Business Strategy Report: VW AG, HND Level 5, Semester 4 Analysis

This report provides a detailed analysis of the business strategy of Volkswagen AG (VW AG). It begins with an introduction to business strategy, emphasizing its role in achieving long-term goals. The report includes an organizational audit using SWOT analysis, highlighting VW AG's strengths, weaknesses, opportunities, and threats. An environmental audit using PESTLE analysis is also conducted, examining political, economic, social, and technological factors affecting the company. The significance of stakeholder analysis is discussed, emphasizing the importance of considering investors, customers, suppliers, and management. An innovative strategy, diversification, is presented to address VW AG's financial challenges. The report also explores appropriate alternative strategies for market entry and justifies the selection of market entry strategy. Finally, it identifies the roles and responsibilities of personnel involved in scheme formulation and estimates the resources required to implement the new strategy, concluding with the contribution of SMART objectives.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Organisational Audit of business entity................................................................................1
2.2 Environmental Audit of business entity................................................................................3
2.3 Significance of stakeholder analysis when implementing new scheme................................4
2.4 Present an innovative strategy for an organisation...............................................................5
TASK 3............................................................................................................................................5
3.1Appropriateness of alternative strategies link to market entry...............................................5
3.2 Justify the Strategy selection ................................................................................................6
TASK 4............................................................................................................................................7
4.1 Roles and responsibilities of personal who charged with scheme formulation]...................7
4.2 Estimated resources required in order to implement new strategy.......................................7
4.3 Contribution of SMART Objectives ....................................................................................8
CONCLUSION ..............................................................................................................................9
.......................................................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Business strategy is the craft, science and art of evaluating, formulating cross-functional
judgements (Business Strategy, 2015). It is enable an enterprise in order to accomplish its long
term goals and objectives. It is also known as process of defying the plans, policy, vision,
mission and targets of an organisation. It is a plan or approach which is very beneficial as well as
valuable for the business in regards to solve all issues in an effective & efficient manner
(Ackermann and Audretsch, 2013). With the help of this strategy, business entity can find out
their necessary resources in implementing innovative strategy. In this, management can give
accurate direction to its employees and employer in respect to attain higher productivity and
profitability of the firm.
This file is focused on VW AG which is a car manufacturing enterprise. In this report,
goals, objectives, mission, core competencies and vision of Azimo has been identified which it
wants to illustrated in Dragons den front. Several techniques and tools has been analysed which
is essential for formulating innovative scheme within organisation. Apart from this, PESTLE and
SWOT analysis, are known as environmental and organisational audit has been determined in
order to analysis recent position of business. Personal roles and responsibilities are also
identified in this report which charged in implementation of scheme. SMART objectives of the
Volkswagen which has been analysed in attaining strategy formulation.
TASK 1
Covered in PPT
TASK 2
2.1 Organisational Audit of business entity
Business strategy: It is defines as a patten of an organisation which makes effective
process and plan in order to lead higher development of growth of them. As per the case
scenario, different business are attracted towards innovative scheme implementation (Annabi and
McGann, 2013). So in this way, they can operates practices and activities of organisation in an
effective manner. In this situation, manger of the Volkswagen can develop new plan of action
which is essential to easily attain mission and vision of them. With the use of SWOT analysis,
business can determine their actual condition in market are as follows:
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(Source: Swot Analysis of Volkswagen, 2017)
Strengths:
 Volkswagen have large existence in the economy. As, they operates their stores in 153
nations (Swot Analysis of Volkswagen, 2017). It is a largest and multinational company
in Germany, China and Brazil etc.
 It is also known as auto mobile sector that mainly deal with car and other electronic
products. There are 600,000 employees are works with the purpose of achieving mission
and vision of the company, it is a big strength of entity.
 An organisation provides its core importance and significance to their development &
research department. This section mainly believes to enhancing its profitability and
productivity level by fulfilling buyers actual wants and needs.
Weaknesses:
 Poor condition in national market such as India, it is considered as developing and
growing market.
 Volkswagen face different issues towards their challengers such as Toyota, it is a main
competitor of company.
 Its car products are not situation and environmental friendly which is highly effects their
corporates image in a negative way.
Opportunities:
 By growing its business activities and functions into national market. It is very essential
for the company in order to achieve large number of share in marketplace.
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Illustration 1: SWOT Analysis

 By taking support of advanced and innovative technology which is important in regards
to enhance its actual position in marketplace.
 It can provides hard competitions to its different market challengers.
Threats:
 Raw material is acquiring high-priced to purchase.
 In actual time, Volkswagen position in marketplace is contentiously minimising due to
carbon Dioxide.
 Different other organisation has been constituted in areas which give car and other
electronic items at few prices. So it will impacting upon the company and its financial
condition.
2.2 Environmental Audit of business entity
One of the important part of the organisation is environmental audit because with the help
of they can easily identify their accrual position in market. By analysing macro factors, business
can make successful as well as effective strategies in an essential manner (Auzair, 2011). It is
significant aspects of the enterprise and their manager in regrades to determine various unit
which can effect on scheme. Without considering environment, an organisation can not
formulate successful procedures and plans. PEST analysis covers several factors which are
determined in detailed for are as follows:
PEST Analysis Description
Political With the help of use of this aspects, actual
business position is highly effected by Brexit.
