Business Strategy Report: Strategic Planning for VW AG (Level 5)

This report provides a comprehensive analysis of the business strategy of VW AG. It begins with an introduction to strategic planning, including mission, vision, objectives, goals, and core competencies, and explores the factors that influence strategic plan formulation, such as industry, competition, and internal strengths and weaknesses. The report then evaluates the effectiveness of techniques like the BCG matrix in developing strategic business plans. The analysis extends to VW AG's strategic positioning, including an organizational audit that assesses strengths, weaknesses, opportunities, and threats, and an environmental audit using PESTLE analysis. The significance of stakeholder analysis in strategy formulation is also discussed, leading to the proposal of a new strategy for VW AG. The report further examines alternative strategies related to market entry, substantive growth, and limited growth, and selects a strategy for VW AG, considering the roles and responsibilities of personnel, resource requirements, and the contribution of SMART targets to strategy implementation. The conclusion summarizes the key findings and recommendations.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO 1.................................................................................................................................................1
1.1 Business mission, vision, objectives, goals and core competencies.................................1
1.2 Factors that considered formulating strategic plan...........................................................2
1.3 Effectiveness of techniques used in developing strategic business plans........................3
TASK 2............................................................................................................................................5
LO 2.................................................................................................................................................5
2.1 Strategic positioning of VW AG through organisational audit........................................5
2.2 Environmental audit of VW AG.......................................................................................6
2.3 Significance of stakeholders analysis to formulate strategy in VW AG..........................7
2.4 New strategy for VW AG.................................................................................................8
LO 3.................................................................................................................................................9
3.1 Appropriate of alternatives strategies related to market entry, substantive growth, limited
growth ....................................................................................................................................9
3.2 Selection of strategy for VW AG...................................................................................11
LO 4...............................................................................................................................................12
4.1 Roles and responsibilities of personnel at VW AG........................................................12
4.2 Estimation of the resources' requirement for implementing new strategy.....................13
4.3 Contribution of SMART targets to the achievement of strategy implementation in VW AG
..............................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

Illustration Index
Illustration 1: BCG matrix...............................................................................................................4
Illustration 2: PESTLE analysis.......................................................................................................7
Illustration 3: Merger and acquisition..............................................................................................9

