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AnAssignment on

Business Strategy

Submitted by:Name:Id:

Submitted to:

Date of Submission:

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Table of Content:

Executive summary 3

Task- 1 4

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

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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 Organizational Audit for Autoglass 9

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

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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

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3.2 Select an appropriate future strategy for Autoglass 18

Task-4 19

4.1 Compare the roles and responsibilities for strategy implementation of Autoglass

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4.2 Evaluate resource requirements to implement a new strategy for Autoglas

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

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Conclusion 22

References 23

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Executive summary:

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.

The merger in 1984 brought together two very different firms, one a family business and the

other much more process orientated. Nevertheless, the two complemented each other and this

enabled the development of a ‘people first’ culture. Above all, Autoglass wanted to change

from simply a garage service company into a customer service company.

On average, a motorist will need to replace a windscreen every ten years. It is a rare

occurrence, but nonetheless stressful. Autoglass recognises that a new windscreen is a

‘grudge purchase’ and that most of its customers truly wish they did not have to call. With

new laminated windscreens and the ability to repair minor damage, the need to replace the

whole windscreen has become even less common, but unfortunately there has also been a rise

in smash and grab car crime. This can serve only to heighten the consumer’s frustration and

anxiety.

Autoglass has had at the core of its business, the objective of becoming and being recognised

as a world class service provider. As such, Autoglass wants its customers to regard the

company as amongst the best of all the service providers they encounter. This strategy has

been developed into the circle of success.

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Task -1

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

competencies of Autoglass

Mission: Mission of a corporation is predicated on this state of affairs and action

pointers according that the staff unit are to perform to realize the objectives of the

organization (Kotler, P., 2000). The vision of a company can be set up through

fulfilling its mission. The mission of Autoglass is fulfilling customer satisfaction

and providing best service.

Vision: Vision of a company is that the future intentions associated in nursing the

target that an organizations attempt to win by process the missions and setting

goals and objectives to get done (Kotler, P., 2000). The vision of Autoglass is that

This will lead directly to greater customer satisfaction. If customers are impressed

with the service they receive, they are more likely to use Autoglass in the future,

should the need arise. Repeat purchases lead to better business results and greater

potential reward that will, in turn, reflect in improved employee satisfaction.

Core Competencies: Core competency refers to the core actions of a corporation

that form the business missions and visions of that individual organization (Kotler,

P., 2000). Autoglass can easily replace or repair any reasonably damaged

windscreen.

Strategic Intent: The concept of strategic intent implies that there is a general

view on where the company should be going rather than a definite statement of an

expected outcome and this means that there should be plenty of flexibility within

the statement to allow for staff initiative, team contribution and adaptation in light

of changed circumstances (Ivanauskiene, N, & Auruskeviciene, V., 2009). The

strategic intent of Autoglass is to see itself as the market leader always. They are

doing all the activities to remain leader.

Role of Strategy of Autoglass: The primary task in strategic administration is

normally the compilation and dissemination of the vision and the operation

declaration. This outlines, in essence, the raison d'etre of an organization

(Ivanauskiene, N, & Auruskeviciene, V., 2009). Autoglass has compiled their

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roles in strategy making in a way that the strategies maintain a specific time

period in the execution (Autoglass Company).

Objective and goals of Autoglass: The main objective of Autoglass is to satisfy

their customer by repairing or replacing broken windscreen of any vehicle. The

goal of Autoglass is to make their business grow and serve the global customer

(Autoglass Company). They are expanding their business by winning the hearts of

the customers.

Strategic Architecture of Autoglass: The strategic architecture of any

organization is the process of answering the five fundamental questions of making

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

More”, “What Now”, “How” (Grant M. R., 2010). By answering these questions

Autoglass shapes their strategic structures of the company.

1.2 Review the vital issues involved in Strategic planning in Autoglass

There are few issues that need to be addressed in regard to planning strategies (Grant M. R.,

2010). As this industry is new comparative to the other service industry, new companies have

a possibility to start up a windscreen repairing service because the returns are attractive. So

Autoglass might face competition in near future.

