SWOT Analysis and Business Strategy

This assignment requires analyzing various sources related to SWOT analysis and business strategy. It involves providing a meta title, meta description, and summary for publishing on Desklib. The sources include academic papers, journals, and online articles discussing the importance of SWOT analysis in business strategy. The list of references provided includes citations from reputable sources such as Palgrave Macmillan, Springer Science & Business Media, McGraw-Hill Education, and more.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1, 1.2& 1.3 Covered in PPT.....................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategic positioning of Swing Patrol for carrying out company's audit..............................1
2.2 Environmental audit for Volkswagen...................................................................................2
2.3 Significance of stakeholder analysis when formulating new strategy..................................3
2.4 New strategy for Volkswagen..............................................................................................4
TASK 3............................................................................................................................................5
3.1 Appropriateness of alternative strategies relating to market entry, growth.........................5
3.2 Selection of Strategy.............................................................................................................6
TASK 4............................................................................................................................................6
4.1 Roles and responsibilities of personnel who are charged with strategy implementation......6
4.2 Analyse the estimated resource requirements for implementing a new strategy..................7
4.3 Contribution of SMART targets to the achievement of strategy implementation...............8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Business strategy refers through which a business firm can achieve its goals and
objectives. It is a business planning for long term. The total period of business strategy is about
3- 5 years or it can also be for long period. This strategy is related with maximising the funds for
developing the new machinery, any industry and plant. It is the responsibility of a manager is to
make the good and effective business strategy, through which a business firm can achieve its
target. A effective strategy helps in running a business smoothly. In this report mentioned about
the scandal of Volkswagen Group and a case which is related with the Dragons den, BBC.
There are some factors which helps in formulating the strategic plans. In this present report
mentioned about the importance of stakeholder analysis at the time of formulating the new
business strategy (Scholes, 2015). There are some appropriateness of the alternative strategies
which is related with entry in to a new market, growth, development and retrenchment of a
business firm. A personnel has some roles and responsibilities who are charged with the
implementation of strategy. At the time of implementing a new strategy, then in this case there
will be a need of some resources.
TASK 1
1.1, 1.2& 1.3 Covered in PPT
TASK 2
2.1 Strategic positioning of Swing Patrol for carrying out company's audit
Volkswagen is a big automotive industry. This business firm makes many cars or some
luxurious cars for its customers. But this company make changes or modification in its cars
according to the needs and wants of buyers. Customers of this industry are very loyal and it has
many consumers which are permanent for company (Teece, 2010). Along with increasing the
profit, Volkswagen work for the welfare of society. This business enterprise start its business in
to new towns, cities and countries. For analysing and knowing the strategic, it is necessary to
determine or evaluate the strengths, weaknesses, opportunities and strengths of business. With
the help of SWOT analysis, this business organisation can do or complete its audit.
1

Strength
The main and strong capability for this business firm that tit has the clear goals and
objectives for segment its company. From the past three years, the regularly revenue of this firm
has been detected. The profit of this company is low but it manage its gain or the profit ratio. It
invest some part from its profit in to welfare of society.
Weaknesses
The stock is maximising for an organisation from which enhancing in the pricing
structure. The main weakness of this company is the unfocused approach of business and the
high cost as comparison to the goodwill of the services (Bharadwaj and et. al., 20130). But in
some years, earning and the revenue this enter is decreased.
Opportunities
Volkswagen has the great and big opportunity to enhance its revenue or profit from
increasing its brand name. It should be focus on growth and development of its business. It can
be increase its business in to new areas and new fields.
Threats
The main threat is that there is a less restriction for entry in an industry and change the
technology rapidly. Competition is at high scale with other companies.
2.2 Environmental audit for Volkswagen
In year 2015, there is a high crisis and problems in this abusiveness enterprise that in the
cars, there was more pollution found and it is not good for the business. Pollution causes harming
2
Illustration 1: SWOT analysis
(Source- SWOT ANALYSIS, 2013)