INTRODUCTION
Business strategy made with strategic vision which require proper planning. Therefore,
planning consist important role which assists to enhance profitability and productivity in the
organisation. With this regard, mission, vision, tools, etc. included which assists to develop
effective functioning in business environment (Vaidyanathan and Aggarwal, 2015). Further,
business strategy also useful aspect to accomplish effective purposes and outcomes through
business will able to ascertain more effective functioning. In this context, present report is based
on VW AG which is automobile industry and operate functions in national and international
market through developing their plan. In order to gain insight knowledge of the company, report
covers strategic position which assists to deliver effective results in the business. Furthermore, it
includes environmental audit to identify impact of market elements on the business in those areas
where company organise their functions. Moreover, it discusses about the alternative strategies
which can be used by the business to enhance their performances in business unit.
TASK 1
LO 1
1.1 Business mission, vision, objectives, goals and core competencies
In order to determines strategic position, following are vision, mission, objectives, goals
and core competencies determines in Neil Westwood’s Magic Whiteboard:
Mission
Mission refers as the purposes set which need to be accomplish for development of the
results. It helps to increase the organisation performances in systematic way. Therefore, the
selected business will easily develop profitability at workplace (Alsudiri, Al-Karaghouli and
Eldabi, 2013). It includes following elements in mission completion:
 Create effective value for each customer in business unit.
 Maintenance loyalty towards the organisation performances.
 Increasing market share and program.
Vision
 Increasing number of customer and employees to create profitability.
 Enhancement in services to attract several customers of international market (Huarng
and Mas-Tur, 2015).
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Objectives and goals
 To ascertain effective results and performances through providing general guidance to
accomplish successful operations and outcomes.
 To make short term planning that assists to meet goals and objectives.
Competencies
 Core competencies determines skills and knowledge which need to perform functions and
operations.
 Increasing brand performances through succeed goals and objectives.
1.2 Factors that considered formulating strategic plan
There are different kinds of factors that create impact to formulate the plan. Therefore,
Neil Westwood’s Magic Whiteboard has responsibilities to assess outcomes of the business in
effective aspect. It develops opportunities to the organisation to promote products and services in
different areas. Hereafter, goals and objectives can be accomplished in the business in systematic
way.
 Industry: Industry is the major element which impact on the performances of Neil
Westwood’s Magic Whiteboard. This is because, promotion from the different strategy
assists to get more customers in the organisation (Ryu, Lee and Choi, 2015). It impacts
positively on the chosen business performances to create productivity at workplace.
 Competition: Along with this, competition is the another element which impact on the
business and its operations. This is because, in the market there are several enterprises as
the chosen enterprise that provide same products and services (Olson, Duray and Olson,
2016). Apart from this, Neil Westwood’s Magic Whiteboard also opportunity to match
their outcomes with other businesses to enhance their profits and revenue in several areas.
 Strength and weaknesses: Strength and weaknesses also determines effective impact to
formulate the strategic plan. This is because, development of results and performances
assists to maintained strength and weaknesses which make effective functioning in
environment.
 Environmental issues and trends: These factors create impact on the enterprise due to
several elements that take place in the business unit. In this way, at workplace of Neil
Westwood’s Magic Whiteboard, internal issues are take place such as staff, services,
skills, resources, etc. In addition to this, there are also certain external factors impact on
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such things that are threat of the outsourcing. Strategic planning committee complied
with scan in environment and information as well. Broad issues potential impact on the
facilities in planning and management industry as well (Yuliansyah, Yuliansyah and
Rose, 2016).
 Mission statements: Sometimes mission statements also impact on the fundamental
reasons which determines fundamental reason for existence and establish the scope of the
enterprise.
1.3 Effectiveness of techniques used in developing strategic business plans
In order to deal with the effectiveness in Neil Westwood’s Magic Whiteboard, there are
several types of techniques implied in the organisation. Therefore, it assists to make effective
functioning in the business.
BCG matrix
In the BCG matrix, following are certain elements included that create impact on the
functions and operations: Stars: Stars determines growth of the enterprise which makes its productivity and
profitability. Therefore, Neil Westwood’s Magic Whiteboard has easily attained more
profits and revenue to perform several functions. It is the effective element which
represent good position of the company in the market (Granados and Gupta, 2013).
Therefore, goals and objectives can be achieve in systematic way. Cash cows: Further, the selected business analysis their goals and objectives at good
location. With this regard, the business facing many issues that reduce their growth and
impact on its results and functions. Cash cows demonstrates low growth of the enterprise
which need to be enhancing for assess business performances. As results, targets and
objectives can be made in effective manner (Thomé and Medeiros, 2016). Dogs: Dogs demonstrates low growth and market share on the enterprise that impact
negatively on the organisation and its performances. Therefore, the company require
diminishing their cost and increasing performances in business environment. It will help
to accomplish targets and goals.
 Question mark: Question mark demonstrates high growth of the company which they
require create proper functioning and sustainability as well. It assists to increase
competitive advantages to create positive impact on Neil Westwood’s Magic Whiteboard.
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Profit impact from the marketing strategy
Profit impact of the marketing strategy determines to maintain sustainability at
workplace. This is because, it assists to develop performances of the selected business unit
profits and revenue. There are several rules, regulations and policies exists that impact on the
company with taking several facts (Khalili Shavarini, Salimian and Alborzi, 2013). Different
facts are describes as follows:
 Business and natural environment
 Competitive position of the enterprise within the selected market and area.
 Determines budget to grow business performances of outcomes
 Strategic development programs
TASK 2
LO 2
2.1 Strategic positioning of VW AG through organisational audit
In order to understand the strategic positioning, VW AG has responsibilities to meet with
their goals and objectives. It assists to accomplish desired results at workplace of the chosen
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Illustration 1: BCG matrix
Source: (BCG-matrix, 2017)

