Strategic Planning and Analysis for Volkswagen: A Business Report

This report provides a comprehensive analysis of Volkswagen's business strategy, addressing key aspects of strategic planning and implementation. It begins with an introduction to business strategy, emphasizing its importance in achieving organizational goals. The report then delves into an organizational audit, analyzing Volkswagen's strengths, weaknesses, opportunities, and threats (SWOT). An environmental audit, using the PESTLE framework, assesses the political, economic, social, technological, legal, and environmental factors impacting the company. The report also examines the significance of stakeholder analysis in formulating strategies, considering the needs and expectations of various stakeholders. Furthermore, it explores alternative strategies related to market entry, sustainable growth, and limited growth, culminating in a new strategic approach for Volkswagen. The report concludes with a discussion of implementation roles, resource requirements, and the use of SMART targets in business strategy, providing a well-rounded view of Volkswagen's strategic challenges and potential solutions.

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Enhancing strategic position with assistance of organizational audit...................................1
2.2 Executing environmental audit for Volkswagen...................................................................2
2.3 Measures linked with stakeholders in preparing of strategies..............................................4
2.4 New strategy for Volkswagen...............................................................................................4
TASK 3............................................................................................................................................5
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 in strategy implementation.....................................................7
4.2 Resources requirements for implementation of new strategy for VWAG............................8
4.3 Effort of SMART targets in business strategy......................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is termed as plan of actions comprising of rules and regulations used by
firms in order to achieve their goals and assigned targets. The mangers should effective monitor
and execute plans and policies in order to increase work effectiveness. Strategy is essential for
every as it direct employees works which had to be performed by them, tools they had to adopt
in order to achieve effectual results. This is valuable task in order achieve assigned targets in
desired time frame (Astrachan, 2010). Volkswagen have implemented various strategies at work
places which are useful in solving problems that are faced by clients. There were heavy penalties
imposed on them as they were having defects in their cars and they were eliminating out smoke
in large amount. Fine was executed as there products were destroying natural beauty as smoke
were released from vehicles. All these problems can be solved by making strategies thus creating
healthy work environment. The report comprises studies about various process which are used in
strategic planning, planning and implementing new strategy at work place, various tools and
techniques for strategy evaluation and lastly choosing and implementing best and effective
business strategy.
TASK 1
Covered in PPT
TASK 2
2.1 Enhancing strategic position with assistance of organizational audit
Every business enterprise is focusing on monitoring and implementing plans in order to
analyse internal audits which helps in analysing difficulties that are faced during enterprise
operations. Good and effective results which are useful for business can be achieved by
formulating plans and strategies which are helpful in achievement of good results. Employees are
given power to keep records of all the activities which are executed by them in order to achieve
healthy relations with all persons who are involved in business activities. Various tools can be
enacted in order to accomplish strong and valuable positions at work places and stakeholder can
do effective business operations in order to accomplish success (Bharadwaj and et. al., 2013).
Strength and weak points can be easily identified by conducting SWOT analysis.
Volkswagen can frame strategies in order to evaluate all those factors which are acting as
obstacles in their business performances. Strong elements are useful in achieving success for
overall business operations. Back up plans are used for threats that are faced by business
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operations in order to resolve issues in planned ways and it results in affecting performance of
workers as they are not able to carry out their working in effective ways.
Strength: They have a strong points as opportunities are gathered in order to expand their
business operations and achieve growth at domestic and international levels. This results in
earning high market shares and profit ratios (Woodcock, Green and Starkey, 2011). As per the
data which were gathered in past year revenues and profits of business are increasing
continuously. All there operations are managed in effective ways instead their profit are not
high. Various social measures are adopted so that activities of business can be easily expanded.
Weaknesses: There are some weak points in every business and Volkswagen are dealing
in cars of they have stocks which are unsold as new technologies cars are developed so people
are not willing to buy old cars. This greatly affects their business structures and pricing plans.
