Business Strategy

TABLE OF CONTENTS

Table of Contents

Executive Summary.................................................................Error! Bookmark not defined.

Task 1.........................................................................................................................................3

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

...............................................................................................................................................3

1.2 Review the vital issues involved in Strategic planning in Autoglass.......................................4

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

Task 2.......................................................................................................................................09

2.1 Produce an organisational Audit for Autoglass...................................................................09

2.2 Carry out an environmental audit for Autoglass using at least two approaches......................10

2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass...........................13

Task 3.......................................................................................................................................14

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

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

3.2 Select an appropriate future strategy for Autoglass.............................................................18

Task 4.......................................................................................................................................19

4.1 Compare the roles and responsibilities for strategy implementation of Autoglass..................19

4.2 Evaluate resource requirements to implement a new strategy for Autoglass..........................20

4.3 Discuss targets and timescales for achievement for Autoglass to monitor a given strategy.....20

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

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User

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

SUMMARY AND FINDINGS

It is seen by research that Autoglass is the leading company in its business andalso a

leading company in case of customer satisfaction in its service threatening the retailing

and banking sectors which are mainly service companies. The service given by the

Autoglass company is winning the customers hearts and royalty so much that they are

not only the leader in the market but also many awards are won by the company among

the competitors as the best among all of them. Autoglass has a wide range of varieties

in their products as well as in their service. The company was first started as a small

family business and the business grew larger gradually which has over 500 branches in

Europe. The main focus of the company was to satisfy the customers and ensure the

best service quality to the customers. Autoglass was the pioneer to ensure satisfaction

of the customer first in the field of windscreen servicing. The research and case shows

that Auto glass is the market leader in the Autoglass sector and new challenges will be

faced by the company in future.

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Task 1

1 .1 Explain the role of strategy, mission, visions,

objective, goals and core competencies of Autoglass

Mission of the Autoglass Company

The main mission of the Autoglass Company is to supply the best windscreen services

and to satisfy the customers. The future plan of the company (Grant M.R., 2010) is also

set by the priority of customer satisfaction.

Vision of the Autoglass Company

The vision of the Autoglass Company (Grant M.R., 2010) is to give the maximum level

of customer service from the industry. The remarkable 92%customer satisfaction is won

by the company through their large network system. This strategy will help them to draw

the strategic planning for the future as the AutoglassCompany is growing day by day.

Core Competency

The core competency of the company is the main features that are followed by the

company (Grant M.R., 2010) and the company employees. To repair or replace any

damaged or broken glass of any kind or shape is the main feature of the Autoglass

Company. The Company also provides home services for replacement or repairing of

any kind of glass issues.

Strategic intent

The strategic intent shows a conceptual projection of the future of the company, rather

than the desired goal or expected outcome. This process implies that a bunch of options

and flexibility in terms of staff project, team donation and adaption during changed

circumstances (Ivanauskiene, N, & Auruskeviciene, V., 2009). Strategic intent of

Autoglass shows that they are the leader of the existing market and the company is

doing all the required activities to keep them on leading position.

Role of Strategy of Autoglass:

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Compilation as well as the dissemination of vision and operation is the main task of

strategic administration of Autoglass. This outlines express a raison d’etre for the

organization. Compilation of strategy for Autoglass is made in such a way that the

decided strategy maintains a specific time period for execution of that strategy.

Objective and goals of Autoglass:

repair and replacing of broken windows as soon as possible and to acquire the

customer satisfaction are the main goal of Autoglass. The goal that Autoglass has fixed

is to provide there service to global customer and to enhance their business globally.

Using the customer reputation they are growing their business all over the Europe.

Strategic Architecture of Autoglass:

Strategic architecture means to answer five separate questions about the fundamental

process of making strategy of the organization. The questions are compilation of

“What”, “What Else”, “What More”, “What Now”, “How” (Grant M. R., 2010). Autoglass

prepare their strategy by answering this bunch of questions.

1.2 Review the vital issues involved in Strategic planning

in Autoglass

There are few issue that need to be address in regard to planning strategies (Grant M. R., 2010).

As this industry is innovative relation to the other service industry, new company have a

likelihood to start up a windscreen repair service as the income are nice-looking. So Autoglass

may face opposition in near future.

