with the
help impressive business plans by considering essential factors which plays a major role in
strategy making. Basically Volkswagen implement schemes to satisfy the needs and wants of
their customers by maximizing their losses with effective use of various resources (Elliot, 2011).
In other words strategy act as a blueprint of an enterprise which consist cluster of activities
whose main aim is to manufacture qualitative products for capturing the attention of millions of
customers by fulfilling their demands and wants. Volkswagen try to implement a new strategy
with the help of experience and skilled persons in an appropriate manner by following all the
essential steps which are mentioned below :- Assessment of consumer choice :- First step is to asses the taste and preference of
different customers for making plans accordingly. Analysis of marketplace :- It is very essential to understand the policies of their
competitors to introduce new and innovative products different from them (Ghezzi,
2013). Estimation of capital:- Funds act as a backbone for every organization either small or
large while implementing a new business strategy because whole activities are depend on
capital only.

 Collection of data :- Gather indispensable information to make effective plans by
considering all the essential factors which plays role in organization. Gathering of raw materials :- Before manufacturing any product, operational department
of Volkswagen need to assemble mandatory resources which is used by enterprise while
producing unique cars with different features.
 Management:- At last they need to manage all the above points in a proper manner to
avoid any mistakes and errors (Higgins, 2015).
TASK 3
3.1 Appropriateness of alternative strategies
Volkswagen wants to continue their business for longer period by beating their available
competitors for example Toyota at a marketplace with different and unique strategies. In fact an
organization need to analyse taste and preference of its customers as well as policies of
competitors to modify its products accordingly. Therefore a cited company is going to adopt
various unique schemes of developing business plans are mentioned below :-
 Market entry strategy :- There are various techniques are available in entering into
market to introduce or launch new product to attract numbers of customers (Omer, 2015).
For example licensing , organic growth, franchising , acquisition , making of strategic
alliances or coalition of more than two enterprises. This strategy is very much appropriate
for Volkswagen due to their advantageous nature which is very helpful in achieving the
target of company by entering into new market. Substantive growth :- According to this plan Volkswagen trying to reduce their risk by
diversifying its products in different market for profit maximization. In fact it is also very
useful techniques of distributing losses at various marketplace by implementing effective
strategies and business plans. Therefore a cited company develop its product by
classifying goods for example related diversification, horizontal diversification etc. Limited growth :- According to this strategy an organization wants minimum growth and
profit by adopting various techniques of profit maximization for example market
penetration, development of goods as well as overall growth of market. In fact
Volkswagen use these plans or schemes for earning minor growth (Phillips, 2015).

 Retrenchment :- This strategy is implemented to eliminate financial barriers by selling its
existing assets or expand their business across national boundaries for establishing new
branch for profit maximization.
3.2 Justification of selected strategy
Above mentioned strategy is very much appropriate and useful in attaining goals of
Volkswagen in minimum duration with profit maximization. In fact justification of an selected
strategy are mentioned below :- Market entry :- If an organization is going to enter into new market then they need to
acquire an appropriate information and data about exiting marketplace with sufficient
capital. In fact they also need to build their goodwill for continuing their enterprise for
longer period of time (Iacob, 2012). Substantive growth :- Basically Volkswagen adopted this technique for distributing their
exiting product in different market for minimizing its risk. Along with this, they can also
try to maximize its profit by generating extra revenue with the help of effective plans and
strategy of developing overall organization. The main motive is to understand the policy
of diversifying product. Limited growth :- According to this growth they need to develop its product in a limited
form by developing its product. In fact they just want minimum profit by understanding
policy of its competitors.
 Retrenchment :- Sell of assets is a part of this strategy to solve its financial barriers for
generating extra revenue for attaining its goals and objectives(Quartel, 2012).
Apart from this all the above strategies are very much essential and plays a very
indispensable role in solving issues of merchandising by acquiring relevant data and information.
At last these above techniques act as useful tool in understanding the marketing plans and
schemes of their competitors to modify its products accordingly for maximization of profit.
TASK 4
4.1 Roles and responsibilities of personnel
Implementation of strategy requires skilled and experience person to execute it properly
by removing obstacles and barriers of an organization. After selecting or preparing effective
business plans its time for implementation which requires knowledge as well as talent due to the

braid concept with full of complexity in their nature. Employees of Volkswagen plays a very
vital role in managing overall plan in a proper manner by performing their roles and
responsibilities in a efficient way (Jonkers, 2012). For successfully execution of business
strategy roles and responsibilities of personnel has been clearly defined below :-
 Staffing :- First and foremost step of manager is to assign right person at a right job on
the basis of their ability and skills of managing particular task or activities.
 Co-operative surrounding :- Secondly , they need to create a healthy and friendly
environment by implementing effective communication in between higher level and
lower level of an enterprise.
 Future estimation :- One of a major role which is played by personnel is to estimate cost
incurred while execution process by considering major facts and figures.
 Distribution :- They also distribute work in between different employees to complete in a
minimum time period (Khalili Shavarini, and et. al., 2013).
 Prevent enterprise :- Major responsibility is to protect organization from any kind of
losses and risk by hedging it.
 Expansion :- Ready to face future challenges which influence the success of an enterprise
due to their branches across national boundaries.
4.2 Essential resource while implementing new strategy
There are some essential resources which are very helpful in making a project more
feasible, are described as below:
 Finance: It resembles an existence ling for any association on grounds that if there is no
fund at that point there is no business. If firm needs to extend their market and also
begins any new venture, then they require cash for this (Köseoglu, and et. al., 2013).
Alongside this, undertaking can likewise mastermind it from different sources, for
example, banks, share markets, organizations etc. On the off chance that enterprise has a
fluctuate decent reputation or brand picture in market, at that point it will be all more
simple for them. For example Volkswagen wants to establish a new plant for their
business thus they need sufficient fund approximately 100 million dollar as capital act as
a backbone for every business
 Human resource: This is another fundamental asset which will accommodating for
making any venture survival. Since, without person no work can be complete. In this

