Business Strategy Analysis & Design

This assignment delves into the intricate connection between business strategy and its application in infrastructure-based ventures within developing communities. Students are tasked with analyzing various strategic tools like SWOT analysis and PESTLE analysis to understand their impact on venture success. The assignment also encourages critical thinking about aligning business strategies with the unique challenges and opportunities present in these environments, utilizing case studies for illustrative purposes.

Business Strategy
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Analyse strategic positioning of Volkswagen by carrying out an organisational audit........1
2.2 An environmental audit for Volkswagen..............................................................................3
2.3 Significance of stakeholder analysis.....................................................................................4
2.4 Present a new strategy for Volkswagen................................................................................5
TASK 3............................................................................................................................................5
3.1 Alternative strategies relating to market entry, substantive growth, limited growth or
retrenchment ...............................................................................................................................5
3.2 Justify the selection of a strategy..........................................................................................6
TASK 4............................................................................................................................................7
4.1 Roles and responsibilities of personnel who are charged with strategy implementation......7
4.2 Analyse estimated resource requirements for implementing new strategy for Volkswagen 8
4.3 Contribution of SMART targets to the achievement of strategy implementation of
Volkswagen.................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12
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INTRODUCTION
For every business organisation, it is important to develop effective and efficient business
strategies by which firms can retain for long time period at market place. With the help of this
growth and productivity of business can be increased. To run business long period of time, firms
always make long term plan (Teece, 2010). The present business report is based on Volkswagen
company under which it uses effective tools and techniques and mange funds for develop the
strategic plans. In this present report mentions about the importance of stakeholder’s analysis at
the time of developing new strategies. For running business successfully, firm prepares a new
business-related strategy. To implement strategy, manager of Volkswagen plays an important
role. In this report, there is also a discussion about the VW emission scandal. Under this
assignment, Volkswagen measure the requirement of resources for executing a new and effective
strategy.
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TASK 1
Covered in PPT
TASK 2
2.1 Analyse strategic positioning of Volkswagen by carrying out an organisational audit
Volkswagen is a big automotive company. It sells its passenger cars in Bugatti, Audi,
Bentley, Skoda etc. It produces many different and attractive luxurious cars and also from time
to time some changes or additions of some new features in its existing cars are done (Scholes,
2015). Management of Volkswagen conducts research on the customers’ needs and tastes and
then designs car with effective features. The staff members of this business firm are loyal
toward it and also expert in its field. It has good brand image at market place. For making its
strategic positions, it conducts some social activities and also contribute some money in the
welfare of society. To carry out the audit programme, Volkswagen do its SWOT analysis:
Strengths- These are the abilities and also capabilities of business. If company has clear
set of goals and objectives, then in this case it can easily achieve its goals. In past three years,
the growth and sales of Volkswagen has been enhanced. Its major strengths is an effective
strategy which is made by the top management . It conducts some social activities to create
positive impact. It manufactures pollution free cars which do not harm environment.
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Illustration 1: What is SWOT Analysis – A
Simplified Definition
Source: What is SWOT Analysis – A Simplified
Definition, 2017

Weaknesses- Its main weakness is that it does not involve high promotion activities. It
does not give any social message to people about its products. The weakness of Volkswagen is
that it does not decrease the cost of its cars by making cost strategies. It used an unfocused
approach.
Opportunities- It has a big opportunity to enhance its income level from increasing its
brand namby conducting some unique and attractive promotional activities. With the help of this
productivity of company will be maximized and it can increase its business in new sectors,
countries.
Threats- The main threat is that in the automotive industry, there is less restrictions to
entry. The level of competition is high and number of competitors are also large.
2.2 An environmental audit for Volkswagen
Environmental audit is an effective tool to know about the effectiveness of business. In
year 2015, in Volkswagen there was a crisis and its reason was, many cars produced more
pollution and it is harmful for environment and also for health of people. From it sales and
revenue of Volkswagen had decreased (Meskendahl, 2012). From conducting audit,
Volkswagen can identify its weakness and also try to less pollution from cars. Audit is very
helpful in developing the strategic planning. To overcome from all this, Volkswagen business
firm started manufacture pollution free cars and after some month’s sales and productivity of
company enhanced and also it start gains the competitive advantage at market place. In addition
to it, to conduct environmental audit, Volkswagen need to analyse the PESTLE:
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Political factors- This business firm operates its business in many countries. But the
government of every country is different and from the political instability it faces many issues.
The tax rate of every country is different and from it, When company trade internationally, it
faces many problems such as tax rate, inflation, government policies etc.
