Business Strategy and Its Impact

This assignment delves into the multifaceted realm of business strategy. It examines the fundamental components of strategy formulation, the influence of various factors on strategic decision-making, and the diverse range of strategic frameworks employed by businesses to achieve sustainable competitive advantage. The analysis encompasses stakeholder interests, the role of environmental considerations in shaping strategies, and the dynamic nature of the business landscape.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1,1.2 and 1.3.............................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategical positioning of Volkswagen by carrying out an audit..........................................1
2.2 Explain Environmental audit for Volkswagen......................................................................2
2.3 Importance of stakeholder analysis.......................................................................................3
2.4 Present New strategies for Volkswagen................................................................................5
TASK 3............................................................................................................................................6
3.1 Alternative schemes associate to market entry and substantial growth................................6
3.2 Justification of the selecting strategy....................................................................................8
TASK 4............................................................................................................................................1
4.1 Roles and responsibilities of personnel.................................................................................1
4.2 Estimated resource requirement for implementing a new strategy.......................................1
4.3 Contribution of SMART target to the achievement of strategy implementation..................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business strategy refers to that term which main aim and objective is to achieved
corporate goals and motives in effective manner. This is also known as long term planning of
business process. This help in providing direction to an organisation which survive in market in
long time period. The important objective of the firm is to increasing the performance in the
large competitors in better manner. This is difficult for an enterprise is to compete with their
competitors in the competitive advantage. Business strategy is very essential for an organisation
is to achieved desired goals and objectives (Astrachan, 2010). The success or growth of the
company is not fixed and if they make strategy then they will reach with the end point. There are
two factors which directly impact on business operations such as macro and micro. The business
strategies is required for developing and making top position in the large market area and also
help in gaining profitability and development among competitors. The report is based on
Volkswagen company which is broadcasting firm and situated in UK. In this project report
vision, mission, objectives, goals and core competencies of organisation are performed planning
and development functions at the specific time period. Also discussed about impact of internals
and external factors in the business operations.
TASK 1
1.1,1.2 and 1.3
Covered in PPT
TASK 2
2.1 Strategical positioning of Volkswagen by carrying out an audit
Volkswagen organisation audit can used the SWOT analysis for increasing growth and
success. It will help in evaluating strength and weaknesses of firm in proper manner. In external
factors, threats and opportunities can analysed by using this factors. SWOT analysis of the
company are as follows: Strength- It is very famous and organised company whose products are popular among
customers (Auzair, 2011). They are manufacturing latest and advanced technology such
as cars, bus, trucks and many other auto-mobile products. There are some limitless
products and services offer to the customers in large market place and it is the main
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responsibility of the business is to make effective strategies for maintaining brands
success and growth. Various people are purchase their cars which has innovative features
and it build their position in the Germany market. There are approx 70 production and
manufacturing plants where they develop their creative and modified commodities and
almost cover 150 nation of all over the world. Volkswagen has strong branded products
in Europe and USA. They firstly sell their product which is hybrid cars and motorbikes to
the customers (Burlton, 2010). It is the one of the top position gaining company which
contribute income in the country growth of economy. Weakness- They also create some scandal which affect on image of brand to the
organisation. They are make wrong pollution measurement software which is calculate
the level of pollution of the customers vehicles. There are approx 5 million cars bidding
are cancelled. The level of competition is increasing day by day which reduces the selling
of products in great manner. Opportunities- Recently purchasing power are increasing in effectively of the customers.
There are various policies and schemes are introduced that includes EMI, finance, loans
providers etc. they can expand their business and areas of working in all over the world.
An organisation can also achieved long term goals and objectives in proper manner.
 Threats- Volkswagen first most threat is the emergence of trouble (Campbell, Edgar and
Stonehouse, 2011). This will directly affect on customers trust and their sale of auto
mobile are reduces day by day. They are not very sure about their cars and this is not
their first choice in any manner.
