This report provides a comprehensive analysis of Volkswagen's business strategy, addressing the challenges faced by the company, particularly in light of the environmental law violations. The report begins with an introduction to business strategy and its importance, followed by an organizational audit using SWOT analysis to assess Volkswagen's strengths, weaknesses, opportunities, and threats. An environmental audit, utilizing PESTLE analysis, examines the political, economic, social, technological, environmental, and legal factors impacting the company. The significance of stakeholder analysis is then discussed, emphasizing the need to satisfy various stakeholders. The report proposes a new plan of action for Volkswagen, including a limited development strategy, and explores modification and selection strategies. It suggests focusing on limited growth strategies, maintaining current capabilities, and addressing financial penalties. The analysis covers topics such as organizational audit, environmental audit, stakeholder analysis, new plan of action, modification of strategies, and selection strategy.