VW AG Business Strategy: Objectives and Strategic Planning

This report provides a comprehensive analysis of VW AG's business strategy. It begins with an introduction to strategic planning, defining objectives, missions, and core competencies, followed by an examination of factors influencing strategic plans, including competition, industry dynamics, and internal strengths and weaknesses. The report then evaluates various techniques for business planning, such as the BCG matrix and Ansoff matrix, before moving on to an organizational audit using SWOT analysis and an environmental audit utilizing PESTLE analysis. Stakeholder analysis is also assessed for its importance in strategy formulation. The report also covers the appropriateness of alternative strategies, the selection of a new strategy, roles and responsibilities, resource allocation, and the use of SMART targets for strategy implementation. The conclusion summarizes the key findings, and references are provided. This analysis is designed to help students understand the complexities of business strategy and strategic planning in a real-world context, providing a solid foundation for their academic studies.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK1.............................................................................................................................................3
Covered in PPT. .........................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Organisational audit of VW AG ..........................................................................................3
2.2 Environment Audit................................................................................................................4
2.3 Stakeholder analysis importance...........................................................................................6
2.4 New strategy..........................................................................................................................7
TASK 3............................................................................................................................................8
3.1 Appropriateness of alternative strategies..............................................................................8
3.2 Selected Strategy...................................................................................................................9
TASK 4..........................................................................................................................................10
4.1 Roles and responsibilities of an individual.........................................................................10
4.2 Resources needed for implementing strategy.....................................................................11
4.3 Contribution of SMART targets for implementation of strategy........................................11
CONCLUSION .............................................................................................................................12
.......................................................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategy define as a thought or concept selected to take regarding a wanted coming, such
as answer to a question and accomplishment of objective. Business strategic is the management
of science, art and craft of implementing, evaluating and formulating cross-functional
judgements that will enable and enterprise to attain its long term goals. It is the procedure of
specifying the enterprise's objectives, mission and vision as well as developing plans and
policies. Which are designed to attain these objectives, and then assigning resources to
implement the ideas, programs and projects. Typically a strategy will cover a time period of
regarding 3-5 years. It concerned with major issues related to resource e.g. boosting the finance
to make a new plan or factory.
This assignment is based on the topic is business strategy and case of VW AG. This file
is being prepared to discuss objectives and goals which are in link with strategic planning when
there is implementation of different strategic plans (Agyapong and Boamah, 2013). in this file
also several factors which effect the enterprise plan and the assessment of tools powerfulness
will also be improved. Environment as well as organisational audit will also be examined in this
file which will be utilised to determine positioning of strategy . In this report neutral are very
necessary for an organization therefore it is required to do shareholders investigation while
devising strategy arrangement which is also discussed in this study.
TASK1
1.1 Business objectives, mission, goals and core competencies
A proper business plan in an organisation plays an important role for attaining core
competencies, vision, mission and goals etc. if an essential and effective strategy will be made in
an economic then it will be supportive in reducing management cost. As a output of it, profit and
sales will become enhanced. VW AG , this company can also make some aggressive benefits
from their challengers.
Followings are characterized as the objectives, vision , mission and core competencies of
VW AG, which are mentioned as follows:
Mission: “To make long term relation with buyers and provide help in the creation of correct
choice about business needs, by increasing cost and providing standard service to buyers.”

Vision: “To focus on the positioning of brand and to be global environmental as well as
economic leader among the Auto-mobile manufactures,”
Goals and objectives: VW AG tends to make increase in their customers so that business will be
capable to increase profit and brand image in market. Along with this, mentioned company also
wants and needs to maximise their market growth and share which will be helpful in achieving
aggressive benefits from challenger. They also make use development strategy of product in their
firm. They generate some opportunities in marketplace and gain benefits from it. Training and
development is also being given as well as they will be attain targets in an essential and
appropriate way. This will also support in eliminating undesired product cost.
Core competencies: VW AG has large variety of products and services in order to produce their
buyers so as to complete their requirements and needs. Under this firm make use of things and
accessories in the manufacturing process in order to sustain merchandise standard. Core
competencies are specifically used for increasing competitive benefits in a market. Mentioned
company must cater different strategy so that they will be much impressive in comparison on
their challengers.
1.2 Factors need for producing strategic plan
Strategic planning is a best termed with the help of enterprise and it can determine some
strategies & can also built necessary judgements in regrades with resources allocation, so that
cited firm can pursuer strategy. With the assist of strategic plans, company can also provide
some guidelines which are needed for formulating strategies. There are three factors that must be
examined when implementation of action plans are there. It can be identified as follows:
Competition: It is very essential to identify the challengers position in marketplace, and this type
of factor must be interpreted into consideration when business makes implementation of strategic
plans. In this way this kind of company cannot attain growth and success, if the analysis
challengers nature will be not made. Challengers weakness and strength should be analysed by
an organisation and various way must be find out how challengers are satisfying customer
needs.
Industry: While making plans in an industry, it is very essential to make evaluation and
assessment of all firm. New market entrants, past growth, market size, future threats and
aggressive profitability will be examined when there will be valuation of business. The changes
in such factors will have highly impact on enterprise activities.

