Marketing Mix for Hair Salon

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Individual Assignment 1(25%)|
Module’s Information:|
Module| KM 324 BUSINESS MANAGEMENT STRATEGY|
Session| January 2011|
Program| BITCUN|
Lecturer| Ms Wong Choon Fah|
Coursework Type| Individual Assignment 1|
Percentage| 25% out of 100%|
Hand-out Date| Week 6|
Due Date| Week 12|
Student’s Declaration:|
I declare that:I understand what is meant by plagiarism.This assignment is all my own work and I have acknowledged any use of the published or unpublished works of other people.I hold a copy of this assignment which I can produce if the original is lost or damaged.[Name/ID] _______________________________________[Signature] _______________________ [Date] _____________________| Learning Outcomes Assessed:|

LO1| Apply and critically assess techniques used for environmental and a resource-based analysis.| Assessment Criteria| Total Marks| Given Marks|
| Discuss the 6 key characteristics of an effective strategy of Volkswagens.| 30| | | Using the Exploring Corporate Strategy model, discuss issues relating to each of the three elements of strategic management. These elements include strategic position, strategic choices and strategy in action.strategic positionstrategic choicesstrategy in action| 152020| | | Proper citation and referencing system| 15| |

| 100| |
| Penalty| |
| Final Mark (25%)| |
Lecturer’s Comments|
|
Penalty for late submission:|
1 day – minus 20% of total mark awarded2 days – minus 50% of total mark awarded 3 days – 0 mark for this piece of coursework|

6 KEY CHRACTERISTICS OF AN EFFECTIVE STRATEGY OF VOLKSWAGENS 1. Long-term direction
Volkswagen (VW) released a proposal on Feb 26 with target of growing annual vehicles sales from the current 1 million to 2 million as well enlarging its fleet by adding and also renewing at least 4 models per year by 2018. VW will open a new chapter for the company's operations in China. (Li Fangfang, 2009) VW is currently spending $1billion to build a new plant in Chattanooga, Tennessee, for the production of a midsize sedan in 2011 with initial capacity of 150,000 cars annually. VW’s plans for 2018 include increasing its U.S market shear from 2 percent to 6 percent by selling 800,000 vehicles per annum in the U.S.A. By 2018, VW plans to export 125,000 vehicles from North America to Europe. VW’s plans include large expansions at its Puebla, Mexico plant. (Fred R. David 2011) The initiation of Strategy 2018 has begun, along with the long-term objectives of VW in China. It tags along from the successful reformation, together at the same time with the Olympic Program; we implemented in the coming along with the 2008 Games, said Winfried Vahland, executive vice-president of the VW in China (VGC). (Li Fangfang, 2009) 2. Scope of an organization’s activities

VW is focusing on the emerging markets such as china and brazil for the purpose reducing cost of production due to cheaper labor cost as well as raw materials. As a growth strategy VW are planning to widen their scope of activities to Indonesia where Toyota already has a manufacturing plant that dominates the market. This will be a challenge to VW but long term excellent strategic planning might help the market penetration. VW owns several luxury carmakers, including AUDI, Lamborghini, Bentley, and Bugatti. Other VW makes include SEAT (family cars, Spain) and SKODA (family cars, the Czech Republic). VW operates plants in Africa, the Americas, Asia/Pacific, and Europe; VW holds 68 percent of the voting right in Swedish truck maker Scania and about 30 percent of MAN AG. The VW has further extended its market leadership in Europe. Besides the innovative product range, this achievement is attributable to expert market coverage by the VW, the brands and the importers in these countries. (Martin Jahn, 2009)

3. Competitive advantage
VW is the leading auto firm in china, not Toyota or Nissan. VW’s market share in...
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