Business Strategy and Sustainability Analysis

The provided assignment is a compilation of various sources on business strategy and sustainability. It includes a list of references from academic journals and books, as well as an online resource on stakeholder mapping. The assignment appears to be related to a course or program in business or management, possibly at the university level.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 (Covered in Power point)..................................................................................................1
1.1 Business mission, vision, goals, objectives for inform strategic planning............................1
1.2 Factors that consider when formulating strategic planning..................................................2
1.3 Effectiveness of techniques used when developing strategic plans......................................3
TASK 2 ...........................................................................................................................................4
2.1 Strategic positioning by carrying out an organisational audit...............................................4
2.2 Environment audit on VWAG..............................................................................................5
2.3 Significance of stakeholder analysis when formulating new strategy..................................6
2.4 Present a new strategy for business.......................................................................................8
3.1 Appropriateness of alternative strategy relating with market entry, substantive growth,
limited growth and retrenchment................................................................................................9
3.2 Justification of strategy selection........................................................................................10
4.1 Roles and responsibilities of personnel charged with strategy implementation.................10
4.2 Estimated resource requirement for implementing new strategy........................................11
4.3 Contribution of SMART targets to accomplish action plan properly.................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategies are an essential part of business through which authority become able to
manage diverse range of things in an appropriate and effective manner. Business activities are
composition of various activities which really need to get done in an effective manner. This
element is helpful for an organisation in order to enhance profitability and generate more and
more revenue in long term context. Managers play an appropriate role in an association through
which all related data could be manage effectively. This project is based on a new business
approach which stated with a presentation. The commence operations of an association is a
coffee shop whose name is “Ticky Ticky”. Managers of a company have to prepare mission,
vision, goals and objectives. Along with this, factors which lead to consider at the time of
formulating strategic planning with effectiveness of techniques. Moreover, the other concepts
will reflect upon Volkswagen global scandal in which they lead to formulate a new strategy for
business to deal with in an appropriate manner. There are various approaches are determine in
order to evaluate appropriate and suitable strategy for a business. Moreover, managers have a
duty to implement action plan properly so that better and effective outcome could be accomplish.
TASK 1 (Covered in Power point)
1.1 Business mission, vision, goals, objectives for inform strategic planning
Whenever a new business get started, managers of a company have to frame suitable
strategies so that better and effective working could be done. Strategic planning is define as a
process in which managers determine current and external environment of business for defining
their strategies properly and take such decisions which enable an association to grow as well as
allocate resources properly so that better and effective working could be promoted. These are
such strategies which get fit between goals and abilities of an association so that changing
marketing opportunities get manage properly.
Ticky Ticky wants to start a coffee shop and for that managers of a company have to
frame several mission, vision, goals and objectives so that they become able to compete at keen
competitive world properly. Hence, managers of a company frame several strategic planning for
a business which are as follow:
 Mission: A task or a purpose on which whole association lead to get work which get
done by a group of people with a common concern. These are designed by the
management for meeting the expectations of the customers. In this all the important
1

information is covered like about the target customers, running is a business etc. Mission
statement of Ticky Ticky are as follow which have to take in account by employees
properly so that better and effective working could be promoted: “To be the best Cafe
chain by offering a world class coffee experience at affordable prices by follow all ethical
and values properly in order to enhance market share”. These elements are converted
into some manageable sections which are as follow:
◦ Expanding the market shares
◦ Creating value for the customers
◦ Following the business Ethics
 Vision: To be the best beverages provider in all over UK, by total customer satisfaction
by fulfil three major aspects properly:
◦ Quality
◦ Cleanliness
◦ Premier coffee shop
◦ Global presence
On the basis of these multiple section, a vision statement get framed by management of a
company which stated that “To providing quality products with clean environment with premier
coffee products so that global presence get encounter”.
 Goals & Objectives: These are the aims on which the functioning of the whole company
is based on. It can be for short term as well as long term too. Goals and objectives of
Ticky Ticky are as follow:
◦ Gain 20% of market share with in 2 years
◦ Open 3 more outlets within one year
◦ Increase revenue with 10% of overall investment
1.2 Factors that consider when formulating strategic planning
Strategic planning enable business to make a relationship between goals and capabilities
of an organisation so that better and effective working could be promoted. There are various
factors have to consider by management when they lead to make their strategic planning. By
evaluating all such aspects properly, organisation become able to accomplish all their targets and
objectives properly as well as effective working could be promoted. Hence, various factors
2

