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An assignment on

Business Strategy

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Table of Contents
Executive Summary .................................................................................................................. 2
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 ............................................ 6
Task 2 ........................................................................................................................................ 8
2.1 Produce an organisational Audit for Autoglass .............................................................. 8
2.2 Carry out an environmental audit for Autoglass using at least two approaches ............. 9
2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass ................. 12
Task 3 ...................................................................................................................................... 13
3.1 Analyse possible alternatives strategies relating to substantive growth, limited growth
and retrenchment ............................................................................................................... 13
3.2 Select an appropriate future strategy for Autoglass ...................................................... 16
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

1
Executive summary:
As an aftereffect of their allegiance and believability Autoglass, a windshield acclimation
and replacing aggregation has been able to be accustomed as the arch aggregation in the
corresponding sector. The windshield of Autoglass after most abundant best than the
aforementioned of the added competitors and appear with able assurance attachments.
The statistics and analysis corroborates the actuality that Autoglass has been able to
abduction the above allotment of the bazaar and an amazing amount of 92% of their barter is
annoyed with the account they provide. But the adventure was not consistently affable as
now. They had to attempt their way to become the arch aggregation from their starting as a
baby ancestors business. But now accept their wings advance not alone at home but
additionally away in added countries of Europe with an absolute no. of bristles hundreds
branch. They additionally aim to aggrandize their advance by introducing new artefact to the
bazaar alongside with the present windscreen acclimation and replacing account with an
appearance to allure new barter as able-bodied as application the old ones.
Autoglass aggregation behavior and strategies are distinctively focused on application the
best raw abstracts accessible and alignment them properly. They additionally aim to finer and
calmly use the accessible animal assets and advance an adapted abode ambiance which leads
to added productivity.

2
Task 1

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

Mission of the AutoglassCompany
The Autoglass Company aims to provide best windscreen service and thus ensure customer
satisfaction which is the mission of the organization.The organizational mission of satisficing
the customers, is compatible with its vision.
Core Competency
Reaching the customers quickly and being able to replace or repair any kind of glass either
broken or damaged, is the core competency of Autoglass Company.
Vision of the AutoglassCompany
Autoglass has been able to expand its network widely which is corroborated by an amazing
92% customer satisfactory feedback rate. The company has a clear vision which is
harmonious with its mission to ensure customer satisfaction.
Objective and goals of Autoglass

The goal of Autoglass is to make their business grow and serve the global customer
(Autoglass Company).The main objective of Autoglass is to satisfy their customer by
repairing or replacing broken windscreen of any vehicle. They are expanding their business
by winning the hearts of the customers.
Strategic Intent:
The strategic intent of Autoglass is to see itself as the market leader always. The concept of
strategic intent implies that there is a general view on where the company should be going

3
rather than a definite statement of an expected outcome and this means that there should be
plenty of flexibility within the statement to allow for staff initiative, team contribution and
adaptation in light of changed circumstances (Ivanauskiene, N, &Auruskeviciene, V.,
2009).They are doing all the activities to remain leader.

Role of Strategy of Autoglass:
Autoglass has compiled their roles in strategy making in a way that the strategies maintain a
specific time period in the execution (Autoglass Company).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).

4
1.2 Review the vital issues involved in Strategic planning in Autoglass
For a huge company like Autoglass which has captured the majority of market share, using
Ansoff’s Growth Matrix to analyze competitive advantage is the best approach.

Existing Product

New Product

Existing
Product

Market
Penetration

New
Product

Market
Development

Product
Development

Diversification

Figure: Ansoff’s Model
Autoglass is presently serving nearly 1 million customers with their problematic windscreen.
Still it has the capability and intention to introduce a new product of side view mirrors into
the market. But before directly penetrating a new product into the market, we have to
consider the risks associated with this product. Ansoff’s Growth Matrix is basically a market
analyzing tool that comprises of four alternative strategies which are given below with the
perspective of Autoglass Company.

5
 Market penetration: It involves selling more established products into existing
markets, often by increased promotion or price reductions or better routes to market,
for example online.
 Market development: This strategy refers to the attainment of new customer groups.
Autoglass can increase their market segments to capture new customers.
 Diversification: Risk can be dissipated by introducing new product to the market
which is the epitome of this strategy.
 Product development: According to this strategy an introduction of new product like
“Side View Mirror” can be fruitful to attract more new customers and thus increases
versatility.
The growth rate of Autoglass can be expedited by providing customer satisfaction, attracting
new customers and as well as retaining the old ones. To keep the pace of growth the
company should plan for a time period of 3 years. For this targeted period of time a
geographical area has to be selected where they can develop a market and also have to select
suppliers who can provide quality raw materials.

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 to take an extempore decision without
consulting his subordinate or without analyzing the overall situation. This helps to make the
short term objectives for the development of the organization.
Top Down:Discerning the constitutional sub-systems of an organization by breaking down
the system is Top Down approach.Autoglass is successful in using the approach in their
product development.
Bottom-Up: A bottom-up approach is the piecing together of systems to give rise to more
complex systems, thus making the original systems sub-systems of the emergent

6
system.Autoglass is successful in using this approach to provide the services to the
customers.

1.3 Explain minimum three planning technique for Autoglass
1. BCG Growth Share Matrix:
The 4 types of consequences that will be faced by an organization are demonstrated in this
matrix. Autoglass can divide their products according to their priority in a harmonious
manner (Armstrong 2006). It also enlightens the organization about 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.Four types of consequences in the market can be faced while placing
goods in the BCG growth share matrix which are:
1. Stars: High Growth and High Market Share
 Great amount of cash is required for this consequence for which decision
makings is required from managerial level about from which source cash will
be generated and where to use these cash(Kotler 2006).
 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
 In this probable sequence a product may face the problem of lower market
growth but it ensures maximum market share which increases the total
revenue earning and income level(Kotler 2006).
3. Dogs: Low Growth and Low Market Share
 This is the stage when a product neither has higher growth or larger market
share which stops the income and revenue flow. So company should think
about withdraw its investment from the business.
 Any unnecessary cost should be eliminated.
4. Question Marks: High Growth but Low Market Share

7
 This stage is applicable for new products which are yet to earn mass
acceptance.
 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.

