This report provides a comprehensive analysis of Volkswagen AG's business strategy, focusing on its response to the emissions scandal. It begins with an introduction outlining the importance of business strategy and its application to Volkswagen's situation. Task 2 delves into a SWOT analysis of VW AG's strategic position, followed by an environmental audit considering political, economic, social, and technological factors. The significance of stakeholder analysis in formulating a new strategy is discussed, leading to the proposal of a new strategy for VW. Task 3 evaluates the appropriateness of alternative strategies, justifying the chosen approach. Task 4 outlines roles and responsibilities for strategy implementation, details resource requirements, and highlights the contribution of SMART targets. The report concludes by summarizing the key findings and emphasizing the importance of adapting to the changing automotive industry landscape. The report includes a substantial list of references, both online and from journals and books.