Business Strategy and IT-Enabled Transformation

The provided assignment focuses on the topic of business strategy and its connection to IT-enabled transformation. It includes a list of relevant sources and references from academic journals and books, as well as online articles and websites. The assignment appears to be related to the study of business management and strategy, with an emphasis on how technology can impact organizational performance and effectiveness. The sources cover a range of topics, including resource-based theory, evolutionary theories, digital business strategy, taxes and business strategy, knowledge management capabilities, and social CRM as a business strategy. The assignment seems to be asking for a detailed summary or analysis of the provided sources, possibly with some specific questions or tasks related to the topic.

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategic positioning of enterprise........................................................................................1
2.2 Environmental audit of organisation.....................................................................................3
2.3 Importance of stakeholder analysis.......................................................................................4
2.4 New strategy for enterprise...................................................................................................4
TASK 3............................................................................................................................................5
3.1 Alternative strategies.............................................................................................................5
3.2 Justification of strategy.........................................................................................................5
TASK 4............................................................................................................................................6
4.1 Responsibility of personnel during strategy implementation................................................6
4.2 Resource required for implementation of strategy................................................................7
4.3 Contribution of SMART targets for achievement of strategy implementation.....................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
Business strategy is a long term process or planning which helps the business owner in
achieving the end results of firm. It is a specific management plan which helps in maximising the
performance of business (Astrachan, 2010). In absence of this, it becomes very complex for
company to compete with its rivals and achieve the set goals. Activities and success of business
get affected by various factors that exist in the business environment some of which are internal
while others are external. Business strategy helps in reviewing these factors and tries to make the
business performance more effective. As per the given case, Jack &Jerry has been chosen in
present report which is one of the biggest manufacturers of automobiles. At present, company
serves its customers in more than 150 countries with high quality products. Present report is
based on the way in which strategic planning of company gets affected by its vision, mission and
business objectives. Along with this, various strategies and factors affecting the overall business
of Jack &Jerry are detailed under this report.
TASK 1
Covered in PPT
TASK 2
2.1 Strategic positioning of enterprise
Organisational audit is a process of adding values to the activities of enterprise and
improve the overall performance of organisation by evaluating it or by doing consultancy. It
helps in knowing the various capabilities of firms including financial and infrastructure and than
make appropriate strategies for achieving the end results. For doing this organisation can use
SWOT because it is an effective tool for enterprise because it help firm in identifying its various
strengths, weakness, opportunities and threats (Bharadwaj and et. al., 2013). SWOT of
Volkswagen can be understood by the following:
Strengths: These are the unique characteristics of enterprise which make it different form its
rivals. Following are the main strengths of Volkswagen:
 Volkswagen offer a variety of products to its customers with high quality.
 Company use an appropriate and ethical method for performing its activities which helps
firm in achieving smoothness in its business operations.
 Firm expand its activities in large number of areas.
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 One of the main strength of Volkswagen is that company has a string brand image in the
market.
 Quality and unique products of the company attract large number of customers.
 Company execute all its business operation in ethical way which help the firm in solving
its day to day conflicts. Innovative or unique, research and development department of the firm help in
identifying the changing needs and wants of the customers.
Weakness: Following are the main weakness of Volkswagen:
 Large number of rivals of the firm is one of the biggest weakness of the Volkswagen.
 Parent brand of the company fails to gain that much effectiveness or public confidence
which affect the sale of products of Volkswagen.
 Lack of competencies of current staff of the enterprise is also a weakness of the firm
which affect the quality of firm's offering. Manpower of the company fails to meet up with the special requirement of the public and
all this create a negative image of the company in mind of its stakeholders.
Opportunities:
 Increasing scope of technology provide opportunity to the firm to expand its business
activities and enhance the efficiency of its business operations.
 Now a days demands and wants of customers are changing at a fast speed which provide
an opportunity to firm to get the advantage of this by providing them the special features
products. Innovative products help firm in attracting large number of customers.
