Business Strategy Analysis and SWOT

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This assignment involves a comprehensive review of business strategy analysis, including the identification of strengths, weaknesses, opportunities, and threats (SWOT) for personal and organizational development. It also covers various business strategies such as digital business strategy, customer relationship management, and emission-intensive firms regulation. The assignment provides insights into resource-based and evolutionary theories of the firm, adaptable business strategies, and the relationship between business strategy, management control systems, and performance.

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BUSINESS
STRATEGY

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Evaluating strategic positioning with the help of organizational audit.................................1
2.2 Environmental audit for Volkswagen...................................................................................2
2.3 Importance of stakeholder analysis when developing new strategy.....................................3
2.4 Developing new strategy for Volkswagen............................................................................4
TASK 3............................................................................................................................................5
3.1 Suitability of alternative strategies which are linked with market entry and growth...........5
3.2 Selection of Strategy.............................................................................................................6
TASK 4............................................................................................................................................6
4.1 Role and responsibility of an personnel related with strategy implementation....................7
4.2 Analysing resource required for implementing a new strategy............................................7
4.3 Contribution of SMART targets to the achievement of strategy implementation...............8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10
..................................................................................................................................................11
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INTRODUCTION
Formulating plans and policies are important for every business organisation. This is
beneficial in the achievement of growth and objectives of firms which helps in their growth and
development. Business should plan its strategies which are helpful in achieving lengthy
retentions so that they can easily carry out their business operations in an effective way. All the
activities of firms should be carried out in effective ways in order to achieve business goals. The
people who are involved in business have the charge of implementing strategies which are useful
for business operations. Effective resources should also be used at the time of implications of
new strategy. Present report is based on Volkswagen group which is the leading company in
auto-mobiles. They have developed effective strategies which are helpful in managing the funds
for strategic planning. VW emission scandal has also been included in it (Acquaah, 2014).
Effective strategies should be implemented which are helpful in making effectual business plans.
Report contains the study about value of stakeholders while framing different business policies,
evaluation of alternative strategies which are linked with new market, retrenchment, growth and
development of business.
TASK 1
TASK 1
1.1 Business mission, vision, goals inform strategic planning
Every business firm has their decided mission, vision and goals which they wants to be
achieve in future so that they can get success in competitive market place. Volkswagen is a
automotive company which provides vehicles and auto-mobile services and facilities to
customers. There are a mission, vision, core competencies, objectives and goals which helps at
the time of making the strategic plans.
Mission
Mission is an important function that helps in meet the desired prospect of stakeholders.
It helps in running and controlling a business smoothly and in an effective way. With the help of
making a mission a business firm can be identify their buyers and also know the range of its
goods and services. A mission is very necessary for a business enterprise and with the help of
this manager can motivate its employees to work in a team. In the context of Volkswagen
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company, is to become of the leading enterprise in UK. Also wants to achieve their sustainable
objectives in effective manner.
Vision: In the context of Volkswagen company, it wants to provide eco friendly Chiles and
better auto mobile services to customers.
Goals: In the concept of Volkswagen company, the major goals of this enterprise is to
expand their business at national and international level. Another one goal is to be leader of auto-
mobile company in the competitive market place.
Objectives: Goals and objectives are not same, they has some difference. Objectives is
mainly related with progress of company, in which necessary to decide target goals in effective
way.
Core Competencies: Hence, core competency of Volkswagen company, is to make some
difference in their working and smart features in vehicles so consumers can significantly
differentiate from major competitors.
1.2 Factors that have consider when making strategic plans
While preparing any strategic plan for the Volkswagen company,so that there included
several factors which directly impacts on business firm either positive or negative in nature. Due
to the same, it is necessary to determine and identify all these factors in an effective manner.
Future Targets: it is required to be decided target market by the company so that they
can decided their future goals and objectives in a effective manner. For making an effective
business strategy, company should effectively decide and clarify all major mission, vision, goals
and objectives of the firm.
Current market situation: Another factor is market situation and condition which has to
be analysed carefully. As per the market trends, firm should develop efficient business strategy.
Apart from this, market condition and situation plays important role because its uncertain in
nature.
