VW Strategy Implementation Report

The provided report is a comprehensive analysis of Volkswagen's (VW) strategic planning process. It highlights the significance of implementing business strategies to evaluate company effectiveness. The report covers various aspects, including defining company mission, vision, goals, and objectives, as well as conducting SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Additionally, it emphasizes the importance of setting SMART targets for effective strategy implementation.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategic positioning of Volkswagen by carrying out an organisational audit.................1
2.2 Environmental audit for VW AG.....................................................................................3
2.3 Importance of stakeholder analysis .................................................................................4
2.4 New strategy for a company.............................................................................................5
TASK 3............................................................................................................................................5
3.1 Appropriateness of alternative strategies..........................................................................5
3.2 Selection of a strategy......................................................................................................6
TASK 4............................................................................................................................................7
4.1 Roles and responsibilities of personnel ...........................................................................7
4.2 Implementing a new strategy ...........................................................................................7
4.3 Contribution of SMART targets.......................................................................................8
CONCLUSION................................................................................................................................8
REFRENCES ................................................................................................................................10

INTRODUCTION
Strategy is an art of the planning which designed to get long term goals and objectives. an
important tool for every organization as it helps in achieving organizational goals and objectives.
It is an effective medium to measure overall performance of business because it define
systematic process which use by the company to define their goals. This process focus on
customers needs and demands in order to satisfy their wants to get higher satisfaction by them.
Implementing strategy in business is more important to define growth and development of the
company . It include coordination, utilization of available resources, identify market values and
many more factor which implement in business process to develop overall performance of the
business. One of the best advantage of business strategy is that it provides better opportunity to
managers for evaluating effectiveness of the company. Present report is based on the
Volkswagen groups, it is an automotive company which products auto mobiles to its customers.
The cited company evaluate that how the strategic tools define appropriate benefits and also
define that how to manage their fund in their strategic plan. This report defines the mission,
vision and core competency of the chosen enterprise. Companies planning procedure is
discussed and also it is given how organizational audit is conducted to analysis the business
environment. Along with this, new strategy for the company are also discussed in this
assignment.
1

TASK 1
Covered in PPT
TASK 2
2.1 Strategic positioning of Volkswagen by carrying out an organisational audit
Organizational examination is more important for every business because it assist in
achieving its goals and objectives in appropriate manner (Helms and Whitesell, 2013). VW
evaluate their business activities to satisfy customers needs and demand and also improve the
output of the company in order get positive results. The important benefits of organizational
audit is to define skills of the business which include available resources, infrastructure and
make effective policies to measure effectiveness of the business. For doing organizational audit
Volkswagen use SWOT analysis to measuring strength, weakness, opportunities and threats of
the firm:
Strength Weakness
 VW provide variety of cars to its
customers and get higher satisfaction
by them.
 They use effective process to make
final products for inviting large number
of customers.
 One of the biggest strength of the firm
is positive brand image.
 They introduce innovative products
toward its customers.
 Skilled and experiences employee work
in this company which is also big
strength of VW (Guoyou and et. al.,
2013).
 Large number are big weakness of the
company.
 Lack of knowledge among employees
at the time of implementing strategy in
their process (Majchrzak and et. al.,
2014).
 Limited market share is also an
weakness of the company.
Opportunities Threats
 VW wants to increasing their  Governments policies are create
2

purchasing power by providing quality
services.
 Increase the chances of technological
products define better opportunities to
expand their business at global market.
 Changing demand of the customers also
increase the chance of produce new and
variety products to its customers.
unnecessary problems in business
process.
 Increasing competition level in market
is also a treats of the company (Norton
and Pine, 2013).
 The biggest treats of the company is
fuel cost because it reduce purchasing
of cars.
 Innovative products of its competitors
affect the market share of the VW.
With the help of SWOT analysis it define that VW can be able to capture larger market
share by delivering quality products to its customers (Grant, 2016).
2.2 Environmental audit for VW AG
Environmental audit is one of the best process to identify the various elements which
involve in the external environment of the business which affect the organisational process. The
best benefit of this audit is to support the top level manager to making effective policies and
strategies which implement in the firm to achieve organizational goals and objectives in
appropriate manner (Onkila, 2011). For doing environmental audit PESTLE is one of the best
process which is used by the VW to identify the external factors of business environment:
3

(Source: Rob, 2016) Political factors: In this factors the company face many political problems due to
instability in the government (Giannoulis, Zdravkovic and Petit, 2012). So that it is more
important for the firm to follow all setted rules and regulation in order to run their
business effectively. For this before doing expansion of the business it is main task of the
company to evaluate the affect of political factors over the firm. Economic factors: It affect the business function as well as sales of the business because
it include wages rate, inflation, deflation, income level of the customers which affect the
purchasing power of the company. For example, is bank increase their rate of interest and
loans which affect on the expansion of the business at different country. On other hand
interest rate also affect the business activities because if interest rate decrease then top
level of management can not expand their activities in new location. Social factors: It include lifestyle, culture and demand of the customers. It also define the
market trends which is depend on taste and preference of the service users. All these
elements are affect the purchasing process of the person (Giannoulis, Petit and
Zdravkovic, 2011). For increase the sale of the company, firm use various type of
techniques to making technological products and get higher satisfaction by them.
4
Illustration 1: PESTLE analysis