2. Profit Impact of Market Strategy (PIMS):
A special type of database that corroborates the company policies and principles for
competitive advantage gaining as well as retaining is PIMS.
3. Strategic Position & Action Evaluation Matrix (SPACE):
SPACE planning technique aids to the better understand of the market requirements
and according operations necessary to be carried out. . Autoglass can be aggressive in
their market strategy as they possesses major market share. SWOT analysis is also
based on this matrix. This two dimensional matrix indicates the positions of the
business organization and prescribes what should be the appropriate reaction

8
Task 2
2.1 Produce an Organizational Audit for Autoglass

SWOT Analysis

Figure: SWOT Analysis
Strengths
 Quality Service with relatively low cost
 Sufficient safety features are included
 The replaced or repaired windscreen comes with maximum visual clarity.
 The repaired or replaced glasses are long lasting.

9
Weaknesses
 Insufficient amount of advertisement.
 The reluctance of the organization for the product promotion

Opportunities
Very companies are competing with Autoglass at present. So it really got the opportunity to
expand to its full extent(Arazy 2012).
 It has already captured a prime amount of market share and it is possible to increase it
even further.
 New products like “Rear view mirrors” or “Side View Mirrors” or both can be
introduced concurrently with their windscreen repairing and replacement service.
Threats
 Determining the supplier who can provide quality raw materials is a difficult and
sensitive task.
 Suitable selection of geographical location where the organization will operate is
vital for its existence.
How business market will act is also influenced by various governmental policies.

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

The operating environment of any organization has a high influence on its future decisions.
So it is always best practice to thoroughly understand the scenario of operating environment.
Using PESTILE analysis is the best approach to serve this purpose.

10
PESTLE analysis:
Political
 Political climate in different countries is different and the policies influence the
business strategies.
 Government stability of any country affects the future conditions
 Various subsidies and taxation policies.
Socio-cultural
 Social norms that impact the decision to own and use automobiles versus other means
of transport.
 People’s lifestyle and their preferences alsoinfluence the industry.
Technological
 Any change in related technology in this sector can increase or decrease repair or
replace of windscreen.
 Manufacturing Technology.
 Design related technologies.
Economical
 Economic activity level of any population that affects the need for windscreen.
 The buying capacity of people influences the unit sales of the organization.

Environmental
 The change of Environmental features such as weather and climate over a
geographical region has its own effects on organization.
Legal
 Law regarding consumer and employment is highly emphasized.
 Safety measures explicated by local authority and provisions.

11
Another type of analysis which determines and helps the management to understand the
overall context of the industry is Porter’s 5 force technique.
Porter’s 5 forces are:
1. The threat of new entrants
 Access to Distribution Channel: It is the ability to create demand and distribute the
product in the market.
 Government Policy: The entrance of new product can be limited if Government
restricts the access to raw materials though licensing requirements.
 Economies of Scale: This means scale economies in the production. Generally a
very low threat exists in this industry.

2. The bargaining power of customers
 Number of supplier Companies: The number of supplier companies controls the
purchasing power of the customers.
 Threat of Backward Integration: It is the threat a customer exploits that he/she
may reproduce the product by backward integration.

3. The threat of substitute products
 Prices:Most crucial factor is setting the unit selling price of the product. Customers
always demand quality products at reasonable price.
 Access:At present accessing an industry is much easier for an customer than it was
before.

4. The amount of bargaining power suppliers have
 Threat of forward Integration:Supplier can decide to manufacture the product with
the raw material he possesses.
 Number of Buyer Companies:If many companies are purchasing the raw materials
for manufacture form the same supplier within a region than the supplier gets more
bargaining powers

12
5. The intensity of the competitive rivalry
 Number of Competitors:Competitive rivalry depends of no of competitors present.
The number of competitors is comparatively low in this industry.
 Rate of Industry Growth:This industry has the potential to become a huge industry.
Diversity of Rivals: The rivals with new and different ideas of competing will likely cross
each other’s path and challenge other’s position.

2.3 Explain the significance of stakeholders’ analysis in relation to
Autoglass
The stakeholders’ grid:

High
Influence
(Latents)

High
Influence
High Interest
(Promoters)

Low
Influence
High Interest
(Defenders)

Low
Influence
Low Interest
(Apathetic)

Low Interest

Figure: Stakeholders’ Grid
The top left part refers to the stakeholder who influences strategies but they posses’ low
interest in the organization(Arazy 2012).

13
1. The top right part refers to the stake holders who influences the strategies and
promote the products.
2. The bottom left part refers to the stakeholders who have low influence and low
interest in the organization.
3. The bottom right part refers to the stakeholders who have high interest but low
influence in the organization.