Autoglass has fixed their focus on customer satisfactions by proper customer services. Already

they have earned the highest level of customer satisfaction and improved their customer service

in a milestone level only by replacing the broken windows with a limited cost. Autoglass is very

much customer oriented and they always try to enhance their level of services to avail in the

competition. We can study the gung ho reward of Autoglass:

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Competitive advantage of Autoglass

Autoglass holds the major share of the market and the market leader with their wide

range of services provided for the customers and the company is growing day by

day(Kotler 2006).Ansoff’s Growth Matrix can be used to analyze the competitive

advantage of the company.

The matrix shows four different alternative of marketing and from the case we know that

AutoglassCompany is the market leader and is capable of providing services to 1 million

customers with their wide range of products and services. The matrix shows us four

different strategies of risk that can be developed by the Autoglass Company and these

are as bellow:

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Figure: Ansoff’s Model

1. Market penetration

Through a market strategy a company desire to grab the dominating power in the

current market. The strategy focuses on capturing the larger share of an existing

market. According to this strategy Autoglass could increase their market segment by

selling more products and capturing customer focus.

2. Product development

Product development is very important. The company needs to develop their

products regularly and new products should be introduced to the customers

regularly(Kotler 2006). For example they can use side view mirror to the customers

which is a new product.

3. Market development

Market Development means that the company should catch the new group of

customers by increasing and developing their market section.

4. Diversification

This is the way of avoiding the risk by introducing new products to the market that

minimizes the risk of old products too.

The market opportunity for the Autoglass Company is huge and the growth rate of the

market is also very high. The company should set their target like for the next 2years or

3 years what they are willing to do, how they are going to dominate the market by

capturing more customers and spreading there business in suitable market. For this

they need to determine the specific area where they will operate their operations and

they will create the market with huge opportunities. They should also determine the

qualities to be the companies suppler for ensuring the products quality and service to

the customers.

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Definition of Top-Down and Bottom-Up

Informal Planning: Informal planning means to generate a plan by the leader or

the manager without any structured way and conventional framework. For instant

response managers need to take an extempore decision without consulting his

subordinate or without analyzing the overall situation. This process is helpful to fix the

short term objective of the organization.

Top-Down: The tap down approach is a very important approach for developing new

product. In this process the total system is brokendown to achieve the insight of the

subsystems for developing the product.

Bottom-Up:The bottom-up process is to merge all the systems and to make a new

system which will make the original systems as subsystems of the new system. The

service to the customers has made the Autoglass Company so successful for using this

system.

Behavioral Approach for Autoglass: In order to get the most out of the

resources and to prevail in the coming future Autoglass need to approach in the Top-

Down method. Aotuglass is a growing company in the area of service industry and in

near future the services they are providing will not be sufficient enough to hold the

current position in the market. They have to improve their product quality so that they

can grab a diversified market.

1.3 Explain minimum three planning technique for

Autoglass

BCG Growth Share Matrix

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There should be a list or category of products of the Autoglass and the portfolio is

also to be made accordingly. This will help the company to know the market that

when to invest and when to not, when to launch a new product or when not

to(Ivanauskiene 2009). This will actually help the company to face the four types

of consequences showed in the matrix.

Strategic Position & Action Evaluation Matrix (SPACE)

The space planning method can be used by the Autoglass company to

appreciate the market need and expend the business accordingly. There are four

quadrants of this system which signifies the location of the organization and the

process to respond accordingly. Determining the position of the company the can

use many stratigy like aggressive strategy.

Profit Impact of Market Strategy (PIMS)

The process of keeping the data in such a way that it will support the decision

policies and will help to have the upperhand on the competitors in the

market(Ivanauskiene 2009).

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Task 2

2.1 Produce an Organizational Audit for Autoglass

SWOT Analysis

Strengths

Autoglass is provide a best overhaul at small price.The protection skin in the product

are high.The replace or repaired windscreen provide the high illustration clarity. The

glasses replace or repaired by Autoglass is able of dipping further harm.

Weaknesses

Autoglass is very slow in promote the brand. Lack of ad is trouble in the Autoglass

Company.

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Figure: SWOT Analysis

Opportunities

Autoglass has the chance to increase the enlargement rate in the manufacturing as

fewer firms are as long as such services.It is highly present in the emerging

economy and has a huge chance to grab the market's Auto glass is repairing and

replace the windscreen, they be capable of also enlarge new produce such as side

view mirror or rear outlook mirrors.

Threats

Suppliers’ rivalry is very high for the business. It is hard to determine the quality

supplier. Geographic site is a ordinary threat to any business if it is not situated in

the good market.The administration policies theater a vital function in shaping the

commerce market.