Technological factors- To increase its business, Volkswagen should adopt new and latest
machineries and technologies (Verbeke, 2013). With the help of this it can add some additional
features in its cars and make them attractive. Technology helps in keeping data of company
secure and finance department can maintains its financial data in a proper way.
Social factors- By manufacturing pollution free cars, firm can create the positive impact
on society (Bhasin, 2016).
Economic factors- Today's time people want good brand but at minimum cost.
Volkswagen deals in luxurious sector and company should makes effective pricing strategy and
minimize the cost of cars.
Legal factors- Government makes some policies and regulations and according to
changes in government their policies and strategies also changes. If Volkswagen does not work
ethically and legally, then it affects will bad on business.
These all factors will help in doing an environmental audit.
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Illustration 2: PESTLE analysis
Source: Bhasin, 2016

2.3 Significance of stakeholder analysis
Stakeholders are the most necessary part of a business enterprise. They take interest in
the business activities and also give their big contribution in the success of business. In addition
to this, top management of Volkswagen firm can develop effective strategies or policies to
persuade stakeholders for new strategy (Sokol, 2011). All stakeholders are helpful in increasing
the growth and productivity of business. Volkswagen take care of each and every stakeholder.
Volkswagen stakeholders are customers, suppliers, staff members, creditors and also
shareholders. It is the responsibility of management to map its stakeholders on the basis of
demand and take good actions. From stakeholders analysis Volkswagen can clear with its
objectives and skills, capabilities of its staff members against the new strategies. There are some
significances of stakeholder analysis:
 Its main significance is that from this company can know about the current trend in
market.
 It helps in the process related to developing new strategies.
 With the help of stakeholder analysis, Volkswagen can easily enhance the level of
satisfaction of all its stakeholders.
 Its main importance is that, from this competencies or capabilities of staff members can
be identified by company
 From stakeholders analysis, company can also gain the positive response from investors
(Montgomery, 2011).
2.4 Present a new strategy for Volkswagen
It is necessary for Volkswagen is to formulate all strategic plans according to its
stakeholders. The decisions related to the project which are taken by the top management are
according to the profitability. It will help in welfare of stakeholders. This business firm always
try to satisfy the needs and wants of customers. The development of new strategy for
Volkswagen is on the basis of its stakeholders. There are various strategies such as growth
strategy, abusiveness development and market development but from all of strategies but
Volkswagen choose a strategy of product development. This company wants to more focus on
the development of its products. With the help of stakeholders, this cited business enterprise can
execute its strategies at market place. Volkswagen has to develop new strategic plan regarding
new product development. From this, company can expand its business and also try to attract
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customers towards its new products and unique features in existing car products. To develop its
products in to new areas, it is necessary to expand its business in to new sectors and areas. From
this its awareness among people will be increased and it will help in enhancing the sales (Mehta
and Mehta, 2011). In addition to it, to implement new product development, the top management
of Volkswagen has to make some effective policies which are as given below as above:
 It is the responsibility of company is to take about all needs and wants of its shareholders.
They provide financial helps in the business operations and also activities.
 For new product development, shareholders are an important element and they invest in
business for the purpose of maximising profit.
 Regarding this, it is the duty of top management is to develop new and effective policies
and also use the good quality of raw materials in the production process.
 It is necessary for managers to motivate their staff members so that they can give their
effective contribution in the new product development.
TASK 3
3.1 Alternative strategies relating to market entry, substantive growth, limited growth or
retrenchment
Alternative strategies are very useful for resolving issues and also creating an effective
opportunity. For maximising the growth and profitability of business, Volkswagen develops
good strategies or policies. Volkswagen want to use new strategies which helps in focus on all
stakeholders of company (Barberá and et. al., 2012). In addition to this firm analyse the
alternative strategies which are related to the limited growth, market entry, retrenchment and the
substantive growth.
Market entry- It is very effective and useful marketing strategy for create the market.
From the market share of Volkswagen can be maximised and also provides a big opportunity to
capture new markets at different places and also target new customers. There are many
techniques of market entry are franchising, joint venture, merger and acquisition. It is very
helpful in supporting the activities and operations of business and company can also expand it
business in other countries.
Substantive growth- Beachy company looks for the growth and productivity of business.
This growth can be assured by the efficient diversification strategies. To minimize the horizontal
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cost, the vertical integration need to keep in to practice. Substantive growth is use in joint
venture, merger and acquisition other that the organic growth. There is a direct relationship of
this growth with enhancement in business operations.