Customers: The last one factor is the consumer behaviour, it is necessary to properly
analyse in effective manner. Then should provide better quality of services to them as per their
needs and requirements. While consumers of the company has fully satisfied towards their needs
and requirements so that respectively increased profitability and productivity of business firm.
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1.3 Various techniques in term of strategic plan evaluation
There are different techniques which are used by organisations in order to achieve there
goals and objective in effective ways. This can be achieved with the help of BCG matrix.
This business consist of two different axis which are related with market growth and
market shares.
Stars: They had high growth and market shares. They can earn huge profits in
comparison with the other businesses. These business does not need to carry out any promotional
activities.
Cash Cow: They had high market shares and they had lower growths. The business
should invest there money in these business in order to achieve high growth.
Dogs: They have low market shares and growth rates in relation to other business. These
business should be removed from the market places. These companies are not able to earn huge
profits thus these business should be stopped.
Question Mark: They are also refereed to as problem child. They had high growth rates
and there market shares are low. The company had opportunities to earn huge profits.
TASK 2
2.1 Evaluating strategic positioning with the help of organizational audit
Evaluation of Volkswagen
Internal audits are essential for every business Volksweagon because it helps them to analyse all
the risks which can direct at work place, operation involved in business and governments are
taking initiatives so that operations are carried out in effective ways. People who are involved in
this process have the responsibility of keeping records so that they can easily manage all
activities and maintains a positive image of firm in the eyes of their stakeholders.
Another element is related with conducting SWOT analysis in order to analyse the
strengths and weaknesses of firms. This helps in analysing all the factors which will affect their
business operations. This is helpful in analysing all the opportunities that can be achieved by the
business. Threats are helpful in developing backup plans which are useful in solving the
problems (Astrachan, 2010).
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Strengths: Volkswagen had established clear goals for its company if they want to
segment their enterprise in different business. It has been evaluated from the past 3 years that its
revenues are constantly increasing. The rise in profit ratios is relatively low but they are able to
manage all there profits in effective ways. They are also involved in social activities as the
company
Weaknesses: Their pricing structures get disturbed as they are having large stock which
is unsold. Also, operations of company are mainly affected by different business approaches
which are not suitable for them in increasing their profits. Competition at market place is also
another factor which hampers the growth of firm. Thus, they had noticed decrease in there profit
ratios and revenues as compared to the last years.
Opportunities: They had open opportunities to explore their business operations by
entering into new market segments. They should develop those business strategies which are
helpful in there growth and development. Thus, business activities can be expanded into new
areas which help them in achieving the growth ( Bork, 2010).
Threats: Firm’s main difficulty is that there is continuous improvement in technologies
and company is not able to adopt there working according to the new technologies. They are
facing hard competition from other firms who are dealing in the same sector.
Another aspect is linked with building teams for effective planning in order to control all
those factors which are harmful for the Volksweagon and generate risk. All elements are
included which are helpful in developing effective risk management systems.
2.2 Environmental audit for Volkswagen
In the year 2015 on 18th September, there were difficulties which were faced by firm in
relation to the cars which were manufactured by them were emitting pollutions in huge amount
and this complain was not a good sign for business.
The pollutions which was coming out from vehicles had affected health of persons and
also destroys the natural environment. This was the major danger at that time faced by firms. To
solve this problem, management had taken steps to develop plans for manufacturing new cars
which will not emit pollution in large amount. The new cars will pollution free according to new
strategies.. It is essential to conduct timely audit for auto mobile Volksweagons in order to
increase their profit ratios. In order to conduct environmental audit, it is essential to know about
the external environment conditions with the help of PESTLE analysis which is stated as below:
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Political environment: If the selected firm wants to move from their native country to
another place then in this situation, it has an advantage of getting less restrictions which will
influence their business operations as well as tax rates imposed by government officials are also
less for auto-mobile industry.
Economic Factors: If there are changes in economy then it will affect the activities of
Volksweagons and they will not be able to achieve growth in their business operations. If there is
inflation then products will be sold at high prices thus firms will not be able to achieve
profitability.