Strength and weakness: There are several weakness and strengths in an enterprise which must
be identified, so that business can make impressive growth and success. These are define as a
internal factors which are present in an enterprise. It is essential to make its study during the
implementation of strategic plans. Company has several internal strengths like: manufacturing
process, employees performance, effective process of decision making and organisation culture
etc. it is also very essential and necessary to examine weakness, so that organisation will be
capable to make developments and can reduce weakness.
1.3 Effectiveness of technique's for making business plans
There are different technique's that are used by VW AG for making and improving
business plans, and it can be determined as follows:
BCG Matrix
This is one of the important and most effective technique or tools in BCG matrix, it
supports the enterprise in determining in which type of areas, in this way more resources and
investment must be used. It is one of the impressive tools which is used for making plans in a
company.
Source 1: BCG Matrix, 2017

Question marks: It identify various firms which are having large amount of market growth and
have a less share in market. If the market share of the industry will be very low then an
organisation will consume high money.
Dogs: In this situation, VW AG have less market growth & less share in market. So in this way,
company can be sink and wind up. Businesses are define as a termed so as weak here and
identify issues in generating profits.
Stars: This situation is called as star, in this way mentioned business are having high growth and
share in market. They have various opportunities that termed as company leaders in a
marketplace. They needs high investment for increasing high share in market.
Cash Cows: In this position, there are different industries who have low growth and high share
in market. The such type of firms who are doing better in marketplace.
Ansoff Matrix
Source 2: Ansoff Matrix,2016
Market penetration: It is the main term which defines the growth strategy where VW AG have
main focus on existing product selling in market. It supports in increasing and sustaining product
share in market, do restructuring market and secure success as well as growth in market
dominance which is removing by challengers.

Market development: AW AG make sale the present product in innovative marketplace in this
approach. This type of strategic can be selected in a different ways like: distribution channels,
packaging, product dimensions and other innovative channels e. g. advertisement, promotion,
publicity etc.
Product development: In this position, mentioned business make introduction of other products
in present marketplace. In such type of strategy where new competencies are improved and
modified goods are being improved buy VW AG for attracting large number of the buyers.
Diversification: In this situation, Innovative products are innovate in this marketplace. This type
of strategy are very risky because company makes entry in other market with some experience or
no.
TASK 2
2.1 Organisational audit of VW AG
Company strategic position can be termed as various ways which are selected such as
adopted by VW AG for doing some tasks which are different kind its challengers and
performance of same activities in different mode. With the assist of it, under this firm is comely
good entertainer in marketplace & generating impressive activity position which will assistance
organization to gain competitive benefits in business surroundings (Aithal, 2016). In this way,
SWOT analysis is necessary and can be made to make plan of action of market position are as
follows:
STRENGTHS WEAKNESS
 Wide brand portfolio between all the
Auto-mobile business.
 Best type of diversification strategy
which is being used by VW AG.
 Established innovative strategy is
called TOGETHR-2025.
 Different joint-ventures with auto-
makers of china which supports in
increasing profits.
 Various types of models are being
 There is high recall rate in United
Kingdom marketplace.
 Low market share in the sector of Auto-
mobile in US.
 Negative policy which increase VW
AG brand image.
 No competency and less expertise in
manufacturing goods which are battery
driven.

given to buyers through which they are
highly attracted.
OPPORTUNITIES THREATS
 There are expectation of maximise in
fuel price in coming day or year.
 Competences and skills can be
collected with the help of acquisition.
 Demand about autonomous vehicles.
 Exchange Euro rate is decreased
(Alsoboa and Aldehayyat, 2013).
 Continuous maximise in rules and
regulation of government.
 Maximise in price of raw material
which will impact businesses revenues.
 New technique's and tools are state
which is used by competitors in their
goods which have impact on VW AG.
 Continuous maximise in international
competition.
2.2 Environment Audit
Environmental audit which is become complete by any enterprise includes external
analysis which is known as PESTLE. This type of analysis is become used in order to scan the
all environment in which mentioned company is operating. Different kinds of strategic approach
which is used by VW AG. It is accessory in scanning several types of component which may
effect industry operation.
Political factors: VW AG is operating their business in 150 Countries or more, therefore every
and each countries is having various political aspects (Ang, 2011). Various government
regulations and rules which may impact industry in distinct manner are under these factors.
United Kingdom government has also made different policies which are impacting business in
different ways.
Economical factors: This kind of factor is very essential outcome on business running and
entities. Under these policies relate various fiscal and monetary stratergy. Whole these policies
impact working of an enterprise. United Kingdom economic condition which help in business
expansion.
Social factors: Various social factors that present in an organisation has impact on cited
company like: user preference & quality, ethnical environment and purchasing habits etc. In UK

