Strategic Planning- Assignment

Table of Contents
Task 1........................................................................................................................... 3
1.0 Introduction............................................................................................................... 3
1.1 Assessment of the link among strategic planning and business missions, visions, objectives, goals
and core competencies................................................................................................... 4
1.2 Factors considered while implementing strategic plan........................................................5
1.3 Effectiveness of techniques incorporated while developing strategic plan................................6
Task 2........................................................................................................................... 8
2.1 Analysis of the strategic positioning of Volkswagen AG by carrying out an organizational audit...8
2.2 Environment audit for VW AG.................................................................................. 11
2.3 Assess the significance of stakeholder analysis when formulating new strategy for VW AG.......13
2.4 Presenting new strategy for VW AG........................................................................... 15
3.0 Understand the approaches to strategy evaluation..............................................................16
3.1 Analyse the appropriateness of alternative strategies relating to market entry, substantive growth,
limited growth or retrenchment for VW AG.......................................................................16
3.2 Justification of the selection of a strategy......................................................................17
4.0 Understanding the implementation of a chosen strategy.......................................................18
4.1 Job responsibilities of VW personnel who is charged with strategy implementation.................18
4.2 Analysis of the estimated resource requirements to implement new strategy...........................19
4.3 Evaluation of SMART targets to strategy implementation.................................................20
Conclusion................................................................................................................... 21
Bibliography................................................................................................................ 22
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Task 1
1.0 Introduction
Strategic planning signifies the managerial processes and the activities of any enterprise that is
incorporated to prioritize the business operations, concentrate on business resources, strengthen
the business activities, taking care of the aspect that the aims and the objectives set by the
company is in alignment with the different stakeholdersincluding the employees, adapting the
enterprise’s behaviour with that to the changing environment. Strategic planning refers to the
calculative steps initiated to sketch the business decisions thus rendering shape to the company,
determining the company’s services, performance while concentrating on certain future
objectives. It is evident that any business enterprise requires an effective business plan framed
with the help of strategic planning. In this following task, the significance of strategic planning
thus highlighting certain points will be addressed, the points being; business missions, visions,
objectives and core competencies influence strategic planning, factors considered while
formulating strategic plan, techniques incorporated while developing plans (Poister, 2010).
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1.1 Assessment of the link among strategic planning and business missions, visions,
objectives, goals and core competencies
Strategic planning often initiates change that seems hard to incorporate in many instances. Thus
it is observed in most of the cases, that the mission and the vision statements of the companies
reflect the sort of change which is desired by the company. Therefore, the vision as well as the
mission statement of the company articulates the mechanics of strategic planning. Nonetheless,
this sort of articulation as well as repetition of the positive mechanics thus initiating change
within the enterprise influence the employees stay involved, concentrated and motivated
pertaining to the entire system opined Goetsch& Davis, (2014). The mission and the vision of the
company must always align with that to the strategic planning process thus resonating the present
situation and the positive drive incorporated by the company. The goals as well as the objectives
are considered to be significant as they help in transforming the vision as well as the mission of
the company to specific calculated targets. Goals and objectives are the “outcome statements”
that actually implements strategic planning while deriving the outcomes. Corecompetencies on
the other hand signifyspecific skills and unique competencies that add to the internal processes of
the company thereby helping it earn its competitive advantage in the respective market. Hence, it
is essential that the strategicplanning remains informed and aligned with the core competencies
of the company (Johnson et al., 2008).
In this case, the mission statement of Volkswagen states that, they will offer attractive and safe
vehicles to their customers, which will have market leadership features and will create new
standard in the market. Thus, from their mission statement it can be concluded that, the daily
operational activities are being clearly and precisely being communicated. This is due to the
reason that, it is being stated in their mission statement that they will offer safe and attractive
vehicles for their customers. Thus, their core activities of providing top quality vehicles to the
customers is being effectively communicated through the mission statement.
