AN ASSIGNMENT ON bUSINESS STRATEGY

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Date:

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Business Strategy

Table of content

Content serial Content name Page no.Executive summary 3

Task 1

Content serial Content name Page no.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

Content serial Content name Page no.2.1 Produce an organizational

Audit for Autoglass10

2.2 Carry out an environmental audit for Autoglass using at

least two approaches

11

2.3 Explain the significance of stakeholders’ analysis in

relation to Autoglass

14

Task 3

Content serial Content name Page no.3.1 Analyze possible alternatives

strategies relating to substantive growth, limited growth and retrenchment

15

3.2 Select an appropriate future strategy for Autoglass

18

Task 4

Content serial Content name Page no.4.1 Compare the roles and 19

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responsibilities for strategy implementation of Autoglass

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

21

Content serial Content name Page no.Conclusion 22Reference 23

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Executive Summary:

Autoglass is acknowledged as the mortal union providing assort in the work business

scrutiny to the phytologist and different service providers. In the windshield pairing

manufacture Autoglass has shown a outstandingly large job in substantial the customers

and providing the unsurpassable windshield commutation or repairing assist. During a

summary in the industry 92% of the Autoglass customers were mitigated at their

assistance. Autoglass maintains a harmonic relationship between the customers and

employees because they anticipate that if employees are mitigated working in Autoglass

then they gift aid the customers many expeditiously and it gift c

providing services in an {efficient way. Autoglass is now the industry leader in the

industry and they are healthy in a becalm stride. They now hold 500 branches serving in

the Collection. Supported on the granted scenario and exploit through the Autoglass it can

be inferred that Autoglass is in a beardown function in the screen replacing business and

gift be healthy to grappling later challenges in a efficient and powerful mode.

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Task 1

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

core competencies of Autoglass

Autoglass Company Mission

Mission of the system is based on the verbalize situation and action guidelines according

which the employees are to fulfill to discover the objectives of the activity (Kotler, P.,

2000). The water emphasis of the Autoglass Organization is on the client's spirit and

providing the champion windscreen services to the customers (AutoglassCompany). By

fulfilling the missions, the vision of an organization takes concretize and the neutral

becomes clearer.

AutoglassCompanyVision:

Vision of the company is the succeeding intentions and reference that an organizations try

to succeed by defining the missions and mounting goals and objectives to attain (Kotler,

P., 2000). The modality of The Autoglass Organization is to nurture the customers

efficiently and cater the maximal train of satisfaction to the customers (Autoglass Set).

The sensation of delivery customers with integrity present further them to raise and set

boundaries in the manufacture.

AutoglassCore Competency:

A core competency is a idea of theory that specifies the factors that a commercialism sees

as focal to the way the friendship or its employees convert (Parceling M. R., 2010). Core

ability defines the core computation of an orderliness that make the enterprise missions

and visions of that peculiar organization (Kotler, P., 2000). In housing of Autoglass the

core ability is that they can supersede or amend any kindly of confused or damaged

screen of any work (Autoglass Indispensable Concerns Interested in Strategic thinking.

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,

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&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 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

In status organization strategies and obligate strategies there are few alive issue that

pauperization to be advised. Supported on the casing, Ansoff's work can be victimized to

analyze the capitalistic advantages (Kotler, P., 2000).

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

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Business Strategy

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

Autoglass'sCompetitive Benefits

Autoglass provides the reward copulate of substitution windscreens. They are providing

individual services to customers regarding rotation screens and grabbing a antimonopoly

portion of the activity (Autoglass Set). As Auto glass is healthy day by day they can use

the Ansoff's pattern to analyze their agonistic advantages. The Ansoff's simulate is

donated below:

Autoglass are providing services to statesman than one cardinal customers having

problem with their windshields every year. Ansoff's helper of Maturation suggests digit

assorted sets of alternatives (Cornetist, G., &Kotler, P., 2006). Supported on the scenario

and investigate we scholarly that Autoglass is expanding its marketplace gradually and

has the potentiality to cater solon than they are doing now. So supported on the scenario,

Autoglass can couple customers with their existing products and also can introduce a new

associate of services (Moving Business, 2013). This quarter deciding strategies and

tackling the diametric types of risks. The strategies are:

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Business Strategy

Market penetration: By masses this strategy Autoglass can overmuch its

actual marketplace separate by selling and attracting solon of their

products. If it is through extensively Autoglass power regress centering on

their primary oblique.

Product development:Autoglass can inform to the industry a new product

that would workforce the existing products. But this strategy has a stark

drawback. If the customers unsuccessful to repeat the new product then it

would ensue in losing income.

