Bs 47

280 views
172 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
280
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Bs 47

  1. 1. An assignment on Business Strategy Submitted By: Name: ID: Submitted To: Date of Submission: 1
  2. 2. Executive summary: Study has showed that Autoglass customers are better-off than the competitors and Autoglass is the best service providing organization in the industry contrasted to the banking and different services oriented organizations. Autoglass is being triumphant among the hearts of their patronage through their services and place along won a sequence of awards for being the best windshield replacement company amidst the business. Autoglass has wondrous compilation of services and their products. They are going for larger market. Autoglass’s aim is to conceive the acceptance of the shoppers among the sector of overhauling windshield. From the case and analysis on Autoglass it might be best inferred that Autoglass is in a particularly well-built place to confront the affray and face the new challenges. 2
  3. 3. Table of Contents: Executive summary: ........................................................................................................................ 2 Task 1 .............................................................................................................................................. 4 1.1 The Strategic contexts and Terminology: Missions, Visions, and Core Competencies: ........ 4 1.2 Vital Issues involved in Strategic planning: ........................................................................... 5 1.3 Three techniques for Autoglass:............................................................................................ 9 Task 2: ........................................................................................................................................... 11 2.1 Organizational Audit on Autoglass: .................................................................................... 11 2.2 Environmental Audit for Autoglass: .................................................................................... 12 2.3 Significance of stakeholders:............................................................................................... 16 Task 3: ........................................................................................................................................... 18 3.1 Alternative Strategies: ........................................................................................................ 18 3.2 Future Strategy: .................................................................................................................. 22 Task 4: ........................................................................................................................................... 23 4.1 Roles and Responsibilities for Strategy Implementation: ................................................... 23 4.2 Evaluation of the Resources: ............................................................................................... 24 Conclusion ..................................................................................................................................... 25 References: .................................................................................................................................... 26 3
  4. 4. Task 1 1.1 The Strategic contexts and Terminology: Missions, Visions, and Core Competencies: Mission of the Autoglass Company: Autoglass company mission is to gratify customers. The Autoglass enterprise presents the foremost productive windshield repairing services (Arazy, O, & Gellatly, I., 2012). This operation of persuading the consumers of Autoglass directs them to achieving the visions of their association (Armstrong, G., & Kotler, P. 2006). Vision of the Autoglass Company: The Autoglass company classifies its vision in consider with the target to create the highest degree of individual’s service among the industry. They have currently established a good mesh to help the shoppers and have a 92% satisfactory rate amidst the purchasers (Arazy, O, & Gellatly, I., 2012). Autoglass is growing day by day and this subject can facilitate them to differentiate the strategic boundaries of the firm (Autoglass Company). Strategic Intent: The notion of strategic intent suggests that there is an overall view on where the company should be successful rather than a certain declaration of an estimated outcome and this means that there must be plenty of springiness within the statement to permit for staff initiative, team influence and adaptation in light of different circumstances (Ivanauskiene, N, & Auruskeviciene, V., 2009). The strategic intent of Autoglass Company is to see itself as the market frontrunner always. They are doing all the actions to remain leader. Core Competency: The core competence of the Autoglass is that they will rectify or replace any fairly broken glass of any kind (Arazy, O, & Gellatly, I., 2012). Autoglass provides to the purchasers fleet services to repair or restore any moderately broken or impaired glass (Autoglass Company). 4