Social environment: As company made new plans for manufacturing pollution free cars
this helps in increasing sales rapidly as most of the persons were ready to purchase their branded
cars. They kept prices of their products economical so that middle class people can also easily
purchase the same. This helps in the achievement of growth and development for business and
thus, their sales ratios also increased eventually.
Technological changes: The technological changes should be adopted by business so
that they can easily produce the products according to new technologies in order to increase sales
or profit ratios. This can be achieved if business focuses on adopting new machinery or make
modifications in their production process. For maintaining sufficient stock at workplace,
effective information management system should be developed which is called as MIS and
various systems which are linked with technologies like data base should be established by
Volkswagen.'
Environmental Factors: The products which are designed by Volkswagen should focus
that they should not destroy the natural beauty of environment. They should make plans in order
to protect the protect the environment so that resources can be conserved for future time period.
Legal environment- This is an important factor for firm and business should execute
their working under this aspect. In this, the selected firm has to follow all rules and regulations
which are enacted by the court. Compulsory tax imposed by government should be paid on right
time intervals as well as all the policies which are linked with health and safety of employees
should also be adopted effectively (Gandolfi, 2014).
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2.3 Importance of stakeholder analysis when developing new strategy
Stakeholders are important elements for any business Volksweagon. There are different
types of stakeholders operating in Volkswagen such as shareholders, employees, customers,
group members, society etc. There roles and responsibilities are different from each other
according to there positions. These plays an important role in achieving growth and development
for firms. They are also known as stakeholders mapping. They play an important role in the
decision making process. There can be new strategies formulated by Volkswagen to convene all
the stakeholders who are operating business activities in order to work according to the new
plans. These strategies can be effective if they were formed by analysing about the values of
stakeholders. These strategies should be helpful in satisfying needs and wants of there customers
so that all the business activities can be carried out in desired ways which ensures good results.
The company should focus on providing satisfaction to all there stakeholders and support them in
there activities so that they can increase sales for firms. Analysing stakeholders is vital for
business in order to ensure their satisfaction levels. The management should also be aware of the
skills and the capabilities of there employees.
Example: The strategies are formulated by stakeholders by conducting research and
development activities and they are valuable in order top achieve competitive gains at market
places. They know the importance of team management and thus they are working in a team by
making coordination in their work plans in order to achieve good results
The core competencies are helpful in achieving the aims and objectives and to maintain
healthy work environments. The growth of business can be achieved by using skills, knowledge
and abilities of all there employees in order to effectively execute there business operations.
(Edgar, 2011).
Stakeholders analysis are also helpful in knowing about the recent trends at market places
so that company can manufacture products according to taste and preferences of customers. They
provide good review to company so that company can grow. The new strategies can be
implemented if there will be sufficient money for implementing the new strategies which are
designed by Volksweagon. This helps in build trust and confidence with employers and the
managing director who is looking after the business of Volkswagen. It is helpful in
understanding the laws with linked with legislation and policies.
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2.4 Developing new strategy for Volkswagen
The new strategies will be developed with the help of stakeholders as they will give there
ideas which are helpful in implementation of strategies. Effective strategies are helpful in
achieve growth and increased in profit shares for firms.
The new and effective strategies which are designed for cited firms are described as :
It is the responsibilities of mangers to take care of all the stakeholders which are
operating in business Volksweagons. They are the true owners under which there business are
running and they are successful in earning huge profits by manufacturing pollution free and
luxurious models of cars.
The strategies should be framed which are helpful in fulfilling the needs and demands of
there customers like they are demanding good quality cars with all facilitates in order to give
satisfaction to clients. They are focusing on adding new features to there different models of cars
according to innovations in technologies (Campbell, 2011).
All the employees who are involved in business operations should be motivated so that
they can carry there business operations in effective ways. If they get appreciation from there
higher level authorities than they will focus on achieving all goals of Volksweagon and creates
positive environment at work place. This is good tool in motivating employees in order to
provide effective services.
Thus management had to ensure that they make effective plans and policies in order to make new
strategies which are helpful for the company and there employees. Thus it is the sole
responsibilities of mangers to implement new plans and strategies.
