HND Business Level 5: Volkswagen Business Strategy Analysis Report

This report provides a comprehensive analysis of Volkswagen's business strategy, examining various aspects to address the challenges faced by the company. It begins with an introduction to business strategy and its importance in achieving organizational goals. The report then delves into Task 2, which involves evaluating Volkswagen's strategic positioning through organizational and environmental audits, including SWOT and PESTLE analyses. The significance of stakeholder analysis in formulating new strategies is also assessed. Task 3 explores the suitability of alternative strategies related to market entry and growth, justifying the chosen business strategy. Finally, Task 4 focuses on the roles and responsibilities in strategy implementation, resource requirements, and the application of SMART targets. The report concludes with a summary of findings and recommendations for Volkswagen's strategic development.

BUSINESS-
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Evaluating strategic positioning with the use of organizational audit..............................1
2.2 Environmental audit for Volkswagen...............................................................................2
2.3 Value of the stakeholders in preparing of the strategies...................................................4
2.4 New strategy for Volkswagen..........................................................................................5
TASK 3............................................................................................................................................6
3.1 Suitability of alternative strategies which are linked with market entry and growth......6
3.2 Justification for selection of business strategy.................................................................6
TASK 4............................................................................................................................................7
4.1 Roles & responsibilities of personnel in strategy implementation...................................7
4.2 Resource requirements for implementation of new strategy for VWAG.........................7
4.3 Effort of SMART targets in business strategy.................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy are described as the action plans which are used by firms so that they
can become successful in achieving there goals and business objectives. It is the art which are
involved in various operations like planning, analysing, directing, controlling and monitoring all
the activities which are processing at business places. It is an important tool for mangers as it
help them to know all the cross function decisions that have been decided in order to effective
complete the task which are assigned to them (Astrachan, 2010). They are able to achieve
competitive advantages over the market areas and this helps in gaining strengths. Business
strategy are designed for Volkswagen so that they can easily resolve all the issues that are
operating in the present business environment. The team of environment protection have
imposed heavy penalty on this company. This had generated negative impact on them and this
can be resolved with the help of effective business strategy. This report is based on importances
of stakeholders while they are formulating business strategy, alternative plans which are linked
with adopting new markets, policies adopted for retrenchment, growth and development of firms
activities.
TASK 1
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2

3

4

5

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7

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TASK 2
2.1 Evaluating strategic positioning with the use of organizational audit
Internal audits are very essential factors for every business and these should be analysed
properly so that all the risk factors can be removed from business, effective operational process
can be used and various measures have been adopted by government authorities in order to carry
out all the business operations in planned and effective ways. All the employees who are
involved in this process have the authorities and responsibilities to keep record of all the
activities in order to maintain them effectively this is also useful in creating positive image of
company so that they can retain themselves in the eyes of stakeholders who are involved in
performing business activities (Bharadwaj and et. al., 2013).
Another factor is linked with adopting SWOT analysis in order to analyse all there strong
and week points of business. They are beneficial in analysing all the aspects which are affecting
the operations of selected business. Various opportunities can also be used by business in order
to achieve success. Threats helps in development of back up plans so that the problems can be
solved by applying measures to increase there performances.
Strength: Volkswagen had decided clear goals and objectives as they want to spread
there business in various segment so that they can earn huge profits. The revenues of the
business are raising on continuous basis as the study evaluated from the past three years. The
rising in profit rates are somewhat lower but they can easily mange all there profits in planned
and effective ways. There are also taken social measures in order to operate business operations
effectively.
Weaknesses: The selected firms are having larger stocks which are unsold thus it affects
and distributes there whole pricing structures and policies. Various business approaches also
affect there pricing structures thus there is decrease in profit rates. If the company is not able to
achieve differentiated business strategy than they lack in achieving competitive business
advantages. Thus they have analysed constantly decrease in there profit rates and revenues when
comparison are made with past years (Casadesus-Masanell, 2010).
Opportunities: These business have great opportunities where they can easily explore all
there business operations by making entry into different market segments. Those strategies
should be developed which are useful in increasing growth and development of business. There
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are various ways in which the activities of business can be expanded into areas by which they
can achieve growth and development.
Threats: The major difficult factor for firm is that as the technologies are constantly
increasing and the company is not able to plan the business strategies according to advancement
in technologies. There is huge threat from various firms who are performing there business
operations in the similar sectors (Stonehouse, 2011).
Team management are needed in order to control all the business process which are risky
and are creating difficulty in performing various business operations. All the factors which are
useful in development of effective risk managing systems are included in these process.
2.2 Environmental audit for Volkswagen
On 18 September in the year 2015 there was various obstacles which were faced by firms
like the cars which they had manufactured were eliminating out pollutions in larger amounts and
this complain from the customers were not good signs for future growth of business.
The pollution have affected health related aspects of the customers and it has also
affected the natural beauty and environment. This was the major difficulty which was faced by
business in those times. This can be solved by developing various plans and strategies which are
useful in manufacturing cars so that the problem which was faced by the company in earlier
times about pollutions can be solved in effective ways. The new strategies implies that all the
new cars will be free from pollutions. It is very important for firms to conduct environment audit
for the auto-mobile sector so that they can increase there profit scales. In order to carry out
environmental audit it is vital to know about the conditions which are operating in external
environment with the help of PESTLE analysis which are described as:
Political environment: If the business wants to carry out their operations in another
country apart from their native place than they had various opportunities as the number of
restrictions will be less which will hamper there business activities, the compulsory taxes which
will be imposed by government are also less in number for the industries which are having there
operations in auto-mobile industries ( Ricart, 2010).
Economic Factors: The economic factor of Volkswagen is linked with income level of
people in the economy as they will buy the products which are having high prices and are
luxurious. If the GDP ratios in the economy are higher then people will buy the products as they
are having money in order to buy these products. Thus economic factors include wealth of the
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