Business Strategy and Strategic Planning: Volkswagen Report Analysis

This report provides a comprehensive analysis of Volkswagen's business strategy. It begins with an introduction to business strategy and its importance, followed by an examination of Volkswagen's strategic positioning through a value chain and SWOT analysis. The report then delves into an environmental audit using PESTLE analysis, highlighting the political, economic, social, technological, environmental, and legal factors affecting the company. The significance of stakeholder analysis in strategy development is assessed, followed by the formulation of a new strategy, including goals, objectives, and marketing mix. Alternative strategies related to market entry, sustainable, and limited growth are discussed, and a suitable strategy is selected. The roles and responsibilities of personnel in strategy execution are outlined, alongside resource requirements and the application of SMART targets. The report concludes with a summary of the findings and provides references to support the analysis.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1,1.2 and 1.3.............................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Strategic positioning of organisation audit...........................................................................1
2.2 Environmental audit of Volkswagen.....................................................................................2
2.3 Importance of stakeholder analysis when strategy development..........................................3
2.4 New strategy for organisation...............................................................................................4
3.1 Alternative strategies related to market entry, sustainable and limited growth....................5
3.2 Selection of strategy..............................................................................................................6
4.1 Roles and responsibilities of personnel charged with strategy execution.............................6
4.2 Resources requirement for executing a new strategy for organisation.................................7
4.3 SMART targets in business strategy.....................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is an important factor of every organisation and it assist company in
achieving desired goals and objectives. This help in improving performance of all business
operations and activities within an organisation. It aid company in examining various department
decision that are help in achieving specific task in set time period. Management take decision
about business strategy and planning which is important element of the firm. This is complex
process and there is no guarantee for this success after implement such strategy. The both
internal and external factors are liable for performance and functions of organisation.
Volkswagen is a multinational car manufacturing company (Scholes, 2015). Its headquarter is
located in Wolfs-burg, Germany. It is international product brand which provide best car features
or designs to their clients or customers. But now they break some legal environmental law that
harm its image of brand in the country. Recently they requires to create business strategy which
will rendered path that may be followed for reaching growth while minimise resource process.
There are various techniques or tools which are used in this report and they will used for
increasing growth and development.
TASK 1
1.1,1.2 and 1.3
Covered in PPT
TASK 2
2.1 Strategic positioning of organisation audit
Volkswagen use value chain management which assist in functioning business operations
and performance of company. The investor should be look out the factors of such elements. Firm
need to examine input and output process which can be examined in proper manner (Teece,
2010). The sales and revenue of marketing activities should be analyse in effective way.
SWOT analysis- This is the factor which assist company in identifying strength,
weakness, opportunities and threats for evaluate growth in market. It help in reducing future
errors and they requires to utilise achievable improvement and performance. The swot analysis
of Volkswagen are as under:
Strength Weakness
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 It is one of the major car manufacturing
company in the country.
 It also categorize their function which
supply around 13 brand of cars firm
that involves Audi, Bentley and others.
 They can modify and update
technologies which enhance growth
and development.
 It has more then 350000 employees
who work in organisation.
 Company has limited market share
 There are huge competitors who have
similar type of products.
 Due to scandal brand image is totally
damage in marketplace.
Opportunities
 Organisation can expand their business
area in other location.
 They need to adopt new features and
models products for customers.
 Need to build relationship with other
manufacturing companies.
Threats
 Increase cost of raw material
 Environmental act can alter entire
market of firm
 Rapid change of technologies are
enhance cost of company
 The government ban large firm like
Volkswagen for protecting local
manufacture in market.
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2.2 Environmental audit of Volkswagen
The company analyse pestle analysis so they can identify the external factors of business
environment which are discussed as under:
(Source: PESTLE analysis, 2017)
 Political factor- All political elements directly affects business operations and its
developing rules or regulations. If government change any system then firm need to
follows their instructions with effective manner.
 Economical factor- In UK, if any change in taxation policy of government than its
impact provides on business activities and functions. The firm need to modify their
policies according to them.
 Social factor- This is used for growth and development of country population.
Volkswagen maintain culture and social factors in an organisation. It s responsibility of
company to mange customer services, products and maintenance of technologies.
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Illustration 1: PESTLE Analysis,2017

 Technological factor- Organisation need to adopt new technologies and methods which
assist in increasing sale of goods and services in market. It also aid in attracting
customers towards the innovative products.
