Strategic Positioning and Environmental Audit of Volkswagen AG

This report provides a comprehensive analysis of Volkswagen's business strategy, addressing the challenges faced after the global emission scandal. It begins with an introduction to business strategy and its importance, followed by an analysis of Volkswagen's strategic positioning, including a SWOT analysis that highlights its strengths and weaknesses, such as its diverse automotive brands and global presence versus the impact of the emissions scandal. The report then conducts an environmental audit using PESTLE analysis to examine the political, economic, social, technological, legal, and environmental factors affecting the company. It emphasizes the significance of stakeholder analysis in formulating a new strategy and presents a detailed framework for Volkswagen, including future goals, objectives, market segmentation, and a marketing mix. The report concludes with an analysis of alternative strategies and the justification for the proposed approach, covering the roles and responsibilities of personnel, resource requirements, and the evaluation of SMART targets. The aim is to help Volkswagen regain market trust and improve its brand image.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Cover in power point presentation.........................................................................................3
TASK 2............................................................................................................................................3
2.1 Analysing the strategic positioning of VG AG................................................................3
2.2 Environmental Audit........................................................................................................4
2.3 Significance of stakeholder analysis................................................................................5
2.4 Present a new strategy for VG AG...................................................................................6
TASK 3............................................................................................................................................8
3.1 Analysing appropriateness of alternative strategies.........................................................8
3.2 Justification of strategy.....................................................................................................8
TASK 4............................................................................................................................................9
4.1 Roles and responsibilities of personnel at VW.................................................................9
4.2 Estimated resource requirements for implementing strategy.........................................10
4.3 Evaluation of contribution of SMART targets...............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business is define as core aspect which get operated with differ kind of strategies in
determine manner. It is really essential to craft such kind of framework which enable and
facilitate to draw better and signified things in frame of manner. Thus, business strategy is
classified as such consideration which enable and support in performing each and every
consideration of operations better and in appropriate manner. This project is based on
Volkswagen which is one of famous automotive organisation in the world but after global
emission scandal there sales get impacted most. Thus, after this aspect, their sales get reduce and
for that they craft certain number of strategies in order to deal with them better. This project
involves about understanding of the process of strategic planning so that better and define
outcome would get assess properly. Moreover, to deal with changes, a new and appropriate
strategy need to crafted and formulated with perfect evaluation of them. Thus, once such strategy
get evaluated then it need to implement in define and determine manner.
TASK 1
Cover in power point presentation
TASK 2
2.1 Analysing the strategic positioning of VG AG
Strategic positioning is define as the procedure in which organizations perform unexpected
exercises in comparison to its rivals or same exercises in an alternate way. This encourages them
in turning into an unrivalled entertainer in the market. Volkswagen is an automotive organization
that is effectively offering its different brands like Bently, Bugatti, Audi , Porsche and so on they
are working in excess of 150 nations and they are having their two noteworthy ventures in china
as well. In request to direct an organisational review, the organization should do SWOT
investigation in order to dissect the advantages and disadvantages of the business. The SWOT
analysis of Volkswagen is as follows -
STRENGTHS
 Volkswagen are having an extensive
variety of autos that are giving clients
enough alternatives to look over.
WEAKNESSES
 There was a feeble point that was
looked by the organization in which 5
million vehicles were come back to the

 Their mark presence over the world is
extremely powerful as compared with
other automotive venture.
organization
 They are having vast rivalry from
alternate brands in the market who are
prepared to take the edge possessed by
Volkswagen.
OPPORTUNITIES
 They are having favourable position
since now-r-days buying of an
automobile is expanding in the
market as they are viewed as the need
now.
 The brands related to it is enjoyed all
around so they have a chance to open
their stores at those spots where they
are absent.
THREATS
 In light of an issue in Volkswagen, in
excess of 5 million autos were come
back to the organization so it made a
risk to the organization as their image
notoriety will be harmed severely.
 An ever-increasing number of
organizations are entering in this part so
the opposition will increment just and
won't diminish.
2.2 Environmental Audit
According to the perspectives of US Environmental insurance, Volkswagen is offering autos
which are delivering 40 times more contamination than permitted. Along these lines, according
to the administration orders they need to bring back their 482000 autos with the goal that no
further autos would be sold by the organization having this imperfection. In this way, if these
autos would be sold than it would be extremely risky for the people and the earth also. In this
way, so as to take care of this issue, the key arranging chief of the organization will do condition
review with the goal that they can make a positive picture of the organization in the market by
and by. So to perform Environmental review, PESTLE examination should be led which is as per
the following:
1. POLITICAL – Volkswagen can be profited in this part as they need to pay less duties
and charges since they are working in car area. There are different markdown strategies
accessible that is urging individuals to purchase their autos.