2.2 Carry out an environmental audit for Autoglass using

at least two approaches

The organization can understand the situation and environment of the market where its

operating through PESTLE analysis. A single company can not affect the factor and the

decision making becomes easier for the company through this PASTEL

analysis(Ivanauskiene 2009). It also helps to minimize the threats and to maximize the

profit for the organization.

PESTLE analysis :

Political

Political factor is an important issue because it has a great effect on the business on the

area. The strategy of the business is set by the political situation and the government’s

stability also affects the business and the country in future. The tax issue is also very

important which is directly related to the politics.

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Economical

It’s also very important to see the buying capacity of the people of the country because

it will determine the investment of the organization. If the buying level of the people is

not enough then the company will not invest.

Socio-cultural

The lifestyle and choices of the people also manipulate the industries. This can show us

the willingness of buying a car or to use the other means of transport in daily life.

Technological

The technology is also a very important one to be taken care of. The design of the

windscreen or the technology to manufacture the windscreen is very important. It also

influences the increase or decrease of repair or replacement of windscreen.

Legal

Now a day the law plays an important role in business. There are many laws regarding

the safety measures of the employees and also that of the consumers which are to be

taken care by the industries.

Environmental

Also the weather is a very important factor. The climate change can cause problem in

the business operations.

The overall context of the industry can be understood by the Porters five forces

analysis. They are:

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The threat of new entrants

There are many threats like scaling the economies and this is a very low threat.

The distribution ability in the market and to create demand is another one. The

government policies also play vital role in the growth of the industries. Different

kind of licensing and restrictions are imposed by the government.

The bargaining power of customers

The purchasing power of the customer is controlled by the number of suppliers in

the market. There can be another problem by the buyer which can make the

product be produced by the buyer itself.

The threat of substitute products

The price is another very important factor. Buyers always want the best product

with low price. The easy entry in the market is also another problem which was

not in the beginning.

The amount of bargaining power suppliers have

The supplier number is a factor for the company. The suppliers can integrate with

customers to produce the products.

The intensity of the competitive rivalry

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The number of competitors is comparatively low in this industry. The industry has huge

growth potentiality.The rivals with new and different ideas of competing will likely cross

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

2.3 Explain the significance of stakeholders’ analysis in

relation to Autoglass

The Stakeholders’ Grid:

The upper right portion shows that the stake holders who influences the

strategies and promote the products.

The top left side refers to the stakeholder who influences strategies but they have

low interest in the organization.

The bottom right side refers to the stakeholders who have high interest but low

influence in the organization.

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Figure: Stakeholders’ Grid

The bottom left part refers to the stakeholders who have low influence and low

interest in the organization.

The stakeholders is arranged in four classes so that each one of the stakeholders

could be able to identify their precise rights and duty in order to determine a

company strategy which will be used for the betterment of the company. Autoglass

has also arranged their stakeholder in order to help the stakeholders to perform

accordingly and take part in company’s benefit.

TASK 3

3.1 Analyze possible alternatives strategies relating to

substantive growth, limited growth and retrenchment

Market Entry Strategy

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Substantive Growth

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Limited Growth

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Disinvestment:

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Retrenchment

This is a strategy which is used to reduce the diversity and the area of the operational

region of the company. It is generally used to reduce expenses and to be financially

more stable.

Turn around

This process is used for the corporate renewal. Turnaround management performs

management review, activity costing, root failure analysis, and SWOT analysis. Mainly it

deals with the causes of failing in any region. It helps the company to come back from

any failing situation. Company finds out the root problems and fixes them to come back.

Liquidation

After business termination or bankrupt, company’s assets are sold. The scraps are

distributed among the shareholders. It is the last step of survival for ny organization.

Company sells its assets and pay debts to stakeholders and shareholders when no

alternative option is available.

Divestment

This is also a process of selling the assets of the company. Divestment is the conflicting

of asset. It means to pull out the assets of the organization to meets up the financial

problems.

Porter’s Generic Strategy

To gain the competitive advantages the company can use Michael Porter can be used

by the company. The strategies are :

I. Overall Cost Leadership

II. Differentiation

III. Focal Point

Overall Cost Leadership

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The Autoglass Company can take the cost leadership approach to catch more

customers than the competitors when they are entering a new market as well as the

existing market.

Differentiation

To flourish the company only cost leadership is not enough. They can also differentiate

their products by introducing new services like 24/7 help line and fleet service.

