Business Strategy

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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

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

Executive Summary:

Autoglass is a reputed and trustworthy company which uses to repair

windshield and also happen to replace it. For many years, it has proved itself

one of the best and established companies which ensure exclusive and latest

services to its customers with great care and handle. Surveys suggest that

Autoglass happens to satisfy more than 92% of customers to great extent. It

had started as a small tiny family business . now it has spread in such a way

that it has now more than five hundred branches all over the Europe region

including United Kingdom. Autoglass mainly focuses on its customer

demands and wants and also focuses it in the most economic way. It is also

renowned for making a convenient working environment for the employees.

And for all of these, as a whole, Autoglass has become a leader in its business

segment. And Autoglass is trying its best to do so by adapting various

strategic planning and approaches; which help it to focus on more to expand

its service volume in terms of location and place.

Task 1

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

Mission of the Autoglass Company:

Mission of the Autoglass company is to ensure the delivery of maximum customer satisfaction

all over their branches. To be fulfilling this goal, they are always providing best windshield

repairmen and elements to make their customers happy and more than content.

Vision of the Autoglass Company:

Despite being the leader in its operation area, it is not stopping there. It has set its vision to

provide customer service with the highest quality and standard level. They are satisfying 92

percent of their customers. There is no doubt that the percent will be reaching hundred with no

time if Autoglass continues to perform the same way it is doing right now.

Core Competency:

There are some definite core competencies that had made the Autoglasscompany unique from its

competitors. It has the man power and the equipments to repair or even replace any sorts of

damaged or broken glass of any vehicles of any model. It doesn’t matter how rare the model is or

how hard to get the replacement; it will serve you with your utmost expectation. That is the

uniqueness of the Autoglass Company.

Strategic intent:

Strategic intent shows an abstract projection of the fate of the company in future, rather than the

decided objective or the desired outcome. This process creates a flexibility in the area of staff

initiative, team contribution and adaption during changed circumstances (Ivanauskiene, N, &

Auruskeviciene, V., 2009). Strategic intent f Autoglass results thatthey are the leading company of

the existing market and they are performing as it is necessary to hold the leading position.

Role of Strategy of Autoglass:

The strategic administration of Autoglass has fixed their primary task is to compile and

disseminate the vision of the organization. This outlines express the raison d’etre of the

organization. Autoglass compiled their strategy in such a way so that they can maintain specific

time period for execution of decided strategy.

Objective and Goals of Autoglass:

The main objective of Autoglass is to repair and replace the broken windows and earning the

customer satisfaction. Autoglass has fixed to provide a global service and spread their business

globally. By the reputation and evaluation from the customer they are enhancing their business

region throughout the whole Europe.

Strategic Architecture of Autoglass:

The process of strategic architecture is to answer 5 fundamental questions in order to make the

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

“What Now”, “How” (Grant M. R., 2010). Autoglass is habituated with using these questions

during their company’s strategy preparation.

1.2 Review the vital issues involved in Strategic planning in Autoglass

Strategic planning needs to be shaped up with some vital issues for operating business perfectly.

Given the whole Autoglass company’s operation, we can briefly analysis some of its effective

planning.

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 aggressive advantage of Autoglass.

Competitive Advantage of Autoglass:

Autoglass is a leading widescreen service provider. Its market share in this industry is already

huge with various types of services. Still, it is expanding its current business in other related

potential sectors and also there, it has some competitive advantages. Using the Ansoff’s Growth

Matrix, we can have a clear view of it:

Existing product New Product

New Product Figure: Ansoff’s Model

We can visualize that Ansoff’s Growth Matrix is basically a marketing tool that indicates to four

particular alternatives. Going further through this Autoglass case, we have come to know that it

has already increased its market share and already been looking to be at service of around 1

million customers who have widescreen problem (Hunger 2013). In doing so, it is initiating some

distinctive strategies, like:

Market Penetration: By making strategy a company wants to capture the dominancy in

the existing market. The process of preparing strategy focuses on the larger share of the

market. By the above situation Autoglass need to increase their market segment by

selling more products and earning more customer satisfaction.

Product Development: Here, Autoglass can bring new product like ‘side view mirror’ to

the existing market in order to attract and capture more and more customers.

