2. Executive Summary:
In the market of glass and windshields the leader of the market is Autoglass who have a
very unique business policy with which they are said to be successful. Theylead the
market but have no interest to expand their business. They think on the ancient business
strategy which is of no use in the present market they do believe in the concept of
producing and selling which is a backward concept in today‟s economy. They need to
revise their business polices and their structural objectives and reset the target and make it
more worthwhile in the market. They need to expand to sectors that benefits but requires
no efforts and are easily controllable and profitable to the firm. A business strategy that
most suits them should be adopted by them.
1
3. Table of Contents
Executive Summary .................................................................................................................. 1
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 ............................. 5
1.3 Explain minimum three planning technique for Autoglass ............................................ 7
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 ................. 11
Task 3 ...................................................................................................................................... 12
3.1 Analyse possible alternatives strategies relating to substantive growth, limited
growth and retrenchment .................................................................................................. 12
3.2 Select an appropriate future strategy for Autoglass ...................................................... 16
Task 4 ...................................................................................................................................... 17
4.1 Compare the roles and responsibilities for strategy implementation of Autoglass ...... 17
4.2 Evaluate resource requirements to implement a new strategy for Autoglass ............... 18
4.3 Discuss targets and timescales for achievement for Autoglass to monitor a given
strategy ................................................................................................................................ 18
Conclusion .............................................................................................................................. 19
References ............................................................................................................................... 20
2
4. Task 1
1.1 Explain the role of strategy, mission, visions, objective, goals and
core competencies of Autoglass
Mission of the Autoglass Company
A mission statement is a statement of the purpose of a company. The mission of
Autoglass Company is to satisfy of the customers. The Autoglass Company provides the
best windscreen services. This mission of satisfying the customers of Autoglass Company
leads them to plan the visions of their organization.
Vision of the Autoglass Company
Its vision is to become a top market all leader among the all types of Services Company.
They wants to introduced new modern technology to improve the quality of their services
to gain the unimaginable customer satisfactory rate. This vision shows their confidence as
the market leader and they want to expand their business in every corner of world and
become
a
giant
company
for
any
kind
of
business.
Core Competenciesof the Autoglass Company
Any kind of broken or damaged glass of any model can be replaced or repaired by the
Autoglass Company and it is their core competency. Besides that the company provides
fleet services of replacing or repairing any kind of broken or damaged glass to the
customers.
Strategic Intent:
The strategic intent of Autoglass is considering itself as the market boss always. The
perception of strategic intent ascertain that there is a common view on where the firm
should go rather than a statement of an expected feedback and this means that there
should be abundance of flexibility in the statement to permit for staff initiative, team
input and adaptation in light of changed atmosphere (Ivanauskiene, N, & Auruskeviciene,
V., 2009).They are doing all the functions to remain leader.
Role of Strategy of Autoglass
3
5. 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).
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 Architecture of Autoglass
The strategic architecture of any organization is the process of answering the five
fundamental questions of making the strategy. The questions are compilation of “What”,
“What Else”, “What More”, “What Now”, “How” (Grant M. R., 2010). By answering
these questions Autoglass shapes their strategic structures of the company.
1.2 Review the vital issues involved in Strategic planning in Autoglass
In association to determine the strategies and demand of the customers there are some
crucial affairs that have got to be suggested. Supported within the case, Ansoff‟s model
helps to line up the comparable benefits(Moriarty 2012).
Competitive advantage of Autoglass
Autoglass is the prime service provider of windscreen in the UK. They currently have
apprehended a gigantic market segment with their different kinds of service. Autoglass is
growing and it would be cooperative to investigate the comparable benefit they have. In
order to analyze the competitive benefits, we can use the Ansoff‟s development Matrix.
4
6. Figure: Ansoff‟s Growth Matrix
Ansoff‟s Growth Matrix is a selling tool that offers four strategies. As we tend to have
learned from the case that Autoglass has enlarged its market share and it also has an
ability to serve one million client having downside with windshield. So, supported the
capabilities Autoglass will give customers with existing services moreover as introducing
a replacement product. Within the matrix with four ways lie completely different risks.
The strategies are:
1. Market Penetration: Through a market strategy a company needs to grab the
dominating power in the current market. The strategy focuses on capturing the larger
share of an existing market. According to this strategy Autoglass could increase their
market segment by selling more products and capturing customer focus.
