Business Strategy Report - HND Business Level 5 - Semester 1

This report provides a comprehensive analysis of business strategy, focusing on strategic planning, organizational and environmental audits, and stakeholder analysis within the context of the Volkswagen company and Azimo company. The report begins by examining the importance of business missions, visions, objectives, goals, and core competencies in formulating strategic plans. It then delves into organizational audits, using SWOT analysis to evaluate Volkswagen's strategic position, and conducts an environmental audit using PESTEL analysis to assess external factors. Stakeholder analysis is explored to understand the significance of various stakeholders in strategy formulation. The report also presents a new strategy for Volkswagen, discussing market entry, substantive growth, limited growth, and retrenchment strategies. It concludes by outlining the roles and responsibilities in strategy implementation, the required resources, and the contribution of SMART objectives to achieving strategic goals. The report aims to provide a practical understanding of business strategy principles and their application in real-world scenarios.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Business missions, vision, objectives, goals and core competencies helps in formulating
strategic plans..............................................................................................................................1
Covered in PPT...........................................................................................................................1
1.2 Factors should be considered while formulating strategic plans..........................................2
Covered in PPT...........................................................................................................................2
1.3 Techniques used in developing strategic business plan........................................................2
Covered in PPT...........................................................................................................................2
TASK 2............................................................................................................................................2
2.1 Organisational audit for evaluating strategic position of company......................................2
2.2 Environmental audit of given organization...........................................................................3
2.3 Importance of stakeholders while formulating new business strategies...............................4
2.4 New strategy of organization................................................................................................6
TASK 3............................................................................................................................................7
3.1 Strategies for market entry, substantive growth, limited growth and retrenchment.............7
3.2 Justification for selected strategy..........................................................................................7
TASK 4............................................................................................................................................8
4.1 Roles and responsibilities of persons who engage in strategy implementation....................8
4.2 Resources required for implementing new business strategy...............................................8
4.3 Contribution of SMART objectives in achieving strategy implementation..........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In the modern scenario, business strategies assist to give appropriate guidelines and
directions to company so that they can significantly survive in the competitive market place as
well as easy to attain their goals and objectives. Therefore, strategy affected by internal and
external causes either positive or negative manner. Thus, it is necessary to be systematically
analyse and evaluate all major factors with the help of suitable methods and techniques. This
report classified into two sections first part is based on Azimo company. (Teece, 2010) Hence, in
the context of Azimo organisation here will be explained its goals, vision, mission, core
competencies in an effective manner because it helps to formulate appropriate strategy plan.
Whereas second part of this assignment based on Volkswagen company, it is one of the leading
automotive organisation of UK. Thus, here will be systematically explained organisational audit
for evaluating and examining the actual position of the business firm. Additionally,
environmental audit also here will be conducted in an systematic style. In the last, it will be
elaborated importance of stakeholders within the business firm due to this stakeholder method
will be used. (Scholes, 2015)
TASK 1
1.1 Business missions, vision, objectives, goals and core competencies helps in formulating
strategic plans
Covered in PPT
1.2 Factors should be considered while formulating strategic plans
Covered in PPT
1.3 Techniques used in developing strategic business plan
Covered in PPT
TASK 2
2.1 Organisational audit for evaluating strategic position of company
It is required to be significantly evaluate and analyse the strategic position of the business
firm before developing new strategy for the company. With the help of this, an organisation can
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easy to get success as well as achieve their goals and objectives. Apart from this, organisational
audit is one of the major aspect for every company because with the help of this can significantly
identify the actual position and status in a impelling style (Astrachan, 2010). Thus, here can be
used SWOT analysis tool for analysing and evaluating strengths, weaknesses, opportunities and
threats of the company. Along with this, SWOT analysis technique explained in the context of
Volkswagen such as follows: (Jurevicius, 2016)
Illustration 1: Swot analysis of Volkswagen
(Source- Jurevicius, 2016)
STRENGTHS WEAKNESSES
 Volkswagen has great and effective
brand image in the market place
 It also can be known as first entrant of
the car market
 Work place of Volkswagen skilled and
capable employees are working
 It have several branches within
approximately 27 countries across all
over the world.
