Business Strategies for Company Growth

The assignment discusses the importance of setting clear business objectives, such as increasing market share, improving operational functions, and enhancing employee performance. It also explores the concept of SMART objectives, which are specific, measurable, achievable, relevant, and time-bound targets for business success. The analysis includes case studies from James Halliburton's waterbuoy and Volkswagen Group, highlighting the need to measure strengths and weaknesses to achieve desired outcomes.

UNIT 7 BUSINESS
STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Covered in presentation..........................................................................................................1
TASK 2 ...........................................................................................................................................1
LO2..................................................................................................................................................1
2.1 strategic positioning of Volkswagen by audit..................................................................1
2.2 environment audit for Volkswagen AG...........................................................................2
2.3 importance of stakeholders formulating new strategy......................................................3
2.4 new strategy for Volkswagen AG....................................................................................5
LO3..................................................................................................................................................5
3.1 alternative strategies relating to market entry, substantive growth, limited growth or
retrenchment...........................................................................................................................5
3.2 justification for choosing the strategies for Volkswagen AG..........................................6
LO4..................................................................................................................................................7
4.1 role and responsibilities of personnel at Volkswagen AG...............................................7
4.2 requirement of the resources for the implementation of the new strategy.......................7
4.3 SMART objectives to achieve the targets in Volkswagen AG........................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The plan of action for the long term to achieve the particular goal through perform
several activities that are played in business strategy (Yousif and Hassan, 2013). In this context,
game plan also developed that make successful results in the business. It helps to know about the
activities that are conducted to accomplish desired results in the organisation. This report covers
two accompanies a) James Halliburton’s waterbuoy which is the part of Dragon den, which has
invented a device which is shaped as a key chain and was designed to prevent valuables from
skinning, b) Volkswagen group (VOLKSWAGEN AG) which is a multinational automotive
manufacturing company. It designs, manufactures and distributes commercial and private
vehicles such as motorcycle engines, turbo machinery, etc.
In the present report the mission, vision goals, objective and the core competencies will
be discussed. The important factors needed to formulate the strategic plan, development of
business plan, the strategic positioning of VOLKSWAGEN AG through audit and importance of
the stakeholder in audit will be explained in detail.
TASK 1
Covered in presentation
TASK 2
LO2
2.1 Strategic positioning of VOLKSWAGEN by audit
SWOT analysis is carried out to analyse the strengths, weaknesses, opportunities and
threats of company, product, place, industry or person to specify the objectives of the business.
The organisation VOLKSWAGEN (AG) has chosen SWOT analysis for better understanding of
strategies positioning:
Strength Weakness
 The organisation has effective brand
image through operate functions and
operations in more than 100 nations.
 A brand also developed with
diversified activities that are enhances
 The negative publicity for making the
brand image weak.
 The brand has weak positioning only
with 5 % market share.
 The products of the company are not
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in more than 13 brands.
 It is the oldest car manufacturers and
still has the strong rapid growth in the
market.
 The company has over 350000 workers
globally working in the organisation.
 The company has been rewarded for its
best quality services and the cars.
environmental friendly.
 There is intense competition globally as
a car manufacturer which means the
VOLKSWAGEN (AG) has limited
market share growth (Maley, 2011).
 The organisation has controversy of
fraud about emissions of car.
Opportunities Threats
 The company can make a long-term
relationship with non-German car
manufacturers.
 The increase in purchasing power of
the customers can be a big advantage
for the organisation VOLKSWAGEN
(AG).
 The company can manufacture cars that
produces less CO2 and become
environment friendly.
 The price of fuel also increases
continuous that create high impact on
the investment that are provided by the
chosen business.
 The fuel prices increase the models
created by the VOLKSWAGEN (AG)
can be less attractive.
 The increasing prices of raw material,
also impact on the cost of
manufacturers which create results to
diminish profit as well of
VOLKSWAGEN (AG)
 The government regulation and policies
to protect interest of the local car
manufactures.
2.2 Environment audit for VOLKSWAGEN (AG)
The various types of evaluation intended to identify environmental compliances and the
gap that is implemented by management system with correct action. The management tool taken
here is PESTLE analysis which consists of the performance management with the aim to achieve
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goals and to safeguard environment by adopting control on practices and policies.
VOLKSWAGEN (AG), is using PESTLE analysis for the environment audit.
