Business Strategy Report: Volkswagen's Organizational Audit

This report provides a comprehensive analysis of Volkswagen's business strategy. It begins with an introduction to strategic planning, including vision, mission, goals, and objectives. The report then delves into the factors considered when formulating a new strategy, such as strengths, weaknesses, competition, and current conditions, as well as techniques like market research, SWOT analysis, cost-benefit analysis, feasibility studies, and the Bowman strategy clock. Task 2 focuses on an organizational audit of Volkswagen, examining its internal and external environments, with specific attention to customer and competitor analysis. The environmental audit covers economic, technological, social, and political factors. The report also discusses the significance of stakeholder analysis and proposes a new strategy for Volkswagen. Alternative strategies are presented with justifications. The final sections outline the roles and responsibilities of personnel, required resources, and the contribution of SMART targets for implementing the new strategy, concluding with a summary of findings and recommendations.

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK -1...........................................................................................................................................3
1.1 Strategic planning..................................................................................................................3
1.2 Factors considered for formulating new strategy..................................................................4
1.3 Techniques of strategic plan..................................................................................................5
TASK -2...........................................................................................................................................5
2.1 Organisational audit of Volkswagen.....................................................................................5
2.2 Environmental audit.............................................................................................................6
2.3 Significance of stakeholder analysis....................................................................................6
2.4 New strategy..........................................................................................................................7
TASK -3...........................................................................................................................................7
3.1 Alternative strategy...............................................................................................................7
3.2 Justification...........................................................................................................................7
TASK -4...........................................................................................................................................8
4.1 Roles and Responsibilities of personnel...............................................................................8
4.2 Resources required for implementing New Strategy...........................................................8
4.3 Contribution of Smart Targets ...........................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is a plan made by the company for their efficient work in the market as
before making plan they have to analyse several factors so that they can overcome from all the
threat's and weakness..Volkswagen is a car manufacturing company deals with every factor of
the market so that they can retain for longer period in the market and will be able to achieve
more profit than others. Every strategy needs to be implemented for achieving the success in the
nearer future as implementation is the biggest task after making a plan. In simple words
strategies are the ways towards success as they analyse all the factors that affects the business in
all the possible way. Volkswagen is a leading company provide very quality product to its
customers so that they can satisfy the existing and generate more customers in the market.
TASK -1
1.1 Strategic planning
Vision. Vision. Vision is basically the ability to see and in business terms vision is used
for long run so that the particular company like Volkswagen is a car manufacturing company and
being a car manufacturing company it has a vision to achieve very popular and powerful position
in the targeted market. A vision is a description of something that is organisation corporate
culture, a business, a technology and a activity and by analysing all this a company easily retains
in the market for longer period.
Mission. Mission and Vision are in separable because they cannot work individually.
Mission and vision are like two sides of a coin as mission is very important to complete a vision.
Mission completes the vision as it has all planning treatises by implementing them as plan of
action a company can achieve its goals on time . Volkswagen has a mission of satisfying the
current and generating more customers in the targeted market (Aithal,, 2016. ) As it is a car
manufacturing company so they need to concentrate on the quality of that they are using and the
techniques of production. Volkswagen company holds very good position in the market that's
why their mission is to achieve the better from mow position in the market.
Goals. Goals is one of the most important term in setting business as without goals
business can't get established. Goals defines the definite plan of action of the company as these
includes what they want to achieve in what time and on which level. Goals decides the future of
the company as it decides its position in the market so goals is not a secondary as they should be

discussed before objectives. Volkswagen has definite goal of action as he wants to retain in the
market for longer period by achieving better position.
Objectives. Objectives are the most important term in the organisation as they include
each and every aspect of business and gives the final result. Volkswagen has a long term
objective of earning more profit by supplying quality product to the customers so that they can
satisfy them from the core (Loukis, Soto-Acosta, and Pazalos, 2013. ) . All the above including
this is very important for making new strategy as these are the basic needs of business for
formulating new strategy.
1.2 Factors considered for formulating new strategy
Strength. This is the most and first discussed factors in strategic plan as it defines the
ability and the quality of the services provided by the company to their existing customers so that
thy can retain in the market and match the market level by fighting competition to maximise
efficiency and brings effectiveness in the company. The strength of Volkswagen is that they have
very strong and wide network in the market and this strong network is helping then in making
new strategies so that they can be on top in the coming time.
Weakness. Each and every company has some kind of weakness which leads them down
in some way or the other. Volkswagen is a car manufacturing company that's why it is more
dependent on its technology department and if the technology department is not efficient then
they have to bear the consequences so they need to make new strategy for efficiency in their
company.
Competition. Competition is there in every field no matter you are in what team so if
company wants to survive in the market then he need to fight the competition by analysing all
the factors that are affecting the company's environment. A company needs to prepare a detailed
report of his and his competitors company in the targeted market so that it can take corrective
measures accordingly.
Current condition. It is that term which gives reality check to the companies about their
condition in the market. Volkswagen company finds its current position in the market by
preparing complete report of each and every aspect after knowing the current condition a
company knows that what are the corrective measures to be taken by him on what basis and on
what level (Wimbsberger, 2012.) .