Market Development:Autoglass can look in to increasing its target customers to

increase its sale by servicing more.

Diversification:Autoglass utilizes this strategy for initiating a new product and spread

risks attached with the previous product.

Autoglass company still has great potential in market. It can still do the betterment of its

services; bring up the latest technology and equipments to attract more customers. It should also

attack its competitors geographically where rest Autoglass has more potential of gaining profit

than any other companies operating there.

Definition of Top-Down and Bottom-Up

Informal planning

Leaders or managers sometimes take a decision or prepare a plan without following the

conventional structure or correct framework that is called informal planning. For instant response

managers need takeing an extempore decision without consulting his subordinate or without

analyzing the overall situation. This helps to make the small term objectives for the development

of the organization.

Top Down

Top down strategy is basically breaking down of a particular system to get access into all of its

sub-systems. Autoglass is utilizing such approach to get successful in its product development

segment.

Bottom Up

Bottom up approach is making pieces of a whole system of a complicated process. Autoglass

company is successful in using this bottom up strategy quite successfully.

Behavioral Approach for Autoglass

To generate the resources and keep attaining the leading position in the near future Autoglass

need to approach in the Top-Down method. In the area of service industry Autoglass is a

growing company and they have to enhance their level of servicing in the future to remain in

track in the competition with other organization. They have to improve their product quality so

that they can grab a diversified market.

1.3 Explain minimum three planning technique for Autoglass

A. BCG Growth Share Matrix:Autoglass have the ability to divide its entire product in

such a way that Autoglass can manage its products systematically in its portfolio. This

particular matrix suggests that there are four types of penalty that have to be faced by the

organization. It also assists the company to enable them to know when to invest into the

existing market line or when to withdraw all the earnings from market segment.

B. SPACE: SPACE means Strategic Position & Action Evaluation Matrix. Autoglass uses

this SPACE technique to get known to the market demand. The technique can also be

used for getting the SWOT analysis.

C. PIMS: Profit Impact of Market Strategy(PIMS) is a kind of special database that

provides enough solid evidence to assist principles and policies in order to achieve

competitive advantage.

Task 2

2.1 Produce an Organizational Audit for Autoglass

SWOT Analysis:

Strengths:

Autoglass provides services at low cost.

Product safety features are high.

Repaired or replaced glasses by windscreen can reduce further damage to itself.

Weakness:

Autoglass does not emphasize on branding its name.

Lack of Promotion.

Opportunities:

Autoglass has a huge potential of expanding its business as very few companies are

offering such services worldwide (Schultz 2006).

Being one of the very few, Autoglass possesses great opportunities to grab the market

and extend its market share.

Autoglass can also introduce new product related to its service and replacement items.

Threats:

Competition between the suppliers is massive in this industry. So it is quite difficult to

identify the exact and perfect supplier.

Sometimes Govt. policies make restriction to any business operation.

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

approaches

PESTLE helps an organization to realize the overall scenario of the environment where it aims to

operate. PESTLE analysis assists any organization to gain maximum opportunities with

minimize threats. Here is the analysis of PESTLE:

Political

Environment regarding the political situation is different in each state or region and so

political influence affects differently in every area.

Stability of a Govt. can affect future condition and atmosphere of a country.

Taxation policies sometimes prevail to any company to operate business in certain

region.

Economical

Economic condition of the people within affects the industry a great deal.

Number of middle class or upper middle class people who need the service of

windscreen.

Socio Cultural

Upgraded life styles and preferences of the people influences industry.

Various social norms and customs affect the decision to buy and own automobiles rather

than using other means of transportation.

Technological

Customers always want what is the latest in the market.

Technology related to windscreen manufacturing is really leaping up.

Legal

There are many mandatory rules and regulations related to the safety of the automobile

vehicles.

Environmental

Raw materials of manufacturing windscreen should not be harmful to the environment,

air and climate as well.