  5. 5. Objective and goals of Autoglass The core objective of Autoglass is to gratify their customer by repairing or swapping broken windscreen of every kind of vehicle. The aim of Autoglass is to make their industry grow and aid the global purchaser (Autoglass Company). They are mounting their business by endearing the hearts of the customers. Strategic Architecture of Autoglass The strategic architecture of any company is the procedure of answering the five ultimate questions of building 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 tactical structures of the company. Strategy of Autoglass The key task in strategic supervision is normally the accumulation and diffusion of the vision and the action declaration. This plans essentially the raison d'etre of an organization (Ivanauskiene, N, & Auruskeviciene, V., 2009). Autoglass has accumulated their roles in policy making in a way that the policies maintain a precise time period in the execution (Autoglass Company). 1.2 Vital Issues involved in Strategic planning: There are few issues that need to be thought-about in regard of developing strategies (Ivanauskiene, N, & Auruskeviciene, V., 2009). Given the case we are going to analysis the competitive advantages of Autoglass. Autoglass is placing their concentration on the customer’s inclination and customer service. They have touched the highest happiness level in the service industry only by changing the windscreen in low cost. Autoglass have to be customer oriented and try to escalate their service 5
  6. 6. group in order to encounter with the competition. Supported the case, Ansoff’s model are often adapted to analyze the competitive remunerations (Kupritz, V. & Cowell, E., 2011). Competitive advantage of Autoglass Autoglass is presently a significant service provider of windshield replacement. They have already captured a huge market section with their different types of services. Autoglass is growing and it would be helpful to analyze the competitive advantage they have. Ansoff’s Growth Matrix will be a fantastic tool to analyze the firms competitive advantage (Armstrong, G., & Kotler, P., 2006). Existing Product New Product Existing Market New Market Figure: Ansoff’s Model Ansoff’s Growth Matrix is a marketing tool that provides four methods. As we tend to learned from the case, Autoglass has enlarged its market share and it additionally has the capability to serve more than one million customers having problem with their windscreen (Autoglass 6
  7. 7. Company). So, supported the capabilities Autoglass can offer customers with existing services what is more as introducing a replacement product. Among the matrix with four ways that lays four completely different risks. The methods are: 1. Market penetration: A market plan hereby a corporation’s hunt for gain bigger dominance in a flea market in which it previously has a contribution (Melody, Y. & Kevin, H., 2000). This tactic often emphases on capturing a superior share of a remaining market. Following this strategy, it will permit Autoglass to enlarge its present market by commercialism and attracting further of their manufactured goods. 2. Product development: A new product of “side view mirror” can be introduced to the existing market of windscreen which aids to capture more customers. 3. Diversification: This strategy refers to the introduction of new product to minimize the risk associated with old products. 4. Market development:To capture new customers by attracting new customer groups helps to increase the market share of the company which is the strategy of market development. Autoglass can have a fast growth by providing customer satisfaction, attracting and keeping them. They can also develop new product to match the market demand and also set targets for a time period of three years. For this time period selection of the suitable geographical area to capture the market and efficient suppliers is necessary. Definition of Top-Down and Bottom-Up Informal Planning: Informal planning is the undertaking locality the manager or baton of an aggregation evolves a design after any accepted anatomy and obstinate organisations (Grant M.R. 2010). For assertive flaming situations managers use this get access to locality it is not capital to anatomy any wise anatomy of designing or the timeline for designing is not sufficient. It is significant to doublecheck abbreviate appellation objectives of the organization. 7
  8. 8. Figure: Top-Down and Bottom-Up Strategy Behavioral Approach for Autoglass: Autoglass have to approach in the Top-Down manner in order to get the most out of their resources and to handle the opposition in the future. Autoglass is an emergent company in the service business and the amenity they are providing will not be appropriate for them to clasp on to the location in the market. They requisite to come up with quite a lot of developments for their artifact and market so that they might a diversified market for the clients. 8