 In the current year regularly increased
competition level in the auto-mobile
sector.
 It have limited growth rate because of it
is an rivalry business firm.
 Volkswagen suffered by several
controversies thus all these situations
are directly affects on organisation
performance and brand name in the
negative manner.
OPPORTUNITIES THREATS
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 Volkswagen can be expand their
business firm in Russian and African
market place
 At this time, buying behaviour
regularly increased thus it positively
impacts on company.
 Volkswagen also can tie up and use
joint venture concept within the
organisation so that it can be expand
their business firm while start working
with other care manufactures.
 One of the major threat is continuously
change legal and political forces which
negative impacts on business firm.
 Natural disasters
 Increased competition level between
auto-mobile companies
 At this time large number of New
rivalry firms are entered in the market
place.
2.2 Environmental audit of given organization
Every business firm surrounded by its business environment in which included different
factors which directly impacts on working performance of the company either positive or
negative manner. Therefore, It is necessary to be effectively analyse and evaluate all major
causes thus should be use appropriate methods and techniques by the managers. Therefore,
managers of the Volkswagen company should conduct appropriate environmental audit so that
they can examine environmental factors as well as major barriers. Thus, PESTEL analysis tool
can be used by the managers of the business firm for analysing the environmental causes in an
systematic way. (Meskendahl, 2010) Hence, in which concluded several factors which all are
explaining under follows:
 Political factors: In which included those factors which controlled by government and
legal authorities of the country. Thus, these causes are substantial affects on economy and
stability level. Apart from this, political instability of Germany is largely influenced on
Volkswagen as well as its market position. It has several branches across all over the
world therefore it is necessary to be systematically analyse and evaluate the political
factors with the help of appropriate methods. (Woodcock, Green and Starkey, 2011)
 Economical factors: European unions facing different problems and issues just because
of economical issues. Additionally, it is also affected on economic condition of the UK.
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In order to this, changes in the price of raw material also negative impact on Volkswagen
company.
 Social factors: In the country, lives different type of persons who has their several needs
and requirements. In the other words, there are also lives antithetic kind of social persons
which expect unique and smart features in the Volkswagen cars. Thus, these aspects are
directly pressures on Volkswagen company. Therefore, it is necessary to be full fill needs
and wants of the customers in an effective style. (Verbeke, 2013)
 Technological factors: At this time regularly upgrade technologies which directly put up
pressure on Volkswagen company as well as due to this, also regularly changed
customer's demand. Thus, as per the technological causes must be provide innovative
features and specifications in the cars of the Volkswagen company.
 Legal factors: While having any changes in the legislations and legal terms of the
country which also influence Volkswagen company in the negative manner. If this
company does not follows legislations of the country then it can may be faced by some
financial penalties.(Dong-Hun, 2010)
 Environmental factors: Within the some countries such as EU and Britain has banned to
sell and purchase crude cars which negative impacts on Volkswagen company.
2.3 Importance of stakeholders while formulating new business strategies
Volkswagen is an leading car maker company of UK it provides cars with unique features
at world wide level. It affects huge affects on topographical rage of the country. Therefore, it is
necessary to be give core attention to its stakeholders such as customers, employees,
shareholders, investors, suppliers and so more. Furthermore, one of the major responsibility of
managers of Volkswagen company is to give fully and actual information to its stakeholders of
the business firm.(Cinquini and Tenucci, 2010) So that they can also aware about actual position
and status of the company. Shareholders and employees of the firm must be fully satisfied
because company's profitability and productivity totally based on both these stakeholders. Apart
from this, shareholders are those persons who invest their fund within the company for getting
return and profit. In order to this, it is necessary to be identify the actual requirements of the
stakeholders of the organisation thus here stakeholder analysis matrix can be used by the
managers of the Volkswagen business firm. Additionally, stakeholders of the business firm has
several importance which all are explaining under follows such as:
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 Long term effective relationship
 Feedback and appropriate quality of product development
 A sense of community
 Consideration
 Decision making process
 Direct management
Illustration 2: Stakeholders analysis matrix
(Source- Stakeholders analysis matrix, 2030 )
Stakeholder matrix is one of the major method which helps to define actual importance of
stakeholders within the organisation. Thus, in which concluded four type stakeholders which
explaining under follows: (Reinhardt and Stavins, 2010)
 Meet their needs: In this group included those persons who has high power but not that
much interested to get information about company as well as its actual position.
