An assignment on

Business Strategy

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Summary

The two companies named Windshields and Autoglass merged together in 1984 and

thus the Autoglass was founded and it became one of the best service providing

companies in the UK. In this journey, they have won the heart of their customers by its

unique services. Unlike other service oriented firms, Autoglass have taken the

development of business and approval of the customers as the major concentration.

The target of this report is to analyze and investigate the strategies that Autoglass is

running behind their thriving excursion. This work has absolutely helped to better

understand the tactics and visionary schemes of Autoglass and thereby has been

turned into a productive discovering source of enterprise strategies.

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TABLE OF CONTENTS

Summary.................................................................................................................................................... 2

Task 1.......................................................................................................................................................... 4

1.1 Explain the role of strategy, mission, visions, objective, goals and core competencies of Autoglass............4

1.2 Review the vital issues involved in Strategic planning in Autoglass..........................................................5

1.3 Explain minimum three planning technique for Autoglass.....................................................................8

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...........................12

Task 3....................................................................................................................................................... 13

3.1 Analyze possible alternatives strategies relating to substantive growth, limited growth and retrenchment....................................................................................................................................... 13

3.2 Select an appropriate future strategy for Autoglass..................................................................17

Task 4....................................................................................................................................................... 18

4.1 Compare the roles and responsibilities for strategy implementation of Autoglass................18

4.2 Evaluate resource requirements to implement a new strategy for Autoglass.........................18

4.3 Discuss targets and timescales for achievement for Autoglass to monitor a given strategy19

Conclusion............................................................................................................................................... 21

References............................................................................................................................................... 22

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Task 1

1.1 EXPLAIN THE ROLE OF STRATEGY, OBJECTIVE, MISSION, VISIONS, GOALS AND CORE COMPETENCIES OF AUTOGLASS

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 Autoglass Company unique from

its competitors. It has the man power and the equipment’s 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:

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.

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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.

1.2 REVIEW THE VITAL ISSUES INVOLVED IN STRATEGIC PLANNING IN AUTOGLASS

There are some significant issues in the strategic designing of the business which can be

differentiated (Kotler, P., 2000). We can analyze the strategic planning by using Ansoff’s

development matrix. This trading tool comprises of four distinct marketing schemes founded on

new product introduction and living goods (Gómez, L, & Ballard, D., 2013).

Ansoff’s Growth Matrix is a selling tool that offers four strategies. As we tend to have learned

from the case that Autoglass has enlarged its market share and it also has an ability to serve one

million client having downside with windshield (Autoglass Company). So, supported the

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capabilities Autoglass will give customers with existing services moreover as introducing a

replacement product. Within the matrix with four ways lie completely different risks. The

strategies are:

1. Market penetration – During this phase Autoglass will increase its market segments by

marketing a lot of their services and attract a lot of customers

2. Product development – During this strategy Autoglass will bring a replacement product

to the prevailing market of screen to capture new customers.

3. Market development – This strategy refers to the attainment of recent client teams.

Autoglass will increase their market segments to capture new customers.

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Figure: Ansoff’s Development Model

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

in new market to unfold the risks related to older one.

To protect the flow of business growth, Autoglass should realize the market opportunity and

choose one of the strategies to get new segments of customers and persuade them with existing

and new services (Arazy, O, & Gellatly, I., 2012). Furthermore, they might put focus on the

geographic stance of their service against the market demand.

Definition of Top-Down and Bottom-Up

Informal Planning: Informal planning is the process where the manager or leader of a team

develops a plan without any conventional structure and rigid frameworks (Grant M.R. 2010). For

certain instant situations managers use this approach where it is not essential to form any formal

structure of planning or the timeline for planning is not enough. It is important to ensure short

term objectives of the organization.

Behavioral Approach for Autoglass: Autoglass should approach in the Top-Down method in

order to capitalize their resources and to handle the competition in the future. Autoglass is a

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Bottom-Up: A bottom-up approach is the piecing together of systems to give rise to more complex systems, thus making the original systems sub-systems of the emergent system (Grant M. R., 2010). Autoglass is successful in using this approach to provide the services to the customers.

