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An assignment on
Business Strategy
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Table of Contents
Executive Summary....................................................................................................2
Task 1.........................................................................................................................3
1.1 EXPLAIN THE ROLE OF STRATEGY, MISSION, VISIONS, OBJECTIVE,
GOALS AND CORE COMPETENCIES OF AUTOGLASS.....................................3
1.2 Review the vital issues involved in Strategic planning in Autoglass..................4
1.3 Explain minimum three planning technique for Autoglass.................................7
Task 2.........................................................................................................................9
2.1 Produce an organizational Audit for Autoglass.................................................9
2.2 Carry out an environmental audit for Autoglass using at least two approaches
..............................................................................................................................10
2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass.....13
Task 3.......................................................................................................................15
3.1Analyze possible alternatives strategies relating to substantive growth, limited
growth and retrenchment......................................................................................15
3.2 Select an appropriate future strategy for Autoglass........................................18
Task 4.......................................................................................................................20
4.1 Compare the roles and responsibilities for strategy implementation of
Autoglass..............................................................................................................20
4.2 Evaluate resource requirements to implement a new strategy for Autoglass..21
4.3 Discuss targets and timescales for achievement for Autoglass to monitor a
given strategy........................................................................................................21
Conclusion................................................................................................................22
References...............................................................................................................23
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Executive Summary
Autoglass has been able to emerge itself as a reliable source of repairing centre of
windscreen as it ensures the most effective and long lasting repairing service for its
customers.
Performing several result. It shows that Autoglass is happily providing services 92%
of the customers. At the very beginning when they have started to operate their
business, they have given prior on the necessities and also offering any kind of
modification needs as far as the windscreens are concerned.
So within about no time, Autoglass has been successful in their business operation
and at present they have now around five hundred branches all over the Europe.
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Task 1
1.1 EXPLAIN THE ROLE OF STRATEGY, MISSION, VISIONS,
OBJECTIVE, GOALS AND CORE COMPETENCIES OF
AUTOGLASS
MISSION:
“To satisfy the customers” that is the main mission of Autoglass Company
(Autoglass Company). This customer satisfaction is ensured by providing the best
repairing services.
VISION:
The fast growing Autoglass Company sets its vision compatible with their mission of
providing the top level of service towards the consumers (Armstrong, G., & Kotler,
P., 2006). The satisfactory rate has been increased up to 92% and it has become
possible for their strategy of establishment of a wide network of services (Autoglass
Company). Thus the firm can define its strategic boundaries with the help of this
strategy.
CORE COMPETENCY:
Any kind of broken or damaged glass of any model can be replaced by the them and
it is their core competency (Autoglass Company). Besides that the company
provides fleet services of replacing or repairing any kind of broken or damaged glass
to the customers.
Strategic Intent
The notion of strategic intent suggests that there is a general outlook on where the
business should be going rather than a definite statement of an expected conclusion
and this means that there should be abounding of flexibility inside the declaration to
permit for staff start, group assistance and adaptation in lightweight of altered
attenuating factors (Ivanauskiene, N, & Auruskeviciene, V., 2009).
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Objective and goals of Autoglass
The main target of Autoglass is to persuade their customer by repairing or restoring
broken windscreen of any vehicle. The aim of Autoglass is to make their enterprise
augment and assist the international clientele (Autoglass Company). They are
increasing their enterprise by charming the customers.
Strategic Architecture of Autoglass
The strategic architecture of any association is the method of responding the five
fundamental inquiries of making the strategy.
1.2 Review the vital issues involved in Strategic planning in
Autoglass
In order plan strategies and implement strategies there are some vital issues that
need to be considered. So Autoglass might face affray in beside future.
Autoglass is putting their aim on the customer’s fondness and customer service.
They have reached the largest approval grade in the service commerce just by
restoring the windscreen in a cost effective way. Autoglass should be clientele
oriented and try to boost their service portfolio in alignment to rendezvous with the
competition. Based on the case, Ansoff’s model can be used to analyze the
competitive advantages (Kotler, P., 2000).