 Environmental factor- Company should reduce wastage of material during the process
of production operation of goods (Bharadwaj and et. al., 2013). It is important factor to
enhance profitability and productivity in the firm.
 Legal factor- Government introduce some rules, plans, policies which should be
followed by every company. This factor directly affects business activities and regulated
rules which are manage by managers.
2.3 Importance of stakeholder analysis when strategy development
The top management of Volkswagen company will execute plans and strategy in market.
The stakeholder analyse need, interest, demand and positioning of strategy of business operation.
This examine the responsibility of stakeholder and which need to be operate activity and function
of organisation. Stakeholder is a person who are directly or indirectly connected with company
and also they take active part in whole management activities that includes investors, owners,
sponsors and employers. Leader of firm can increase combined revenue of the company by using
different strategies plans which is essential for organisation. The employees are implement
strategies and also provides expected salary with good working environment. There are some key
members who can increase profit and maximise level in effectively and efficiently. There are
different elements that assist in raising benefits of public, consumers, sponsors, suppliers and
government.
This analysis build strong relationship with stakeholder which develop supportive work
environment of Volkswagen (Astrachan, 2010). The stakeholder directly affects company
decision and its damage whole process of business operations. They build scheme and execute
some pans so it also create a major impact on common people. Firm should analyse wants and
demand which help in producing work and make innovative strategic idea which assist in
determining limits of organisation and process the decision making activity in effective manner.
2.4 New strategy for organisation
It is essential for company to evaluate required aims, objectives, techniques and methods
of Volkswagen. This process will assist in developing new strategies for the enterprise.
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Goals- The main aim of company is to make proper sale and improve auto-mobile so
they can contend with their rivals in marketplace. They also build reputation among customers.
Objectives-
 To became famous in auto-mobile sector
 To modify features of car
 To increase sale by attracting customers
Strategy- Their main aim is to became one of the leading company in auto-mobile
industry and set target till 2025.
Tactics- They need to promote the company products by using different strategies and
adopt some medium of advertising such as radio, television, newspaper, magazines and books.
The firm require to attracts large market area by using various tools of marketing mix.
Target market- The company should set their target market and customers which help in
increasing sale of goods or services (Meskendahl, 2010). Firm can classify customers areas
which are as follows:
 Demographic- It is the segment which is based on age, gender, caste, religion and young
people is the main target of company.
 Psycho graphic- According to the income group and living standard of customers, they
categorise rich and middle class people.
 Geographic- It is that area of city where huge and different kind of people are live and
organisation can divide their target customers in that.
Marketing mix- It is that factor which affects sale of product in market and other
essential components which required for the growth. The Volkswagen marketing mix are as
under:
Place- Company need to enlarge their enterprise in more countries such as China, India,
USA, Indonesia, Germany and many other. They should open new stores in various locations
which enhance their profit.
Product- Firm need to change their good design, features and innovate their model for
the customers. Such as SUV, MPV, sedan and many more. They should categorise their products
that includes dual fuel cars, hybrid vehicle and electrical appearances required to modify.
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Price- This is difficult term in which company tries to make low price product which
attracts large number of buyers. They should prefer quality of goods after focus on rate of
commodity or services.
Promotion- An organisation need to adopt new medium of promotion activities such as
newspaper, magazines, books, radio, templates and Boucher (Woodcock, Green and Starkey,
2011). These assist in aware about new products to the potential customers. By using some
methods it help in attracting more people towards innovative and new launching commodity.
3.1 Alternative strategies related to market entry, sustainable and limited growth
The strategies assist in managing business operation and functions of organisation in
efficient manner. Volkswagen is a multinational company which produce auto-mobile and
provide various services in global areas. They also develop alternative strategies by which firm
can face upcoming competitions of market.
 Market entry- Company can adopt this strategy for easily enter in target market and
attracts more customers. In this, they can earn profit in high amount and also expand their
business in other places. They can establish more stores in the international market.
 Retrenchment- This strategy is used for managing all functions of organisation. It states
that weak company have to refund all liability and close the business. They sell all assets
and exit the firm. This is not suitable strategy for Volkswagen.
 Sustainable growth- The company should maintain price at vertically and horizontally
in the market (Montgomery, 2011). They can use cheap and lower quality products which
help them in increasing their income.
