MFRD

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
LO : 1......................................................................................................................................1
1.1 Description about companies mission, Vision, core competencies goals and objectives 1
1.2 Identifying the factors that required special consideration when formulating strategic plan
................................................................................................................................................2
1.3 Determining the effectiveness of techniques used while formulating strategic business
plans........................................................................................................................................3
TASK 2 ...........................................................................................................................................4
LO : 2......................................................................................................................................4
2.1 strategic positioning of VK AG by organisational audit..................................................4
2.2 environment audit of VK AG...........................................................................................5
2.3 significance of the stakeholder for formulating new strategies. ......................................6
2.4 selection of new strategies for the company.....................................................................8
LO : 3......................................................................................................................................8
3.1 alternative strategies for market entry, substantive growth, limited growth of the company.
................................................................................................................................................8
3.2 justify the selection of the strategy...................................................................................9
LO : 4 .....................................................................................................................................9
4.1 roles and responsibilities of an individual at VK AG.......................................................9
4.2 requirement of the resources to make new strategies.....................................................10
4.3 Implementation of SMART objective for VK AG.........................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The management for evaluating, implementing, formulating the decisions to enable the
organisation to achieve the goals or the aims for long term is business strategy (Alsudiri, T., Al-
Karaghouli, W. and Eldabi, T., 2013). These strategies help to solve and manage the issues in the
corporate strategy. In the present this report, the two companies are taken a) James Halliburton's
Waterbuoy which has designed a key chain which acts as the device that helps to prevent the
valuables from sinking, b) Volkwagan Group (VWAG) which is an automotive manufacturing
company.
The present report will cover the mission, vision, objectives and core competencies of the
organisation. The effectiveness of techniques used to develop strategic planning for the investors.
Furthermore, Strategic planning for improvement of the business with help of the consultancy '
New Phoenix'. The strategic positioning and environment audit of VK AG will be discussed.
TASK 1
LO : 1
Covered in ppt.
1.1 Description about companies mission, Vision, core competencies goals and objectives
The company James Halliburton's Waterbuoy is selling luminous balloons. The
organisation is manufacturing large size of balloons that contains Led lights in them which cann
be switch on and can be spotted from up to mile away. The mission, vision of the company are as
follows-
Mission : The mission statement is short statement that describes the purpose, scope,
philosophies, activities of firm. The mission of the James Halloburtons Waterbuoy company is to
increase its sales of balloons by designing innovative balloons. The other mission of thee
organisation is to generate profitability and increase revenue.
Vision : Vision statement describes the desired position that company wants to achieve in the
future. The vision of the company is to become top seller of balloons.
Goals : Goals assists firm, in identifying the things that are to be achieved by enterprise.The
goals of Halloburtons firm is to produce innovative balloons to meet the demands and
expectation of customer.
Objectives : Objective of organisation refers to the outcome that thee enterprise would loke to
accomplish. The objective of the organisation is to gain customer loyalty by providing enhanced

quality of balloons (Bapat, D. and Mazumdar, D., 2015). The other objective of the Halloburtons
Waterbuoy is to increase its growth and market share.
Core competencies : Core competencies refers to the strength of the form that helps firm in
gaining competitive advantage over its competitors. The core competencies lie in the technology
used by organisation for producing innovative products. The core competencies of the enterprise
is that company is having skilled and talented employees. The core strength of the Halloburtons
Waterbuoy is that it is manufacturing such balloons that can be attached to mobile phones and
GPS devices.
1.2 Identifying the factors that required special consideration when formulating strategic plan
There are various factors that require special consideration whole formulating strategy.
These factors can be categorise into two internal and external factors.
Internal factors : The various internal factors include organisational culture, environment,
policies, code of conduct, ethics, human resource, leadership style, management etc. These
factors have direct effect on the strategic formulation process. For successful formulation of
strategy it is required by Halloburtons Waterbuoy to consider these factors (Cescon, Costantini
and Rossi, 2013). The financial strategy formulated by the Halloburtons Waterbuoy resulted into
financial crisis as these was being affected by these internal factors. The decision of various
stakeholder i.e internal and external stakeholder has great impact on strategy formulation process
of organisation. These internal factors are manageable and can be controlled by using efficient
planning process.
External factors : there are various external factors that have direct impact on strategy
formulation process of organisation. These elements are uncontrollable and unmanageable. The
various external factors are-
Political factors : The various political factors include code of conduct related to business,
political activities on the country, etc. these factors have direct impact on the strategy
formulation process, as these factors have direct impact on profitability of organisation.
Legal factors : The various legal factors such as increase in tax rate, exchange rate rates and
regulations have direct effect on enterprise activities as well as on plans. These legal elements
have impact on sustainability of organisation.

