Business Strategy Report: Volkswagen Group Strategic Analysis

This report provides a comprehensive business strategy analysis of the Volkswagen Group. It begins with an introduction highlighting the importance of business strategies in achieving organizational goals and the significance of resource allocation and performance improvement through a balanced scorecard approach. The report then delves into a detailed organizational and environmental audit of Volkswagen, including a SWOT analysis that identifies the company's strengths, weaknesses, opportunities, and threats. A PESTLE analysis is also conducted, examining the political, economic, social, technological, legal, and environmental factors impacting the company's operations. Furthermore, the report explores stakeholder analysis, categorizing stakeholders based on their power and interest levels and outlining strategies for managing each group. A new strategic plan for Volkswagen Group is proposed, emphasizing a shift towards the Asian market and increased investment in electric vehicle production. The report also analyzes the appropriateness of alternative strategies, such as organic growth, mergers, and acquisitions, and justifies the selected strategies. Finally, the report discusses the roles and responsibilities of personnel involved in strategy implementation, estimated resource requirements, and the contribution of SMART objectives to ensure effective execution of the strategic plan.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Analysing strategic position by conducting organisational audit of Volkswagen group......1
2.2 Environmental audit of Volkswagen group..........................................................................2
2.3 Importance of stakeholders analysis.....................................................................................2
2.4 New plan for Volkswagen group..........................................................................................3
TASK 3............................................................................................................................................3
3.1 Analysing appropriateness of alternative strategies..............................................................3
3.2 Selected strategy justification...............................................................................................5
TASK 4............................................................................................................................................5
4.1 Roles and responsibilities of personnel who are charged with strategy implementation.....5
4.2 Estimated resource requirements for the implementation of strategy...................................6
4.3 Contribution of smart objectives...........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business strategies has a crucial role in helping an organisation in achieving business
goals. It is an art, science and craft of formulating, implementing and evaluating cross functional
decisions which helps companies in reaching their targets and mission. Through a business
strategy, organisation's mission, vision and objectives can be formulated (Scholes, 2015). This
report highlights the important resources which has to be allocated to implement the plans and
projects. Other than this, a balance scored approach is also included in this so that the overall
performance of the business can be improved. But there are some internal and external factors
which can hamper the growth of the organisation. This report will be dealing with such factors
where the SWOT and PESTLE analysis of Volkswagen Group will be done to know the impact
of these elements on their business operations. Apart from all these mission, vision, goals and
core competencies will be highlighted.
TASK 1
1

2

3

4

5

6

7

8

9

TASK 2
2.1 Analysing strategic position by conducting organisational audit of Volkswagen group
Volkswagen is leading enterprise of auto-mobile industry. They have have approximately
350 subsidiaries and they are running their business in different part of this world. Below is
SWOT analysis of cited corporation:
Strength – This organisation is present many countries. They have global reach and their
brand value is very high. Most of the customer in auto-mobile industry buy vehicles of this
company because they have faith in their products (Pugh and Bourgeois, 2011). They are not
dependent on any single market and this is their main strength. The are successfully capturing
emerging markets.
Weakness – Volkswagen is a big organisation. They cannot adopt rapid changes which is
significant part of automotive industry. They do not have sound presence in US passenger car
market.
Opportunities – They can invest more funds in Asian region because this continent will
deliver huge amount of revenue in next 5-10 years. They can also enter in electric car market
which is considered as future of this industry.
10