Business Strategy Analysis and Recommendations for Volkswagen Group

This report provides a comprehensive analysis of Volkswagen's business strategy, encompassing an introduction to business strategy and its relevance to the automotive industry. It delves into a detailed SWOT analysis, identifying Volkswagen's strengths, weaknesses, opportunities, and threats. An environmental audit is conducted using PESTLE analysis, examining the political, economic, social, technological, environmental, and legal factors impacting the company. The significance of stakeholder analysis is discussed, emphasizing the importance of internal and external stakeholders in achieving organizational objectives. The report also proposes a new strategy for Volkswagen, focusing on sustainable mobility and addressing emission concerns. Market entry strategies, including mergers, acquisitions, and organic growth, are evaluated. The selection of a specific strategy for VWAG is then justified. The report concludes with a discussion of personnel roles and responsibilities, resource requirements, and the evaluation of SMART targets in achieving strategic goals. References are included for further research.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT............................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Analysing strategic position of Volkswagen.........................................................................1
2.2 Environment audit for Volkswagen.......................................................................................2
2.3 Significance of stakeholder analysis......................................................................................3
2.4 New strategy for Volkswagen...............................................................................................4
TASK 3............................................................................................................................................5
3.1 Market entry strategy and its implementation.......................................................................5
3.2 Selection of strategy for VWAG...........................................................................................6
TASK 4............................................................................................................................................7
4.1 Roles and responsibilities of personnel.................................................................................7
4.2 Estimation of resource requirements for implementing a new strategy................................8
4.3 Evaluation of the contribution of SMART targets to the achievement of strategy...............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy are concerned with long term direction of company. The strategy of
organisation does not only effect to environmental forces but also expectations and values of
members of organisation. A company strategy consists with competitive efforts and business
approaches to target new customers. Strategy is considered as pattern or plan which integrates
organisation goals, rules and policies in a sequence manner. Present report is based on
Volkswagen company which is largest automotive sector in UK. The aim of this company is that
to provide high quality of cars and services to customers to satisfy their requirements. Besides
this, manager have to set prices according to customer’s income so that it will easy for the, to
purchase car. In this, their goals, mission, objectives in regard to strategic planning is explained.
Along with this strategic position of company which has been carried out by them while auditing
is discussed in detail. Besides, roles and responsibilities personnel has been described at the time
of implementing new strategies. In last, SMART objectives of organisation has been evaluated in
achieving business targets.
TASK 1
Covered in PPT
1

2

3

4

5

6

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TASK 2
2.1 Analysing strategic position of Volkswagen
Manager of Volkswagen can also conduct SWOT analysis which will help them in
identifying their competitors in competitive market. This will help to company in adopting
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appropriate opportunities for providing best services to customers (Adebolu, Adeoye and
Oyetayo, 2011). Internal audit can be done with the help of this;
Strengths of Volkswagen
Well-structured umbrella brand – On of the strength of Volkswagen is it is to be
known as well-structured umbrella market. They are producing super cars as well as passenger
cars as well as bus's.
Excellent brand recognition – Brand of this company is very strong in Europe and USA
which is also helping them to make more strong position in market.
Research and development – This company is also known as using high technology
inbuilt and consumers are trusted on them for their performance. Besides this, R&D of all sun
brands are giving beyond expectation to customers.
Weaknesses
Parent brand can be strengthened – This company is investing large amount of funds
in in advertisement to build a brand for their competitors (Amit and Zott, 2012). So, this
organisation itself needs to spend more funds for creating equity for parent brand.
Weak position in India – In this country, brand position of this company is quite weak
because there are already so many competitors who are providing high quality of cars to
customers.
Opportunities
Worldwide expansion is possible – Demand or products will arise when there is rising
in GDP. There are many countries which is classified as Emerging. So, Volkswagen can tap
these emerging countries with a wide expansion of their products and services.
Modern and innovative design – Designs of cars will always crowd puller when they
are coming to auto mobiles. Therefore, other brands are launching new design of cars every
quarter to keep their brand alive.
Threats
Competition is ever increasing – The competition between organisation are increasing
day by day. So company have to always new and latest technology to introducing new cars.
Innovation is being implemented all across - Volkswagen company has to be aware
about new technologies which are available in market and ready with research and development
team to innovate or provide new cars.
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2.2 Environment audit for Volkswagen
The manager has to carry out environmental factor on regular basis to identify those
factors which are affecting to organisation objectives. For this, PESTLE analysis is conducted;
Political factor – This company have faces many political difficulties in developing their
own brand name inn other countries (Carney and et. al., 2011). Political situation of all countries
are not same. Car industry is closely related with policies which are made by government. So, it
become challenge for organisation to understand different political pressure of other countries.
Economic factor – Automobile industry is making large amount of contribution in
national income of country. Developing this kind of industries are important for emerging
economies which will give more advantage to Volkswagen. The prices of cars should be set
properly which can also focus on lower segment of market.
Social factor – Society are playing vital role in development of automobile industry. This
company is providing opportunity to people which also improves their lifestyle as well leaving
standard.
Technological factor – Volkswagen company is using high technologies in order to
manufacture different cars (Colmorn and Hülsmann, 2014). While using of good technology will
help to organisation in launching of new hi-tech cars. Without using new technology for
production, then it is not possible for organisation to gain high volume of profit.
Environmental factor - The resources which are used by organisation while
manufacturing diesel or petrol car are should be utilised in proper manner. Cited firm, is having
many plans in many countries and from these plants smoke emitted in air. It is responsibility of
manager to take care of natural environment of their plants. For example, company have to use
limited resources and get permission from US environmental protection agency because
Volkswagen had used illegal software which is chested on emission test. Through this they are
production diesel cars which is polluting more than 40 times than normal cars.
Legal factor – This company has to follow all legal requirements to provide quality of
services to customers. Through this they can also focus on many laws; such as competition,
labour, taxation and many more.
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