way, it is vital for an undertaking to enlist proficient individual and give them task as
indicated by their abilities, capacities and in addition learning, with goal that they can
finish it viably and productively. Administrator of Volkswagen can likewise render
training to their staff people, which will aid them to enhance their execution. As result to,
they can improve their benefits and goodwill in commercial centre. For managing the
activity of their business they need approx 75 employees so that they can accomplish
their trget within time frame.
 Relation with customers: Purchasers assume an imperative part in development and
improvement of any organisation. Since, if there is no buyers at that point no firm can
survive in marketplace. Consequently, it is fundamental for them to reach their buyers
with goal that they can enhance their incomes. On the off chance that their relations with
clients are viable then additionally they can contend their rivals in commercial centre.
Consumers are one of the indispensable part for each and every organization thus
manager of Volkswagen has to maintain their relation with clients in an appropriate
manner because they are end user of any product and services.
4.3 Contribution of SMART targets
Director of Volkswagen needs to oversee SMART targets with goal that they can do their
work adequately and also productively. Whenever, firm begins any new venture, it is
fundamental for them to set objectives and goals which they need to accomplish. It must be clear
to every enterprise, so they can fulfil it in a proper way. SMART stands for specific,
measurable, attainable, realistic as well as time bound.
According to in context of Volkswagen, these focuses are mentioned as beneath:
 Specific: Manager of an association needs to set a few targets and goals, which must be
particular in nature. So, labours can without easily achieve them within given time
allotment (Maté, 2012). It implies what company needs to accomplish, where and also
when? It likewise portrayed constraint and states of venture. Superior need to identify
some options, additionally, which can be utilized by them in any challenges. Volkswagen
wants to increase their market share by 15% in next three months for capturing the minds
of numbers of customers.
 Measurable: According to this, goals which is chosen by firm must be measured by
employer. It might comprises amount, cost, quality, frequency and also due dates. In this

manner, manager can without much of a stretch contrast setted principles and
accomplished targets. Amount can be measured in term of percentage. Managers of
referred organization need to asses performance of their labours on regular basis that may
be of one or two days of intervals thus they can provide feedback to them.
 Attainable: Objectives which are set by manager must be achievable within provided
era. On the off chance that they can accomplished by enterprise within time then they can
enhance their incomes and in addition goodwill in marketplace. If company doesn't has
appropriate assets then they can't fulfil their objectives successfully and in addition
proficiently (Trujillo, 2012). Volkswagen trying to achieve their set target and goals in
coming three months effectively.
 Realistic: Targets must be genuine, not fictionary. Pioneers can be assess those
objectives effectively, alongside this, it gives development and advancement to
association. Objectives of referred enterprise must be precise so that employees works
accordingly.
 Time bound: Objectives which are chosen by firm, must be finish within appropriate
time. In the event that they achieve focuses within time then it assists them to satisfy
needs and wants of their purchasers and in addition enhance benefits (Mylopoulos, 2012).
The main motive of Volkswagen is to complete their target in a given time period.
M3
Volkswagen is a very large enterprise whose main objective is to gain maximum benefits
by satisfying needs or demands of different customers across international boundaries. In fact,
Volkswagen is trying to make plans or strategies with the help of appropriate methods which is
very useful in achieving organization goals by overcoming identified problems which affects
success of an association. In fact number of strategies adopted by company while exapnding
their organization across various regions.
D1
According to Tan, (2013) it is analysed that selected firm is adopting various expansion
strategies in order to make plans accordingly and needs to design company policies as per
consumer needs or demands. However it is not easy to gain maximum return on their investment
because it requires skilled or talented employees in order to perform business activities in more
efficient way. Therefore, strategy designer is very much essential for success or development of

Volkswagen as it enforce employees towards corrective path by highlighting necessary norms,
rules and regulation designed by governing bodies.
D2
Vital execution required those individual who are lead the another association and
disseminate all the work among potential clients as per the obligations and duties in legitimate
way. Volkswagen representatives obligation is to execute methodologies which have different
parts and duties. For the successful arranging, the obligations and parts of firm is to oversee and
control all work for accomplishing required objectives and targets. Volkswagen CEO have
certain obligations regarding spreading different information or data which are thoroughly
identifies with procedures of the considerable number of representatives and different individuals
from firm.
D3
Volkswagen ought to grow new techniques which help in pulling in huge number of
client by satisfying their needs and requests in legitimate way. They can likewise execute most
recent arrangement for new item improvement process. This is arrange for which help in
changing the execution of relationship by serving new and new items and administrations to their
purchasers and furthermore fulfils with these results. This action can help Volkswagen for
procuring greatest benefit and furthermore pick up open doors for grow their business in
different areas.
CONCLUSION
By concluding this report its has been understood that business strategy is very much
indispensable for attaining the desired goals and objectives of an organization with the help of
specialised persons. In fact it highlighted effective roles and usefulness of planning process in
attainment of target in a minimum duration with the help of essential resources. Apart from this,
it covers all the necessary factors which plays a vital role while understanding the vision, mission
of an enterprise. Basically it shows the effective planning or strategy of a leading company
named as Volkswagen popular for its creative cars with attractive features. Instead of this, this
report consist of micro and macro factors which plays a very vital role while making a new and
fresh strategy of company to protect surroundings from harmful effects. At last, it also role and

responsibility of personnel management in gathering necessary resources for implementation of
new strategy.

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