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.......................................5

1.3 Explain minimum three planning technique for Autoglass.....................................................7

Task 2.........................................................................................................................................9

2.1 Produce an organisational 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.......................................................................................................................................14

3.1 Analyse possible alternatives strategies relating to substantive growth, limited growth and

retrenchment ........................................................................................................................14

3.2 Select an appropriate future strategy for Autoglass.............................................................15

Task 4.......................................................................................................................................16

4.1 Compare the roles and responsibilities for strategy implementation of Autoglass..................16

4.2 Evaluate resource requirements to implement a new strategy for Autoglass..........................17

4.3 Discuss targets and timescales for achievement for Autoglass to monitor a given strategy.....18

Conclusion...............................................................................................................................19

References................................................................................................................................20

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Executive Summary

In this world of competitive market, Autoglass has a complete different field of operating its

business. To keep pace with the innovation or renovation, Autoglass maintains a standard

category of luxurious product in the world market.

Since there is an opportunity to replace or repair the product, Autoglass is well known to

nearly all. In the windscreen industry Autoglass has shown a remarkably nice job in

satisfying the customers and providing the most effective windscreen replacement or

repairing service. From the beginning of the business to the current day Autoglass focuses

on the requirements and demands of the customers and also the mode of providing services

in an economical manner. Throughout an analysis within the industry ninety two percent of

the Autoglass customers were happy at their service. Autoglass maintains a pleasant

relationship between the customers and workers as a result of they believe that if workers

are happy operating in Autoglass then they'll serve the Customers additional expeditiously

and it will turn in the revenue. They currently have five hundred branches serving within the

Europe. Supported the given situation and looking the Autoglass it may be inferred that

Autoglass is in an exceedingly sturdy position within the windscreen replacement industry

and can be able to face future challenges in an exceedingly economical and effective

manner. Autoglass now is the market leader within the industry and that they are growing in

an exceedingly steady pace.

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Task 1

1.1 Explain the role of strategy, mission, visions, objective, goals and core

competencies of Autoglass

Every company starts with a concrete plan in the market. This plan is called as the mission of the company. And company tries to complete its mission with success. The task of executing the mission is on the managers of the company. He identifies the core competency of the company and refers to the core actions he helps the company to achieve its main objectives.

Mission of the Autoglass Company:

Mission of the Autoglass Company is to ensure the delivery of maximum customer

satisfaction all over their branches. To be fulfilling this goal, they are always providing the

best windshield repairmen and elements to make their customers happy and more than

content.

Vision of the Autoglass Company:

Despite being the leader in its operation area, it is not stopping there. It has set its vision to

provide customer service with the highest quality and standard level. They are satisfying 92

percent of their customers. There is no doubt that the percent will be reaching hundred with

no time if Autoglass continues to perform the same way it is doing right now.

Core Competency:

There are some definite core competencies that had made the Autoglasscompany unique

from its competitors. It has the man power and the equipments to repair or even replace any

sorts of damaged or broken glass of any vehicles of any model. It doesn’t matter how rare

the model is or how hard to get the replacement; it will serve you with your utmost

expectation. That is the uniqueness of the Autoglass Company.

Strategic intent:

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Strategic intent shows an abstract projection of the fate of the company in near future, rather

than the decided objective or the desired outcome. This process creates flexibility in the area

of staff initiative, team contribution and adaption during changed circumstances

(Ivanauskiene, N, & Auruskeviciene, V., 2009). Strategic intent of Autoglass results that

they are the leading company of the existing market and they are performing as it is

necessary to hold the leading position.

Role of Strategy of Autoglass:

The strategic administration of Autoglass has fixed their primary task is to compile and

disseminate the vision of the organization. This outlines express the raison d’etre of the

organization. Autoglass has compiled their strategy in such a way so that they can maintain

a specific time period for execution of decided strategy.