 Limited growth strategies- It is that strategy that is used by organisation which have not
much resources for development. This will useful for growth which reduce consumption
of resources. In this strategies company does not spend high amount but only provide
partial money in the market.
It is the suitable strategy for Volkswagen because they ensure that all functions are keep running
when cost of production is minimised.
3.2 Selection of strategy
The study of Volkswagen is already examine all market situation of different market
companies in various markets (SWOT Analysis. 2017). The improvement rate is very fast since
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last time period and company will work on modify cars features in effective manner. Some of the
strategies which help in appropriate ways are as under:
 Flexible- This is a strategy which promote Volkswagen products or services and it is
feasible for development of whole company functions. It has some positive point of view
and also negative views which is appropriate and changeable for environmental market
position.
 Reliable- It is that strategies which use effective planning and budgeting of an
organisation. The company set goals and objectives which are necessary for their growth
and enhance sale of goods or commodities (Campbell, Edgar and Stonehouse, 2011).
The tools of marketing mix is help in improvising business functions and operations.
 Sustainable- The planning and implementation strategy help firm in sustain the market
area. They develop innovative products which attracts more customers and build strong
image in the mind of buyers.
The limited growth should be adopted by Volkswagen and it is useful for minimise cost
of functions and allow managers to ethane production at same time period. It assist in holding its
abilities and increase its capabilities.
4.1 Roles and responsibilities of personnel charged with strategy execution
The company need to consider the significant of actual process of strategies
implementation. The role of personnel is very important for controlling and managing effective
functions or activities. There are two business environment which are helpful for running
business operations that involves internal and external environment. Management of organisation
has divided into three parts which are as under:
Top level management- This is the important part of each company and it can be a
leader, CEO, chairperson and board of directors who coordinate all functions of firm. They are
those person who analyse whole market situation and examine customers choice, taste and
preferences, also their behaviour, demand and need. They need to research all activities and
strategies which may be implemented in the company. It is the duty of this level person is ton
prepare budgets, collects investors and run functions which provide growth and develop
enterprise which assist in achieving goals and objectives.
Middle level- It is the stage in which they can develop plans and policies for employees.
It includes managers, employers and leaders of Volkswagen (Chang and Chuang, 2011). They
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coordinate all things as per strategic system and work with sound working environment and
supervise whole process of planning. They also solve employees and customers issues as well as
problems which are related to goods or services. Managers also arrange and coordinate with
business environment and monitor employees work in effectively and efficiently manner.
Lower management- It is lower level and the important member of the company without
them the strategy will not be implement. They work hard as effectively and efficiently so they
can capable to complete their planning and strategies in order to achieve the organisational
objectives and goals.
4.2 Resources requirement for executing a new strategy for organisation
It is that strategy which need to be implement in market by Volkswagen company and its
demand to develop all assets of firm. The organisation lack some of resources than they need to
achieve success by using alternative strategies and develop more innovative products for
potential customers. It is the responsibility of manager to execute effective plans and strategy in
the market. They are implement some of the strong strategies which are follows:
 Financial resources- It is the basic part of every organisation which manage functions
and activities that are necessary for Volkswagen (Cinquini and Tenucci, 2010). They
need to prepare all budgets which are control functions of business operations.
 Technical resources- It is essential for using various resources and it provide new
innovative manufacturing products which help in maximise profitability and productivity.
Volkswagen need modify and adopt new technologies which effectively develop and
increase sale of goods and commodities. It provide success to the company and enhance
growth market. The organisation need to acquire particular planning, advance investment
that raise profit and gives extra benefits to the firm.
 Fixed resources- Volkswagen needed to industry units and sale various outlets which are
part of set assets. These resources are necessary to offering in the marketplace in efficient
manner. Administration has to assist in analysing the new developing units which assist
in raising producing capacity. The director has to use resources which help in increasing
productivity and earnings.
 Human resource- An organisation need to check that its employees are satisfied their
working environment and they are face some problem or not. There are requirement of
new staff members who have skill, knowledge and abilities.
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 Raw material- An organisation need different parts for assembling cars, managers of
Volkswagen need to develop cars with qualitative products and by this they want to find
supplier who provide high attribute of products (Cooke and Saini, 2010). Company
manager has to manage the firms raw material which is necessary for the manufacture
and profitability.
