Business Strategy and IT-Enabled Transformation

The provided assignment focuses on the concept of business strategy and its relationship with IT-enabled transformation. It includes a list of references to relevant studies and articles on the topic, providing a solid foundation for understanding the subject. The assignment also highlights the importance of matching business strategy with CIO characteristics for organizational performance. Additionally, it covers the influence of business strategy on project portfolio management and its success. The resources provided include online articles and books that offer insights into business strategy and IT-enabled transformation.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2 ...........................................................................................................................................3
2.1 Organisational audit..........................................................................................................3
2.2 Environmental audit.........................................................................................................5
2.3 Significance of stakeholder analysis................................................................................6
2.4 Present a strategy for company.........................................................................................7
TASK 3............................................................................................................................................8
3.1 Alternative marketing strategies relating to market entry................................................8
3.2 Justify the selection of strategy........................................................................................8
TASK 4............................................................................................................................................9
4.1 Roles and responsibilities of the person who is involved in strategic planning..............9
4.2 Resources required for implementing a new strategy....................................................10
4.3 Contribution of SMART targets.....................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In every business organisation, business strategy is a tool that is develop in order to
achieve organisational goals and objectives. It seems as long term business plan for 5 to 8 years.
Business entities are evolved efficient strategies in order to resolve their all issues i.e. financial
and non-financial. Along with this, these strategies and policies also put huge impact on business
activities and operations (Woodcock, Green and Starkey, 2011). Volkswagen is the chosen
organisation in this present report, that is a German auto mobile company. It was founded in 28 th
May 1937 and now is spread all over the world. It also has sales revenue of €107.641 billion.
Apart from this, the present assignment will be included mission, vision and goals of cited
enterprise. There will be a discussion on the factors which will put an impact on strategic
planning of business organisation. Organisation and environmental audit will also conducted by
SWOT and PESTAL analysis of the company. A present business strategy is developed for
Volkswagen; it will be included that how a company achieve its goals and objectives from target
market. Readers will also came to know about the roles and responsibilities of the persons who
are liable for strategic planning process of a business organisation.
TASK 1
Covered in PPT
TASK 2
2.1 Organisational audit
Organisational audit comprises with evaluation of all internal factors that are liable for its
growth and development. It can add values in the operations and practices of business
organisation. Along with this, organisational audit is liable in order to achieve its goals and
objectives in a systematic manner and gives an effectiveness to the firm for risk management.
Apart from this, it can be done through SWOT analysis by determining strength, weaknesses,
opportunities and threats of a business entity.
Below mentioned SWOT analysis of Volkswagen: -
STRENGTH
 Volkswagen has a great market
presence; presently it is operated in 145
countries and known as the third
WEAKNESSES
 As there are so many competitors are
establish themselves in market, so as
this company has limited market

biggest auto manufacture industry over
the globe (Wang and Verma, 2012).
 It has a strong diversified product
portfolio in target market, i.e.
Volkswagen is an owner of 13 auto
mobile brand, such as – Bently, Audi
etc. The main objective of company is
to produce cars for all type of
customers.
 Volkswagen spend a lot in market
research so as it can easily recognise
needs and wants of potential customers.
Apart from this, the firm has strong
production capabilities which helps its
to keep growing in global market.
 VW is a market leader in auto mobile
sector by having wide range of
vehicles, i.e. cars.
presence.
 It does not has great brand awareness
like GM and Toyota.
 Negative publicity weakening the
whole Volkswagen brand.
 Little expertise and no competencies in
making driven vehicles.
OPPORTUNITIES
 Volkswagen is now focusing on
developing relationship with non
German car manufactures, due to this,
the company will easily gain high
market share.
 In these days, customers purchasing
power is highly increased as they tend
to buy four vehicle.
 The company is considering to acquire
the competitors in future; apart from
this, its designs are always unique or
THREATS
 Intense competition.
 Maximising government regulations.

