Introduction

Autoglass as we know it today has its origins in two separate companies. In 1969, Tony Bates

started a small family business in Bedford called Windshields, which became well-known for

its pioneering approach. In those days windscreens were made of toughened glass, which

would smash if hit with sufficient force and the pieces of glass would end up inside the car.

Autoglass was formed in 1974 and, by 1983, had over 40 branches and 100 mobile fitting

units. In 1984, the two firms merged to become initially Autoglass Windshields and a year

later the second part of the name was dropped - the name Autoglass remains to this day. The

company presently has 180 branches and 900 mobile fitting units.

Task 1

Mission: The mission is a statement of an organization that not only defines the goals of

organization but also set up performance objectives accordingly. The mission statement is

always a time bound i.e. a mission defined must be achieved within a certain time period. It is

often set for period of 5 to 6 years. it may change but still holds the company with the needs

of customer and vision (Steiner, 2010).

Autoglass follows a mission “to win locally by applying skills globally”. In this statement,

company laid a strong emphasis on the word local as they thrive to win its local customers by

opening more than 100 branches across London. Not only this Autoglass also provides

service at customer’s doorstep and online booking too. The company firmly believes that

vehicle glass repair is a local business.

Vision: The definition of vision is what a company tends to achieve in future. It’s a long term

statement that company follows and is usually written with bold letters on the wall of

organization where every member, employee as well as customers can read it. The vision

statement defines the accomplishments of the organization and what more it wants to

accomplish so to reach and fulfil its vision (Steiner, 2010). This statement is generally set by

the founder or owner of the company.

Autoglass follows the vision “most highly valued business in the world”. It continually

inspires its members, staff and supporters to work in a way so to accomplish the vision of the

company.

Goal: Goal or aim of the organization is set for every employee and drives them to work onto

it’s so to achieve the mission and vision of organization. It is a target to be achieved in a

specified time. The goals changes when a certain task is done and a new goal is set to achieve

another objective. At Autoglass every goal is set up to achieve excellence.

Objectives: The objective is set of tasks that must be done to fulfil a particular goal. At

Autoglass each day begins with the new set of objectives. The time frame to complete those

objectives is set by the head or manager of the organization.

The objectives of the Autoglass are:

Quality, cost effectiveness and customer service

To be top most glass repair company of UK

Not only to be successful but to create a strong image in market

Giving and delivering the best performance to its customers

To deliver high return on capitals employed for share holders

To build and maintain strong bond with its customers

Core competencies of Autoglass: Core Competencies helps in assessing the strategic planning

of the organisation. As mentioned in its introductory part that Autoglass is a part of Belron,

thus it carries certain features from its predecessor company which is hard for its competitor

to emulate. Thus Autoglass holds a strong edge in market among its competitors. The fact

that core competencies followed by Belron remain same throughout the world attributes its

impact of following its business planning rigorously and consistently. The inherent unique

internal skills possessed by the Autoglass provide it the competitive advantage in market.

Issues Involved in Strategic Planning

Strategic planning is defined as the process to achieve the mission, vision and goals of the

organisation. Planning is an important tool for making decisions. It is the role of management

to identify, assess and solve the risks that may hamper the reputation of organisation.

Among the various strategies planned at Autoglass, the key issues involved generally lead to

the failure of the strategies planned. As mentioned above that Autoglass has numerous

opportunities to expand outside London and can focus on European areas but the company

always focused in its home town.

Autoglass faces strategic issues the foremost of which is the need to grow its market share.

Though the company has opened 100 branches across London but it have an opportunity to

open threads in Europe. Autoglass was encouraged by its parent company to run a strategic

review of HR and people. It highlighted the business weakness of company that could be

resolved by HR. A people review conducted at Autoglass to broadly understand the

organisation review and the results showcased that management is not equipped to manage

people properly and to take responsibility of HR issues.

Therefore the major strategic issue of Autoglass is to build up a strong workforce team that

follow and implements the organisational culture and values. Autoglass promises its

customers 24X7 services which can only be fulfilled by a good experienced team.

Steps Involved in Strategic Formulations

Formulating a strategy is not as easy as it sounds. It requires to first identify the problem and

working on it from the scratch. The steps to build strategic formulations are:

1. Analysis of the current situation

2. Defining a strategic direction

3. Planning the initiative to be taken

4. Developing an action plan

5. Aligning the organisation to follow the action plan

Planning Techniques

1. Profit Impact of Market Strategies: It involves long term study of the performance

of strategic business units. It first started at General Electric in the middle of 1960 and

was conducted at Harvard University (Kumar, 2010).

