Strategic Business Planning for VW AG

This assignment provides a comprehensive analysis of strategic business planning for Volkswagen Group (VW AG). It discusses the importance of business strategy in increasing marketability and competitiveness, and how to sustain market position for longer periods. The assignment also explores different techniques for strategic business plans, including auditing as strategic positioning, environmental analysis, stakeholder analysis, and market entry strategies. Additionally, it introduces competitive advantages for long-term sustainability in a competitive market. Furthermore, the roles and responsibilities of personnel in implementing strategies and setting smart targets for the enterprise are discussed. Overall, the significance of business strategy is understood for business effectiveness and longer term sustainability in the market.

BUSINESS STRATEGY

INTRODUCTION
Business strategy is considered as planning for increasing its efficiency and solving out
occurred issue at the workplace. It is helpful for organisation's effectiveness and enhancing
marketability as well competitive advantages. The present report is based on understanding
concept of business strategy for allocating fund for Hungryhouse. It is food and accommodation
service provider of UK comes under Dragon Den's list. However, different strategies and factors
requires to be considered for strategies can be described. In addition to this, good understanding
can be enhanced towards strategic planning to allocate adequate fund for the enterprise.
Moreover, stages to be followed for goal accomplishment will be introduced through this
assignment. Likewise, various tools for environmental and business improvement for VW AG
group which is world's largest automotive manufacturing company can also be explained. Thus,
strategies and planning procedures for businesses can be introduced with the help of this report
effectively.
TASK 1
1.1 Goals, objectives and missions in strategic planning for Hungryhouse
As per the given case scenario, it is recognised that Hungryhouse is planning for
improving its services and creating innovations in its food and accommodation services.
Therefore, allocating adequate fund is main target of the enterprise which can be identified as:
Mission statement:
To be the best community for financing the different organisations and serve through the
various channel to provide feasibility to the customers. Increasing productivity and profitability
of the organisation at higher level which impacts on marketability and competitiveness as well.
However, it views for establishing and maintaining relations with customers as satisfying them
on large scale with its services.
Objectives
On the basis of set mission, following objectives are set for Hungryhouse as mentioned
below:
 To be committed with the soundness and safety
 To serve prompt, accurate and courteous services.
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 To make proper funding which is easy for the different association so that they can serve
their best values whenever, wherever and however they choose.
Hungryhouse aims to increase number of customers and achieving their satisfaction with food
and accommodation effectively. Including this, it aims to enhance profit level and sustaining its
market position for longer time period.
Strategies:
Variety of decisions are made regarding business operations of Hungryhouse including
allocating fund, resources etc. In addition to this, all the action plans which are to be included in
project made for management of all activities effectively. Thus, for improving quality services
and business operations, strategies are prepared for project and its completion efficiently.
Strategic plans consist of different factors to be considered like; cost incurred on expenses, time
consuming in business operation.
1.2 Factors considered for strategic planning
Strategic plans consist of different factors to be considered like; cost incurred on
expenses, time consuming in business operations, performance of workers in team work etc.
these factors are required to be considered for Hungryhouse to allocate required fund and
resources can be understood as follows:
Cost:In this consideration, cost incurred on expenses for project are determined including
purchasing material, labour cost, additional overhead costs and so on. It is one of the essential
factor to be considered related with cost effectiveness and further business operations.
Therefore, variety of ideas are generated for reducing expenses and increasing sales revenue of
the organisation.
Time frame: strategic planning is creating very effectively and systematically able for
optimum utilization of resources and fund. However, it is considered that using time frame
method is effective for formulating and implementing strategy for Hungryhouse and its
effectiveness. On the basis of analysing this factor, project can be succeed as well
accomplishment of goals are possible to allocate fund. In this consideration for project, time
consumed on each activity of the project is determined. For example; for identifying actual
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position of the enterprise, consuming 2-3 weeks, for formulation, implementation and evaluation,
different time scales are set. Thus, Strategic plan also includes team building and work
segmentation process for proper management of its activities and getting success.