  9. 9. 1.3 Three techniques for Autoglass: BCG Growth Share Matrix Strategic Position & Action Evaluation Matrix Products of the Autoglass (SPACE) Profit Impact of Market Company can be divided SPACE planning technique Strategy (PIMS) according to their priority and maintain a harmony in can be used to figure out PIMS is actually a type of the market requirements. the portfolio. The above matrix shows the 4 kind of This matrix consists of four database that supplies material evidence to quadrants indicating the consequences that are facilitate policies and positions of the business faced by an organization principles for acquiring and (Armstrong, G., & Kotler, P. organization and what maintaining competitive should be the reaction of 2006). It also aids to advantage. the organization determine when to invest (Armstrong, G., & Kotler, P. in the present product or 2006). Taking Autoglass’s when to withdraw all the position in the market into earning form the market consideration, aggressive and or whether to strategy can be used introduce a new deal. which also acts as the base for SWOT analysis. Figure: Three Techniques Placing goods in the BCG growth share matrix Autoglass will face 4 types of consequences in the market. And they are: 1. Stars: High Growth and High Market Share  Managers need to take decisions for a great quantity of cost from which the cash will be generated and used.  The company will result in the cash cow and the Company can harvest cash from the business if managers can make the business profitable and maintain a steady market share. 2. Cash Cows: Low Growth but High Market Share 9
  10. 10.  Applying this strategy may result in low market growth of the product but it will also have the highest market share from which the organization will turn in revenues and maintain income. 3. Dogs: Low Growth and Low Market Share  A time may arise after a certain period when revenue generation from the product gradually stops. The organization should withdraw its invest from the business.  The organization should be able to eliminate any unnecessary cost. 4. Question Marks: High Growth but Low Market Share  It indicates to the products that are newly introduced in the market and will gradually increase its acceptance rate to the customers.  There is a risk associated with this which is if market shared is not increased in the future the organization will have to incur a loss. This is called making a dog product. 10
  11. 11. Task 2: 2.1 Organizational Audit on Autoglass: SWOT Analysis Strengths Figure: SWOT Analysis  Autoglass is providing services at relatively low price.  Sufficient safety features are included in the product  The replaced or repaired windscreen has high visual transparency.  Replaced or repaired glasses reduce the probability of further damage. Weaknesses  Promotional activities of the brand are relatively slow.  Insufficient amount of advertisement. 11
  12. 12. Opportunities  As competition is less in the market because a few number of other windscreen companies exist, Autoglas possess a huge possibility of expansion.  New products such as side view mirrors or rear view mirrors can be developed concurrently with repairing and replacing the windscreen.  Large opportunity to grab the market. Threats  It is always difficult to identify and select quality suppliers of raw materials.  Selection of geographical location is vital while selecting the location of the business.  The role of government policies is crucial in shaping the business market. 2.2 Environmental Audit for Autoglass: The strategic decisions of an organization are influenced by the environment where the organization will operate (Gómez, L, & Ballard, D., 2013). To understand the scenario of the environment PESTLE analysis is required to help the organization to maximize the opportunities and minimize the threats. Political  Different Political climate in different countries influences the business strategies.  Various taxation and subsidy policies.  Stability of governments: which refers to the future conditions in a country Economical  Level of economic activity that affects need for windscreen.  Income level of people influences the organizational purchase 12
  13. 13. Socio-cultural  Culture and norms of a society influences the decision whether to own and use automobiles or use other means of transport.  Attitude to a product, lifestyle and preferences influences the industry. Technological  Any tangible development in technology which will decrease the rate of windscreen repairing.  Available design technology.  Manufacturing technology. Legal  Product consuming and employment law.  Local rules and regulations relating to safety measures. Environmental  Various environmental features such as weather, climate, and climate change can affect in the business. To determine and help the management to understand the overall context of the industry, Porter’s 5 forces analysis is necessary (Gómez, L, & Ballard, D., 2013). Porter’s 5 forces are: 13
  14. 14. Figure: Porter’s Five Forces 1. The threat associated with new entrants.  Economies of Scale: This means scale economies in the production which is generally considered as a relatively low threat in this industry.  Access to Distribution Channel: It refers to the ability to create demand and distribution of product to the market.  Government Policy: Governments can limit amount of entry to an industry through licensing requirements by restricting access to raw materials. 2. The bargaining power of customers  Number of supplier Companies: The purchasing power of the customers is mostly controlled by no. of supplier companies.  Threat of Backward Integration: A threat always exists that a buyer can buy a product and reproduces it by backward integration. 3. The threat of substitute products 14