The main function of PIMS is to highlight the relationship between a business's key

strategic decisions and its results. Analyzed correctly, the data can help managers gain a

better understanding of their business environment, identify critical factors in

improving the position of their companies, and develop strategies that will enable them

to create a sustainable advantage. PIMS principles are taught in business schools, and

the data are widely used in academic research. As a result, PIMS has influenced

business strategy in companies around the world.

The PIMS database, as previously noted, consists of characteristics and financial

performance of business units from which strategic conclusions can be obtained. It is

compilation of operational and performance measures on a “business” basis. This is

an unusually resource for determining the potential impact of strategic changes on

expected performance.

At Autoglass, PIMS database can be used for better understanding of the business.

The information of PIMS database comprises of the member of the companies of SPI.

Autoglass can use this database to measure broad strategies that are capable of being

captured by statistical measures. It links strategy to performance. Through the

documentation of actual experiences of many businesses operating in London,

Autoglass can formulate its own strategy.

2. Porter’s Five Forces Competitive Analysis: Michael F Porter identified and

analyzed 5 competitive forces that determines the strength and weakness of industry

and shapes up every industry (Asad, 2012). These 5 forces are:

Exhibit: Porter 5 Force Analysis (Asad, 2012)

1. Competition in the industry:

Currently, the main competitor is Autoglaze, Five Star Windscreen and

National Windscreen which also offers similar services as that of

Autoglass. They also provide 24X7 service and facility of booking online

appointment. These companies are serious threat to Autoglass as there is

marginal difference between their services.

There are other local brands in the market that too become popular as they

provide similar services at a much reasonable prices. However Autoglass

holds a brand image and is thus not scared of local players.

2. Potential of new entrants into industry:

Entry barriers are relatively less for the Autoglass as vehicle glass repair

company and there is no consumer switching cost and zero capital

requirement. There is an increasing amount of new brands appearing in the

market that repairs vehicle glass at same price. However, Autoglass itself

is a well developed brand and provides a high quality glass. Its follows a

principle of repairing first rather than replacing.

Autoglass is seen not only as a vehicle glass repair but also as a brand. It

has held a very significant market share for a long time and loyal

customers are not very likely to try a new brand.

3. Power of suppliers:

The main service of Autoglass is repairing the damaged windscreens.

4. Power of customers:

The individual customer poses no pressure on Autoglass. Customers knew that Autoglass provides quality service and works as per the customer perspective. The company believes in repairing first the damaged wind screen rather than replacing it.

5. Threat of substitute products:

There are many other international and local companies that repair vehicle

glass for example Autoglazing, Five Star Windscreens and National

Windscreens in the market. Autoglass doesn’t really have entirely unique

services as compared to these companies. Thus people generally approach

any company that provides a quality service.

3. Ansoff Matrix: Igor Ansoff says that business owners’ ability to grow their

businesses comes down to how they market new or existing products in new or

existing markets (Shaw, 2011). He outlines four distinct strategies:

Market Penetration: It is a way to grow in an expanding market but

difficulty arises as the market mature and competition increases. The

business strategy of Autoglass is from customer to market focus. It has

enabled the company to increase its share in market and win the business

from its competitors.

Market Development: It is a risky strategy and is more appropriate when

the core competency of business is product or service. Thus Autoglass

employs business growth strategy by targeting automobile sectors in

London. Another way adopted by Autoglass is that it introduces new

skills, sales and distribution channels. The workers working in the

company are highly trained and skilled technicians. Autoglass provides

them a training session and left no loops that may cause customer

dissatisfaction. It increases its sales by opening of 100 branches across

London, providing online booking and even provides service anywhere in

London. So if customer stuck somewhere the company reaches at that

place to provide service.

Product Development: Developing new product in existing market is more

risky than market penetration. It is more appropriate when strength of

business lies in the relationship with its customer. Autoglass never fails to

provide qualitative service to its customers and is the trusted company in

the market. However Autoglass never took a risk to expand its maret and

bringing new services.

Diversification: It involves two unknowns- new products with unknown

development problems and new market with unknown characteristics. It

offers a best growth potential. Autoglass have 100 branches in London but

it does not provide services outside its hometown. Despite of opportunities

Autoglass never established any branch outside UK. This has restricted the

company’s growth and company struck around to its old customers.