In this way, organisation take permit from EU
and UK government. It is very difficult for the
company in order to consider different
regulations and rules while selling their
services & products.
Economical Law development in economic, firm face
various issues and problems in UK (Azar,
2011). Poor economic situation of state,
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Volkswagen sell their car products on
affordable cost through which is never
maximise its profitability and productivity
level.
Social In modern world, person of United kingdom
are advanced so in this they needs cars with
additional technology and feature. It is a very
positive and good points for the business
entity.
Technological It is defines as an essential task foe each and
every enterprise in order to take support of
advanced application while producing different
items as well as making any significant
judgements. It is a big point of the cat
manufacture in regards to inform their
technical factors on non-stop level. So it can
maximise organisation operating cost.
2.3 Significance of stakeholder analysis when implementing new scheme
VW AG is a world largest and multinational organisation, they mainly deal with popular
and famous car manufacturing products (Bharadwaj and et. al., 2013). They are well recognise
for their quality services and products in order to supply its all commodity to their potential and
target buyers in a systematic manner. Company is capable to conduce effective market research
which is beneficial for them, in getting correct information about customers actual wants and
needs. It is essential that help business entity in regards to producing its care and other electronic
products as per clients demands. But for development, success and better growth of the
company, all stakeholder such as investors, customers, suppliers and top management play
important role in achieving all those aspects in a easy manner. With the help of all persons,
organisation can evaluate its all neutral before formulating any plan of action within
workstation.
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Volkswagen should provides high precedence to its share-owner because without
capitalist they never acquire enough fund in respects to operates various functions, practices and
activities of company (Bucolo and Matthews, 2011). According to the another, employees are
main players of the firm because they highly impart their efforts in supplying better quality
products and creative services as per buyers demand and requirements. So it is essential for the
company in order to fulfilled customers satisfaction level. Apart from this, governments and
suppliers are main assets of the entity because they are also a stakeholder part. It should evaluate
by the organisation while formulating as well as implementing innovative scheme within
business entity. Suppliers are also very essential part of the firm because without this person
company cannot supply their quality car products to customers. They are gives raw material at
large number to industry so that they can easily covert this in final products. In this way,
government are also play significant role in the business growth and success. They have some
authority in order to make regulation and legislation which is followed by each and every entity.
Therefore, stakeholders are more important part of the company success and growth. In
this VW AG analysis the demands and requirements of these people with the aim of formulating
new scheme in an effective or efficient manner
2.4 Present an innovative strategy for an organisation
With the aid of innovative strategy, business can develop as well as encourage its actual
position in marketplace. VW AG is troubled from a large amount of payment which is $19
billion. So in this business organisation pay different penalties in their operating practices and
activities according to business environment requirements (Grover and Kohli, 2013). In this
situation, Volkswagen use diversification strategy which is very essential in order to improve its
success, development and growth in an effective or efficient manner. With the use of this
scheme, company can classify their quality products and creative services into various market. It
is a very beneficial and useful aspects of organisation in regards to diversify their better, low
branded items in different locations in a systematic manner.
TASK 3
3.1Appropriateness of alternative strategies link to market entry
There are different alternative plan of action which is followed by the Volkswagen in its
business activity and function. With the use of all these strategy, company can maximise its
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profitability and productivity level as well as share in market. All these scheme are determined in
detailed such as:
Market entry: This scheme covers business enlargement in different country. With the support of
this strategy, Volkswagen can maximise its development and growth in an essential manner.
Company can take aid of this strategy in order to giving its service & products in world wide, it
is also cover large number of the market share.
Substantive growth: With the use of this aspects, an enterprise never take suppliers support in
form of producing several raw material by own (Jocovic and et. al., 2014). So in this situation,
they never pay large fund to suppliers. In this way, business organisation can have essential and
substantive growth as well as development.
Limited growth: It is very essential and beneficial strategy which is used by each and every
organisation in a systematic manner. In this, enterprise never expand their activities and
functions as well as creates few financial advantage so that, business endure in market.
Retrenchment: With the support of this scheme an organisation suffering higher debts. In this,
an enterprise can offers different facilities such as big discount, free rides on their care products.
So in this way, they can decrease several debts amount.
3.2 Justify the Strategy selection
Financial penalty alleged on VW AG was quite high approx $19 billion dollars in all
around the world. Volkswagen has chosen market entry which is very important for the business
in order to grow successful in competitive market (Kalyani and Sahoo, 2011). With the help of
this strategy, they easily enter in innovative markets which supports it is different forms which
are determined under this:
 Volkswagen can take help of market entry strategy, it is essential and beneficial for them
in enter other countries as well as raise its share.
 Company have large share and growth in marketplace which is significant in order to
attain competitive benefits in its national and international country.
All those are important and main advantages in regards to formulating market entry plan of
action. With the aid of this, business organisation can apply its present resources such as
financial, technical and human etc. those are important and beneficial in strategy planning
implementation (Klettner and et. al., 2014). Volkswagen use all these in an effective and
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different way while completing needs and requirements of marketplace in various ways. It will
also support in order to attaining desired objectives and goals of the firm.
