HND Business Strategy Report: VW AG Strategic Analysis and Planning

This report provides a comprehensive analysis of VW AG's business strategy, examining its strategic position through SWOT analysis, external factors via PESTLE analysis, and the significance of stakeholders. The report delves into VW AG's strengths, weaknesses, opportunities, and threats, and assesses the impact of political, economic, social, technological, legal, and environmental factors. It also explores the roles of stakeholders in strategy formulation, including customers, employees, and government entities. Furthermore, the report analyzes the appropriateness of various alternative strategies, such as market entry, mergers, and acquisitions, and justifies the selection of a specific strategy for VW AG. The report also discusses the implementation of the strategy, including the roles and responsibilities of employees, resource allocation, and the use of SMART objectives to measure performance and achieve desired outcomes within the business environment. The report concludes by summarizing the key findings and recommendations for VW AG's strategic development and future success.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in ppt..............................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Analysis the strategic position of VW AG............................................................................3
2.2 External audit for the company..............................................................................................4
2.3 Significance of stakeholders to formulate strategy within VW AG......................................5
2.4 New strategy for the chosen business....................................................................................7
TASK 3............................................................................................................................................7
3.1 Analysis appropriateness of alternative strategies.................................................................7
3.2 Justification for selecting of strategy.....................................................................................8
TASK 4............................................................................................................................................9
4.1 roles and responsibility of each employee to implement their outcomes and performances
at workplace.................................................................................................................................9
4.2 Analysis estimate resources which require to perform functions and operations within the
business environment.................................................................................................................10
4.3 Contribution of SMART objectives within the chosen enterprise.......................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic vision is not created without planning of business strategy. Plan is made to
consider effective results, for develop results and performance at workplace. In this aspect,
mission and vision is created at workplace for formulate business plan within the company
(Dobni, Klassen and Nelson, 2015). It will also assist to make strategy with considering various
purposes and outcomes for development of objectives and goals. In this context, present report is
based on VW AG which demonstrates effective results and performances through developing
their plan at workplace. It is the automobile industry which possesses different activity to
enhance market share in effective manner. In this aspect, there are different element which need
to be undertake for assess the business environment of the chosen firm. In this context, present
report covers mission, vision, objectives and plan that assist to grow business and operations in
different areas. Furthermore, it covers strategic position of the company for deliver effective
results at workplace. Moreover, roles and responsibilities are also included which assist to
implement the business outcomes and performances. In addition to this, it is also includes
SMART objectives to assess chosen organisation objectives within the environment.
TASK 1
Covered in ppt
TASK 2
2.1 Analysis the strategic position of VW AG
In respect to meet with business objectives and positive results, there are different
advantages take place at VW AG. In this aspect, the company assesses their strength,
weaknesses, opportunities and threats which face by the enterprise. In this aspect, following
elements are included at workplace:
Strength
VW AG has effective outcomes through conducting market research and development to
spend money for enhance activities and actions. It will assist to achieve more profits and revenue
at workplace through determines opportunities at workplace (Akdogan, Dogan and Cingöz,
2015). In addition to this, the company has more and effective resources which determines
effective results and performances to manage reputation and brand of the enterprise. Employees

are actively managed their outcomes and operations which assist to create more profits and
revenue at workplace.
Weaknesses
The chosen company has not effective marketing tools which assist to grow their
operations and outcomes in different areas. In this aspect, facilities are not expanding in different
areas to promote products and services within the market. It generates weaknesses of the
business to enhance their operations in different areas (Dobni, Klassen and Nelson, 2015).
Opportunities
There are various opportunities towards VW AG to enhance their products and services.
This is because, government support to the company to launch their products and services within
the market so that it is the greatest opportunities to them for measure their outcomes and
performances to deal with new customer.
Threats
Due to increasing in competition, the company is facing many issues to operate their
functions and operations in international market. Thus, it is important to assess the market and
then demonstrate functions (Akdogan, Dogan and Cingöz, 2015). In addition to this, due to high
exchange rates and interest, VW AG has problem to launch their products and services.
From the above discussion it can be ascertain that strength and weakness assist to develop
profitability and outcomes within the company. It makes significance and advantages to operate
functions to demonstrate in international market. Thus, the company can develop profit and
outcomes in systematic manner. The chosen can make strategic planning for enhance outcomes
in international place (Singh, Pangarkar and Heracleous, 2014).
2.2 External audit for the company
In order to conduct external audit, there are various elements which included at
workplace to demonstrate effective results at workplace. In this aspect, PESTLE analysis is
conducted by VW AG that s impact on the business operations. They are as follows:
Political factors
In UK market there are various elements which create impact on the business
performances. This is because; government determines their rules, regulations and tax rate
towards the businesses (Dobni, Klassen and Nelson, 2015). Thus, VW AG need to concentrate
on it that assist to grow how performances and outcomes at workplace. In this aspect, the chosen