business (Huarng and Mas-Tur, 2015). Therefore, they have to assess their organisational audit
through assess their strength, weaknesses, opportunities and threats.
 Strength: VW AG conducting effective market research so that it assists to increase their
activities and outcomes in successful aspect. In this way, more profits and revenue can be
determines at workplace through assess customer demand and requirements. Further,
resources of the company are very effective so that results and performances can be
manage that enhance brand image of the selected enterprise (Slack, 2015). Beside this,
employees of the selected business unit have high skills and quality so that they have
opportunity to create more profit and revenue in business.
 Weaknesses: Apart from this, VW AG have not effective marking tools. Therefore, their
operations and functions no facilitate to accomplish the targets and goals. With this
regard, they are unable to develop functions in global market to attract potential
customers (Yuliansyah, Yuliansyah and Rose, 2016). Therefore, it creates weaknesses to
promote products and services in different areas.
 Opportunities: There are several opportunities in front of VW AG to enhance their
operations in different areas. In this aspect, government highly support to the company to
launch their products and services through implement innovative elements in it. It is the
greatest marketing opportunities to enhance effective results (Khalili Shavarini, Salimian
and Alborzi, 2013). As results, it enhances their operations in several areas.
 Threats: However, increasing in competition creates many problems and issues that face
by VW AG to operate their functions and operations. Therefore, it is important to assess
the market and pertain effective functioning (Olson, Duray and Olson, 2016). Along with
this, exchange rates and interest in the country also create problem to the chosen
enterprise to launch their products and services.
2.2 Environmental audit of VW AG
Environmental audit conducted through different elements which creates effective
functioning to enhance profitability and productivity. In this way, PESTLE analysis conducted
by VW AG to assess environmental elements in the operations and functions:
 Political factors: Within the UK market, there are several aspects take place which
create impact on business of VW AG. Performances of the company hamper when they
are operated their functions and operations in international market (Ryu, Lee and Choi,
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2015). This is because, at different areas of the world distinctive government take place
which made rules, regulations, tax rates, etc. With this regard, selected business unit need
to follow all rules and regulations which create positive impact on their activities.
 Economic factors: This factor ascertain with the measurement and success of the
economy position of the nation. Therefore, it includes employment, exchange rate,
inflation rate in the market in which VW AG operate. This is because, when company
operate in the market currency exchange creates impact on the organisation (Matzler, K.,
Bailom, Friedrich von den Eichen and Kohler, 2013).
 Social factors: Social factors includes customer perception, lifestyle, many other aspects.
This is because, due to changes in customer perception and taste preferences, VW AG
need to change their operations in products and services. When they are unable to operate
functions according to customer requirement they are unable to get more profits and
revenue (Alsudiri, Al-Karaghouli and Eldabi, 2013).
 Technological factors: Technological factors impact on the functions and operations
when VW AG has not effective and advance tools to implement operations and functions.
Therefore, in the business unit advance technological require to attract more customer
that would be beneficial to enhance business operations (Eaton and Kilby, 2015).
 Legal factors: Legal factors develops in effective manner that enhance results and
performances in successful aspect. In this way, government demonstrates their rules,
regulations through they are able to protect environment. Hence, VW AG also need to
follow those rules which create positive impact on the business.
 Environmental factors: In respect to develop effective functioning, the chosen
organisation has responsibilities to operate their functions which not harm to the
operations (Vlachos, 2016). Therefore, VW AG can easily enhance their profitability
through undertake the objectives and goals.
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2.3 Significance of stakeholders analysis to formulate strategy in VW AG
Stakeholder plays very important role in success of every businesUntitled 1s. This is
because, they provide, using and many other outcomes has been done that make successful
business results in effective manner. In this aspect, at VW AG different employees are
participates such as customers, employees, suppliers, government, etc. (García‐Rodríguez,
García‐Rodríguez and Major, 2013). They are determines effective participation to increase
productivity of the organisation through profits and revenue can be enhance. In order to identify
significance following aspects can be implemented at workplace:
 Ideas and opinion from different people assists to gather relevant information that assists
to give full support towards business objectives and goals.
 With the help of government support, productivity and outcomes will be enhances in the
business environment (Annabi and McGann, 2013).
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Illustration 2: PESTLE analysis
Source: (PESTLE Analysis, 2017)

 Further, strong communication among employees and business also assists to increase
profitability that create opportunity at workplace.
 In addition to this, all stakeholder are importantly participates to create opportunities to
take effective outcomes that enhance profitability and revenue at workplace (Thomé and
Medeiros, 2016).
2.4 New strategy for VW AG
In order to adopt new strategy, VW AG able to attract more customers together in
effective manner. It is the best way to determines profitable outcomes within the organisation. It
assists to make support to produce new products and services. In the new strategy, the
organisation apply online method through they are able to attract many customers together
(Granados and Gupta, 2013). Therefore, they are able to assess their customer requirement which
assists to enhance productivity and innovative ideas within the business. In addition to this, they
can communicate with several stakeholders with social media platform. Therefore, it is the best
strategy to develop effective functioning within the business environment.
Apart from customers, there are many other stakeholders exist who perform effective
functioning in business to cater their goals and objectives (Vaidyanathan and Aggarwal, 2015).
For example, supplier require timely payment so that VW AG has responsibilities to enhance
their performances through cater relevant information in the business.
Following are different strategies explains for the organisation development:
 Growth strategy: Growth strategy assists to VW AG to introduce new products with
adding new feature for the existing products and services. In this aspect, the chosen
organisation can enhance their product line and done their work with competitors. With
the help of new technology, company can grow their effective results as well.
 Product differentiation strategy: In respect to this, product differentiation strategy
create competitive advantages with implementing superior quality and services. In this
strategy, brand loyalty build in VW AG.
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LO 3
3.1 Appropriate of alternatives strategies related to market entry, substantive growth, limited
growth
In respect to develop profitable outcomes, there are different strategies take place which
assists to make effective functioning in the business enterprise. They are as follows:
Market entry strategy
In the market entry strategy, VW AG can easily enter at new place easily. Therefore, it is
the best strategy to operate functions and operations in different areas of the world. With the help
of conducting development program, there are several aspects could be taken at workplace of
business unit that assists to meet with operations and functions (Yuliansyah, Yuliansyah and
Rose, 2016).. As results, the organisation can easily establish their operations in several areas:
 Merger: Merger is the effective process in which VW AG can manage their functions
and operations with other organisation. It assists to determine more profits and revenue to
make profitable the enterprise. Hence, it includes several people, resources and other
elements which could be support to ascertain to enhance organisation performances
(Alsudiri, Al-Karaghouli and Eldabi, 2013).
 Acquisition: Acquisition is the strategy that assists to acquire one enterprise by the other
organisation. It assists to make profitable outcomes in the organisation.
 Strategic alliance: When two and more than two businesses working effectively and
jointly, they can share their assets and liabilities. It helps to the selected organisation to
perform their functions with sharing assets and liabilities (Olson, Duray and Olson,
2016).
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