Political factors: The automotive company such as VOLKSWAGEN AG manufactures its
products in the developing countries but is under pressure from the side of government, to make
their auto motives more affordable for common man. Thus, VOLKSWAGEN (AG) need to pay
attention on growth, performance and results of the company (Wickramasinghe and Jayaweera,
2011).
Economic factors: The currency exchange rate creates an adverse impact on operations of the
organisationVOLKSWAGEN, their focus is to target the new customer from different countries.
It is highly affected by this factor which is responsible for attracting new customers, the
company is facing many problems such as currency exchange rate, heavy taxes and paying of
more interest.
Environment factors: The automotive industry is considered to be the most destructive sectors as
it plays the major role to damage the environment. To make effective and positive outcomes, 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, during the initial timing
businesses were providing the services of the products only to the upper class. These factors
created an adverse impact on organisation because of the frequent change in the customer
requirements with changing trends and preferences. The cited organisation VOLKSWAGEN
(AG), needs to emphasis on the customer demand to retain them and to provide satisfactory
outcome.
Legal factors: One of the most important factor that which affects the profitability and
performance of the vehicles brand. The government has made some policies for the employees
and the customers for their protection as well as for environmental safety. proper following of
such rules and regulation will help in easy and faster promotion of the company
VOLKSWAGEN AG. It will create a positive impact on the business as well as on the
employee’s performances.
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Technological factors: Innovation and technology plays a major role in market share of the
automotive industry (Hui and Tsang, 2014). Factors like this has a positive impact on the
business operation which helps in developing the market profitability within the organisation. It
helps to make the environment healthy for easy and faster working. The organisation
VOLKSWAGEN (AG) uses the advance technology to attract the customers which is beneficial
for the organisation to generate the revenue in shorter time.
2.3 Importance of stakeholders formulating new strategy
Person who make the group of people inside the organisation and has equal share are
stakeholders. The stakeholders are made to pertain the group of people within the organisation.
The different employees in the company participates in different activities to give effective
results to the company. The people in an organisation who takes part in such activities such as
customers, employees, government and the suppliers, these are very important for an
organisation like VOLKSWAGEN AG. These helps to enhance the productivity within the
workplace. The importance of the stakeholder in an organisation is to analyse the situation of the
business by its working environment. It will help to make the new strategies which will increase
the growth of the revenue and the performance.
 The innovative ideas and opinion from employees supports the business to fulfil the goals
and objectives of the organisation.
 The support of government to increase the productivity and outcomes within the business
environment.
 There should be clear communication among the employees to understand productivity
and profitability of the business which will also give opportunities to increase business.
 All stakeholders create platform to make positive outcomes from different activities
which will help in making high profits for organisation VOLKSWAGEN (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 Volkswagen (AG) determines different activities
and action that give a positive impact on functions and operations.
Identify power:
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The company ' Volkswagen AG ' developing through several activities that impact
positively on its operations and functions. With the help of different stakeholders in the given
company there can be positive results and performance in effective way (Cantrell, S., 2011).
Some elements taken by the organisation are as follows:
The strength and weakness are analysed to lessen the competitive advantages.
The interest rates are lowered in the organisation to cover more investments for more profit or
revenue generation. The reduction in monitoring is required for the minimum efforts by the chosen
organisation.
Analysis done to understand the stakeholders and organisation:
The cited organisation ' Volkswagen AG ' has made the new strategies to create the value
and to focus on various results and the profitability within the organisation. There are different
activities which helps to make new product and services within the business for its better and
faster growth. The organisation should have the provision of taking the feedbacks from their
existing customers so that they can work on it to improve the quality of product or to solve the
quire of customer for their retention.
2.4 New strategy for Volkswagen AG
Volkswagen AG has selected the new strategy to be implemented in the company for the
better and faster growth. The strategy helps to give out the effective and efficient results and
performance of the staff members or the workers inside it. It helps to attract the customers within
the organisation which in turn will help the investors to take the advantage of the profits
(Zachariassen, 2008). The workplace can fulfil its goals and objectives easily, also can
concentrate on providing the customer satisfaction for the retention of the buyers as well as to
create new customers. It will continuously help to increase the profitability of the organisation.