TASK 3
3.1 Suitability of alternative strategies which are linked with market entry and growth
Evaluation of alternative strategies are helpful in generating good opportunities in order
to resolve all the problems which are faced at business organisation. If the firms wants to achieve
growth and success than they had to design all the strategies which are linked with marketing
factor. If the firms adopts the policies to enter into new markets than it will helps in increasing
there market shares. This helps in retaining there existing customers and developing new
customers who can increase there market shares. The ways to adopt new strategies includes
merger, acquisition, joint ventures etc. Mergers take place when two business who are dealing in
same operations agree to work together by sharing there true values. The size in relation to which
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the business activities are increasing are also equal of both the business. Joint ventures is related
with the concept when two business are run there operations in order to achieve their goals and
objectives which are linked with common projects. Acquisition is related with the concept when
one business adopts the shares of the another companies in order to run there business effectively
(Jocovic, 2014).
Limited Growth Strategy: There is an advantage of this strategy that it ignores all the
debt that are linked with firms and helps in increasing there profit and productivity of business
operations. This is helpful in increasing equity shares of firms and decreasing the number of
debts.
Substantive Growth Strategy: This strategy is very helpful in increasing the market
shares of selected business. If diversification in business is not equal than there arises the
concept of horizontal and vertical integrations. This strategy is mostly applied on mergers,
acquisition, joint ventures and not on organic growths. This strategy is formulated keeping in
mind all the strategies which are adopted by the competitors. This strategy is helpful for
Volkswagen so that they can achieve comparative advantages at the market places.
Retrenchment: This strategy is linked with making financial organisation more viable by
cutting the cost of one or other business operations. This is an important tool as it helps the
organisations to become more financial viable. This strategy is adopted by Volkswagen as they
can easily cut down the cost of business operations which are not helpful in increasing there
profits. This is useful in maintaining there financial stabilities in order to carry there work
process.
All the above discussed factors are important in order to achieve financial growth and
development of business rather than harming the issues which are affecting the business
operations.
3.2 Selection of Strategy
To build a successful marketing process, finance is essential. According to an analysis,
Volkswagen company in market is playing a vital role in auto-mobile industry. It has a good
increment and productivity gain in business and company has to instruct its business strategies
regarding their marketing approaches and strategies. It provide help in building a better and
efficient marketing strategy in a certain method. The development planning helps in growth and
production activities and also facilitates development in product to attain success. This help in
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achieving success in various implementation of business strategies. By which company can serve
their costumers and beat competitors by giving them strong competitions. It boost revenues of
company and understand costumer requirement and wants from organisation. Making an
appropriate decision in order to achieve targeted costumers may be completed with such
activities (Bork, 2011).
Various roles and duties which manager have to complete for people of organisation.
Employees and employers are essential bodies of organisation which play a vital role in success
of any organisation and its achievement by modifying their skills, abilities and actions according
All component are very necessary at the time of develop fresh and impressive enterprise scheme
for Volkswagen industry.
The best and most suitable strategy which can be implimented by volkswagen is Limited
growth strategy as they are valauble in order to apply innovative technologies at work place by
which there productivity and profitability factors can be greatly enhanced. This is an effective
strategy which implies that all the resources which are availble in economy should be used in
most effective and planned ways in order to gain success in growth and business operations.
Volkswagen should make plans so they can easily expand their business operatiosn by making
entry in new markets. Thsi is also valauble factor in order to gain competative advantages at
market places.
TASK 4
4.1 Role and responsibility of an personnel related with strategy implementation
It is essential for the company to make a proper implementation of strategy for the
betterment of the organisation so it is essential for the company to give responsibilities to those
which are responsible for the organisation. As Volkswagen wants to improve their market in the
UK so it is essential for them to implement this strategy in a better way. So here is some people
which are responsible to make a better change in the organisation by implementing this new
strategy in a better way. Some people are here which are responsible for im0plementation of
strategy;
Managers: These are the main people to implement strategy in a better way, business expansion
is essential for the company so managers are the person who are able to implement this strategy
in a better way. Managers are having all abilities and knowledge of organisation standards which
can help to make a better implement of the strategy.
