Business Strategy Analysis: VW AG, HND Business - Level 5 Report

This report provides a comprehensive analysis of VW AG's business strategy, encompassing various aspects of strategic planning. It begins with an introduction to business strategy and its importance, followed by an examination of VW AG's mission, vision, objectives, goals, and core competencies. The report then delves into the essential factors of strategic planning, including industry analysis, competition, and SWOT analysis. It also evaluates the effectiveness of techniques like the BCG Matrix and Ansoff Matrix in developing business plans. The report includes organizational and environmental audits to assess the company's strategic positioning. Furthermore, it emphasizes the significance of stakeholder analysis in strategy formulation. The report also explores the appropriateness of alternative strategies and the selection of a new strategy. Finally, it outlines the roles and responsibilities of personnel, resources needed, and the contribution of SMART targets for strategy implementation. Overall, the report provides a detailed overview of VW AG's strategic approach and its practical applications.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
1.1 Business mission, objectives and goals.................................................................................1
1.2 Factors need for producing strategic plans............................................................................2
1.3 Effectiveness of techniques for making business plans........................................................3
TASK 2............................................................................................................................................5
2.1 Organisational audit of VW AG...........................................................................................5
2.2 Environmental audit..............................................................................................................6
2.3 Stakeholder analysis importance...........................................................................................7
2.4 New strategy..........................................................................................................................8
TASK 3............................................................................................................................................9
3.1 Appropriateness of alternative strategies..............................................................................9
3.2 Selected strategy..................................................................................................................10
TASK 4..........................................................................................................................................11
4.1 Roles and responsibilities of personnel...............................................................................11
4.2 Resources needed for implementing strategy.....................................................................11
4.3 Contribution of SMART targets for strategy implementation............................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy plays a crucial role in achieving the pre determined aims and objects of
an enterprise. Strategy is a management plan which supports in maximizing organisation's
performance. It defines the process for achieving goals and without the proper business strategy
it will be very hard to compete in market with the competitors. Development of business strategy
is the main activity of administration (Business strategy. 2017). But the guarantee regarding
success is not there if an enterprise has good strategy and its execution. This project undertakes a
depth study of strategies related to business discussing various strategies that are formulated to
achieve the goals and objectives of the business taking into consideration the case of VWAG
There are also various factors which affect the plans of the business and the evaluation of
technique's effectiveness will also be developed. The report also consists of Audits related to
Organisational as well as environmental conducted for analyzing the strategic efficiency of the
company. audit will also be conducted in this report which will be used to analyse strategic
positioning Stakeholders being an important part for an organisation are need to be taking into
consideration while making formation of strategy.
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Mission is a purpose statement and the reason for which a company exists in a market. It defines
the core values, ideas abilities and facilities which an organization is pursuing in a short time
period. Its main focus is on business activities and its values.
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Vision defines what company want to be in future and the way to do that. It helps in giving
direction in relation to what needs to be done in future . Vision is a statement that serves as a
inspiration for a company, in times when there no answer regarding problems.
VW AG strives to maximize their buyers so as to enable company to maximize its brand image
and profit in market. Besides, company also focus on using product development strategy for
increasing their market share in order to gain competitive advantage from competitors. Company
also take advantage by creating several possibilities for people in market. Significant attention is
giving in providing training to staff and employees so as to improve their performance by
enhancing their knowledge that will help them to achieve targets in an appropriate manner. This
will also lead to reduction in cost.
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Company deals in a wide range of services and products to cater the needs and requirements of
their customers. In order maintain the standard of its products company make use of accessories
and many other things of high quality in their manufacturing process. The company utilize its
core expertise for gaining competitive advantage in a market. The strategies formulated must be
effective enough to give company an edge over its competitors.
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Strategic planning is the process with enables an organization to formulate various policies and
procedures and can take decisions related to allocation of limited resources so as to ensure their
maximum utilization and output. It also supports a firm forming giving guidelines needed to
implement strategy. There are three factors that are need to be considered while formulating
strategic plans.
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Industry: At the time of strategic planning, it is of vital significance to analyze and evaluate the
whole industry including various aspects related to potential of earning profits, past growth, size
of the market, future threats and chances of new entrants to join the industry, competition etc. It
is because change in any of these aspects will have a great impact on the operations of the
organization
Competition: It is determining the position of business competitor which is considered as a
critical factor in determining strategic plan and policies. Success of VW is subjected to its
efficiency in analysing its competitor’s nature and their position in the market. A analysis
strength and weakness of market competitors should also be done in order to get knowledge
about strategies adopted by them to cater needs and wants of customers. (Helms and Whitesell,
2013).
Strengths and weakness: SWOT analysis is essential feature for formulate strategic plans by
analyzing strengths, weakness, threats and opportunities of an organisation. Determining the
internal strengths by an enterprise is essential as it helps in further developing and enhancing
them. On the other hand, identifying the weakness is of equal importance for the firm as it helps
an organization to take necessary measures to decrease its weakness and improve its
performance..
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BCG Matrix helps the companies in making a wise choice during allocation of resources by
assisting the firm in distinguishing in areas which requires more resources and investments. This
technique needs to be giving specific consideration while developing strategic plans for business.
Question Marks: It explains different ventures with large amount of growth in market and
having low shares in the market. In case, the market share of the company is low then the amount
of money spent by an enterprise will be high.
Dogs: In such situation, businesses experiences less market growth along with less market share.
In such situation, organisation can be wind up or sink. Companies are termed as weak here and
finds problem in generating revenue.
Stars: In the situation which is called star, companies are having market growth as well as high
share. They have several different opportunities which make them business leaders in a market.
They capital invested is high for gaining high market share.
Cash cows: In this situation, the business is having low growth in market but have high share.
This is that category of businesses who are doing good in market but have low growth.
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Market penetration: Market penetration describes the policies and procedures formulated with
the main objective of selling old product in prevailing market. It is helpful in maximising and
maintaining market share of the product, restructuring of mature market and to secure growth in
market dominance by removing competitors.
Market development: Company make sale of existing product in new market in this approach.
This kind of policies can be adopted by involving distribution channels, product dimensions and
packaging and new channels of distribution etc
Product development: In this situation, company introduces new products in existing markets. In
product development strategy new competitive advantages are developed and products are
modified by company for attracting customers
Diversification: In this kind of situation, new products are introduced in new market.
Diversification is a risky strategy as it leads business to enter into new with no or little
experience.
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