Strategic Planning and Stakeholder Management

This assignment delves into the concept of strategic planning and stakeholder management in businesses. It emphasizes the significance of understanding and analyzing stakeholders to create effective strategic plans that meet their needs and expectations. The document also discusses the importance of regulatory policies and how they impact business activities, highlighting the need for companies to make informed decisions that balance profitability with social responsibility.

UNIT 7 BUSINESS STRATEGY

Table of Contents
Introduction ...............................................................................................................................3
Task 1.........................................................................................................................................4
Covered in PPT ....................................................................................................................4
Task 2.........................................................................................................................................4
Covered in PPT..........................................................................................................................4
LO3. Understanding the approaches to strategy evaluation.......................................................5
AC 3.1 Analysing the appropriateness of alternative strategies relating to market entry,
substantive growth, limited growth or retrenchment for VW AG ............................................5
AC 3.2 Justifying the selection of a strategy..............................................................................5
LO4. Understanding how to implement a chosen strategy........................................................7
AC 4.1 Assessing the roles and responsibilities of personnel who are charged with strategy
implementation...........................................................................................................................7
AC 4.2 Analysing the estimated resource requirements for implementing a new strategy for
VW AG......................................................................................................................................7
AC 4.3 Evaluating the contribution of SMART targets to achievement of strategy
implementation in VW AG........................................................................................................8
Conclusion................................................................................................................................10
Reference List:.........................................................................................................................11

Introduction
The marketing activities of the business firms are integrally related to the business
strategies that are formed by the management of the organisations. The establishment of
business necessitates the construction of effective strategies that helps in the development of
the business organisations considerably. The basic formulation of the essential competences
that are required by the business organisations is necessary for achieving future targets. The
development of the business strategies is equally important to meet the latest demands arising
from the consumer market.
In this report, the various aspects that are closely connected with the formation of
business strategies and support the process of their development are discussed briefly in
context of some specific scenarios. The main focus is laid on understanding the elements for
designing business strategies and their implementation by the organisations in order to
promote the rate of growth of the companies, along with the assessment of the aspects of
strategic planning.

Task 1
Covered in PPT
Task 2
Covered in PPT

LO3. Understanding the approaches to strategy evaluation
AC 3.1 Analysing the appropriateness of alternative strategies relating to market entry,
substantive growth, limited growth or retrenchment for VW AG
Substantive growth: This strategy tends to be very much helpful in case of
expansion of business in limited phase of period. Therefore VWAG can assure its substantive
growth by taking into consideration two ways:
 Merger: It is term to be a way of substantive growth in which two companies
combines together and usually they work as a equal partner for better qualification.
Therefore VWAG company has more potential to use merger strategy for substantial
growth as it possess good market strength.
 Acquisition: It is the another technique for substantive growth in which one
organisation takes the ownership of other. Therefore VWAG possess good market
power so it can apply acquisition strategy too for achieving the substantial growth in
marketplace.
Limited growth: In order to achieve limited growth in marketplace VWAG
organisation can taker into consideration different strategies which are explained blow:
 Market penetration:Under this strategy VMAG company can simply offer all the
more or current items to the existing clients by making carnages in current products
itself in the form of bigger size, multi packs and can also offer multi-purpose.
 Product development: This is another excellent methodology which consist creating
of new items and to offer to new clients as well as to existing ones. Management of
VMAG can adopts this strategy so as to come up with innovative products and after it
to existing clients as it will help in achieving greater profitability margin.
AC 3.2 Justifying the selection of a strategy
VMAG organisation can take into consideration merger strategy for substantial
growth and product development strategy for limited growth as it will be very much helpful
for the firm in achieving the targeted aims and objectives on time. The strategy chosen for
VW AG has been formulated according to the pre4sent necessities of the company and
considering their situation that is at stake with respect to the emission scandal.

For substantial growth merger strategy is term to be the best alternative strategies
relating to market entry for VMAG as the business market has emerged to be one of the most
competitive sectors in the whole world where extensive number of organisations are
participating with the ultimate aim of accomplishing their targets. With the help of merger
with another company, an organisation can easily achieve its target aims as well as it will be
helpful in case company suffer from loss as single person won't have to bear along. In
addition to this it will also be helpful in giving stiff competition to its rival organisations
In case of limited growth product development strategy would be helpful for VMAG
organisation as it will help the firm to develop innovative aspect into employees so as to
come up with creative ideas and new products. This strategy is done in a selective way to
that considers the internal and external factors within which the company is currently
operating. Thus, following the strategies will surely make the company achieve its former
market position and serve its customers the best products of indulging in luxury and also heed
the governmental obligations.