TASK 4
4.1 Roles and responsibilities of personal who charged with scheme formulation]
One of the important and main part of the each and every entity is strategy
implementation. In order to formulate innovative scheme organisation can lead higher growth
and success as well as maximise its share in marketplace. In this situation, different people are
play essential and significant role in an effective or efficient manner. All important person are as
follows:
Superior administrator: They have many roles and responsibilities in order to give comment of
the lower level management towards new strategy formulation (Köseoglu and et. al., 2013).
Administrator are having few duties in front of line handler.
Managers: In the strategy formulation, manager have different role in regards to written down
the position and promotions within the workplace. Main aim of the Volkswagen is to work with
each the with the purpose of generating career plans and goals for the workers who achieve
them.
Engineers: They are also known as important and essential person because they work in regards
to identifying issues, evaluating the criteria, to conduct the research and finding result for making
judgements . Engineers spent there important time in company with the locating, researching,
applying and transferring all information towards new strategy implementation.
Research staff: As a new strategy formulation, all staff are highly talented and qualified so they
are better-known as sub-investigators (Murano and et. al., 2011). Volkswagen, do not trust on the
primary information and data because they follow secondary data in respect to execute there all
task in an effective and accurate manner.
Employees: In the level of organisation, employees has different responsibility and duty in
regards to achieve higher growth and success of the company. They play their important role in
implementation of new strategy, in this they give comment to their superior due to scheme.
4.2 Estimated resources required in order to implement new strategy
There are different resources which are needed and required by Volkswagen in order to
formulate new plan of action within work station. All necessary resources are as follows:
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Human resource: They are main and important part of the organisation because without this,
company can not recruit and select talented person (Oestreicher-Singer and Zalmanson, 2012). In
the strategy formulation, talented person are required in achieving growth and success of the
enterprise.
Technical: With the use of advanced and innovative technology, Volkswagen easily implement
as well as formulate innovative scheme in specific time period. But, in the firm, it will create the
issues because few person not have knowledge regarding this technology. Business entity is
having a better technicality such as material and process theory as well as machines etc. with the
aid of these company can generate its history.
Financial: It is a basic needs are requirements of the each and every organisation in its business
activities and functions (Svee and et. al., 2011). Volkswagen spend there few amounts on
advanced technical resources, which is important in implementing new strategy. They make
finance from different source such as shareholder, loans and investors etc.
All resources are important and beneficial for the organisation in regards to generate
better position in marketplace (Schaltegger and Wagner, 2011). With the support of entire
aspects Volkswagen easily implement new strategy in an effective or efficient manner.
4.3 Contribution of SMART Objectives
All enterprise have their own targets in regards to making better and innovative strategy
with the help of above all resources such as financial, human resources, technical and other. In
actual time, competition of market which is day by day maximise in a unsystematic way that will
generate big issues for VW AG. In order to survive in agonistic place which is beneficial in
implementing new strategy as well as setting desire targets. Volkswagen is selected market entry
scheme which is beneficial in regards to set its objectives and goals according to innovative
strategy. Company can take support of SMART objective because it is useful and supportive for
business to set measurable, specific, realistic, time bounded and achievable goals. There are
different innovative objectives and goals which is generated by upper level management are
determined under this:
 Volkswagen wants and needs to maximise there market share and growth by 20% and
more within 5 years. So, it make its existence in other location and nation.
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 One of the main aim of company in order to raise and improve its productivity level by
40 % within 4 years. So in this way, they can maximise there productivity in an essential
manner (Scholes, 2015).
Therefore, these are essential targets of organisation which is generated SMART objectives
which can identified by different points:
Specific: Above discussed objectives and goals of company are defines as specific. So in this
they can attained only by applying strategic procedures and plans.
Measurable: Business organisation have generated those targets and objectives which can
supports in order to evaluating development and success of company.
Attainable: An enterprise have generate a group of few administrator who will use various
methods and approaches in order to execute desired and long term objectives of organisation.
Realistic: Business have few resources such as financial, human and technical etc. All these are
positively influence upon enterprise in attaining its goals and outputs (Slack, 2015).
Time framed: Volkswagen has provided limitation in time towards its objectives and goals, so
that, business can attain them in few period.
CONCLUSION
As per the above discussed report, it can be concluded that, business strategy is important
part of business in implementing new strategy. It will help manager in order to achieve desire
goals and objectives in certain time period. There are different methods and techniques are used
in business strategy formulation. Marketing plan of the company which cover mission, vision,
core competencies, objectives and goals etc. In regards to achieving all these business use
different factors such as management, innovation and stakeholder etc. They are main player in
strategic planning implementation. Ansoff's Matrix are also used in this situation in an effective
manner. SWOT and PESTLE analysis are also used to determine internal and external factor of
the business. An organisation use diversification strategy in its formulation so in this they
required essential resources such as finance, technological, human resource etc. In this situation,
manager, engineer, research staffs and employees are play important role. All targets and
objectives of the company is SMART in improving their situation in marketplace.
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