Objective and Goals of Autoglass:

The main objective of Autoglass is to repair and replace the broken windows and earning

the customer satisfaction. Autoglass has fixed to provide a global service and spread their

business globally. By the reputation and evaluation from the customer they are enhancing

their business region throughout the whole Europe.

Strategic Architecture of Autoglass:

The process of strategic architecture is to answer five fundamental questions in order to

make the strategy of the company. The questions are compilation of “What”, “What Else”,

“What More”, “What Now”, “How” (Grant M. R., 2010). Autoglass is habituated with using

these questions during their company’s strategy preparation.

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1.2 Review the vital issues involved in Strategic planning in Autoglass

There are some issues need to be considered while setting and implementing strategic

planning. Some of the issues are given below-

Competitive advantage is a considerable factor in the marketplace. If the competitive

advantage is high then the possibility of getting large number of revenue is quite strong.

Competitive advantage includes new products, price variation, quality variation, service

quality difference. Competitive advantage can be identified going through a model given by

Ansoff’s-

Ansoff’s growth model suggests four completely different sets of alternatives. Based on the

situation and analysis we learned that Autoglass is increasing its market step by step and has

the capacity to serve more than they are doing currently (Kotler, P., 2000).

1. Market penetration – A market strategy hereby an organization seeks to gain greater

dominance in a market in which it already has an offering (Melody, Y. & Kevin, H., 2000).

This strategy often focuses on capturing a larger share of an existing market. In this segment

Autoglass can increase its market segments by selling more of their products and attract

more customers.

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Market Penetration Product Development

Market Development Diversification

Existing Product

Existing Product

New Product

New Product

Figure: Ansoff’s Model

2. Product development – In this strategy Autoglass can bring “side view mirror” a new

product to the existing market of windscreen to capture more customers.

3. Market development – This strategy refers to the attainment of new customer groups.

Autoglass can increase their market segments to capture new customers.

4. Diversification – This strategy is used to avert the risks by introducing new product in

new market to spread the risks associated with older one.

Autoglass Company has huge opportunities in the market. They can increase the growth rate

very swiftly by satisfying the customer, acquiring and retaining them. They can set targets

for three years to attain more customers and develop new products that are suitable to the

market and building demand. During the targeted period the Autoglass Company should

prioritize its geographic area; where they will create a huge market and they should

determine the criteria for selecting an efficient supplier who will supply quality products.

Definition of Top-Down and Bottom-Up

Informal planning

Leaders or managers sometimes take a decision or prepare a plan without following the

conventional structure or correct framework that is called informal planning. For instant

response managers need to take an extempore decision without consulting his subordinate or

without analyzing the overall situation. This helps to make the short term objectives for the

development of the organization.

Top Down

Top down strategy is basically breaking down of a particular system to get access into all of

its sub-systems. Autoglass is utilizing this approach to get successful in its product

development segment.

Bottom Up

Bottom up approach is making pieces of a whole system of a complicated process.

Autoglass company is successful in using this bottom up strategy quite successfully.

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Behavioral Approach for Autoglass

To generate the resources and keep attaining the leading position in the near future

Autoglass need to approach in the Top-Down method. In the area of service industry

Autoglass is a growing company and they have to enhance their level of servicing in the

future to remain in track in the competition with other organization. They have to improve

their product quality so that they can grab a diversified market.

.

1.3 Explain minimum three planning technique for Autoglass

There are some techniques which can help growing and expanding the market of the

Autoglass Company. Applying these techniques provides the best outcomes for the

organization.

BCG Growth Share Matrix

This matrix shows the way how the Autoglass Company emphasizes on market

growth with a synchronization of product portfolio. Autoglass might prioritize their

product wherever they will distinguish their product and maintain synchronization

within the product portfolio (Kotler, P., 2000).

Placing goods in the BCG growth share matrix Autoglass will face 4 types of consequences

in the market. And they are:

1. Stars: High Growth and High Market Share

It requires a great quantity of cash for which managers need to take decisions

from which the cash will be generated and used.