Top-Down: A top-down approach is essentially the breaking down of a system to gain insight into its compositional sub-systems (Grant M. R., 2010). Autoglass is successful in using the approach in their product development.

Figure: Top-Down & Bottom-Up Strategy

growing company in the service industry and the service they are providing will not be sufficient

for them to hold on to the position in the market. They need to come up with several

developments for their product and market so that they might a diversified market for the

customers

1.3 EXPLAIN MINIMUM THREE PLANNING TECHNIQUE FOR AUTOGLASS

1. Strategic Position & Action Evaluation Matrix (SPACE)

Autoglass can even use the SPACE matrix to grasp the market necessities and operate so

as to expand the operation. This matrix has four quadrants indicating the positions of the

business concern and the way to react consequently (Ivanauskiene, N, & Auruskeviciene,

V., 2009). In thought to Autoglass’s position within the market they should use

aggressive strategy. It can even be used as the base for SWOT analysis.

2. Profit Impact of Market Strategy (PIMS)

To establish the feasibility and affirmative influence of a taken decision or enterprise

scheme by investigating the impact in the market is the reason of PIMS (Grant M. R.,

2010).

I. Kind of the enterprise natural environment.

II. Comparable position.

III. Production method facility.

IV. Budget share.

V. Strategic works.

VI. Functioning conclusions.

3. BCG Growth Share Matrix

Autoglass will divide their product in such a fashion wherever they will grade their

product and manage a synergy within the portfolio. This matrix shows the organization 4

sorts of consequences that may be faced by a company (Gudonaviciene, R, & Rutelione,

A., 2009). It conjointly helps the organization to understand when to speculate within the

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existing product, when to divest all earnings from the market section and when to target a

brand new business venture.

Task 2

2.1 PRODUCE AN ORGANIZATIONAL AUDIT FOR AUTOGLASS

SWOT Analysis

Strengths

Autoglass is providing a premium service at low cost.

The safety features in the product are high.

The replaced or repaired windscreen provides the high visual clarity

The glasses replaced or repaired by Autoglass is capable of reducing further damage.

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StrengthsLow costSafetyVisual ClarityAvoiding further damage

OpportunitiesIncreasing growth rateHigh presence in emerging economyNew Product

WeaknessesLess promotion of the brandLack of advertisement

ThreatsSuppliers CompetitionGeographic LocationGovernment Policy

SWOT

Figure: SWOT Analysis

Weaknesses

o Autoglass is reluctant in promoting the brand.

o Lack of advertisement is present in the Autoglass Company

o Opportunities

Autoglass has the opportunity to increase the growth rate in the industry as fewer firms

are providing such services.

It is highly present in the emerging economy and has a huge opportunity to grab the

market.

As Autoglass is repairing and replacing the windscreen, they can also develop new

product such as side view mirrors or rear view mirrors.

Threats

o Suppliers’ competition is very high in the industry. It is difficult to determine the quality

supplier.

o Geographic location is a common threat to any business if it is not situated in the proper

market.

o The government policies play a vital role in shaping the business market.

2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR AUTOGLASS USING AT LEAST TWO APPROACHES

It is not possible for any single organization to have an effect on the factors (Grant M. R., 2010).

PESTLE analysis helps any organization to know the situation of the setting wherever the

organization wishes to operate. PESTLE helps the organization to maximize opportunities and

minimize threats. It influences the strategic choices which will be taken by a corporation

(Gudonaviciene, R, & Rutelione, A., 2009).

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PESTLE analysis

Political

o Political climate in different countries is different and the policies influence the business

strategies.

o Stability of governments. This may affect the future conditions in a country.

Economical

o The buying capacity of people influences the purchases of the organization.

o Level of economic activity that affects need for windscreen.

Socio-cultural

o Lifestyle and preferences of people influences the industry.

o Social norms that impact the decision to own and use automobiles versus other means of

transport.

Technological

o Technology relating the designs.

o Technology of windscreen manufacture.

o Technological developments that may increase or decrease repair or replace of

windscreen.

