HND Business Strategy: Strategic Planning, Factors, Techniques

This report provides an overview of business strategy, focusing on strategic planning and its various components. It begins by defining the mission, vision, core competencies, and goals of an organization, using Volkswagen as a case study. The report identifies key factors that need consideration during strategic planning, such as industry dynamics, competition, and internal strengths and weaknesses. It also evaluates the effectiveness of strategic planning techniques like the BCG growth-share matrix and the Profit Impact of Market Strategy (PIMS). The analysis highlights how these techniques can assist companies in formulating and implementing effective policies and procedures to achieve a competitive advantage. The report concludes by referencing academic sources that support the concepts discussed.

Business Strategy
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Content
• Introduction
• Mission, vision, core competency and goal
• Factors that needs to be considered in strategic
planning.
• Effectiveness of techniques used.
• References
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Introduction
• Every company has certain strategies. Vision, mission, goals
and core competencies provides path way for this.
• Factors like industry, competition, strength and weakness are
important formulating strategic planning.
• There are certain techniques like BCG growth matrix and
profit impact of market strategy used while developing a
business plan.
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Mission, vision, core competency
and goal
Every company has some
mission, vision, goals and
core competencies that
provides pathway for
strategic plans for the
organisation.
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Cont...
Mission of Volkswagen:
It mission is to build long term strategic partnership with
their customers. To assist customers in making right
choices according to their business needs by reducing
fleet costs and meeting global standards in customer
services.
Vision of Volkswagen:
To be world leader in auto mobile industry by the year
2018.Long term electrification of cars using latest battery
technology.
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Cont...
Goals and objectives of Volkswagen:
This company aim to become world leader in auto mobile
industry in both economic and ecological way using
intelligent innovation projects hence providing customer
satisfaction.
Volkswagen aims to become become the largest employer
in the in all market among different communities and
regions and hence creating a great team of employees.
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Cont...
Core competencies:
High performance diesel technology TDI.
Blue TDI is a new concept of that makes this technology
even cleaner, exhaust after treatment helps to reduce
nitrogen oxide up to 90% making the best in its class.
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Factors that needs to be considered in
strategic planning
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Strategic planning is a process of defining organisation's
strategy and making decision about allocating resources and
using it in a sustainable manner so as to fulfil goals. This
provides guidelines as to how these strategies will be
implemented. There are several factors that needs to be
considered while formulating strategic planning some of them
are as follows:
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Cont...
Industry: It is important to understand the industry and its
situations in case of strategic planning. While evaluating
industry several things needs to be evaluated such as
market size, past and potential growth, new market
growth potential, new market entrants, future threats,
competitive profitability. Any change in these factors
can have a larger impact on organisational activities.
Industries are subjected to be under pressure from
various macro and micro factors and are needed to
evaluated while making any such plans.
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Cont...
Competition: It is important for the companies to
understand and evaluate the competition it faces from
both bigger firms as well as the small business
enterprises. Any changes in the plans plans of companies
like Volkswagen must be done by analysing position of
competitors in the market as well as there plans for near
future. There strengths weakness and nature of
competition and how they meet the demands of there
customer needs to be understood before hand.
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Cont....
Strengths and weakness: It is important for the
companies to understand organisations strengths and
weakness because any change in their planning needs to
be done on the basis of these only. SWOT analysis is
essential in order to formulate its strategic planning.
Strengths and weaknesses are generally internal factors
but plays a significant role in planning process. It is
essential for the organisation to determine and increase
its internal strengths.
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Effectiveness of techniques used
BCG growth share matrix: Company faces many
situations among them four types of these are explained
by this matrix. According to BCG matrix Volkswagen
faces situations that are as follows:
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