1.3 Techniques of strategic plan
Techniques are kind of method that are performed by companies to formulate overall
mission and goals Some techniques are as follows :
Market Research. Market research is basically a process that collects all the information
all together so that this data can help company to grow and expand in a certain market. Market
research shows the exact position of the company to help managers so that they can prepare a
healthy mission and vision in the competitive market. Volkswagen do market research to
compete the competitors and survive for long run in run market..
SWOT Analysis. SWOT Analysis is a strategic planning that consist of Strength,
Weakness, Opportunity and Threats that business faces from day one to end. Volkswagen
analyse all these factors to make new strategy for the growth and upliftment of the company.
Cost -Benefit analysis. This analysis is very common in terms of business planning as
this helps in assembling the cost and potential analysis of the company. By preparing this
analysis the company can find its total cost of production and reaming fund is a profit for them
(Bonchi, Castillo, Gionis,and Jaimes, 2011.) . Volkswagen company prepare cost benefit
analysis for finding their net profit in the financial year.
Feasibility study. This study is done by the company to know about the profit earned
from a particular project. Volkswagen does this study for knowing their actual income and
expenses occurred during financial year. This helps them in measuring all factors that are
affecting then positively and negatively so that they can take corrective actions on them.
Bowman strategy clock is a model that is used by the management in the marketing just to
analyse the competitive position of the company in the market. According to the above the
strategic position of the Volkswagen is very high if we compare with the competitors as this
model is used in marketing of the company after analysing all the factors that may affect the
business so that they can take corrective measures.
TASK -2
2.1 Organisational audit of Volkswagen
Organisational audit is a audit that is done by the company to analyse all the crucial
factors that are affecting business in all the possible way. Organisational audit can only be done

after analysing all the strength, weakness, opportunity and threat of the company so that they can
take corrective action against them. There are only two factors that are essential for
organisational audit so that company can make new strategies and these are customers and
competitors (Campbell,, Edgar,. and Stonehouse, 2011) . Customers are the person who buys the
product of that company and without customers no company can ever run as these are the people
without which a company cannot survive in the market. Volkswagen has very strong chain of
customers all around the world and that's why they are making new strategies so that they can
generate more customers with the help of existing customers. Competitor is the another factor of
organisational audit as this can only be done after analysing competitors strength, weakness,
opportunity and threat as these factor can help the company to grow more than others in the
market (Whyte, and Pretorius, 2012, ). Volkswagen has a strongest base as they know very much
about their competitors weakness and threats and by attacking on them in a healthy way they are
maintaining their position in the market. Organisational environment is an internal environment
as it includes all the internal factor of the organisation that may affect the business thoroughly.
Internal environment includes all the factors that are necessary for achieving organisational goals
on time. Internal environment is that environment that is made up by all the departments so that
they can achieve the efficiencies in operations. External environment is that environment that
includes those factors which can be controlled only by definite plan of action.
Organisational audit is all about analysing all the factors of the business so if some
threats are there then they can take the corrective measures accordingly. Factors can be of many
types and may affect the business in al the way possible. Volkswagen does its organisational;
ausit just tto know the efficiency level of the operations that they are holding as if there is
something to improve then they can take the corrective measures accordingly.
2.2 Environmental audit
Environmental audit is also called the external audit of the company as it includes all the
external factors that are affecting business. This is done to identify the opportunities occurring
for a firm and threats that should be avoided by them. New strategies should be developed by the
company to find these factors so that they can prepare their self far all possible situation
occurred. There are only two forces that are affecting the business and they are economic forces
and technological forces.