Limited growth- It is helpful in handling the many different abusiveness conditions. So,
in context to this, Volkswagen applied the current strategies and also the present market can be
perforated. From the growth of business, Volkswagen has to promote its business at market
(Alsudiri, Al-Karaghouli and Eldabi, 2013). It can be done in the condition of minimum
profitability, reduction in market share, financial problems etc. This growth strategy helps in
knowing about the current market trend.
Retrenchment- It is helpful in dealing with the contrary condition of business. This kind
of strategies can be executing at market place which those products which are not selling more. It
helps in managing all the resource of business, assure in the price efficiency and the fulfil the
needs and satisfaction level of customers.
3.2 Justify the selection of a strategy
At market place Volkswagen perform well but it is less successful in fulfil the
expectations or needs of customers. The growth rate of this business firm is good but it is not
according to the recent market trend so for this it is necessary to management of Volkswagen
prepare good, attractive business strategic plan for increasing the development and growth of
business. The selected strategy for this automotive industry is limited growth where it needs to
be more focus on the product along with the market development (Soh and Yu, 2010). This
strategy is helpful in focusing on its main competitors and the consumers. With the help of
limited growth strategy, the management of Volkswagen can make its business operations more
focused. The one of the good advantage of this strategy is that from this firm get resolve business
problems or any kind of issues in a proper manner. For development and growth, it can produce
more new attractive products with unique features. On the other hand, it can segment its business
in to small areas or parts. The differentiation can be good for the strategy which is related to
product development. Volkswagen invest finance for making the improvement in the quality of
current products as well as services. With the help of this limited growth strategy Volkswagen
can focus on its business and also increase the size of business by making improvement in the
structure. This strategy helps in enhancing the growth and productivity of company.
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TASK 4
4.1 Roles and responsibilities of personnel who are charged with strategy implementation
It is necessary for Volkswagen to understand that they should give the responsibility for
execution of strategies to experienced employees at workplace. The senior staff members have
high experienced and company should give the more priority to them. The main and primary
responsibility of personnel is to communicate the strategies to all different departments of
company so that they can take the proper and also appropriate actions (García‐Rodríguez and et.
al., 2013). It is necessary for personnel is to clear with the strategies which are made by the top
management of Volkswagen business enterprise. It will be helpful in convincing employees to
work according to new strategies in a proper manner. It is the duty of personnel is to maintain
proper relation with employees and also communicate with them in a proper manner. With the
help of this staff members will feel good and they can work for completing the vision, mission
and goals of a business firm effectively and efficiently. There are some other roles and
responsibilities of personnel given below as above:
 It is the duty of personnel is to implement strategy at workplace in an effective
manner.
 It is the responsibility of personnel is to communicate and understand the reason
behind strategy to all employees clearly.
 The main duty of personnel is to arrange all necessary resources properly and if at
workplace there is any kind of obstacles then, this person needs to solve out.
 The role of personnel is to motivate employees to work in a team and create a
positive working environment (Chen and Jermias, 2014).
 The main and foremost responsibility of personnel is to continuously monitoring
the process related to the strategy implementation.
So, these all are the main roles and responsibility which personnel need to fulfil in a
proper way. It is necessary that the allocation of effective resources should be proper and also
helpful in executing new strategy with minimum obstacles.
4.2 Analyse estimated resource requirements for implementing new strategy for Volkswagen
The allocation of resources is helpful in executing any kind of new strategy for business
enterprise. In Volkswagen, there are many different types of resources such as human resource,
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financial resources, technological, raw material. These all are very helpful in business. It is
necessary for management to utilise these all effective resources in a proper manner. There are
some resources given below as above:
Human resource- It is most of the significant and effective resource which should need
in to the consideration through Volkswagen. HR should be creative as well as innovative. It is
necessary that the attitude of human resource should be positive and they should have
disciplined. Its main work is to implement all strategies and bring together of all departments.
The performance of Volkswagen business firm is depending on Human resource. It is the
responsibility of human resource is to find out the requirement of man power (Mitra and
Bhardwaj, 2010). The HR department should have the potentiality to design and prepare those
products which helps in accomplishing the market as well as product development strategy. This
resource is helpful in apply new strategies in Volkswagen.
Raw materials- It is necessary in manufacturing of car material. If the raw material will
be used good in products, then it will be beneficial for company along with the customers.
Because consumers always want good quality products. It is necessary that the raw material
should be available at proper time period, in proper quantity and at a reasonable cost.
Technological resources- In this involves machineries and also equipment which are
helpful in manufacturing products (Valos and Bednall, 2010). It is necessary to make
improvement in the quality of products by using new and latest technology. With the help of new
and advanced equipment, company can maintain quality and it can also helpful in saving money
as well as time. Volkswagen invest more on the adopting technologies and new equipment.