COMPETITIVE ADVANTAGE OF AUTOGLASS
Autoglass has captured a huge market segment of different types of services related
to the windscreen. It has made them a major service provider of windscreen
(Autoglass Company). As it is a fast growing company so their competitive
advantage analysis will be very helpful. Ansoff’s Growth Matrix is a good option for
the analysis.
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From the scenario of the case study we found that increasing the market share the
Autoglass Company is now able to serve 1 million customers suffering from different
windscreen problems (Autoglass Company). So, we think the company has potential
capability to launch side view mirror products simultaneously with its services related
to the windscreen. Different risks are associated with the four strategies in the
Ansoff’s matrix. The strategies are:
1. Market penetration – By following this strategy Autoglass can surplus its
current market segment by selling and attracting more of their products. If it is
done extensively Autoglass might lose focus on their main objective.
2. Product development – “Side view mirror” which is a new product can be
brought to the existing market of windscreen to capture more customersin this
strategy.
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Existing Product New Product
Existing
Mark
New Market
Market Penetration
Product Development
Market Development
Diversification
Figure: Ansoff’s Model
3. Market development – It is the strategy to attain new customer groups.
Market segments can be increased to do so by the company to capture new
customers.
4. Diversification– This strategy is used to avoid the risks by introducing new
product in new market to spread the risks with the previous one.
It has a great opportunity in the market. A target of three years can be set to develop
a new product, create its demand in the market and to attain more customers of the
product. Besides that a suitable geographic area should be determined for
establishing a huge market and for the supply of good quality products the criteria of
the efficient supplier should be determined during the targeted period.
DEFINITION OF TOP-DOWN AND BOTTOM-UP
Top-Down: A top-down approach is basically the breaking down of a system to
realize insight into its integrative sub-systems (Grant M. R., 2010). Autoglass is
victimization the approach with success in their development.
Bottom-Up: A bottom-up approach is that the piecing along of systems to relinquish
rise to a lot of advanced systems, therefore creating the first systems sub-systems of
the aborning system (Grant M. R., 2010). Autoglass provision this approach with
success to supply the services to the shoppers.
1.3 Explain minimum three planning technique for Autoglass
In order to grow in the industry Autoglass can use three techniques, and they
1. BCG Growth Share Matrix
The Autoglass Company is capable of dividing their and manage a synergy in
the service portfolio. The above matrix shows that an organization faces four
types of consequences (Addmour, H., & Ayish, H., 2005).
The strategies are:
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Stars: High Growth and High Market Share
If managers can make the business profitable and maintain a steady
market share then it will result in the cash cow and the Company can
harvest cash from the business.
Cash Cows: Low Growth but High Market Share
In the market, the merchandise can attain low growth however it have
the very best market share from that the organization will flip in
revenues and maintain financial gain.
Dogs: Low Growth and Low Market Share
Incurring any unnecessary costs should be avoided by organization.
Question Marks: High Growth but Low Market Share
It indicates to the products that are newly introduced in the market and
will gradually earn mass acceptance.
2. Strategic Position & Action Evaluation Matrix (SPACE)
This matrix has four quadrants which indicate the position of the organization
and its reaction accordingly. Considering Autoglass’s position in the market
aggressive strategy can be a good option which can also be used as the base
for SWOT analysis.
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Task 2
2.1 Produce an organizational Audit for Autoglass
SWOT ANALYSIS
Strengths
Autoglass provides a premium service at low cost.
High safety features in the product are maintained.
The replaced or repaired windscreen ensures high visual clarity.
Weaknesses
Autoglass is quite reluctant in brand promotion.
It is seen that lack of advertisement is present in this company.
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StrengthsLow costSafetyVisual Clarity
OpportunitiesIncreasing growth rateNew Product
WeaknessesLess promotion of the brandLack of advertisement
ThreatsSuppliers CompetitionGeographic LocationGovernment Policy
S W O T
Figure: SWOT Analysis
Opportunities
As very few firms in the industry are providing the services as the Autoglass,
so it has great opportunity to expand the business.