 Key players: These type of stakeholders have high power and high interest thus it is
necessary to be provide proper and actual information to them about company as well as
its actual position.
 Least Important: In which concluded those persons who has low power and low interest
such as customers. They focuses on to buy products and goods as per their needs and
requirements.
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 Show consideration: This is the last concept of stakeholder matrix, these kind of
stakeholders has high power but low interest such as legal authorities and government.
(Verreynne and Meyer, 2010)
2.4 New strategy of organization
Business firm can adopt new strategies within the organisation after analysing the macro
and micro environmental factors. Therefore, with the help of this it can be provide better services
and facilities to customers as per their needs and expectations. Apart from this, Volkswagen
wants to adopt new strategy so that it can effectively overcome the problems and issues in an
impelling manner. Managers of the firm can be create an appropriate business strategy while
considering customer's needs, market trends, pricing polices and environmental factors.
Furthermore, this company have to pay penalties of approximately $19 billion agencies.
Volkswagen has to be implement cost leadership strategy within the organisation so that they can
provide better services to customers at reasonable price. So that they can get fully satisfaction
towards their needs and requirements. (Slater, Olson and Finnegan, 2011)
In the other words, before implementing the business strategy within the organisation it is
necessary to be effectively analyse and evaluate all major environmental factors with the help of
appropriate methods and techniques. So that they can significantly identify and examine the
actual needs of the customers. Along with this, effective strategies helps to reduce problems and
issues from the organisation due to this respectively increased profitability and productivity
level.
TASK 3
3.1 Strategies for market entry, substantive growth, limited growth and retrenchment
There are several type of methods which can be used by business firm for achieving goals
and objectives. It is necessary to be effectively analyse and evaluate the various aspects for
entering the different markets. At this time, Volkswagen has huge pressure government and
environmental legal authorities because it is not follows legal rules and regulations in an
effective manner. Therefore, there are explaining variolous strategies which can be used by
Volkswagen in this particular situation such as follows:
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 Market entry: It is required to be use market entry strategy within the organisation for
expanding business firm in several areas. Thus, Volkswagen can made an effective
strategic alliance with local auto-mobile companies so that it will not necessary to invest
huge amount in the market place. (Oltra and Luisa Flor, 2010)
 Substantive growth: Company can produce raw material by it self for having substantial
growth of the business firm. Due to this, it can be enhance their profitability and
productivity level in an appropriate manner.
 Limited growth: This strategy used by company when they have lees capital and
resources to operates business activities and operations in an effective manner.
Additionally, while an organisation tie up with other manufactures enterprises then it can
be reduce the problems and issues in an effective way.
 Retrenchment: This method useful for those companies which suffered from huge
financial problems and debt amounts. In this situation it can be offer high discount and
sales to customers at minimum cost. (Wang and Verma, 2012)
3.2 Justification for selected strategy
Volkswagen seeks to make an new strategy thus it is necessary to be consider
environmental safety,customer satisfaction, pricing polices and so more. Thus, this company
suffered by huge financial problems due to this it have to be fill penalty of $19 billion.
Therefore, it can be use cost leadership strategy within the organisation for recovering the cost in
an impelling manner. There are explaining its benefits in the context of Volkswagen company
such as follows:
 It helps to conserving resources and materials
 With the help of this Volkswagen can achieve their competitive advantages.