14
Task 3

3.1 Analyze possible alternatives strategies relating to substantive growth,
limited growth and retrenchment

Market Entry Strategy
Strategicalliance: This is the activity locality two or added businesses accede aloft a cardinal
of accepted objectives and allotment celebration other’s assets to accommodated those
objectives. This get access to is wholeheartedly an abstraction that resides in the middle of
the abstraction of amoebic accelerate and coalition or acquisition.
OrganicGrowth: Back a business alignment accomplishes accelerate over its own enterprise
which is as aforementioned as the alpha of the association, it is alleged amoebic
development. It omits any advance that is came by by acknowledging into any supplemented
business or coalition or acquisition.
Acquisition: This is the action locality one accurate aggregation buys addition absolute
aggregation and establishes itself as the proprietor. In this activity 100% or abreast 100%
buying has to be bought.
Merger: coalition is the action by which two businesses gets affiliated and turns into one
item through accepted consolidation. The alpha of Autoglass was through such merger.
Franchising: It is the method, through which a aggregation profits from the befitting to use
Addition Company’s trademark, enterprise form, procedures locality the franchisor gives the
befitting to the franchisee. For accepting bazaar allotment abroad, Autoglass proficiency use
this get access to by allotment franchises in altered positions.
Licensing: It is the activity through which a mother aggregation (licensor) allows supplement
aggregation (licensee) to use its brand and advertise the items or casework on the

15
groundwork of affirmations on several periods. The affirmation accommodate the licensing
fee that has to be paid to the licensor.

Substantive Growth
HorizontalIntegration: In accumbent affiliation an aggregation forms or comes by assembly
ability of accompanying or commutual items (Melody, Y. & Kevin, H., 2000). Occasionally
it may additionally emerge that an aggregation purchases one of its competitors and anatomy
integration. Autoglass proficiency anatomy such affiliation by bond with added assembly that
are accompanying to its unconditional goods.
RelatedDiversification: Back an aggregation expands its enterprise with some about-face in
the unconditional artefact band (Arazy, O, &Gellatly, I., 2012). The new productions are
agnate to the unconditional goods.
UnrelatedDiversification: It is the action back an aggregation enlists into about-face by
inserting new articles and casework that doesn’t bout with the unconditional artefact band
(Arazy, O, &Gellatly, I., 2012). It can be distinct about-face if Autoglass begins affairs
dwelling window crystal or adorableness mirrors.
VerticalIntegration: In upright affiliation an aggregation connections with the companies or
ally of the accumulation alternation and in abounding cases all the partner of the alternation
break beneath a distinct purchaser (Melody, Y. & Kevin, H., 2000). Autoglass proficiency
appoint into upright affiliation by bond with the suppliers and vendors.
Limiteddevelopment
MarketPenetration: It agency gnawing the aggressive bazaar by alms hard-hitting amount
adjoin the amount of the competitors. It is generally acclimated to accretion sales
development. This get access to is acclimated to instantly advance the competitors by
acknowledging their customers.
ProductDevelopment: It bureau evolving new articles that do not abide actually and
appropriately alluring barter to purchase supplemented varieties of items or services.

16
MarketDevelopment: It bureau aiming at new chump segments and alluring the non-buying
barter of that segment. It assists to get access to the bazaar allotment by abacus new
allocation of customers. It is accessible for Autoglass to advance the bazaar by
geographically accretion the enterprise and comprehensive the customers.
Innovation: It agency looking out an absolutely new ascribe of the barter in the bazaar and
innovating a new artefact or account to accommodate that need. Autoglass proficiency try to
array out such ascribe in the bazaar and acquaint an innovated artefact or service.

Disinvestment:
Turnaround: Turnaround management is an activity committed to built up renewal. It
utilises assay and planning to save afflicted companies and allotment them to solvency.
Turnaround management involves management reconsider, activity founded costing,
cornerstone abortion causes investigation, and SWOT assay to actuate why the aggregation is
falling short. In change to accomplish an enhancement in the industry associations ascribe to
acquisition out the cornerstone of the problems and founded on those difficulties they charge
to accomplish up new schemes and behavior to sway those difficulties.
Retrenchment: An action acclimated by companies to abate the assortment or the allembracing admeasurement of the procedures of the business. This activity is usually
acclimated in adjustment to slash charges with the ambition of agreeable a supplemented
banking abiding enterprise.
Divestment: The action of activities an asset. Additionally acknowledged as divestiture, it is
fabricated for either banking or entertaining goals. Renunciation is the adverse of investment.
It is the activity of activities out the assets in operation and deals those to accommodate the
gap in the banking difficulties and in adjustment to cash the alignment denial is all-important
for any association.
Liquidation: Back a enterprise or close is concluded or bankrupt, its assets are soaked and
the gain pay creditors. Any assortment are broadcast to shareholders. Liquidating a close is
the aftermost designated day of the firm’s survival. If no another schemes accede with the

17
associations afresh it desires to advertise its assets and afresh pay up the shareholders and
stakeholders.

Porter’s Generic Strategy
A schematic described by Michael Porter consisting of 3 strategies which are commonly
followed by companies for their competitive advantage are discussed in the following:
1. Overall Cost Leadership
2. Focal Point
3. Differentiation
Overall Cost Leadership
The case scenario enlightens us about the strategy of Autoglass Company which is a cost
leadership approach for market entrance and attracting more customer than the other
competing companies.
Focal Point
It is already clear to us that Autoglass is leading the market in the sector of windscreen
repairmen and replacement. They have fixed their focused on how to ensure even better
customer satisfaction.
Differentiation
Differentiation is necessary along with cost leadership to aid an organization to flourish its
business. Differentiation was introduced to the service of theAutoglass Company by
introducing 24/7 customer advising operations and the fleet servicing..