  15. 15.  Prices: Price is the most influencing factor. Customers will switch to the company which offers products with lower price.  Access: Industry is now more accessible to the potential buyers. 4. The amount of bargaining power suppliers  Number of Buyer Companies: This refers to the number of companies which are purchasing raw materials for windscreen manufacturing from number of suppliers.  Threat of forward Integration: Suppliers also pose a threat to integrate the same product trough forward integration. 5. The intensity of the competitive rivalry  Number of Competitors: the number of competitors is comparatively low in this industry.  Rate of Industry Growth: This industry possesses a large potential to become a huge and vastly expanded industry.  Diversity of Rivals: The rivals may come with new and different ideas and it is most likely to cross each other’s path and challenge each other’s position. 15
  16. 16. 2.3 Significance of stakeholders: The stakeholders’ grid: Figure: Stakeholders’ Grid 1. The top right part indicates the stake holders influencing the strategies and promoting the products. 2. The bottom left part indicates the stakeholders having low influence and low interest in the organization. 3. The top left part refers to the stakeholder who influences strategies but they posses’ low interest in the organization. 4. The bottom right part refers to the stakeholders having high interest but low influence in the organization. The stakeholders are retained in four categorizations so that each one stakeholder has their particular rights and liabilities in regard of the constructing the strategies for the organization which will be instigated for the progress of the organization. Autoglass has 16
  17. 17. drawn the stakeholders in the organization so that the stakeholders can implement their liability in concern of the organization’s benefit. 17
  18. 18. Task 3: 3.1 Alternative Strategies: Market Entry Strategy Organic Growth: When an enterprise association accomplishes development over its own enterprise which is as same as the beginning of the association, it is called organic development. It omits any development that is profited by getting into any other business or amalgamation or acquisition. Merger: amalgamation is the procedure by which two businesses gets joined and turns into one entity through lawful consolidation. The beginning of Autoglass was through such amalgamation. Acquisition: This is the procedure where one specific business purchases another entire enterprise and sets up itself as the proprietor. In this procedure 100% or adjacent 100% ownership has to be acquired. Strategic Alliance: This is the procedure where two or more enterprises acquiesce upon a number of widespread objectives and share each other’s assets to rendezvous those objectives. This approach is actually an concept that resides between the notion of organic development and amalgamation or acquisition. Licensing: It is the process through which a mother enterprise (licensor) allows another enterprise (licensee) to use its trademark and deal the items or services on the foundation of agreements on some time span. The time span encompass the licensing ascribe that has to be paid to the licensor. Franchising: It is the procedure, through which a enterprise profits from the right to use another enterprise’s trademark, enterprise form, methods where the franchisor presents the right to the franchisee. For getting market share overseas, Autoglass might use this approach by assigning franchises in distinct positions. 18
  19. 19. Substantive development Horizontal Integration: In level integration a business kinds or acquires output facility of associated or complementary goods (Melody, Y. & Kevin, H., 2000). occasionally it may furthermore happen that a business buys one of its competitors and form integration. Autoglass might form such integration by connecting with other production that are associated to its dwelling goods. Vertical Integration: In upright integration a enterprise connections with the companies or partners of the supply string of links and in many positions all the partners of the string of links stay under a lone proprietor (Melody, Y. & Kevin, H., 2000). Autoglass might recruit into upright integration by connecting with the suppliers and vendors. Related Diversification: When a business expands its enterprise with some diversification in the living product line (Arazy, O, & Gellatly, I., 2012). The new productions are alike to the living items. Unrelated Diversification: It is the procedure when a business engages into diversification by inserting new goods and services that doesn’t acquiesce with the existing product line (Arazy, O, & Gellatly, I., 2012). It can be unrelated diversification if Autoglass begins selling house window crystal or beauty reflectors. Limited Growth: Market Penetration: It means penetrating the comparable market by suggesting comparable cost against the cost of the competitors. This approach is utilised to instantly attack the competitors by benefiting their customers. It is often used to gain sales growth. Market Development: It means aspiring at new clientele segments and appealing the nonbuying clienteles of that segment. It assists to increase the market share by supplementing new 19