for an environment and also impact on health of people. It creates major and big problem for this
business firm. After this, the management of this company prepare a new and effective plan for
making new cars and from who no pollution will be crated (Astrachan, 2010). This kind of audit
is very important for auto-mobile organisations and with the help of this, the sales of their
company will also be increased. For environment audit, it is necessary to know about the
external environment of an organisation from PESTEL. For this purpose, there will be a need of
making strategies.
Political environment- At the time of moving from domestic country to another country
then in this case, it has a benefit to less restriction for entry and the rate of tax is not very much
high on this industry.
Social environment- After making the pollution free cars most of the individuals started
purchasing a luxuries cars and also the middle class people are also afford or buy branded cars.
With the help of this development and growth of business will be increased and the sales also
will be enhanced.
Technological changes- The technology changes with in a short period of time and to
maintain its business or to increase its sales, the company has to adopt and use new and advanced
technology and machineries. From this, business can change in its cars or can make some
improvement in its manufacturing process (Woodcock, Green and Starkey, 2011). For
maintaining stock management, technology helps in managing Management Information System
(MIS) and other systems related to data base through Volkswagen.
Legal environment- The legal environment is very important for business and company
should be work under this. In this type of environment, this business organisation has to follow
all the legislation, paid tax on proper time, also follow all policies related to safety and health,
competitive policies etc.
2.3 Significance of stakeholder analysis when formulating new strategy
Stakeholders are the main part of an organisation. In Volkswagen organisation, there are
many stakeholders such as employees, shareholders, suppliers, society, customers etc. The
interest of each stakeholder is different from each other. They all are play necessary role in the
success or growth and development of business. They are also called and stakeholders mapping.
Their role is important in decision making process. Volkswagen can introduce some effective
strategies to convince them by new strategic plan. In the process of making new strategy, there is
3

a need and importance to analyse all stakeholders. This business firm has to take care the needs
and wants of its stakeholders and they also very helpful in maintaining the success and running
business smoothly and effectively (Montgomery, 2011). There is a need to Volkswagen company
to understand that they has to work for providing the satisfaction to stakeholders and to support
them at each and every stage. The main importance of analysing the stakeholders is that to
enhancing the level of their satisfaction. The other significance is that management should know
about the competencies, skills of employees. The core competencies help in achieving the aims
and also help in maintaining the positive working environment. The success of business is totally
depend up on the potential, skills, knowledge and abilities of all employees. They give their
contribution in completing tasks and activities and also accomplishing the objectives of a firm.
They all are work together in a team with out any conflict and also work on a common goals and
objectives. With the help of stakeholders analysis company can know about the new trends of
amrletr place and also know the tastes and preferences of their. The stakeholders analysis helps
in giving the positive and good review gained to company. To implementing new strategy, there
will be a need of funds or money and it can accomplished with the help of new strategies which
are introduced or formulate by stakeholders. From stakeholders analysis, a sureness will be arise
in employers and the board of directors of Volkswagen business firm. It helps in identified and
understand the law related policies and some legal restrictions.
2.4 New strategy for Volkswagen
With the help of all stakeholders, there will be easily all plans will be implemented. The
good decision making helps in earning profit for business and some welfare for stakeholders
(Campbell, Edgar and Stonehouse, 2011). On the basis of them, there will be a formulation of
new and effective strategy for Volkswagen:
 The management of this company has to take care about all shareholders and their
policies. They are the owner of this firm and they want to earn more and more
profit by providing good designed and luxurious cars.
 It has to focus on needs and wants of customers like the demand of people if
luxury and high price cars and those cars through which customers get all
facilities. They also work on providing different and unique facilities and also
works on proving the maximum satisfaction to its customers.
4

 The motivation is very important for employees. If manager will motivate their
employees they from this they will work effectively and also helps in maintaining
the positive and good working environment at workplace. Through motivation, all
workers will be satisfied from services of company.
 The management of this automotive company is to has to make and formulate
new and effective policies which are favourable for employees as well as
company (Peteraf, Gamble and Thompson, 2014). It is the responsibility of
manager is to implement new policies and strategies.
TASK 3
3.1 Appropriateness of alternative strategies relating to market entry, growth
The alternative strategies and policies are very important or necessary for creating and
giving the better opportunities for making the satisfactory solution for problems and issues
related with business. For growing and for developing a market it is necessary to a business firm
is to make strategy related to market entry. From entry in to new market, the price of share
market will be enhanced and with the help of this, there will be create an opportunity to target
new customers and also helps in retain existing customers. The new market entry strategy tools
and techniques are merger, joint venture, acquisition etc. Merger refers when to business firms
are work together with the same values (Tsamenyi, Sahadev and Qiao, 2011). The size of both
organisations are same. Joint venture means when two or more than two business enterprise are
work together for completion of a common projects and acquisition means when one business
firm buy another or can say that one company acquire share of another organisation.
Limited Growth- The major benefit of this business strategy is to ignore the debt of an
organisation and also increasing the productivity of business. This strategy helps in enhancing
the equity and also helps in decreasing the debt.
Substantive Growth- This strategy helps in increasing the market share of this
Volkswagen business firm. This type of growth is use in acquisition, joint venture,merger as
comparison with the organic growth. The vertical and horizontal integration is helpful when the
condition is not same. Volkswagen business organisation has to use this growth strategy for
maintaining the productivity and development as comparison to its competitors.
5

