Business Strategy Analysis and New Strategy Development for Volkswagen

This report provides a comprehensive analysis of Volkswagen's business strategy. It begins with an introduction to business strategy and its importance. The report then delves into a strategic positioning audit of Volkswagen, including a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. An environmental audit using PESTLE analysis is also conducted. The report emphasizes the significance of stakeholder analysis when formulating new strategies and proposes a new product development strategy for Volkswagen. Alternative strategies relating to market entry, substantive growth, limited growth, and retrenchment are discussed, with a justification for the selected strategy. Finally, the report examines the roles and responsibilities of personnel in strategic implementation, resource requirements, and the contribution of SMART targets to strategy implementation, concluding with key findings and recommendations.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategic positioning of Volkswagen by carrying out an audit.............................................1
2.2 Environmental audit for Volkswagen...................................................................................3
2.3 Significance of stakeholder
analysis when formulating new strategy.....................................................................................4
2.4 New strategy for Volkswagen...............................................................................................5
TASK 3............................................................................................................................................6
3.1 Appropriateness of alternative
strategies relating to market
, limited growth or
retrenchment, substantive growth..............................................................................................6
3.2 Justification of selection of strategy......................................................................................6
TASK 4............................................................................................................................................7
4.1 Roles and responsibilities of
personnel in strategic implementation.......................................................................................7
4.2 Resource
requirements
for implementing a new strategy for Volkswagen.....................................................................8
4.3 Contribution of SMART targets
to achievement of strategy
implementation...........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is helpful in making business successful. For every organisation, it is
necessary to make the effective business strategies to retaining at market place for long period of
time. It helps in enhancing the growth and development of business. Generally the business
strategy is made for long period of time. In this present business report, Unicorn Grocery
business firm use various tools and techniques to manage funds from the Dragon Den's business
firm. There is also a case study discussed about the Volkswagen company. In this present
business report studied about the many factors that have to include at the time of making
business strategies. Business firm use many different tools and techniques in business plans.
Volkswagen conducts an environmental audit (Acquaah, 2013). There is an importance of
stakeholders analysis and a business firm present a new business related strategy. In an
organisation, there are many roles and also responsibilities of personnel who are responsible for
strategic implementation. In this present business report also mentions about analysis an
estimation of requirement of resources for executing a new business related strategies at
workplace. It is necessary to a business firm to develop SMART goals and objectives for
company.
TASK 1
Covered in PPT
TASK 2
2.1 Strategic positioning of Volkswagen by carrying out an audit
Volkswagen is a largest automotive organisation and manufactures luxurious cars. The
main competitors of this company are Audi, Skoda, Bentley and many other cars. It provides cars
with unique and the additional features. But the main problem Si that it sells its cars to it
customers at high rate. This business firm also conducts a research programme to know about the
needs and preferences of customers (Bharadwaj and et. al., 2013). In every year, it launches a
new designer cars which attract people more. The management and employees both are working
effectively in order to achieve the business goals and objectives. At the market place, it has a
better brand image. To retain at market place, Volkswagen give its contribution in the welfare of
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society. This business firm do the SWOT (Strengths, Weaknesses, Opportunity and Threats)
analysis for carrying out an audit programme:
Strengths- Its main strength is that it has a large market share and also a good brand
image in the market. The top management of this business firm formulates effective business
strategies. To develop a positive impact on society, it conducts some social activities and give its
contribution towards the welfare of society. The strengths of this organisation are its capabilities.
Weaknesses- The disadvantage for this company is that it does not conduct high
promotion activities. This firm does not believe in giving a social message to people regarding its
cars. Its main weakness is that it does not reduce its cars costs (Burlton, 2010). This firm used an
unfocused approach.
Opportunities- Volkswagen has big and good opportunity to maximize its market growth
and revenue from conducting some effective and attracting activities related to promotion. It will
helps in enhancing the profitability of business and will also create the good brand image in the
mind of customers.
Threats- There is minimum restrictions of entry in an automotive industry because in this
industry, the competition level is high and there are large number of strong competitors at market
place.
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Illustration 1: SWOT Analysis
Source: Bisk, 2017

2.2 Environmental audit for Volkswagen
An environmental audit is helpful in knowing the effectiveness of business. In the past
2015 year, there are many problems faced by Volkswagen because it from the many cars of this
company, pollution was created and it is harmful for an environment. From this reason, the sales
and productivity of this company goes down. With the help of environmental audit, the higher
authorities of this business firm can studied about the external factors of an environment and it
will be help in making business strategies (Campbell, Edgar and Stonehouse, 2011). So, for an
environmental audit, Volkswagen can execute the PESTLE analysis:
Political- In the industry of automotive, there is minimum chances of entry in the any
other country. It operations and managed its business at world wide level. The political parties
impacts a lot on the operations and also on activities of business. From the instability of
apolitical parties, company faced many issues. The regulations and policies of every country is
different. So, from this company can not sept up its business properly in other countries.