Team building and work segmentation: strategic planning is creating very effectively
and systematically able for optimum utilization of resources and fund. However, it is considered
that using time frame method is effective for formulating and implementing strategy for
Hungryhouse and its effectiveness. On the basis of analysing this factor, project can be succeed
as well accomplishment of goals are possible to allocate fund.
For planning, different factors are considered as cost incurred on business operations, the
best way to advertise products etc. Therefore, variety of ideas are generated for systematic
production and distribution system. It also impacts on optimum utilization of resources and fund
affect productivity and profitability of Hungryhouse. Analysing sources of fund: In the given
case scenario, it is considered that Hungryhouse can allocate fund through analysing its sources.
For example; granting loan from bank, using personal saving, business venture etc.
Risk: All risks are required to be considered as well preparing back up plan for project
and accomplishment of its tasks. It is considered that there are different kinds of risks can occur
at workplace for Hungryhouse and allocating fund for it. For instance; inefficient fund and
resources, lack of coordination among team workers, improper management of operations, gap
between expected and standard result etc.
Communication: Clarifying goals, objectives and job among workers is done which is
able to manage project's activities. Moreover, it remains helpful to create positive and effective
environment of the workplace.
Thus, analysing all the factors critically is necessary for the enterprise to create
innovation in its food services and accommodation effectively. Including this, it is recognised
that considering this factor will be effective for project and management of all resources
appropriately.
1.3 Methods to develop strategic plans
Process for strategic plans as mentioned below:
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Team building and work segmentation: After formulating strategies, team is build up of
co-workers of Hungryhouse as work is segmented among them according to their abilities.
Implementation of strategies: In this process, all action plans are implemented according to
prepared plans and decisions.
Performance evaluation: Comparison between expected and actual result is also done for
accomplishing tasks and effectiveness of the enterprise.
Team building and work segmentation: through using this approach it is considered that
project can be succeed as well all management of all activities is possible effectively.
Implementation of strategies: However, Hungryhouse can allocate adequate fund same as
proper management of all resources for improving its quality services.
Performance evaluation: It is last stage for developing strategies for Hungryhouse to
increase its efficiency and marketability effectively.
Methods applied for strategic plans as analysing actual business performance at first and
further decision making to implement strategies. It is useful for managing entire business
operations and improving quality of services efficiently. However, implemented strategies are
also evaluated by for reaching out to set goals of the entity effectively.
TASK 2
2.1 Strategic organisational audit for VW AG
In the given case scenario, it is identified that Volkswagen Group (VW AG) is on of the
largest and wide spread entity of UK provide variety of cars and vehicle equipment on large
scale. However, it provides different variety of cars as Audi, Porsche, Skoda, Bentley across the
country as well globally. Including this, it has good relationship with other countries' business
entities and effective market reputation internationally (Abdallah and Langley, 2014). Besides
this, there is around 20000 of staff who work for VW AG globally affect business efficiency and
further operations. Along with this, it has announced 86 billion investment plan for financial
development and increasing good market reputation effectively. Overall, it is recognised that
organisation provides satisfied services to a million customers. Likewise, it has effective
goodwill in market required to be maintained for longer time. Thus, actual position of the
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enterprise is analysed through this case study that will be effective for further business operations
and maintaining its reputation in competitive market for longer time period.
SWOT analysis:
Strength:
 Effective market position
 Around 20000 employees are working
for VW AG worldwide.
Weakness:
 Poor quality services of car and vehicle
equipment of VW AG.
 High level of competition in this
industry as difficult to sustain its
position.
Opportunities:
 To adopt new technologies for
improving engine quality for cares
provided by VW AG.
 To conduct market survey and
analysing recent trend to maximize
customers' satisfaction at higher level.
Threats:
 It is difficult to face high level of
competition and sustaining its place for
longer time.
 Due to changes in people's choice and
interest, demand for services of VW
AG can get decreased.