Thus policies should be framed in order to monitor each business operations which are affecting
their working (Campbell, Edgar and Stonehouse, 2011). Marketing strategies are very beneficial
in order to achieve strong positions from their rivalry business. Plans should be developed to
analyse all current conditions in market and achieve strong competitive positions.
Opportunities: Volkswagen can easily make entry into new segments so as to expand
their business operations all around the globe. Plans should be made in order to develop effective
marketing strategies which are useful in achieving growth and success in their ventures. They
can make modifications in their existing models of cars in order to save cost on developing new
manufacturing process again.
Threats: Each business is facing issues at their business operations like productivity is
affected because of up-gradation in technologies, changes in taste and preferences of customers
etc. There is solution for this problem by making effective strategies by analysing changes in
order to attain higher profitability (Casadesus-Masanell and Ricart, 2010). Cars should be made
with advanced technologies in order to satisfy needs of clients thus increase in sales ratios. Plans
should be made in order to achieve higher profitability from their rivalry business.
2.2 Executing environmental audit for Volkswagen
The business of Volkswagen have faced high difficulties in 2015 on 18 September as the
cars which were developed by them were eliminating smoke in huge amount and it affected
health and environmental aspects. There was problem in their manufacturing process and no test
were done so this issue was not identified. As people purchased the cars and start using them
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they faced difficulties and they made a complain against firms and this results in development of
negative images (Wang and Verma, 2012). This was great shock for firms as they sales ratios
gradually declines and they have to made effective strategies in order to fight with this situation.
The effect of these factors were mostly on the environment as it was doing harm to
natural beauty and affecting health related aspects of people as there were inhaling harmful gas
coming out from vehicles. These were most serious issues in economy and effective plans and
framework had to be developed in order to satisfy people and achieve success. Plans can be
formulated in order change manufacturing process so that cars can be framed which will not emit
harmful smoke (Eccles and Krzus, 2010).
Plans can be made in order to formulate new strategies which are beneficial in developing
good image of firms. Firms can achieve growth in their sales and productivity ratios by
conducting environmental audit and this is the most beneficial tool for all firms dealing in auto
mobile sector.
PESTLE framework is described below as:
Political environment: Volkswagen can easily carry forward their business activities as
they have to follow less rules and regulations because they are dealing in auto mobile sector.
This is valuable for them as it will not affect their business operations. They have to pay lesser
exercise duties and taxes because there is discounts granted to those industries who are dealing in
auto mobile business.
Social environment: These factors are mostly focusing on framing business strategies
which will help firms to develop cars as pollution free. This results in building positive image
among all the members in society and they will increase profitability factors by purchasing cars.
As they are focusing on improving their images they will apply tools and techniques to promote
them like giving discounts to customers etc. (Elliot, 2011). This is beneficial in enhancing
profitability ratios of business.
Technological changes: Volkswagen should be aware of recent changes in technologies
and they should put efforts to develop and manufacture goods accordingly. This is valuable in
satisfying needs of clients and they will purchase car as it provides comfort to them. Changes can
be made according to technological factors in the machinery which is involved in production
process. Effective management strategies are valuable in stocking advance cars so as to fulfil
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needs of clients when demand factors are high. These firms can execute technological
advancement systems like data base and accounts.
Legal Environment: Firms can execute all their business activities by following all legal
rules in order to gain success. Legal implication have executed various laws which are beneficial
in caring out all business operations in planned and effective ways and this results in achieving
growth and success in their overall ventures.
2.3 Measures linked with stakeholders in preparing of strategies
Stakeholders are the most important persons who are working in order to achieve all aims
and business objectives in planned and effective ways. Business strategy are important factors in
order to achieve all their short and long term plans and policies. Stakeholders analyse all the
current trends at market places and then they make plans to expand their business operations at
national and international areas. They are conducting research in order to analyse choices of
customers so as to gain competitive advantages (Hahn, Kolk and Winn, 2010). Volkswagen have
adopted matrix structures in order to effectively analyse needs and wants of clients who are
doing business activities.
Value of stakeholder analysis are described as:
These persons are involved in making plans in order to achieve corporate social
responsibilities at work places.