Task 2

Environmental and Organizational Audit of Autoglass

Environmental audit is the assessment of the company if it meets the demands of

environmental legislation. It determines whether the management of company has created

efficient environmental policies providing acceptable environmental attitude.

Autoglass believes in reducing its environmental footprint which is evitable for the

continuous success, quality and services provided by the company. The company understands

its social responsibility of caring and protecting the environment for the upcoming

generations. Autoglass claims the following commitments (Earnhart, 2013):

1. Identify, monitor and manage the existing and potential aspects of our operations that

significantly impact on the environment in line with a culture of continual improvement.

2. Comply with relevant environmental legislation and other appropriate environmental

requirements, seeking best environmental practice where it is viable to do so.

3. Prevent pollution from our activities.

4. Be efficient with the resources that we use. This includes (but not exclusively) energy used

in our buildings and for transport, glass, consumables, packaging and water. The company

aims:

a. Rethink what they use and specify products that minimise environmental damage

b. Reduce what is used

c. Reuse what they can

d. Recycle what’s left

e. Restrict landfill waste to a minimum.

5. Educate and engage employees in our environmental agenda.

SWOT Analysis: Autoglass is a subsidiary of Belron group, world’s largest vehicle glass

repair and replacement company with 25000 employees in 23 countries with an annual

turnover of €3bn (Consulting, 2011).

Autoglass, a UK based firm of Belron is the leading vehicle glass repair and replacement

company of UK. It main target customers are motorists. Below SWOT Analysis of the

company provides a detailed view on the company.

Strength

Sustainable business model through

diversification and value oriented service

and products

24 hour and 7 day service

Repair first policy

100 branches located across UK

Tie up with the top insurance companies to

take care of the insurance policies of the

customers

Weakness

Losing customers to competitors

Limited service available in

certain local areas

Opportunities

Strong Growth

Growing use of online channel for making

appointments

Strong private label portfolio enables the

company to effectively differentiate

Mobile technicians that provide service at

any preferred location

3 R- Reduce, Reuse and Recycle principle

Threat

Intense competition affects

customer retention adversely

Restrictive legislations and strong

lash out from the communities is

limiting expansion opportunities

Economy downfall

Table 1: SWOT Analysis of Autoglass

Competitive Analysis: It is an important part of the marketing plan of the company. It

establishes the factors that provide uniqueness to the products or services of the company.

This further attributes to the company’s target market. Easiest method is to make a

competition grid by writing the five products or services that are competes with other

companies.

The unique features of Autoglass that are now emulated by other companies are:

1. Quality use of products

2. Mobile service provided by the company

3. 24X7 service

4. Online booking

5. Opening up more and more branches in the country.

The Autoglass competitors i.e. Autoglaze and National Windscreens also provide the above

mentioned similar services. Thus the level of competition is high and is rising day by day.

However Autoglass makes sure that even if similar services are provided by others, it must

stay to its commitment to provide quality and better service to customers which is cost

effective. The company hires trained technicians for customer service.

Organizational Audit

The organizational audit provides insight of how the company runs the organization in order

to achieve its mission. The steps to perform an organizational audit are (Downs, 2010):

1. Design a protocol: In this the information is collected, stored and then utilized to

consider designing a successful strategy for the organisation. A successful strategy

is defined after this and a protocol is designed accordingly.

2. Administer a survey pilot: It identifies the extent to which the audit protocol will

deliver all the vital information required for the designing of strategy. Initially

where few individuals are interviewed, later number of individuals to interviews is

increased.

3. Conduct the audit: While conducting organizational audit, speak with as many

employees of the company as you can. It is the role of manager to conduct the

audit of his employees and then make a report accordingly.

4. Analyze the results: Complete a qualitative analysis across and within the

stakeholder levels. The answers given the respondents at the interview must be

first transcribed and then analyzed. Use of certain softwares saves time and

resources.

Significance of Stakeholder Analysis in Autoglass (Lim, 2010)

Stakeholders are the persons, group or institute who holds an interest in a project.

Stakeholders holds a crucial place at planning process and different stakeholders are requires

from the initial to the final place of planning. The analysis of the stakeholder is done to

analyze the need of stakeholders at different phase of planning. Its significant in a way that it

provides answers to the questions like:

What influences the project?