On the other hand, the vision statement of Volkswagen states that, they want to be the global
market and business leader in providing safe and sound vehicles to the customers. Thus, they
want to gain the market leadership status in the global automobile scenario. Moreover, it is also
being stated in their vision statement that, they want to be the most sustainable and profitable
automobile organization in the world. Thus, from the above discussion of the vision statement of
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Volkswagen, it can be concluded that, the vision statement of them is stating their future goals
and objectives effectively. Moreover, the vision statement of them is effective due to the fact that
it is being stated in the vision statement that, they want to be a sustainable organization in the
automobile market. Thus, with the current scenario of having issues with the environment, it is
important for the automobile manufacturers to have the sustainable approach in producing new
vehicles. This will help them to gain competitive advantages in the future. Thus, both the mission
and vision statement of Volkswagen are being effective in communicating the business policies
of them.
One of the key goals of Volkswagen is to initiate the use of innovations and technologies in
meeting the customer requirements and expectations. This is due to the reason that, in the current
business scenario, customer satisfaction is one of the key measures that should be maintained by
the business organizations in order to gain competitive advantages in the market. Thus, using of
the innovative ideas and newer technologies in providing the customer service will help them in
enhancing the customer satisfaction level and loyalty.
Another goal of Volkswagen is to increase their sale turnover in the global market. This is due to
the reason that, currently they are trailing behind Toyota in the global market. Thus they are the
second largest car manufacturer in the world. Thus, they have targeted to sell more than 10
million cars in a year. This will help to enhance their market share in the global market along
with overtaking Toyota in having the market leadership status in terms of sale volume.
Another goal that they have initiated for their internal management is to be the most attractive
employer in the world. This will also have positive implications on the business performance of
them. According to the strategy of Volkswagen, they aim to have the best employees in their
organization with having the best in the business facilities for the employees in terms of the
providence of training and other facilities. Thus, this will help them in attracting and retaining
the best quality employees in the organization. This will in turn help them to gain more
competitive advantages in the market.
The core competencies of Volkswagen include the age long experience in automobile
manufacturing along with having the worldwide goodwill and reputation for their products.
Thus, it is helping them in initiating the new technologies in the automobile manufacturing and
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to stay ahead in the competition. Moreover, the global goodwill and reputation being gained by
them across the world is helping them to further penetrate in the new market along with
attracting the new customers around the world. Another core competency being possessed by
them is the worldwide market presence. Due to this advantage of them, it is easy for them to
introduce new products in the market along with having the effective distribution system for
them.
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1.2 Factors considered while implementing strategic plan
The factors considered while implementing the strategic plan are the industry, competition as
well as the strength and weakness. During the process of strategic planning, determination of the
industry appears to be mandatoryincluding the aspects such as the “market size, potential growth,
new market entrants, future threats and others”. Secondly, evaluation of the market position of its
competitors requires to be performed. Thirdly, the company must assess its own strengths,
weaknesses, opportunities and threats in the market byconducting a SWOT analysis. These steps
aid in formulating an effectivestrategic planning in businesses (Cassidy, 2016).
Strengths
One of the key strengths of Volkswagen includes the huge and diversified product portfolio. The
product portfolio of Volkswagen ranges from pickup trucks and luxury sedans along with having
the luxury brands and sports car brands. Thus, due to having the diversified product portfolio by
them, Volkswagen can offer different products for different requirement of the customers from
different regions. Thus, the business risk associated is lees in the case of them. Another key
strength of them is the goodwill and reputation being gained by them. Various other
organizations in this sector cannot compete with them due to the reason of the goodwill gained
by them. It helps them in effectively attracting the new customers.
Weakness
The key weakness of them is the scandal, which is also known as diesel gate being faced
by them. It caused huge loss in terms of goodwill and reputation in the market. Moreover,
another weakness is less market share and innovation in the electric vehicle market.
Opportunities
Entering in the electric market will have huge opportunities for them due to the increase
in the customer preferences in this sector. Moreover, the demand for various utility vehicles are
showing positive trend in the market.
Threat
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