Business Strategy and Sustainability Analysis

The assignment provided is a detailed review of various business strategy and sustainability-related papers. It includes a list of references to relevant articles, journals, and books, covering topics such as sustainability leadership, green marketing tools, human resource strategy, and stakeholder analysis. The summary also mentions that the document needs to be published on Desklib for students' benefit.

BUSINESS
STRATGEY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Organisational audit..............................................................................................................1
2.2 Environmental audit..............................................................................................................3
2.3 Significance of stakeholders' analysis...................................................................................4
2.4 Present a new strategy for Volkswagen................................................................................5
3.1 Appropriateness of alternative strategies relating to market entry........................................6
3.2 Justify the selection of strategy.............................................................................................7
4.1 Roles and responsibilities of a person who is charged in strategic implementation.............7
4.2 Resources requirement for implementing new strategy........................................................8
4.3 Contribution of SMART objectives......................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is the term which is used by managers to achieve desired outcomes. It
can also be known as long term business planning, which is liable to resolve major issues of the
firm. In addition, effective business strategies are concerned with working activities and
operations; it also include effectively allocation of resources in order to gain high profitability
and growth. It provides long term growth and prosperity to a company (Butler, 2012). The
project report is based upon Volkswagen which is German auto marker. It was established in 28
May 1937 and now serving its services all over the globe. The main aim of the company is to
become a leading provider of sustainable mobility. Apart from this, the assignment will be
discuss those factors which are involved in formulation of strategic plans. There are described
various tools and techniques which are used in developing business plans and policies. Readers
will also came to know organisational and environmental audit. The report consists importance
of stakeholder analysis in order to understand their interests. Managers, employers, leaders,
subordinates, CEO, directors have an important role in strategic implementation process within
workplace. For this purpose, managers have to set SMART objectives in order to achieve market
growth for long term period.
TASK 1
Covered in PPT
TASK 2
2.1 Organisational audit
Effective measurement of each and every activity helps managers to find out needs and
wants of potential customers. It also helps them to gain better outcomes. Therefore, the overall
process is known as organisational audit. It helps managers in verifying company's strategies and
policies. The audit gives an ideal map for core business processes so as to done all working
operation in a systematic manner. If owners' of Volkswagen conduct organisational audit as they
can easily understand their strength, opportunities and weaknesses, threats that will impact upon
business activities and their operations. Therefore organisational audit consists with SWOT
analysis of the firm. So that, organisational audit of Volkswagen is stated as below: -
STRENGTH
 Volkswagen brand portfolio is greatest
WEAKNESSES
 In this competitive environment, there
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between all auto mobile companies. It
has its own 12 different brand of
vehicles. For example- Seat, Audi,
Skoda, Bugatti etc.
 The company will introduced 30 brand
new electrical vehicles by 2025.
Recently is has introduced its new
market strategy - “TOGETHER 2025”.
For that, its focuses on increasing
profitability and efficiency in target
market.
 Operations and activities in Volkswagen
are fully managed which are helpful for
it to achieve goals and objectives
(Dandira, 2011).
 Volkswagen cars are highly technical
and innovative which shows that
company is more focused towards
marketing research.

is a intense competition of various car
manufactures. Through which market
share of Volkswagen is also goes
reduce.
 Little expertise and no emphasis upon
making battery driven cars.
 Negative publicity of Volkswagen can
decrease its market image or
reputation.
OPPORTUNITIES
 Fuel prices will be rise, which is
beneficial for car manufacturers as they
can gain high profits and sales in target
market. Weak pound exchange rate as company
is not able to achieve its sales targets in
UK.
THREATS
 Strict government laws and
regulations.
 Companies will have to pay various
fines if there products are harmful for
environment (Elhamma and Zhang,
2013).
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2.2 Environmental audit
Environmental audit consists with those external factors which will bear on future market
position of the company. It is also known as macro environmental analysis which is used to
identify market trends. The main benefit of environmental audit is it support managers or higher
authorities in the process of formulating effective strategies and policies. This can be done
through PESTLE analysis; brief description of all factors which are involved in environment
audit of Volkswagen, stated as below: -
(Source: PESTLE Analysis, 2014) Political factors – As Volkswagen serve in different countries, it faces many political
issues. Various nations have their own rules and regulations which are regulated by their
government. These laws might be reduced refereed company's growth and success in
global market (Goll and Rasheed, 2011). Therefore, before starting any business,
managers needs to measure the impact of political dimensions so as to done work in
proper manner. Economical factors – In involves deflation, inflation, wages and bank rates, income level
of customers etc. For example – if bank increases the interest rate upon car loans, so as it
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Illustration 1: Environmental analysis

creates hurdles and people are not purchase cars through this, profit and sales of present
company also goes down. Social factors - These factors states customers choices, values, morals, life styles,
market trends etc. If a company do not involve all these elements in its production
process, it might be bear upon buying process of people. Technological factors – Now these days, customers prefer to purchase technological
products which make their life very easy. For this, every firm uses innovative tools and
techniques for influencing a large number of buyers. This can reduce the operation cost
of a company (Granados and Gupta, 2013). Legal factors – Government laws and legislations are the prime obstacles in functioning
of a business organisation in its target market.