Economic forces are those which affect the business through economic factors like
demand and supply,cost of the product etc. Volkswagen manages all these factors as by
managing this they are achieving efficiencies in their operations and this is helping them
to maintain their position in the market.
Technological forces are those force that is related to the technology that have been used
by the company in producing their product at the best possible level and in the best
possible way. Volkswagen company is currently using the best technologies of
production in the market so that they can provide the best to their existing and generate
more new customers in the market. There are many factors are as follows :
Social Factor. Social factor affects the environment of the organisation by including all the social
issues that may affect the business from the core. Volkswagen is the company that is totally
attached to the society as it gives priority to the public by listening to them.
Political factor. These are the factors which are politically connected to the company in all the
possible way. Volkswagen has very strong political base because they have very strong
connections all around the world.
Economic factor. These factors includes all the factors of the economy that may affect the
business like demand and supply, cost etc. Volkswagen company is in a very god condition in
the market as their net value is very high.
2.3 Significance of stakeholder analysis
Stakeholders are those people support company to grow and expand to reach the
maximum level of efficiency. Stakeholder analysis is a process of taking decision so that they
can prepare appropriate plan of action. Stakeholder decides the future of the company as many
decisions are taken by them for growth and upliftment of a company. They hold very powerful
position in the company and no single new strategies can be made without them. Their consent is
needed on each and every project as they support financially as well as morally. They play
different roles according to their position in the department in the company. Stakeholder analysis
is very important as this analysis decides the position of the company in the market. Volkswagen
company prepare stakeholder analysis so that they can take the best possible decision for their
business. By this analysis they can retain at the best position in the market by earning more profit
than others.

The stakeholder analysis is needed by the companies as they support the companies in all
the way possible as they are the only one who have power with them so that they can contribute
in the growth and expansion of the business. For example : The creditor of the company is also a
stake holder and if he provides funds that is considered to be as help as without this the company
cannot grow and expand in the market that's why the stake holder analysis is needed in the
company so that they can retain in the market for longer period.
2.4 New strategy
New strategy should be made after analysing all the factors that are affecting the
particular business. New strategy should be made according to the field of the business so that a
company can retain for a longer period in the market and earn more profit than others.
Volkswagen is a car manufacturing company that's why they are making new strategy for growth
and expansion of their company by adopting new technologies of production and by making
customers satisfied according to their needs and demand in the market (Snipes, 2016.) . New
strategy help business to grow and expand in the best way possible.
There are many strategies that has to be made by the company so that they can retain in
the market by earning than others. Strategies are made according to needs of the departments as
their work and requirement are different from each other. For example : Production department
needs new strategy so that they can bring efficiency like maintain resource to avoid wastage and
produce more whereas the marketing department adopts new and innovative way to promote the
products of the company.
TASK -3
3.1 Alternative strategy
Alternative strategies are made by the companies so that they can overcome al the
weakness and threats. Alternative strategies help companies as they are backup plan for the
companies and many times prepare them for the upcoming storm. This indicates the many like
market entry, substantive growth, limited growth and retrenchment. Market entry gives the hint
as the company enters the market its competition begins and competitors does not leave a single
chance of defeating them . Volkswagen at the moment they entered the market they get
recognition for their quality of work they are serving to their customers. Substantive growth is
that growth that is achieved by the company time to time this is also known as the consistent

growth of the company (Len, 2013. ) . This growth chart is upward sloping as this is attained by
the company time to time. Volkswagen has shown consist growth among all in the market as
they are giving priority to their customers in each and every aspect. Limited growth this is a kind
of drawback for a company as is for showing that the company has stopped growing after
coming to a point (Rong, 2014.) . Volkswagen does not come under this category as it takes all
the corrective measures for all the upcoming threats and also made ready the backup plan.
3.2 Justification
All things need justification in terms of business as each factor in a business is uncertain
or unpredictable which cannot get controlled by anyone in the company so for this company
should made certain strategy to run business successfully in the market. Volkswagen adopts or
made different strategies for different plans of action so that they can maintain their position and
retain in the market for longer run by earning more profit than others. Strategies should made
according to the needs of the company in the market (Yuan,, 2010.) . There are many types of
strategies like completing work on tine, profit earning and achieving organisational objectives on
the basis of effective work force and efficiency in the operations of the company. Strategies
should bring positive results for the company because strategies decides the future position of
the company after considering all the crucial factors then only new strategies should me made
that may affect the company (Zhang, Song, and Ren. 2014. ) . All the possible analysis should be
done before formation of strategy of company because these analysis points all the possible
factors that should be considered by the company as their priority.
TASK -4
4.1 Roles and Responsibilities of personnel
Roles and responsibilities of a personnel is very big as the whole duty is on them and if
the implementation goes wrong than they are the only responsible for them. Strategy
implementation includes all what to do, how to do and when to do as these things decides the
future of the project. Implementation by a personnel can only be done when he communicates
with all side lining all the differences with others. Implementation can only be possible when
there is appropriate flow of information is there between the authorities. The roles and
responsibilities are as follows :