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.

2. Cash Cows: Low Growth but High Market Share

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The product will attain low growth in the market but it will have the highest

market share from which the organization will turn in revenues and maintain

income.

3. Dogs: Low Growth and Low Market Share

The time when the product gradually stops to generate any kind of revenue,

the organization should gradually divest from the project to start another.

The organization should also be careful of incurring any unnecessary costs.

4. 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.

It also has the risk of making a Dog product. If the market share is not

increased gradually then it would incur loss for the organization.

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Figure: BCG Matrix

Strategic Position & Action Evaluation Matrix (SPACE)

SPACE matrix is used to analyze the market demand, organization position and

needs to work and create ways to expand the market. To ensure the organization’s

position and course of actions, four different elements of SPACE matrix work for the

company.

Profit Impact of Market Strategy (PIMS)

Sometimes, the organization may need some information which pave the way of

setting market strategy. PIMS helps this way to provide information from the

database. Ultimately the company can gain ground with its strategy in the market

and by the proper implementation of that strategy brings success for that company.

Task 2

2.1 Produce an Organizational Audit for Autoglass

SWOT Analysis

Strengths:

Autoglass provides services at low cost.

Product safety features are high.

Repaired or replaced glasses by windscreen can reduce further damage to itself.

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Strengths

Low costSafetyVisual ClarityAvoiding further damage

O pportunities

Increasing grow th rateH igh presence in em erging econom yN ew Product

W eaknessesLess prom otion of the brandLack of advertisem ent

ThreatsSuppliers CompetitionGeographic LocationGovernment PolicySW O T

Weakness:

Autoglass does not emphasize on branding its name.

Lack of Promotion.

Opportunities:

Autoglass has a huge potential of expanding its business as very few companies are

offering such services worldwide (Schultz 2006).

Being one of the very few, Autoglass possesses great opportunities to grab the

market and extend its market share.

Autoglass can also introduce new product related to its service and replacement

items.

Threats:

Competition between the suppliers is massive in this industry. So it is quite difficult

to identify the exact and perfect supplier.

Sometimes Govt. policies make restriction to any business operation.

2.2 Carry out an environmental audit for Autoglass using at least two

approaches

Here, PESTLE factors are in need of having a close look. PESTLE shows the threats and

opportunities of the existing company. Organizations will maximize opportunities and

minimize threats by conducting PESTLE analysis (Grant M. R., 2010).

PESTLE analysis

Political

Political disturbance

Income tax policy has a great impact on the buying power.

Political climate needs to be appeased

Government stability

Government support

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Economical

Purchasing power

Income level

Economic infra-structure

Socio-cultural

Lifestyle

Social norm

Educational

Cultural Aspects

Discriminative mentality

Technological

Technological creativity

Technology based designs

Technology of windshield manufacture

Legal

Law regarding safety measures

Employment Law

Consumer law is extremely emphasized

Environmental

Weather, climate and climate change

Location

Porter’s 5 forces analysis is a type of analysis which determines and helps the management to understand the overall context of the industry (Kotler, P. and Armstrong, G., 2006).

Porter’s 5 forces are:

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1. The threat of

new entrants

Economies of Scale: This is generally a low threat and it measures the scale of economy in the production. Government Policy: Government policy can limit the entry and exit barrier in an industry.

2. The bargaining

power of customers

Threat of Backward Integration: Organizations face the risk of backward integration with the suppliers.

3. The threat of

substitute products

Prices: Prices play an important role in any industry. Buyers may shift from one product to another just because of price sensitivity.Access: Buyers access in the industry is now a day’s much easier than before.

4. The amount of bargaining

power suppliers

have

Threat of forward Integration: Organizations face the risk of forward integration with the suppliers. With the help suppliers, buyers can make the same products that are offered by another company.