3.2 Select an appropriate future strategy for Autoglass

For Autoglass Company, ascertainment is focused on bound advance specially. New
strategies as able-bodied as new articles are adapted by the Autoglass Company in
adjustment to aggrandize the bazaar share.So, advancing a BCG Advance Allotment Matrix

18
and an artefact portfolio can advise them to actuate their approaching strategies (Kotler
2006).
Autoglass can go with accordance with automakers to abduction the new exchange segment.
They should be after the vertical beforehand activity to abound their business. Autoglass is in
a bright position and they adeptness be able to go with the accordance with new
organizations. Because this activity is acclimatized for the organizations beforehand and their
bulk capabilities bender with the strategy. Accordance with accompanying organizations will
ascribe Autoglass to put added focus on the customer’s another and can beforehand new
accomplishment chic to achieve the needs of the customers.
In acclimation to acclaim the exchange delivery Autoglass Company needs new strategies
and new accessories which can be attainable for them to beforehand the market. So because
abutting activity they can appraisal their exchange allegation and arise up with some
development of the new accomplishment to adapt their casework and abduction a new
exchange segment.
Only starting new accomplishment bandage and accession the exchange will not alone
admonition the Autoglass Company to acclaim in the market. Autoglass should consistently
assay the acceptance of the bargain so that they adeptness apperceive what the bargain are
adorable for and to what affiliated of accomplishment bargain want. Autoglass administering
needs to ascertain the roles and responsibilities to the admiral so that they can board the able
affiliated of accomplishment to the customers.
But with addition of the business the accomplishment bulk adeptness adapt and Autoglass
allegation to anatomy a timescale for the new goals and addition of the new services.
Because the position in the industry, Autoglass can board a 5 address plan that will be
adequate for Autoglass to cope up with the animosity and beforehand accordance with the
automakers to acclaim the business. Autoglass can archetype abutting 5 address to acquire
with strategies they acquire taken and achieve the allegation to the customers.

19
Task 4
4.1 Compare the roles and responsibilities for strategy implementation of
Autoglass
Implementing the strategies that already accept been taken implies detached acceptation on
the authoritative accumulation margin.Implementation agency alternative of activity which
after-effects in accumulation earning. The abutting appearance is the appropriate
phase(Automotive Industry 2013). In this appearance behavior are advised to analysis the
advantage of the behavior that whether they accept applied account or not. Again a account is
assigned to anniversary activity and if any activity fails to accomplish acknowledged account
again it is alone and best able and able behavior are selected.
It is the albatross of the CEO of an alignment to assassinate the affairs and
concepts(Ivanauskiene 2009).All the groups in the alignment are affiliated at all stages of the
activity authoritative and appropriate accommodation to apparatus best able and able
policies. This activity after-effects in plan coherency and approach about-face or allimportant modification becomes possible.
Capturing a targeted bazaar allotment requires specific and précised statements. In audition
and blockage the propositions and bases of behavior and proposed action, common decision
is the best able technique(Automotive Industry 2013).
Motivation and influencing adeptness of the managers can ensure able and able beheading of
already undertaken policies. It additionally helps to accomplish the targeted accomplishment
which engenders affable and adapted abode environment.

4.2 Evaluate resource requirements to implement a new strategy for
Autoglass

20
Precision is a charge while allotment the abstracts and actual adjustment of these abstracts is
additionally necessary. As Autoglass is an account accouterment company, accurate
administration of its ample bulk of workforce is addition arduous task. It already has 159
chump admiral alive consistently to accommodate the assorted barter demand. So
Autoglassrequires a huge bulk of advance in able training and developing the abilities of the
advisers to advance the best account accouterment to the customers.Autoglassemphasizes on
advancement the accomplished accepted of NVQ.
Autoglass is the arch Aggregation in the industry because they are application the best
abstracts to ensure the allegiance and acceptable assurance adapter to the barter and
additionally advancement time in carrying the service.
In the accustomed book the AutoglassCompany is gifted in their ability to plan and
evaluating the assets thoroughly to accommodate the best service.

4.3 Discuss targets and timescales for achievement for Autoglass to monitor
a given strategy:
Evaluation of the benchmark outcomes:
Quarter

The accession should be accompany up with the strategies and accession out the

1

achievability of the strategies whether the strategies would reflect in the
acclimatized outcome. They can analysis the accepting of the arrangement and
accession out what abroad they are ambrosial for in the windscreen acclimation
service. There should be anniversary and anniversary analysis by the cast
managers of the divisions.

Quarter

During the aeon Autoglass should analysis the customer’s acknowledgment and

2

apparatus the adapted plan to aggrandize the business. The band managers should
be amenable for accession the feedbacks and acting appear it.

Quarter

This is the appraisal of accession admonition and takes appraisal agenda on the

3

implemented strategies. The administering should accession out the gap amidst
the acclimatized aftereffect and complete outcome. The GAP adeptness action
because of abridgement of allocation or adversity of the admiral and cast

21
managers.
Quarter

Management should acclimatize a training address to abounding in the gap. So

4

that the admiral can accomplish the alignment appetence in acclimatized manner.

Quarter

In this assay the alignment adeptness accomplish the acclimatized after-effects

5

based on the action authentic and the accomplishing method. If the administering
fails to accomplish the objectives through the strategies, again they access to
acquire accomplishments based on admonition like training the admiral or
accouterment abutment to them.
Table: Evaluation of the outcomes

Summary and findings
Autoglass Company has been able to win the heart of the customers by providing best
customer service and that’s why their customers are happier comparatively to other
competitive companies. As a result they are the leading service industry in comparison to
retailing and banking sectors and researches and statistics corroborate this fact.Due to their
outstanding performance and service quality they have won a series of rewards and
achievements at the very best level. Steadily and gradually they are expanding their market
share. Starting from a small family business they have five hundreds of branches which are
located all over the Europe. Their focus on the customer satisfaction has made the pioneer in
this field of servicing windscreen. From the given case scenario given it can be deduced that
the company is in a strong position to face the competition and ever ready to face new
challenges that will arise in this field.

22
References
Arazy, O, 2012, 'Corporate Wikis: The Impact of Autoglasss in the Windscreen industry, vol.
29, no. 3, pp. 87-116.
Armstrong, G. (2006). Marketing:An introduction (8thed.). New York: Prentice Hall.
Automotive Industry: Market Research Reports, Statistics and Analysis. 2013. Automotive
Industry: Market Research Reports, Statistics and Analysis. [ONLINE] Available at:
http://www.reportlinker.com/ci02294/Automotive.html. [Accessed 19 November,
2013].
Ivanauskiene, N, 2009, Change Management and Its preparation', Economics &
Management, pp. 407-412.
Kotler, P., 2000. Marketing Management. 5th ed. New Delhi: Prentice hall of India.

