Business Strategy Report: An Analysis of VW AG's Business Strategies

This report provides a comprehensive analysis of VW AG's business strategy. It begins with an introduction to business strategy, defining key terms and exploring the issues involved in strategic planning. The report then delves into organizational and environmental audits, utilizing SWOT and PESTLE analyses to assess VW AG's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, environmental, and legal factors impacting the company. A stakeholder analysis, including Mendelow's matrix, is also conducted to evaluate stakeholder power and interest. The report further examines strategies relating to substantive growth, such as market entry strategies, mergers and acquisitions, and strategic alliances. Finally, it discusses the roles and responsibilities for strategy implementation, monitoring strategies, and the significance of these elements for the company's success.

BUSINESS STRATEGY

Table of Contents
................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Strategy context and terminology.....................................................................................3
1.2 Issued involved in strategy planning................................................................................4
1.3 Planning techniques..........................................................................................................4
TASK2.............................................................................................................................................5
2.1 Organisational audit..........................................................................................................5
2.2 Environment audit............................................................................................................6
2.3 Significance of stakeholder analysis................................................................................7
TASK3.............................................................................................................................................7
3.1Strategies relating to substantive growth...........................................................................7
3.2 Future strategies ...............................................................................................................8
TASK 4............................................................................................................................................9
4.1 Roles and responsibilities for strategy implementation....................................................9
4.2 Implementation of new strategy.......................................................................................9
4.3 Monitoring strategies........................................................................................................9
CONCLUSION..............................................................................................................................11

INTRODUCTION
Business strategies is very essential or significant for an organisation as it is very helpful
in reaching particular goals and objectives. Improvement of company policy is the main function
of administration. This report is based on on the task of the business strategies and on the case of
VW AG. There are different sources which impact the idea of the business(Ang, 2011).
Environment and organisational audit will also be conducted in this task which will be used to
study policy positioning. Stakeholder venture are very essential for an enterprise therefore it is
very needed because they analysis and making formation of strategies.
TASK 1
1.1 Strategy context and terminology
A effective a proper company idea in an organisation plays a vital and significance role
for achieving core competencies, vision, mission and goals. This effective strategies which are
used by organisation then it will be assist in reducing and decreasing management cost. As a
output of it, profit and sales will get changed. VW AG can also take many opposition benefits
from their challenger's. Mission, vision, goals, core competencies and objectives are as follows:
Mission: The mission of this company to build long term relationship with their employees and
to provide support in the formation of fair judgement regarding to business needs and wants. It is
needed to decreasing standard and cost.
Vision: In this way which are focus on the market and brand positioning. It may be global
economic and environmental leader as well as manager between auto-mobile industry
manufacturers.
Goals and objectives: Company also wants to maximize their market growth and share which
will be assist such as supportive in achieving agonistic profit from challenger's. It is very
important to define their position in market places (Burlton, 2015). Training is also being
produced to workers and staff members through which productivity and performance will be
developed.
Core competencies: VW AG has large amount of product and variety of services in order to
produce their target buyer so as to complete their requirement and need. Core competencies very
essential because it was used for achieving opposition profit in a market place.

1.2 Issued involved in strategy planning
Strategies planning is a way with the protect as well as support of which an organisation
can specify some strategies and can also make needed decision in consider with assignment of
factors so that business can move technique. Strategic planning is very important , with the
support of this ideas business also provide some direction which are needed for executing
system. There are various issues are as below:
Opposition: It is very essential to shaping the challengers situation in market place, and this type
of sources must be take into deliberation when business makes articulation of strategies ideas.
VW AG cannot attain success, if the study concerning challenger's nature will not be made.
Challenger's strengths and weakness should also be inspected by an organisation and way must
be calculate how challenger's are fulfilling customers need.
Industry: While making deliberate ideas in a company, it is very essential to make assessment
of economy( Champoux and et. al., 2012). The previous development and growth, innovative
market freshers, aggressive profitability, future threats and market size will be calculated when
there will be estimation of company.
Strength and weaknesses: Enterprise have different strengths and weakness which must be
insistent so that VW AG can make effective growth and success. There are various internal
factor, it is very important to analysis strategies plan. Employees performances, product
manufacturing process, enterprise culture, effective decision making process are called internal
factors. It is also needed to study weakness so that organisation will be capable to make
development .
1.3 Planning techniques
The planning techniques determine the BCG matrix in this organisation. The VW AG
company develop the BCG matrix it has four cells that create the market growth rate.
This matrix determine the stars, cash cows, question mark and dogs in the process of planning
techniques(Helms and Whitesell ., 2013).
It is a effective technique because it assist the enterprise in recognizing in which type of location,
much factors and investments must be used there.
Stars: In this position, is is known as star. VW AG is having market stock and high growth.
They have much various opportunities are entitle as company leaders as well as managers in a

