Aligning Business Strategy with Operations and Performance

This assignment delves into the critical aspect of aligning business strategy with operations and performance across various contexts. It covers studies on aligning project management processes to business strategy (Alsudiri et al., 2013), corporate social responsibility in oil companies (García-Rodríguez et al., 2013), the impact of business strategy on firm performance (Chen & Jermias, 2014), and how organizational culture supports business strategy (Eaton & Kilby, 2015). Additionally, it includes research on service innovation strategy alignment (Ryu et al., 2015) and the integration of Six Sigma with business strategy (Cheng, 2013). By examining these studies, students will gain insights into how strategic alignment can drive success in diverse organizational settings.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Assess importance of mission, vision, objectives, goals helps in formulating strategic
planning.......................................................................................................................................1
1.2 Analyse factors that have to be considered while formulating strategic plan ......................1
1.3 Evaluate the effectiveness of techniques to develop strategic business plan ......................2
TASK 2............................................................................................................................................3
2.1 Analyse strategic positioning through organisational audit .................................................3
2.2 Environment Audit of VW AG.............................................................................................4
2.3 Significance of stakeholder analysis in formulating new strategy for VW AG....................5
2.4 Present a new strategy for VW AG .....................................................................................6
TASK 3............................................................................................................................................7
3.1 Analyse the appropriateness of alternative strategies relating to market entry, Substantive
growth, limited growth for VW AG............................................................................................7
3.2 Justify the selection of strategy.............................................................................................7
TASK 4 ...........................................................................................................................................8
4.1 Assess roles and responsibilities of personnel who implement strategy...............................8
4.2 Analyse resource requirement for implementing a new strategy for VW AG.....................8
4.3 Evaluate contribution of SMART targets to achievement of strategy implementation in
VW AG ......................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Every organisation develops its own plans, strategy which guide people to attain set goals
or objectives. These plan of action are made by top level of management and is followed by
every level to reach final destination. Every organisation works upon their vision and mission
which provide them basis of decision making. This report highlights various factors which are
present outside and inside of business institution. Hence, proper examination is required
minimize risks that may be associated with it. Company which is included in this report is
Volkswagen, it is a auto mobile company of Germany. It is considered among world's sixth
largest company as its turnover is very high compared to other companies. Along with this,
importance of vision, mission, goals, targets are also included in this assignment. Proper strategy
are formulated to reach their goals in particular time frame. Hence, formulation of strategy is
also marked under this project.
TASK 1
1.1 Assess importance of mission, vision, objectives, goals helps in formulating strategic
planning
Every company works for attaining their vision, mission that is the reason for their
existence. There are number of importance attached to it. Managers formulate strategy planning
in proper manner. Some are mentioned below:
 Objectives provide basis of taking strategic decision that help in full-filling final set
targets in efficient and effective manner.
 Goals helps in attaining final path that are made to reach final goals.
 Mission formulates the rules and regulations that have to be followed by each individual
in organisation.
 Vision concentrates the future image of any company. Hence, they have set goals that
have to achieved in given time frame.
1.2 Analyse factors that have to be considered while formulating strategic plan

Every business faces cut throat competition from their competitive firms. Hence, it
becomes necessary to scan business environment. It is dynamic in nature and keeps on changing
with passage of time. There are majorly two types of elements that are present internally or
externally. Internal factors are present inside the organisational structure and have control over it.
Whereas, external components are present outside the business institution which is beyond the
control of the system. It becomes mandatory to analyse these factors efficiently and effectively.
These have some pros and cons associated with it. Volkswagen have proper research and
development department which continuously look after these factors and make decision
accordingly. Certain advantages and disadvantages are highlighted below:
Factors Advantages Disadvantages
Internal Factor Employees and workers of
organisation under their
strategy very well, and helps in
full filling the set target in
proper manner.
There can be situation when
personnel do not understand
rules and regulations and find
it difficult to accept it. Hence,
possess some problem in
achieving final targets.
External Factor Technological changes that
take place in external
environment helps in
increasing productivity and
efficiency in organisation
system. Hence, it is a added
advantage for the institution.
There are certain aspects
which changes frequently
hence, company have to
update themselves in frequent
time.
1.3 Evaluate the effectiveness of techniques to develop strategic business plan
Every business develop plan before executing action to work upon set paths. For
formulating plans it is necessary to choose definite methods and techniques which guide in
accomplishing final goals and objectives. There are number of approaches which help in
reaching to final destination.