Autoglass is putting their focus on the customer’s preference and customer service. They

have reached the highest satisfaction level in the service industry just by replacing the

windscreen in a cost effective way. Autoglass should be customer oriented and try to increase

their service portfolio in order to meet with the competition. Given the situation in the case

we can analysis the competitive advantages of Autoglass.

Competitive advantage: Autoglass is rapidly grabing the market share through providing the

best services of replacing windscreens. As usage of automobile is growing day by day,

Ansoff’s model to can help them in researching their competitive advantages

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Ansoff’s Model

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). The

four different methods are-

A. Market Penetration: Through this way Autoglass can grab more market share by

commercialism.

B. Product Development: New product will facilitate Autoglass Which will go together

with existing product. Three is a great risk in this way. In case of not purchasing new

product by consumers may cause a great risk and may decrease revenue.

C. Market Development: To extend its market share Autoglass can promote and

develop market and grab new consumers.

D. Diversification: Autoglass should make a product portfolio so that the revenue cannot

reduce.

Autoglass should adopt these four growth strategies so that they can increase the rate of

expansion.

New Product

Existing ProductNew Product

Existing ProductMarket

PenetrationProduct

Development

DiversificationMarket Develpoment

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Top-Down and Bottom-Up theories

Top-Down: Autoglass is being benefited by using this approach. Top-down refers

to a approach of breaking down of a system to identify insight in the subsystems.

(Grant M. R. 2010)

Bottom-Up: This approach refers to a approach creating the initial systems as

subsustems of emerging system to provide rising of additional complicated

system. Autoglass has been successful by utilizing this approach.

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.

1.3 Explain minimum three planning technique for Autoglass

1. BCG Growth Share Matrix

Autoglass can divide their products in such a manner where they can prioritize their

products and manage a synergy in the portfolio (Ivanauskiene, N, & Auruskeviciene,

V., 2009). This matrix shows the organization 4 types of consequences that will be

faced by an organization (Gudonaviciene, R, & Rutelione, A., 2009). It also helps the

organization to know when to invest in the existing product, when to divest all

earnings from the market segment and when to focus on a new business venture.

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

in the market. And they are:

a) 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.

b) 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.

c) 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.

d) 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.

2. Strategic Position & Action Evaluation Matrix (SPACE)

Autoglass can also use the SPACE planning technique to understand the market

requirements and operate in order to expand the operation. This matrix has four

quadrants indicating the positions of the business organization and how to react

accordingly (Ivanauskiene, N, & Auruskeviciene, V., 2009). In consideration to

Figure: BCG Matrix

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Autoglass’s position in the market they can use aggressive strategy. It can also be

used as the base for SWOT analysis.

3. Profit Impact of Market Strategy (PIMS)

It is a type of database which provides concrete evidence to support policies and

principles for gaining and sustaining competitive advantage (Melody, Y. & Kevin, H.,

2000). Autoglass might maintain a customer service database in order to analyze their

principles and planning process so they can keep track of their success and

implementation of the strategies.

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

Strengths1. Safety

2. Low Cost3. Visual Clarity

Opportunities1. Emerging

Economy2. New Product3. Growth Rate

Weaknesses1. Promotion

2. Advertisement

Threats1. Geographic

Location2. Government

Policy

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

Weaknesses

• Autoglass is reluctant in promoting the brand.

• Lack of advertisement is present in the Autoglass Company

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

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

supplier.

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

market.

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

To maximise opportunities and to minimise threats companies are conducting PESTLE

analysis. (Grant M. R, 2010). There are many significant factors regarding operating a

business.

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

approaches

PESTLE analysis helps any organization to understand the scenario of the environment where

the organization will operate (Melody, Y. & Kevin, H., 2000). It is impossible for any single

organization to affect the factors. It influences the strategic decisions that will be taken by an

organization (Gudonaviciene, R, & Rutelione, A., 2009). PESTLE helps the organization to

maximize opportunities and minimize threats.

