Business Strategy

This presentation provides an overview of business strategy, including the goals, objectives, and core competencies of a firm. It also discusses the factors that are considered in formulating strategic plans and the effectiveness of techniques used in strategic planning. The presentation includes a SWOT analysis of Volkswagen and an analysis of Porter's five forces model in the automobile industry.

BUSINESS STRATEGY

CONTENT
 INTRODUCTION
 Mission, vision, goals and objectives of the firm
 Factors that have been considered in formulating strategic plans
 Effectiveness of techniques are used in strategic plan
 REFERENCES

INTRODUCTION
Business strategy is defined as firm's plan in order to reach
particular goals and objectives in a certain time period. A
company's policies and strategies will be succeed only if
they lead in an effective manner.

Mission, vision, goals and objectives of the firm
Goals – It is a generic action of end result by having several objectives that
must be achieved in a minim time period. For example- the prime goal
of Shine Retail Ltd. is to provide branded and qualitative services to
their customers for improving their sales and make higher profits.
Objectives – Business objectives can be measurable and may be tangible.
They are developed for short term period. The main objective of Shine
Retail Ltd. is to know customers needs or wants and to focuses on
implementing effective machinery.

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Vision – Visions of a business organisation aids in providing direction so as to
achieve its goals and objectives. The vision statement of Shine Retail Ltd.
is to be a famous retailer company in local areas of UK.
Mission – It is a written document that shows core purpose of the firm. The
mission statement of Shine retail Ltd., is to improve the quality of its
products and services.
Core competencies – It gives a variety of markets to managers and make a
vital contribution to gain benefits from customers by improving sales of the
firm. For example- Shine Retail Ltd. has effective tools and techniques for
expanding itself into new markets.

Factors that have been considered in formulating
strategic plans
Availability of resources and technology - It is the first thing that
must be ensure by the managers so as to formulate effective
strategic plans.
Customers perception - It is the another element, that must be
included in strategic formulation of business entities.
Organisational cultural - It encompasses values, attitudes, beliefs and
behaviour of employees.

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Internal Environment: Survival of a business depends upon its
strengths and adaptability to the environment. The internal
strengths represent its internal environment. It consists of
financial, physical, human and technological resources. Financial
resources represent financial strength of the company.
External Environment: The external environment consists of legal,
political, socio-cultural, demographic factors etc. These are
uncontrollable factors and firms adapt to this environment.

Effectiveness of techniques are used in strategic
plan
Stars – It involves high market growth rate
and high market share.
Dogs – Such products are having low
market rate and also low market share.
Cash cows – These products are having
high relative market share but low
growth rate in market.
Question marks – Low relative market
share and high market growth rate.

SWOT ANALYSIS of Volkswage: -
Strengths
 The widest brand portfolio
among all automotive companies
 Diversification strategy
Weaknesses
 Negative publicity weakening the
whole Volkswagen brand
 The highest recall rate in the U.S.
market
Opportunities
 Demand for autonomous vehicles
 Weakening euro exchange rate
Threats
 Intense competition
 Further fines and damages that will
have to be paid
 Increasing government regulations

Porters' five forces model: -
Barriers to Entry: - Not surprisingly, the automobile industry has large barriers
preventing new firms from entering.
Power of Suppliers: - Suppliers specialize. They produce parts for only one or two
automakers at once, and are heavily reliant on these automakers.
Power of Consumers: - Despite Volkswagen’s large collection of marques, there is
an abundance of brand substitutes.
Availability of Substitutes: - As a result of increasing rising gas prices and
government initiatives to promote environmentally friendly transportation.
Rivalry: - The US automobile industry can be regarded as an oligopoly.

REFERENCES
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.
Auzair, S., 2011. The effect of business strategy and external environment on
management control systems: a study of Malaysian hotels. International Journal
of Business and Social Science. 2(13).