novel from others. Fuel prices are expected to rise in the
future and Volkswagen is focusing on
significantly policies to remedy
damaged brand reputation.
2.2 Environmental audit
Environmental audit consists with quantify performance and position of an organisation.
It helps a business entity that how to meet legal requirements of the company. In addition,
environmental audit is also helpful in analysing those external factors that will impact its brand
image and profits. It can be done through PESTLE analysis.
PESTLE analysis of Volkswagen: - Political factors – There are many political issues that impact upon a company's market
growth and its performance as well. In UK, if government can raises tax rates and duties
upon cars so as sales will goes down. The company is operating in various countries as
their political situations are not same, for that the firm needs to develop their strategies
accordingly (Verbeke, 2013). Economical factors – Auto mobile sector is known for providing job opportunities to
people. So as we can say that, the industry contributes in order to increases national
income of that nation. In UK, Volkswagen is now become a part of its economic growth
and success; this commercial entity is now spreading as it generates many employment of
the persons of United Kingdom. Through GDP rate of the country will also boost up. Social factors – As above discussed, the company is extended in 145 countries. In these
days, people's choices are rapidly changing , so as Volkswagen needs to produce those
products which are able to meet market needs and demands. Social factors involve
cultural, values, beliefs, morals, religion; all these elements of society will affect a
company in which it operates its functions. Technological factors – In modern era, various business organisations are used
innovative and effective techniques so as their products can become more branded and
value added. Along with this, Volkswagen is functioning in different countries, therefore
it needs to timely updated its production process for achieving high market growth and

shares. Business organisations those are able to adopt all trendy tools of production
cannot stay for long term period in market competition. Legal factors – Every country has their own legal laws and responsibilities. If UK
government, has regulated some restrictions on importing and exporting products to
another countries. Legal factors can reduce sells and profits of a company in international
marketplace (Teece, 2010).
 Environmental factors – These elements are focuses that every business organisation
needs to produces green products that do not pollute environment. Their goods are always
be eco-friendly.
2.3 Significance of stakeholder analysis
A stakeholder is any person who could be affected positively or negatively upon its
functions and operations. Employees, creditors, debtors, customers, shareholder, government,
suppliers etc. are the important stakeholders of a company. Volkswagen is conducted stakeholder
analysis in order to identify the those activities which are affected by stakeholders. Managing
stakeholders is a very critical task for accomplishing success of every project.
In cited firm, if managers are able to communicate with their stakeholders as they can
easily know their interest. For example- if managers of Volkswagen are communicates with
employees as they can understand their needs and wants. If staff members are getting positive
and healthy working environment, thus it will improves their performance as well as production
level. Apart from this, stakeholders have a novel insights towards issues and problems of a
company as they are liable for company's decision making process (Spender, 2014). Such
persons can also build trust and increases the consequence of a project or task. In addition, the
evaluation also enhancing the transparency that leads to better decision making.
There are given main advantages of stakeholder analysis, that are stated as follow: -
 Better managed relationships
 Identification of future risks and uncertainties
 Relative importance, interest and power.
 Managers can take effective strategic decisions
Stakeholders mapping – The mapping is assistive in analysing those persons who may
support or opposed Volkswagen actions. Along with this, stakeholder mapping is a collaborative

process that draws multiple perspective in order to determine the key stakeholders of the
company. It is divided into four parts, such are -
 Identifying – selecting relevant groups, people and institutions.
 Analysing – Recognising interests and perspectives of stakeholders.
 Mapping – visualising relationships to goals Prioritizing – find out issues and give a ranking to all stakeholders as per their affect.
These are the main stakeholders of the company -
Stakeholders Concerns
Government Employment, legalities, truthful reporting, taxation.
Suppliers Equitable business opportunities
Creditors Liquidity and credit score.
Investors Income and return on investment.
Owners Raising capital, social goals, market share etc.
2.4 Present a strategy for company
It is essential for every business organisation is to develop an effective marketing
strategy. In Volkswagen, the company needs to use market penetration strategy which helps it to
achieve market goals and objectives. Apart from this, the firm uses double marketing in order to
give positioning its brand. Double marketing is responsible for running marketing campaigns by
giving various messages to people. But the company needs to upgrade its current strategies and
adopt new. This will help in maximising market growth and development.
There are given following strategies that also needs to use by Volkswagen: -
 Firstly needs to focuses on its marketing activities by using effective promotional and
advertisement techniques. It will helps in increasing brand awareness and as well as
positioning in target market of the company (Smith, Mills and Dion, 2012). Volkswagen
have to promote its products on audio and video advisement, so as to many customers.
Numerous buyers are culpable for increasing sales and makes higher profits to the
commercial entity.
 Second strategy is, Volkswagen must emphasis on engaging employees towards its
working activities and operations. Along with this, employees are important stakeholder