Rear view mirrors or side view mirrors are possible options that Autoglass
may try to produce as they have capability
Threats
It is difficult to determine the quality supplier. Suppliers’ competition is very
high in the industry.
If the geographic location is not situated in the proper market, then it becomes
a threat for the business.
The government policies have a vital role in shaping and arranging the
business market.
2.2 Carry out an environmental audit for Autoglass using at least
two approaches
The strategic decisions are very much influenced by the scenario of the working
environment (Addmour, H., & Ayish, H., 2005). The factors can not be affected by
any single organization. Now to understand the working environment scenario,
PESTLE analysis is very helpful (Kotler, P., 2000). This analysis helps the
organization to maximize opportunity and minimize the threats.
PESTLE ANALYSIS
Political
Political climate differs from country to country and the business strategies
are influenced by the policies.
Government stability: This may affect the future conditions in a country.
Various taxation policies in various countries.
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Economical
The purchases of the organization are influenced by thebuying capacity of
people.
Level of economic activity that affects the need for windscreen.
Socio-cultural
People’s lifestyles and preferences of products influence the industry.
Which mean to be chosen (Automobile or other means) that depends on the
socio-cultural norms.
Technological
The design technology.
The manufacturing technology of windscreen.
Legal
As windscreen is a safety product so legal provisions relating to safety
measures.
Various laws regarding consumer and employment are greatly emphasized.
Environmental
Weather, climate, climate change and many other environmental facts can
affect in the business.
It is very important for the management to understand the overall context of the
industry. Porter’s 5 forces analysis is helpful in this fact (Melody, Y. & Kevin, H.,
2000).
PORTER’S 5 FORCES ARE:
1. The threat of new entrants
Economies of Scale: This means scale economies in the production which is
generally regarded a very low threat in this industry.
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Access to Distribution Channel: It is the access to distribution channel by
distributing the product in the market and creating the demand of the product.
2. The bargaining power of customers
Number of supplier Companies: The number of supplier companies
controls the purchasing power of the customers.
3. The threat of substitute products
Prices: In the industry price matters a lot. Consumers switch the preference
of product on the basis of low price and high quality.
4. The amount of bargaining power suppliers have
Number of Buyer Companies: The number of companies who are
purchasing raw materials for manufacturing windscreen from number of
suppliers.
Threat of forward Integration: It is the threat from the supplier who can
integrate with customers to produce the same product.
5. The intensity of the competitive rivalry
Number of Competitors: the number of competitors is comparatively low in
this industry.
Rate of Industry Growth: the industry has a huge growth potentiality.
2.3 Explain the significance of stakeholders’ analysis in relation to
Autoglass
THE STAKEHOLDERS’ GRID:
1. The top left part refers to the stakeholder influencing strategies though they
posses’ low interest in the organization.
2. The top right part refers to the stakeholders influencing the strategies and
who promote the products.
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3. The bottom left part refers to the stakeholders having low influence and low
interest in the organization.
4. The bottom right part refers to the stakeholders having high interest but low
influence in the organization.
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High InfluenceLow Interest
(Latents)
High Influence High Interest (Promoters)
Low Influence Low Interest (Apathetic)
Low Influence High Interest (Defenders)
Figure: Stakeholders’ Grid
Task 3
3.1Analyze possible alternatives strategies relating to substantive
growth, limited growth and retrenchment
MARKET ENTRY STRATEGY
Organic Growth: When an enterprise association accomplishes development over
its own enterprise which is as identical as the starting of the organization, it is called
organic development. It omits any development that is profited by getting into any
other enterprise or merger or acquisition.
Merger: Merger is the process by which two businesses gets united and turns into
one entity through lawful consolidation. The beginning of Autoglass was through
such merger.
Acquisition: This is the method where one particular company buys another whole
business and sets up itself as the proprietor. In this method 100% or near 100%
ownership has to be bought.