2.2 Explain Environmental audit for Volkswagen
The environmental audit are carry out by PESTLE analysis which help in performing
various functions and activities in effective manner. These are as follows: Political factor- Government made norms and rules are affects the association
performance and its process. This will affect the company in positive or negative manner.
There is an increase in the demand of hybrid cars so that they can start production level in
fast way. The authority will assist in making low level pollution control system and give
permission for developing the technique. UK government present different financial
measurement tools which required for performing functions and tasks which is in favour
of developing cars for minimise carbon dioxide controller (Casadesus-Masanell and
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Ricart, 2010). The rate of carbon is higher than company tax payer price in proper
manner. Economical factor- Revenue is totally based on demand and requirements of cars. When
customers will purchase more so automatically income will be high in effective manner.
The income of auto mobile products are increasing day by day at the time of detonation.
There are various factors which affect on pricing strategy of external factors which is
fully depend on fuel rate. The fluctuation in the price of petrol are not reduce according
to the demand of new cars or auto mobile products in any manner. Social factors- The social factors refers to that which directly affects on working of
Volkswagen such as living style, population and many other. If any trends will change in
the large market place then this is important for an organisation is to adopt these
modifications in the work place. Technological factors- It is important for the company is to adopt latest techniques and
methods for increasing growth and success in effective manner (Chang and Chuang,
2011). They produce cars according to the demand of the customers and also create
innovative features in the enterprise. Environmental factors- The environmental factors are directly affects on the atmosphere
and air which get badly impact on the company. This can enhancing the level of pollution
in proper manner.
 Legal factors- Government will made policies and plans that can affect on business
structures and it create legal issues and problems within an organisation.
2.3 Importance of stakeholder analysis
Stakeholders is a person who manage and control all work that will involved with
corporation. They also affect the organisation performance and its functions in effective manner.
It includes customers, employees, suppliers, government creditors etc. This should important to
analyse the stakeholders which is used to identified the people interest in various business
functions and activities properly (Cinquini and Tenucci, 2010). The Mendelow's matrix is used
for this motives. Aim of this matrix are as follows:
 The nature of stakeholders is adopt the strategy which help in gaining success and
growth.
 Various schemes are used for adopting strategies which is easy in working
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There are four quadrants which implement the strategies: Box A- Minimum effort- Those type of Stakeholder have no strength which directly
impacted the strength factor. They are mainly analyse and follow the guidelines of
another persons. Box B- Keep informed- They are those person who have different type of personality
which are most fascinated about strategies but still they does not change any policy or
plans of the organisation (Dong-Hun, 2010). It is required for the management is to
convince different strategies which must be justified in effective manner. Box C- Keep satisfied- The main purpose of company manager is to satisfy their
customers as per the involvement of increasing towards various other regions. This will
help in doing planning in advance properly.
 Box D- Participation- They are those who are main drivers and they will easily change
strategies. They have capability and ability to modify the products according to the
demand of customers. Management required to transfer all plans and policies which
relates to the recent issues and problems in better manner.
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2.4 Present New strategies for Volkswagen
Marketing strategy of Volkswagen is used by Ansoff's matrix in proper manner. There
are four alternatives of different marketing strategies that will totally depend upon the products
quality or existence. These are as follows: Market penetration- In this stage, firm required to enhance the market share in the
current market situation (Eccles and Krzus, 2010). This can help in gaining attention of
large number of buyers towards enterprise products and services and try to satisfy all
needs and demands in effective manner. Product development- It states that new product development and its services in the
current market place. Product improvement defines the thinking of various goods which
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Illustration 1: Interest of Stakeholders, 2017
(Source: Interest of Stakeholders, 2017)

can satisfy all customers demand and needs in proper manner. They also deal with
competitors in the large market area. Market development- It will states that company try to expand their business operations
and its functions and also search the new market place where they can position their
products in proper manner (Hahn, Kolk and Winn, 2010). They attracting customers for
producing innovative goods and serve among desired buyers.