Focal Point

As the market leader in UK in replacing and repairing windscreens the company is now

focusing in to the customer services and satisfaction of the customers.

3.2 Select an appropriate future strategy for Autoglass

Autoglass needs to form new strategy and produce new products to enhance their

market segment, so that they can hold their leading place in the market. So in order

to make a prospect 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

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management to distribute the responsibilities to the employee in order to provide

more satisfaction to the customer.

At present Autoglass has 92% rate of their customer satisfaction. With the expansion

of business this rate could be hampered or slightly fluctuate. Autoglass need to keep

that in mind that customer satisfaction is their core moral of business. They can also

provide 5 quarters plan to cope up with the changed situation in the business area

and prevail in the competition.

TASK 4

4.1 Compare the roles and responsibilities for strategy

implementation of Autoglass

The policy execution of the company is very important and it should be followed by the

organization. This policy should be valued by the organizational heads and also by the

experts in the field.Because the policy execution is the main in making profit and

running the company smoothly.If the policies fail to attain the target then it should be

revised and new polices should be taken for profit maximization.To grab and retain the

market share Autoglass company should take necessary measures.

The main job of execution of the company in the market to take the most market share

of the market is on the CEO of the company. CEO should be very careful of making

good profit as well as keeping the share in the market high. All the employees should be

trained well and taken care of their work as well.

There should be a clear massage statement to gain the targeted market share.

Managers should inspire and control the employees so that the policies executed

properly.they should also ensure employee satisfaction and make a good job

environment.

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4.2 Evaluate resource requirements to implement a new

strategy for Autoglass

The resource evaluation is very important for getting the desired result.The Autoglass

company needs to distribute the right employees to the right positions to make the

policies right and fruitful through them.As the company is emphasizing on services more

so they should make good use of their trained employees to make the customers

happy(Arazy 2012).They have already introduced 24/7 customer service with 159

customer advisors.They also have fleet services for repairing or replacing

windscreen.The company also maintains highest NVQ.

From the given situation we can see that Autoglass Company is in a leading position

with highest number of customer satisfaction and also holds the market leader position.

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

Evaluation of the benchmark outcomes:

Quarter

1

The company be supposed to be bring up with the strategy and find out the

possibility of strategies whether the strategies would reflect a the expectd

outcmme. They can take a the feed back of the customers and find about what

else they looking for in the wind screen repair ing service. There should weekly

and monthly monitor by the managers of the divisions.

Quarter

2

During period Auto glass should view the customer’s feed back and impliement

the desired plan for expand the business. The line manager should responsible of

collecting a feedbacks and acting for it.

Quarter

3

This is quarter of getting info and takes research note for the implemented

strategies. The management must find out the gap between an expected outcome

plus actual outcome. The GAP might happen because of lack coordination ,

inefficiency on the employee and line manager.

Quarter Management could organize a training process to fill in a gap. So the employees

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4 can have the organization goal of desired manner.

Quarter

5 In quarter the organization might get the desired fruit based on a strategy making

and an implementation method. If a management fails for achieve an objectives

through a strategies, they have to do actions based from info like training

employees also providing help to them.

Conclusion:

The merged company of Autoglass is now a trusted name for replacement to those who

have got their windshields broken. For years the company has earned the satisfaction

as well as trust of the customers because they were able to realize the need of a

customer they always act according to it. Providing the best glasses along with the best

service has been the core of their competence in the market which have all the other

competitors far behind. The Autoglass could initiate required and effective strategies to

keep ahead in the race. All these combined efforts has earned much profit along with

considerable growth for them. As they are still not satisfied to satisfy their customers in

better ways, surely they are going far ahead in business in the coming days.

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Table: Evaluation of the outcomes

References

Arazy, O, &Gellatly, I., 2012, 'Corporate Wikis: The Impact of Autoglasss in the

Windscreenindustry, vol. 29, no. 3, pp. 87-116.

Grant M. R., (2010) – Contemporary Strategy Analysis, Amazon.co, Wiley Higher Ed; 7th

edition.

Ivanauskiene, N, &Auruskeviciene, V., 2009, Change Management and Its preparation',

Economics & Management, pp. 407-412.

Kotler, P., 2000. Marketing Management.5th Ed. New Delhi: Prentice hall of India.

Schultz, H.(2006). Discover the Traits of Top Management [online]. s.n. Available from:

http://www.nwlink.com/~donclark/leader/leadcon.html [Accessed October 26,

2013].

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