which have to take in account by management of Ticky Ticky are stated as follow so that better
and appropriate working could be promoted: Regulation and society: It is essential for Ticky Ticky to consider all essentials laws
properly which are associated with business. Managers have to work and take all such
regulations in account properly so that they become able to work properly. Moreover, by
taking society in account, management will lead to adopt such resources which reflect
positive impact on society so that positive image could be encounter. Industry attractiveness: Another factor which impact strategic planning is attractiveness
of industry in which managers have to evaluate major industry which support in generate
profit. Ticky Ticky determine that food industry is one of the finest sector which lead to
reflect more and more profit with minimum investment. This factor also have to consider
by an association managers properly so that they can start operating in such industry.
 Culture: While making the business plan, the culture that will be prevailing in the market
should also be decided and accordingly the values and beliefs will be inculcated in the
working environment. The culture of business is based on role culture where every
person have a defined role and power is associated with person position. Ticky Ticky
define culture support them in order to promote effective working.
1.3 Effectiveness of techniques used when developing strategic plans
Leaders of Ticky Ticky have to evaluate that if their business operations are taking place
properly in nature even when everything is getting well then at such point, they have to evaluate
more and more options for enhancing business options. Thus, by adopting new and innovative
ways, management become able to grow and enhance profit with high range of users as well.
Hence, leaders have to evaluate effectiveness of technique properly when they used to develop a
strategic plan for Ticky Ticky. Thus, for such perspective, they have to use SWOT analysis
which can work as an effective technique when a new business will lead to frame strategic
business plans:
STRENGTH WEAKNESS OPPORTUNITIES THREATS
Ticky Ticky have to
evaluate all their
strength properly so
that better and
Ticky Ticky managers
determine some
weakness as well for
business which need to
Ticky Ticky managers
determine various
opportunities which
enable their
Threats are risk for a
business which
impacted an
organisation growth
3

appropriate plans get
frame. Thus, they are
new in nature and a
define mission, vision
and goals and
objectives which guide
employees to work on
them properly. Along
with this, they are
utilising resources
properly with taking
society and regulations
properly in
consideration as well.
Moreover, they have
effective workforce
whom have better
knowledge about
manufacturing quality
products.
get improve through
framing effective
strategic plans. A
major weakness is all
about finance of a
company. Along with
this, at initial stage
they have lack of
workforce whom are
not able to manage
vast orders at one
time. Along with this,
another weakness is
concern with
technology which use
by an organisation in
product
manufacturing.
association to grow
and get develop
properly. A major
opportunity for
business is to provide
quality products and
establish as a brand in
competitive world.
Along with this,
another major
opportunity is concern
with high productivity
by targeting new
customers. Another
opportunity is
associated with
availability of input at
minimum consent.
and performance.
Ticky Ticky
management
determine a major
threat which is related
with new market
world is that more and
more number of
competitors of
business as well as this
market provide ease of
entry. Along with this,
sudden change in
customers perspective
also work as a major
threat for a company
which directly
impacted upon an
association revenue
generation capacity.
TASK 2
2.1 Strategic positioning by carrying out an organisational audit
Volkswagen is one of largest automotive association in the world whom are producing
high quality cars with appropriate security features. Managers of a company are active in nature
and determine market scenario on a timely basis so that better and effective working could be
promoted. A major issue was arise into business when association examine that engage in a
Global emission scandal in which US government has ordered company to recall their 482,000
vehicles produced since 2009. Under this consent or a issue wiped out more than 40% share of a
company and thus, to deal with this major issue CEO of a company wants to again gain market
share. For this relation, they state framing new action plan for a business so that they become
able to get sustain at market world.
4