Economic factors- In this includes cost, profit rate, demand etc. and these all factors
affects a lot on the business of Volkswagen. In market, if there are any kind of slow down, then
in this case Volkswagen's business operations will be affected.
Social factors- Society has its own rules, norms, beliefs, culture and it is necessary for
company to do its business by following them. From the social change, Volkswagen start
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Illustration 2: PESTLE analysis
Source: PESTLE Analysis, 2014

manufacture cars for middle class people. The tastes and the attitude of customers impacts on
business operations of Volkswagen. So in regards to it, cited organisations adopts some changes
to deal with any kind of social change and it concentrate on the improving its business
operations.
Technological factors- To make a business effective and also produce quality cars, it is
necessary for Volkswagen organisation to use upgrade technology. The advance technology will
be helpful in making the business advance (Casadesus-Masanell and Ricart, 2010). With the help
of this Volkswagen can make some changes in its cars and provide attractive features in its cars.
Environmental- This factors can also impacts on the activities of company. It is important
for company to do its business in ethically. Volkswagen so some activities for welfare of society.
It produces such cars which do not harm the society.
Legal factors- Under this, a business firm has to work legal and also follow the
government laws, policies, rules and regulations.
2.3 Significance of stakeholder
analysis when formulating new strategy
The stakeholders analysis is a consideration and the review of impact of shareholders on
the activities of business. Stakeholders are those people who are involve in business activities.
The stakeholders of Volkswagen are directors, creditors, suppliers, employees, society and
government. On the other hand, stakeholders analysis is a tool and technique which company
used to determine those persons who supports the activities of business. All stakeholder plays an
important and necessary role in the decision making process and in developing the new strategy.
All stakeholders are necessary in enhancing the productivity and growth of business (Chang and
Graham, 2012). It is the duty of managers of Volkswagen to do they mapping of its all
stakeholders according to their demand and also take some appropriate an effective actions. With
the help of analysis of stakeholders, Volkswagen can achieve its business objectives by
measuring the capabilities of its employees. Some importance of stakeholders analysis given
below as above:
 With the help of stakeholders analysis, business enterprise can know easily about
the current trend of market.
 It helps in executing the new business strategy.
 To gain the support from the powerful stakeholders of company.
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 Helps in maximising the satisfaction level of Volkswagen's stakeholders.
 From the stakeholders analysis, Volkswagen organisation can easily identify the
strengths and the competencies of its staff members.
 By doing the stakeholders analysis, cited business industry can set the skills of its
workers against the new strategies.
2.4 New strategy for Volkswagen
For the development of business, it is necessary to make the strategic plans on the basis
of its stakeholders. The top management of this business firm takes some relevant decision
related to business project. It is good for the stakeholders welfare (Chang and Chuang, 2011).
The main objective of every business firm is to fulfil the needs and preferences of its consumers.
Volkswagen develops it business strategies according to the stakeholders. There are many
strategies like for an instance business development, growth strategy, market development
strategy but among all Volkswagen use New product development strategy. The more focus of
this business enterprise is to increasing an efficiency of its existing products and also develop
new goods and services. For increasing the productivity of business, this company can increase
its business in to other countries or areas. To attract the users, Volkswagen manufacture new and
attractive cars at reasonable cost. In context to this, The top management of Volkswagen
develops some policies related to new product development:
 For producing new product, top management of Volkswagen has to formulate
some beneficial policies and use updated technology for increasing the quality of
manufacturing.
 Managers should increase the motivation level of its employees for enhancing
their working efficiency and from this they will give their contribution in
producing the new cars.
 It is necessary for company to manage the funds for manufacture the new
products (Cooke and Saini, 2010). So, it is necessary for company to fulfil all the
needs of its shareholders because they are the investors of company.
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TASK 3
3.1 Appropriateness of alternative
strategies relating to market
, limited growth or
retrenchment, substantive growth
Unicorn Grocery is big retail business firm and it has good market share and also growth
rate. The alternative business strategies are very helpful in resolving the problems of business
and also develop effective opportunities. The Volkswagen business organisation prepares
effective policies which are helpful in accomplishing the goals and objectives and also enhancing
the profitability of business (Ghezzi, 2013). There are some analysis of strategies given related to
retrenchment, market entry, substantive growth:
Market entry- It is an effective marketing related strategy and also helpful in developing
the market. For enhancing the market share, Volkswagen can expand its business in to new
markets at various places and from this, it can also target new people. In this, various techniques
are included such as joint venture, merger, franchising.
Substantive growth- Volkswagen wants to enhance the productivity of company. To
sustain at market place, this business firm formulates many strategies. To reduce the horizontal
cost, it is necessary to keep the vertical integration in to practice (Grover and Kohli, 2013). The
substantive growth is helpful in acquisition, merger and acquisition.
Limited growth- With the help of this Volkswagen can handle its harmful conditions of
business. So, in regards to this, Volkswagen formulated and use many different strategies. In the
situation of decreasing productivity or profitability, financial positions etc.