5. The intensity

of the competitiv

e rivalry

Number of Competitors: Competitor’s number plays an important role in pricing strategy.Diversity of Rivals: The rivals challenge and cross each other’s path in making and implementing strategies.

2.3 Explain the significance of stakeholders’ analysis in relation to

Autoglass

There are many kinds of stakeholder in the organization. Some has the interest on the revenue, some can have an influence on the decision making process. Therefore, the company always gives significance on the stakeholder issue. Stakeholders can be promoters, latent’s, apathetic, and defenders as well.

Promoters : Promoters influence the decision or strategy and they also have high

share of interest.

Latent’s: This sort of stakeholders have the low interest on revenue but they

interfere on the decision making process.

Apathetic: It refers to the Stakeholders who has low interest and narrow influences

the strategies.

Defenders: This type of stakeholders has low influence in the strategy making but

high interest.

The stakeholders’ grid:

The stakeholders are kept in four classifications so that each stakeholder has their specific

rights and duties in regard of the making the strategies for the organization which will be

implemented for the betterment of the organization. Autoglass has mapped the stakeholders

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High Influence High Interest (Promoters)

High Influence Low Interest (Latent’s)

Low Influence Low Interest (Apathetic)

Low Influence High Interest (Defenders)

Figure: Stakeholders’ Grid

in the organization so that the stakeholders can perform their duty in regard of the

organization’s benefit.

Task 3

3.1 Analyze possible alternatives strategies relating to substantive growth,

limited growth and retrenchment

Market Strategy

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Organic

Growth

When a business organization achieves growth over its own business which is as same as the beginning of the organization, it is called organic growth. It excludes any growth that is gained by getting into any other business or merger or acquisition.

Merger

Merger is the process by which two companies gets united and turns into one entity through legal consolidation. The beginning of Autoglass was through such merger.

Acquisitio

n

This is the process where one particular company purchases another entire company and establishes itself as the owner. In this process 100% or near 100% ownership has to be bought.

Strategic Alliance

This is the process where two or more companies agree upon a number of common objectives and share each other’s resources to meet those objectives. This approach is actually an idea that stays between the concept of organic growth and merger or acquisition.

Licensing

It is the process through which a mother company (licensor) allows another company (licensee) to use its trademark and sell the products or services on the basis of agreements on several terms. The terms include the licensing fee that has to be paid to the licensor.

Substantive Growth

.

3.2 Select an appropriate future strategy for Autoglass

Autoglass needs to form new strategies and produce new products to enhance their market segment, so that they can hold their leading position in the market. So in order to make a future strategy they can come up with some core development along with new products and better services and grab a prolonged market segment.

Autoglass should follow the vertical growth strategy to enhance their business. They could offer alliance to other automakers and could combine with them in order to grab a new market segment. As Autoglass is a strong company itself, they can select an alliance which can cope up with their capabilities and help to develop the business. This will help Autoglass to focus on the customer privileges and customer satisfaction.

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Horizontal Integration

In horizontal integration a company forms or acquires production facility of related or complementary products (Melody, Y. & Kevin, H., 2000). Sometimes it may also happen that a company purchases one of its competitors and form integration. Autoglass might form such integration by linking with other production that are related to its existing products.

Vertical Integration

In vertical integration a company links with the companies or partners of the supply chain and in many cases all the partners of the chain stay under a single owner (Melody, Y. & Kevin, H., 2000). Autoglass might engage into vertical integration by linking with the suppliers and distributors.

Related Diversification

When a company expands its business with some diversification in the existing product line (Arazy, O, & Gellatly, I., 2012). The new productions are similar to the existing products.

Unrelated Diversification

It is the process when a company engages into diversification by introducing new products and services that doesn’t match with the existing product line (Arazy, O, & Gellatly, I., 2012). It can be unrelated diversification if Autoglass starts selling home window glasses or beauty mirrors.