Financial resources- It is necessary to use good quality raw materials and also
purchasing new machineries, give salary to employees, charges related to maintenance etc.
Without finance company does not conduct its business activities as well as operations. With the
help of this financial resources, Volkswagen can gain the competitive advantage and also gain
the positive results. It helps in stability of business at market place and also doing the business
activities.
4.3 Contribution of SMART targets to the achievement of strategy implementation of
Volkswagen
Volkswagen should use this kind of technique for executing new strategies in an effective
manner. SMART refers to specific, measurable, achievable, realistic and time bound. It is the
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responsibility of top management to make always SMART strategies and policies, so that it can
achieve the success in business. The specification of SMART targets is given below as above:
Specific- If the target and aims or objectives of business will be specific then in this case
the profitability ration and market share of Volkswagen will be increased. It is beneficial for the
growth and development of business (Chowhan and Saxena, 2011). From making specific
objectives, this firm determined its profit rate up to 5-7%.
Measurable- The main motive of Volkswagen is to maximise profit along with the
market share. It is important for Volkswagen that it should keep its targets measurable and firm
can easily determine its aims and goals which are formulated by top management of
Volkswagen.
Achievable- The targets and objectives which are set by company should be achievable.
With the help of this firm can achieve its goals in an appropriate manner.
Realistic targets- The objectives and aims which are framed by top management of
Volkswagen should be realistic and there should not be artificiality (Smith, Mills and Dion,
2010). If target will be realistic, then employees can achieve them easily and by this market share
of this firm will be increased from 5 to 7%.
Time bound- Company set a time limitation to achieve target. From setting up the time
limitation, employees will try to achieve goals in given time period.
CONCLUSION
It has been concluded from the above report that good and effective business strategies
are helpful in making business successful. The strategies of business firm are dependent on
mission, vision, plans which employees want to accomplish. This business report studied about
the internal and external-factors those can affect on formulating strategic plans. For development
of business Volkswagen uses limited growth strategies. This present business report, also studies
about some resources which are necessary in implementing new strategies such as finance,
human resources, raw materials and also technology.
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REFERENCES
Books & Journals
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Barberá, L. and et. al., 2012. Advanced model for maintenance management in a continuous
improvement cycle: integration into the business strategy. International Journal of
System Assurance Engineering and Management.3(1). pp.47-63.
Chen, Y. and Jermias, J., 2014. Business strategy, executive compensation and firm performance.
Accounting & Finance.54(1). pp.113-134.
Chowhan, S. and Saxena, R., 2011. Customer relationship management from the business
strategy perspective with the application of cloud computing. The Proceedings of
DYNAA.2(1). p.2011.
García‐Rodríguez, F. J. and et. al., 2013. Corporate social responsibility of oil companies in
developing countries: from altruism to business strategy. Corporate Social
Responsibility and Environmental Management.20(6). pp.371-384.
Mehta, C. and Mehta, K., 2011. A Design Space and Business Strategy Exploration Tool for
Infrastructure-based Ventures in Developing Communities. International Journal for
Service Learning in Engineering, Humanitarian Engineering and Social
Entrepreneurship.6(2). pp.30-57.
Meskendahl, S., 2010. The influence of business strategy on project portfolio management and
its success—a conceptual framework. International Journal of Project
Management.28(8). pp.807-817.
Mitra, A. and Bhardwaj, S., 2010. Alignment of Supply Chain Strategy with Business Strategy.
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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.
Smith, T.A., Mills, A.M. and Dion, P., 2010. Linking business strategy and knowledge
management capabilities for organizational effectiveness. International Journal of
Knowledge Management (IJKM).6(3). pp.22-43.
Soh, P. H. and Yu, J., 2010. Institutional environment and complementary assets: Business
strategy in China’s 3G development. Asia Pacific Journal of Management.27(4).
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Sokol, D. D., 2011. The strategic use of public and private litigation in antitrust as business
strategy. S. Cal. L. Rev..85. p.689.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range
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Valos, M. J. and Bednall, D. H., 2010. The alignment of market research with business strategy
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Verbeke, A., 2013.International business strategy. Cambridge University Press.
Online
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Bhasin, H., 2016, PESTLE analysis. [Online]. Available through:
<https://www.marketing91.com/pestle-analysis/>. [Accessed on 19th September, 2017].
What is SWOT Analysis – A Simplified Definition, 2017. [Online]. Available through:
<http://pestleanalysis.com/what-is-swot-analysis/>. [Accessed on 19th September,
2017].
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