To establish place in already set market it becomes necessary to take such strategies in
effective and efficient manner. Policies are framed in accordance to Ansoff Matrix, SPACE,
Boston Matrix. These are some approaches that help in making business policy. Among these
three Ansoff Matrix is reviewed as most efficacious element. Business plans can be constructed
by adopting certain techniques which aid in investigating market area:
Diversify in different segments: This step is adopted to expand existing business. For
example, introducing some new products and services in already established market. Consumers
are known as king of market area. Their preferences and tastes keeps on changing with t8ime. In
order to meet their changed requirements, company can adopt such policy.
Penetrating into current Market area: This concept helps in modifying or altering
present condition. For achieving this Volkswagen keeps on changing their strategy related to
price, sales or advertising.
Developing Product: Every company wants to develop their existing products and
services. In order to stand in current situation, it is necessary to keeps on improving quality of
goods. This assists in satisfying needs and wants of customers.
TASK 2
2.1 Analyse strategic positioning through organisational audit
Audit is a process which check existing system of any organisation to find out any
deviations and correct it in proper time. It also helps in evaluating factors (internal and external)
that they are achieving final goals and objectives (Scholes, 2015). If some deviations are find
out, proper measures are taken to correct it. SWOT analysis can be performed to find out the
current position in respect to the market. SWOT helps in finding out Strengths, Weaknesses,
Opportunities, Threats of the organisation. SWOT analysis of Volkswagen is described below:
STRENGTH
 It enjoys high market share as
compared to other brands of auto
mobile industry.
 It offers variety of range of products to
their customers. Ranges include Audi,
Bently and many more.
WEAKNESSES
 Volkswagen lacks in advertising
campaign. Not much is advertised
about this brand in market.
 False publicity in the market hinders
the image of Volkswagen.
 There are already established brands in

 It is among the third largest
manufacturing company brand and
have its branches in almost 140
countries all over nation.
 Volkswagen stand apart in research and
development compared to other brands.
Their research team is highly
innovative and offers different varieties
to their customers.
market having large number of share.
This weaken the presence of this car
brand (Cheng, 2013).
OPPORTUNITIES
 Prices of fuel may rise in coming years.
This helps Volkswagen to make certain
changes in their policy to attract more
and more consumers(Davis, 2012).
 It stands apart from other companies as
they always offer innovative and
developed models to their customers.
THREATS
 Diverse government policies or
regulations may pose a threat to this
company in diverse manner.
 High Competition from other
established auto-mobile organisations.
2.2 Environment Audit of VW AG
Environment audit refers to studying the surroundings of business environment in order
draft policies and procedures according to it. There are number of elements that have huge
impact on organisational structure (Montgomery, 2011). These can be present inside or outside

the business entity. Environmental audit can be performed through PESTLE analysis of
Volkswagen which is described below:
 Political Factor: Every company have to comply rules and regulations framed by
government. They can impose tax rates that may affect revenue or sales volume of
Volkswagen. Different country have diverse rules and Volkswagen is operating in several
countries. They have to face challenges in proper manner (Gupta, 2012).
 Economical Factor: Volkswagen contribute significantly in country's economy.
Company helps in generating employment opportunity for the people and on other hand
contribute some percentage in GDP of nation. Hence, it leads to develop the economy
where it is operating.
 Social Factor: As company is operating in many countries and competition is very tuff.
On the other side, customer's needs and wants are also changing very frequently so it is
require to accept such modifications in momentous manner. It also involves values,
beliefs, moral duties that have to be fulfilled by each company (Campbell, 2011).
 Technological Factor: It is external component that impact the company's performance.
Volkswagen have to adopt changing technologies to keep in pace with the changes that
take place in business world. There are number of tools and methods that are retained by
company to face such state of affairs (Gupta, 2012).
 Legal factors: This component involve various legal issues and aims that have to be
examined in proper structure. It may cause many obstacles to company but they have to
follow it proper manner.
 Environmental Factors: This put emphasis in protecting environment by taking such
policies that promote Eco- friendly activity or products.
2.3 Significance of stakeholder analysis in formulating new strategy for VW AG
Stakeholder refers to any individual or party that have some stake in organisation system.
It can be owner, shareholders, debtors, creditors, government bodies etc. Stakeholders analysis
helps in drawing out certain activities that may impact the action in various ways. Hence, it is a
hard task to look after the needs of stakeholders (Wang, 2012). They have to be remain happy to
achieve final goals and objectives, because they constitute important and critical part of
company.