Strategic organisational audit is essential for identifying its actual position on which
further decisions are made to improve its efficiency. Including this, variety of ideas are generated
for creating balance between incurred expenses and revenue of the company (Agudo, Garcés and
Salvador, 2015). Moreover, by using strategic audit tools, market position, competitiveness and
qualities of services are analysed for further decisions and implementing action plans of VW
AG. Likewise, auditing on each and every business operations is created for further planning
procedure and creating effective environment of the workplace. In addition to this, positive
results related to entity's performance and competitiveness are identified which are required to be
maintained and implemented. It is possible through increasing quality in manufacturing and
production process of the enterprise for long term sustainability in global market at maximum
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level (Al-Mudimigh, 2015). Therefore, according to strategic audit and analysing its actual
position, quality of manufacturing cars and vehicle equipment can be improved on larger scale.
2.2 Environmental audit for VW AG
Environmental audit is related with analysing its factors on which business operations are
dependent such as; management of business operations, external factors like; political, socio-
cultural, legal and environmental etc. However, environmental factors' impact on business
operations as well production and distribution of cars and motor vehicles are identified critically.
In addition to this, variety of ideas are generated for improving quality services and increasing
efficiencies of VW AG at maximum level (Blackburn, Hart and Wainwright, 2013). Moreover,
in the given case scenario, environmental factors' effect its business operations are recognised
that is required to be balanced and improved efficiently. Thus, environmental audit for the
organisation provides market trend, competitiveness and potential to face competition.
According to US Environmental Agency (EPA), it is recognised that entity allows car to produce
up 40 more pollution than standard allowance is to be control over. Similarly, new appointed
CEO of VW AG analyses that there is need to improve quality of engine in motor vehicles and
car equipment. It will influence environmental protection as well able to reduce pollution. Apart
from this, it is also identified that market position of the enterprise is quite effective and well
reputed globally that can be maintained by considering on engine quality of cars and vehicle
equipment (Brower and Mahajan, 2013). Thus, it is forecast that by improving engine quality,
VW AG can enhance its efficiency and environmental protection is possible through this
approach efficiently.
PESTLE analysis:
 Political factors: It includes factors as political stability, government policies and taxation
etc. However, changes in these determinants impact on business and financial
performance of VW AG both positively and negatively. Like; decreasing in these rates
increases monetary performance while decreasing in it affect business position adversely.
 Economic factors: In this analysis, economic policies as tax rates, interest rates, market
price are analysed. It impacts on business performance of VW AG on which further
decisions are regarding business operations.
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 Social factors: It is recognised that different people have different attitude, perception and
interest. Therefore, demand for care and vehicle equipment of VW AG get impacted also
influences its productivity and profitability.
 Technological factors: Technologies get changed from time to time reagrding business
operations and products' qualities. However, adopting these technological changes impact
on business activities of VW AG to make place in competitive market for longer time
period.
 Legal factors: Government changes policy plans as rules and regulations time to time
which impacted on business operations. Including this, it is unable to control over these
changes but affect business activities of VW AG both positively and negatively.
 Environmental factors: Due to occurrence of natural calamities and other environmental
factors' changes impact on business operations negatively. Therefore, further business
activities and implementation get affected as well remain challenging to overcome the
issue.
2.3 Usefulness of analysing stakeholder to formulate strategy
Stakeholder are personnel and other collaborative who involved in business operations of
VW AG. These are two kinds as internal and external establishes relation with business entity.
However, stakeholders are included as customers, personnel, suppliers, creditors, debtors and
other business entities work for exchanging goods and services of the enterprise. Through case
study, it is analysed that there is approx 20000 workers perform their job in manufacturing,
production and marketing field for selling cars and vehicle equipment (Buckley and et.al., 2016).
It is quite effective and shows good position of the entity in maintaining relations with its
stakeholder. However, its importance for formulating new strategy regarding improving engine
quality can be understood as below:
 Actual market trend and stakeholders' requirements are identified for effectiveness of
VW AG.
 Different ideas are generated for establishing and maintaining good relationship with
stakeholders effectively for longer time period.
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 Financial transactions and adequacy in fund allocation for dealing with them are possible
through this analysis.
 Communication and effectiveness in business operations for VW AG is possible through
this approach for longer time period and increasing competitiveness.