 Environmental factors – It is essential managers to use pollution free process while
manufacturing products and services. Volkswagen make several programmes in order to
aware people about environment.
2.3 Significance of stakeholders' analysis
Volkswagen is known in market for its unique or novel design of products. It produce
different automotive cars for fulfilling all needs and expectations of their potential buyers. It
involves many people in their operations, such as – employees, management, creditors, suppliers,
customers, government etc. These people are called stakeholders. In other words, stakeholders
are an abstraction of persons which are liable for firm success. Therefore, stakeholder analysis is
very much important for a company in order to know their interest and wants. It also render
support to top managers as it can monitor future activities which will include in strategic
planning. Stakeholder analysis is also helpful in managing business practices, conflict resolution
and project management, it is the procedure of assessing how decisions will be affected upon
relevant parties. It also provides guidelines to managers in the modification of strategic plans and
policies. Beside this, if managers of Volkswagen communicate effectively to their all stakeholder
as they can ensure about their project's success. Through which, stakeholders will also supports
each and every activities which is encompasses in firm's growth and development.
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(Source: Stakeholder Analysis, 2014 )
It is necessary for the managers of refereed enterprise to know the interest of their
stakeholder. This helps them in developing effective strategic plan which is able to achieve
vision and mission of business entity in an imperative manner (Hall and Wagner, 2012).
Stakeholder analysis also involves mapping, that is an important aspect of firm strategic planning
process.
Stakeholder mapping – It includes variety of techniques which determines who are the
main stakeholders of the business organisation. Stakeholder mapping assists managers in
formulation of effective decisions and conclusion for the betterment of company. In other words,
it is key of successful competition of a project or task. It is criteria of managing business
activities so as to finish them in a systematic manner.
2.4 Present a new strategy for Volkswagen
In order to perform effectively, Volkswagen have to produce a new strategy which helps
it to achieve market growth and sales goals. In addition, it will help it in aligning with its
capabilities so as to fulfil customers' demands in proper way. After doing organisational and
environmental audit, the cited car manufacturer is being faced many issues which are the main
cause of lose edge across external market. That is why, it is essential for it to make new plan of
action that helps in attaining high market position. Therefore, firm is followed limited growth
strategy, which is aimed to reduce resource consumption and make higher productivity of the
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Illustration 2: Stakeholder analysis

company. This is an effective methods by which a company can can establish itself in global
market.
Beside this, the CEO of refereed company states that they have to diminish consumption
by enacting their higher efficiency level. Hence, the firm also have to use Porter generic
approach, that is classified in four parts, i.e. cost leadership, differentiation, cost focus and
differentiation focus (Helms and Whitesell, 2013). It helps a company to gain competitive
advantage by cost leadership through differentiation itself in target market. The strategy states
that, company has to focuses upon achieving high market share by providing variety of products
to their customers.
3.1 Appropriateness of alternative strategies relating to market entry
If Volkswagen wants to enter into new market, then it needs to adopt various alternative
strategies which gives it more proficiency and growth. Apart from this, these are helpful in
providing various future opportunities in which a firm could expand itself. Alternative strategies
gives additional solution towards business issues and challenges. Market entry strategy is too
impelling or accurate for market development. They are accessible in attracting towards
company. Joint venture, franchising, licensing etc. are the main techniques for market entry
strategies. There is given briefly description of alternative strategies is stated as below: - Substantive growth strategy – It ensure effective integration as well as diversification of
market growth. Substantive growth strategy involves horizontal and vertical integration
of business practices so as to done work in proper manner. Volkswagen produces own
raw material instead of purchasing it from suppliers, the company has its own distribution
channels so as to reduce production costs. Therefore, it can be said that substantive
growth strategy has direct relationship with enhancement in firm's practices or
operations.