They make policies to track the current performances at market places, this is valuable in
achieving competitive gains.
The plans which are formulated are useful in determining present positions of all
stakeholders and this results in achieving consistency and alignment in their overall business
operations.
Business strategy are useful in order to motivate all their workers so they will achieve all
their targets in desired times.
2.4 New strategy for Volkswagen
Business Strategy is a part of every organisation which provide a framework and action
plan for working in an appropriate manner. Strategy is helpful for every entity through which
they can maximise their probability and productivity of business as well. The new strategy for
Volkswagen is based on their stakeholders of a company and by targeting new market as well.
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As their name after omission already get spoil and thus it is the time to improve this in an
adequate manner.
Firstly they have to mapping their stakeholders in which various individual needs and
demand have to determine. For this relation they have to use Maslow hierarchy needs model in
which various group needs and demand get determine (Haley, Haley and Tan, 2011). According
to that, company have to provide services and fulfil requirement of every individual.
Along with their stakeholders, they have to target another new expanding market where
they can deliver quality number of services and increase customer base as well. But for this
relation, management have to gain trust and faith of their users again. They have to start
manufacturing such vehicles which are environment friendly and do not em-mute more and more
pollution (Verbeke, 2013).
Market growth strategy is beneficial for them in doing this sort of activity. By this,
management can determine the new market world din which they want to grow operations.
Along with this, gain trust of users as well about quality of services. Market growth strategy
enable them in analysing nature of keen competitive business environment. By taking all
elements as a base, management can prepare their working pattern and align them properly.
This new strategies have to determine by the Volkswagen group so that all activities get
done in an appropriate manner by satisfying every group of customer as well.
TASK 3
3.1 Alternative strategies related to market entry, sustainable and limited growth
There are some strategies which assist in managing business operations and functions of
firm in effective manner. Volkswagen is multinational company which provide various types of
products or services in international market (Li and Tan, 2013). They offers best and latest model
cars to their customers and attracts more buyers by adopting some effective strategies. Company
will develop more plans and strategies which assist in enhancing growth and development. For
attracting more customers they need to adopt latest techniques and methods and make proper
modification in their cars features and designs. These are some strategies which are discussed as
under:
 Market entry- An organisation can target their customers as well as market for
increasing profitability and development. They need to expand their business operation in
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large market place. Firm can open more stores in global market for investing capital. By
using this strategies they can earn more profit.
 Sustainable growth- A company can manage their price in vertically and horizontally
manner in the market. In this, they can provide cheap and low quality products to their
customers (Teece, 2010). It also help in enhancing firm revenue which provide growth
and development. This strategy boast about two concept which are acquisition and
merger. Basically, it is used when organisation has more resources to invest and expand
at greater speed.
 Limited growth strategies- It is an effective strategy which is used by organisation and
it have not much resources for development. This will be used for reducing consumption
of resources. For Volkswagen this strategy is perfect, as it will assist it in enhancing its
capabilities with an organic approach (Melville, 2010). Basically, this method aids
organisation in maintaining its capabilities while ensuring that they are not hampered by
any sudden changes in plans. Volkswagen will use Joint venture as a method to enter into
new market which will allow it in gaining more market share while investing minimum
resources.
 Retrenchment- In this strategies, company face losses situations and sell all assets and
liabilities for cover their debts. This condition force firm to close their business
operations and exit organisation. This is not suitable strategy for Volkswagen VG.
3.2 Selection of strategy
The company need to select suitable strategies which increase business operation and
expand area of functioning. Volkswagen already analyse whole market situation of different
companies in various market places. The improve process is very fast in last time period and
organisation can work on modify their car features and models. It assist in attracting large
number of customers of global areas (Meskendahl, 2010). The limited growth strategy is best
suitable for firm which allows managers for enhancing production level at same time period. It is
useful for minimise cost of functions and activities. This strategies used for consuming less
resources and increasing capabilities and abilities of company. They need to enter in new market
and expand business in target market which help in attracting buyers towards their products or
services.