Hence, strategic plan for VWAG in order to met with sustainability, association lead to
determine all their strength and weakness in an appropriate manner. It is an essence about how
an association lead to compete in market and serve customers in market (Strategic Positioning,
2017). Hence, for making strategic positioning of business, management have to carry out an
organisational audit through which all strength and weakness along with opportunities and
threats get evaluated. Organisational audit is helpful for this relation so that better and effective
strategic plan get frame by business managers:
Strengths Weaknesses Opportunities Threats
International presence
of Volkswagen
VWAG emission
scandal reflect
weakness for a
company.
Try to start
manufacturing new
fuel efficient vehicles
Number of competitors
expansion with a
course of time
Effective and
appropriate working of
research and
development
department
Wide level more and
more number of
competitors take
advantage of their
negative image
Target and produce
cars for such market
where negative image
get created to gain
trust of users
More and more users
get impacted as
competitors already
affected their image
Vehicles are luxury in
nature which target all
group of customers
5 million cars recall
step affect and
impacted revenue of a
business
Start to manufacture
cars whom are fully
automatic in nature
Fluctuation in
exchange rate of
company also impacted
their working and
consider as major
threat.
2.2 Environment audit on VWAG
Business environment is dynamic in nature which get change with a course of time. It is
essential to determine environment properly by managers of a company so that they become able
to frame and maintain effective strategies (Aitken, 2016). Environment audit is helpful in
analysing competitors of business as well as modifications which arise at such consents.
Volkswagen already indulge in a scandal which impacted their operations. But they have to
5

organise an audit by consulting Porter Five forces which enables them to deal at external market
world (Volkswagen AG – Porter’s Five Forces Analysis, 2014): Barrier to entry: Volkswagen chances of new entry into market is at high risk because for
this they need license of government and they already engage in an emission scandal
which affected their image at keen competitive world. Thus, they might not become able
to enter into a new market world. Power of suppliers: Volkswagen prepare and produce spare parts of their vehicles by
own and thus, in context of that power of suppliers is low. Hence, this is a reason behind
that they can produce high quality products and sustain at market for long term context. Power of consumers: When an organisation is dealing at global level every user get
attracted towards them but in case of VWAG, purchasing or bargaining power of users
are high. They are already indulge in a scandal which impacted their image in a negative
frame. Availability of substitute: Number of substitute vehicles in market are high like Toyota,
Mercedes etc. Hence, this is a threat for a company which enforce them to frame suitable
strategies so that such consent get driven out properly.
 Rivalry: US automotive industry is very wide in nature and number of rivalries are high
in nature as well. As number of Japanese auto maker are increasing day after days.
2.3 Significance of stakeholder analysis when formulating new strategy
Stakeholders are such people of an association whom get affected or be affected by
actions, strategies and work of an organisation (Amran and et. al., 2016). There are various
people are related with a business which get impacted through diverse activities of a business.
These people are important for an organisation and association have to take them in account as
well whenever any new strategy will lead to get frame. Thus, for making new business strategy,
association have to take all their present and future stakeholders in consideration which term as
“stakeholders mapping” (Shareholder mapping, 2017). Volkswagen will lead to implement a
new action plan for a business which facilitate association to make things correct and appropriate
in nature as well. Mainly, there are three types of stakeholders are determine and their mapping
is essential for business so that appropriate decision related with them will lead to take:
6