Thus, stakeholder analysis is crucial for maintaining good relationship with them for
longer time period affect sustainability of VW AG in competitive market globally. In this regard,
variety of ideas are generated for improving business performance and enhancing its potential
effectively (Chen and Jermias, 2014). However, by analysing stakeholders' requirements and
fulfilling them will be effective for competitive advantages and effective team building towards
goal accomplishment. Therefore, it is recognised that stakeholder is essential for enhancing
marketability and competitive strategies of the enterprise on larger scale.
However, it is identified that if stakeholders perform their effectively then accomplish
tasks and meeting organisation's goal remain easy. In this regard, good bonding is created among
them towards working together and team building. Therefore, involvement of stakeholders for
decision making regarding business and marketing plan for VW AG impact on its operations
effectively. Including this, workers perform their job with interests and coordination to reach out
set objectives efficiently.
2.4 New strategies for VW AG
As per the given scenario, it is identified that VW AG requires improving quality of
engine to attract customers on large scale. Similarly, maintaining good relationship with its
stakeholder is also required for the enterprise to maximize its competitiveness and sustaining
position in global competitive market (Goerzen, Asmussen and Nielsen, 2014). For this purpose,
strategies are prepared for VW AG to improve quality engine and enhancing marketability can
describe below: Identifying actual position of VW AG: At first, it is needed to analyse performance of
VW AG regarding car and vehicle equipment in context to further business operations. In
this regard, actual position of organisation is recognised including marketability,
competitiveness and potential to increase profitability etc. On the basis of recognising
these factors, different ideas are generated for improving quality services and managing
business operations adequately (Harrison and Wicks, 2013). Thus, by using this strategy,
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goal can be accomplished efficiently for longer time period sustainability and improving
its efficiency at maximum level.
 Formulating strategies and considering all factors: In this phase, on behalf of actual
position of VW AG and analysing its market position, strategies are formulated for
further implementation (Jocovic and et.al., 2014). However, related factors also analysed
such as; time consuming, cost incurred in expenses, action plan and work segmentation
among team workers etc. Thus, for improving engine quality of cars and vehicles, all
tools are analysed for further implementation and enhancing marketability of VW AG on
large scale will be able to sustain customers' interest towards its services.
TASK 3
3.1 Appropriateness of strategies for VW AG
With the help of given case scenario, it is identified that there is need to improve engine
quality of motor car and vehicle equipment for VW AG. For this purpose, different strategies are
analysed like; market trend, substantive, limited growth etc (Klingner, Nalbandian and Llorens,
2015). However, some essential strategies as well its appropriateness can be understood as
below: Market trend strategy: This strategy is related to analyse market position and all tools
including merger, acquisition and liquidation of company. However, market trend
regarding business operations is identified for formulating structure and making decisions
regarding marketability and competitiveness. In addition to this, different ideas are
created for sustaining market position of VW AG in competitive market for longer time
period (Madsen and Bingham, 2014). Apart from this, tools for improving engine quality
using technologies and machinery equipment are recognised. Thus, market trend strategy
is effective method to increase competitiveness and sustaining its reputation for longer
time period. Substantive growth: It is created in context to product line and production level for VW
AG includes diversification and integration of market. Therefore, market integration is
created in terms of product line methods. However, for related diversification, same
product line is implemented while for different product line, unrelated diversification of
market is created (Mayer and Dale, 2014). It is related with marketability and
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competition level of enterprise for producing goods and services in same and different
levels. In addition to this, for same product line, horizontal market integration is created
while for different market trend, vertical integration is made affect competitive strategies
for VW AG. Therefore, substantive growth is also termed as favourable strategies for the
enterprise and its effectiveness of large scale. Limited growth: This strategy is beneficial for market development and promoting goods
and services more effectively. In accordance to this, it is linked with customer
satisfaction and competitiveness of the enterprise for longer time period. Moreover, it is
able to enhance brand awareness and increasing their satisfaction level with services at
maximum level (Menon and Yao, 2016). Therefore, limited growth remains effective for
marketability and increasing marketability of VW AG more efficiently.
 Retrenchment: In this phase, organisation winds up its business operations and shares
profit or loss. However, by getting aware of this aspect in market will be effective for
strategic plans and increasing competitiveness. Including this, analysing market trend and
competition will be able to enhance its profitability and effectiveness (Nalbandian and
et.al., 2013). Thus, using retrenchment is useful to gain competitive advantages and
increasing effectiveness of the on larger scale effectively.