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The firm adopt this strategies for enhancing market share and gain competitive advantage
which help to promote business operations and increase sale of company. An organisation make
products which demand by buyers and suitable goods that assist in positioning in the large
market place. It will help in modify some development plans and policies which provide growth
in the specific area (Spender, 2014). Company mainly cover that location in which they found
potential customers who are interested to buy particular goods or services. This type of strategy
help in evaluating capabilities and abilities which enhance growth and reduce threats in market.
So, it is appropriate strategy for make more profitability and production.
4.1 Roles and responsibilities of in strategy implementation
There are many people who are involved in strategic implementation of business
organisation. It helps managers so as to achieve goals and objectives of the firm. Apart from this,
if all persons are being involved in strategic management process, therefore a firm can get
effective success and market growth. Below mentioned the brief description of people who plays
a vital role in strategic implementation process: -
Senior authorities – In Volkswagen, higher authorities are responsible to make effective
strategies. They look out the overall and its progress whether it is going in right direction or not.
All senior person make another policies towards effective implementation of business strategies.
They gives direction to managers towards proper manipulation business policies (Mithas and
Lucas, 2010).
Top management – The top management of Volkswagen is wholly responsible to make
new and innovative plans so as to evaluate market trends and business choices. Apart from this,
they are also accessible in to guide their subordinates and provide necessary training to them for
gaining first position in competitive market.
Engineers and research personnel – There is required technical person who helps a firm
to implement strategies in an adequate manner. Beside this, managers can also take help opf
some researchers in order to know customers needs and wants.
Specialist and experts – These people are belong from various places so as to perform working
activities. Some specialist are culpable to make meaningful business strategies in order to deal
with problems.
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4.2 Resources requirements for implementation of new strategy for VWAG
While evolving any kind of new business strategy, it is necessary to the business owners
of Volkswagen endorse some effective resources which gives power or strength to then process
of strategic conduction (Smith, Mills and Dion, 2012). Resources allocation would be assistive in
establishing a balance between complexity and sophistication so as to company can achieve its
business goals and objectives in an effective manner. Below described certain resources that are
must for the process of strategic implementation: -
Human resources are very useful of a business organisation. They are main reason for growth
and development of business organisation (Montgomery, 2011). If a company will provide
training and development assistance to its staff members as it can easily compete in this
competitive market. Volkswagen is now focusing on hiring well skilled and technical people
who can gives strength to its strength to its operations.
Physical resources and financial resources are required in the process of strategic
implementation. Physical resources are concerned with effective machinery, therefore managers
have to adopt various tools and techniques of effective production. Whereas, strategic planning
also needs proper funds or capital. There are sources from where, company can generate its
money, such as – cash balances, creditors, shareholders etc.
4.3 Effort of SMART targets in business strategy
There are different problems and obstacles are being faced by the managers of
Volkswagen. For this purpose, they need to adopt SMART goals and objectives which are liable
to gain high market growth and success. Business organisations are developed various plans and
policies in order to compete with external forces as well as enhancing their capabilities. SMART
targets should be: -
S – Specific
M – Measurable
A – Attainable
R – Receivable
T – Time bound.
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These targets are set for maximising efficiency and productivity in order to establish
proper coordination among business activities and functions (Scholes, 2015). The prime SMART
objectives of Volkswagen is described as below: -
 Increasing sales revenue and annual profit by 20%
 Maximising the number of customers by providing them healthy and positive working
environment.
 Increasing the interest of shareholders by giving them more share among profits.
CONCLUSION
From the above report it can be concluded that strategy framework are essential factors
for every business as it helps employees to achieve goals in allotted time. Stakeholders helps in
achieving growth and competitive gains for firms. Strategies helps in bringing consistency in all
working executed by all departments and resources which are available in economy are used in
planned and effective ways. This is beneficial in order to conserve and save resources for future
use. SMART objectives are helpful in assigning times to all employees to complete all task while
achieving consistency in their working procedures.
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REFERENCES
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