Retrenchment- With the help of this Volkswagen business enterprise will be more
financial viable and to reduce its business operations (Acquaah, 2010). This company should be
implement this strategy and with the help of this, company can do reduction in its one operation
and it is not more gainful for company but the manager can work on maintaining its financial
position. It will helps in making the business effective.
3.2 Selection of Strategy
The finance helps in making a business process successful. According to the case study,
this Volkswagen business firm is doing good business at market. The growth or productivity rate
of this business firm is medium and it has to re formulation their decisions which is related with
business activities. It will helps in making a good and effective business plan in a proper manner.
The growth strategy helps in growth or productivity and also helps in market and the product
development. This growth strategy helps in making business activities successful. From the help
of this strategy, the management of this organisation take care of its competitors and also
customers. It can easily identify its relieves and their strategies and needs or wants of its
customers. With the help of growth strategy, company can resolve its problems by making an
appropriate solution for present problems or issues.
There are some duties and responsibilities of manger for their employees or workers.
They are most important part of an organisation and they contribute their skills, abilities in
accomplishing the goals and objectives (Jocovic and et. al., 2014). All factors are very essential
at the time of formulating new and effective business strategy for Volkswagen industry.
TASK 4
4.1 Roles and responsibilities of personnel who are charged with strategy implementation
It is a responsibility of personnel manager is to implementing a strategy or policies which
are made by top management. Personnel is that person who monitor all tasks and activities of an
organisation. The managers of Volkswagen business enterprise motivate their employees to do
work better and in an appropriate manner. There are many responsibilities of personnel is
implementation and monitoring plans and policies, performance appraisal, motivation,
compensation. There are some other roles and responsibilities:
6

 It is the duty of a manager is to monitor and control all the activities related to
business. Manager should track all tasks or activities and development of
Volkswagen in a proper way.
 It is a main responsibility of personnel is to provide time to time training to its
employees. With the help of training, skills, knowledge, abilities and capabilities
will be increased they all will work in an effective way (Martin and Rice, 2010).
Training is related to new machinery and can be of new and advanced technology.
 The main duty of manager is performance appraisal on the basis of performance
of workers. With the help of this they will get motivated and satisfied from, its job
and complete their work in a proper time period.
 The duty of a manager is to coordinate with its employees and if there is any
problem to them, then in this case personnel manager has to provide appropriate
and satisfactory solution of their problems. From this, all employees will feel that
they are the part of this business firm. It will helps in maintaining the good
relationship among employees and employers.
4.2 Analyse the estimated resource requirements for implementing a new strategy
To implement a new strategy in market, Volkswagen will require definite resource for
product development and market development. Without resources, an effective strategy also
require estimated resources to achieve success. Volkswagen need to target these essentials for an
effective strategy implementation.
Financial Resources-
Financial Resource refers to company's Finance ability. Raw material and technical
machinery require good financial status of company for maintenance, salary of labour,
purchasing resources of products and machinery expenses (Gollakota, Gupta and Bork, 2010).
Financial resources need to be carefully managed for launching new strategy in market. Financial
resource contribute in strategy success and failure. Financial resource include existing financial
funds and capacity to raise funds.
Human Resources-
Most significant resource is human resource. Skill base Human resource is require to
maintain result and work of new planning. Human resource ability is most important resource of
organisation which can become strength of company. Human resource must be potential and
7

loyal toward new strategic planning and market development activities. Such human resources
include Existing staff resources and vary in required in staff.
Technical Resources-
Technical resources refers to machineries and instrument of manufacturing a product and
service. Volkswagen, therefore, require heavy and innovative technologies in producing
products. Those are expensive and difficult to maintain (Köseoglu and et. al., 2013). To acquire
new strategy, investment in advance and justified machineries is effectively increase probability
of success.
Raw material-
Major and Most important source is management of Raw Material for production and
development of products. Without proper Raw material , Volkswagen will be unable to produce
any product. As company product has a reputation in market, raw resource is not available at
place, Company has to manage resources from different countries an keep building relation with
supplier ion order to get all raw resources from supplier in industry. The material should be
advance quality and in low cost.
Physical Resources-
This refers to strategies and required resources to deliver physical capability of products.
This category is needed to execute any strategy in industry with a proper planning and budgeting.
This comprises-
Presentation Facilities-
 Position of manufacture facilities; ability, maintenances and needs
 Current manufacture procedure- Quality, technique .
 Delivering of resource facilities.
Marketing resource-
 Marketing administration.
Distribution transmission.
4.3 Contribution of SMART targets to the achievement of strategy implementation
In Volkswagen, The SMART targets to achieve goals in a designed way (Gandolfi and
Hansson, 2012). The SMART aims fix some factors which assure development of Volkswagen
into definite path. SMART technique describes objective in order to get certain conclusion of
8