firm has responsibilities to follow all rules and regulations to create positive impact on the
business operations.
Economic factors
Further, economic factors are ascertains for measure their outcomes to assess
employment, exchange rates, inflation rate within the company. In this aspect, currency
exchange rate creates impact on the operations of VW AG. This is because, when they are
targeting to attract new customer from another country, the company is facing many issues such
as currency exchange and pay more interest.
Social factors
Social factors are also creates impact on the company due to changes in customer
requirement, their taste and preferences. As results, the cited firm need to concentrate on their
customer demand and provide products and services accordingly.
Technological factors
Technological factor create positive impact on the business operations because it assists
to develop market and profitability within the business environment (Dobni, Klassen and Nelson,
2015). In this aspect, VW AG using advance technology to attracts their customer so that it
would be beneficial to them to attract more customers towards the business operations.
Legal factors
Legal factors are demonstrates effective results and performance at workplace. In this
aspect, government determines their rules and regulations to protect the employee and many
other customers. As results, they will easily promote to VW AG at workplace. It generates
positive impact on the business and their performances.
Environment factors
In order to make results and performance effective, the chosen firm has responsibilities to
take care for their environment. In this aspect, they have to measure their outcomes and
performances to dealing with different situations at workplace (Akdogan, Dogan and Cingöz,
2015).
2.3 Significance of stakeholders to formulate strategy within VW AG
Stakeholders are make with pertain group of various people within the organisation. In this
way, different people are participates within the chosen organisation for deliver effective results.
It includes customer, employee, government and suppliers, etc. (Singh, Pangarkar and

Heracleous, 2014). They all are very important for VW AG to enhance their productivity within
the business enterprise. It will create more profits and revenue within the business environment
for ascertains results and performances in effective manner. Following are such significance of
stakeholders’ analysis within the business environment. It will assist to develop new strategy
within the business environment at workplace.
 Ideas and opinion from various employees and other people who are giving full support
towards the business objectives and goals.
 Support of government to enhance productivity and outcomes within the business
environment.
 Strong communication that assists to understand productivity and profitability that creates
more opportunity at workplace (Dobni, Klassen and Nelson, 2015).
 All stakeholders are creates opportunity to take outcomes from different activities which
make high profits and revenue within VW AG.
In order to perform functions and operations, following steps can be taken within the chosen
firm:
Analysis business performance
First step that taken at workplace is analysis business performances of VW AG. In this
aspect, the company determines different activities and action that create impact on functions and
operations.
Identify power
After analysis business performances of VW AG also determines power, interest and
influence by different activities. With the help of different stakeholders chosen business can
demonstrate results and performances in effective way (Akdogan, Dogan and Cingöz, 2015). It
ascertain following elements at workplace:
 High power of strength and weakness for attain competitive advantages.
 Low interests rates need to be taken at workplace which assist to cover more investment
for generate profits and revenue.
 Low power can reduce monitoring which require take minimum efforts by the chosen
business.
Analysis understanding of stakeholders and organisation