It is very essential to establish a effective communication system. The success of
company is in the hands of these crucial people. Volkswagen have proper method of
communication system which helps in finding out needs and wants of each individual. Thus,
their needs get satisfied in appropriate manner. Employees always prefer to work in healthy and
conducive working environment. Than, only they can contribute to best of their level. It is
primary obligation to maintain trust and confidence of these people.
There are certain benefits associated with stakeholder analysis, which are mentioned below:
 To find out related risks and problems that may arise in future.
 In order to take strategic decisions that have impact on organisation in long run.
 Leaders can take efficacious decisions accordingly (Parnell, 2012.).
Stakeholder mapping: This concept involves those personalities who are either encouraging or
opposing Volkswagen. It is broader in scope and have multiple dimensions. It is divided into
four stages which are mentioned below:
 Identifying stage: Focus on certain important groups, organisations.
 Analysis Stage: Evaluate interests and thoughts of certain stakeholders.
 Mapping Stage: Collaborating personnel's relationship with company's goals (Li-Hua,
2013).
 Prioritizing stage: Evaluating several issues and determine their impact and effects.
2.4 Present a new strategy for VW AG
Every business system have to formulate certain strategy for to carry out their business
operations. Volkswagen adopts market penetration concept to achieve their final objectives and
content. It can be possible that company can use more than one strategy to run their business.
Other plan of action adopted by company is double marketing for brand positioning. In double
marketing people are aware by delivering messages to rational consumers (Eaton, 2015).
Business environment is keeps on changing hence, company have to update their working
system frequently to respond to the changing needs.
There are certain strategies that are used by Volkswagen is mentioned below:
 Volkswagen have to concentrate on promoting their products in appropriate manner. This
helps in increasing knowledge about their markets in minds of customer. This focuses in

maximising outcomes and sales volume of certain period. They should acquire such
techniques and tools that promote their brands effectually (Ryu, 2015).
 Other strategy involves attracting prospective candidates towards themselves. It is the
employees of any organisation who work for achieving their final goals and objectives.
Workers are considered important asset of organisation as they put their policies into
work. Training and development programs are also implemented to encourage employees
and improve their working style.
Strategy which is adopted must be formulated in such manner that it leads to achieve set goals or
targets (Khalili Shavarini, 2013).
TASK 3
3.1 Analyse the appropriateness of alternative strategies relating to market entry, Substantive
growth, limited growth for VW AG
In order to expand their business, Volkswagen have to work upon various aspects to
establish high market share. Certain techniques which are followed by an organisation are:
Sustainable development Policy: To maintain their position in market area, sustainable
development should be adopted by institution. Their operations and working style should be such
a way that only directs on creating large market portion. Their growth strategy should be drafted
in gaining high gains and share (Goll, 2011). Volkswagen have to develop such type of strategies
that only centres on development in long run.
Limited growth policy: Under this policies market have to choose from four available
strategies like market development, market penetration, product diversification and development.
This is involved in limited growth strategy.
Protection Policy: There can be situation in which firms can face difficult situation
related to losses in some units of their company. Hence, situation of putting down of enterprise
can arise. Additional cost need to be maintained by cutting them to significant level.
Retrenchment Policy: It refers to adverse situation that may arise in their business life.
Under this policy, company have to minimize their expenditures in respect to utilize their
financial resources at proper place. Otherwise firms can become insolvent which is a worse
situation that can be faced (Alsudiri, 2013).

