Volkswagen Business Strategy (TASK 21)

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Organisational Audit of Volkswagen...............................................................................1
2.2 Environmental Audit of Volkswagen...............................................................................2
2.3 Importance of Stakeholder Analysis................................................................................3
2.4 New strategy for Volkswagen..........................................................................................4
M3...........................................................................................................................................5
TASK 3............................................................................................................................................6
3.1 Analysis of appropriate strategies....................................................................................6
3.2 Justification of selecting a strategy...................................................................................7
TASK 4 ...........................................................................................................................................8
4.1 Roles and Responsibilities ...............................................................................................8
4.2 Analysing the Resource Requirements.............................................................................8
4.3 Contribution of SMART targets.......................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is an important part of any organisation. It helps the business to attain
its goals and objectives in a systematic and effectual way. It basically means a plan which is
made by top level management of companies and implemented by the middle level managers
under guidance of higher level managers. The company referred here is Volkswagen which is an
Auto mobile company from Germany. This report will analyse the strategic positioning of the
given company and an environment audit of the company will also be covered in this report. The
importance of stake holders analysis and a new strategy will also be prepared for then company.
It will also cover the approaches which are use for the strategies evaluation and how a chosen
strategies is implemented is also covered in this.
TASK 1
Covered in PPT
TASK 2
2.1 Organisational Audit of Volkswagen
In order to conduct the organisational audit of VOLKSWAGEN, it is necessary for the
company to evaluate its core strengths and weaknesses so that correct situation of company is
known to the management (Aitken, 2016). The correct way to conduct the organisational audit is
to do SWOT analysis of the company. It will help in knowing the strategic positioning of the
company in the market. It is very essential for the company to acknowledge its positioning in the
market. It will help them in realising their strengths and weakness. It will help them in
becomoing a superior performer in the market. Volkswagen is an automotive company that is
successfully selling its various brands like Bently, Bugatti, Audi , Porsche etc. they are operating
in more than 150 countries and they are having their two major ventures in china as well.
The SWOT analysis of VOLKSAWAGEN is described below:-
STRENGTH WEAKNESS
 Among all the automotive company
the brand portfolio of Volkswagen is
the widest.
 They are a follower of diversification
 Weak in customer satisfaction part and
it needs to be improved to achieve
customer loyalty.
 The market position in North America
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strategy which means that the company
is trying their hand in every other
business also (Brush and et. al).
 The joint ventures done with the local
Chinese auto makers are a big support
for the company because company gets
help from them whenever they require
any.
is not satisfactory which needs to be
improved.
 The market coverage in the whole
market is to increased and for that
market shares in major market segment
needs to be improved.
 Needs improvement in its price and
revenue segment also
OPORTUNITIES THREATS
 It is having good market position in
China, Argentina, south Africa and
Brazil which helps them in developing
the market in Asia.
 The dealer network is of high
integration which helps the company in
increasing its efficiency.
 The brand is considered superior in he
car market which helps the company in
expanding the product program and to
enter new segments in the market.
 Maybe VOLKSAWAGEN is a superior
brand but it also faces threats with other
brands present in the market namely
Skoda, Honda etc.
 Increasing government regulations
creates a problem for the company in
conducting the operation of the
company (Carraher and Paridon,
2015).
 The damages that will happen in future
will have to be paid by the company
itself if it is related to the production
then only.
Besides this, porter's generic model is also used by VOLKSAWAGEN for gaining high
competitive advantage in market by providing greater and valuable products to the customers.
The detailed analysis of this strategy can be explained as:-
 Cost leadership – Their main aim is to produce low cost products so that more customers
are attracted towards the company. It is new of the traditional methods of ascertaining
cost.
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