4.3 SMART targets in business strategy
Recently, Volkswagen have not face most suitable position in the market. They need to
adopt some approach which are required to make innovative and differentiated products that is
placed in strategic marketplace. It is important for firm that they develop whole function and
activities which are increase sale of goods or commodities. The target will help in maintaining
existing abilities and also they need to adopt SMART concepts which provide clear picture of
company goals and objectives. This is the responsibly of organisation to complete all work at
given time period (PESTLE Analysis. 2017). The strategy used by business operation which
measuring growth and development of firm. Some of the target can be finish by adopting
particular strategies and plans The strategy used IN which measuring growth and development of
firm. Some of the target can be finish by adopting particular strategies and plans. They requires
to complete each task which is necessary for an organisation.
SMART targets assist in providing accurate image of business activities and position of
company in the large market area. This help people in using suitable capabilities for right place
at right time in effective manner. The SMART target are discussed as under:
 Specific- It describe particular goals which used by Volkswagen and its business sector.
They develop target products in various types of market and increase sale of goods which
assist in accomplishing objectives and goals.
 Measurable- It is that term which measure whole process of production and also focus
on reaching target customers to provide them satisfied products or services. The company
raise their market share with 5-8% of profit in each year in effectively.
 Attainable- It is that term in which they need to identify the goals and objectives and
also help in achieving reaching commodity in marketplace. It is essential for company
that goal should be attain by managers as well as employees.
 Realistic- This is that term in which company does not examine goal accomplish or not.
These are targets which are set by firm in efficient way. It will increase current and future
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target which should be achieved by company which is largest or oldest organisation of
large market.
 Time-based- It refers to the time period in which they set gaols and objectives in huge
market (Klettner, Clarke and Boersma, 2014). This is important for an organisation that
they should attain all targets and goals which provide growth and development. Firm
requires to finish some particular target at given time period that is 3-6 months which will
encourage them and employees should take active part in every decision making activity.
CONCLUSION
As per above report it can be conclude that business strategy help in improving
performance of all business operations and activities within an organisation. It aid company in
examining various department decision that are help in achieving specific task in set time period.
Strategies can be used by company such as sustainable growth, limited growth, retrenchment and
market entry which provides effective development for firm. The improvement growth is very
fast since last time period and company will work on modify cars features in effective manner.
There are roles and responsibilities of managers in different level that includes top management,
middle level and lower management who control all functions of organisation.
It is that strategy which need to be implement in market by Volkswagen company and its
demand to develop all assets of firm. Some of the target can be finish by adopting particular
strategies and plans. SMART targets assist in providing accurate image of business activities and
position of company in the large market area. It includes specific, measurable, attainable,
realistic and time based.
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REFERENCES
Books and journals
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range
planning. 43(2). pp.172-194.
Bharadwaj, A. and et. al., 2013. Digital business strategy: toward a next generation of insights.
Astrachan, J. H., 2010. Strategy in family business: Toward a multidimensional research
agenda. Journal of Family Business Strategy. 1(1). pp.6-14.
Meskendahl, S., 2010. The influence of business strategy on project portfolio management and
its success—a conceptual framework. International Journal of Project
Management. 28(8). pp.807-817.
Woodcock, N., Green, A. and Starkey, M., 2011. Social CRM as a business strategy. Journal of
Database Marketing & Customer Strategy Management. 18(1). pp.50-64.
Montgomery, C. A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Campbell, D., Edgar, D. and Stonehouse, G., 2011. Business strategy: an introduction. Palgrave
Macmillan.
Chang, T. C. and Chuang, S. H., 2011. Performance implications of knowledge management
processes: Examining the roles of infrastructure capability and business strategy. Expert
systems with applications. 38(5). pp.6170-6178.
Cinquini, L. and Tenucci, A., 2010. Strategic management accounting and business strategy: a
loose coupling?. Journal of Accounting & organizational change. 6(2). pp.228-259.
Cooke, F. L. and Saini, D. S., 2010. (How) does the HR strategy support an innovation oriented
business strategy? An investigation of institutional context and organizational practices
in Indian firms. Human Resource Management. 49(3). pp.377-400.
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics. 122(1). pp.145-165.
Online
PESTLE Analysis. 2017. [Online]. Available Through:
<https://www.sparkrail.org/Pages/HSPestle.aspx>. [Accessed on 26 September 2017].
SWOT Analysis. 2017. [Online]. Available Through:
<https://research-methodology.net/theory/strategy/swot-analysis/>. [Accessed on 26th
September 2017].
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