Factors Affecting Strategic Planning in Business

This presentation discusses the factors that affect strategic planning in business and their impact on the formulation of strategic plans. It covers the importance of vision, mission, objectives, goals, market situation, and technology in strategy formulation. The presentation also explores various strategic planning techniques used by Volkswagen, such as SWOT analysis, project feasibility analysis, and BCG growth matrix.

Business Strategy
(TASK 1)

Introduction
Strategy is the most important element in running any of the
business. It is the plan of the management which helps the
organisation to grow and to increase the performance. Strategic
planning helps the organisation to attain the objectives and the goals
effectively.

1.1) Formulating the strategic business plan
considering goal, objectives vision and mission
of the firm
Mission- Mission basically defines why the firm is existing and
what all things will it does to attain the vision of the firm. It is a
very important aspect of the firm as it motivates the firm and its
employees to perform the given task effectively. There is no
official mission statement of Volkswagen but it has a group goal-
“The group goal is to offer attractive, safe and
environmentally sound vehicles which can be complete in an
increasingly tough market and set world standards in their
respective class. ”
Vision- It is a written statement which is a long term plan of the
organisation. It defines what the organisation want to do in the
future and what it wants to achieve in upcoming time.

Continued
“ Focusing on the position of Volkswagen Group as a global
economic and environmental leader among auto mobile
manufacturers. Volkswagen's four goals that are intended to
make Volkswagen the most successful, fascinating and
sustainable auto maker in the world by 2018.”
 Goals- It is the supporting plans to attain the vision and the
mission of the firm. It is basically a step to achieve the targets
of the organisation. The top management of the organisations
sets the goals an the other people of the firm has to make
supporting plans to achieve the goals.
 Core competencies- It is the advantage that the firm gets while
competing with other firms of the industry. This is the major
component of the firm so as it makes the firm's services and
products unique from the competitors.

1.2) Factors that affects the strategic planning
process.
There are many factors that influence the operations of the firm as
well as these factors also affect in the formulation of the strategic
plans. If there is no specified vision, mission, objectives and goals f
the firm then it become very difficult to do smooth working of the
tasks in the organisation. If the organisation does not prepare a
statement of the vision and mission then it also become very difficult
to formulate the strategic plans that will support the growth of the
individual and the firm. Therefore the objectives of the business must
be kept as the priority.
Situation of the market also plays an important role in the strategic
plan. As because the market is a very vast area it involves the
competition, environmental factors and the globalisation. These are
the factors that can help in the formulation of the strategic plan by
Volkswagen.

Continued
The customer's needs and wants changes frequently so the market
study is an important part that has to be studied by the firm as
because it helps in making the strategic plan effective which will aid
in the attainment of the firms objectives. Understanding the needs of
the customers Volkswagen can be able to design the product
accordingly and can help the firm to satisfy their customers.
To frame out the strategic plan its is very necessary to find out the
internal factors of the firm as well. The resources are at the required
level or not, availability of the funds well trained man power and the
advanced technology all these things are to be available so that the
top level management can formulate the strategic plan accordingly.

1.3) Effectiveness of technology used in strategy
formulation
Strategic planning techniques are very important to make effective
strategic business plans for Volkswagen. With the help of these
strategies the company can able to set a higher standards which will
ultimately help the firm and it also motivates the employees to work
hard and smartly and to attain the results effectively. This technique
is sufficient to influence the man power of the firm.
Volkswagen can also use the technique of SWOT analysis. With this
technique the firm can able to know the strengths, weakness,
opportunities and the threats. It is a very familiar tool that are mostly
opted by the firm and it help the firm to know the opportunities and
the consequences that as an auto mobile industry can get suffered.

Continued
Project feasibility is the tool by which the firm can analyse whether
it will get appropriate gain or not. The operations and the
investments that the firm does should feasible so that it can attain
the goals and the tasks in an effective manner
BCG growth matrix is a tool which help in the effective formulation
of the strategic plans. It helps the firm to know the exact position of
the firm's product in the market. It also helps in knowing that how
the product is performing in the current market. All the related
decision of the money (cash in flows and cash out flows) can be
taken effectively with the help of the BCG growth matrix and in the
formulation of suitable strategic plans for the business.

REFERENCES
Liedtka, J., 2010. Business Strategy and Design: Can this Marriage Be Saved?. Design
Management Review. 21(2). pp.6-11.
Melville, N.P., 2010. Information systems innovation for environmental sustainability. MIS
quarterly. 34(1).pp.1-21.
Montgomery, C.A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Nordqvist, M. and Melin, L., 2010. The promise of the strategy as practice perspective for family
business strategy research. Journal of Family Business Strategy. 1(1). pp.15-25.
Pagani, M., 2013. Digital business strategy and value creation: Framing the dynamic cycle of
control points. Mis Quarterly. 37(2). pp.617-632.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Woodcock, N., Green, A. and Starkey, M., 2011. Social CRM as a business strategy. Journal of
Database Marketing & Customer Strategy Management. 18(1). pp.50-64.