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INTRODUCTION

Strategic Analysis and Planning refers to an effective procedure or developing shared goal in order to achieve  better growth of an organisation in future. It involves the criterion of making strategies decision to boost up productivity as well as profitability of specific brand. Moreover, it also involves to develop effective as well as efficient plan of action in order to sustain strong position in market in terms of grabbing more profits share in proper manner. The present report is Volkswagen  which is a German  auto maker founded in the year around 1937, almost 81 years ago. It has approximately €76.729 billion revenue and 117400 staff members are working in this organisation in different branches on regular basis to conduct operational procedure properly. This assignment will focus on resources audit, value systems and potential products or services portfolio in context of given company. It will also include discussion about strategies for future growth through identifying beneficial options along with evaluating their effectiveness to gain success in future is described below.  

Resource Audit

The resource audit can be described as a process of determine required sources along with checking available of the same in organisation. There are various kinds if tangible and intangible resources which are required to be evaluated thoroughly for conducting manufacturing appropriately without relevant issue. Meanwhile, it include to identify actual resources and needed ones in specific amount to carrying out operational activities or procedures in terms of producing desired units of product according to demand of the same in market. However, resource audit provide support to know about actual requirements of sources to be collected for further conducting manufacturing goods in proper manner. In case of Volkswagen, they are required to conduct resource audit in respect of gathering needed amount of the same for further production by analysing different resources in which few of them are as under –

Physical Resources – This can be explained as physical sources such as equipments, machineries, inventory, building, land and many more which provide support in production process. However, these physical sources are required to carrying out different types of operational activities or procedures in terms of producing goods of better quality in desired period of time. In addition to this, Volkswagen is required to established more effective physical resource like advanced technological equipments and machines in order to manufacture goods of desired quality at reasonable price in limited duration to satisfy requirements of clients.  

Financial Resources – The financial resources include all these sources from which an organisation can borrow required amount of money to conduct overall operations or apply technical change at work. However, it is helpful to increase effectiveness of production process along with implementing new features to products in terms of achieving more number of customers for brand. In case of Volkswagen, they can audit financial resources and put efforts to collect desired amount of funds as per present requirements along with studying previous finance information of company.

Human Resources – This can be described about staff members of an organisation who are considered as back bone of every organisation because their efforts are always there behind success of business. It involve to hire more efficient employees by thoroughly evaluating their skills, knowledge and abilities for specific designation. Moreover, it is necessary to allocate tasks as per field of expertise of an individual so that they can perform comfortably and maximum outcomes can be achieved their efforts regularly. In context of Volkswagen, they should appoint efficient candidates for respective positions in company and distribute tasks accordingly which facilitate to gain better outcomes to complete desired targets in perfect manner.

Value Systems

The value systems refers to specific concept of every organisation according to which everything should be done on ethical manner. It indicates about to more focus on ethical values rather then other aspects in order to make sure that each activity is required to be carried will bee ethically correct. However, it is essential to follow ethics while producing products or displaying promotional advertisements because their provide support to gain profits in long term and highly beneficial for goodwill of brand. Moreover, there are several standards for an individual and guidelines which are required to be flowed by people working in Volkswagen to obey ethical values for attaining long term profits. At the other hand, it has been analysed that given company only focus on manufacturing of cars for making more money in previous scenario. They always have motive to increase their profits whereas in present situation they focus on strategies to retain their customers for along time in respect of attaining their loyalty towards the brand in appropriate manner.

The value systems in organisations are all about ethical values which ate beneficial to retain people with brand for a ling time and helps to boost up goodwill in market. On the basis of brand image, more customers get attracted towards it which facilitate to increase sales and profits of company. Meanwhile, there are several factors which can be considered in value systems of different businesses such as environment, culture, products, services, values, health and safety and so on. At the other hand ethics is not only followed while dealing with clients but also consider at the time of providing benefits to staff members of organisation. In addition to this, the Volkswagen should provide better quality of products to people at easily affordable prices and also fulfil desires of employees working with them. Further more, customers are helpful to improve brand image and workers are important because they put efforts for success of business.

Ethical value systems is profitable because it helps to make people loyal for brand but it will take more duration of time to achieve the same. At the other hand, ethics may facilitate to gain limited profits for business for long period of time as ethical values ensure to make correct decisions while providing products of people. Moreover, concept of corporate behaviour and values are intrinsic qualities which motivates to focus on social factors as well as believe in truly important aspects while making any decision of business.

Product or Service portfolio including BCG Matrix

The product or services portfolio can be explained as collection of overall goods or facilities which are offered by an organisation to people in order to fulfil their actual needs and demands. It include to thoroughly analysing product portfolio as it renders opinions on stock type, company growth prospects, profit margin drivers, income contributions, market leadership and operational risks. However. It is necessary to focus on these factors as they helps to make more effective as well as efficient strategies to reduce risk and gain maximum profits with achieving growth of business by improving profit share in market. In case of Volkswagen, they are required to evaluate product portfolio by using an appropriate strategy to further attain success of business.