Therefore, all the above mentioned strategies are able to enhance competitiveness and for
longer term sustainability. However, market trend strategy is appropriate at most for competitive
advantage and further implementation (Rothaermel, 2015). In this regard, by analysing market
trend and competition level will be effective for VW AG to sustain its good reputation for longer
time and effective manufacturing process for the enterprise.
3.2 Justification on selecting strategy for VW AG
From all the above mentioned strategies, market trend is the most appropriate for
competitiveness and increasing its marketability for longer time period. For critical evaluation on
market position and other companies' position as well affect further business operations.
Likewise, it will be able for market and competitive strategies of VW AG at maximum level for
longer time period. Including this, actual position and potential of the enterprise is analysed
related with competitiveness and management of all business operations efficiently. Along with
this, proper management of all strategies is possible through this method for improving services
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and sustaining position effectively (Sabherwal, Hirschheim and Goles, 2013). Therefore, market
trend strategy is justified for increasing marketability and competitiveness of VW AG
effectively.
In addition to this, both positive and negative aspects for business operations can be
identified by which further decisions are made. In this regard, different ideas are generated for
maintaining market position of VW AG and improving quality services. Moreover, appropriate
balance can be created between demand and supply impacts on decision making for business
operations. Along with this, technologies are recognised for adoption to improve quality of car
and vehicle equipment. Hence, it is justified that implementing these strategies will be effective
for entity to increase its efficiency.
TASK 4
4.1 Performances of personnel in implementing strategies
Contribution of personnel is essential in team building and accomplishing tasks of the
enterprise impacts on organisation's effectiveness. In this regard, work is segmented among
workers according to their abilities for implementing strategies and competitiveness for VW AG.
It includes project manager, group workers and so on for implementing strategies and proper
management of all business operations (Scholes, 2015). In addition to this, it is considered that
they are responsible for managing project's activities and effectiveness of organisation through
formulating and implementing strategies at higher level. Including this, for implementing
strategies, all factors are considered for project and managing all the operations effectively.
However, roles and responsibilities of personnel in increasing competitive sustainability and
sustainability of VW AG in market for longer time period. In this regard, roles and
responsibilities for the enterprise can describe below:
Role of personnel in implementing strategies:
Market strategies and competitiveness of VW AG can be enhanced efficiently through
contribution of its personnel effectively (Seuring and Gold, 2013). However, their roles in
strategies' implementation are as:
 Formulating and implementing strategies for improving quality services and managing
business operations of VW AG at maximum level.
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 Team building and segmenting work among team workers according to their abilities and
efficiencies.
 Analysing performance of both employees and VW AG for further operations and
decision making to increase marketability and competitiveness.
 Preparing and maintaining records of financial transactions and business operations by
which further activities can be implemented effectively.
 Performance evaluation and working on its management and improvement as well.
Hence, personnel of VW AG play crucial role in implementing business strategies and further
activities for competitiveness and longer term sustainability in competitive market (Slack, 2015).
Similarly, for improving engine quality of cars and vehicles, personnel's work affect
sustainability in market and further implementation effectively.
Responsibilities of personnel for VW AG and increasing its efficiencies:
Below mentioned responsibilities are considered for implementing strategies and
maximizing competitive advantage of the enterprise as:
 Analysing and managing all business' performance for its effectiveness and further
implementations.
 Creating positive environment of workplace through effective coordination for working
in group and increasing enterprise's effectiveness on large scale.
 Considering all ethical considerations for business operations and implementing
strategies for longer time period.
Therefore, personnel play effective role in management of business operations and
implementing strategies for long term competitiveness of VW AG at higher level. However, they
are responsible for contribution in team work and managing its operations effectively (Business
Strategy introduction, 2016). Thus, their coordination in team work and for organisation's
effectiveness is crucial to enhance marketability and competitive advantages for longer time
period of the organisation.
