Volkswagen Group Strategic Planning

This presentation provides an overview of the strategic planning of Volkswagen Group. It discusses the company's mission, vision, objectives, and goals. It also analyzes the internal and external factors that need to be considered when formulating a strategic plan. Additionally, it evaluates the effectiveness of techniques used in developing a business plan.

BUSINESS STRATEGY

TASK 1

VOLKSWAGEN GROUP
STRATEGIC
PLANNING

Company profile
VW AG is world's largest automotive
manufacturing company that delivers
superior quality auto-mobile products for
its business consumers.

Auto mobile products offered by the
company
 Different types of passenger cars including Bentley,
Bugatti, Lamborghini, Audi, Porsche, SEAT, Skoda
and Volkswagen marques;
 Motorcycles under the Ducati brand; and
commercial vehicles under the MAN, Scania,
Neoplan and Volkswagen Commercial Vehicles
marques are sold by the venture.

.
VW AG is divided into two primary divisions, the
Automotive Division and the Financial Services
Division, and has approximately 340 subsidiary
companies. The company has operations in
approximately 150 countries and operates 100 production
facilities across 27 countries
1.1 business mission, vision, objectives
and goals

Continued.....
 Strategic approach is used by the company for
meeting its required objectives and it aids in ensuring
long term growth and success of the firm.
 Currently there are 340 subsidiary companies of VW
AG and it is operating its functions in more than 150
countries.
 There are 100 production facilities of the company
across 27 nations and it has two joint ventures in
China.

Continued.....
Mission :- VW AG is working with the mission to be a
leading automotive company by offering superior
quality of automotive products to the consumers of
business.
Vision :- VW AG is working with a vision to provide
value to the customers so that their needs and
requirements can be meet.

Continued.....
Objectives :-
 Company is carrying out its operational process
with the objective to make use of advanced and
innovative technology so that new attributes and
features can be added in the existing product range
and new products can be launched in market.
 Second objective of the company is to provide
values to the shareholders of the business and
giving them best value for money.
 Third objective of the company is to increase its
existing market area by 5 % in coming next year.

1.2 Analysis of factors that needs to be
considered when formulating strategic
Internal factors are as mentioned :-
Organizational structure :-
 Division of task and work to the staff members
defines about organizational structure.
 It is important that job responsibilities should be
properly assigned to staff members so that they
should be properly made aware about the work that
they need to complete.

Continued.....
Organizational culture :-
 People working in company carry different attitude, values,
norms and beliefs which gives impact on the overall
organizational culture and due to that performance of the
company gets influenced.
Human resources :-
 Skills and capabilities of an individual gives impact on the
execution of business functions and due to that impact is
being observed on profitability of the company.

Continued.....
EXTERNAL FACTORS :-
Market competition :-
 Globalization has created huge market competition
and due to that impact has been observed on strategic
planning process of the company.
 It is vital that action plans should be made for gaining
competitive advantage for the entity.
Technological changes :- Regular advancements are
happening in technical sector and it is giving impact on
the strategic planning process of the business.

1.3 Effectiveness of techniques used while
developing business plan.
Ansoff matrix :-
 In this method four different areas are covered that
includes Market development, Diversification,
Market penetration, Product development.
 Action plans are made for making plans for these
four elements.

Ansoff matrix

Continued.......
Evaluation of effectiveness of techniques :-
 Benchmarking technique can also be used for
developing marketing strategy for the company.
 In this method existing business practices and
processes are compared with the best practices used
in other companies.

REFERENCES
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environmental sustainability: a resource base and framework
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122(1). pp.145-165.
Casadesus-Masanell, R. and Ricart, J. E., 2010. From strategy
to business models and onto tactics. Long range planning.
43(2). pp.195-215.

REFERENCES
Mithas, S., Tafti, A. and Mitchell, W., 2013. How a
Firm's Competitive Environment and Digital
Strategic Posture Influence Digital Business Strategy.
Mis Quarterly. 37(2). pp.511-536.
Reinhardt, F. L. and Stavins, R. N., 2010. Corporate
social responsibility, business strategy, and the
environment. Oxford Review of Economic Policy.
26(2). pp.164-181.

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