Illustration 1: Shareholder mapping, 2017
(Source: Shareholder mapping, 2017) Connected stakeholders: Out of three categories, first one is connected stakeholders
which includes distributor, suppliers, customers of a company whom are majorly
connected with a business in order to facilitate activities and operations effectively
(Higgins, Omer and Phillips, 2015). VWAG have to analyse each and every customer of
a company properly and then manufacture their vehicles in accordance with them. Hence,
when management lead to frame new strategy, then a major thing which have to take in
account is users in which determination of target market group is essential concept. Internal stakeholders: Some of the stakeholders of business are related internally.
Internal stakeholders of business are employees, managers whom contribute their best in
order to make operations effective. Employees made a vast contribution in an association
for managing operations properly (Hockerts, 2015). Behind emission scandal, employees
and managers are vital part as they well know about chip which was built into cars for
pass emission. Hence, management have to always take such step which motivates their
employees and staff members.
7

 External stakeholders: When business or a new strategy is implementing, management
have to take and consider all legislations and social groups in account properly.
Government, pressure groups, society are consider as external stakeholders of business
which impact upon on an association performance if they perform some wrong (Ibrahim,
Dumas and McGuire, 2015). Emission scandal awake these stakeholders of business and
thus, government enforce company to recall their vehicles. Many protest also lead to took
place against Volkswagen which critically impacted their image.
2.4 Present a new strategy for business
Goals: These are the general targets or a pathway on which whole association have to
work properly. Major goal of a company is to become global and economic leader of automotive
manufacturer in the year 2018 with increase in unit sales more than 10 million in a year.
Objectives: These are the targets and aims which enable business to get sustain into
market world. Volkswagen have frame several objectives which are stated as follow:
 Deploy new technological innovation to become world leader in order to satisfy customer
 Increase unit sales with more than 10 million vehicles in a year
 Volkswagen intends to increase its return on sales before tax to at least 8% so as to
ensure that the Group’s solid financial position and ability to act are guaranteed even in
difficult market periods.
 To build a first class team by become top employer with all brands
Strategy: Company prepare a strategy for 2024 which major aims is to improve an
association image properly in the eyes of users. Thus, by evaluating appropriate return and frame
suitable goals, management become able to enhance their annual sales during a year with
minimum 10 million vehicles.
Segmentation targeting and positioning: Position of a company was far good but after
emission scandal their market position get impacted. Elsewhere, management already operating
in more than 150 countries and operate production facility in 27 countries as well. Global scandal
wiped up more than 40% share of capitalisation of market which impacted their business badly.
Thus, business have to reposition their image of a company so that better and effective working
could be promoted. Along with this, they have to identify target market as well in which they are
going to maximise share and sale out their products and services.
8

3.1 Appropriateness of alternative strategy relating with market entry, substantive growth,
limited growth and retrenchment
Alternative strategy is helpful for a business through which management become able to
get sustain at market world (Johnson, 2017). Thus, Volkswagen have to evaluate each and every
strategy properly and take suitable actions against business operations. Thus, mainly, four types
of framework are evaluated which enable an association to get sustain into market world
properly which are as follow: Market entry: One of a strategy for a business is market entry through which association
can evaluate appropriate market which facilitate growth and development (Lueg,
Pedersen and Clemmensen, 2015). Volkswagen can introduce themselves into such
market world where they can determine new range of customers which enable business
growth. Moreover, they have to target new group of customers as well in existing market
world by providing effective offers. Substantive growth: Another major thing which enable business to get sustain into
market is substantive growth in which management can determine and evaluate various
competitors properly and acquire them so that association get sustain into keen
competitive world. Moreover, Volkswagen now dealing only in cars although they can
support business in unrelated diversification in which management can increase their
product line which are completely distinct. Limited growth: VWAG have diverse number of resources as well as have good financial
condition through which they are able to expand business properly. But once such global
scandal take place then business do not become able to expand their number of operations
in some other parts of a world. In limited growth strategy, Volkswagen have an option in
which they can enhance number of customers within same market or can enter into new
market world which is market penetration. Hence, management have to improve their
existing products in which emission and pollution chances are more.
 Retrenchment: Emission scandal impacted business very badly and thus most of their
capitalization get paid off. Retrenchment strategy stated that business operations
impacted very badly and management have to frame suitable strategy in order to deal
with various aspects. Hence, most number of shares get wiped up of an organization as
9