 Technological factors: Adopt new technology is more important for the VW because it
helps in increasing sale and also capture lager market share in effective manner (Palmer,
Wright and Powers, 2015). This process assist in decreasing the operation cost that
automatically converted in the higher profitability in organization. Legal factors: Every country set their rules and regulation and it is more important for
the VW to follows it with more efficiency in order to reduce obstacles which create in the
business function.
 Environmental factors: It is company responsibility to use effective process to make that
kind of products which can not to harm the environment. For maintain healthy
environment company make eco-friendly products to its customers. Firm can also use
quality raw materials to make find products and deliver in the market.
All these are main and important factors for company which affect the organizational
activities (Dey and Sircar, 2012). So that it is more important for manager of the VW to evaluate
the effectiveness and helps in expanding the business in other countries. By doing environmental
audit firm involve variety of products and attract large number of customers toward the company
products. So that the company easily capture larger market share effectively.
2.3 Importance of stakeholder analysis
Volkswagen produce variety of automotive products and provide its customers to satisfy
their needs and demands. In this stakeholders are important part of the business which include
various group of people to provide their support to the company in order to achieve higher
success. Customers, employees, suppliers, managers all are include in stakeholders. Analysis of
stakeholders is more important for company to identify the contribution in the success of the
business. The best advantage of dong analysis helps in providing support to top level manager in
setting business activities for future (Chowhan and Saxena, 2011). One of the important
advantage of stakeholder analysis is to define that what kind of decision should be taken by the
company for making attractive products to kits customers. VW define their stakeholders and also
divided in effective manner so that they contribute in taking best decision. On other hand is aid
foe manager to identify their expectation which is important for the firm to get satisfaction level
of the stakeholders. By doing stakeholder analysis company achieve their trust and loyalty which
assist in getting competitive advantage in the market and also capture large market share in
appropriate manner.
5

2.4 New strategy for a company
New strategy is based on opportunities of the company so that manager of the firm easily
run their business in effective manner. In this company have to invent more money in other
countries to expand their business so that they can easily capture larger market share. As per this
in recent complex surroundings it is more important for the firm to produce ecofriendly products
to their customers. For this UK government make compulsory for auto mobiles company to
make and produce those kind of cars which not harmful for environment. This helps in making
safe air and clean water in the country and reduce pollution. These type of cars are made by the
VW to maintain healthy environment (Butler, 2012). The company produce electronic cares to
their customers which is very unique so that more and more customers are attracted by this. This
aid in capturing larger market share from its competitors. Hence, this is effective solution to
make friendly environment by producing these type of cares so that company expand their
business at other countries in order to take place in aggressive marketplace.
Goals: This provide direction to employees by instructing them to work within defined time
frame. Firm fundamental goal is to improve their image in marketplace and increase sales of
their vehicles.
Objectives: These are formulated for shorter period which are developed to achieve goals
effectively by first accomplishing their objectives which are as follows:
they want to conduct CSR activities.
 To improve satisfaction level of their clients by involving updated techniques. Building unique strategies while launching new vehicles.
Strategy: Company adopt policies through which they are able to unite their workforce and
improve their image by serving society and satisfying customers.
Tactics: Volkswagen make plans such that they are able to increase their sales by using
following tactics:
 Establish goals which are customer oriented. Fulfil their partners, investors and staff requirements.
Segmentation targeting and positioning: Company wants to offer their vehicles to every sector
such as Volkswagen designed Polo for budget segment, Audi for business oriented. They are
operating in many nations to increase their audience by providing diversified portfolio.
6

Marketing mix is tool used by firms to fulfil customers demand which should be designed
properly so that they are able to make benefits by controlling their 4 P's:
Product: Volkswagen is automotive company which offers wide variety of cars which
are diverse in shape, size and dimensions to provide choices to people.
Price: Firm is providing products at competitive prices to cater needs of all segment but
they mainly focus to offer premium value cars in developed countries.
Place: Company had opened units in many nations, but they have set up assembly lines
in only some place which include Mexico, India, Germany.
Promotion: Firm market products informing customers about its features and benefits.
Volkswagen is required to invest money in advertising its vehicles to retain their position and
compete with their rivals.
TASK 3
3.1 Appropriateness of alternative strategies
Business strategy is more important for the business to implementing effective process in
order to get higher success (Bucolo and Matthews, 2011). For capture lager market share
company use various appropriate strategies and also expand their business in effective manner.
There are some alternatives strategies which is used by the VW are as follows: Substantive growth strategy: In this strategy company expand their business in both
vertically and horizontally which helps in inviting larger umber of customers towards
their business process. In this two enterprises merge with each other for executing
business activities in new areas. Number of business activities helps increase the
profitability level of the business in appropriate manner. VW introduce the new concept
of electronics cars to expand their business in another countries and capture larger market
share. Limited growth: In this strategy different types of plan of action are used by the company
in order yo achieve the predetermined targets. It include innovation, product development
and penetration used by the VW which assist in defining electronic cars (Ross and
Blumenstein, 2013). For this joint ventures is also used by the firm to achieve large
number of resources and support facilities. In joint venture two companies are come
together and start their business for achieve conman goals and objectives in appropriate
7

