Business Strategy Analysis and Recommendations for VW AG - Report

This report provides a comprehensive analysis of business strategy, focusing on the application of strategic planning principles to VW AG. The report begins with an introduction to strategic planning, outlining the importance of mission, vision, objectives, and goals, and how these are informed by strategies and core competencies. It then delves into an analysis of factors influencing strategic planning, including industry dynamics, competition, and SWOT analysis. The report evaluates the effectiveness of techniques like the BCG matrix and the profit impact of marketing strategy. The second part of the report centers on VW AG, conducting an organizational audit through SWOT analysis and an environmental audit using PESTLE analysis. It explores the significance of stakeholder analysis in formulating new strategies and proposes potential strategies for VW AG. Furthermore, the report examines the appropriateness of alternative strategies, justifies the chosen strategy, and discusses the roles and responsibilities involved in implementation. It also analyzes the resource requirements for implementing the new strategy and assesses the contribution of SMART targets to achieve successful strategy implementation, concluding with a summary of key findings and recommendations.

BUSINESS STRATEGY
Table of Contents

INTRODUCTION.....................................................................................................................................2
TASK 1.......................................................................................................................................................3
1.1 Assess how business mission, vision, objectives and goals can be inform through strategies and
competencies..........................................................................................................................................3
1.2 Analysis factors that considers to formulate plan and objectives................................................4
1.3 Evaluates the effectiveness of techniques which are used to developing strategic planning......5
TASK 2.......................................................................................................................................................6
2.1 Analysis the strategic positioning of VW AG by carrying organization audit......................................6
2.2 Carry out environment audit for VW AG...........................................................................................8
2.3 Significance of stakeholder analysis when VW AG when formulating new strategy..........................9
2.4 New strategy for VW AG..................................................................................................................10
TASK 3.....................................................................................................................................................10
3.1 Analysis appropriateness of alternative strategies..........................................................................10
3.2 Justify selection strategy..................................................................................................................12
TASK 4.....................................................................................................................................................12
4.1 Roles and responsibilities of employee who are charge with implement strategy..........................12
4.2 Analysis the estimate resource requirement for implement new strategy.....................................13
4.3 Evaluates contribution of SMART targets to achieve strategy implementation..............................13
CONCLUSION........................................................................................................................................14
REFERENCES........................................................................................................................................15

INTRODUCTION
Strategic planning is the process which determines direction, policy and procedure which
assist to attain goals and targets. Hence, the business can set their targets and objectives through
they will achieve revenue and profits. It is basic need of every company which need to be taken
for accomplish targets and objectives (Ghalib and Agupusi, 2014). It exist vision and
profitability that makes profitability for manage functions. Present report is based on Neil
Westwood’s Magic Whiteboard which enhance revenue and profits through dealing with dragon
den shows. In this aspect, they are making high profits and revenue through objectives and goals.
For gaining insight knowledge of the company, report covers mission, vision, objectives
and goals through formulating plans. Furthermore, it also analysis strategic positioning through
carrying organizational audit. Moreover, it also includes strategies which assist to determine
market entry, growth to make sustainability. In addition to this, report assess roles and
responsibilities to implement strategy at workplace. At last, it covers SMART targets to achieve
goals and objectives.
TASK 1
1.1 Assess how business mission, vision, objectives and goals can be inform through strategies
and competencies
Mission
Mission determines a set of purposes which maintain by the company for enhance their
revenue and profits (Anwar, Shah and Hasnu, 2016). It assist to Neil Westwood’s Magic
Whiteboard for smooth functioning and overall growth. Mission of the cited company for their
strategic planning are as follows:
 To Create value for each customer of the company
 To Maintain loyalty within the enterprise
 To enhance market share and programs
Vision