What will be the affect of the project?

Who works against the project?

What are the favourable conditions for the project?

Which group is interested more in the outcome of the project?

Primary stakeholders are those who are affected either positively or negatively while

secondary stakeholders are those who are intermediates and have not an immediate positive or

negative effect.

At Autoglass, the stakeholder analysis is carried out in following way:

Draw up a stakeholder table identifying who the stakeholders are

Assess each stakeholder's importance and their relative power/influence

Identify risks and assumptions that can affect the success of project.

Benefit of Stakeholder Analysis to Autoglass (Aaltonen, 2011)

Helps identify relationships between different stakeholders - helps possible coalition.

Identifies viability other than in pure financial terms.

Helps provide an overall picture and preventing the issues that can disrupt the project

Draws out the interests of stakeholders in relation to the problems which the project is or

you are seeking to address.

Identifies conflicts of interest and potential conflict

Reduces the negative effect and manage the negative stakeholders

Task 3

Alternative Strategies Relating to substantive Growth, Limited Growth and

Retrenchment

Organization like Autoglass can expand its business whenever possible. Different ways and

methods can be used to expand its business by seizing the opportunities. Below the

substantive, limited growth and retrenchment is discussed.

Substantive growth strategies: It is one of the alternative strategies. Substantive growth

strategies follow some important elements. These elements are mainly using to increase their

existing growth.

As Thompson (2010) describes, the substantive growth strategies are implemented through

two main factors. Those are merger and acquisition. Merger is the combination of two

previously separate organizations, typically as more or less equal partners (Johnson et al,

2011). Autoglass has more potential to implement merger as a substantive growth strategy

because of its market strength. The acquisition involves one firm taking over the ownership of

another (Johnson et al, 2011). This substantive strategy also can be implemented by Autoglass

since it has more market power in the industry.

Thompson (2010) introduces joint venture as limited growth. At the joint venture, two or

more organizations are shared the ownership. In the joint venture, usually the competitive

advantage is narrow. Since Autoglass has more market share in the industry, it is not advisable

for limited growth strategy. Limited growth strategies depend on some element activities to

reduce the risk.

Retrenchment is always a remedial action. These remedial actions are taken at the stage of the

inefficiency, economic recession, or strong competition. In case of inefficiency, the

organisation has to take three retrenchment strategies namely assets reduction strategy, cost

reduction strategy and revenue generation strategy.       

Future Strategy for Autoglass

The human resource of the Autoglass is important factor as it is the major part which

constitutes for the achievements of the company. However, Autoglass has identified that there

is a need for further developing of needs of its employees to compete in the turbulent market

place. These skill developments of employees will lead for quality service and finally it will

hold to gain the competitive advantage thorough available resources (Wilson and Gilligan,

2005). The aim of the Autoglass is customer satisfaction by providing qualitative service via

trained and skilled technicians. Autoglass has identified those areas as strategy gaps of the

organisation. It operated a training department to ensure each and every technician is skilled

and technology oriented. Its training strategy revolves around the tailored initiatives that aim

to identify core competencies of company. From the managers to the new recruits, Autoglass

makes sure that every employee of department is skilled.

Considering the above strategic situation, interactive strategies for the Autoglass is

recommended. These interactive strategies will be the future strategic directions of the

Autoglass. The rationale behind the interactive strategies is gaining the competitive advantage

by looking at the competitors’ strategies. In this connection, Autoglass will have to pay their

attention to interactive price and quality strategies, cooperative strategy, interactive strategies

in hyper-competition, and game theory. According to the interactive price and quality,

strategies the Autoglass will have to provide best price and quality for their customers. The

interactive strategies in hyperactive- competition will say how Autoglass can face to the

hyper-completion and gain competitive advantage. Collaboration between some organizations

in the same market will lead to achieve competitive advantage. Cooperative strategies will

help this collaboration for Autoglass. Finally, game theory also involve with competitor

movements. Particularly game theory is responses for the competitor movements of the

market place.

The reason behind selecting such a strategy is that it will help Autoglass to be a World’s best

service provider. The employees will feel motivated and committed towards the company.

Task 4

Realizing Strategy Implementation

Implementing a strategy is most important and difficult phase. Many strategies fail because

management fails to implement them as it was planned to be implemented. Therefore while

planning a strategy, proper ways and methods should be devised to implement the strategy. In

this question, the implementation of the strategy for Autoglass as discussed above will be

described.