 Limited growth strategy – The growth strategy helps a company to handle all adverse
situations at workplace. Limited growth strategy can be applicable when business owners
wants to win large market share (Kalyani and Sahoo, 2011). There are four elements of
limited growth strategy, such as –
Diversification: - The strategy is adopted by business units in when current market is
drenched cause of lower sales revenues and profits.
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Product development – It states to produce new and innovative for gaining high market
growth and success.
Market penetration – It aimed to maximise sales by implementing effective marketing
strategies within existing market.
Market development – In this, company wants to expand its sales to enter into new
market. Goods and services are targeted for customer segmentation.
 Retrenchment – It is followed by companies in order to diminish diversity of firm's
operations within workplace. Retrenchment strategy is usage for cutting financial
expenses to make stable business.
3.2 Justify the selection of strategy
According to the case study, it has been stated that Volkswagen is facing various issues
and cannot operate properly. It impact upon its functions in target market. Therefore, in order to
reduce all these problems and cover a large market share, managers need to develop a new
strategy that gives strength to its operations. Apart from this, there managers have to use better
engines and machinery so as to generate qualitative products and services (Moseley III, 2017).
In this challenging era, UK's economy also faces many environmental issues, i.e. air and
noise pollution. Hence, automotive companies have to produces eco friendly cars. Before
launching, government has to test whether it is worthy for environment or not. These
manufacturing industries also have to follow all laws and regulation; it will helped them to
attract wide range of people. Through, Volkswagen also gain great efficiency from competitive
market.
4.1 Roles and responsibilities of a person who is charged in strategic implementation
Strategic implementation is the process of adopting new ways or methods which helps a
company to attain its goals and objectives. The main reason behind this is to extend the market
image of company and to accomplish more proficiency. Employers, top management and
executives have an indispensable role in formulation as well as execution of strategies within
workplace. Without support of these person, systematic strategic implementation is not possible.
Below mentioned the roles and responsibilities who are highly involved in the process of
strategic execution: - Employees – The core process of strategic implementation requires involvement and
attention of staff members because they can easily face up all challenges and issues
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which are occurred within workplace (Rahbar and Abdul Wahid, 2011). Employees are
responsible to follow all rules and regulations which are made by managers. In addition,
they helps in making reality to the strategic plan of the company. Top management – Managers plays a crucial role in effective execution of strategies at
workplace. They are liable in order to set right processes and actions for increasing the
efficiency of a strategy. Apart from this, leaders are helpful in communicating overall
business plan to their managers so as they work accordingly. These people manage and
lead all stages of strategy implementation by aligning workers together.
 Shareholders – It is a person who has his own share in firm's stock. Shareholders are
known as the owner of the company. They are involved in organisation's profits and
success by increasing value of stock. If a company goes down , then shareholders will
loss their money due to decline in prices. Therefore, it is very essential for Volkswagen to
include their shareholders in their strategic planning process so as to increase venture
capital. With this, refereed business is bale to perform well in target market.
4.2 Resources requirement for implementing new strategy
While creating an effective strategy, it is necessary of firms to determine all resources
which are required. Because, lack of resources might be created unwanted delays and extend the
rate of business activities. Below described the main resources which are mostly required in
strategic implementation: - Finance resources – If a firm has great financial resources as it can easily spend upon the
activities of strategic implementation. In other words, company's financial ability. For
instance –if Volkswagen choose the strategy of new product development that is needed
very much investment, effective distribution channels, working capital and production
capacity. To do this, managers requires a lot of amount. This strategy needs to maintained
very carefully in terms of finance (Schaltegger and Wagner, 2011). A company can raise
its funds from- cash balance, bank loan and overdrafts, creditors, working capital etc. Human resources – Employees are heart of business organisation, they are responsible to
complete working activities which are concerned with strategic planning process.
Therefore, in order to gain maximum utilisation from human resources managers have to
provide training and development assistance to their workers. This could helps in
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improving their skills and competencies in an adequate manner. Apart from this, well
skilled and qualified employees are able to achieve strategic goals and objectives.
 Physical resources – It covers tools and techniques which are involved in strategic
execution. Physical resources are – location, investment, maintenance, quality, method
etc.
4.3 Contribution of SMART objectives
In Volkswagen, SMART targets are accessible in attaining its objectives in well being
mannered. These targets set some parameters which are liable in movement of a firm in certain
direction. It helps in minimising risks or uncertainties which will be faced by managers. Brief
description of SMART objectives is stated as below: - S (Specific) – Specific objectives or targets helps a company to achieve its vision and
mission in a certain time period. It forces managers to gain high profitability and market
share. Volkswagen specific objectives ensures to enhance their market growth by 10%
every year. M (Measurable) – It refers that objectives should be able to measure the market growth
and success of the company. With the help of measurable targets, managers can easily
monitor the effectiveness of market share in numerical terms (Sprengel and Busch, 2011).
