Strategic Analysis and Strategy Development Report for VW AG (Unit 7)

This report provides a comprehensive analysis of VW AG's business strategy. It begins with an introduction to business strategy and its importance, followed by an application of the Ansoff matrix. The report then delves into an organizational audit, analyzing VW AG's strengths, weaknesses, opportunities, and threats. An environmental audit is conducted using PESTEL and Porter's Five Forces models, followed by stakeholder analysis, identifying internal and external stakeholders and their influence. The core of the report proposes a new strategy for VW AG focusing on product development, specifically electric vehicles, to address environmental concerns and maintain market position. The appropriateness of alternative strategies is also discussed, and the report concludes with roles, resource requirements, and SMART targets for implementing the proposed strategy. The report emphasizes the need for VW AG to adapt to environmental concerns and leverage product development to regain its market share and brand image. The analysis includes a detailed examination of VW AG's strategic positioning, considering both internal and external factors.

UNIT 7
BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1, 1.2 &1.3 Covered in PPT.....................................................................................................1
TASK 2 ...........................................................................................................................................1
LO2.............................................................................................................................................1
2.1 Organisational audit..............................................................................................................1
2.2 Environment audit.................................................................................................................3
2.3 Stakeholder analysis..............................................................................................................4
2.4 A new strategy for VW AG..................................................................................................5
LO3.............................................................................................................................................5
3.1 Alternative strategies appropriateness...................................................................................5
3.2 Justification for new strategy................................................................................................6
LO4.............................................................................................................................................6
4.1 Roles & responsibilities of personnel at various levels while implementing new strategy. .6
4.2 Resource requirements for implementing a new strategy for VW AG.................................7
4.3 SMART targets.....................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
“Business strategy is a better plan for improved future.” Hence, it is necessary to make
appropriate strategies to achieve goals in an organisation. There are various tools and techniques
which are to be considered while making strategies as they have an impact on it directly or
indirectly.
A good business strategy may lead business to endeavour success whereas lack in same may lead
to failure. This document is a complete study which will justify need for strategies in a business
as well as various requirements which are necessary for making these plans to achieve settled
goals.
Various stakeholder’s analysis current positioning of company VW AG while working in New
Phoenix which is a consultancy for strategic planning and is appointed for so by VW AG have
been specified in this justification. There are ample of resources in an organisation which also
need to put to work to have their maximum utilisation as well as their proper deployment a
justification about how to do it is also there in this written report. Target which company can
have for its operations as well as their illustration have been also specified in this study of
business strategy.
TASK 1
1.1, 1.2 &1.3 Covered in PPT
1

2

3

4

5

6

7

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Another Technique to be considered is the Ansoff matrix analysis. This technique uses market
and product pairing (new or existing) to define possible strategies for an organisation.
• Market penetration (existing product in an existing market)
VW AG must make appropriate strategies to penetrate in market. It can take a use of its
brand image for doing so.
• Market Development (existing product in new market)
VW AG have huge existence in market with various locations establishment which is a
very strong point for company.
• Product Development (new product in existing market)
The company introduces new and developed products by innovating them to meet
demands and needs of customers.
• Business Diversification (new product in new market)
Company have various section in which it has diversified products which is a very good
and beneficial for it to have long term existence in market.
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TASK 2
LO2
2.1 Analyse the strategic positioning of a given organisation by carrying out an
organisational audit
Strategic position is a position in which where a company wants to be in the next 3-5 years, it is
about the future of the company which can help to them to make strategic changes in their work.
Organisation audit is a technique to identify changes and problems which might be there in an
organisation. This may include analysis of SWOT of VW AG which will identify what are its
strengths, weaknesses, opportunities and threats (Astrachan, 2010). An analysation of strategic
planning for VW AG have been illustrated below:
 Strengths
VW AG is a very well-known enterprise it has a variety of products which have a very
good brand name in their sectors (Bharadwaj, 2013). Hence, company is very well known
everywhere which is a strength for it as if it will aim to target any market it will be easy for it to
penetrate as it is globally known and acceptable brand. Company is having a brand image among
their targeted customers and it is their key strength and they have experienced and quality
employees which provides them a better work.
 Weaknesses
Company have high-priced product which is not convenient for every consumer to buy.
Hence, low income group people are unable to buy its products which covers a huge part in
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