respected strategy with process of planning and implementation. Here is SMART refer to in an
elaborated term-
 'S' stood for Specific goals which is process in business industry and Volkswagen vision.
In order to growth in market share and margin for Volkswagen, specific goals is require
to designed (Peteraf, Gamble and Thompson, 2014). Volkswagen has determined to raise
its profit upto 5 -7 % in every three month in respect of last profits and earnings.
 'M' refer to measurable goals that Volkswagens set to achieve in a measured time. In
consist 5-7% increase in profit in market share in statistical formate even be measuring
margins. Also it can be achieve by counting product sales that have been made in market
in time.
 'A' defines goals which are achievable. Realistic achievements are set by Volkswagen to
reach desired profits and result of decided strategies.
 'R' stand for Realistic targets +that Volkswagen set to achieve in measured time. Target
of 5-7 % increment in market share in every quarter is reachable and realistic target that
can be achieved by effective strategies easily.
'T' describes Time bound to reach an desired result by organisation. It is basic of any strategy
implementation to reach result in specific time. Reaching 5-6 % increment in quarter time is
target which have been set to motivate and work hard over strategies.
CONCLUSION
It is concluded from the above report that business strategy is very important in making
business process and operations successful. Vision, goal, mission, core competencies helps in
making the strategic plans. There are some factors that is included at the time of developing a
strategic plans. At the time of formulation of new strategy, a business enterprise uses SWOT to
carrying out its audit programme. With the help of audit Volkswagen easily know its strengths
and weaknesses. All stakeholders plays important role in business and they take interest in
business activities. The manager of this industry has some roles and responsibilities and their
main responsibility is to implementing new policies and strategies in to action form. In this
present report studied about the determination the contribution of SMART goals to achievement
of implementation of strategy.
9

REFERENCES
Books and journals
Acquaah, M., 2013. Management control systems, business strategy and performance: A
comparative analysis of family and non-family businesses in a transition economy in
sub-Saharan Africa. Journal of Family Business Strategy. 4(2). pp.131-146.
Astrachan, J.H., 2010. Strategy in family business: Toward a multidimensional research agenda.
Journal of Family Business Strategy. 1(1). pp.6-14.
Bharadwaj, A., and et. al., 2013. Digital business strategy: toward a next generation of insights.
Campbell, D., Edgar, D and Stonehouse, G., 2011. Business strategy: an introduction. Palgrave
Macmillan.
Gandolfi, F and Hansson, M., 2010. Reduction-in-force (RIF)–New developments and a brief
historical analysis of a business strategy. Journal of Management & Organization.
16(05). pp.727-743.
Gollakota, K., Gupta, V and Bork, J.T., 2010. Reaching customers at the base of the pyramid—a
two‐stage business strategy. Thunderbird International Business Review. 52(5). pp.355-
367.
Jocovic, M., and et. al., 2014. Modern business strategy Customer Relationship Management in
the area of civil engineering. In Applied Mechanics and Materials (Vol. 678, pp. 644-
647). Trans Tech Publications.
Köseoglu, M.A., and et. al., 2013. Linkages among business strategy, uncertainty and
performance in the hospitality industry: Evidence from an emerging economy.
International Journal of Hospitality Management. 34. pp.81-91.
Martin, N and Rice, J., 2010. Analysing emission intensive firms as regulatory stakeholders: a
role for adaptable business strategy. Business Strategy and the Environment. 19(1).
pp.64-75.
Montgomery, C.A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Peteraf, M., Gamble, J and Thompson Jr, A., 2014. Essentials of strategic management: The
quest for competitive advantage. McGraw-Hill Education.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Tsamenyi, M., Sahadev, S and Qiao, Z.S., 2011. The relationship between business strategy,
management control systems and performance: Evidence from China. Advances in
Accounting. 27(1). pp.193-203.
Woodcock, N., Green, A and Starkey, M., 2011. Social CRM as a business strategy. Journal of
Database Marketing & Customer Strategy Management. 18(1). pp.50-64.
Online
How to Complete a Personal SWOT Analysis, 2013. Available through:
<https://journal.thriveglobal.com/how-to-complete-a-personal-swot-analysis-
2f8769aebd5e>. [Accessed on 28th July, 2017].
Mission statement of Volkswagen. [Online]. Available through:
<https://www.strategicmanagementinsight.com/mission-statements/volkswagen-
mission-statement.html>. [Accessed on 28th July, 2017].
10

11