23

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  • 1. An assignment on Business Strategy Submitted: Name: ID: Submitted To: Date of Submission
  • 2. Table of Contents Executive Summary .................................................................................................................. 2 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 ............................................ 6 Task 2 ........................................................................................................................................ 8 2.1 Produce an organisational Audit for Autoglass .............................................................. 8 2.2 Carry out an environmental audit for Autoglass using at least two approaches ............. 9 2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass ................. 12 Task 3 ...................................................................................................................................... 13 3.1 Analyse possible alternatives strategies relating to substantive growth, limited growth and retrenchment ............................................................................................................... 13 3.2 Select an appropriate future strategy for Autoglass ...................................................... 16 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 1
  • 3. Executive summary: As an aftereffect of their allegiance and believability Autoglass, a windshield acclimation and replacing aggregation has been able to be accustomed as the arch aggregation in the corresponding sector. The windshield of Autoglass after most abundant best than the aforementioned of the added competitors and appear with able assurance attachments. The statistics and analysis corroborates the actuality that Autoglass has been able to abduction the above allotment of the bazaar and an amazing amount of 92% of their barter is annoyed with the account they provide. But the adventure was not consistently affable as now. They had to attempt their way to become the arch aggregation from their starting as a baby ancestors business. But now accept their wings advance not alone at home but additionally away in added countries of Europe with an absolute no. of bristles hundreds branch. They additionally aim to aggrandize their advance by introducing new artefact to the bazaar alongside with the present windscreen acclimation and replacing account with an appearance to allure new barter as able-bodied as application the old ones. Autoglass aggregation behavior and strategies are distinctively focused on application the best raw abstracts accessible and alignment them properly. They additionally aim to finer and calmly use the accessible animal assets and advance an adapted abode ambiance which leads to added productivity. 2
  • 4. Task 1 1.1 Explain the role of strategy, mission, visions, objective, goals and core competencies of Autoglass Mission of the AutoglassCompany The Autoglass Company aims to provide best windscreen service and thus ensure customer satisfaction which is the mission of the organization.The organizational mission of satisficing the customers, is compatible with its vision. Core Competency Reaching the customers quickly and being able to replace or repair any kind of glass either broken or damaged, is the core competency of Autoglass Company. Vision of the AutoglassCompany Autoglass has been able to expand its network widely which is corroborated by an amazing 92% customer satisfactory feedback rate. The company has a clear vision which is harmonious with its mission to ensure customer satisfaction. Objective and goals of Autoglass The goal of Autoglass is to make their business grow and serve the global customer (Autoglass Company).The main objective of Autoglass is to satisfy their customer by repairing or replacing broken windscreen of any vehicle. They are expanding their business by winning the hearts of the customers. Strategic Intent: The strategic intent of Autoglass is to see itself as the market leader always. The concept of strategic intent implies that there is a general view on where the company should be going 3
  • 5. rather than a definite statement of an expected outcome and this means that there should be plenty of flexibility within the statement to allow for staff initiative, team contribution and adaptation in light of changed circumstances (Ivanauskiene, N, &Auruskeviciene, V., 2009).They are doing all the activities to remain leader. Role of Strategy of Autoglass: Autoglass has compiled their roles in strategy making in a way that the strategies maintain a specific time period in the execution (Autoglass Company).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). 4
  • 6. 1.2 Review the vital issues involved in Strategic planning in Autoglass For a huge company like Autoglass which has captured the majority of market share, using Ansoff’s Growth Matrix to analyze competitive advantage is the best approach. Existing Product New Product Existing Product Market Penetration New Product Market Development Product Development Diversification Figure: Ansoff’s Model Autoglass is presently serving nearly 1 million customers with their problematic windscreen. Still it has the capability and intention to introduce a new product of side view mirrors into the market. But before directly penetrating a new product into the market, we have to consider the risks associated with this product. Ansoff’s Growth Matrix is basically a market analyzing tool that comprises of four alternative strategies which are given below with the perspective of Autoglass Company. 5
  • 7.  Market penetration: It involves selling more established products into existing markets, often by increased promotion or price reductions or better routes to market, for example online.  Market development: This strategy refers to the attainment of new customer groups. Autoglass can increase their market segments to capture new customers.  Diversification: Risk can be dissipated by introducing new product to the market which is the epitome of this strategy.  Product development: According to this strategy an introduction of new product like “Side View Mirror” can be fruitful to attract more new customers and thus increases versatility. The growth rate of Autoglass can be expedited by providing customer satisfaction, attracting new customers and as well as retaining the old ones. To keep the pace of growth the company should plan for a time period of 3 years. For this targeted period of time a geographical area has to be selected where they can develop a market and also have to select suppliers who can provide quality raw materials. 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 to take an extempore decision without consulting his subordinate or without analyzing the overall situation. This helps to make the short term objectives for the development of the organization. Top Down:Discerning the constitutional sub-systems of an organization by breaking down the system is Top Down approach.Autoglass is successful in using the approach in their product development. Bottom-Up: A bottom-up approach is the piecing together of systems to give rise to more complex systems, thus making the original systems sub-systems of the emergent 6