In this aspect, merger and acquisition is the effective strategy that assists to create high
profits and revenue through merging new business. In this way, the chosen organisation has
opportunities to cope-up with the several people so that they are able to make effective
functioning. Profit and loss can be share in systematic way that make proper develop in the
business environment.
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New strategy is determines as the substantial growth strategy which assists to promote
effective results in the business. With this aspect, Volkswagen can easily capture the market for
development of the performances. As results, it will enhance high market share in the business to
capture the various areas.
LO3
3.1 Different strategy that assists to create more growth in business.
 Market strategy
This strategy will help the organisation to easily enter into new country to face the market
competition. The company needs to conduct development programs to explain the importance of
measures to be taken to develop business environment for working. It will help the company to
make and implement the operational plans for new areas and more profitability.
a) Merger: The process adopted by an organisation to merger two companies for more
profitability to the organisation. It also helps to expand the business and resources.
b) Strategic alliance: Under this more than two organisation runs together jointly with their
liabilities and assets to grow their business faster in the organisation
c) Acquisition: It helps an organisation to acquire a business by another business to work
properly and to increase its profitability.
 Substantive strategy
This is the best and most easy strategy to be adopted by an organisation for the
development and better performance of the workplace.
a) Related diversification: In order to expand the operations in different product line create
effective results in the organisation. It helps to improve the quality of the existing
products with the improvement in the operational functions to increase the goals and
objectives (Ghemawat, 2012).
b) horizontal growth: Under this the organisation has the opportunities to grow in different
areas for the faster growth and profitability of the firm.
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c) Vertical growth: Under this growth the organisation takes the same areas for the growth
with diversification and new operational strategies at the organisation. It helps the firm to
grow and analyse the performance appraisal with revenue generation.
d) Unrelated diversification: the Volkswagen (AG) can increase the areas of diversification
with new product line which will penetrate in new markets.
 Limited growth or retrenchment
Under this strategy helps to avoid the massive amount of debt that the often accompany rapid
growth. Mangers of the organisation looks for the quick growth and expansion of the business.
This restricts the ability to take advantage of the economies of scale or saving that kick in the
organisation.
3.2 justification for choosing the strategies for Volkswagen (AG)
The main aim of the organisation is to achieve the maximum profits in the business for
the betterment and the growth of the company as well as to enhance the growth of the company.
The selection of the new strategy will help the organisation ' Volkswagen (AG) ' to maintain
their profitability for the positive outcomes in easy and faster manner (Gibbert, 2010). Revising
or making a new strategy in an organisation helps it growth its operational skills and positive
outcomes for assessment of the business and its resources used by it. It will help in targeting as
well as setting the targets in the different categories to increase the customers and to retain the
existing one. The organisation will easily develop their market to maintain its profitability to
balance the results and the performance of the employees. The organisation Volkswagen (AG)
will expand its business in new streams and all over the world which will be further helpful to
analyse the business environment in a systematic manner. The different activities applied inside
the company helps to develop results and improves the performances to analyse the business
environment.
The chosen strategy is the better aspect that assists to develop effective strategy in the
business. Merger and acquisition strategy is the important element that assists to develop proper
development in the organisation. With this aspect, profit and losses can be share so that
Volkswagen will easily develop their operations and functions in different areas of the world.
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LO4
4.1 role and responsibilities of personnel at Volkswagen (AG)
Volkswagen has aim is to enhance their operations and functions to develop target market
and cape to the sales. There are around 6.0% businesses exists that are developed their operations
around 2025. Efficiency of the company also develop as the expenditure which significantly
impact and improves ratio of the R&D costs. Sales of the organisation also reduced that assists to
accomplish selling, administrative expenses in recent years. In the fiscal year, it assists to reduce
their negative impact and earns more money. In addition to this, in the year of 2025, backed up
performances will be ascertain to make sure that financial targets will be accomplish in
systematic manner. Volkswagen has effective strategy in which they can inspire for future target
and customers are fascinating the vehicles to develop financial services for the mobile solution.
 Business development: Relationship between the employees and the workplace plays an
important role in growth of the business. This show that the employees and the
organisation plays equal roles and responsibilities in the development of the business.
