Business Strategy: Strategic Planning, Key Factors, and Techniques

This report provides a detailed analysis of business strategy, focusing on strategic planning and the factors that must be considered when formulating strategic plans. It begins by defining business strategy and its importance in managing operations. The report then delves into the elements of strategic planning, including mission, vision, goals, objectives, and core competencies, using Volkswagen as an example. It identifies key factors such as managers, delegation, targets, and resources that influence strategic plan formulation. Furthermore, the report evaluates the effectiveness of various techniques used in developing strategic business plans, such as the BCG matrix and stakeholder analysis. The conclusion emphasizes the importance of strategic planning in achieving business objectives and selecting effective strategies. The report references academic sources to support its analysis.

Business Strategy

Table of content
• Introduction
• Information about strategic planning when
formulating strategic plans
• Factors that have to be concluded when
formulating strategic plans
• Effectiveness of techniques used when
developing strategic business plan
 Conclusion
 References

Introduction
Business is define as core aspect which get operated with differ kind of strategies in
determine manner. It is really essential to craft such kind of framework which
enable and facilitate to draw better and signified things in frame of manner. Thus,
business strategy is classified as such consideration which enable and support in
performing each and every consideration of operations better and in appropriate
manner.

Information about strategic planning when
formulating strategic plans
Strategic planning refers to a process which consist the strategies that are used by the
company to accomplish the set objectives of the firm. It consider some of the most
important factors which are must to develop the entire plan. They are as follows:

Cont...
Mission- The major aim of the mission is to meet the ends or objectives set by the
management of the company. The mission statement of Volkswagen is “To offer
attractive, safe and environmentally sound vehicles which can compete in an
increasingly tough market and set world standards in their respective class.”

Cont...
Vision- The vision statement of Volkswagen is to be a global economic and
environmental leader among auto-mobile manufacturers.
Goals- In Volkswagen, the goal of the organization is to make mobility sustainable
for its current products and future generation.

Cont...
Objective- The major objectives of Volkswagen are as follows:
 To offer quality product which provide satisfaction to its target audiences.
 Using advance technology in its manufacturing process.
 Raising the revenue and market share of the company.

Cont...
Core competencies- It refers to those resources and capabilities that incorporate the
strategic advantages of a business. The core competencies of Volkswagen is to
make innovation and diverse product portfolio.

Factors that have to be considered when formulating
strategic plans
Managers- In Volkswagen, there can be three types of administration level such as
middle level, front level and line level. Middles level top management allot duties and
responsibilities and targets to different functions of management. Font level managers
fix individuals target in order to cope up with strategic plan.

Cont...
Delegation- In context of respective organisation, middle level management delegate
the duties as per the strategic plan which is fixed by top level management.
Targets- In Volkswagen, to set targets, there is requires the logical and analytical
skill cause of anticipation of profits or losses in forthcoming time.

Cont...
Resources- In Volkswagen, for the completion of strategic plan, there are various
resources are required to the management such as finance, human resource,
knowledge, equipments and others.

Effectiveness of techniques used when developing
strategic business plans
There are various planning techniques, can be use by the management of Volkswagen to
develop strategic business plan. Some of them are defined as below:
BCG matrix
It is an essential procedure for business firm to collect information and data about
position of the product of the company in market.