well as more than 4 million vehicles recall by business which identify as a disinvestment
of a company.
3.2 Justification of strategy selection
Substantive growth strategy is consider as best option for Volkswagen in which
management have four major areas where expansion is easy and appropriate in nature. Thus,
substantive growth strategy includes horizontal integration, vertical integration, related
diversification and unrelated diversification. Hence, management can opt this section properly
and implement this framework in an effective manner as well: Horizontal integration: This integration is taking place when an association lead to take
or acquire similar products so that monopolistic situation in market get created
(Martinez-Simarro, Devece and Llopis-Albert, 2015). This can happen when
Volkswagen lead to acquire and merge their business with other major competitors so
that better and effective working could be promoted. Related diversification: Adding product line in nature which are similar to an
association working. Volkswagen is a automotive company and for new addition they
are able to manufacture bikes, cycles as well. This is a related diversification of business. Vertical integration: This system is stated about acquiring an association whom are
similar to its supply chain system (Matt, Hess and Benlian, 2015). Volkswagen can opt
this option as well so that better and effective working could be promoted.
 Unrelated diversification: When, an organisation lead to add more products which are
differ from an association manufacturing consider under unrelated diversification.
Volkswagen have an option to introduce gadgets as well like cell phones, laptop etc.
4.1 Roles and responsibilities of personnel charged with strategy implementation
Every individual in an organisation is charged with a responsibility or a role for
implementing a strategy in an appropriate and effective manner. At every level, differ people are
charged with distinct responsibility which have to understand by managers of a company in an
appropriate manner. Hence, Volkswagen managers roles and responsibilities are signifies as
follow according with strategic planning implementation:
PERSONNEL ROLES AND RESPONSIBILITIES
Top Management A major role of senior management or top
10

authority is to frame suitable strategies for a
company with considering all related aspects
properly like finance, workforce and evaluate
new task as well. Volkswagen top management
have to evaluate and frame new strategies for a
business so that better and effective guideline
for an association get encourage.
Management Managers of a company major role is just to
implement action plan of a company by
collecting information from external
environment and convey it to senior. Thus,
they work as a thread between lower level and
senior level.
Engineers Personnel These people are highly charged with
implementation and follow up of guideline and
blue print of a company. Thus, Volkswagen
have to train their each and every personnel
properly so that better and effective working
could promoted.
4.2 Estimated resource requirement for implementing new strategy
Resources are major thing for a company and there are appropriate resources are
determine for a company which enable in implementing new strategy properly (Mellat-Parast
and et. al., 2015). Hence, Volkswagen estimated resources which enable business to implement
strategy properly are as follow: Finance: Volkswagen require suitable fund for a company so that they become able
implement each and every operation and task in an appropriate and effective manner.
Thus, it lead to arrange some fund through loan or by shares so that business become
able to manage things properly.
11