2. Product Development: Market growth can be increased by Autoglass by introducing
developed or new products to the consumer market.
3. Market development:To capture new customers by attracting new customer groups
helps to increase the market share of the firm which is the strategy of market
development.
4. Diversification: This strategy is related to risk aversion. The company can introduce a
whole new type of product unlike the existing one and increase the growth by attracting
customers. For example, Autoglass might start selling glass cleaning materials.
5
7. Autoglass also should give priority to the geographic location where they should operate
and specify the minimum requirements of the suppliers to get the quality product.
Definition of Top-Down and Bottom-Up
Informal Planning: Informal planning is the process where the manager or leader of a
team develops a plan without any conventional structure and rigid frameworks (Grant
M.R. 2010).. It is important to ensure short term objectives of the organization.
Top-Down: A top-down approach is essentially the breaking down of a system to gain
insight into its compositional sub-systems. Autoglass has been successful in using the
approach in their product development.
Bottom-Up: A number of systems combined and integrated to create an integrated mega
system. This approach is used by Autoglass to develop their customer service.
Behavioral Approach for Autoglass: Autoglass should approach in the Top-Down
method in order to capitalize their resources and to handle the competition in the future.
Autoglass is a growing company in the service industry and the service they are providing
will not be sufficient for them to hold on to the position in the market.
1.3 Explain minimum three planning technique for Autoglass
Three strategic techniques are suggested for Auto glass:
1. BCG Growth Share Matrix
Autoglass might prioritize their product in such a way wherever they will differentiate
their product and maintain a harmony within the product portfolio.
2. Profit Impact of Market Strategy (PIMS)
It is a type of database which provides concrete evidence to support policies and
principles for gaining and sustaining competitive advantage.
3. Strategic Position & Action Evaluation Matrix (SPACE)
Autoglass can also use the Strategic Position & Action Evaluation Matrix (SPACE) to
verify the market requirements and operations requirement to penetrate in different
market segment. The Strategic Position and Action Evaluation or the SPACE Matrix is a
four-quadrant structure which indicates whether aggressive, conservative, defensive, or
6
8. competitive strategies are most appropriate for a given enterprise or company. The
SPACE Matrix Analysis is most often engaged during professional market analysis of a
firm. The axes of the SPACE Matrix represent the two internal dimensions of a
competitive firm which are its financial strength or FS and its competitive advantage and
two external dimensions which are environmental stability and industry strength
Task 2
2.1 Produce an Organizational Audit for Autoglass
SWOT Analysis
Strengths
• Low cost
• Safety
• Visual Clarity
• Avoiding further damage
Opportunities
• Increasing growth rate
• High presence in emerging
economy
• New Product
SWOT
Weaknesses
• Less promotion of the
brand
• Lack of advertisement
Threats
• Suppliers Competition
• Geographic Location
• Government Policy
Figure: SWOT Analysis
Strengths of Autoglass
Finest service for low cost
Greater visual clarity of the glasses
Guarantee of high safety
Safeguard from repeated damage
Opportunities
Further technological development will help them to provide better services.
They have fewer competitors to compete with.
Auto glass‟s market is growing day by day
7
9. Weaknesses
The company isn‟t interested enough in promotion.
Lack of advertisement
Threats
High competition among suppliers.
Geographic factors limit competition
Mounting fuel prices.
The government policies have an affect on gaining market share.
2.2 Carry out an environmental audit for Autoglass using at least two
approaches
The strategic decisions are very much influenced by the scenario of the working
environment. The factors cannot be affected by any single organization. Now to
understand the working environment scenario, PESTLE analysis is very assisting. This
analysis aids the organization to maximize opportunity and minimize the threats.
PESTLE analysis for AutoglassPolitical
In different countries and region situation is affected by varieties of political
decisions and influences.
Market condition is also gets affected by Constancy.
Taxation policies create huge impact on business.
Economical
The buying capacity of people influences the purchases of the organization.
Level of economic activity that affects need for windscreen.
Socio-cultural
Lifestyle and preferences shapes an industry.
8
10. The decision to own an automobile and need to replace windshield depends on the
social norm.
Technological
Technology brings the designs.
Technology of changes the demand and habits.