Vision is determines things which need to be accomplish in the future. It is helpful to
growth of the enterprise in different parameter. It includes following elements which need to be
accomplish at workplace:
 To get most valuable customer and staff member
 To enhance share and profits of the firm
 To make innovative products and services.
Goals and objectives
Goals and objectives are general guidelines which set by the company for achieving
targets of the firm. This are accomplish within the time period so that Neil Westwood’s Magic
Whiteboard can make short term planning within the company. Following are goals and
objectives of the cited firm can take:
 To make successful brand and operations
 Develop business services (Areal, McIntosh and Sheppy, 2016)
Core competencies
Core competencies are skill and knowledge which is requires to make successful
operations and outcomes. It assist to the cited firm to make brand image of the enterprise in front
of customer and other stakeholders so that they will achieve goals and objectives in effective
manner.
1.2 Analysis factors that considers to formulate plan and objectives
Strategic planning is the effective process which determines strategy to make decision to allocate
resources and pursue plan (De Massis and Kotlar, 2014). It also gives direction in Neil
Westwood’s Magic Whiteboard. Following different factor can be considers in formulating
strategic planning:
 Industry: It is very important to analysis overall performances of the company to make
successful brand and organization performances. Thus, the cited firm can easily operate
functions in systematic manner. Changes in these factors can impact on the Neil
Westwood’s Magic Whiteboard performances. Apart from this, every business possess

different strategy from other organization so that it create high impact on the chosen
enterprise performances (Lederer, Schott and Kurz, 2013).
 Competition: Analysis of competition factors can also create impact in formulate plans
and objectives of the cited firm. In this aspect, they are unable to maintain their
profitability in market because various organization sell same products and services as
Neil Westwood’s Magic Whiteboard. Hence, this factor also generate impact on the
company performances when they are formulate plans and objectives and goals (Prasad
Mohanty and Augustin, 2014).
 Strength and weakness: SWOT analysis create crucial impact to formulate plans and
objectives. In this aspect, Neil Westwood’s Magic Whiteboard need to assess their
strength and weaknesses so that they will achieve market share. With the help of
strengths, the chosen organization can formulate plans for enhance profitability and
outcomes in market (Ajagbe, Inelo and AKPAN, 2016). On the other hand, weaknesses
assist to reduce loopholes of the enterprise. In this way, market share can also manage at
workplace.
1.3 Evaluates the effectiveness of techniques which are used to developing strategic planning
Following techniques can be suggested within Neil Westwood’s Magic Whiteboard:
BCG matrix
This matrix is determines through four elements which are as follows:
 Stars: Stars are indicate growth and performances of the company through they will
able to enhance market share and maintain profitability at workplace. Hence, Neil
Westwood’s Magic Whiteboard can easily establish their operations in new areas. It
will also helpful to take decisions regarding market and their results (Crooymans,
Pradhan and Jansen, 2015).
 Cash cows: Cash cows indicates low growth of Neil Westwood’s Magic Whiteboard
so that they can analysis market goals and objectives in systematic manner. In this
way, the cited firm can also face low growth in customer response so that they are
unable to expand their operations in different areas. Thus, it is important to
concentrate on elements which generate revenue.

 Dog: Further, it also shows low growth and market share of the chosen enterprise.
Thus, the organization need to cut unnecessary cost which reduce profits of the
enterprise so that they are able to develop solution at workplace (Wilson, Whitmoyer
and Sarstedt, 2014).
 Question marks: It also determines high growth of Neil Westwood’s Magic
Whiteboard so that they are concentrate on enhance operations and outcomes in
different places. In this element risk is also involves so that business need to perform
different activities through they can support to whole market easily.
Profit impact of marketing strategy
Profit impact of marketing strategy helps to maintain sustainability and competitive advantages.
This is because, it frames policies and rules for Neil Westwood’s Magic Whiteboard
(Hornibrook, May and Fearne, 2015). It considers following facts:
Business and natural environment of the company
Production method and organizational structure
Competitive position of the enterprise
Budget which is requires for operating functions
Strategic development program
Different types of operational activities
TASK 2
2.1 Analysis the strategic positioning of VW AG by carrying organization audit
Organization audit is conducted through SWOT analysis within the enterprise. It assist to
determine strength and weaknesses of the company (Anwar, Shah and Hasnu, 2016). In addition
to this, it also demonstrates external opportunities and threats at workplace of VW AG. Hence, it
make direction to strategic position of company. Following SWOT analysis can be taken within
the cited firm