BCG Matrix of Volkswagen Group

Cash Cows – This stage involves high market and share and low market growth in which company has sustained at fixed position by earning sufficient profit but not able to growth their business. It include that company is much capable to achieve better profitability but they do not have more effective as well as efficient growth opportunities to further carried away business ate higher level. Moreover, some of products take a prime position in terms of getting a high return of investment in proper manner. For example, the case cow is considered as an evident form of Porsche with around 21,674 € million annual sale revenue and Audi has 60,128 € million revenue recorded.

Stars – The star stage of BCG matrix can be described about situation of products having high market share as well as high market growth. In this position, they have several opportunities in order to garb more profits share in market along with facilitating growth of business successfully. However, star position of products can be considered as best chances as it provides favourable condition of increasing profits with attaining better growth. In context of Volkswagen, SKODA had recently gained a higher  ratio of sales  in comparison with Audi and the sales revenue for the car has been increased from 8894 € million to 9892 € million.

Question Marks – This stage include low market share and high market growth which create confusion about utilising opportunities as well as improve investment of funds because it is not clear about making beneficial decision. It involves that it is not sure about to consider specific product to increase profit as the growth is up to the mark but profitability is not much sufficient as per investment. In case of Volkswagen, the overall financial performance of Bentley  has declined from past few years. At the other hand, one more question mark is Volkswagen Golf i.e., E- golf has potentially profitable in future but it is required to ensure about decision that it should be a part of financial investment or not.

Dogs – This factors involves low market share and low market growth which describe about weak market position as well as difficult to make profits. There are certain products faced dog stage of BCG matrix do not able to earn profit and not attain growth which are not beneficial for business. Moreover, in case of Volkswagen company, dog is VW Beetle because chance for its growth are not likely to be significant as comparison to other passenger or luxury cars. Additionally, the company is only able to sell around 15000 Beetles which shows a sharp decline in demand of auto mobile.

Potential future strategic growth

The potential future strategic growth of business is required to use more appropriate strategy in order to gain growth and success in forthcoming time. It include to make more effective as well as efficient policies or techniques by utilising accurate models to apply changes or introducing fresh concept for achieving more profit share of market properly. However, it is helpful for Volkswagen to use Ansoff matrix in order to attain potential future strategic growth which are explained further –

Market Development –  The market penetration can be described as to utilisation of existing products or facilities in different geographic areas which helps to gain more number of customers and spread brand in other countries as well. It can be done by different customer segments, make entry in foreign markets and sell goods in new areas. In context of Volkswagen, the can use this strategy in respect of increasing profits and expand brand at different market places successfully.

Market penetration – This strategy focus on increasing sales of current products or services by making effective policies to attract customers in same market place. It can include reducing price, improve promotion, acquisition of rival in similar market and modest product refinements. Moreover, Volkswagen can apply this strategy to boost up sales or present products in market for increasing profitability which facilitate to attain growth of business.

Product development – The product development refers to introduce new product with fresh and innovative concepts in existing market for fulfilling aim of achieving growth. In addition to this, Volkswagen can research to develop new products or joint development with other company in order to attain better profits and growth.

Diversification – In this part, it include to introduce new product in fresh market place in terms of growing market share in proper manner. It involves more risk factors because both product and market development is required to achieve desired outcomes of efforts for the same. The Volkswagen can apply this strategy by launching fresh food with innovative idea to gain more profits.  

At last but not the least, most favourable strategy is diversification for Volkswagen Groups as they can launch an electric car through utilising advanced technology along with adding effective feature in the same. It is helpful to grab more market share as well as growth of business by increasing number of customers and profits.

Identification of options

 It is important for Volkswagen to identify actual feasible growth opportunities in order to enhance their profitability. As per the above stated ansoff matrix, it has been identified that product development is the best option for the mentioned company in order to increase their business growth. In this Volkswagen can launch electric bike in the existing market so that customers can use environment friendly vehicles. Product development refers to the situation in which organisation introduces completely in new product in existing market. This kind of growth opportunity is beneficial for Volkswagen, as the company is already successful across the world. It can be said that even though company is not familiar with new product but it is easier for organisation to persuade its customer in existing market.

Apart from this, it can be that Volkswagen can also expand its product portfolio which will increase number of option for customers. The  company should launch electric bikes in the developed countries, where people are mainly facing problem of traffic. As a result, the option of new product that is helpful for organisation as customers will give more preference to it because of its new feature. Electric bikes are beneficial for environment as it not polluting external environment.

Evaluation of options

Introducing an electric bike is beneficial for Volkswagen as it will help company in increasing influence of customers towards it new products in existing market. As per the analysis, it can be said that electric bikes are environmental friendly as it does not place any harm to the surrounding area. Electric bikes are quite expensive for the customers but not more then cars. 


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