Porter’s 5 factors analysis is a type of measurement which helps the management personnel

realizing the whole context of the windscreen industry. Porter’s 5 factors are here:

I. The Threats of New Entrants

Economies of Scale

Govt. Policies

Access to the Distribution Channel

II. The Bargaining Power of Customers

Suppliers Companies

Ultimate Threat of Backward Integration

III. The Threats of Substitute Products

Access

Price

IV. The Amount of Bargaining Power Suppliers Have

Number of Buyer Company

Ultimate threat of Forward Integration

V. The Intensity of the Competitive Rivalry

Number of Competitors

Diversity of the Rivals

Rate of the Growth of the Industry

2.3 Significance of Stakeholders:

Stakeholders’ Grid

1. The top right part is the stake holders who influences the strategy and promote

the products.

2. The top left part is the stakeholder who influences strategies but they posses’ low

interest in the organization.

3. The bottom right part is the stakeholders who have high concern but low

influence at the organization.

4. The bottom left part is the stakeholders who get low influence and low interest in

the organization.

Figure: Stakeholders’ Grid

The stakeholders are arranged in four classifications so each one of the stakeholders could be

able to identify their explicit rights and duty in order to determine the company strategy which

would 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:

Organic Growth: When business organization gets growth over the own business which is

similar as the opening of the organization, it is call organic growth. It exclude any increase that is

gain by getting in any extra business or merger for acquisition.

Merger: Merger is a process by what two companies get united and turn into one thing through

legal consolidation. The start of Autoglass was during such merger.

Acquisition: This is a process there one particular companies purchase another full company and

establishes it as an owner. In such process 100% near 100% ownership have to be bought.

Strategic Alliance: This is a process there two and more companies agrees upon a number from

common objectives also share each other resources for meet those objective. This thing is

actually a idea that stay between a concept for organic growth also merger and acquisition.

Licensing: It is a process through what an mother company (licensor allows an additional

company licensee) to use it trademark also sell all products and services on a basis of agreement

for several terms. The term include a licensing fee which has to be paid for the licensor.

Franchising: It is the process where an enterprise profits from the correct use of another

company’s trademark, enterprise kind, methods while the franchisor provision the right to the

franchisee. For getting market share overseas, Autoglass may use this approach by circulation

franchises in distinct locations.

Substantial Growth:

Horizontal Integration: for horizontal integration an company form or acquire production

facility for related or matching products (Melody, Y. & Kevin, H., 2000). every so often it may

happen that an company purchases 1 of its competitor also form integration. Autoglass may form

such addition by linking by other production which are related for its existing product.

Vertical Integration: In a vertical integration an company links with companies or partner of a

supply chain also in many case all the partner of the chain stays under an single owners (Melody,

Y. & Kevin, H., 2000). Autoglass may engage into vertical mixing by linking to the suppliers

also distributors.

Related Diversification: When an company expands a business with a diversification in a

existing product line (Arazy, O, & Gellatly, I., 2012). The new production is similar to an

existing product.

Unrelated Diversification: It is a process when some company engage in diversification by

introducing a new product and service that doesn’t go with the existing manufactured goods line

(Arazy, O, & Gellatly, I., 2012). It can be unrelated diversification if Autoglass starts selling

home window glasses or beauty mirrors.

Limited Growth

Market Penetration: It meas penetrating a competitive market with offering a competitive price

against a price of a competitors. This approach is used for instantly attacking the competitors

with gaining their customer. It is used for gain sale growth.

Market Development: It means to target new customer segment and attracting a non-buying

customers for that segment. It help to increase a market share for addition of new portion on

customers. Its possible for Auto glass to develop a market by geologically expanding a business

also reaching the customers.

Product Development: It mean developing a new product that dont exist currently for thus

attracting customers for buy more variety of product or services.

Innovation: It mean searching out an entirely new needs of a customers in a market and

innovating a new products or service to meet and need. Autoglass may try to sort out such needs

in the markets and introduceing an innovated products or service.

Disinvetment:

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 leftovers

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

opposite of investment. It means to pull out the assets of the organization to meets up the

financial problems.

Porter’s Generic Strategy:

Porter’s three distinguished strategies are-

1. Overall Cost Leadership: 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.

2. Differentiation: Only price leadership cannot facilitate a company to grow their business.

The organizations got to place differentiations (Weygandt, J., 2009). 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.

3. 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 strategies and produce new products to enhance their market

segment, so that they can hold their leading position in the market. So in order to make a future

strategy they can come up with some core development along with new products and better

services and grab a prolonged market segment.