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Leaders: Volkswagen is an international company and they are having a huge needs to make
changes and these people can guide to subordinates to make changes in organisation according to
new strategy (Gupta, 2014).
Team leaders: These are people which are having skills to make a proper control on the team,
Volkswagen is having different team and each team is having a team leader so it is essential for
the company to give this responsibility to team leaders to make a better change in organisation.
Team leaders are having potential to make changes and different teams like marketing and
finance team leaders can communicate to each other to implement this strategy in a better way.
Lower level of employees: Company can give them duty to implement this strategy, they can
work as a supporter which can help to company to make a better change in the position of
company.
4.2 Analysing resource required for implementing a new strategy
To implement new strategies at market place the selected business requires those
strategies which are helpful in development of products and market places. With effective
resources business will not be able to carry out there operations in planned ways. These had to be
targeted by the company in order to execute effective strategies.
Financial Resources: It refers to the financial abilities of the companies to mange there
finances in effective ways in order to carry out there business operations in an effective way.
These funds are needed for buying new machinery and equipment, giving salary to there
employees and purchasing raw materials which are needed for caring out business operations in
planned ways.
Example: Volkswagen had to make plans effectively in order to implement new strategies which
are beneficial for firms. These resources includes managing and raising the funds which are
effective for business operations like finance and human resources.
Human Resources: This is the vital resource as the firms requires effective manpowers
who have the potential to carry out there business operations in systematic and planned ways.
They should be loyal in adopting the new strategies so that it can easily increase profit for firms.
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Technical Resources: It refers to the machinery which are used in production of goods
and services. Thus the selected firms requires unique and innovative technologies which are
needed for manufacturing the products.
Raw material: It is the most important resources which are required for manufacturing
the products in an effective way. If the raw materials are not available in proper quantity than it
will affect the whole manufacturing process (Edgar, 2014).
4.3 Contribution of SMART targets to the achievement of strategy implementation
In achieving results and conclusion in designed way SMART technique is utilized by
Volkswagen. The SMART goals set some constituent that ensure evolution of Volkswagen
toward certain way. In order to acquire settled judgement of definite strategy with procedure of
preparation and implementation, SMART method defines purpose of organisation. SMART refer
to these means in explained view which has maintained below-
'S' stand to Specific goals that is procedure in enterprise and Volkswagen objectives and
aims. To increment up in industry part and advantage for Volkswagen, some specific
aims and objectives are need to generate and design. Volkswagen has decided to increase
profit of organisation up to 5-7% in every period of three month of each quarter.
'M' mention the measurable goals which Volkswagens fix to meet in a span of time
period. It include 5-7% margin in annual income in business share in factual structure to
reach a scaled margin. Also it can be accomplish by investigating commodity income
which have been achieved in a measurable time.
'A' states aims that are achievable. Practical achievements are fixed by Volkswagen to
ambit wanted earnings and outcome of definite plan of action.
'R' means Realistic quarry which Volkswagen fit to gain in measured span of time. Goal
of increment of 5-7 % in industry assets in all common fraction is approachable and
practical target which can be accomplished by impressive planning smoothly (Campbell,
2011).
'T' says Time chained to compass an coveted conclusion set by any company. It is base of
all planning and implementations in order to meet success in desired time. Arriving
increment of 5-6 % within every three month is marked by Volkswagen that is set to
make strategies work and motivate entire staffs and employees.
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CONCLUSION
As per the above discussion it has been concluded that business strategy is essential for
every business organisation. Vision, mission, goals, core competencies and objective helps in
establishing an effective business plan for long run of business. Strategic plan is the combination
of various activities. For carry out its audit plan an organisation use SWOT analysis to measuring
its strength, weaknesses, opportunities and threats. Stake holders are also an important part of
firm they take interest on their amount of investment at regular basis. The major role of manager
is to implement new and effective policies that are helpful in effective functioning of ever
operation of organisation.
REFERENCES
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quest for competitive advantage. McGraw-Hill Education.
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How to Complete a Personal SWOT Analysis, 2013. Available through:
<https://journal.thriveglobal.com/how-to-complete-a-personal-swot-analysis-
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<https://www.strategicmanagementinsight.com/mission-statements/volkswagen-
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