 Human: Another major resource for a company is labour or human which facilitate
business to operate each and every consent in an effective manner. Major resource whom
are essential for executing operations of a business is human/ staff members.
4.3 Contribution of SMART targets to accomplish action plan properly
If the company wants to achieve success by implementing strategy then they will have to
make sure that their objectives are made as per the SMART targets (Pisano, 2015). The
managers should ensure that the goals that are prepared should be smart and eligible. It will help
them in achieving high market share and growth as well. Volkswagen SMART targets are
evaluated as follow which have to take in account by managers of a company properly and
describe it properly to each and every employee:
 Specific- Volkswagen want to maximise their sales with 10 million with in a year with
high quality assurance with appropriate security features as well. This target is specific in
nature which have to understand by business managers and employees properly.
 Measurable – 10 million vehicles sale in a year is a measurable factor for a business
which easily get evaluate in an appropriate manner. Measurable targets are such consent
which get evaluated effectively.
 Attainable – The goals which are set by the company should be attainable and practically
applicable too. It is very necessary because otherwise company will keep on working and
will not reach anywhere. 10 million vehicles in a year is an attainable target for such
multinational association.
 Relevant –This aim is relevant for an organisation because they already take 5 million
cars in a year which stated that business have an ability to accomplish such milestone.
 Time Based – The time which is allotted against each and every activity should be
appropriate and not less otherwise the work will not be completed on time.
CONCLUSION
It get concluded from the project that for making business operations successful in nature,
it is essential for an association to implement and frame appropriate strategy for a business so
that better and effective growth could be promoted. Every association have a defined action plan
which always support them in order to make operations appropriate and proper in nature.
Whenever a new operations get commence, management have to prepare mission, vision and
goals and objectives properly with a core competency so that better and appropriate working
12

could be maintain. By framing suitable things, management become able to accomplish all
targets and goals properly with a defined blue print. Moreover, in case if business was not on
track, then managers of a company have to organise SWOT and external market analysis element
properly for determine all relevant aspects properly. On the basis of that suitable action plan get
framed which have to follow by each and every personnel properly whom are charged with such
consents.
13

REFERENCES
Books and Journals
Aitken, H. G., 2016. Continuous Wave. pp. 512-13. Princeton University Pres.
Amran, A. and et. al., 2016. Business strategy for climate change: an ASEAN perspective.
Corporate Social Responsibility and Environmental Management. 23(4). pp.213-227.
Higgins, D., Omer, T. C. and Phillips, J. D., 2015. The influence of a firm's business strategy on
its tax aggressiveness. Contemporary Accounting Research. 32(2). pp.674-702.
Hockerts, K., 2015. A cognitive perspective on the business case for corporate
sustainability. Business Strategy and the Environment. 24(2). pp.102-122.
Ibrahim, B., Dumas, C. and McGuire, J., 2015. Strategic decision making in small family firms:
an empirical investigation. Journal of Small Business Strategy. 12(1). pp.80-90.
Johnson, G., 2017. Exploring strategy: text and cases. Pearson.
Lueg, R., Pedersen, M. M. and Clemmensen, S. N., 2015. The role of corporate sustainability in
a low‐cost business model–A case study in the Scandinavian fashion industry. Business
Strategy and the Environment. 24(5). pp.344-359.
Martinez-Simarro, D., Devece, C. and Llopis-Albert, C., 2015. How information systems
strategy moderates the relationship between business strategy and performance. Journal
of Business Research. 68(7). pp.1592-1594.
Matt, C., Hess, T. and Benlian, A., 2015. Digital transformation strategies. Business &
Information Systems Engineering. 57(5). pp.339-343.
Mellat-Parast, M. and et. al., 2015. Linking business strategy to service failures and financial
performance: Empirical evidence from the US domestic airline industry. Journal of
Operations Management. 38. pp.14-24.
Pisano, G. P., 2015. You need an innovation strategy. Harvard Business Review. 93(6). pp.44-
54.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1. pp. 105-122. Springer
Berlin Heidelberg.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Smink, M. M., Hekkert, M. P. and Negro, S. O., 2015. Keeping sustainable innovation on a
leash? Exploring incumbents’ institutional strategies. Business Strategy and the
Environment. 24(2). pp.86-101.
Woerner, S. L. and Wixom, B. H., 2015. Big data: extending the business strategy
toolbox. Journal of Information Technology. 30(1). pp.60-62.
Online:
Shareholder mapping. 2017. [Online]. Available through:
<https://www.sketchbubble.com/en/presentation-stakeholder-mapping.html>.
14