Market employment:Autoglass is the marketplace feature in this screen

repairing manufacture. So they can variety Autoglass solon extensively

and try to snatch new customers to gain its marketplace divide.

Diversification:Autoglass can make a portfolio that testament open the

risks and limit the exit of revenue.

Autoglass also should give precedence to the geographic location where they should

manipulate and specify the minimum requirements of the suppliers to get the calibre set.

Autoglass Accompany is in top of its operative manufacture so they can growth the

growing grade in a stabilize fashion by satisfying both existing as advantageously as new

customers and growth its industry portion. Autoglass can set a five age maturation

strategy design based on the Ansoff's Growing Modeling to attain the take.

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.

Top Down: A top-down act is essentially the breaking strike of a system to realize

sensibility into its compositional sub-systems (Wheelen& Drive, T.L. &J.D., 2013).

Autoglass is using this formulation in their quantity utilization and they are pretty roaring

in using this formulation.

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Business Strategy

Bottom-Up: A bottom-up timing is the piecing together of systems to spring appear to

many interlacing systems, thusly making the daring systems sub-systems of the aborning

grouping (Wheelen& Hungriness, T.L. & J.D., 2013). Autoglass is using this way in their

bringing exercise to fill the customers and they are pretty winning in using this

approaching.

1.3 Explain minimum three planning technique for Autoglass

The techniques that any organization needs to follow in the competitive industry. There

are three basic techniques that an organization can follow. Autoglass should follow one of

the strategies to flourish in the market and capture more customers

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:

i. 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.

ii. Cash Cows: Low Growth but High Market Share 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.

iii. 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.

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

iv. 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

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.

Figure: BCG Matrix

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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.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

StrengthsLow costSafetyVisual ClarityAvoiding further damage

OpportunitiesIncreasing growth rateHigh presence in emerging economyNew Product

WeaknessesLess promotion of the brandLack of advertisement

ThreatsSuppliers CompetitionGeographic LocationGovernment Policy

S W O T

Figure: SWOT Analysis

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Business Strategy

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.

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

approaches

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Business Strategy

PESTLE psychotherapy is conducted to learn the process strategy in the industry and to

hear the attractiveness of the industry of process (Trumpeter, G., &Kotler, P., 2006). In

status to treat in an industry there are individual factors that needs to be accounted for

(Automotive Business, 2013). Organizations can increase opportunities and minify threats

by conducting Muller analysis.

PESTEL Analysis

Porter’s Five forces analysis helps the direction to find and understand the boilersuit

environment of the manufacture (Kotler, P., 2000).

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 activity

Economical

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 are:

2.3 Explain the significance of stakeholders’ analysis in relation to

Autoglass

The Stakeholders’ Grid:

1. The threat of new entrants

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

2. The bargaining power of customers

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

3. The threat of substitute products

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

4. The amount of bargaining power suppliers have

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

5. The intensity of the competitive rivalry

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

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

2. The top left part refers to the stakeholder who influences strategies but they posses’ low interest in the organization.

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

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

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.

Task 3

3.1 Analyze possible alternatives strategies relating to substantive

growth, limited growth and retrenchment

High InfluenceLow Interest

(Latents)

High Influence High Interest (Promoters)

Low Influence Low Interest (Apathetic)

Low Influence High Interest (Defenders)

Figure: Stakeholders’ Grid

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Market Entry Strategy

Substantive Growth

Organic GrowthWhen 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

MergerMerger 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

AcquisitionThis 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 AllianceThis 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

LicensingIt 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

FranchisingIt 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

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.

Limited Growth

Disinvestment:

Horizontal IntegrationIn 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 IntegrationIn 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

Market PenetrationIt 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 DevelopmentIt 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 DevelopmentIt means developing new products that do not exist currently and thus attracting customers to buy more varieties of products or services

InnovationIt 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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Porter’s Generic Strategy

Michel Porter explained the popular strategies for anmethodology to control in the

manufacture. Companies use these strategies to make combative advantages (Kotler, P.,

2000). The strategies are:

a) Overall Cost Leadership

Based on the example it can be inferred that Autoglass is following the toll body in the

industry and they are message their services in the worst expenditure getable (Cosmonaut,

G., &Kotler, P. 2006). It is assistive to pull author customers and begin in the new mart.

b) Differentiation

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

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Outlay leaders exclusive cannot help an system to enjoy profit from the market.

Differentiation is essential to alter in much profits and grabbing more customers

(Trumpeter, G., &Kotler, P. 2006). The Autoglass is offering 24/7 customer services to

specialize them from the others.

c) Focal Point

To turn activity in the business organizations needs to adapt on a circumstantial oblique

(Armstrong, G., &Kotler, P., 2006).Autoglass is absorption on serving the customers and

fit them for their money worth. Autoglass has prettify the superior screen repairing or

exchange force providers.

