Business Strategy Analysis: Case Studies

This assignment delves into the realm of business strategy, requiring students to analyze provided case studies across diverse industries. It emphasizes understanding key strategic concepts like transparency, sustainability, innovation, stakeholder engagement, and e-business strategies. Students are tasked with examining real-world examples of firms implementing these strategies, evaluating their effectiveness, and drawing insights for future business decision-making.

Business Strategy
Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4

Covered in PPT.......................................................................................................................4
TASK 2............................................................................................................................................4
2.1 Strategic positioning of Volkswagen by carrying out an organisational audit.................4
2.2 Environmental audit for organisation...............................................................................5
2.3 Significance of stakeholder analysis while formulating a new strategy...........................6
2.4 New strategy for Volkswagen..........................................................................................6
TASK 3............................................................................................................................................7
3.1 Appropriateness of strategies...........................................................................................7
relating to market entry, substantive growth, limited growth or retrenchment for Volkswagen
................................................................................................................................................7
3.2 Justification of selection of strategy.................................................................................8
TASK 4............................................................................................................................................8
4.1 Roles and responsibilities of personnel responsible for strategy implementation...........8
4.2 Resource requirements for implementing a new strategy................................................9
4.3 Contribution of SMART targets to achievement of strategy implementation.................9
CONCLUSION.............................................................................................................................10
REFERENCES..............................................................................................................................11
INTRODUCTION
Business strategy is an art, science and craft of formulating, implementing and evaluating
functional decisions which enable an organisation to achieve long term objectives. It is also a

process specifying organisation’s mission, vision and objectives as well as developing the
policies and making proper allocation of resources to achieve organisational targets. Volkswagen
was established in the year 1937 by German labour front in Berlin (Alsudiri, Al-Karaghouli and
Eldabi, 2013). It is a multinational auto mobile company making cars for each segment of
society.
In this report, explain about, significance of stakeholder when formulating new strategy,
appropriateness of different strategies and roles and responsibilities of personnel which are
making strategic plans.
TASK 1
1.1Analysing the way mission , objectives and goals core competencies inform stratergic
planning

Process of decide and define strategy for execute future operations of business is known as
strategic planning. This process of company largely affect by its vision, mission and core
competencies and this can be better understood by following table:
All these elements affect the strategic planning of enterprise as managers develop, formulate and
choose strategy as pet the objective set by enterprise.
Vision of Jack&Jones
Vision is known as the state which firm want to achieve in coming future years. Main vision of
Jack&Jones is to make quality products and deliver the same to betters satisfy the needs of its
customers. Vision is the elements which largely affect the strategies which will be choose by
manager to execute company's operations.
Mission of Jack&Jones
Mission of Jack&Jones is to create and maintain a good relation with suppliers so they can
provide them quality raw material. According to the mission manager of Jack&Jones create
strategies to build a good relationship with suppliers.
Core competencies
Unique features or skills of an enterprise which make it different
1.2

Vision and mission: Vision describes long term business objectives and mission shares purpose
for operating business.
Identify stakeholders: stakeholders are such groups which have their effect on business. It is
necessary to consider them while making strategic planning.
Scan internal environment: It helps in identifying strengths and weaknesses of the strategic plan
which is going to be made by the company.
Scan external environment: It helps in identifying the opportunities and threats. Also includes to
asses the political, social and other factor which have their impact but cannot be controlled.
Determine action steps: These are closer to achieve the goals which helps fulfilling the
organisational objectives.
1.3

BCG growth share matrix: It is a planning tool which uses graphical representation of company's
products and services in an effort to help the company to decide what is should keep, sell or
invest in.
Directional policy matrices: The importance of this strategy is that it is a choice between two or
more good operations. It helps in decide at which segment of market they should develop
tactics.
SPACE: It is used in strategic management and planning. It allows creating the idea for
appropriate business strategy.
TASK 2
2.1 Strategic positioning of Volkswagen by carrying out an organisational audit
Volkswagen is a multinational auto mobile company that makes the cars for each
segment of society that differs from luxurious to normal. To make it better, it makes some
changes in the car. Apart from that, to make it as per the needs of customers, these changes are