  20. 20. piece of customers. It is likely for Autoglass to evolve the market by geographically expanding the business and coming to the customers. Product Development: It means developing new products that do not exist actually and therefore appealing customers to buy more diversity of goods or services. Innovation: It means seeking out an solely new need of the customers in the market and innovating a new merchandise or service to meet that need. Autoglass might try to sort out such need in the market and inject an innovated merchandise or service. Disinvestment: Retrenchment: A design utilised by corporations to decrease the diversity or the general size of the procedures of the company. This scheme is often utilised in alignment to slash charges with the aim of developing a more economic steady enterprise. Turn around: Turnaround management is a method dedicated to business renewal. It uses investigation and designing to save troubled businesses and returns them to solvency. Turnaround management enlists management reassess, activity founded costing, source malfunction determinants enquiry, and SWOT investigation to work out why the enterprise is falling short. In alignment to make a comeback in the business associations need to find out the source of the adversities and founded on those difficulties they need to make up new strategies and principles to overcome those troubles. Liquidation: When an enterprise or firm is terminated or bankrupt, its assets are sold and the improvement pay creditors. Any leftovers are distributed to shareholders. Liquidating a firm is the last stage of the firm’s survival. If no alternate strategies comply with the associations then it yearns to deal its assets and then pay up the shareholders and stakeholders. 20
  21. 21. Divestment: The procedure of swapping an asset. Furthermore renowned as divestiture, it is made for either economic or communal goals. Divestment is the converse of buying into. It is the procedure of dragging out the assets in method and agreements those to rendezvous the gap in the financial adversities and in order to liquidate the association divestment is absolutely vital for any organization. Porter’s Generic Strategy A scheming described by Michael Porter that contains three general strategies which are used by companies to gain the competitive advantage (Armstrong, G., & Kotler, P. 2006). The standard strategies are: 1. Overall Cost Leadership 2. Differentiation 3. Focal Point Figure: Porter’s Generic Stragy 21
  22. 22. 3.2 Future Strategy: To expand in the business, organizations have to formulate future activities to grab consumers’ attention and maintain them. Corporations essentially bring new expertise and new product submissions to form a greater market share (Kupritz, V, & Cowell, E 2011). BCG growth matrix may be beneficial to formulate tactics and act consequently. Autoglass may face four different possibilities in putting the merchandise inside the BCG growth matrix (Kotler, P., 2000). Autoglass must be following the plumb up growth strategy to develop their business. They can go with union with automakers to internment the new marketplace sector. Autoglass is in a strong point and they might be competent to go with the association with new organizations. Because this tactic is appropriate for the business growth and their core proficiencies match with the strategy. Alliance with correlated organizations will consent Autoglass to put more effort on the customer’s fondness and can develop new merchandise class to fulfill the necessities of the customers. Only starting new artifact and mounting the market will not single-handedly help the Autoglass Company to develop in the market. Autoglass should regularly review the advice of the consumers so that they might realize what the customers wants for and to what level of pleasure customers want. Autoglass administration needs to explain the roles and duties to the workforces so that they can arrange for the highest level of happiness to the customers. The Autoglass at this time have a 92% satisfaction rate among the consumers. But with extension of the business the pleasure rate might change and Autoglass must build a timeline for the new targets and addition of the new services. Considering the place in the business, Autoglass can provide a 5 year blueprint that will be appropriate for Autoglass to cope up with the opposition and maintain cooperation with the automakers to develop the business. Autoglass can benchmark 2019 to fulfill with strategies they have taken and justify the assurance to the customers. 22