Strength
 VW AG is the UK largest automobile industry that also operate functions in different part
of world.
 They are frame policies and regulations which assist to grow enterprise in effective
manner (Areal, McIntosh and Sheppy, 2016).
 High prices can also create positive impact on quality products and services so that the
company can establish various outcomes in effective manner.
 Strategy which adopt by the cited firm is very good that creates positive impact on
performance.
Weakness
 Dependency on UK and other countries for raw material (Eddleston and Morgan, 2014).
 Diversification as geographical is very poor.
 Transportation cost is very high so that it can also generate negative impact on the
performances.
Opportunities
 The cited firm has opportunity to expand their operations through diversification.
 Online sales also promotes through company so that the business can achieve high price
and attain profitability for development (De Massis and Kotlar, 2014).
 With the help of home delivery services, the chosen enterprise can maintain customer
loyalty within the business.
 VW AG need to give qualitative products and services so that they are able to capture
whole market in systematic manner.
Threats
 The cited firm is risk position due to high competition within the market so that it can
also create problem to expand business operations (Lederer, Schott and Kurz, 2013).
 Increasing in unemployment can also generate problem within the company for expand
operations and outcomes.

 Reducing in income can also generate negative impact so that investment cannot be made
by VW AG.
With the help of internal strength and weaknesses, the cited firm has various significance and
competitive advantages through they are able to develop profitability and positive results (Li-
Hua and Lu, 2013). In this way, VW AG need to expand their operations in international market
so that they are able to develop business profits and outcomes in systematic manner.
2.2 Carry out environment audit for VW AG
In respect to analysis environment, PESTLE can be taken within the enterprise which are
as follows:
Political factor
VW AG operating functions at international market so that they are able to develop profits from
outside areas. Global political factors are creates high impact on the company so that taxes and
government policies and legislations, etc. can create impact on performances. Various countries
give opportunity to the cited firm to operate functions in international market (Marinho and
Cagnin, 2014).
Economic factor
Economic factors such as demand changes and currency can also create impact on the
business performances. Thus, profits, and many other things are consider effects on the company
outcomes. Slowdown in economic conditions can also create major impact on the performance of
VW AG.
Social factor
Changes in social and culture can also create impact on the business performances. This
is because, social changes is a reason for modification in customer preferences (Elhamma and
Zhang, 2013). Thus, behavior and attitude of customer can creates effect on VW AG
performances. Hence, overall production is create impact on overall performances of the
company.
Technological factor

Technology factor creates great impact on the company performances due to changes in
market trends. Advance technology has great chance to enhance market operations within the
company (Sung and Ashton, 2014). In this way, VW AG need to perform different functions
through they are able to offers products and services in effective manner. Thus, they will capture
whole market easily.
Legal factor
Performances of the cited firm is directly influence from government policies and
regulations so that it is essential to develop market and operations in systematic manner. All laws
and rules that are frame by government is essentially follow by the chosen enterprise to protect
their environment (Prasad Mohanty and Augustin, 2014).
Environmental factor
VW AG need to perform functions to protect environment. In this way, the cited firm
need to take ethical and moral regulation so that environment is protects in systematic manner.
The cited firm also need to concentrate to satisfy different stakeholders. Hence, the company can
also protect environment.
2.3 Significance of stakeholder analysis when VW AG when formulating new strategy
Stakeholders are determines as a person, group, and many other elements who are
participate within the company. In this aspect, VW AG has creditors, employee, shareholders,
customer, government and suppliers, etc. (Dyché, 2015). They are assist to support to different
activities and actions which make sustainability and achieve positive results. Following are
significant of stakeholders analysis for formulate new strategy at workplace.
Following are importance to formulate strategy within the enterprise:
 Get opinion and ideas from different stakeholders at workplace.
 Take highest support from various people within the enterprise
 Make communication through understand them at workplace
 Help to understand reaction from different activities within the company (Ajagbe, Inelo
and AKPAN, 2016)