customers preference is to buy luxury cars & therefore is increase in purchasing ability which
striking business (Burlton, 2015).
Technological factors: It makes technological factors involvement which are like: creative
technologies, advanced use in an economic. Auto-mobile industry are use several form of
technologies so as to built different process of production.
Environmental factors: Under this factor provides grate effect on the business operations. VW
AG sort manufacture of different products such as diesel and petrol products which supports
with to pull large amount of consumers (Champoux and et. al., 2012). Related to the diesel
product, there is a high pollution in a surrounding, so enterprises must make different products
which will have more positive effect on environment.
Legal factors: There is combination of various factors in lawful factors of mentioned company
which are impacting its success and growths. Along with this, some lawful issues are also faced
by an enterprise in its working. Penalty is become paid by an enterprise for making petrol and
diesel cars in United Kingdom.
Source 3: PESTLE Analysis,2017

2.3 Stakeholder analysis importance
Stakeholder are define as a group, persona and an enterprise which are having their
engagement in an organisation (Firnkorn and Müller, 2012). Directors, employees, shareholders,
unions, community, suppliers, creditors and governments are called as stakeholders. Stakeholder
analysis are termed which is used for determining person who helps in business activities. There
are three steps which are having high involvement in stakeholders analysis it can be identified as
follows:
Step-1
The prime and important step which have high involvement in stakeholder determination
is used to make individual analysis who are involved and acquire impacted by the various
business operations (Kernbach, Eppler and Bresciani, 2015).
Source 4: Stakeholder grid,2017
Step-2
The next and main step is to have determination about interest, power and influence
which arrive from different person such as stakeholder (Godlevskaja, van Iwaarden and van der
Wiele, 2011). In regards with this, neutral grid should be made by AW AG.
 Stakeholder who are having high interest and power which is make large efforts for
satisfy consumer, promoting products for causing strategies.

 People who have less interest as well as more power which have determiner on plan of
action but they also get bored with organization.
 Person who have more interest and less power that are could be informed so it is
essential for an arrangement. Stakeholder have lees involvement and less ability that have effect on organization so
that VW AG should supply less attention on handling.
Pace-3
It is a final pace of analysis is to sustain good perceptive of impressive stakeholders in an
endeavour which have correct support and comment.
In the organisation there are different number of the stakeholder who has their own aim in
achving long term goals and objectives of company.
Employees: Thesea re important person who are plays vital role in success and development of
business. In the company, business manager provide different kind of progames to their workers
in order to incresaing basic skills and knowledge on particuler subject.
Customer: These are also main and important person who are responsible in improving business
profitability and productivity in a certain time period. So in this company should to provide
qualitative products and services to their customers.
2.4 New strategy
It is necessary and very important for every and each enterprise to create an impressive
plan so that they will be capable to provide satisfaction to their buyers. VW AG generated a
blueprint, which will support them in improving more and more values for their merchandise and
administration among customers (Killing, 2012). Whenever an enterprise supply innovative
items to their customers, those are meliorate a scheme in regards with them. Many purchaser
have its personal requires that should be attained by company such as VW AG which is
completing them by offering unique and innovative goods to their buyers. Apart from it, this also
assist in enhancing profits and develops bran image of company in a country. An effective and
essential plan also helps them in expanding business and merchandise in a world.
The business attention on the brand orienting by rising a name with the support of
specific technologies for their organization. VW AG is on a regular basis that growing their firm
by pull in various purchaser with the assist of product stigmatization. Companies principal policy
is to be a leading given in world about the sustainability mobility. Under this business is also

selecting other new strategies like TOGETHER- strategy 2025, that will help in making better,
new and stronger Volkswagen. They also wanted and needed to be role model and technology
leader when there is a required of safety, integrity and environment (Li, Zhou and Si, 2010).
Mentioned company will also make best and attractive investment representation the assist of
combative gainfulness and purpose reliable, excellent with the help of original strategy.
TASK 3
3.1 Appropriateness alternative strategies
There are several alternative policies that are become utilized by the VW AG and they
have accurate improvement. Strategies types are can be identified as follows:
Market entry strategies Organic growth: When here is an betterment in an endeavour in a worse manner as it
existences in opening then, this will identified as the growth of inorganic. Amalgamation: It is determined as the best process where various organisation are
merged and make execution as single business enterprise. Acquisition: There are hundred percent possession of a single firm in purchased by a
specific arrangement (London and Hart, 2010). Strategic alliance: In this way more then single industry share their share and possession
to attain goals. Permitting: This is best design that use a specific business to license other organization
to exercise their trademarks as well as ask in a homecoming way for several fees. Franchising: In this way, trademarks is nor provided by parent but different services
such as maintenance cost are also provided.
Sustainability growth Related diversification: When classification is become practice by AW AG related with
line of product. Miscreated diversification: Firm make classification, It is unique and different from
previous. Horizontal integration: This is identified by the single business form of participation in
institution at the other manufacture time or different industry.