 Diversification- This method will help in introducing new product and services in the
new place at the same time. It is risky to creates changes within an organisation in their
products, infrastructure, policies, plans and schemes which directly affect on company
growth and employees performance.
Therefore, Volkswagen required to adopt various strategies which provides values to
satisfy their customers and also fulfil need and demand of buyers in appropriate manner. They
can implement new planning process which is develop new product development. It is that
policies and schemes which can changes the employees performance by providing new goods
and services to their customers and duty to satisfy them (Elements Of Business Plan. 2017).
These schemes will assist the company for earning maximum profit by expanding the business
operations in other locations.
TASK 3
3.1 Alternative schemes associate to market entry and substantial growth
Effective alternative strategy relates to market entry, market growth, retrenchment and
substantial growth that are described as under: Market entry strategy- New start up business try to enter in new market area which are
important for them (Haley, Haley and Tan, 2011).
◦ Organic growth- An organisation should organise improvement program in the firm
which is start from beginning it is called organic growth.
◦ Acquisition- This is that situation where one company acquire another enterprise all
assets and other buildings.
◦ Merger- It is that process in which two company merge and became one organisation
and also combines all assets and liabilities in proper manner.
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◦ Licensing- When an enterprise start a business so they should registered their
business in the registration office and get license for doing work in specific location.
◦ Franchising- It is that term in which company has many other branches of business
in the large market place. Sustainable growth- this is that process which help in making and developing effective
growth and success of corporation in better manner (Higgins, Omer and Phillips, 2015).
These are as under:
◦ Related change- An organisation can create and make diversification and which is
clearly shows the product line so that it is known as related diversification.
◦ Unrelated condition- If an enterprise can not diversification their present and current
time then it is called as unrelated diversification.
◦ Horizontal combination- There are various firm which included in the business at the
same stage of production in proper manner. Limited growth- In this, an organisation has limited level of growth which directly affect
the firm. These are as under:
◦ Market penetration- It states that present market are increasing share of market
which help in making new products and services in effectively way. There are various
strategies which can be used such as discounts, advertisements etc.
◦ Product improvement- it is necessary for the company is to increasing in the quality
of their products and services (Hsieh and Chen, 2011).
◦ Market alteration- It is dynamic so firm will position their goods at that place where
more customers attracted towards it. Retrenchment- In this stage there are certain elements which are as follows:
◦ Turnaround- It is that plan which help in converting low profitable company into
gaining more income by improving their performance.
◦ Liquidation- This is effective strategies which help in performing last phase of the
life cycle. It is used for making plans and policies of business which is important for
company growth.
◦ Divestment- In this, marketing strategy of business to the other association.
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3.2 Justification of the selecting strategy
Ansoff's matrix is used when new strategy is selected in appropriate manner. There are
four marketing plans which is suitable for the marketing plans for the company (Business
Strategy. 2017). Some justification are as follows: Market penetration- An organisation can increasing their market share within current
market area (Liedtka, 2010). It is important for sale new products to their customers. Product development- This is essential for company is to provide desired goods and
services to their buyers in the existing market location. They should analyse the demand
and wants of customers and according to their demand they are develop the effective
products among buyers. Firm will also against with their competitors in the large market
place and make unique and differ goods in proper manner. Market development- It is important for firm is to choose that place where mainly
customers are come for purchasing different types of products and services in better
manner. They try to establish their business in the new market place and attracting more
buyers (Martinand Rice, 2010). Company should also identify and search those
customers who willing to buy unique and innovative goods to the firm.
 Diversification- This is necessary for the company is to make changes in their business
structure, plans, policies and schemes which assist in gaining growth and success in an
effective manner. They also develop their plans and policies according to the demand and
need of employees which assist in maintaining development and growth. Diversify are
help in providing gaining attention of customers towards firm products and services in
proper manner.
