Business Strategy (Understanding the process of strategic

Business Strategy
(Understanding the process of strategic
planning)
Task 1

Table of Content
• Introduction
• Mission vision
• Goals & Objective
• Core competencies
• Factors affecting business
• Techniques for strategy evaluation

Introduction
Business Strategy is a plan of action that assist in deriving
out a path which can be followed by employees as to
achieve all desired goals and objectives.
Volkswagen AG is a global brand that have more than 36
subsidiaries and deals in automotive sector.

Business mission, vision, objectives, goals
and core competencies
A business needs to be aligned with these elements:
• Mission: The mission of company is to offer
attractive, safe and environmentally sound automotive
and vehicles that can compete in the tough market and
set standards for everyone else.
• Vision: Expansion of R&D programmes as to be the
best global automotive manufacturer who is
environmental friendly and future ready.

Goals & Objectives
Goals: The main goal of company is to become an
economic and ecological leader in global automotive
industry.
Objectives: There are certain objectives stated by company:
 Using innovative technologies to achieve the position
of global leader.
 Relying on development of large growth market

Core competencies
Core competencies: These are the competencies which
differentiates Volkswagen from others. The Research and
Development facilities of company are most advanced
and superior to its competitors.

Factors to be considered while formulating
strategic plan
There are various factors which have direct and indirect
impact over Volkswagen AG, for proper analysis following
be done: Micro factors(SWOT) and Micro factors(PESTEL)

Cont..
Macro factors(PESTEL): This is an uncontrollable
environment which has to be faced by Volkswagen while
operating.

Effectiveness of Techniques
BCG matrix is a way which is used by companies in
accessing various products that are being offered by
in market. It states about how profitable one
product is than another.

Cont..
BCG matrix has four elements that will state about how
Volkswagen needs to invest in its portfolio:
• Star: The star of company is Audi.
• Question mark: Skoda and opel
• Cash Cow: Scania and Bentley
• Dogs: SEAT

Cont..
Space analysis is used for evaluating sense and
wisdom of a strategic plan that is planned by
Volkswagen AG for its achievement of goals.

Cont..
Space analysis (Strategic position and Action Evaluation
Matrix) consist of various factors:
• Financial strengths: Profitability of 8%(before tax) to
guarantee financial safety
• Competitive advantage: Innovative approach
• Industry attractiveness: New features in its vehicles
• Environmental Stability: Moving towards Hybrid and
electric vehicles.

References
Mithas, S. and Lucas, H. C., 2010. What is your digital
business strategy?. IT professional. 12(6). pp.4-6.
Montgomery, C. A. ed., 2011. Resource-based and
evolutionary theories of the firm: towards a synthesis.
Springer Science & Business Media.
Scholes, M. S., 2015. Taxes and business strategy. Prentice
Hall.

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