  • 8. system.Autoglass is successful in using this approach to provide the services to the customers. 1.3 Explain minimum three planning technique for Autoglass 1. BCG Growth Share Matrix: The 4 types of consequences that will be faced by an organization are demonstrated in this matrix. Autoglass can divide their products according to their priority in a harmonious manner (Armstrong 2006). It also enlightens the organization about 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.Four types of consequences in the market can be faced while placing goods in the BCG growth share matrix which are: 1. Stars: High Growth and High Market Share  Great amount of cash is required for this consequence for which decision makings is required from managerial level about from which source cash will be generated and where to use these cash(Kotler 2006).  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  In this probable sequence a product may face the problem of lower market growth but it ensures maximum market share which increases the total revenue earning and income level(Kotler 2006). 3. Dogs: Low Growth and Low Market Share  This is the stage when a product neither has higher growth or larger market share which stops the income and revenue flow. So company should think about withdraw its investment from the business.  Any unnecessary cost should be eliminated. 4. Question Marks: High Growth but Low Market Share 7
  • 9.  This stage is applicable for new products which are yet to earn mass acceptance.  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. 2. Profit Impact of Market Strategy (PIMS): A special type of database that corroborates the company policies and principles for competitive advantage gaining as well as retaining is PIMS. 3. Strategic Position & Action Evaluation Matrix (SPACE): SPACE planning technique aids to the better understand of the market requirements and according operations necessary to be carried out. . Autoglass can be aggressive in their market strategy as they possesses major market share. SWOT analysis is also based on this matrix. This two dimensional matrix indicates the positions of the business organization and prescribes what should be the appropriate reaction 8
  • 10. Task 2 2.1 Produce an Organizational Audit for Autoglass SWOT Analysis Figure: SWOT Analysis Strengths  Quality Service with relatively low cost  Sufficient safety features are included  The replaced or repaired windscreen comes with maximum visual clarity.  The repaired or replaced glasses are long lasting. 9
  • 11. Weaknesses  Insufficient amount of advertisement.  The reluctance of the organization for the product promotion Opportunities Very companies are competing with Autoglass at present. So it really got the opportunity to expand to its full extent(Arazy 2012).  It has already captured a prime amount of market share and it is possible to increase it even further.  New products like “Rear view mirrors” or “Side View Mirrors” or both can be introduced concurrently with their windscreen repairing and replacement service. Threats  Determining the supplier who can provide quality raw materials is a difficult and sensitive task.  Suitable selection of geographical location where the organization will operate is vital for its existence. How business market will act is also influenced by various governmental policies. 2.2 Carry out an environmental audit for Autoglass using at least two approaches The operating environment of any organization has a high influence on its future decisions. So it is always best practice to thoroughly understand the scenario of operating environment. Using PESTILE analysis is the best approach to serve this purpose. 10
  • 12. PESTLE analysis: Political  Political climate in different countries is different and the policies influence the business strategies.  Government stability of any country affects the future conditions  Various subsidies and taxation policies. Socio-cultural  Social norms that impact the decision to own and use automobiles versus other means of transport.  People’s lifestyle and their preferences alsoinfluence the industry. Technological  Any change in related technology in this sector can increase or decrease repair or replace of windscreen.  Manufacturing Technology.  Design related technologies. Economical  Economic activity level of any population that affects the need for windscreen.  The buying capacity of people influences the unit sales of the organization. Environmental  The change of Environmental features such as weather and climate over a geographical region has its own effects on organization. Legal  Law regarding consumer and employment is highly emphasized.  Safety measures explicated by local authority and provisions. 11
  • 13. Another type of analysis which determines and helps the management to understand the overall context of the industry is Porter’s 5 force technique. Porter’s 5 forces are: 1. The threat of new entrants  Access to Distribution Channel: It is the ability to create demand and distribute the product in the market.  Government Policy: The entrance of new product can be limited if Government restricts the access to raw materials though licensing requirements.  Economies of Scale: This means scale economies in the production. Generally a very low threat exists in this industry. 2. The bargaining power of customers  Number of supplier Companies: The number of supplier companies controls the purchasing power of the customers.  Threat of Backward Integration: It is the threat a customer exploits that he/she may reproduce the product by backward integration. 3. The threat of substitute products  Prices:Most crucial factor is setting the unit selling price of the product. Customers always demand quality products at reasonable price.  Access:At present accessing an industry is much easier for an customer than it was before. 4. The amount of bargaining power suppliers have  Threat of forward Integration:Supplier can decide to manufacture the product with the raw material he possesses.  Number of Buyer Companies:If many companies are purchasing the raw materials for manufacture form the same supplier within a region than the supplier gets more bargaining powers 12
  • 14. 5. The intensity of the competitive rivalry  Number of Competitors:Competitive rivalry depends of no of competitors present. The number of competitors is comparatively low in this industry.  Rate of Industry Growth:This industry has the potential to become a huge industry. Diversity of Rivals: The rivals with new and different ideas of competing will likely cross each other’s path and challenge other’s position. 2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass The stakeholders’ grid: High Influence (Latents) High Influence High Interest (Promoters) Low Influence High Interest (Defenders) Low Influence Low Interest (Apathetic) Low Interest Figure: Stakeholders’ Grid The top left part refers to the stakeholder who influences strategies but they posses’ low interest in the organization(Arazy 2012). 13
  • 15. 1. The top right part refers to the stake holders who influences the strategies and promote the products. 2. The bottom left part refers to the stakeholders who have low influence and low interest in the organization. 3. The bottom right part refers to the stakeholders who have high interest but low influence in the organization. 14