2. ECONOMICAL – The referred to an organization is having an expanded business and is
additionally going to actualize far-reaching approach which will enhance its method for
working.
3. SOCIAL – according to the insights one might say that individuals living in the UK are
more defensive towards condition so the referred to an organization should make a point
to create products that are condition cordial.
4. TECHNOLOGICAL – Volkswagen is utilizing innovation in its vehicles in order to give
them a cutting edge and inventive look however it can be in some cases unsafe for the
earth additionally so organization ought to be certain that it won't cause much
contamination and after that lone do such gigantic venture.
5. LEGAL – It comprises of plans and strategies that are influencing the business activities.
If there should arise an occurrence of referred to an organization, they should ensure that
they are following every one of the approaches made by the government.
6. ENVIRONMENTAL – They should make their items that are condition amicable with
the goal that the general population who are utilizing it are protected and sound thus will
be the earth.
2.3 Significance of stakeholder analysis
Stakeholders are those people or gathering or association that is engaged with the
association in a few or the other way (Jocovic and et. al., 2014). They can be as investors,
providers, chiefs, banks and so on. A partner investigation can be characterized as a method in
which desires, positions, and enthusiasm of each partner are known while executing other
techniques. It essentially indicates how unique partners are influenced by organization extends,
their advance and productivity. The significance of partner investigation while planning another
technique are -
• An organization gets imperative conclusions from its partners
• Some intense partners are a decent help to the organization
• They help in understanding individuals' response in their organizations.
Figuring the business procedures will help the organization in accomplishing both long
haul and here and now destinations in the organization however it is just conceivable if its
execution is done well. This is essential for those sort of organizations who are thinking to grow
their business in new territories whether it is national or global (Köseoglu and et. al., 2013).

In Volkswagen, the necessities and desires of partners are kept on top since they feel that it
is critical for the achievement of the organization. Partner examination is vital in this
organization as they go about as an emotionally supportive network for actualizing the tasks. In
this occasionally a couple of partners are more engaged in executing the thoughts and some are
not associated with any movement so this makes a distinction. It is prescribed to the
administration of the organization that they need to counsel a couple of specialists before
executing the venture and if the administration will get this guidance from the partners it then it
will be useful for the organization.
2.4 Present a new strategy for VG AG
Making a business procedure is essential for the organization as it causes in offering
headings to the representatives to do their work in like manner. In the event that it is executed
right, at that point it will profit the organization and increment its benefits and efficiency both.
The new systems that will be planned by the best level administration of the organization will
help them in achieving their destinations all the more intently.
Organization is advised to make another system on the grounds that the brand picture of
organization is annihilated after the discharge outrage. So the organization should a powerful
which will help them in picking up a similar esteem and trust of the clients which they were
accepting prior.
In their new methodology, they should endeavour to make their items condition
benevolent with the goal that clients are pulled in towards it (Martin and Rice, 2010). They ought
to likewise get fitting changes their plans and model so that through along these lines
additionally they will have the capacity to draw in an ever increasing number of clients.
Keeping in mind the end goal to make another procedure for Volkswagen, it is essential
to comprehend its vision, mission and objectives. Along these lines, it has been examined as:-
Future goals:
• Improving the characteristics of the items
• Increasing the deals in the given time frame.
• Reduction underway cost.
Objectives:-

The organization means to cover the market zone of autos of whole world and at display they are
having their stores in 153 nations. They are having different fruitful brands joined to it like Audi,
Bugatti, Bentley and so on.
Objective or target -
The organization is intending to receive fetched initiative methodology so they can accomplish
upper hand in the market. As far as possible set to accomplish this point is till December 2020.
Market Segmentation:
They have set the youthful populace as their objective clients on the grounds that their
affection for autos is huge thus risks for development is additionally solid. The objective market
can be arranged in different portions:-
• Psychographic-It is as indicated by the wage gathering and the way of life of the
clients.
• Demographic: - This is according to the sex, religion, age of the clients.
• Geographic: - It relies on the sorts of city the client is living and its structure too.
Marketing mix for Volkswagen
These are a different controllable instrument which is utilized by the association to impact
the interest for the item in the concerned market.
1. Products: Products are the yield of the organization which is accessible to prospects.
Vodafone assemble satisfies assortment of portability needs of the general population.
Cases: Polo, Jetta,
2. Price: it is sum to be paid to profit the merchandise of the organization. The differentiated
arrangement of the organization charges as per its write and nature of administrations.
3. Place: It is the channel of appropriation of the organization's items and administrations.
This gathering is the greatest auto creator on the planet and its tasks are completed in
relatively major developing countries.
4. Promotion: the organization utilizes every single real device of promoting of its items.
This association have as of late wandered into advanced advertising, home media and
web-based social networking showcasing systems.