LO4. Understanding how to implement a chosen strategy
AC 4.1 Assessing the roles and responsibilities of personnel who are charged with
strategy implementation
The formation of a strategy is not the last step of the ladder to climb the success. The
strategy is only a structuring of a list of plans. Several roles and responsibilities lies upon top
level, middle level and lower level of VWAG during the process of strategy implementation.
The main responsibility lies with the lower level management of VWAG who are given the
task of executing those plans and usher the success that the company actually aims at. For
carrying out the process of fulfilling the strategic plans, the employees of the company will
have to implement measures. The responsible top level personnel have to take suggestions
from their co-workers before performing a certain action and conduct regular meetings to
monitor the activities of the co-workers. They also need to be aware of the impending
challenges while implementing the strategies effectively. The obligation of execution of
method of vmag is to be taken by centre administrator and outcast. Centre administrators are
being considered as the implementer of top administrations and the obligation of top
administration have three principles ranges which are recognized as procedure,
reinterpretation and modification of vital reactions. Therefore, while strategy implementation
certain roles and responsibilities are being played by lower level, middle level and top level
of VMAG which are explained below:
 Imagining future strategy is the very first role and responsibilities of the personnel of
VMAG as well as this part include clear conveying the techniques to inside and outer
gathering which incorporates all partners and the association.
 Aligning the organisation to deliver that strategy: Role of personnel is to adjust the
association to convey the system as it is not normal that all the individuals in an
organisation be focused on the technique. So under this role of top manager is o
convey the change in association to it lower and middle level management.
AC 4.2 Analysing the estimated resource requirements for implementing a new strategy
for VW AG

Once the strategies are formed and responsibilities distributed to carry out the
respective tasks, it is essential for the availability of resources that will be needed for
implementing a new strategy within the workplace. For the implementation of a new strategy
for VWAG, the company would have to be sufficient with certain major resources like
financial, human and technological that are required for the manufacturing of the auto
mobiles. As financial resources term to be the first and foremost essential resource which
must be considered by the management of VWAG as without appropriative funds company
cannot operates its operational activity and neither can stand for long period of time in
marketplace. Human and technological resources are other crucial resources which must be
considered while implementing a strategy. As advancement in technology keeps on taking
place so in order to deal effectively and to render superior quality products management of
VWAG must recruit and select talented and skilled human resources who possess all the
knowledge about the use of latest technology.
In addition to this availability of an efficient management team, who will be at
par in meeting the situations of crisis effectively for the company. The company needs a
dynamic staff at its disposal for carrying out the actions that will be contributing to the
growth and success of the company (Solnet et al. 2015, p.289). Owing to the modern
amenities and technological advancements in the recent times, VW AG positively needs to
implement technological equipments that would make their projects turn into reality
thoroughly. Budget of the company for a particular project is also a major resource that is
mandatory to implement a new strategy to support the building of the project.
AC 4.3 Evaluating the contribution of SMART targets to achievement of strategy
implementation in VW AG
The achievement of strategy implementation in VW AG needs to be done in a
particular way, as it is a vastly operating organisation and all the factors have to paid heed in
complying with the basic target of the company. This necessitates the adoption of a method
that would help in settling the goals that will be easy to implement and achieve for the
organisation. Creating a set of SMART targets contributes much to achieve the
implementation of a strategy.
The SMART targets stand for the specificity, measurability, achievability, realistic
and timely nature of the ways that will help in strategy implementation (Letunic et al. 2015,
p.258). For example:

Specific :In order to achieve substantial growth and limited growth the best strategy
which can be applied by VWAG is merger and product development.
Measurable: With the help of budget performance standard can be measured, as
before implementing a strategy an estimated budget was prepared and after implementation
the standard budget were compared with estimated budget so as to acknowledge the
differences between them.
Achievable: It can be achieved by merging with other company as it will be helpful
in sharing of resources like finance, human and technological.
Relevancy: Implementation of this strategy will be relevant as it will help in
achieving greater market share profitability ratio as well as competitive edge in marketplace.
Time bound: It can be achieved within 8 months of staring of business.
The target should be specific in nature, so that it clearly states what the particularities
are about the specified aim, thus, achieve them easily. The measurability of the targets helps
to plan, implement and control that makes implementation process easier. Targets must be
attainable without which it will be a failure. Therefore, the steps are constructed keeping in
mind these aspects to be easily implemented. This indicates to the realistic nature of the
targets for its consideration, as inconceivable targets will not be of any help. All these
processes need to be bound in a certain time zone, which is beneficial for achieving
something within a stipulated time period.

Conclusion
This report focuses on the strategies used by various business organisations to attain
their objectives and the importance of the formation of strategies. There are various concerns
and requirements that are incorporated while making a strategy, which brings to light the
significance and related factors of the strategy formation. In the context of VW AG, the
formation of implementation of strategies is discussed, which stresses on the building of
strategies and revise the existing ones to propagate their business progression surpassing the
hurdles that occur during the execution of the business activities. Hence, it is recommended
for the company to make an effective strategic plan, with due regard to the regulatory policies
and carry on their task of serving their customers in their outstanding manner.

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