 .
Following steps can be taken within VW AG to perform functions:
Step 1
First step which need to be taken by the company is analysis business performances
through assess various activities and actions. In this way, those things are includes which create
impact on operations.
Step 2
After analysis business performances, VW AG need to identify power, interest and
influence from different activities and outcomes. With the help of various stakeholders, the cited
firm can take this step at workplace (Crooymans, Pradhan and Jansen, 2015).
 High power of strength and weaknesses can be assess by the organization so that
competitive advantages can easily maintain.
 High power and low interest rates need to be capture by the firm so that investment can
also generates at workplace.
 Low interest rates can also take place to kept information at workplace.
 Low power can reduce monitoring to minimum efforts that are made by the cited firm
within the company (Ghalib and Agupusi, 2014).
Step 3
Final step of the stakeholder analysis good understanding of the organization and
employee in VW AG. In this aspect, the organization take feedback and view from different
customer regarding operations of the business.
2.4 New strategy for VW AG
VW AG adopt new strategy through they can create value and focusses on customer
satisfaction from different actions and activities. Thus, the company can make new product
development plan. Hence, creditors, suppliers, customers, government and many other
stakeholders are plays very important role (Wilson, Whitmoyer and Sarstedt, 2014). In this
strategy the company can meet with goals and objectives through satisfy customer and their

requirement. As results, the cited organization can generates more revenue and profits from
different activities.
TASK 3
3.1 Analysis appropriateness of alternative strategies
Market entry strategy: When the business conduct development program within the business,
they have to concentrate on market entry strategy (Hornibrook, May and Fearne, 2015). In this
way, VW AG can establish new operations in existing place.
Merger: Merger is the process which assist to merge various operations within two enterprise.
Thus, the cited firm acts as single business operator.
Acquisition: Acquisition is the strategy in which the organization is take place through acquire
whole business.
Strategic alliance e: When two or more organization combine their assets and liabilities together,
they can accomplish objectives and goals. It is known as strategic alliance (Shrader and Hills,
2015).
Substantive growth
Related diversification: When VW AG make diversification in existing product line, they can
make related operations within the market.
Unrelated diversification: When the cited firm make diversification in different areas, it is known
as unrelated diversification.
Vertical integration: VW AG involves diversification in same stage so that it is known as vertical
integration. In addition to this, it also take in same place so that company diversify their
operations in existing areas.
Horizontal growth: When the various company make their expansion in different way in
distinctive place so that it is known as horizontal growth (Anwar, Shah and Hasnu, 2016).
Limited growth

Market penetration: In this aspect, VW AG penetrate market through increase share price and
product increment. In addition to this, different strategies can also be taken by the cited firm such
as advertisement, discount and many more things.
Product development: With the help of product development, the company can design new
product and make develops through packaging style and many more aspects (Areal, McIntosh
and Sheppy, 2016).
3.2 Justify selection strategy
Main objective of VW AG is to make themselves market leader so that they can achieve
high market share and sustainability at workplace. In this aspect, they will maintain profitability
through the company can attain targets and objectives. To accomplish goals and objectives they
can also make them successful leader so that automobile industry can easily develops solutions at
workplace which are related to market entry in new places. In addition to this, the company can
also increase their revenue through different activities and actions (Eddleston and Morgan,
2014). They can also align with big companies through strategies can be develops for attain
overall goals and targets. In new market, with the help of merger the cited firm can easily get
high share price from different activities and targets goals.
TASK 4
4.1 Roles and responsibilities of employee who are charge with implement strategy
Strategy implementation is requires person who can lead to different employee and divide
them to attain goals and objectives at workplace. In respect to this, VW AG need to assign roles
and responsibility according to workers qualification and interest. At each level roles are
demonstrates which assist to overall growth of the company (De Massis and Kotlar, 2014). For
implement strategy, the firm need to demonstrate roles and responsibility clearly so that they will
able to enhance outcomes at workplace. CEO of the enterprise also responsible to communicate
various things which are important for achieve market share and goals at workplace. In this way
various parties are also giving their effective role through communicating with them. Thus, they