time period. For implement this strategy in organizational activities it require proper
resources. One of the main advantage of using this strategy is to increase efficiency in the
business activities and get higher profits.
 Retrenchment: In this top level managers analysis the effectiveness in the products
which is made by the company so that it is more effective strategy for the company. After
defining effectiveness in the products company eliminate those products which are not
generate profits. One of the best advantage of using this strategy is to save unnecessary
cost in the organization. This is used by the VW to save that cost and getting more
investment in their process (Bastian and Muchlish, 2012). This strategy is divided in
three factors which is revenue generation, assets reduction and cost reduction in order to
sale lots of funds of the firm.
3.2 Selection of a strategy
As per the case study the VW use limited growth strategy which helps in reducing
unnecessary problems which create in the business (Azar, 2011). It also assist in capturing larger
market share from it competitors. This strategy is beneficial for the organization to making
quality products to the customers and also assist in generating more revenue. In UK various
environmental issue are arise and the important issue is more pollution. For this various top level
authorities find effective method which is used by the company to making healthy environment
by producing friendly cars. So that government set effective rules and regulation which followed
by the company to getting ling run advantage. By making electronic cars company attract more
and more customers toward its company and use their products. This also help company to
capturing large market share.
TASK 4
4.1 Roles and responsibilities of personnel
In organization manager is an one person who manage all the business activities in
effective manner. It is main and important responsibility of manager to look all the policies as
well as activities which is formulate in the business by top level management. They make
strategic plan and include necessary step which is more important for the business to get higher
success at marketplace. Managers roles and responsibilities are very high because it assist in
8

implementing all the strategies in appropriate manner so that they are able to achieve positive
results. There are some important role and responsibilities of manager are as follows:
 Managers are the one person who decide and define business trends which exist in the
market and also do important changes in it.
 They use various process to motivating as well as encouraging their employee by giving
incentives, bonus and other monetary and non monetary incentives.
All these responsibilities of manager cover whole process of the business which helps in
implementing the business strategies in appropriate manner (Annabi and McGann, 2013).
4.2 Implementing a new strategy
It is more crucial for the company to implement new strategy which assist in achieving
organizational goals and objectives in appropriate manner. In this proper resources are more
important for the firm. Lack of available resources are increase the operation cost of the
company which automaticity impact on products price (Ang, 2011). There are some appropriate
resources which is requires in implementing a new strategy: Funds: One of the important requirement of the company is funds to implement new
strategy. In absence of proper fund VW can not able to formulate the strategy so that they
can take loan from banks and other financial institutes. Fixed assets: It is also an important resources of the company which include furniture,
building and other fixed resources which is necessary for implementing the new strategy.
 Employees: Workers are one of the important resources of the company who perform all
the activities in effective manner. While implementing the new strategy company
required capable and skilled employees in their process to get positive results.
4.3 Contribution of SMART targets
Strategy is an effective action plan which assist in achieving positive end results in
appropriate manner (SMART Goals, 2017). So that VW set their organizational objectives
according to their SMART targets which assist in resolving all the obstacles which arise in the
firm an get smoothness. These targets define the effective ideas in order to achieve desirable
goals and objectives in best way. SMART targets helps in making effective plan which is used
by the manager of the company.
9

 Specific: It define effective target like company provide quality of products to its
customers in order to get higher success at marketplace. Target of VW should be specific
so that it easily achieved by the company. Measurable: All the targets are measurable which assist in arising its profitability and
also evaluate the effectiveness of the company. These type of targets motivate managers
of the company. Acceptable: In this all the targets must be acceptable so that company define their
effectiveness in appropriate manner (Schaltegger and Wagner, 2011). For this firm have
to set their goals in clear manner. Relevant: In this all goals and objectives should be relevant for the business process
which help to top manager to ensure about the effectiveness of the company.
 Time bound: According to this all targets should be time bounded and also achieve in
appropriate time period.
CONCLUSION
From the above mentioned report, it can be concluded that implementing business
strategy is more important for organization to evaluate the effectiveness of the company. Making
effective policies is more important for VW to define future activities which performed by the
company. Manager of the company should have define company mission, vision, goals and
objectives because its affect the whole process of the strategic planning. On other hand SWOT
analysis also used by the company to evaluate the strength, weakness, opportunities and threats.
It is more important to define by the company before making strategic planning. Which assist in
capturing larger market share and take place in aggressive marketplace.
10

11

12