Volkswagen Group Strategic Positioning Analysis

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT...........................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Analyse the strategic positioning of Volkswagen group by carrying out an organisational
audit.............................................................................................................................................3
2.2 Environmental Audit of Volkswagen group.........................................................................4
2.3 Assess the significance of stakeholder analysis when formulating new strategy.................4
2.4 New strategy for the Volkswagen group...............................................................................5
3.1 Appropriateness of alternative strategies relating to market entry, substantive growth,
limited growth or retrenchment for Volkswagen .......................................................................6
3.2 Selection of strategy ............................................................................................................6
4.1 The roles and responsibilities of the personnel who are charged with strategy
implementation............................................................................................................................7
4.2 Analysis of estimated resources that required for implementation of new strategy in
Volkswagen.................................................................................................................................7
4.3 Contribution of SMART targets to the achievement of strategy implementation in
Volkswagen.................................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals...................................................................................................................10
Online........................................................................................................................................11

INTRODUCTION
Business strategy is the long term plan of the organisation that is required to execute to
achieve the goal and objective of the business. Business strategy also helps the management to
set the goal and the objective of the organisation and in setting up the plan and the procedure to
achieve such target (Acquaah, 2013). It is important for the business to have effective strategic
management because without it there is no specific roadmap to guide the business to achieve the
business goal and the objective. Business strategies are derived for the long time as it covers the
period of 3 to 5 years.
TASK 1
Covered in PPT
TASK 2
2.1 Analyse the strategic positioning of Volkswagen group by carrying out an organisational
audit
Strategic positioning is the term that is used to predict the future position of the
organisation taking into account the environmental changes and the realization of that
positioning (Astrachan, 2010). It includes the arrangement of the future position of the
organisation with the consideration of the present situation and the future predicted
developments and making of the plans to realize the future positioning. Strategic positing of
Volkswagen group ensures the continuity of the organization. Survival, legitimacy, market
positioning come under this context. It considers the future of the organisation and the position
of the organisation in the future. It covers the kind of the product and service that is used and the
values that make the organisation differentiate form the other competitive organisation
(Bharadwaj and et. al., 2013).
There are the different methods of strategic positioning by carrying out the organizational audit.
 Differentiation
Driving up cost is the essential part of the organisation top gain more profit and increase the
income of the organisation. It places different values to the customer as to provide the quality
according to the taste and the preference of the customer, cost as per the capabilities of the
customer.

 Cost positioning
It is important for the organisation to consider the cost positioning because it gives best price of
the product to the customer so that they can buy such products. This is the another technique to
increase the profitability by cutting down the cost.
2.2 Environmental Audit of Volkswagen group
Environmental audit is the essential tool for measuring the effects on the environment. It
is used to investigate, understand and identify the issue that may affect the environment. These
are used to calculate the adverse impact of these activity on the environment. It covers the
scrutinizing, inspection, survey of the environment so that no issue can arise in the organisation
in relation to the environment (García‐Rodríguez and et. al., 2013). Environmental audit evaluate
the business environment so that evaluation of the result can be made successfully. The issue
related to the environmental legislation and the pressure from the customers are the main reason
behind the environmental audit.
Managing director Paul Willis of Volkswagen group appeared before the environmental
audit committee to answer the question on emissions scandal. The emission scandal started on
18th September 2015 and the Environmental protection agency of US issued notice to the German
auto maker Volkswagen to clean air and to control the pollution that is produced by the vehicle.
The main objective of this scandal is to control the emission that occurred in laboratory. The
international council on clean transportation (ICCT) added the three estimates of three vehicle in
year 2014. This scandal created the awareness about the pollution produced by the vehicles and
the emission occurred in the laboratory in the country and created the awareness to control the
impure of the air in the environment and to reduce the effect of such on the environment.
2.3 Assess the significance of stakeholder analysis when formulating new strategy
Stakeholder are the key part of the organisation. It is important to consider the
stakeholder view while taking the decision in the organisation by the top management. When the
management formulate new strategies in the organisation then it is required to consider the view
point of the stakeholder so that better decision can be taken up by the management. Strategies
can be formulated and implemented in the organisation only with the help of the stakeholder.
Stakeholder are the person who can affect the organisation plan of action and human actions.