Roles and Responsibility for Strategy Implementation

Sadler (2003) introduces three main roles of strategy implementation. Those roles are

envisioning future strategy, aligning the organisation to deliver that strategy and embodying

change.   

1. Envisioning Future Strategy: This involves with clear communicating the strategy

to internal and external party. The internal party includes the organisation and the

external party is includes all stakeholders. Communication is the most important

part. A clear and sound communication ensures a proper delivery of the strategic

plan.

2. Aligning Organisation to Deliver Strategy: In this, it is expected that all people in

the organisation be committed to the strategy. These people should be motivated to

follow the strategy and should be empowered to deliver the change. It is the role of

manager to ensure if each and every employee is committed towards delivering the

strategy. The manager must keep a check on the performance of employees.

3. Embodying Change: The strategic implementation is highly involved with the

organisational change. Thus, strategic leader has a major role of following strategic

change process.

According to Sadler (2003) the responsibility of strategy implementation should be taken by

two main parties. Thos two parties can be identified as middle managers and outsiders.

Middle managers have been identified as the implementers of top management’s strategic

plan. The responsibilities of the top-management have three main areas. Those main areas can

be identified as sense making of strategy, reinterpretation and adjustment of strategic

responses, and advisers to more senior management. Outsiders have more responsibilities for

strategy implementation. Especially as outsiders, consultants and other stakeholders have

more responsibilities. Consultant always helps to formulate the strategic for the change

process. Stakeholders have responsibility as strategy implementation agents in the

organisation.             

Resource Requirement to Implement the Strategy

Allocating resources is important while implementing the strategy. The requirement of

resources differs from one department of organisation to other as well as from one particular

strategy to another. It is clear that the organisational environment and nature of resources

determines the resources requirements (Coulter, 2001).

As discussed above Autoglass should implement interactive strategies to face to the future

competition of the industry. The identified resources for Autoglass in order to implement the

strategies are- physical resources, people resources, and initial start-up cost.

The physical resources are consisted with production resources, finance resources and

marketing resources which need for implementing interactive strategies at Autoglass. Since,

these interactive strategies mainly focus on the quality improvements of the Autoglass

service; it is advisable to allocate more physical resource for the quality improvement. People

resources also a major requirement for strategy implementation. Autoglass should develop

their human resources by implementing more learning and development activities by

providing a virtual and practical training class. Finally these all these strategy implementation

processes are involved with initial start-up cost and Autoglass should allocate appropriate

finance so to implementation these activities.  Finance is required to set up a training centre,

to hire skilled professionals and for purchase department

Target and timescale for Achievement for Autoglass to Monitor a Strategy

Johnson et al (2011) introduces three main criteria and techniques which can be used to

monitor a strategy namely suitability, acceptability and feasibility.

Suitability: It is used to identify if the proposed strategy addresses the important featured

issues or not.

Acceptability: It identifies whether the defined strategy meet the expectations of stakeholders

Feasibility: It measures whether strategy could work with in practice or not

As discussed above Autoglass’s future strategies will be interactive strategies. These

interactive strategies can be monitored by the suitability criteria. Under this criterion it can be

monitored that whether Autoglass’s interactive strategies address the key opportunities and

constraints in the organisation face. Acceptability criterion can be used to monitor whether

implemented strategy meet the expectations of stakeholders. Under this criterion the risk and

return also monitored. Feasibility measures whether strategy work in practice. Further,

feasibility can be used as to check the targets of the implemented strategies. For an instance, it

can be used to measure the finical targets of Autoglass by implementing interactive

strategies.     

The timescale required to fulfil the strategy must be decided at the planning stage. This

ensures if the working is going as per the planning or not. Also it helps to keep a check on the

strategy formulation so that a manager can look where employees are lacking and what is

affecting in the hindrance of the strategy.

CONCLUSION

Autoglass is a leading UK company in the vehicle glass repair and replacement that aims to

provide world class service to its customers. The company conducted a survey of 20,000

customers to understand what the company wants rather that what Autoglass believes to

deliver. The survey results showed that customers want choice between mobile service and

visiting a branch. Autoglass formulated a method to tackle this by providing online booking to

its customers.

A independent research showed that the customers of Autoglass are happy and loyal as they

do not wish to switch to any other glass repair company apart from Autoglass.

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