Threats:
 Increasing number of competitors is one of the main threat for Volkswagen.
 Case of Emission scandal negatively affect the positive brand image of company.
 Company right now facing a problem of following the rules and procedure set up by the
government.
2.2 Environmental audit of organisation
Environmental audit is a process of identification and evaluation of all factors exist in the
external environment of business. All these factors and change happen in these factors affect the
activities and operations of enterprise in various ways (Campbell, Edgar and Stonehouse, 2011).
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This type of audit help business firm in formulating effective business strategies for achieving
the end results of business. For identification of these factors and its affect on the business
operations firm can do the PESTLE analysis. PESTLE analysis of Volkswagen can be
understood by the following: Political factors: At present the company is facing lot of political issues which affecting
the activities of company. Main reason of facing political issues is the expansion of firm
activities in various nations. Every country has its own political rules and regulations and
of firm wants to execute its business operation there than it become necessary for the firm
to follow the set rules and standards of government. All these factors affect the activities
and quality of company's product so it become necessary for firm to evaluate the political
factors and its effect on various activities of business. Economic factors: Interest rate, ware rate, rate of inflation and deflation all come under
the economic factors which affect the operations of an enterprise. If interest rate or rate of
loan will decrease than it will beneficial for firm to expand its activities in other areas or
nations. On the opposite situation it become little harder for the firm to expand its
activities because increasing rate of loan will indirectly increase the final price of the
firm's product which will decrease the demand of the product. Social factors: Social factors include the trends exist in the market and these trends affect
the demand of the product. Increasing interest of people towards the product of
Volkswagen will increase the sale of its product. Technological factors: It refers to the technology exist in the market. For achieving
success it become necessary for enemy company to make or deliver updated products to
its customers (Casadesus-Masanell and Ricart, 2010). As Volkswagen use various
technologies to deliver highly updated products to large number of its customers. Legal factors: laws and regulation exist affect the process of company. Every
organisation become bound to follow these in order for legal existence of its operations.
In case of Volkswagen firm is liable to correct its mistake of Co2 emission.
 Environmental factors: Volkswagen made environment friendly vehicles for the
betterment of environment. It should be noted by the firm that they should use good
quality material to not create any environment related problem.
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2.3 Importance of stakeholder analysis
There is no doubt in it that Volkswagen is one of the popular manufacture of automotive
products and produce or offer large variety of products to its customers (Eccles and Krzus,
2010). Large number of employees are there working in the enterprise for achievement of mutual
gaols. Stakeholders are the individuals or groups which contribute a lot in the success of
enterprise by providing various facilities including consulting financial and many more. Analysis
of stakeholders is an important for a business because it helps business manager in taking
effective important decisions related with the business. For example increase in the financial
resources of the business, in this situation manager become responsible to take effective
decisions like ion which activities of business the fund should be invested and many more. Like
the same on the demand of special requirements by a client in this, company gas to add that
specific features in the final product. All these help business in better satisfying the needs of
different stakeholders and at the same time increase the effectiveness of business activities.
By doing the analysis of different stakeholders and their wants Volkswagen can give
shape to its business activities in order to gain the trust of all of its stakeholder and at the same
can capture a greater market share.
Main stakeholders of VW can be understood by following points:
 Employees: Workers play a significant role in success of compass as these are the one
who execute and perform various business operation. These are the one who help
enterprise in achieve it set goal and objectives in an effective way.
 Shareholders: It is very essential for managers of VW to analyse the interest and needs of
stakeholders.
 Suppliers: Individuals who supply raw materials to firm are known as suppliers. It is very
important for firm to create and maintain good relations with them as quality of raw
material decide the quality of finish good.
 Government: Rules, regulations and policies which government make directly affect the
company's operations and impact on its productivity.