Retrenchment- This strategy is useful at the time of deal with the difficult situations of
business (Köseoglu and et. al. 2013). It can be execute in market if the sales of any Volkswagen
products are not much high. It is helpful in managing resources and controlling any risk.
3.2 Justification of selection of strategy
In market, the performance of Volkswagen is good but it is not succeed in satisfying the
wants and also expectations of consumers. The market share and revenue of this business
organisation is good but it does not change itself according to the current trend in market. So in
context to this, the top management of Volkswagen prepares a new development strategy to
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make according to the needs and wants of consumers. It conducts research for know about the
customer preferences. The selected strategy for the development of business is limited growth
strategy. From this, company can do its business activities and operations properly. With the
help of this strategy, the management of this enterprise can solve its business problems and
issues. For the development and productivity of business, company manufacture new car with
attractive and also unique specifications. It invests more money on manufacturing process. From
using the limited growth strategy, Volkswagen can enhance the business size and improving the
structure of its operations. With the help of this, profitability and growth of business will be
maximised.
TASK 4
4.1 Roles and responsibilities of
personnel in strategic implementation
The main and also primary responsibility of personnel is to execute business strategies at
work place in an effective manner (Martin and Rice, 2010). The top management of Volkswagen
prepares the policies and also strategies. In an organisation, personnel plays an important role in
controlling and also managing all the business activities and also operations. For maximising the
working efficiency of employees, employer of Volkswagen always motivate its staff members.
There are some roles and responsibilities of manager given below as above:
 An important role of manager is to hire and select capable candidates who can
perform job in a proper manner.
 The responsibility of personnel is to implement the policies, plans and strategies
which are developed through the top management of company.
 It is the responsibility of manager is to manage and control all the business related
activities (Mehta and Mehta, 2011). This person should focus on the development
of business.
 The role of a manager is to include staff members in formulating the policies and
in the process of decision making.
 For increasing the skills and competencies, personnel gives training to all
employees. With the help of this their performance level, motivation level and
also working efficiency will be enhanced.
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Along with these responsibilities, the main role of manager is to pass any information and
data to the operational department. At the time of executing the business strategy, it is necessary
to manager to understand benefits of new strategies and to convenience them.
4.2 Resource
requirements
for implementing a new strategy for Volkswagen
In Volkswagen, some of the resources are necessary in executing of new strategy and
these are:
Human Resources- For implementation of new business strategy successfully, Human
resource plays an important roles (Teece, 2011). Its main role is to executing the strategy and the
performance level of business. The Human Resource manager focus on the the activities of
business and also employees. For the new strategy of Volkswagen, it is important that the HR
should have technical knowledge.
Financial resources- It means that how Volkswagen business organisation manage funds
for the new business strategies for making its business effective. For implementing the new
strategies, company needs more finance and with out money Volkswagen can not implement
strategies.
Technological resources- It consists equipments, updated technology and machineries
from which Volkswagen can do its business operations properly and also manufacture attractive
car. The upgraded technology is helpful in maintaining the production class. For executing new
strategy, there will be a requirement to this business firm to adopt new technology.
Raw material- For manufacturing the cars, there will be the necessity to cited business
organisation to use good quality of raw material (Verreynne and Meyer, 2010). For this, it is
necessary to select a good supplier who supplies good quality raw material at minimum cost and
on a particular time period.
4.3 Contribution of SMART targets
to achievement of strategy
implementation
The top management of Volkswagen developed targets and it is necessary that it should
be SMART (specific, measurable, achievable, relevant and time bound). If the goal will be
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specific, then there will not be any problem to employees in achieving. The Volkswagen
business organisation has to set their targets and goals and on the basis of these, management has
to work. In relation to this, there are some SMART objectives are given below as above:
Specific- If in case, Volkswagen business organisation will set its target specific, then in
this case, it helps in achieving the organisational objectives and also helps in increasing the
profitability of business. It is good for the development of business (Oltra and Luisa Flor,
2010). If the goals will be specific, then the profit level will be increased up to 5 to 7%.
Measurable- The major aim of Volkswagen is to enhance its market share and also profit
level. It is necessary for this company that it should set its objectives measurable so that
employees can easily achieve.
Achievable- The objectives and goals which are decided by the top management of
Volkswagen should achievable (Pagani, 2013). So, that this organisation can achieve its
objectives properly.
Relevant- It is important that the goals should be relevant means have some meaning, so
that Company can settle them on the basis of business demand.
Time bound- The management of Volkswagen wants to accomplish its objectives with in
few months (Slater, Olson and Finnegan, 2011). Manager set a time period for achieving the
business objectives.
CONCLUSION
It has been concluded for the above report that company make business strategies for
development of business. For doing an environment audit, Volkswagen analyse the external
environment. In this present business report studied about the importance of stakeholders
analysis at the time of preparing new business strategy. Volkswagen makes a new product
development strategy for development of business. In this report also studies about the many
different roles and responsibility of Human Resource manager in strategic plan. This business
firm uses technological resources, raw materials, financial resources for executing the strategy.
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