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Business Strategy Report of Volkswagen

   

Added on  2020-07-23

14 Pages3273 Words69 Views
Business Strategy
Business Strategy Report of Volkswagen_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Covered in PPT...........................................................................................................................1TASK 2............................................................................................................................................12.1 Strategic positioning of Volkswagen by carrying out organisational audit..........................12.2 Environmental audit for Volkswagen...................................................................................22.3 Importance of stakeholder analysis when formulating new strategy....................................42.4 Strategy for Volkswagen.......................................................................................................5TASK 3............................................................................................................................................53.1 Appropriateness of alternative strategy for enterprise..........................................................53.2 Justification of selected strategy...........................................................................................6TASK 4............................................................................................................................................64.1 Roles and responsibilities of personnel charged with strategy implementation...................64.2 Analysis the resources required for implement a new strategy.............................................74.3 Contribution of SMART targets in achievement of strategy implementation......................8CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
Business Strategy Report of Volkswagen_2
INTRODUCTIONBusiness strategy is known as a sequence of steps which an enterprise follow to achieveits end goals and objectives. An effective business strategy is must for every company. Basicallyit is a plan, decided by top managers of firm for enhance profits of business and performance ofemployees (Alsudiri, Al-Karaghouli and Eldabi, 2013). Business strategy is an integral part ofevery business as it help business in find new ways to complete business operations. Withoutbusiness strategy it become complex and difficult for enterprise to fight in market. For formulatea effective strategy it is very essential for manager of firm to collect information about variouselements which affect business operations. Volkswagen, a biggest manufacturer of automobilesbased in UK is taken under this report for study. Various components such as vision, mission andcore competencies of business and how all these elements affect the strategic planning of anenterprise is given under this report. Effectiveness of various techniques use for develop astrategic plan and environmental audit of Volkswagen is also done in this report. Roles andresponsibilities of employees during implementation of business strategy and how SMARTobjectives contribute in achieve end results and goals of company is all mentioned in this report. TASK 1Covered in PPTTASK 22.1 Strategic positioning of Volkswagen by carrying out organisational auditProcess under which manager evaluate every business activity in order to achieve endresults and goals is known as organisational audit. Feature of this audit is that it provide anopportunity to manager to collect huge amount of information about various business operations(Azar,2011). There is a tool called SWOT analysis which can used by managers of Volkswagenfor carry out organisational audit.Strengths: These are the competencies of enterprise which ensure effective execution of businessoperations and also provide competitive advantage to company. This attract more number ofcustomers towards company's products and increase number of profits of company. Strengths ofVolkswagen includes the following:Brand portfolio of Volkswagen is one of the larger among all companies of automotive.Firm sells its product under 12 various brands. 1
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Due to various external pressures and in the wake of emission scandal, firm has introducea new strategy to introduce electric vehicles by 2025. Diversification strategy of Volkswagen is very effective and this increase the revenue offirm. Wide portfolio of company allows its to target number of customers form varioussegments and satisfy their needs. Synergy between various brand is one of the biggest strength of Volkswagen. Differentbrand of Volkswagen including SEAT, Bugatti, Lamborghini and many more help firmto access various markets and increase sales of company. Weakness: Negativity publicity weakens the brand value of Volkswagen. Firm was found guiltyin many countries which results in fined the firm.Vehicles of Volkswagen have highest call rate in US market among all automakers. Highrecall rate results in additional costs and disappointed its customers. Better qualitycontrol must be implement by firm t minimise this.Low market hare in automotive market in US. Opportunities: Fuel prices are expected to be rise in future and this rise in proce provide benefitto those firms which have strong SUVs. Volkswagen didn't invest into line of trucks so firmcould introduce electric vehicle. Volkswagen can acquire skills and abilities with help of acquisitions. In order to developa new plan firm will have to develop new skills.Image of firm has been damaged by its emissions scandal. If firm to regain all itscustomers and stakeholder firm could increase its efforts in sustainability.Threats: Intense competition from various automotive firms is one of the biggest threat forVolkswagen. Various companies such as Tesla make it hard for Volkswagen to compete in thesegment of electric segment. Increased regulation of government is another threat for Volkswagen. Variousgovernments are committed to reduce greenhouse gas and due to this there is always arisk that this increase production cost. 2.2 Environmental audit for VolkswagenEnvironmental audit is a procedure in which manager of firm identify the elements existin environment and impact of those elements on business activities and outcomes. This audit2
Business Strategy Report of Volkswagen_4

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