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TASK 4
4.1 Roles and responsibilities of personnel
An organization include various people who have their roles and responsibilities to
achieve their target in effective manner (Pretorius and Maritz, 2011). With the help of this they
operate their operation activities and also effectively implement their new strategy to maintain
the better performance of its workforce and achieve their organizational goals and objectives.
There4 are some important people who play important role in implementing new strategy: Senior management: Thy are the important person for the company to implement the
new strategy in which board of director make some effective changes in their existing
plan in order to increase overall profitability and productivity level. Manager: They are also play important role because manager are responsible for
communicate all the rules and regulations with their employees so that they ware about it
and make better changes to implement the new strategies in effective manner.
 Engineers: In this they also are important because they also make changes in their
transportation and also improve their technologies in effective manner (Notta and
Vlachvei, 2013).
4.2 Estimated resource requirement for implementing a new strategy
VW AG is known for its various and latest car models. They introduce new and attractive
models to their customers and the main reason behind this is its enough resources such as
employees, raw materials financials support and many more which helps in implanting the new
strategies in the organization for their better development. Financial support: It is more important for the company to formulate their business
activities in appropriate manner. Because without finance organization can not able to
buy effective raw materials and machine. So that it also play important role at the time of
implementing the new strategy within the organization. Human resource: It is also important because skilled and experienced employees
effectively produce and manage better quality of the products and services. At the time
of implementing new strategy human resource easily manage all the activities in order to
gain better success (Nordqvist, M. and Melin, L., 2010).

 Project team: Both financial and human support VW AG define their employees in
various functional areas in which they manager and operate their task in effective way
and also implement best strategy to achieve better goals and objectives in most effective
manner.
Hence, all are the important requirement of the company while implementing the
new strategies. Without this VW AG can not able to achieve their target. So that it helps
in achieving positive results in appropriate manner.
4.3 Contribution of SMART target to the achievement of strategy implementation
Every organization wants to set their SMART target in which they develop their overall
performance to achieve all the target in most effective manner. They define specific,measurable,
realistic and achievable in specific time (Montgomery, 2011). For this contribution of SMART
target of VW AG are as follows:
 Specific: VW AG set their specific target to improve their performance at the market
place. All these target should be communicate with the manager of the company so that
they easily achieve. For example they wants to increase their overall sale by 10% within a
year.
 Measurable: It is also important for the organization that all the targets and goals should
be measurable so that they easily evaluate their actual performance in appropriate
manner.
 Achievable: It is also important that all the goals and objectives are achievable for the
organization. In which they divided their employees in sub groups in which they easily
achieve their target and make better performance.
 Realistic: It is also important for the VW AG to enhance their growth by generating large
number of sale volume. They have enough finance and human resource to completing
their task in order to get positive results.
 Time bound: It is also important for the company to set their target in time limit which
helps in achieving all the goals and objectives fix time period. For example they wants to
expand their business operations within one year (Meskendahl, 2010).
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CONCLUSION
From the above mentioned report, it can be concluded that business strategy is more
important for the company to achieve its target in appropriate manner. It helps in establishing
business operation in systematic manner. For better improvement some methods used by the
company such as Ansoff's matrix, alternative strategies which include market penetration,
product development, market development and diversification which helps in improving the
organization profitability in appropriate manner. In this environmental analysis is also define
their impact on the business so that it is more important for the company to effectively analysis
their affect so that they maintain better work environment for their employees. SWOT analysis is
also important for the company to evaluating their strength, weakness, opportunities and threats
in the market place in which they effectively develop their strategies to improve their
productivity. Along with this, stakeholder also play significant role for analysing their impact in
positive manner which help in developing the overall performance of the company at market
place.
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Online
Business Strategy. 2017. [Online]. Available Through:
<https://www.entrepreneur.com/article/38308>.
Elements Of Business Plan. 20117. [Online]. Available Through: <https://www.business-case-
analysis.com/business-strategy.html>.
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