of a company, so as managers needs to know their interests and perspective. Employers
have to provide training and development assistance to their staff members so as they can
produce and meet market trends.
TASK 3
3.1 Alternative marketing strategies relating to market entry
There are various number of option are available which is utilized by the Volkswagen for
catching a bigger areas of the overall industry or to extend its business exercises. Following are
the primary techniques which can be followed by an organization:
Substantive development: according to this system, firm can catch a bigger share of the
pie with the coordination to other firm either on a level plane or vertically. Enterprise combine or
procure another association and than embrace another ventures. One of the principle benefits
standpoint of this is it extend the activities and operation of business in new regions. According
to the given contextual analysis, Volkswagen need to extend its exercises and needs to catch a
bigger piece of the overall industry by presenting the idea of electronic models of cars.
Limited development: - some of the strategies are incorporated into this for
accomplishing the set target. Item advancement, advertise entrance, development and numerous
other (Scholes, 2015). Advancement can be embraced by Volkswagen as organization is
presenting the new idea of electronic auto. In support to build the measure of its benefits joint
wander can be received by the organization.
Conservation: according to this methodology, endeavour is fitting to close down or close
their ventures that are not appropriate and can not create any outcomes for the firm. Transfer by
firm of those creating units and items is the fundamental idea that are carried by the company. It
provide support in cut down its cost. Basically, company can put this sum in other in other
beneficial activities for catching a large share of the pie. Same should be possible by the VW
AG.
Below mentioned certain growth strategies which are related with market growth: -
 Sustainable growth strategy – With reference to a business organisation, sustainable
growth strategy is used in order to attain growth which is essential to maintain by a
company by resolving all problems and issues. A business that grows too quickly may
find it difficult to fund the growth.

 Limited growth strategy – In order to gain high competitive advantage, managers are
used limited growth strategy. It is classified into four parts, i.e. market penetration,
market development, product development and diversification. For example - if a firm
has limited growth then it can adopt this strategy.
 Retrenchment – It is something which relates to downsizing, when a company goes
through retrenchment. It decreases expenditure in an attempt in order to become
financially solvent. Firm uses this strategy so as to save businesses from economic
downturns and further losses.
3.2 Justify the selection of strategy
It has be observed that because of confronting basic issues and substantial number of
business issue it is exceptionally vital and basic for the firm to choose and a powerful
methodology. It will be beneficial for the company to use resources in better and quality manners
for making the auto and in the meantime organization should concentrate on the idea of
electronic auto as well. Both the countries are facing the economic related issues and issue like
high pollution damage. Different legal experts are as still undertaking to explore the technique
which ought to be embraced by the organizations. Government is assessing the effectiveness of
auto and measure tool naturally an auto is. For communicable a bigger areas of the market and to
make progress it is extremely fundamental for the company to take after every one of the
controls set by the legislation bodies (Montgomery, 2011). Through this organization can match
a bigger part of the overall industry and in the meantime can dispose of the different grounds of
rising issue. Alongside this firm can accomplish proficiency and can expand the viability of is
business to make effective outcomes form the joint ventures. According to the give case analysis,
Volkswagen has receive constrained development methodology as at present the firm has
participated in two joint ventures in china.
In order to achieve high competitive advantages, business managers of Volkswagen have
to use new product development strategy. In which firm can achieve goals and objectives from
target market in an effective manner. Along with this, adoption of product development strategy
forces a firm to produce new and innovative products so as to fulfil customers' needs.

TASK 4
4.1 Roles and responsibilities of the person who is involved in strategic planning
There are many persons that are included in strategic planning process of a company.
Managers, Senior managers, directors, CEO and employees, these are the people are liable in
creating Volkswagen's strategies and policies. Along with this, the core process of strategic
implementation helps in enhancing market position of the business entity. In order to gain better
results, it is very necessary that all members are performed their duties on a given time period. Employees – These people are responsible to conduct a market research for
understanding customers needs and demands. It is also helpful in measuring competitors
strength. If both these things are involved in strategic planning so that the plan will
become more competitive and effective as to compete with external market forces. Managers – These person are liable for directing and controlling all activities which are
involved in strategic. Managers give direction to their employees so as they can complete
their task on time (Mithas and Lucas, 2010). Along with this, administrators are focuses
on how to take better decisions for the growth and success of companies.
 CEO – Volkswagen's Chief Executive officer is culpable for taking all final decision
regarding its strategic planning. Any policy cannot be implemented without the
permission of CEO. The main role of that person is to report the broad of directors. CEO
communicates high performance standards of strategic planning and develop plan for the
same for gaining better results.
There are given roles and responsibilities of all those person who are highly involved in
strategic planning of Volkswagen. A plan would be make successful if all workers and
employers are worked together for achieving a specific goal and objective.
4.2 Resources required for implementing a new strategy
There are various kind of resources are required in order to implement a new strategy. In
addition, resource allocation is a crucial part of strategic management that helps managers to as
they can do maximum utilisation of available resources. Below mentioned some major resources
of that is used by Volkswagen: -
Resources Estimation
Financial resources These resources comprises with the ability of finance in firm's chosen

