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Business Strategic Planning - Volkswagen

University: UK College of Business and computing

  • Unit No: 10
  • Level: Undergraduate/College
  • Pages: 6 / Words 1439
  • Paper Type: Assignment
  • Course Code: D/508/2498
  • Downloads: 710
Question :

The scenario of this report is based on the strategic analysis of Volkswagen in order to develop an understanding over business strategic planning, strategic positioning, implementation of theory and so on.

  • Determine the procedure of strategic planning in the context of Volkswagen.
  • Describe how Volkswagen can formulate new strategy in their business operations.
  • Discuss the approaches to strategic evaluation.
  • Analyze how to apply all the chosen strategy in the business activities of Volkswagen.
Answer :
Organization Selected : Volkswagen


Business is define as core aspect which get operated with differ kind of strategies in determine manner. It is really essential to craft such kind of framework which enable and facilitate to draw better and signified things in frame of manner. Thus, business strategy is classified as such consideration which enable and support in performing each and every consideration of operations better and in appropriate manner. This project is based on Volkswagen which is one of famous automotive organisation in the world but after global emission scandal there sales get impacted most. Thus, after this aspect, their sales get reduce and for that they craft certain number of strategies in order to deal with them better. This project involves about understanding of the process of strategic planning so that better and define outcome would get assess properly. Moreover, to deal with changes, a new and appropriate strategy need to crafted and formulated with perfect evaluation of them. Thus, once such strategy get evaluated then it need to implement in define and determine manner.


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2.1 Analysing the strategic positioning of VG AG

Strategic positioning is define as the procedure in which organizations perform unexpected exercises in comparison to its rivals or same exercises in an alternate way. This encourages them in turning into an unrivalled entertainer in the market. Volkswagen is an automotive organization that is effectively offering its different brands like Bently, Bugatti, Audi , Porsche and so on they are working in excess of 150 nations and they are having their two noteworthy ventures in china as well. In request to direct an organisational review, the organization should do SWOT investigation in order to dissect the advantages and disadvantages of the business. The SWOT analysis of Volkswagen is as follows -


  • Volkswagen are having an extensive variety of autos that are giving clients enough alternatives to look over.
  • Their mark presence over the world is extremely powerful as compared with other automotive venture.


  • There was a feeble point that was looked by the organization in which 5 million vehicles were come back to the organization
  • They are having vast rivalry from alternate brands in the market who are prepared to take the edge possessed by Volkswagen.


  • They are having favourable position since now-r-days buying of an automobile is expanding in the market as they are viewed as the need now.
  • The brands related to it is enjoyed all around so they have a chance to open their stores at those spots where they are absent.


  • In light of an issue in Volkswagen, in excess of 5 million autos were come back to the organization so it made a risk to the organization as their image notoriety will be harmed severely.
  • An ever-increasing number of organizations are entering in this part so the opposition will increment just and won't diminish.

2.2 Environmental Audit

According to the perspectives of US Environmental insurance, Volkswagen is offering autos which are delivering 40 times more contamination than permitted. Along these lines, according to the administration orders they need to bring back their 482000 autos with the goal that no further autos would be sold by the organization having this imperfection. In this way, if these autos would be sold than it would be extremely risky for the people and the earth also. In this way, so as to take care of this issue, the key arranging chief of the organization will do condition review with the goal that they can make a positive picture of the organization in the market by and by. So to perform Environmental review, PESTLE examination should be led which is as per the following:

  1. POLITICAL – Volkswagen can be profited in this part as they need to pay less duties and charges since they are working in car area. There are different markdown strategies accessible that is urging individuals to purchase their autos.
  2. ECONOMICAL – The referred to an organization is having an expanded business and is additionally going to actualize far-reaching approach which will enhance its method for working.
  3. SOCIAL – according to the insights one might say that individuals living in the UK are more defensive towards condition so the referred to an organization should make a point to create products that are condition cordial.
  4. TECHNOLOGICAL – Volkswagen is utilizing innovation in its vehicles in order to give them a cutting edge and inventive look however it can be in some cases unsafe for the earth additionally so organization ought to be certain that it won't cause much contamination and after that lone do such gigantic venture.
  5. LEGAL – It comprises of plans and strategies that are influencing the business activities. If there should arise an occurrence of referred to an organization, they should ensure that they are following every one of the approaches made by the government.
  6. ENVIRONMENTAL – They should make their items that are condition amicable with the goal that the general population who are utilizing it are protected and sound thus will be the earth.

2.3 Significance of stakeholder analysis

Stakeholders are those people or gathering or association that is engaged with the association in a few or the other way (Jocovic and et. al., 2014). They can be as investors, providers, chiefs, banks and so on. A partner investigation can be characterized as a method in which desires, positions, and enthusiasm of each partner are known while executing other techniques. It essentially indicates how unique partners are influenced by organization extends, their advance and productivity. The significance of partner investigation while planning another technique are -

• An organization gets imperative conclusions from its partners

• Some intense partners are a decent help to the organization

• They help in understanding individuals' response in their organizations.

Figuring the business procedures will help the organization in accomplishing both long haul and here and now destinations in the organization however it is just conceivable if its execution is done well. This is essential for those sort of organizations who are thinking to grow their business in new territories whether it is national or global (Köseoglu and et. al., 2013).

In Volkswagen, the necessities and desires of partners are kept on top since they feel that it is critical for the achievement of the organization. Partner examination is vital in this organization as they go about as an emotionally supportive network for actualizing the tasks. In this occasionally a couple of partners are more engaged in executing the thoughts and some are not associated with any movement so this makes a distinction. It is prescribed to the administration of the organization that they need to counsel a couple of specialists before executing the venture and if the administration will get this guidance from the partners it then it will be useful for the organization.

2.4 Present a new strategy for VG AG

Making a business procedure is essential for the organization as it causes in offering headings to the representatives to do their work in like manner. In the event that it is executed right, at that point it will profit the organization and increment its benefits and efficiency both. The new systems that will be planned by the best level administration of the organization will help them in achieving their destinations all the more intently.

Organization is advised to make another system on the grounds that the brand picture of organization is annihilated after the discharge outrage. So the organization should a powerful which will help them in picking up a similar esteem and trust of the clients which they were accepting prior.

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