Political climate in any country determines the attractiveness of the business. Government stability is important because it may affect the future decisions. Organizations need to pay taxes and taxation policies affect the industry.Political

Purchasing capacity of the people determines cost and level of service in the industry. The need for replacing windshield is represented by the level of economical activityEconomical

Lifestyle and preferences shapes an industry. The decision to own an automobile and need to replace windshield depends on the social norm.Socio-cultural

Technology relating the designs. Technology of windshield manufacture.Technological

Law regarding safety measures is important.Employment and consumer law is highly emphasized.Legal

Some things are beyond control of the organizations such as weather, climate and climate change.Environmental

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Porter’s five forces analysis helps the management to determine and understand the overall

context of the industry (Kotler, P., 2000).

Porter’s five forces are:

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.

1. The threat of new entrants

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

2. The bargaining power of

customers

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.

3. The threat of substitute products

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.

4. The amount of bargaining power

suppliers have

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.

5. The intensity of the competitive

rivalry

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2.3 Explain the significance of stakeholders’ analysis in relation to

Autoglass

Stakeholder’s Grid:

Stakeholderr’s Grid

a) Promoters: Stakeholders who influence the strategies and also have high interest.

b) Latent’s: Stakeholders who influence strategies but has low interest.

c) Apathetic: Stakeholders who has low interest and seldom influences the strategies.

d) Defenders: Stakeholders who have low influence in the strategy making but high

interest.

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 in the organization so that the stakeholders can perform their duty in regard of the organization’s benefit.

High Influence

Low Interest (Latent’s)

High Influence

High Interest (Promoters)

Low Influence

Low Interest (Apathetic)

Low Influence

High Interest (Defenders)

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Task 3

3.1 Analyse possible alternatives strategies relating to substantive growth,

limited growth and retrenchment

Tony Bates started a little corporation in 1969 and the company Autoglass started in 1974.

The corporation, Autoglass Windscreen was fashioned by a merger in 1983 and a year later

the latter half was removed and therefore the name Autoglass remains (Autoglass Company).

The entry strategy of Autoglass within the business of windscreen repairing was by merger.

The firm is step by step increasing its market share and until these days Autoglass has one

hundred eighty branches and 900 mobile fitting units everywhere United Kingdom.

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

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

assigning franchises in different locations.

Substantive Growth

Substantive growth indicates the objectives and goals of a company to expand its business

and attain the most market share (Kotler, P., 2000). Substantive growth recommends to

maximize the profit and improvement within the business from that the organization will

subsidies different shortage (Kupritz, V.& Cowell.E., 2011).

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

Limited Growth

Here it is recommended the observation of the achievements (Kotler, P. 2000). Many

organizations management does not take decisions right away to implement the strategy.

They are not ready to accept changes. This growth strategy is advantageous but holds

additional disadvantages. Autoglass is looking forward to expand its business during a steady

manner.

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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.

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

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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 described a scheming that contains three general strategies which are used by

companies to gain the competitive advantage (Kotler, P. and Armstrong, G., 2006). The

generic strategies are:

1. Overall Cost Leadership

2. Differentiation

3. Focal Point

Overall Cost Leadership

Based on the case it can be inferred that Autoglass is following the cost leadership in the industry and they are offering their services in the lowest cost possible (Armstrong, G., &Kotler, P. 2006). It is helpful to attract more customers and enter in the new market.

Differentiation

Cost leadership alone cannot help an organization to enjoy profit from the market. Differentiation is necessary to bring in more profits and grabbing more customers (Armstrong, G., &Kotler, P. 2006). The Autoglass is offering 24/7 customer services to differentiate them from the others.

Focal Point

To improve business in the industry organizations needs to focus on a specific objective (Armstrong, G., &Kotler, P., 2006). Autoglass is focusing on serving the customers and satisfy them for their money worth. Autoglass has become the best windshield repairing or replacing service providers.

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3.2 Select an appropriate future strategy for Autoglass

In order to expand the market segment Autoglass Company needs new strategies and new

products which can be helpful for them to thrive the market. So considering future strategy

they can analyse their market need and come up with some development of the new product

to diversify their services and capture a new market segment.