strategy. Every effective strategy needs appropriate funds so as to
launch it in target market. Financial resources are liable to give
strength and reputation of the management team as well as the overall
business. Along with this, such resources can be obtained
attractiveness of market in which the business operates.
Human resources Employees are the heart of every business organisation, as they are
responsible for the growth and development of company. In addition,
it is essential duty of managers is to spend some money on their
human resources by providing them training and development
(Meskendahl, 2010). It will helps in increasing employees' skills and
knowledge, with that they can generate innovative ideas and produce
something novel that is able to accomplish market ontogeny for cited
commercial entity.
Physical resources In this modern era, there are diverse tools and techniques are
developed i.e. distribution channels and marketing management
process. Information techniques helps a company to interact with
potential buyers and understand their desires. Additionally, physical
resources covers a wide area of operational activities that is concerned
with physical strategy of a firm.
4.3 Contribution of SMART targets
A strategic is related with action plan that enable to attain organisational goals and
objectives in a systematic manner. Business operations should be effective while implementation
of a strategy and are bale to increase outcomes of the company. Along with this, it is the duty of
managers as to make various plans, they must able to make effective operations. For all this
processes, Volkswagen needs to adopt the concept of SMART objectives; it means that targets
should be specific, measure, attainable, reasonable and time bound.
 Specific – Goals and targets have to be specific in its nature. It's not be get rigid. Specific
objectives aids in making adequate activities for the firm.

 Measurable – it is very necessary that all objectives of the company could be measure
easily. If plan is measurable then it can guide employees to attain a particular goal and
objective i.e. enhancing sales by 40%.
 Acceptable – Plan is able to acceptable by all stakeholders and society.
 Relevant – Goals and objectives are related with vision and mission of the firm. For
example- sales are increases by 40% , it helps in improving financial performance.
 Time bound – Goals are made for specific time period so as they should be attain in the
same.
Strategic implementation plan: -
 Evaluation of action and objectives
It is the first step of strategic implementation plan. It helps managers to identify those actions
and objectives in order which they want to achieve from competitive market.
 Formulation of strategies
After that, they need to formulate specific strategies and policies to achieve such aims and targets
in a certain time period. But before implementing strategies, employers needs to consult them by
the experts and specialists so as to gain maximum benefits in an effective manner.
 Allocation of resources
It is the an important part of strategic implementation plan. In this, managers allocate various
resources in order to scheduling activities and practices. There are different types of required in
the completion of specific projects and tasks.
 Actual performance of tasks and activities
Afterwards, managers have to measure actual performance by adopting diverse tools and
techniques i.e. key performance indicators, 360 degree feedbacks, management by objectives, set
benchmarks etc. it include implementation of strategic plan within a business organisation.
 Leading and controlling the performances of activities
After evaluation of performance, managers lead and control on all activities which are related
with strategic planning process. It seems that whether the work is going to be in right direction or
not.
SMART targets of Volkswagen
 Increase sales turnover by 20 to 30% in upcoming year.
 Setting time schedule for all working operations and activities

 Increasing the stakeholders profitability shares
 Providing qualitative products and services to customers
Act Small Months/Days
Develop a business strategy 10 days
Obtain sources of finance 10 to 15 days.
Recruiting strategic specialists 5 days
Identification of allocation of resources 8 days
Prepare a strategic management plan 12 days
Implementation of the plan 2 days
Monitor or review the plan 1 day
CONCLUSION
From the above mentioned file, it has been concluded that strategic management is a
critical part of every business organisation. Present report will describe mission, vision and goals
of a company. Along with this, there are described those factors that concerns with strategic
implementation. BCG matrix and porter's 5 forces are explained as planning techniques. In
addition, the assignment has been discussed that how organisational and environmental audit
influence overall market policy of Volkswagen. It also involves SMART objectives for attaining
growth and success of the firm.

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