Starting new product with expended market is not the enough and single solution for the future strategy. Autoglass should seek a constant review from the customer’s side to identify their lacking along with customer’s expectations. This will help the management to distribute the responsibilities to the employee in order to provide more satisfaction to the customer.

At present Autoglass has 92% rate of their customer satisfaction. With the expansion of business this rate could be hampered or slightly fluctuate. Autoglass need to keep that in mind that customer satisfaction is their core moral of business. They can also provide 5 quarters plan to cope up with the changed situation in the business area and prevail in the competition.

Task 4

4.1 Roles and Responsibilities for Strategy Implementation

Strategies should be implemented with the cooperation of all the members of the

organization. The organization takes opinion from the upper level to lower level. That is

why the decision made by the leaders on behalf all has been effective in the marketplace.

Considering the techniques, policies need to be well developed and ensures to establish

those principles which are appropriate or not. If the principles fail to acknowledge

significant score then it will be turned down and thought of as unproductive one (Gundala,

R, Jack, A, & Gomes, R., 2012).

To use economical and productive policies all the team within the association are united

within the smallest phases of the beliefs and arrange of activity decision that leads to

coherent behavior and moreover the diversification or modification of the strategies are

possible (Buzzanell, P. M., 2012).

Managers need to inspire and influence the employees to execute the policies that need

commencing with efficiency and effectively (Gómez, L, & Ballard, D., 2013). Persuading

the goal, accomplishment will finish in worker approval and coherence in job atmosphere.

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4.2 Evaluation of the Resources

The resources should be evaluated in a great deal. Autoglass prioritizes its human resource

as a result it became the best service provider of windscreens (Autoglass Company).

Moreover, Autoglass has fleet repairing units that require man power. So, a lot of

expenditure is being happened to advise and develop the skills of the workforce.

In thought of elements and time share Autoglass is that the pioneer within the business as an

outcome of their remedy the foremost effective materials to affirm the durability and

security of the customers and put together maintaining time in delivering the service.

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4.3 Discuss targets and timescales for achievement for Autoglass to

monitor a given strategy

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Quarter 1The company should be bring up with the strategies and find out the feasibility of the strategies whether the strategies would reflect in the expected outcome. They can take the feedback of the customers and find out what else they are looking for in the windscreen repairing service. There should be weekly and monthly monitoring by the line managers of the divisions

Quarter 2During the period Autoglass should review the customer’s feedback and implement the desired plan to expand the business. The line managers should be responsible for collecting the feedbacks and acting towards it

Quarter 3This is the quarter of gathering information and takes research note on the implemented strategies. The management should find out the gap between the expected outcome and actual outcome. The GAP might occur because of lack of coordination or inefficiency of the employees and line managers

Quarter 4Management should organize a training program to fill in the gap. So that the employees can achieve the organization goal in desired manner

Quarter 5In this quarter the organization might achieve the desired results based on the strategy making and the implementation method. If the management fails to achieve the objectives through the strategies, then they have to initiate actions based on information like training the employees or providing support to them

Conclusion

Various researches have proved that Autoglass customers are much happier than any other

that of the competitors and they have also showed that they are the best in the service

industry when it is comparing to the banking and retailing sectors (Ivanauskiene 2009).

Autoglass continues to win the hearts of their customer via their services and also won a

series of awards for being the best windscreen replacement Company among the

competition. Autoglass is not only focusing on expanding its business but also trying to go

beyond its quality of satisfying the customers with all means. Still it has a great potentiality

to mark itself as the leader of the whole world in the windscreen service industry. While

competing with a very few companies who are doing this kind of service, Autoglass can

reach on the top level in the whole world. Then not only UK or Europe; but also the whole

world will admire it for its utmost dedication towards its customers.

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References

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http://www.mbaskool.com/brandguide/ AUTOGLASS/5319- AUTOGLASS -

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Autoglass Company. [ONLINE] Available at: http://www.autoglass.co.uk/Glass-repair-and-

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