Autoglass should follow the vertical growth strategy to enhance their business. They could offer

alliance to other automakers and could combine with them in order to grab a new market

segment. As Autoglass is a strong company itself, they can select an alliance which can cope up

with their capabilities and help to develop the business. This will help Autoglass to focus on the

customer privileges and customer satisfaction.

Starting new product with expended market is not the enough and single solution for the future

strategy. Autoglass should seek a constant review from the customer’s side to identify their

lacking along with customer’s expectations. This will help the management to distribute the

responsibilities to the employee in order to provide more satisfaction to the customer.

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

this rate could be hampered or slightly fluctuate. Autoglass need to keep that in mind that

customer satisfaction is their core moral of business. They can also provide 5 quarters plan to

cope up with the changed situation in the business area and prevail in the competition.

Task 4

4.1 Compare the roles and responsibilities for strategy implementation of

Autoglass

Execution of the policy in the organization is very important and it carries a distinct signification

for the organization’s profit. In the implementation of the policies it indicates to the policies that

are chosen and considered to earn profit for the organization. In the tactical phase the policies are

revised and the feasibility of the policies is tested to see if those policies are practical or not. If

the policies fail to attain significant score then it is turned down and considered as unproductive

one. Autoglass is necessary to use extensive filtering procedures of the policies to grab and retain

the market share.

CEO of an organization is responsible for turning the concepts into reality and makes a mark in

the industry. To apply efficient and effective policies all the groups in the organization are united

at all stages of the policy making and tactical decision which results in a well coherent plan and

the diversification or modification of the tactics are possible.

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.

In order to achieve the targeted market share clear and reliable statements are necessary.

Communal visualizations are required in indentifying and checking the hypotheses, bases of the

policies and propose actions.

Managers need to motivate and influence the employees to execute the policies that are

undertaken efficiently and effectively. Satisfying the target achievement will result in employee

satisfaction and coherence in job environment.

4.2 Evaluate resource requirements to implement a new strategy for Autoglass

For evaluatingall the resources of Autoglasscompany, the organization requires to select the

precise materials in order to place them in the exact departments for providing the services.

Autoglass has always preferred its human resources as it is a service provider of windscreens and

requires a massive man power to fulfill the demand, need and want of the customers.

Autoglasshas already established 159 customer advisors working 24/7 to keep up with the

customer satisfaction. Autoglasshas also fleet servicing which needsmore man power also and

they are cautious about their whole working process. So Autoglass is usually spending a huge

amount of time in developing and training the skills of all the employees in order to provide the

best possible service in the current industry. Autoglassuses to maintain the highest standard of

NVQ; no matter what!

In the given scenario the Autoglass Company is efficient enough 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

5 In 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.

Conclusion:

Table: Evaluation of the outcomes

Various researches have proved that Autoglass customers are much happier than any other that

of the competitors and they have also showed that they are the best in the service industry when

it is comparing to the banking and retailing sectors (Ivanauskiene 2009). Autoglass continues to

win the hearts of their customer via their services and also won a series of awards for being the

best windscreen replacement Company among the competition. Autoglass is not only focusing

on expanding its business but also trying to go beyond its quality of satisfying the customers with

all means. Still it has a great potentiality to mark itself as the leader of the whole world in the

windscreen service industry. While competing with a very few companies who are doing this

kind of service, Autoglass can reach on the top level in the whole world. Then not only UK or

Europe; but also the whole world will admire it for its utmost dedication towards its customers.

References:

Arazy, O, 2012, 'Corporate Wikis: The Impact of Autoglasss in the Windscreen industry, vol. 29,

no. 3, pp. 87-116.

Armstrong, G., &Kotler, P., (2006). Marketing:An introduction (8 thed.). New York: Prentice

Hall.

Hunger, T.L. &J.D., 2013.Strategic Management and Business Policy. 5thed. Delhi: Pearson.

Ivanauskiene, N, 2009, Change Management and Its preparation', Economics & Management,

pp. 407-412.

Schultz, H., (2006). Discover the Traits of Top Management [online]. S.N.[Accessed 30

November, 2013].