  23. 23. Task 4: 4.1 Roles and Responsibilities for Strategy Implementation: Execution of the policy among the organization is improbably very important and it carries a particular significance for the organization’s profit (Michael A., 1999). Among the implementation of the policies it indicates to the policies that are chosen and regarded to earn profit for the organization. Among the set-up of action all the policies are revised and the likelihood of the policies are tested to ascertain if those policies are feasible or not (Ivanauskiene, N. & Auruskeviciene, V., 2009). It is important to use full filtering procedures of the policies to grab and retain the market share. All the groups in the organization are united at all stages of the policy making and tactical decision to implement most efficient and effective policies (Dessler, G., 2000). This procedure results in plan coherency and tactics diversification or necessary modification becomes possible. CEO of an organization makes a mark in the industry by turning these concepts into reality. Autoglass administering has to activate the business and sales strategies to ensure the best exchange allocation and sales. The sales accession should be developed in a way that can accrue up with the animosity in the market. Effective advertisements in accordant areas adeptness admonition a lot in this regard. The bulk competencies should be acutely focused to attraction the customers. It is the job of a manager to motivate and influence the employees to ensure proper execution of established plans. Target achievement fulfilling will result in coherency in job environment and job satisfaction within the employees. Transparent and unswerving statements are necessary to secure the targeted market share. Communal visualizations are required in detecting and checking the propositions, bases of the policies and propose actions (Gómez, L, & Ballard, D., 2013). 23
  24. 24. 4.2 Evaluation of the Resources: In order to grasp and valuate the resources of Autoglass, the organization should pick for the precise materials and place them among the proper departments to produce the services (Michael A., 1999). Autoglass in addition has fleet service stations that desires man power and that they also are cautious relating to their men power. Autoglass has prioritized its human resources as a result it has been the simplest service provider of windscreens repairing and replacement. Thus Autoglass outlays great quantity in work and developing the skills of the staff to provide the foremost effective service among the industry. Timeliness in service schedule ensures highest order of company good will. Autoglass is now the leading Company is that it is maintaining its time schedule properly and choosing best raw materials as well as ensuring enough safety features. Autoglass Company is efficient in their resource planning and evaluating the resources thoroughly to provide the best service in this given case situation. 4.3 Discuss targets and timescales for achievement for Autoglass to monitor a given strategy: Evaluation of the benchmark outcomes: Quarter The company should be bring up with the strategies and find out the feasibility of 1 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 During the period Autoglass should review the customer’s feedback and 2 implement the desired plan to expand the business. The line managers should be responsible for collecting the feedbacks and acting towards it. Quarter This is the quarter of gathering information and takes research note on the implemented strategies. The management should find out the gap between the 24
  25. 25. 3 expected outcome and actual outcome. The GAP might occur because of lack of coordination or inefficiency of the employees and line managers. Quarter Management should organize a training program to fill in the gap. So that the 4 employees can achieve the organization goal in desired manner. Quarter In this quarter the organization might achieve the desired results based on the 5 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 As a market leader Autoglass has set a new standard of services to its customers. This example cannot be done without teamwork and Autoglass shows that they have a huge number of qualified and efficient workers by whom they have achieved which was once unimaginable in this industry. Their customer satisfaction rate is envious for a service company of the world. Their technological initiation was thrilling for the customers. Now-a-day they are trying to expand their market and it may cause those facing new challenges but in order to become a global market leader every company should accept any kind of challenges. 25
  26. 26. References: Arazy, O, & Gellatly, I 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 (8th Ed.). New York: Prentice Hall. Autoglass Company. [ONLINE] Available at: http://www.autoglass.co.uk/Glass-repair-andreplacement.186.0.html. [Accessed 05 December, 2013]. Dessler, G., 2000. Human Resource Management. 5th ed. Delhi: Pearson. Gómez, L, & Ballard, D., 2013, 'Communication for the Long Term: Information Allocation and Collective Reflexivity as Dynamic Capabilities', Journal Of Business Communication, vol. 50, no. 2, pp. 208-220 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. Wheelen & Hunger, T.L. &J.D., 2013. Strategic Management and Business Policy. 5th ed. Delhi: Pearson. 26

×