The main objective of both the worker and the organisation is to earn and increase the
profit (Grant, 2018). Relationship between employees and the organisation: the organisation Volkswagen
(AG) and its employees both are equal partners of the organisation to work in team and to
show their capability, which will help to generate revenue. Staff management and organisation: The worker as well as the partners of the
organisation, both are interdependent and has important roles at different level of
responsibilities (Huan, Sheoran and Wang, 2014). For instance: The employees who are
working in the financial department are responsible for managing the financial accounts
of the company 'VOLKSWAGEN AG'.
 Understanding the technology: the staff members and the organisation must be able to
perform their work with efficiency and effectiveness to maximise the profits. It helps an
individual to show his/ her importance in the organisation to increase its business and
profitability on a continuous basis.
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4.2 requirement of the resources the tools for new strategy Human resources: the people who staff's and operates an organisation or the employees
of the company is human resources. It helps to increase the performance and to maximise
the profits of the organisation. The strategy for the chosen company is very helpful as it
helps in keeping the records. It also helps to manage the product with the cost
effectiveness. Financial resources: the money or capital which is available to the business in the form
of cash. Liquid securities and credit lines. It helps in the investment that includes the
dynamics of the assets and liabilities (Hedman and Kalling,2013). This resource helps to
develop the performance and the operational skills of the employees and also shows the
economic stability of the company or the fluctuations. The organisation Volkswagen
(AG) can attract more customers at workplace easily. Time resources: the company Volkswagen (AG) is required to manage its time to serve
the better employee performance with the positive results. This will help the organisation
to earns the profit in shorter time and will create a strong brand image in minds of the
customers.
 Raw material resources: the basic need of an organisation is raw material for the
manufacturing. VOLKSWAGEN AG should concentrate on the raw materials which is
required to manufacture the final or the finished products for the end users for the
satisfactory results.
4.3 SMART objectives to achieve the targets in VOLKSWAGEN AG
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Illustration 1: SMART objectives

(Source: SMART objectives, 2017)
 Specific: creating specific objective with the help of proper communication and clear
language to reject the use of unspecific or unwanted things. By being specific
VOLKSWAGEN AG is providing the clear guidance to achieve its goals and aim on
time. The company will increase its revenue by 15% within 5 years. With the help of high
share in market the chosen business can grow their profitability around 25000 billion per
year. Measurable: the cost of cars have a measurable change in it or the performance of the
employees can be measured by the attainment of the objective. If the company cannot
measure the performance towards the objective than it can never be determined if the
goals as been accomplished. The company has increased it cost by 6 lakhs to 10 lakhs
from 2014 to 2017 (Hiriyappa, 2013). In each area of the market, performances need to
be measure to accomplish desire objectives. Attainable: the objectives which cannot be achieved or serves no purpose other than
waste of resources and demoralisation of the staff. For attainable aspect, training needed
for all employees to increase their performances in significant manner. Relevant: if the company acts that there is no point in achieving an objective that is of no
use or has no importance. Relevance is devised from an alignment with the overall
corporate direction. In business objectives, relevancy needed to develop their market
share as the high growth.
 Time bound: the importance of establishing the objectives with a completion of the date.
The objectives with no end dates work against or cannot be measured for their
performance. In 7 months, all these objectives will be accomplish in positive aspect.
Key financial targets 2015 2025
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Operating return on the sales 6.00% 7 to 8%
Return on capital 14.00% 15.00%
Capex ratio 6.90% 6.00%
In addition to this, there are several strategies has been determines which need to be
accomplish for 2025. In this way, initiatives will be taken for growing positioning of the brand.
In addition to this, development of the winning vehicle also contain portfolio. It assists to
streamline moulder architectures. There are several partners also determines regional players in
market that assists to win economy segment. Goal of the company is to boost excellence
operations that covers major areas for the divisional brands and investment. It assists to enhance
efficiency for the research and development program.
CONCLUSION
From the above report, it can be summarized that the companies taken here a) James
Halliburton’s waterbuoy has chosen the right and appropriate business strategies to invest in
dragon den Bcc. It was helpful for the company to increase the operational functions and the
performance of the organisation. The company b) Volkswagen group (Volkswagen AG) needs to
focus on the values and the performance of the employees for the required results. Also, there is
a need to measure the strengths and weaknesses in the company to achieve the targets for the
better and faster growth in new areas as well in different country. The organisation needs to work
hard to manage the share price by providing the good performance at their workplace. The
SMART objectives are discussed here to show the growth of the company in different areas by
the performance measurement in a systematic manner.
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