essential and they add some unique features in the cars as well (Azar, 2011). All the customers
of this company are very loyal towards. To gain confidence of society, they also donate some of
the part of profit for their welfare. For the purpose of auditing, company uses SWOT analysis:
Strengths: Major strength of company is their clear goals and capabilities to fulfil the
wants of customers. In the last three years, sales and profit of company increases. Main power of
this organisation is their business strategies to attract every segment of customers and provide
donation for the welfare of society.
Weaknesses: The main weakness of this organisation is that they are not doing any
promotional activities to make customers aware about products and features they are providing.
Another weakness of this company is that the price of cars is little high in comparison to other
competitor firms that are dealing in the same segment. Their pricing policy and unfocused
approach makes the cost of cars high.
Opportunities: Company is already well established and they have many opportunities to
increase the sales by doing promotion of cars and their features. By adopting proper policies,
they have the chance to expand their business in new areas.
Threats: The major threat to company is that competition is high in auto mobile industry.
Main reason of high competition is that there is no restriction on the entry of the new companies
in market.
2.2 Environmental audit for organisation
It is necessary for every company to do environmental analysis to know about the factors
which affect environment adversely. Reason behind its significance is that it not only affects the
profits of company but also dangers the existence of company. In car industry, there are many
problems that firms face related to environment like noise and air pollution (Bucolo and
Matthews, 2011). So, Volkswagen perform environmental audit with the help of PESTLE
analysis:
Political factors: Volkswagen operates its business across the world. Different countries
have their distinct laws which affect the business of company. Infringement of any law by
company endarge4rs them they have to pay the hefty fines.
Economic factors: Economic factors are those which affect the economic condition of
country. Economic factors persist in UK are beneficial for the market of Volkswagen.

Social factors: Social factors are related to society in which company operates. It is
related to the pollution which increases because of this car industry. They have to take the
revolutionary step to develop electric cars which is low in cost and attract the middle class
customers.
Technological factors: Technological factors have a great impact on business. In today's
world, the technology changes at a fast pace. By adopting new technology by company it helps
them to increase their production and sales (Bucolo and Matthews, 2011). It also helps them in
maintaining the data base and accounts in systematic manner.
Legal factors: Government makes some rules and company has to follow them. If they
are not following them, it adversely affects their business.
Environmental factors: For conducting the business effectively, that is should not affect
it adversely. They have to see all factors such as climate, natural terrain, seasonal variations, etc.
2.3 Significance of stakeholder analysis while formulating a new strategy
Stakeholders are the important part of any business. Main stakeholders of company are
suppliers, customers, employees, creditors, government and shareholders. All these stakeholders
have their personal interest in the business. Mapping of the stakeholders means analysis of
stakeholders, which helps in to know about the role and responsibilities of them while taking
decisions regarding formulation of new strategy (Butler, 2012). Stakeholder analysis makes a
huge impact on new strategies. Importance of stake holder analysis as follows:
1. Marketing strategies: While developing their strategies it is required that to consider
customer group. Being honest, transparent and fair in your communication and
interaction with customers is a basic expectation.
2. Motivating employees: Analysis the role of employees always helps to increase the
satisfaction and production. Long term considerations in employee assessment are
turnover and morale. Understanding of their needs helps in motivating the employees.
3. Forming partnerships: Analysis of different stake holders helps in maintaing the
relationships between distributors, customers, employees etc.

2.4 New strategy for Volkswagen
There are many strategies available to Volkswagen such as business development,
growth development etc. Out of all, company has chosen the strategy of product development.
This strategy of Volkswagen is that they have to focus on development of product to satisfy the
needs of their customers. By taking the help of various stakeholders, they are able to implement
the strategy of product development. This strategy helps to increase the profitability of company
and they can use this for their expansion in different countries (Dandira, 2011). It is necessary
for company to develop the products because of intense competition in the market. Consumers
have lots of choices in cars provided by different companies. Thus, this strategy will help them
to improve the quality and features of company so that they can effectually compete in the
market. In the context of product development, There are some good strategies mentioned
below:
 While they are developing their products it is very necessary to take care of stakeholders
because they are the important parts of organisation. Stakeholders like government ,
shareholders and investors are the main source of funding for companies. They are real
owners of the company every function of company depends upon their funds. To develop
their products it very necessary to take permissions of them.
 The top management of the company has to make policies which are beneficial for
employees and it is the duty of the manger to implement these effectively in company.
TASK 3
3.1 Appropriateness of strategies
relating to market entry, substantive growth, limited growth or retrenchment for Volkswagen
Alternative strategies are necessary to develop opportunities for the purpose of solve the
issues and problems related to business activities (Elhamma, and Zhang, 2013). These strategies
are very important to increase the profitability of business and to expand their business and make
entries in new market. New market entry helps to increase the sales and create the opportunities
to attract the new consumers.
Market entry strategies