Economic factors : various economic factors include economic conditions of the country,
demand and supply of organisation products and services, income level of consumers etc. these
elements have direct effect on strategies planning process.
Social factors : Social factors include culture, religion, taste, trend, etc. of society in the country.
These factors have direct effect on the growth strategy of firm.
Technological factors : Advancement of technology has direct effect on the innovation strategy
of enterprise. Technology is that tool which has the capability to change whole organisational
structure, culture and even technology can assist Halloburtons Waterbuoy to become the biggest
corporation in the world.
1.3 Determining the effectiveness of techniques used while formulating strategic business plans
Swot analysis technique : SWOT analysis is used by Halloburtons Waterbuo organisation in
order to analyse their current business status. This techniques assist firm in identifying its
strength , weaknesses opportunities and threat.
Advantages of Swot analysis
Swot analysis techniques enables business unit to comprehend their strength and enhance their
brand image.
This technique provides opportunities to firm in order to identify its weakness.
It allows cooperation to overcomes its weaknesses and reduce threats. Business unit anticipate
their threats in new market then can prepare their new strategy in order to deal with other risks.
This technique provide opportunity to firm to seize opportunities (Chen, Eshleman, and Soileau,
2016.).
Disadvantages
The swot analysis does not provide effective solutions.
Much information is provided by swot analysis but only some part has information has value.
Swot analysis suggest business to have focus on strength but too much focus on strength may
lead lack of attention on weakness and threats.
BCG matrix : This techniques assist Halloburtons Waterbuo enterprise in determining their
business unit that is their product line. This technique consist of chart to rank the business unit on
the basis of their relative market share and growth rates. The bCg matrix consist of four
quadrants such as cash cows, stars, dogs and question marks
Advantages of BCG matrix

This technique is designed to help business in long term strategic planning.
 It assists business unit in analysing growth opportunities by reviewing its portfolio of
products to formulate investment strategy. The quadrant in BCG matrix enables organisation in evaluating the current position of
organisation and assist business entity in framing effective strategy.
 Disadvantage
This technique provides limited information which can not be proved effective in formulation of
strategy.
 This model is based on two dimensions – market growth and market share these could
not be sufficient for taking major investment decisions. This technique neglects small competitors that may have major influence competitive
strategy of organisation.
 Porters five force model
This model assist Halloburtons Waterbuo business unit in determining the type of
competition in their industry (Deans, P.C., 2015). This techniques help form in analysing the
power of buyer and suppliers, treat of new entrant, risk from substitute product etc.
Advantages
This model assist firm in framing effective strategy by providing various information related to
all elements in the industries. This technique help organisation in analysing influence of various factor on strategy
formulation process of organisation.
 Disadvantages
The data provided by this factor is based on only external factors it does not include the
influence of internal factors on strategy formulation process.
TASK 2
LO : 2
2.1 strategic positioning of VK AG by organisational audit.
Strengths Weaknesses
 The organisation has wider range of
cars which provides enough options to
choose.
 The company has intense competition
from the global car manufacturing
companies.

 Vk ag has a higher brand presence and
recall.
 It is the one the oldest car manufacturer
which is still resulting in the increasing
masses.
 The company has over 3500,000
employees globally .
 VK AG has limited market share
growth.
 The Controversy and fraud about the
emissions of the cars caused global
brand image loss.
Opportunities Threats
 VK AG can also enter different markets
by offering cars with the attractive
features to target the people.
 Increasing purchasing power of the
people (Shepherd and Toms, 2017).
 Implementationimplementation of
continuous innovation in cars to stand
competition can boost VK AG.
 Thethe company should emphasis on
building the long term relationship with
non German car manufacturers.
 Government rules and regulations to
protect interest of local car
manufacturers
 Increase in fuel costs can reduce
purchasing of cars.
 Innovative features included by
competitors can affect market share of
the company
2.2 environment audit of VK AG
The term reflects the various types of evaluations intended to identify the environmental
compliance and management system implementation gaps along with the correct actions. This is
management tool that comprises management of the performance with the aim to achieve the
goals and to safeguard the environment by adopting control on the practices and polices. The
company here is using PESTLE analysis for the environment audit : Political factors : The the automotive company such as VK AG manufactures in the
developing countries but are under pressure of the government, to make their
automotiveauto motives more affordable for the common man. Thus, VW AG need to
pay attention on the growth, performance and results of the company.

