This report provides a comprehensive analysis of Volkswagen's business strategy. It begins with an introduction to business strategy and its importance, followed by an audit of Volkswagen's strategic positioning, including SWOT analysis. The report then delves into an environmental audit using PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors. Stakeholder analysis is discussed, highlighting its significance in creating new business strategies. A new and effective strategy for Volkswagen is proposed, focusing on new product development. The report explores alternative strategies such as substantive growth, limited growth, market entry, and retrenchment, with a selection of the most appropriate strategy. Finally, it outlines the responsibilities and roles of personnel in strategy execution, resource requirements, and the contribution of SMART targets to successful implementation. The report concludes with a summary of key findings and recommendations.