Personnel should be focused with his work as it is his priority at that time. He should be
communicated with all to achieve efficiencies in operation, he should follow the rules and
regulation properly, etc.
4.2 Resources required for implementing New Strategy
1. Group procurement – The key element for any strategy is the active role played at the
start of any project. As it is the only way to manage cost,achieve price leadership in new
technologies and ensure market driven concepts. Hence the procurement should be based on
highly qualified and motivated employees with creativity and a good state of art.
2. Team of professional Researchers and Developers - To implement any strategy or
business plan every company requires a professional and efficient team of researchers and
developers to make the best use of technologies to get proper and realistic market conditions,
Competitors and all the other factors that can affect the new business strategy that the company
is planning to implement
3. Financial resources – Volkswagen needs to find out new financial sources in order to
implement any business plan or strategy (Antlová,,Langer Mrázek,and Rozmajzl,.) . For example
– If the company needs to spread its existence in the markets it needs to open the stores in
different parts where they do not exists already. And it requires a lot of fund hence it needs some
financial partners so that it will be easy to implement the plan or strategy of reaching customers
in different regions of the market.
4.3 Contribution of Smart Targets
Specific Target for Volkswagen is to avoid the brand damage especially in The U.S. this
results in achieving customer satisfaction. And this also make Volkswagen to do anything in
their power to ensure any strategy goes in favour to them and attracting new customers as well as
satisfying the older ones (Kalogiratou,2013.) . For example if the company needs to increase it
sales the target should be specific like 10% . and the strategies should be planned by keeping the
specific target in mind
Measurable objectives also contribute to the achieve the strategy implementation as if the
objectives are measurable the company can estimate the time , money and efforts required to get
the strategy implemented and that too with effectiveness and efficiently. For example If
Volkswagen needs to boost its appearance on internet or social media and launches a new video
for one of its products . Measuring the likes , comments or responses helps in achieving the

results and future business plans. For example as we took a target of increasing sales by 10% and
it is measurable as we cam review the achievement and work accordingly
Achievement of the targets is important any company can not make any strategy or
business plan which not achievable. Volkswagen needs to make strategies which are achievable
like building trust when they broke the laws in U.S. And it was their priority to regain the trust
and hearts of customers. As the example of increasing the sales by 10% is achievable if the
company targets 50% increase in sales at a same point its near to impossible.
The targets should be realistic for example Volkswagen can make a plan or strategy to
compete to Honda or skoda but competing with big brands like BMW or Audi is not realistic
because its not possible (Huan,, 2014) . For example increasing sales by 10% is a realistic target
and can be achieved through some efforts but increasing sales to 50% looks a unreal target as its
impossible to achieve in one go.
Time scale means that the tenure to achieve a target should be fixed. And the company
should try to achieve the target or goal within a fix time period as planned. For example
increasing sales by 10% in 6 months .
There are many smart targets in the company as they are the factors that will help the
company to grow and expand in the broader way. They are measurable objectives that help the
company to achieve efficiency so that they can retain in the market for longer period. Smart
targets are the new tools and techniques that Will help in maintaining consistency.
CONCLUSION
There are many types of business strategy that should be followed by a company to
achieve efficiency in its operations and maximise profit than others. Volkswagen business
strategy is very clear as their planning is definite and the possible results of that are mostly
positive (Qin, Atkins and Yu, , 2013.) . They have very clear vision and mission so that they can
achieve their goals and objective on time. Many factors have been considered by them so that
they can retain for a long tun in the market and will be able to earn more profit than others. Many
audits also performed by them so that they can analyse all the factors in and out.

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