2.4 New strategy for enterprise
Increasing number of contamination in water and air it become necessary for every
company in the UK to make environment friendly cars. Companies can not make cars or vehicles
producing lot of pollution and hampering the environment. This is done in order to save the earth
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from any contamination. A fact has described that that cars running on diesel cause
contamination to earth. Volkswagen made these type of cars and after revealing of this fact
company has to modify this feature of car. For this, company do the work to make electronic
based cars (Elliot, 2011). This is one of the effective and best idea. These type of cars maintain
the environment and does not harm it. This is one of the best solution of environment problem.
By doing or executing this idea Volkswagen can give its best to its customers
TASK 3
3.1 Alternative strategies
There are numerous number of alternative strategies which can be adopted by
Volkswagen for entering into new market which are given below- Substantive growth- According to this, organisation can capture new market by
integrating itself with other firms which can be done either horizontally or vertically. In
this, organisation acquires or merges with another company and together stars a new
venture (Hahn, Kolk and Winn, 2010). This tactic is very helpful for that enterprise
which wants to expand their business into new or other sites. In given scenario, VW AG
wants to make strategy for its new venture which will manufacture electronic cars for
United Kingdom. If it will target the new market then in this case, this tactic will be
beneficial. Limited growth- It includes various types of tactics which aid in achieving the desired
result or outcome. Such as product development, innovation, penetration and
combination of all strategies. VW AG can adopt innovation in its products by introducing
electronic system in its new products. For increasing their sales and revenue, it can adopt
joint venture strategy in which two or more organisations works together and shares their
resources or capability for attaining the common goals and objectives.
 Retrenchment- This concept suggests that organisation should shut down their those
ventures which are not producing the desired result or outcome. In simple terms, it can be
said that that unit which are not generating any kind of profit should be withdrawal by
company from the market so that it can save their money and this amount should be
invested in other profitable venture so that it can attain its desired result (Haley, Haley
and Tan, 2011). So it is advisable to VW AG that it should retrench the non profitable
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units from the market. In case of any kind of inefficiency, retrenchment can be done in
three ways which are cost reduction, revenue generation and assets reduction strategy.
According to the given scenario, VW AG has adopted limited growth strategy because it
is doing two major joint venture in China. It is adopted by it for capturing the large market share.
3.2 Justification of strategy
As Volkswagen right now is facing various business problems and issues it is very
necessary for firm to choose an effective strategy to solve these issues. As per the current
situation it will be helpful for the firm to produce or use better engines in the car and at the same
time company can give focuses on the concept of electronic car. As in UK ans US company is
facing the issues like high pollution and scandal (Li and Tan, 2013). Legal or higher authorities
are trying to investigate the method or approach used by the firm. Government evaluate the
efficiency of the car and how environment friendly the car is.
For growth, company is liable to follow all rules and regulations of UK government in
order to increase the level of carbon emission and at the same time fulfilling its social
responsibility. Company can capture a greater market share and at the same time can solve all the
issues arising by using the limited growth strategy. All this will help firm in achieving the
efficiency in its business operations and enhance the effectiveness of its business activities by
doing joint venture with the china.
TASK 4
4.1 Responsibility of personnel during strategy implementation
Strategy implementation is the process of applying the new methods or process for
accomplishment of business objective and increase the positive image of company. During this
process personnel of enterprise ply an important role. Roles and responsibilities of employees or
workers of enterprise increase during the strategy implementation (Melville, 2010). For getting
the effective results it is very necessary that all tasks should be performed with efficiency.
Different personnels of Volkswagen need to perform their duties as per the plan in order to face
the impact of various penalties or punishments. Following are the main roles and responsibilities
of personnel of Volkswagen include the following:
 Managers: These are the people who implement the strategies in business organisation.
Managers of enterprise plan, organise various business activities, along with this perform
the staffing function. During the process of strategy implementation managers can help
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the firm in achieving effective results by properly supervisor the subordinates and its
activities. Roles and responsibilities of managers can be understood by the following
points:
 Identification of current trends and than doing the changes in the process or methods of
the enterprise.