It is the method of delivering goods and services and distributing them and when we are
doing importing and exporting services, it refers to develop and manage contracts in foreign
country. Some of the strategies are: Licensing: It is the method of providing licence by one company in country to other
company in different country to use the manufacturing, processing, trademark, know-
how and some other skills which are provided by licensor. Similarly, Volkswagen is
company headquartered in Britain but doing there business in all over world by using the
licensing strategy. Joint venture: It is a strategy in which two or more investors share ownership and control
property rights and operations over one company (Ferreira and et. al., 2011). It is very
common strategy to entering in foreign market. Volkswagen also uses this facility to
enter in market in different countries.
 Merger & Acquisitions: It is the strategy used to expand the business. This strategy is
powerful driver of globalization. Various companies used Acquisitions to enter into new
markets. Volkswagen is also one of the which uses this to enter in new market and to
attract the customers.
Substantive growth strategies
This strategy helps Volkswagen to enhance their market share. In this type of growth
includes unrelated, related, vertical, horizontal and many more. Volkswagen uses some growth
strategies to formulate their growth and increase their profit.
Limited growth
It includes market penetration, market development and product development. All these
factors important for development of business (Galpin and Lee Whittington, 2012). With the
help of this strategy equity will increase and debt will decreased.
Retrenchment
It helps Volkswagen to minimise business related operations. Retrenchment includes liquidation,
turnaround and also divestment. In this, firm can minimize its single operation and it is the
responsibility of manger to maintain financial condition of firm.
3.2 Justification of selection of strategy
The strategy adopted by Volkswagen is growth strategy. It is very important to increase
the business of company. With help of this strategy the company should know about their

competitors, strategies and also identify the demands of customers. This strategy helps in market
and product development. This strategy used by the companies because it helps in resolving the
problems and issues related to business. Volkswagen uses the fund on modification of its
existing products and also invest it on international outlets of business this will helps the
company to grow.
TASK 4
4.1 Roles and responsibilities of personnel responsible for strategy implementation
Strategic implementation is the process of distributing the work that who, when, where
and how can reach to targets of company. While implementing any strategy it is necessary to
focus on whole company. Human resource department has the duty to implement the all
strategies in effective manner (García‐Rodríguez and et. al., 2013). Personnel manager is the
responsible to monitor and control the activities of company. The management of the
Volkswagen always motivate their employees to work hard and in proper manner to maintain the
positive working environment. It is the duty of the management to fulfil the all needs of their
customers and in this regard they have to develop their products timely as per their needs and
match with new technologies. Some of the roles and responsibilities of personnel are as follows:
 To implement all the policies which are provided by top management in workplace
 Communication: To maintain the communication between employees and top
management
 To provide the good quality resources to employees so they maintain the quality in
products (Goll and Rasheed, 2011).
 Project team: It is the duty of the managers to develops the teams according to their
specifications. It includes Sales team, distribution team, management team etc.
 Distribution of roles: It is the duty of the mangers to distribute the roles to individuals
and to monitor them that they do it with efficiency.
 Providing targets to departments. It is the duty of the personnel to provide targets to
departments so they can use these targets to measure their actual performance. If the get
any deficiency in their work then have to take the corrective measures to remove them.

4.2 Resource requirements for implementing a new strategy
Resource allocation is the process of distributing the different resources to departments
so they can start their effectively and achieve the organisational targets (Granados and Gupta,
2013). Some of the resources which are required to implement new strategy are: Human resource: The whole working of the company is depends upon this resource. It
plays the vital role in success of business. It is very important to start any new strategy.
IT is very necessary that manpower should be properly distributed. Financial resources: These resources are necessary to provide funds to new strategy.
Volkswagen uses the two types of financial resources which are equity and debt to fund
their strategies (Hall and Wagner, 2012). It is the duty of this department is to mange the
funds properly.
 Time and material resource: It is very necessary to provide the materials to employees
timely so they can start the work on time and finish it as per deadlines. Any delay affects
the whole performance of the company.
4.3 Contribution of SMART targets to achievement of strategy implementation
SMART refers to specific, measurable, achievable, realistic and time bound. Specific: Its aim is that to provide the targets to each department. Volkswagen has to
enhance their profits by 5-7%. Measurable: The goals should measurable in terms of performance that completed on
time with efficiency. Achievable: That they provide the targets which are achievable not provided the
imaginary targets (Helms and Whitesell, 2013). Relevant: The targets should be relevant so they can be achieved easily by operations of
the department.
 Time bound: It means all the targets should completed on time otherwise it decreases the
efficiency of the operations of the company.
CONCLUSION
It can be concluded from the above report that it helps in achieving the targets
effectively. SMART objectives helps in developing new strategies effectively by Volkswagen.
All the resources have their equal importance in development of the company.

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Online
Business Strategy. 2017. [Online]. Available Through:
<http://finsburyfoods.co.uk/who-we-are/business-strategy/> . [Accessed on 3rd
September, 2017].