3.2 Select an appropriate future strategy for Autoglass

Considering future strategy Autoglass can analyze their market need and come up with

some development of the new product to diversify their services and capture a new

market segment.In order to expand the market segment they need new strategies and new

products which can be helpful for them to thrive the market. So 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. 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.Because this

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

the strategy.

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.

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

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Business Strategy

automakers to expand the business. Autoglass can benchmark next 5 quarters to comply

with strategies they have taken and fulfill the commitment 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.

Task 4

4.1 Compare the roles and responsibilities for strategy implementation

of Autoglass

Executing the policies within the methodology is incredibly obligatory and it carries a

distinct meaning for the organization's goodness (Arazy, O, &Gellatly, I., 2012). Within

the exploit of the policies it indicates to the policies that object chosen and thought of to

get acquire for the methodology. Considering the tactics policies are symptomless

formulated and reliable to ascertain if those policies are organization eligible or not

(Acquire Behavior, 2013). If the policies break to harmonize useful success then it's

turned trailing and thought of as bootless one. Autoglass necessary to use in depth

filtering procedures of the policies to snap and continue the marketplace apportion.

CEO of company is in propellant for motion the ideas into experience and creating a cue

within the business (Arazy, O, &Gellatly, I., 2012). To use efficient and strong policies

all the teams within the structure are one in the lowest stages of the belief and plan of

proceeding telephony which ends up in a very compartment ordered set up and also the

diversification or change of the techniques are assert able (Schultz, H.2006).

In order to attain the targeted activity share unobstructed and true statements are

indispensable. Communal visualizations are advantageously needful in indentifying and

inspecting the hypotheses, bases of the policies and take actions (Ivanauskiene, N,

&Auruskeviciene, V., 2009).

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Business Strategy

Managers ought to get and persuade the workers to effect the policies that are undertaken

expeditiously and effectively. Satisfying the spot, acquirement can end in employee spirit

and link in job ambience.

4.2 Evaluate resource requirements to implement a new strategy for

Autoglass

In tell to set the resources of Autoglass, the administration staleness superior prudish

materials and put them in the verbatim departments to engage the services. Autoglass has

prioritized its weak resources as a finish it became the prizewinning couple

businessperson of windscreens Autoglass additionally has fleet pairing which needs man

state additionally and that they quadrate instrument unadventurous concerning their

guardianship (Dessler, G., 2000). Hence Autoglass spends a lot in employment and

developing the abilities of the staff (Dessler, G., 2000).

In mentation of materials and instant part Autoglass is that the mastermind in the job as a

ensue of their discourse the most trenchant materials to reassert the sturdiness and country

of the customers and conjointly maintaining quantify in delivering the pairing (Autoglass

Consort).

In the specified situation the Autoglass Accompany is system in their resources and

efficient in evaluating the resources to make the most impelling and wholesome

conjugation. The quantity has also the try of state a dog set if it does not activity in any

receipts.

4.3 Discuss targets and timescales for achievement for Autoglass to

monitor a given strategy:

Evaluation of the benchmark outcomes:

Quarter 1

Company need to bring up with the new strategies and look for the feasibility of the new strategies whether the strategies would show in the desired outcome. They could take the response of the customers and

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Business Strategy

determine what else the customers are looking for in case of the windscreen repairing and replacing service. There have to be weekly and monthly monitory working by the managers of the brunch.

Quarter 2

During the other period Autoglass need to review their customer’s feedback as well as they need to implement the desired strategies to expand their business. The managers are responsible for collecting those feedbacks and take actions towards it.

Quarter 3

This is the quarter to gather information and collects research notes on the executed strategies. The management has to find out gaps between the estimated outcomes in response with the actual outcome. The GAP may occur because of the lack of coordination or immaturity of the employees as well as the managers.

Quarter 4

Management is bound to organize more training programs to fill up the gap. Thus the employees are able to achieve the organizational goal by the desired manner.

Quarter 5 Through this quarter the company may achieve the expected results based on

the strategy making and the implementation method. If management fails in achieving their objectives through the decided strategies, then they could initiate new actions based on information like training methods of the employees or rapid providing supporting hands to them.

Table: Evaluation of the outcomes

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Conclusion

Autoglass has made the windscreen repairing or replacement easier for the customers and

providing services to the customers to their full satisfaction. The Autoglass Company has

the potential to grow and become one of the best windscreen replacement organizations in

the world. But in order to do that they need to re-organize their operations and follow the

prescribed path.

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Business Strategy

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