TASK 3
3.1 Analysing appropriateness of alternative strategies
The different techniques that are utilized by administration of Volkswagen are likewise
exceptionally supportive to them in detailing the plans and arrangements which are extremely
gainful in organization's tasks. All these are helping the organization in their development and
improvement in the market. Alternate systems are -
Sustainable development – This referred to organization should influence vital in which they
should keep the costs of the vehicle low with the goal that an ever increasing number of clients
are pulled in towards it (Peteraf, Gamble and Thompson Jr, 2014). This will help them in holding
their old clients and furthermore making new one effortlessly.
Market entry – Company should endeavour to go into new markets in light of the fact that
through this exclusive they will have the capacity to keep up an ever increasing number of clients
and doing this in another market region will be simple.
Limited growth strategy – In this technique, the referred to organization will go into a joint
wander with different organizations in light of low supports and improve the execution.
Retrenchment – This methodology is embraced by the organization when they are confronting
misfortunes in the organization and for recouping every one of the obligations they should offer
every one of their advantages.
3.2 Justification of strategy
One of the best and viable methodology will be just chosen by the organization in order
to end up effective in the market. There are different methodologies that are connected to
Volkswagen keeping in mind the end goal to enhance its execution in the market. They ought to
incorporate some new highlights in their autos to have some effect from alternate autos show
(Scholes, 2015).
The system that will be most appropriate to the organization will be the market section
technique on the grounds that here, the organization is having more alternative to assemble more
clients and here there won't be any issue of the brand picture likewise as the organization will get
the chance to make a fresh out of the box new picture before clients of that zone. The
organization's cap will utilize this system will increase high upper hand in the market and this
will help them in expanding their pieces of the pie.

The referred to organization needs to accomplish all the more arranging to go into new
markets and after that focusing on the clients. Organization will pick their objective clients prior
just i.e. while arranging with the goal that the time would not get squander further.
TASK 4
4.1 Roles and responsibilities of personnel at VW
At the point when an organization intends to execute a strategy, at that point it isn't set up
by the sole individual. There is diligent work and mind of such a large number of individuals
behind it (Teece, 2010). There are such a large number of individuals who are trying genuine
endeavors to make a technique compelling. Thus, the co0mpany expects bolster from every one
of the representatives and staff keeping in mind the end goal to execute the system effectively.
The parts and obligations of faculty who are associated with this technique execution are -
PERSONNEL ROLES AND RESPONSIBILITIES
Top management They are the ones who are exclusively in
charge of making new systems and plans to
accomplish development and advancement.
They are likewise giving preparing to
representatives with the goal that they can
work successfully.
Executive management The organization plans to make their senior
supervisors more capable so they can help the
best level administration in planning
procedures which are suitable for the
organization.
Engineers personnel The part which these individuals play in the
organization is extremely successful as they are
the special case who helps the other
organization in settling on which system is best
for the organization and will profit the
organization over the long course.

4.2 Estimated resource requirements for implementing strategy
While executing the operations, Volkswagen will require such a vast number of aspects
which will help them in actualizing the strategies effectively. These assets have accumulated the
organization through different means and are being used successfully and proficiently. In the
event that the organization will utilize their consideration and factors viable then they will have
the capacity to accomplish throughout the entire the term and here and now objectives of the
organization.
The referred to organization ought to choose a gauge ahead of time just in which they will
incorporate that how much human asset will be required by them for defining and actualizing the
system in the market (Tsamenyi, Sahadev and Qiao, 2011). Alongside this, there will likewise be
a talk on the assets that are included by the administration while making this system. So it can be
expected that the organization will utilize both physical assets and in addition money related
assets as these both are extremely basic for the organization. Physical assets incorporate plant
and apparatus and monetary assets cover the cash related factors in the organization.
4.3 Evaluation of contribution of SMART targets
To accomplish the key execution in Volkswagen, the managers need to confront different
sorts of troubles while working in this kind of business condition. They ought to guarantee that
the objectives arranged by them should be shrewd and solid. This will help them in
accomplishing high piece of the work and development. The referred to organization should
actualize different sorts of plans and strategies in order to enhance their execution in the market
and build up the abilities and learning of representatives too (Woodcock, Green and Starkey,
2011).
SMART target define and includes certain number of things for Volkswagen which stated
as follow:
1. Specific – the organization should focus to convey just great merchandise in the
market to the clients and should deal with the earth too while making their items.
2. Measurable - the objectives of the organization ought to be estimated regarding no.
or then again figures like in the event of a referred to organization, their development
can be estimated regarding no. of autos sold by them.

3. Attainable – The objectives set ought to be achievable, all things considered, and not
simply chose by intuition without starting it for all intents and purposes.
4. Relevant - the objectives and goals ought to be applicable according to the dreams
and mission of the organization
5. Time-based – The time designated to every single movement ought to be sufficient to
finish it inside time (Acquaah, 2013).
CONCLUSION
It get concluded from the project that business task would not get perform better without
crafting any strategy or strategic planning. It is really essential to draw certain plans and
procedure which enable in managing differ number of operations. For managing changes and
negative influences which arise in business environment, these strategies are helpful. Thus, with
such aspect, strategic planning understanding is essential and thus, better and new action plan get
done and perform. On the basis of new strategy, a better one get selected which would perform
properly so that each and every assessment get done in determined and define manner of
reference.

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