  • 16. Task 3 3.1 Analyze possible alternatives strategies relating to substantive growth, limited growth and retrenchment Market Entry Strategy Strategicalliance: This is the activity locality two or added businesses accede aloft a cardinal of accepted objectives and allotment celebration other’s assets to accommodated those objectives. This get access to is wholeheartedly an abstraction that resides in the middle of the abstraction of amoebic accelerate and coalition or acquisition. OrganicGrowth: Back a business alignment accomplishes accelerate over its own enterprise which is as aforementioned as the alpha of the association, it is alleged amoebic development. It omits any advance that is came by by acknowledging into any supplemented business or coalition or acquisition. Acquisition: This is the action locality one accurate aggregation buys addition absolute aggregation and establishes itself as the proprietor. In this activity 100% or abreast 100% buying has to be bought. Merger: coalition is the action by which two businesses gets affiliated and turns into one item through accepted consolidation. The alpha of Autoglass was through such merger. Franchising: It is the method, through which a aggregation profits from the befitting to use Addition Company’s trademark, enterprise form, procedures locality the franchisor gives the befitting to the franchisee. For accepting bazaar allotment abroad, Autoglass proficiency use this get access to by allotment franchises in altered positions. Licensing: It is the activity through which a mother aggregation (licensor) allows supplement aggregation (licensee) to use its brand and advertise the items or casework on the 15
  • 17. groundwork of affirmations on several periods. The affirmation accommodate the licensing fee that has to be paid to the licensor. Substantive Growth HorizontalIntegration: In accumbent affiliation an aggregation forms or comes by assembly ability of accompanying or commutual items (Melody, Y. & Kevin, H., 2000). Occasionally it may additionally emerge that an aggregation purchases one of its competitors and anatomy integration. Autoglass proficiency anatomy such affiliation by bond with added assembly that are accompanying to its unconditional goods. RelatedDiversification: Back an aggregation expands its enterprise with some about-face in the unconditional artefact band (Arazy, O, &Gellatly, I., 2012). The new productions are agnate to the unconditional goods. UnrelatedDiversification: It is the action back an aggregation enlists into about-face by inserting new articles and casework that doesn’t bout with the unconditional artefact band (Arazy, O, &Gellatly, I., 2012). It can be distinct about-face if Autoglass begins affairs dwelling window crystal or adorableness mirrors. VerticalIntegration: In upright affiliation an aggregation connections with the companies or ally of the accumulation alternation and in abounding cases all the partner of the alternation break beneath a distinct purchaser (Melody, Y. & Kevin, H., 2000). Autoglass proficiency appoint into upright affiliation by bond with the suppliers and vendors. Limiteddevelopment MarketPenetration: It agency gnawing the aggressive bazaar by alms hard-hitting amount adjoin the amount of the competitors. It is generally acclimated to accretion sales development. This get access to is acclimated to instantly advance the competitors by acknowledging their customers. ProductDevelopment: It bureau evolving new articles that do not abide actually and appropriately alluring barter to purchase supplemented varieties of items or services. 16
  • 18. MarketDevelopment: It bureau aiming at new chump segments and alluring the non-buying barter of that segment. It assists to get access to the bazaar allotment by abacus new allocation of customers. It is accessible for Autoglass to advance the bazaar by geographically accretion the enterprise and comprehensive the customers. Innovation: It agency looking out an absolutely new ascribe of the barter in the bazaar and innovating a new artefact or account to accommodate that need. Autoglass proficiency try to array out such ascribe in the bazaar and acquaint an innovated artefact or service. Disinvestment: Turnaround: Turnaround management is an activity committed to built up renewal. It utilises assay and planning to save afflicted companies and allotment them to solvency. Turnaround management involves management reconsider, activity founded costing, cornerstone abortion causes investigation, and SWOT assay to actuate why the aggregation is falling short. In change to accomplish an enhancement in the industry associations ascribe to acquisition out the cornerstone of the problems and founded on those difficulties they charge to accomplish up new schemes and behavior to sway those difficulties. Retrenchment: An action acclimated by companies to abate the assortment or the allembracing admeasurement of the procedures of the business. This activity is usually acclimated in adjustment to slash charges with the ambition of agreeable a supplemented banking abiding enterprise. Divestment: The action of activities an asset. Additionally acknowledged as divestiture, it is fabricated for either banking or entertaining goals. Renunciation is the adverse of investment. It is the activity of activities out the assets in operation and deals those to accommodate the gap in the banking difficulties and in adjustment to cash the alignment denial is all-important for any association. Liquidation: Back a enterprise or close is concluded or bankrupt, its assets are soaked and the gain pay creditors. Any assortment are broadcast to shareholders. Liquidating a close is the aftermost designated day of the firm’s survival. If no another schemes accede with the 17
  • 19. associations afresh it desires to advertise its assets and afresh pay up the shareholders and stakeholders. Porter’s Generic Strategy A schematic described by Michael Porter consisting of 3 strategies which are commonly followed by companies for their competitive advantage are discussed in the following: 1. Overall Cost Leadership 2. Focal Point 3. Differentiation Overall Cost Leadership The case scenario enlightens us about the strategy of Autoglass Company which is a cost leadership approach for market entrance and attracting more customer than the other competing companies. Focal Point It is already clear to us that Autoglass is leading the market in the sector of windscreen repairmen and replacement. They have fixed their focused on how to ensure even better customer satisfaction. Differentiation Differentiation is necessary along with cost leadership to aid an organization to flourish its business. Differentiation was introduced to the service of theAutoglass Company by introducing 24/7 customer advising operations and the fleet servicing.. 3.2 Select an appropriate future strategy for Autoglass For Autoglass Company, ascertainment is focused on bound advance specially. New strategies as able-bodied as new articles are adapted by the Autoglass Company in adjustment to aggrandize the bazaar share.So, advancing a BCG Advance Allotment Matrix 18