Licensing: It is the method through which a mother company (licensor) permits
another business (licensee) to use its trademark and sell the products or services on
the cornerstone of affirmations on several periods. The periods include the
authorizing fee that has to be paid to the licensor.
SUBSTANTIVE GROWTH
Horizontal Integration: In level integration a business types or acquires output
facility of associated or complementary goods (Melody, Y. & Kevin, H., 2000).
Autoglass might pattern such integration by connecting with other output that is
related to its living products.
Vertical Integration: In vertical integration a company connections with the
businesses or partners of the provide string of links and in many cases all the
partners of the string of links stay under a single owner (Melody, Y. & Kevin, H.,
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2000). Autoglass might enlist into vertical integration by linking with the suppliers
and distributors.
Related Diversification: When a business elaborates its business with some
diversification in the living product line (Arazy, O, & Gellatly, I., 2012). The new
productions are alike to the existing products.
Unrelated Diversification: It is the method when a business enlists into
diversification by introducing new goods and services that doesn’t agree with the
existing product line (Arazy, O, & Gellatly, I., 2012). It can be unrelated
diversification if Autoglass begins trading home window crystal or beauty mirrors.
LIMITED GROWTH
Disinvestment:
Retrenchment: A scheme utilized by companies to reduce the diversity or the
general size of the procedures of the business. This strategy is often utilized in order
to slash costs with the aim of becoming a more economic steady business.
Turn around: Turnaround is a method dedicated to corporate renewal. It utilizes
analysis and planning to save worried companies and returns them to solvency.
Turnaround administration involves administration reconsider, activity based costing,
origin malfunction determinants investigation, and SWOT investigation to determine
why the business is falling short. In order to make a comeback in the commerce
associations need to find out the root of the difficulties and based on those
difficulties they need to make up new strategies and principles to overcome those
problems.
Liquidation: When an enterprise or firm is terminated or bankrupt, its assets are
traded and the advances pay creditors. Any leftovers are circulated to shareholders.
Liquidating a firm is the last stage of the firm’s survival. If no alternate schemes
comply with the organizations then it needs to deal its assets and then pay up the
shareholders and stakeholders.
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Divestment: The method of trading an asset. Furthermore known as divestiture, it is
made for either economic or communal goals. Divestment is the converse of
investment. It is the method of dragging out the assets in operation and sells those
to rendezvous the gap in the financial problems and in order to liquidate the
association divestment is necessary for any association.
PORTER’S GENERIC STRATEGY
The generic strategies are:
1. Overall Cost Leadership
2. Differentiation
3. Focal Point
OVERALL COST LEADERSHIP
Considering situation mentioned in the case, the Autoglass Company uses the cost
leadership approach to enter the market and it is very helpful to grab more
customers than the competitors (Addmour, H., & Ayish, H., 2005).
DIFFERENTIATION
Differentiation is an important approach because only cost leadership cannot help an
organization to flourish their business (Addmour, H., & Ayish, H., 2005). The
Autoglass Company differentiated their service by providing 24/7 customer advising
services and the fleet servicing.
FOCAL POINT
Autoglass is the best service provider in the UK market in repairing and replacing
windscreen (Addmour, H., & Ayish, H., 2005). So, their focusing point is now on the
customer happiness.
3.2 Select an appropriate future strategy for Autoglass
In alignment to elaborate the market segment Autoglass Company needs new
schemes and new goods which can be helpful for them to flourish the market. So
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considering future scheme they can investigate their market need and arrive up with
some development of the new merchandise to diversify their services and arrest a
new market segment.
Autoglass should be following the upright growth scheme to grow their business.
They can proceed with coalition with automakers to arrest the new market segment.
Autoglass is in a strong place and they might be able to go with the coalition with
new organizations. Because this scheme is befitting for the organizations growth and
their centre capabilities agree with the scheme. Coalition with related associations
will enable Autoglass to put more aim on the customer’s preference and can evolve
new product class to fulfill the desires of the customers.