 Communicate all changes with the workers. Use various incentives for motivating the workforces for increasing their output. Employees: These are the one who work on various methods introduce by the firm. As
these are the one who made final products for the customers so commitments of
employees is must for success of the strategy implemented (Meskendahl, 2010). In the
case of changing methods or process of doing the old work employees should need to
understand the motive of enterprise behind introducing such a idea and should contribute
toward its implementation. Engineers: These are the one having expertise in technical field and do the necessary
changes in the manufacturing units to meet up with the expectations of customers. It
become very important for such people to timely do the changes so that quality of
products can be maintained by the firm and firm can do the further changes for getting
effective results of strategy implementation.
 Expatriates: Employees who go to or transfer to other places for accomplishing the
specific goals of the enterprise come under this category (Mithas and Lucas, 2010). This
is done by the company for solving the international issues.
In order to get the maximum output its is very necessary for all the personnels of
Volkswagen to perform their duties in an effective manner.
4.2 Resource required for implementation of strategy
For successfully implementing any strategy every enterprise need large number of
resources. In absence of these resources Volkswagen will fail to get the effective results.
Following are the main resources which would be required by the Volkswagen for implementing
the strategy. Financial resources: Financial resources are one of the important and necessary part for
successfully implementing any strategy. For effectively implementing the strategy
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Volkswagen can raise funds from various sources including banks, shareholders, other
financial institutions and many more. Human resources: These are the one who play an important role in effectively
implementing the strategy. Employees perform their job roles and responsibilities and
help enterprise in fulfilling the target (Montgomery, 2011). Volkswagen can give training
to their workers for enhancing their skills and to get their engagement in the activities of
enterprise. Physical resources: Building, furniture and machinery all are come under the fixed
resources required by the firm for successfully implementing the strategy. All these are
required by the firm to complete the work in time.
 Special tools and techniques: Special tools and techniques are required for completing
the work in time (Scholes, 2015). For manufacturing innovative and quality products
Volkswagen can use a special method for completing the task.
4.3 Contribution of SMART targets for achievement of strategy implementation
Implementation of strategy is from one of the complex tasks of business enterprise. For
achieving ease in this process and for eliminating all the hurdle coming during execution of
strategy, analysis of environmental factors is necessary and must. For this Volkswagen can use
the concept of SMART targets. This can be understood by the following points: Specific: It means all goals and objectives of enterprise should be clear and specific. This
clarifies roles and responsibilities of employees and eliminate the confusion. This help in
proper utilisation of firm's resources. Measurable: This state that targets or goals which are set by the firm should be
measurable in terms of numbers. This help firm in knowing the operations or products
generating large amount of profit for the firm. Acceptable: It means goals and target of the company should be acceptable by all
members of enterprise (Smith, Mills and Dion, 2012). This help manager in gaining the
involvement of workers. Mutual and competitive gaols create healthy and interesting
work environment. Relevant: This means all methods, process, objectives which are used by the enterprise
for completing the tasks should be relevant.
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 Time bound: A time period should be fixed by the firm in which assign task should be
completed. This will save the time and unnecessary cost of the enterprise.
By creating or making SMART targets Volkswagen can make or deliver better quality
product for its customers and can create large number of profits.
CONCLUSION
From the above information it can be concluded that making an effective business
strategy and implementing the same is one of the important function for Volkswagen. By doing
this firm can deliver quality and innovative products to its customers and can capture a larger
market share than its rivals. Along with strategic planning can also be done by the firm for
effectively utilising all the resources and funds. During this all external and internal and external
factors of business environment should be considered by the firm. As involvement and
participation of employees are needed so managers of company can get employee's involvement
by using rewards and incentives. Overall for getting a competitive position in the market and for
building the positive brand image in the mind of customers company can do the strategic
planning . For making a effective strategy business strategy firm can identify and evaluate all
factors exist in the business environment.
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REFERENCES
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