This report presents a comprehensive analysis of Volkswagen's business strategy. It begins with an introduction to business strategy and its application within the automotive industry. The report then delves into an organizational audit of Volkswagen, utilizing SWOT analysis to assess internal strengths and weaknesses, and an environmental audit using PESTLE analysis to examine external factors. The importance of stakeholder analysis in strategy formulation is discussed, followed by a proposal for a new product development strategy for Volkswagen. The report further explores the appropriateness of alternative strategies for different market conditions, justifies the selection of the chosen strategy, and outlines the roles and responsibilities of personnel involved in strategy implementation. It also estimates resource requirements and evaluates the contribution of SMART objectives to achieve strategy implementation. The report concludes with a summary of findings and recommendations, supported by relevant references.