In the final step, VW AG makes new strategy which creates values and focuses on
various outcomes and profitability at workplace. There are different activities which assist to
make new products and services within the business enterprise. In this way, the company can
also take feedback and views from customer regarding business operations at workplace (Singh,
Pangarkar and Heracleous, 2014).
2.4 New strategy for the chosen business
VW AG has adopted new strategy which makes effective results and performances at
workplace. In this way, they can easily attract various customer within the business organisation
that support to make new product at workplace. In addition to this, within the business enterprise
there are various stakeholders such as customer, employees, investors and many other people. In
this strategy, the company can meet with goals and objectives and satisfy each customer for
enhance their profitability at workplace. In addition to this, the company can also generate
revenue and profits within the company (Dobni, Klassen and Nelson, 2015).
TASK 3
3.1 Analysis appropriateness of alternative strategies
There are different types of strategies take place for make appropriate work within the
business enterprise (Osterwalder and Pigneur, 2013). They are as follows:
Market entry strategy
In market entry strategy, VW AG can easily enter in new place easily. In order to conduct
development programs, there are different aspects can be taken within the business environment
which assist to grow operations and outcomes. As results, the company can easily establish new
operations in different areas.
 Merger: Merger is the process in which the chosen firm can merge their operations with
another enterprise. It will assist to make profitable business through demonstrate various
people, resources and many other elements (Singh, Pangarkar and Heracleous, 2014).
 Acquisition: Acquisition is the strategy which assists to acquire one business by another
enterprise. It helpful to make profitable business at workplace.
 Strategic alliance: When two or more than two business is working jointly along with
their liabilities and assets. It will assist to grow business and their outcomes at workplace.
Substantive growth

It is the best strategy which assists to grow business and operations for developing results
and performances at workplace (Akdogan, Dogan and Cingöz, 2015). In this way, following
elements are included:
 Related diversification: When the chosen business has make their diversification
within the business environment, they can ascertain operations in existing product
line which assist to meet with goals and objectives at workplace (Grant, 2016).
 Unrelated diversification: In order to make diversification, VW AG can enhance
operations in different areas. It is known as unrelated diversification.
 Vertical growth: In this way, the chosen firm taking same areas to diversify their
business and operations at workplace. It will assist to grow outcomes and results
which require develop performances.
 Horizontal growth: In this way, the company can make expansion in different aspect
for ascertain high growth and profitability (Stewart, Gladstone and Katragadda,
2014).
3.2 Justification for selecting of strategy
In respect to enter in new market, merger and acquisition is the best strategy. This is
because, main aim of the company is to enhance their profits and revenue for ascertain results
and performances in effective way. It is very effective strategy to cope up with other businesses
and enhance profitability at workplace. Hence, profits and loss can be share so that the selected
enterprise will easily expand and diversify the business operations. In this aspect, VW AG can
easily maintain their profitability and outcomes at workplace. It assists to grow operations and
outcomes for assessment of the business resources. It will also helpful to target various customer
for enhance profitability and positive results within the chosen firm (Williams, 2014).
As results, the company can easily develop their market and maintains profitability to
ascertain results and performances. In addition to this, they can also enter in new places which
would be helpful to assess the business environment in systematic way. There are various actions
and activities taken within the company which develop results and performances for assess the
business environment. As results, the chosen company can also enter into new areas which
enhance results and performances (Yang and Su, 2013).

TASK 4
4.1 roles and responsibility of each employee to implement their outcomes and performances at
workplace
Roles and responsibilities of personnel to implement strategy: Director role: Within VW AG director has role to demonstrate policy and strategy at
workplace. In this way, they can provide order to middle level management employees.
Therefore, it will assist to create effective business results at workplace. Manager role: Manager of the chosen firm play role to provide direction to each
employee of different categories. Therefore, it will assist to develop effective results and
outcomes at workplace through following rules and regulations of upper level
management. Front-line manager role: Front line manager develops outcomes through determines
duty and responsibilities in day to day operations. Therefore, VW AG can ascertain
targets and goals for enhance profitability.
 System and structure role: System and structure also play a vital role in making business
strategy. In this aspect, strategy has been done in proper way with systematic
arrangement of activities and tasks.
Strategy implementation assists to develop market and profitability at workplace. In this
aspect, various employees are taking part to ascertain results and performances in systematic
manner. In this aspect, VW AG also making their participation to assign each person roles for
ascertains results and positive outcomes within the enterprise. It will assist to grow operations
and outcomes that can be performing for determine results and performances in systematic way
(Langabeer and Champagne, 2016). At each level of the company, roles and responsibility is
classified which develop profitability and positive aspect at workplace. In this way, the company
also communicate with their people for accomplish desire results and performances. As results,
performances can be maintains through developing ideas and operations. In addition to this, the
chosen business also assigns duty and task according to interest area and qualification of
employee so that they can take results and performances for enhance market share (Dobni,
Klassen and Nelson, 2015).
There are various elements in which CEO taking views and feedback from customer to
identify market and their operations within the business environment. In this aspect, planning is