market place (Davis, 2012). They are needed high growth and investment for increasing high
market stock.
Cash cow: In this condition, there are different companies who have less market development
such as growth and high stock. These are such type of firms who are creating better market place
but have low growth.
Question mark: It is very essential because it was having large amount of market development
and minimum market stock. If the market share of VW AG will be low then an organisation will
ingest maximum amount of money.
Dogs : In this types of position, companies have minimum market share and growth. In such
condition, enterprise can be sink as well as wind up. Business are entitle here and calculated
issue in creating revenue.
M1
There are different strategies which are define the company success. BCG matrix is very
essential to evaluate current position and situation of company in market place. In this task that
identity goals and mission.
TASK2
2.1 Organisational audit
There are various strategies position of a company which can be define various ways.
SWOT analysis can be made market situation are as follows:
STRATEGIES WEAKNESSES
 Best type of classification strategy is
being used by VW AG.
 Different joint investor with auto-
makers of UK which assist in
increasing revenues(Helms, and
Whitesell, 2013).
 Various kinds of structure are being
provided to buyers through which are
important as well as attracted.
 There are high rate of auto mobile
products.
 Market stock is very low in United
kingdom market place.
 Bed and negative policies which
decrease brand goodwill of VW AG.
 Market stock and growth is very less in
food industry market of US.
OPPORTUNITIES THREATS

 Competences and knowledge can be
collected with the support of accession.
 Supply and demand regarding auto
vehicles product.
 Exchange economy rate of Euro in
minimized.
 Maximize product price of raw material
which will impact companies benefits.
 There are new tools and technique are
being used by challengers in their
products which have effect on
company.
 International challengers are
continuously increase.
2.2 Environment audit
This audit determine the PESTLE analysis in this organisation. This is determine the
political, economic, social, technological, environmental and legal factor. Political factor
determine the tax policy, labour law and product and services productivity in the organisation.
Economic factor create the best product related to the economic factor and take the best price of
the product in this organisation(Onkila, 2011). Technological factor develop the many
techniques to identify the company cash flow and their position in this organisation. Pestle
analysis is very essential because it define company external analysis. Those factor are as
follows:
Political factors: Company is operating in approx 150 countries, therefore every location is
having various political features. Various government legislation which may impact him in
defined ways and factors.
Economic factors: This type of sources is having important effect on working and entities of
companies. This factor involves different policies like fiscal and monetary. All these factor
impact working of an organisation.
Social factors: This sources is very essential to evaluate market condition and position. It was
exist in an environment has effect on VW AG like consumer performances, choice, cultural
environment, customers habits in United Kingdom performances of buyers is to purchase luxury
items.

Technological factors: It is very importance to make development of technological sources
which are includes advanced and creative technologies in an enterprise(Oyedijo, 2012). Auto
mobile industry use various types of technologies so as to make consumption such as production
of various items,
Environmental factor: Under this factor provide best effect on the business operation. VA GA
is a best auto mobile company which make production of various items like diesel and petrol
products which assist them to attract different customers.
Legal factors: In this factor which define rules and regulation, it is effecting business
development and growth. Related to this, there are several legal issues are also faced by an
enterprise as well as company in its working.
2.3 Significance of stakeholder analysis.
This analysis determine the stakeholder important in the company. This analysis
determine the Mendelow analysis in this organisation(Palmer and et. al., 2015). This analysis
define the level of the interest and power of the stockholder in this organisation, interest level
define the low and high level of the stockholder performances. This analysis determine the four
boxes that define the minimum efforts, keep informed, keep satisfied and key players and
participation in this company. There are different steps are as follows which are having
development in Stakeholder.
 The first step which have development in classification of stakeholder is used to make
individual study who are involved.
 The other step is very essential to identifying capacity, power, interest and influences
which consists of this person. They having high power and low interest which are
influences on technique.
 They who are having high interest and low power must be literate as the are needed an
organisation.
 The next one is define better communication and understanding of effective person such
as stakeholder in an enterprise is as to have some support.