Only beginning new merchandise line and expanding the market will not alone help
the Autoglass business to expand in the market. Autoglass should certainly
reconsider the response of the customers so that they might understand what the
customers are looking for and to what level of approval customer’s desire. Autoglass
administration needs to characterize the functions and responsibilities to the workers
so that they can supply the largest grade of approval to the customers.
The Autoglass is at present have a 92% satisfaction rate amidst the customers. But
with expansion of the enterprise the approval rate might fluctuate and Autoglass
need to construct a timescale for the new goals and elongation of the new services.
Contemplating the place in the commerce, Autoglass can provide a 5 quarters
design that will be adequate for Autoglass to contend up with the affray and sustain
coalition with the automakers to elaborate the enterprise. Autoglass can standard
next 5 quarters to obey with schemes they have taken and fulfill the firm pledge to
the customers.
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Task 4
4.1 Compare the roles and responsibilities for strategy
implementation of Autoglass
It is very important to execute the policy in the organization as it carries distinct
significance in the profit. The policies are chosen such a way that they can earn
profit for the organization (Melody, Y. & Kevin, H., 2000). The practicability of the
policies is tested by revising them and analyzing the feasibility. If the policies fail to
attain significant score then it is turned down and considered as unproductive one.
To grab and retain the market Autoglass needs to use extensive filtering procedures
of the policies.
Autoglass administration has to work out the marketing and sales strategies to
double-check the greatest market share and sales. The sales group should be
evolved in a way that can keep up with the affray in the market. Productive
advertisements in relevant localities might help an allotment in this regard. The
centre competencies should be clearly concentrated to appeal the customers.
Clear and reliable statements are necessary to achieve the targeted market share
(Michael A., 1999). Communal visualizations are required in indentifying and
checking the hypotheses, bases of the policies and propose actions.
To execute the policies that are undertaken efficiently and effectively managers
need to motivate and influence the employees (Schultz, H., 2006). If the target
achievement is satisfied, it will result in coherence in job environment and employee
satisfaction.
4.2 Evaluate resource requirements to implement a new strategy
for Autoglass
An organization must opt for the precise materials and place them within the right
departments to gauge the resources. because it may be a service supplier of
windscreens and needs a large man power to satisfy the demand of the purchasers,
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Autoglass has prioritized its human resources (Dessler, G., 2000). Autoglass already
has 159 client advisors operating 24/7 to satisfy the purchasers demand. Autoglass
conjointly has fleet mating which needs man power conjointly and that they square
measure cautious concerning their hands. So, Brobdingnagian quantity in coaching
and developing the abilities of the workers square measure required to supply the
most effective service within the trade (Gudonaviciene, R, & Rutelione, A., 2009).
Highest normal of NVQis maintained by Autoglass Company.
Autoglass is the leading Company in the industry because they are using the best
materials to ensure the durability and safety of the customers and also maintaining
time in delivering the service (Autoglass Company).
The Autoglass Company is efficient in their resource planning and evaluating the
resources thoroughly to provide the best service.
4.3 Discuss targets and timescales for achievement for Autoglass
to monitor a given strategy
Evaluation of the benchmark outcomes:
Quarter 1 The company ought to be citing with the methods and resolve the
practicableness of the methods whether or not the methods would mirror within
the expected outcome.
Quarter 2 During the amount Autoglass ought to review the customer’s feedback and
implement the specified attempt to expand the business.
Quarter 3 This is the quarter of gathering info and takes analysis note on the enforced
methods.
Quarter 4 Management ought to organize an educational program to fill within the gap. in
order that the workers are able to do the organization goal in desired manner.
Quarter 5 In this quarter the organization would possibly accomplish the required results
supported the strategy creating and therefore the implementation methodology.
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Table: Evaluation of the outcomes
Conclusion
Autoglass has made the windscreen fixing or replacement simpler for the customers and
supplying services to the customers to their full approval.
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