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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