 Economic factors : The the automotive industry is highly affected by the economic
conditions. The currency exchange rate creates an adverse impact on the operations of the
organisation 'VW AG', their focus is to target the new customer from different countries
to attract new customers, the company is facing many problems such as currency
exchange rate and pay more interest. Environment factors : Thethe automotive industry is considered to be the most
destructive sectors as it plays the major role in causing to damage to the environment. To
make the results effective and positive with the quality performance, the organisation
needs to follow its responsibilities towards the environment. The company needs to
measure and apply the effective method to increase the output and the performance level
of the employees. Social factors : The industry has revolutionised the whole society, as they were initially
providing the services of the products for the upper class (García‐Rodríguez and et.al.,
2013). This factors create an adverse impact on the organisation because of the frequent
change in the customer requirements with the changing trends and preferences. The cited
organisation, needs to emphasis on the customer demand to retain them and to provide
satisfactory outcome. Legal factors : Lawlaw is another factors that plays major role or affects the profitability
and performance of the vehicle brands. Government makes some rules and regulations
which are to be followed by the employees and the customers for their protection. This
will help in easy and fast promotion of the company VW AG at workplace. It creates
positive impact on the business and its performances.
 Technological factors : Technologytechnology and innovation plays an important role in
market share of the automotive industry. This factor creates most positive impact on the
business operations as it helps in developing the market profitability inside the
organisation and also helps in making the healthy environment for easy and fast working
(Osterwalder and Pigneur, 2013). VW AG uses advance technology to attracts the
customer which will be beneficial for the company to generate revenue in shorter time
span.

2.3 significance of the stakeholder for formulating new strategies.
The stakeholders are the person that makes the group of people inside the company.
Stakeholders are make with pertain group of various people within the organisation. The
different employees participate in the different activities of the organisation for the effective
results. The people in an organisation who take pratpart in such activities are customers,
employees, government and the suppliers who are very important for the company VK AG. for
the enhancement of the company. These helps to enhance the productivity inside the
organisation. The significance of stakeholder to analysis the situation of the business
environment. It will help to make the new strategies to increase the growth of the revenue and
the performance.
 Innovative Ideas and opinion from various employees and other people who give the
support to the business to fulfil the goals and objectives of the firm.
 The government support to increase the productivity and outcomes within the business
environment (Neugebauer and Hahn, 2016).
 The clear communication helps to understand the productivity and profitability of the
business which also give the opportunities to increase the business.
 All stakeholders create platform to make the positive outcomes from the different
activities which will help in making high profits inside the organisation VW AG.
Following steps can be taken within the chosen firm to measure the performance inside the firm :
 Analysis of the organisation performance :
The analysis business performances of VW AG determines different activities and
action that give a positive impact on functions and operations.
 Identify power :
The organisation 'VW AG' also determines power and interest which is influenced by different
activities. With the help of different stakeholders chosen business can give the positive results
and performances in effective way (Granados, N. and Gupta, A., 2013.). Following elements at
organisation :
 The analysis of strength and weakness to lessen the competitive advantages.
 Low interests rates need to be taken at organisation which will help to cover more
investment for generate profits and revenue.

 Low power can reduce monitoring which is required to take minimum efforts by the
chosen business.
 Analysis understanding of stakeholders and organisation :
The taken organisation ' VW AG' makes new strategy to create the values and to focus
on various outcomes and profitability at the work place . There are different activities which
helps to make new products and services inside the business. The company should take feedback
with their customers to improve the quality of the existing products with the new
manufacturings. It will also help in increasing the profitability, productivity and the revenues of
the company as well as it will help to increase the company to grow in all countries.
2.4 selection of new strategies for the company
The organisation 'VW AG' has selected the new strategy which helps to give out the
effective and efficient results and the performance of the employees inside the workplace. It
helps in attracting the customers inside or towards the organisation which in turn will help to
increase the business. There are various stakeholders such as customers, employees and the
investors. The organisation can fulfil their goals and objectives, can also concentrate on
providing customer satisfaction for the retention of the buyers. It will continuously help to
increase the profitability of the firm.
LO : 3
3.1 alternative strategies for market entry, substantive growth, limited growth of the company.
Market entry strategy
The organisation VK AG can easily enter into the new country to face the competition.
The company can conduct the development programs to explain the measures to be taken to
develop the business environment for working. It will also help the company to make the
operational plans for the new areas and more profitability. Merger: this is the process taken or chosen by an organisation to merge their company
with another to give more profitability to the business. It helps in expansion of business
and the resources. Strategic alliance: two or more business is working jointly along with their liabilities and
assets to grow their business for the better results at the workplace (Hair and Sarstedt,
2014).