requires within VW AG for pertaining various results and performances. In addition to this, the
chosen firm has also responsibility to maintain proper records of old data so that they can easily
achieve common goals and targets within the company (Ladib and Lakhal, 2015). In addition to
this, to maintain legal and ethical responsibility, employee of the business has to perform
strategy for determining effective results. It will helpful to demonstrate various benefits of
business activity at workplace.
4.2 Analysis estimate resources which require to perform functions and operations within the
business environment
In order to perform functions and operations, there are different types of resources which
need to be taken at workplace (Yuliansyah, Yuliansyah and Rose, 2016). In this aspect, goals and
objectives are also measure at workplace which assists to grow operations and results within the
company. New strategy can be developing in VW AG in the effective manner. There are certain
resources required to implement the strategy that are as follows:
 Educational resources: Within the entrepreneur, the greatest thing which could be
established in a business can gain high education. With understanding competition and
gaining in depth knowledge VW AG can implement the strategy in effective aspect.
 Physical resources: For operating small task and activities, the chosen enterprise need to
determines proper workspace, telecommunication facilities and adequate information
systems. It will assist to make business plan which is important to assess needs.
 Human resources: In this aspect, the company need to take various people who
performing activities and actions are for attain business results and performances in
systematic manner (Vlachos, 2016). This strategy assist to the chosen firm for developing
their operations and results through attain more profits and revenue at workplace. It will
assist to make sustainability within the company for developing ideas and opinion
towards the goals and objectives.
 Financial resources: Financial resources are requiring at workplace for developing
operations and performances in different areas (Ryu, Lee and Choi, 2015). In this aspect,
they can enhance market share and profits through making more investment within the
company. As results, VW AG can attract more customers at workplace easily.
 Time and material resources: For each strategy, VW AG needs to perform functions and
operations which require develop results and performances. In addition to this, the

company also need to concentrate on time and materials which require develop results
and performances at workplace. In this aspect, the company can easily attain profits and
grow business operations for attain positive results and performances (Alstete and
Beutell, 2016).
4.3 Contribution of SMART objectives within the chosen enterprise
SMART objectives assist to grow business operations and outcomes for attain positive
results and performances within the environment. VW AG can easily attain profitability and
effective results at workplace through demonstrate SMART. In this aspect, overall production
can also develop which enhance revenue and profits at workplace. As results, goodwill can also
made at workplace which assist to create positive results (Yetton, Henningsson and Bjørn-
Andersen, 2013). SMART objectives consider following elements at workplace:
 Specific: The chosen business has objective is to enhance profits and revenue at
workplace through attract more customer within the business environment.
 Measurement: Measurement is also needed at workplace which assists to show effective
results and performances through measurement. In this aspect, the company is developing
their outcomes and performances through assess customer attraction within the business
environment (Dickson and McCord, 2016).
 Attainable: In this element, VW AG identify whether they are achieve objectives or not
within the business environment. In addition to this, they are also finding that how much
they are reach towards the goals and objectives within the company.
 Realistic: Realistic is measure actual position of the company according to certain
advantages and outcomes for developing results and performances. In this aspect,
business needs to consider their outcomes and profitability within the chosen business
(Eaton and Kilby, 2015).
 Time frame: At last, VW AG needs to make concentration on time to achieve goals and
objectives at workplace. In this aspect, they have to ascertain goals and objectives
according to time frame. As results, it will be complete on time.
CONCLUSION
From the above report, it can be articulated that business strategy is very helpful element
which require perform functions and operations at workplace. In this aspect, the firm need to

concentration on their values and performances with strength and weakness. It will assist to grow
business operations in new areas. As results, the company can achieve their market share through
providing various outcomes and performances at workplace. With the help of different activities,
the firm can ascertain their results and performances at workplace. At last, SMART objectives
are created which assist to grow outcomes and performances in systematic way.