In Volkswagen, such objectives are able to maximise its sales revenue and profit by 50%. A (Acceptable) – Aims and targets would be acceptable by each and every members who
is involved in strategic implementation. It means, objectives are capable to add value
within business operations and its working activities. R (Realistic) – All set aims and targets should be real and easy to achieve. Unrealistic
goals can reduce firm's image in target audiences.
 T (Time bound) – Goals and objectives should be achieved in a certain time period in
order to increase company's efficiency in an effective manner.
CONCLUSION
From the above refereed report, it has been concluded that, business organisations have to
make an effective strategies in order to achieve its mission, vision, goals and objectives.
Managers needs to consider some factors while making a strategic planning. For accomplishing
better results, business owners have to conduct organisational as well as environmental audit
through SWOT and PESTLE analysis, through which they can evaluate those factors which will
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impact upon organisational growth and performance. Apart from this, stakeholder analysis has an
essential role in strategic planning process to know the interest of stakeholder within firm. There
are different types of strategy which helps managers to enter into new market. In Volkswagen,
there are several people who are included in making business strategy, i.e. managers, employees
etc. They need to measure the effectiveness of SMART objectives so as to attain future targets.
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REFERENCES
Books and Journal
Alsudiri, T., Al-Karaghouli, W. and Eldabi, T., 2013. Alignment of large project management
process to business strategy: A review and conceptual framework. Journal of Enterprise
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Azar, O. H., 2011. Relative thinking in consumer choice between differentiated goods and
services and its implications for business strategy. Judgment and Decision Making. 6(2).
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growth opportunities and organisational strategy in SME’s as part of a design led
transformation journey. Design management toward a new Era of innovation.
Butler, D., 2012. Business development: a guide to small business strategy. Routledge.
Dandira, M., 2011. Involvement of implementers: missing element in strategy formulation.
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Elhamma, A. and Zhang, Y.I., 2013. The relationship between activity based costing, business
strategy and performance in Moroccan enterprises. Accounting and Management
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Galpin, T. and Lee Whittington, J., 2012. Sustainability leadership: From strategy to results.
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Goll, I. and Rasheed, A. A., 2011. The effects of 9/11/2001 on business strategy variability in the
US air carrier industry. Management Decision. 49(6). pp.948-961.
Granados, N. and Gupta, A., 2013. Transparency strategy: Competing with information in a
digital world. MIS quarterly.37(2).
Hall, J. and Wagner, M., 2012. Integrating sustainability into firms' processes: Performance
effects and the moderating role of business models and innovation. Business Strategy
and the Environment. 21(3). pp.183-196.
Helms, M. M. and Whitesell, M., 2013. Transitioning to the embedded librarian model and
improving the senior capstone business strategy course. The Journal of Academic
Librarianship. 39(5). pp.401-413.
Kalyani, M. and Sahoo, M. P., 2011. Human resource strategy: A tool of managing change for
organizational excellence. International Journal of Business and Management. 6(8).
p.280.
Moseley III, G. B., 2017. Managing Health Care Business Strategy. Jones & Bartlett Learning.
Rahbar, E. and Abdul Wahid, N., 2011. Investigation of green marketing tools' effect on
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Schaltegger, S. and Wagner, M., 2011. Sustainable entrepreneurship and sustainability
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Sprengel, D.C. and Busch, T., 2011. Stakeholder engagement and environmental strategy–the
case of climate change. Business Strategy and the Environment. 20(6). pp.351-364.
Stiakakis, E. and Georgiadis, C.K., 2011. Drivers of a tourism e-business strategy: the impact of
information and communication technologies. Operational Research. 11(2). pp.149-
169.
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Torrent-Sellens, J., 2015. Knowledge products and network externalities: implications for the
business strategy. Journal of the Knowledge Economy. 6(1) pp.138-156.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Online
PESTLE Analysis, 2014. [Online]. Available through: <https://ventell.co.nz/glossary/pestle-
analysis/>. [Accessed on 18th September 2017].
Stakeholder Analysis, 2014. [Online]. Available through: <https://refinem.com/eight-powerful-
project-management-processes-part-2-stakeholder-analysis/>. [Accessed on 18th
September 2017].
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