3.2 Justify the selection of strategy
In today's competitive world it is important to formulate such strategies that only lead to
path of success. For this company have to utilize their resources in effective manner. These
resources are limited in nature and have certain characteristics. Volkswagen deals in auto-mobile
sector, here they have to choose such strategies that does not harm them in any way.
Government also takes definite steps in respect to it. They have to align their strategies with their
ultimate goals and objectives than only they will succeed in gaining proper format.
Company have to acquire competitive advantage in their market place. Apart from this,
leaders of Volkswagen have to make such policies and steps that only helps in establishing their
image in customer market place. Like proper adoption of product development or diversification
strategies should be done to present their innovative products in front of people. It also aids in
maintaining healthy relationship with these people. These respective strategies should be
innovative in nature and can be able to stand apart from other company of same sector. This
concentrates on acquiring interest and leads to generation of demand that finally helps in
increasing sales volume (García‐Rodríguez, 2013).
TASK 4
4.1 Assess roles and responsibilities of personnel who implement strategy
Strategic plans are made by senior people of any company. It is mainly formulated by top
level on management that comprises of members of board of directors, senior mangers, CEO and
other crucial persons of the company. Volkswagen have potential team that draft strategic plans
for their company. All these plan of actions always aim in gaining better outcomes and results.
Some essential person helps in framing strategic planning is mentioned below:
 Top level mangers: This category of people execute work in practical way. They guide
their team in aligning their personal interest with organisation's mission and vision. They
only concentrates on making such decisions which are of strategic nature and is always
directs actions for long run. They take thoughts and opinion of staff members that can be
involved in strategic decision making process.
 CEO: CEO of this big company (Volkswagen) should posses qualities. He is considered
senior most person in the company. Every decision which is made, is put into action after

it is legally approved by CEO of the company. He is responsible for drafting policies and
strategies for overall organisational system.
 Prospective Personnel: These persons are constituted in research and development
department of Volkswagen company. They keeps on examining various elements and
factors that need to be improved in reaching to high gains for the company.
4.2 Analyse resource requirement for implementing a new strategy for VW AG
Resources are of various kinds and nature. Effective and Efficient Utilisation of these
resources are very essential in strategic management process (Granados, 2013). After exploring
resources, next step involves allocating in proper place, so that they give maximum outputs as
measured. There are number of resources that are utilized by Volkswagen are:
Resources Explanation
Human resources They are most important part of any
organisation whether it is small size or large
sized. Every instituting require personnel to
carry out operations in practical. Hence, proper
attention should be made to make happy so that
their contribution is at highest level
(Amran,2016).
Financial resources To run business, it is necessary to have
adequate amount of finances with business
organisation. Every activity performed under
this sector involve huge amount of funds.
Hence, the financial manager of Volkswagen
have to make strategic choices very keenly
along with allocation of these resources.
Physical resources There are additional functions that have to be
carried out in the organisation system. For
example, logistics and distribution channel
system, various communication system

through which institution communicate with
their prospective buyers.
4.3 Evaluate contribution of SMART targets to achievement of strategy implementation in VW
AG
Volkswagen have to follow aspect of SMART objectives that is discussed below:
 Maximise sales volume by 25 to 30% in future.
 Frame policies to maximise profitability shares of owners or stakeholders(Chen, 2014).
 Sell those products which have high quality and fulfils their needs and wants.
Action to be implemented In days or in months
To evolve business strategy 10 to 12 days
To acquire finance resources from some origin 12 to 15 days
Gaining strategic specialist 4 to 5 days
Putting these resources at proper place 9 days
Execution the set plans 2 to 3 days
Evaluate and control these plans 1 to 2 days
CONCLUSION
From above drafted project, we can conclude that strategic management process is a
essential part for an company. It specifies vision, mission, goals, strategies that are formulated by
every organisation. This assignment also helps to draw attention on various strategies that are
adopted by Volkswagen to amend their various policies and plans in accordance to changing
business environment. SMART objectives are adopted by company to reach set targets in future.
Importance of environmental and organisational audit also helps in examining various factors
which affect the functioning or organisational system. Number of techniques like porter's 5
forces model and BCG matrix are techniques that are adopted by company to plan and execute
working structure.

REFERENCES
Books and Journals
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