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4.2 Requirements of resources for implementing strategies
For implementing strategy regarding competitiveness and quality services provided by
VW AG, different resources are required to be considered. In this regard, below mentioned
requirements are considered for implementation as: Finance resources: Allocation and management of fund for increasing competitiveness
of VW AG is required for accomplishing tasks. For this purpose; sources of fund and for
expenditures are analysed affect further business operations and its effectiveness. In
addition to this, manager and decision-maker analyses that from where and how much
fund they can allocate for increasing competition level of the enterprise (Harrison and
Wicks, 2013). Therefore, adequate fund is allocated for implementing strategies and
further implementation of the enterprise. Human resources: In this consideration, performance management of organisation's
workers is done affect its effectiveness. However, working ability of workers is identified
for work segmentation and improving skills. Including this, different strategies are used
for enhancing their working efficiencies such as organising training and development
programs, using motivational tools (Chen and Jermias, 2014). It is able to encourage
them for effective contribution in team work to increase organisation's effectiveness.
Thus, human resource is also essential to be considered for implementing strategies of
VW AG efficiently.
 Time and material resources: For implementing strategies regarding marketability and
gaining competitive advantage, time and resources are required to be considered
(Blackburn, Hart and Wainwright, 2013). In this regard, time for each activity and
material including quality and quantity are recognised for business' effectiveness and
further implementation at maximum level.
Thus, above mentioned all resources are needed to be considered for getting
effectiveness of VW AG at higher level. In accordance to this, various tools are used for
enhancing competitive strategies and sustaining good market position for longer time period
efficiently (Sabherwal, Hirschheim and Goles, 2013). Therefore, management of all operations
and their development is possible through this consideration to accomplish the task.
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4.3 Smart targets for getting success
For getting success regarding marketability and competitiveness of VW AG, following
smart targets will be useful to be considered as:
 Setting time for all activities to be completed specifically for further implementation
effectively.
 Discussing project's activities and strategies with all team workers to identify their
interest and segmenting work according to their abilities.
 Setting small targets to be accomplished in a specific time period to reach out the main
aim for effectiveness of VW AG efficiently.
 Creating positive and working environment for all workers to encourage them for
working in group more efficiently.
 Conducting market research critically for effective implementation and facing high level
of competition for longer time period.
However, smart goals are determined as setting small goals for meeting business
objectives as increasing 2-3% growth in comparison to last performance. Likewise, analysing
workers' performance and segmenting work according to their working abilities. It is to emerge
employees' interest towards working together and meeting company's goals etc. Hence, using
these strategies and setting smart goals will be effective for VW AG to enhance business
performance and maintaining goodwill for longer time period.
Therefore, above mentioned smart targets will be effective for VW AG to increase its
marketing and competitive strategies for long time period. In addition to this, considering all
tools in all angles would be effective for organisation and improving performance of its workers
at maximum level (Seuring and Gold, 2013). Moreover, completing small targets in specific time
would be effective for enterprise to implement strategies and proper management of all tools.
Along with this, it is helpful to manage performance of both workers and enterprise effectively.
Besides this, it is forecast that by applying these strategies, management all business operations
would be succeed as well customers can demand for motor car and vehicle equipment efficiently.
It influences customer loyalty and competitiveness for the enterprise at maximum level (Menon
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and Yao, 2016). Thus, using these smart ideas would be effective for organisation to increase its
effectiveness and further implementation efficiently.
CONCLUSION
It is concluded that business strategy is essential for increasing marketability and
competitiveness also able to sustain its market position for longer time period. In this regard,
strategic planning information and factors to be considered for effectiveness of Hungryhouse has
been understood. Including this, different techniques for strategic business plans and
implementing them are expressed for improving quality services of the enterprise. In addition to
this, auditing as strategic positioning, environmental analysis, stakeholder analysis is described
for VW to increase its marketability and competitiveness for longer time period through this
assignment. However, strategies relating to market entry and competitive advantages has
introduced for long term sustainability in competitive market. Besides this, roles and
responsibilities of personnel in implementing strategies including smart targets for enterprise has
been discussed. Overall, significance of business strategy is understood for business'
effectiveness and longer term sustainability in market in this assignment.
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REFERENCE
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