Illustration 1: Stockholder gird,2017
M2
Appropriate methods and techniques which are define the company SWOT and PASTEL
analysis. Both are important to evaluated company internal and external factor(Pugh, and
Bourgeois, 2014). Internal sources specify strength and weakness. The external sources like
political, environment and other factor.
TASK3
3.1Strategies relating to substantive growth
There are various alternative strategies that are used by VW AG so as to have particular
development and growth. There kind of technique are as follows:
Market entry strategies
Merger and acquisition : It is important that define as the activity where various enterprise
integrate and make performance as individual organisation of firm. In this 100% ownership of an
individual business is buy a particular economy.
Develop growth: Where there is an improvement is an enterprise in a proper manner as it was
there in operating them. It is also defined organic growth(Ross, and Blumenstein, 2013).

Strategic alliance: in this fact there more that individual company share their liabilities as well
as assets in order to get goals and objectives.
Licensing and franchising: It is very essential which is used by regulatory company to permit
another enterprise to use their emblem and in income tax return franchising is not provide by
company but different services like product and service maintenance cost etc.
Substantive growth:
Horizontal integration: In this way defined individual companies make development in firm at
the production time period in equal or different firm.
Vertical integration: When various enterprise have their development as well as improvement in
various production levels in equal industry than it is define as vertical combination.
Limited growth:
Product development: It is very essential which define creating, designing and marketing of
goods as per the need of customers.
Market development: In this industry produce such as offer old products and services in various
market places.
Market penetration: In this way which define existing market is complete by maximizing
market stock of old product which can be define with the assist of discount and
advertisement(Shirey, 2011).
3.2 Future strategies
In respects with the lookouts of the market place, VW AG needs various innovative
notions and products which will help in collecting the market location. For the development and
growth in a future, enterprise must do information regarding all market place which will help an
enterprise in the improvement of innovative items related to the buyers requirement so as to
make classification in items and services(Oyedijo, 2012). It is very essential to create innovative
market division which will assist in making benefits.
Company should also make best use of vertical combination in order to maximize enterprise. It is
very important and they can also regulating by making association with the various auto mobile
makers so as to enhance innovative market division. The need of company is having better and
good place in the market location and can make best benefit with the administration with the

innovative corporation. Company will also be capable to have division of location by improving
new core as well as line items.
M3
In this task we define different strategies and technique's with the assist of funding. This
is also define the company future strategies and substantive growth. In this way create the goals
and objectives of an enterprise.
TASK 4
4.1 Roles and responsibilities for strategy implementation.
The role and responsibilities is very important to define their duties according to
businesses operation. The strategies execution needed a personal who can provide best direction
to other individuals. It is essential to make diversification of task among workers according to
their duties in an organisation(Helms, and Whitesell, 2013). The workers of VW AG have duties
for the evaluation of technique's must have much type of responsibilities which can explained in
a fair value.
Apart form this which it is needed with the assist of strategies ideas, an individual of VW
AG is having some responsibilities for the maintain their records and execution of strategies.
Controlling and monitoring can be specify in the study of successful implementation of policy.
An effective duties is also being played vital role by the lower and operational level of
management.
4.2 Implementation of new strategy
There are different types of resources which are necessary for the implementation of
innovative policy in VW AG. Types of resources are as follows:
Human resources: Under this resources is very essential because it is used for the execution of
policies as well as it also used company productivity and performances.
Financial resources: There are two methods with the assist of which account can be create
these methods like equity and debt etc.
Environment: It is necessary because it is very supportive to enhancing of strategy. It means that
if there will be any changes and alteration in the policy of enterprise then it will need change in
the environment factor. It will help to to achieve goals and objectives(Davis, 2012).

Material and time resources: This kind is very important to identify time management and
implement different policy. VW AG should also use various material of machines for making
improvement of good quality and strategies of technology.
4.3 Monitoring strategies
Smart objective is very essential for every organisation as well as company to achieve
goals and objectives in a proper way. VW AG which should be define in nature, they must be
calculate with needed criteria. Smart stand for specific, measurable, achievable, realistic and
time bounded project.

The Gantt chart show the project duration which the company complete their project in giving
the time period. Product like machinery design will done on the time duration 6 days. Redesign
items which done on 2 days. This chart also show various products and their objectives in the
same time period.
CONCLUSION
As per the mention report determine the business strategy in this organisation and
develop the company mission, vision, objectives and goals. This report also create the best value
of the company product and reviewing the company strategy planning. The POSH-NOSH
company develop the best product in the many country and identifying the best techniques of the
product. This report also define the organisational and environment audit and create the swot
and pastel analysis of the company. As per the report identifying the importances of the
stakeholder and develop the mendelow matrix.

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