Legal

o Legal provisions relating to safety measures.

o Law regarding consumer and employment is highly emphasized.

Environmental

o Environmental aspects such as weather, climate, and climate change can affect in the

business.

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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:

I. The threat of substitute products

Prices: Prices matter in the industry because buyers shift to the product which is offering

high quality yet having low price.

II. The threat of new entrants

Government Policy: Governments can limit entry to an industry through licensing

requirements by restricting access to raw materials.

III. The intensity of the competitive rivalry

Diversity of Rivals: The rivals with new and different ideas of competing will likely

cross each other’s path and challenge other’s position.

IV. The bargaining power of customers

Number of supplier Companies: The number of supplier companies controls the

purchasing power of the customers.

V. 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.

2.3 EXPLAIN THE SIGNIFICANCE OF STAKEHOLDERS’ ANALYSIS IN RELATION TO AUTOGLASS

The Stakeholders’ Grid:

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1. The top right part refers to the stake holders who influences the strategies and promote

the products.

2. The bottom right part refers to the stakeholders who have high interest but low influence

in the organization.

3. The bottom left part refers to the stakeholders who have low influence and low interest in

the organization.

4. The top left part refers to the stakeholder who influences strategies but they posses’ low

interest in the organization.

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

and obligations in regard of the making the strategies for the association which will be

implemented for the betterment of the association. Autoglass has mapped the stakeholders in the

association so that the stakeholders can perform their obligation in consider of the organization’s

benefit.

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Figure: Stakeholders’ Grid

Task 3

3.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES RELATING TO SUBSTANTIVE GROWTH, LIMITED GROWTH AND RETRENCHMENT

Market Entry Strategy

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.

Acquisition: 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.

Franchising: It is the process, through which a company earns the right to use another

company’s trademark, business model, operations where the franchisor gives the right to the

franchisee. For acquiring market share abroad, Autoglass might use this approach by assigning

franchises in different locations.

Substantive Growth

Horizontal Integration: In horizontal integration a company forms or acquires production

facility of related or complementary products (Melody, Y. & Kevin, H., 2000). Sometimes it

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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.

Limited Growth

Market Penetration: It means penetrating the competitive market by offering competitive price

against the price of the competitors. This approach is used to instantly attack the competitors by

gaining their customers. It is often used to gain sales growth.

Market Development: It means targeting new customer segments and attracting the non-buying

customers of that segment. It helps to increase the market share by adding new portion of

customers. It is possible for Autoglass to develop the market by geographically expanding the

business and reaching the customers.

Product Development: It means developing new products that do not exist currently and thus

attracting customers to buy more varieties of products or services.

Innovation: It means searching out an entirely new need of the customers in the market and

innovating a new product or service to meet that need. Autoglass might try to sort out such need

in the market and introduce an innovated product or service.

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Disinvestment

Retrenchment: A strategy used by corporations to reduce the diversity or the overall size of the

operations of the company. This strategy is often used in order to cut expenses with the goal of

becoming a more financial stable business.

Turn around: Turnaround management is a process dedicated to corporate renewal. It uses

analysis and planning to save troubled companies and returns them to solvency. Turnaround

management involves management review, activity based costing, root failure causes analysis,

and SWOT analysis to determine why the company is failing. In order to make a comeback in

the industry organizations need to find out the root of the problems and based on those problems

they need to make up new strategies and policies to overcome those problems.

Liquidation: When a business or firm is terminated or bankrupt, its assets are sold and the

proceeds pay creditors. Any leftovers are distributed to shareholders. Liquidating a firm is the

last stage of the firm’s survival. If no alternative strategies comply with the organizations then it

needs to sell its assets and then pay up the shareholders and stakeholders.

Divestment: The process of selling an asset. Also known as divestiture, it is made for either

financial or social goals. Divestment is the opposite of investment. It is the process of pulling out

the assets in operation and sells those to meet the gap in the financial problems and in order to

liquidate the organization divestment is necessary for any organization.

Porter’s Generic Strategy

Michael Porter proposed 3 kinds of strategies for profiting authority in the market or expanding

enterprise as well earnings margin (Kotler, P., 2000).