 Acquisition: the strategy which helps to acquire a business by another business, it helps to
increase the profitability of the business.
Substantive growth
This is the best and most easy strategy which helps to grow the business and its
operations to develop the results for better performance at the workplace. Related diversification: in this the company make its diversification within the business
environment. It also improves the quality of the existing products with the improved
operational functions to increase the goals and objectives. Horizontal growth: the organisation has the opportunities to grow in different areas to
ascertain the growth and the profitability of the firm. Vertical growth: the organisation has taken the same areas for its diversification with new
operational strategies at the workplace. It will help to grow the firm with performance
appraisal and revenue generation.
 Unrelated diversification: to make diversification the company VK AG can increase in
different areas which are not known are referred as unrelated diversification.
3.2 justify the selection of the strategy.
The goals of the company is to enhance the profits of the business for the betterment of
performance. This will help the organisation 'VW AG' to maintain their profitability and the
outcomes in easy way at the workplace. It helps to grow the operational skills and the outcomes
for assessment of the business and its resources. It will help in targeting the different segments of
the customers to increase the profitability of the business which will give the positive results of
the chosen firm (Hinkelmann and Pasquini, 2014). The organisation will easily develop their
market to maintain its profitability to balance the results and performances. They can expand
their business in new streams and in all over world which will be helpful to know the business
environment in systematic manner. The different activities applied inside the company which
develop results and improves the performances to analyse the business environment.
LO : 4
4.1 roles and responsibilities of an individual at VK AG
Management of the staff and business : The employees as well as the business partners
both are dependent on each other and plays important roles at different level of responsibilities In
their various role the employees have the responsibility to manage those processes that are

assigned to complete (Motohashi, K., 2015). For instance : The employees who are working in
the financial department are responsible for managing the financial accounts of the company 'VK
AG'. Development of the business : The employees and the organisation plays major role in
development of the business. This means they both have equal responsibilities to grow
the business. The main objective of both the employee and the organisation is to earn
and increase the profit and to analyse their greatest assets to make profitability. Relationship between employees and the workplace : VK AG and the employees both
are partners to work in team to generate maximum revenue in the business. As they both
have the equal responsibilities and roles which contributes to successful team.
 Technical understanding : the employees and the organisation must be able to perform
there work with efficiency and effectiveness. This shows the importance of an individual
in the organisation to increase its business and profitability on a continuous basis.
4.2 requirement of the resources to make new strategies Human resources : The people who make the work force for an organisation for the
effective working. The organisation needs to recruit the staff to make them perform
various activities which are related to profit maximization (Johansson and Kask, 2017).
The strategy is helpful for the chosen organisation because this helps in keeping the
records and management of the products. Financial resources: it deals with the study of investments which includes the dynamics
of assets and liabilities. These resources are needed in the organisation for developing the
operational skills and to make the performance of the employees better. The resource also
shows the economic condition of the company is stable or fluctuating. As results, VW
AG can attract more customers at workplace easily. Time resources : VW AG needs to manage the time for the better performance and the
results. This will help the organisation to earns the profit in shorter duration and will
create a strong brand image.
 Raw material resources : The company also needs to concentrate on the raw materials
which is required to manufacture the final or the finished products for the end users.

4.3 Implementation of SMART objective for VK AG
Sources : (SMART objectives, 2017)
This is used to define the specific marketing objectives which supports the goal of an
organisation for a longer term. The main reason that these objectives are called SMART is
because it helps in keeping the market at success by using more specific or structured approach
of planning to give more realistic targets which will make them more comfortable to achieve the
targets. Specific : The objective achievement of the company VK AG, the company will increase
its revenue contribution by 10% within three years. Measurable : the cost of the cars have a measurable change in it (Ladib and Lakhal,
2015). The company has increased its cost by 5 lakhs to 7 lakhs from 2013 to 2017. Actionable : under this the company makes the appropriate strategies for the effectiveness
in the performance of the employees and the to generate the revenue Relevant : the company measures the real or relevant methods to be applied for the
positioning in the market.
 Time bound : the company needs to concentrate in achieving the goals and objective
within the set time or give period.
Illustration 1: SMART objectives

CONCLUSION
From the above report it can be summarized that the company James Halliburton's
Waterbuoy has made the right business strategy to invest in Den Dragon which was very helpful
in increasing the operational functions and the performance at the organisation. Secondly, The
company VK AG needs to emphasis on the value and the performance of their employees. It also
needs to measure the strength and weakness to achieve the goals which will help to grow the
business in new areas or country. The organisation can manage to maintain their market share by
providing numerous performance results of the workplace. The SMART objectives are discussed
which helps in measuring the performance of the employees as well as of the company in the
market in a systematic manner.

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