Autoglass should be following the vertical growth strategy to grow their business. They can

go with alliance with automakers to capture the new market segment. Autoglass is in a strong

position and they might be able to go with the alliance with new organizations. Because this

strategy is appropriate for the organizations growth and their core capabilities match with the

strategy. Alliance with related organizations will enable Autoglass to put more focus on the

customer’s preference and can develop new product category to fulfill the needs of the

customers.

Only starting new product line and expanding the market will not alone help the Autoglass

Company to expand in the market. Autoglass should constantly review the feedback of the

customers so that they might know what the customers are looking for and to what level of

satisfaction customers want. Autoglass management needs to define the roles and

responsibilities to the employees so that they can provide the highest level of satisfaction to

the customers.

The Autoglass is at present have a 92% satisfaction rate among the customers. But with

expansion of the business the satisfaction rate might fluctuate and Autoglass need to build a

timescale for the new goals and extension of the new services. Considering the position in the

industry, Autoglass can provide a 5 quarters plan that will be sufficient for Autoglass to cope

up with the competition and maintain alliance with the automakers to expand the business.

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Autoglass can benchmark next 5 quarters to comply with strategies they have taken and fulfill

the commitment to the customers.

Task 4

4.1 Compare the roles and responsibilities for strategy implementation of

Autoglass

Management needs to motivate the employees to attain the target level. Policies and strategies

should be executed in a proper way so that company can grow at high rate and take over all

other competitors. Techniques and policies should be well planned and developed so that they

can be performed well. Otherwise principles will fall and will fail to score significantly torn

into unproductive one as well. (Gundala, R, Jack, A, & Gomes, R., 2012)

Autoglass management has to determine the marketing and sales strategies to ensure the

maximum market share and sales. The sales team should be developed in a way that can keep

up with the competition in the market. Effective advertisements in relevant areas might help a

lot in this regard. The core competencies should be clearly focused to attract the customers.

Autoglass should use deep filtering procedures of the principles to grab the market share and grow rapidly. They should analyse the perfect process which is suitable and the most appropriate at that particular situation. Mixing of necessary processes is highly recommended. CEO is the person who turns over ideas into reality performs the assessment among the enterprise. (Westphal, J, Park, S, McDonald, M, & Hayward, M., 2012). Autoglass should make the use of portfolio and mix processing.

4.2 Evaluate resource requirements to implement a new strategy for Autoglass

Autoglass always gives priority to their human resources. Because they believe that if their employees are satisfied they wll serve the customer well and the customers will be satisfied as well. So they provide the best opportunity and compensations for their employees. They

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also provide the best service to their customers by providing security and durability and delivering quickly in a short span of time.

In the given scenario 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 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.

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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Conclusion

Being the current market leader, Autoglass has been the best in what they do. Their top priority is the satisfaction of their customers. They are committed to provide the best service in the windshield repairing and replacement industry. But they still have to go a long way if they want to keep their position untouchable. By following the above mentioned strategies, they can prosper in near future.

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Reference

Gundala, R., Jack, A., & Gomes, R., 2012, Communication Management and Its Implication',

International Journal Of Business, Marketing, & Decision Science, vol. 5, no. 2, pp.

35-50.

Kotler, P., 2006. Marketing Management. 5thed. New Delhi: Prentice hall of India.

Kupritz, V.& Cowell, E., 2011, 'Productive Management Communication', Journal Of

Business Communication, vol. 48, no. 1, pp. 54-82.

Westphal, J., Park, S., McDonald, M.,& Hayward, M., 2012, 'Actions of CEOs: Social

Exchange and Impression Management Support among CEOs in Communications

with Journalists', Administrative Science Quarterly, vol. 57, no. 2, pp. 217-268.

Autoglass Company. [ONLINE] Available at: http://www.autoglass.co.uk/Glass-repair-and-replacement.186.0.html. [Accessed 06 October, 2013].