1. Overall Cost Leadership

2. Differentiation

3. Focal Point

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Overall Cost LeadershipAccording to the case, the Autoglass Company uses the price leadership approach to enter the market and it's serving to grab a lot of customers than the competitors (Weygandt, J., 2009).

DifferentiationOnly price leadership cannot facilitate a company to grow their business. The organizations got to place differentiations (Weygandt, J., 2009). The Autoglass Company differentiated their service by introducing 24/7 client advising operations and therefore the fleet service.

Focal PointAutoglass is now the market leader and provides the best services to the customers having problem with their windshields in the United Kingdom. They are currently specializing in the client satisfaction and also the services they are providing (Weygandt, J., 2009).

Figure: Porter’s Generic Strategies

3.2 SELECT AN APPROPRIATE FUTURE STRATEGY FOR AUTOGLASS

In order to expand the market section Autoglass Company requires formulating new

ways and new products which might be useful for them to boom in the market.

Therefore considering future strategies they need to develop a BCG growth share

matrix and prepare a product portfolio from that they will determine their future

strategies (Gudonaviciene, R. & Rutelione, A., 2009).

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.

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.

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Task 4

4.1 COMPARE THE ROLES AND RESPONSIBILITIES FOR STRATEGY IMPLEMENTATION OF AUTOGLASS

Strategy and policy execution is one of the most crucial matters in implementing

decisions. The development and earnings of the organization solely lies on how wisely

the decisions are being taken and how competently the taken schemes are being

performed (Ivanauskiene, N, &Auruskeviciene, V 2009). They have to gaze over a new

idea or scheme and ascertain the feasibility of it according to the market positions. For

any business like Autoglass, comprehending the market as better as likely and

assessing the ongoing and proposed strategies. If the policies fail to achieve important

score then it is turned down and regarded as unproductive one. Autoglass is critical to

use in depth filtering procedures of the policies to grab and retain the market share.

The organization figure-head like CEO or leader or Managing Director has to play a very

much convoluted yet important function. S/He has to be able to investigate positions

before s/he reaches to any conclusion proposed by the board (Dessler, G., 2000). On

the other hand the senior managers have to be willing enough to hold a harmony in the

workforce and the yield of the employees that is significant for ensuring the success of

the started conclusions.

Managers have to be compelled to inspire and influence the workers to execute the

policies that area unit undertaken with efficiency and effectively (Michael A., 1999).

Satisfying the target accomplishment can end in worker satisfaction and coherence in

job surroundings.

4.2 EVALUATE RESOURCE REQUIREMENTS TO IMPLEMENT A NEW STRATEGY FOR AUTOGLASS

An important key to achievement in business is to assign assets that are necessary for

production and the supportive activities. The management has to have the clear idea

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about the location from where the resources and components will be assigned, the cost

for share and the time needed to assign (Gómez, L, & Ballard, D., 2013). Moreover, it

has to prioritize the key resource on which the maximum piece of output and service

counts. For Autoglass, they have prioritized human resources as the key resource as

they are eager to keep their customer service better than any other organization.

Autoglass is sanctioning substantial amount of allowances to boost their service quality

and moreover to train their employees.

In thought of materials and time allocation Autoglass is the leading Company within the

industry as a result they chose the most effective materials to confirm the sturdiness

and safety of the customers and additionally maintaining time in delivering the service

(Arazy, O, & Gellatly, I., 2012).

In the given state of affairs the Autoglass Company is economical in their resource

designing and evaluating the resources totally to give 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 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

2

During 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.

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Quarter

3

This 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

4

Management 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.

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Table: Evaluation of the outcomes

Conclusion

Autoglass displays that they have a huge number of trained and efficient employees by

who they have accomplished which was one time unimaginable in this industry. As a

market leader Autoglass has set a new standard of services to its customers. This

demonstration will not be done without teamwork and the customer’s approval rate.

Their technological initiation was thrilling for the customers. Now-a-day they are

endeavoring to elaborate their market segment. In alignment to become an international

market leader every business should accept any kind of challenges.

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