 It can be attract rich and middle class families by sells cars at reasonable cost.
Apart from this, Cost leadership strategy is beneficial for the Volkswagen company
because due to this employees of the firm less consuming several type of resources such as
human, financial and technical. With the help of this, Volkswagen also can take competitive
advantages in an effective and efficient manner.
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TASK 4
4.1 Roles and responsibilities of persons who engage in strategy implementation
An organisation included several important persons who plays different roles within the
work place of company. It helps to accomplish goals and objectives of the business firm in an
impelling way. Apart from this, there are demonstrating important persons as well as its roles
such as follows:
 Senior management: These are the top level management persons of the company who
made rules, regulations, polices, strategies which have be followed by all employees of
the business firm. While an business firm implement a new strategy thus senior
management has rights to make appropriate changes in the existing plan of company.
(Robinson, Lloyd Sherwood and DePaolo, 2010)
 Managers: It helps to manage and control all over business activities and operations of
the business firm. Additionally, managers of the company responsible to communicate
rules and regulations to all staff members so that they can aware about that and attain
their goals.
 Engineers: These persons who helps to update and make appropriate changes in the
existing cars and other products of Volkswagen company. Thus, they are responsible to
improve and upgrade machines with the help of new and innovative techniques.
4.2 Resources required for implementing new business strategy
Volkswagen is an leading car maker company of UK it provides unique cars with
effective features to customers as per their needs and requirements. Apart from this, it wants to
implement new strategy within the organisation thus there are required some major resources
which all are elaborating under follows such as:
 Financial support: Without appropriate finance and fund an organisation cannot
effectively perform their operations and activities. Additionally, they cannot get success
in the competitive market place. (Higgins, Omer and Phillips, 2015)
 Human resources: It is one of the major resources without human resources a company
cannot get success as well as not achieve their goals. It helps to manage and control all
activities of implementation process.
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 Project team: While an organisation seeks to be implement new strategy within the work
place of company thus project team also plays important role because in which all team
members are performing their tasks in unity and attain their decided goals and objectives.
(Parnell, 2010)
4.3 Contribution of SMART objectives in achieving strategy implementation
Every organisation has their own objectives and goals which they wants to be achieve in
the effective and efficient manner. Hence, Volkswagen is an largest car maker company of UK it
focuses on to maintain brand image in the competitive market place. Apart from this, there are
systematically explaining SMART objectives of the Volkswagen company which they seeks to
be achieve in an impelling way. (Hahn, Kolk and Winn, 2010)
 It seeks to be enhance sales by 15 to 20 % within next 3 years
 Increased profitability and productivity by 25% within 2 years
 Volkswagen wants to enhance their market share by 15% by 2017.
 Specific: Volkswagen has huge amount of finance, technical and human resources which
will helps to accomplish goals and objectives of the company. Additionally, it aids to
increased sales and growth rate in an systematic way.
 Measurable: As per above represented objectives which they wants to attain in future. In
the context of this concept must be systematically measure and evaluate targets and goals
of the firm.
 Attainable: Employers of the firm must all employees should divided into several groups
and decide their goals and objectives so that they can easy to achieve their targets in an
systematic way.
 Relevant: Volkswagen seeks to achieve goals and get success in the competitive market
place therefore, it is necessary to targets should be have relevant and realistic in the
nature. (Li and Tan, 2013)
 Time bound: In the last should be decided time period so that employee of the firm
effectively focus on their goals and objectives in an effective style.
CONCLUSION
From the above mentioned report it has been concluded that, business strategy helps to
achieve goals and objectives. Here has been defined goals, objectives, mission, vision and core
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competences of the Azimo company. Additionally, effective strategy also has been produced for
the Volkswagen organisation so that it can provide better quality and feature of cars. Apart from
this, there has been used SWOT and PESTEL analysis tool for analysing actual company's
position and environmental factors.
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