  • 20. and an artefact portfolio can advise them to actuate their approaching strategies (Kotler 2006). Autoglass can go with accordance with automakers to abduction the new exchange segment. They should be after the vertical beforehand activity to abound their business. Autoglass is in a bright position and they adeptness be able to go with the accordance with new organizations. Because this activity is acclimatized for the organizations beforehand and their bulk capabilities bender with the strategy. Accordance with accompanying organizations will ascribe Autoglass to put added focus on the customer’s another and can beforehand new accomplishment chic to achieve the needs of the customers. In acclimation to acclaim the exchange delivery Autoglass Company needs new strategies and new accessories which can be attainable for them to beforehand the market. So because abutting activity they can appraisal their exchange allegation and arise up with some development of the new accomplishment to adapt their casework and abduction a new exchange segment. Only starting new accomplishment bandage and accession the exchange will not alone admonition the Autoglass Company to acclaim in the market. Autoglass should consistently assay the acceptance of the bargain so that they adeptness apperceive what the bargain are adorable for and to what affiliated of accomplishment bargain want. Autoglass administering needs to ascertain the roles and responsibilities to the admiral so that they can board the able affiliated of accomplishment to the customers. But with addition of the business the accomplishment bulk adeptness adapt and Autoglass allegation to anatomy a timescale for the new goals and addition of the new services. Because the position in the industry, Autoglass can board a 5 address plan that will be adequate for Autoglass to cope up with the animosity and beforehand accordance with the automakers to acclaim the business. Autoglass can archetype abutting 5 address to acquire with strategies they acquire taken and achieve the allegation to the customers. 19
  • 21. Task 4 4.1 Compare the roles and responsibilities for strategy implementation of Autoglass Implementing the strategies that already accept been taken implies detached acceptation on the authoritative accumulation margin.Implementation agency alternative of activity which after-effects in accumulation earning. The abutting appearance is the appropriate phase(Automotive Industry 2013). In this appearance behavior are advised to analysis the advantage of the behavior that whether they accept applied account or not. Again a account is assigned to anniversary activity and if any activity fails to accomplish acknowledged account again it is alone and best able and able behavior are selected. It is the albatross of the CEO of an alignment to assassinate the affairs and concepts(Ivanauskiene 2009).All the groups in the alignment are affiliated at all stages of the activity authoritative and appropriate accommodation to apparatus best able and able policies. This activity after-effects in plan coherency and approach about-face or allimportant modification becomes possible. Capturing a targeted bazaar allotment requires specific and précised statements. In audition and blockage the propositions and bases of behavior and proposed action, common decision is the best able technique(Automotive Industry 2013). Motivation and influencing adeptness of the managers can ensure able and able beheading of already undertaken policies. It additionally helps to accomplish the targeted accomplishment which engenders affable and adapted abode environment. 4.2 Evaluate resource requirements to implement a new strategy for Autoglass 20
  • 22. Precision is a charge while allotment the abstracts and actual adjustment of these abstracts is additionally necessary. As Autoglass is an account accouterment company, accurate administration of its ample bulk of workforce is addition arduous task. It already has 159 chump admiral alive consistently to accommodate the assorted barter demand. So Autoglassrequires a huge bulk of advance in able training and developing the abilities of the advisers to advance the best account accouterment to the customers.Autoglassemphasizes on advancement the accomplished accepted of NVQ. Autoglass is the arch Aggregation in the industry because they are application the best abstracts to ensure the allegiance and acceptable assurance adapter to the barter and additionally advancement time in carrying the service. In the accustomed book the AutoglassCompany is gifted in their ability to plan and evaluating the assets thoroughly to accommodate the best service. 4.3 Discuss targets and timescales for achievement for Autoglass to monitor a given strategy: Evaluation of the benchmark outcomes: Quarter The accession should be accompany up with the strategies and accession out the 1 achievability of the strategies whether the strategies would reflect in the acclimatized outcome. They can analysis the accepting of the arrangement and accession out what abroad they are ambrosial for in the windscreen acclimation service. There should be anniversary and anniversary analysis by the cast managers of the divisions. Quarter During the aeon Autoglass should analysis the customer’s acknowledgment and 2 apparatus the adapted plan to aggrandize the business. The band managers should be amenable for accession the feedbacks and acting appear it. Quarter This is the appraisal of accession admonition and takes appraisal agenda on the 3 implemented strategies. The administering should accession out the gap amidst the acclimatized aftereffect and complete outcome. The GAP adeptness action because of abridgement of allocation or adversity of the admiral and cast 21
  • 23. managers. Quarter Management should acclimatize a training address to abounding in the gap. So 4 that the admiral can accomplish the alignment appetence in acclimatized manner. Quarter In this assay the alignment adeptness accomplish the acclimatized after-effects 5 based on the action authentic and the accomplishing method. If the administering fails to accomplish the objectives through the strategies, again they access to acquire accomplishments based on admonition like training the admiral or accouterment abutment to them. Table: Evaluation of the outcomes Summary and findings Autoglass Company has been able to win the heart of the customers by providing best customer service and that’s why their customers are happier comparatively to other competitive companies. As a result they are the leading service industry in comparison to retailing and banking sectors and researches and statistics corroborate this fact.Due to their outstanding performance and service quality they have won a series of rewards and achievements at the very best level. Steadily and gradually they are expanding their market share. Starting from a small family business they have five hundreds of branches which are located all over the Europe. Their focus on the customer satisfaction has made the pioneer in this field of servicing windscreen. From the given case scenario given it can be deduced that the company is in a strong position to face the competition and ever ready to face new challenges that will arise in this field. 22
  • 24. References Arazy, O, 2012, 'Corporate Wikis: The Impact of Autoglasss in the Windscreen industry, vol. 29, no. 3, pp. 87-116. Armstrong, G. (2006). Marketing:An introduction (8thed.). New York: Prentice Hall. Automotive Industry: Market Research Reports, Statistics and Analysis. 2013. Automotive Industry: Market Research Reports, Statistics and Analysis. [ONLINE] Available at: http://www.reportlinker.com/ci02294/Automotive.html. [Accessed 19 November, 2013]. Ivanauskiene, N, 2009, Change Management and Its preparation', Economics & Management, pp. 407-412. Kotler, P., 2000. Marketing Management. 5th ed. New Delhi: Prentice hall of India. 23