Technological developments on services may create a huge opportunity in
overseas markets of Autoglass.
Legal
Employment and consumer law is extremely emphasized.
Law regarding safety measures.
Environmental
Environmental aspects such as weather, climate, and climate change can affect in
the business.
Porter’s 5 Forces:
1. The threat of new entrants
Product Differentiation: Big corporations creates high entry barrier
through their higher level of advertising and promotion.
Access to Distribution Channel: It is the ability to distribute the product
in the market and create demand.
Government Policy: Governments can limit entry to an industry through
licensing requirements by restricting access to raw materials.
2. The bargaining power of customers
Number of supplier Companies: The number of supplier companies
controls the purchasing power of the customers.
3. The threat of substitute products
Prices: Prices matter in the industry because buyers shift to the product
which is offering high quality yet having low price.
9
11. Access: Access in the industry for buyers has become much easier than it
was in the beginning.
4. The amount of bargaining power suppliers have
Threat of forward Integration: Supplier can integrate with customers to
produce the same product.
5. The intensity of the competitive rivalry
Number of Competitors: Competitor‟s number plays an important role in
pricing strategy.
Diversity of Rivals: The rivals challenge and cross each other‟s path in
making and implementing strategies.
2.3 Explain the significance of stakeholders’ analysis in relation to
Autoglass
Stakeholders can be divided into four categories:
i.
The top left part refers to the stakeholder influencing strategies though they
posses‟ low interest in the organization (Kerry 2006).
ii.
The top right part refers to the stake holders who influences the strategies and
promote the products.
iii.
The bottom left part indicates the stakeholders having low influence and low
interest in the organization.
iv.
The bottom right part refers to the stakeholders who have high interest but low
influence in the organization.
The stakeholders are maintained in four categories so that each stakeholder has their
specific rights and duties in regard of the making the strategies for the organization which
will be executed for the betterment of the organization. Autoglass has mapped the
stakeholders in the organization so that the stakeholders can perform their duty in regard
of the organization‟s benefit.
10
12. Figure: Stakeholders
Task 3
3.1 Analyze possible alternatives strategies relating to substantive
growth, limited growth and retrenchment
Market Entry Strategy
Organic Growth: When a business organization achieves growth over its own business
which is as same as the beginning of the organization, it is called organic growth. It
excludes any growth that is gained by getting into any other business or merger or
acquisition.
Merger: Merger is the process by which two companies gets united and turns into one
entity through legal consolidation. The beginning of Autoglass was through such merger.
Acquisition: This is the process where one particular company purchases another entire
company and establishes itself as the owner. In this process 100% or near 100%
ownership has to be bought.
11
13. Strategic Alliance: This is the process where two or more companies agree upon a
number of common objectives and share each other‟s resources to meet those objectives.
This approach is actually an idea that stays between the concept of organic growth and
merger or acquisition.
Licensing: It is the process through which a mother company (licensor) allows another
company (licensee) to use its trademark and sell the products or services on the basis of
agreements on several terms. The terms include the licensing fee that has to be paid to the
licensor.
Franchising: It is the process, through which a company earns the right to use another
company‟s trademark, business model, operations where the franchisor gives the right to
the franchisee. For acquiring market share abroad, Autoglass might use this approach by
assigning franchises in different locations.
Substantive Growth
Substantive enlargement in any company policy, the most important objective is to
expand the operation within the industry, to realize and retain more clients than the
competitors (Autoglass Company 2013). This growth strategy indicates the corporation is
increasing profit and attaining a substantive enlargement within the windshield repairing
and replacing industry from that Company will structure and subsidies for several
alternative shortages. Substantive growth will influence the ratio within the Company.
Horizontal Integration: In horizontal integration a company forms or acquires
production facility of related or complementary products (Melody, Y. & Kevin, H.,
2000). Sometimes it may also happen that a company purchases one of its competitors
and form integration. Autoglass might form such integration by linking with other
production that are related to its existing products.
Vertical Integration: In vertical integration a company links with the companies or
partners of the supply chain and in many cases all the partners of the chain stay under a
single owner (Melody, Y. & Kevin, H., 2000). Autoglass might engage into vertical
integration by linking with the suppliers and distributors.
12
14. Related Diversification: When a company expands its business with some
diversification in the existing product line (Arazy, O, &Gellatly, I., 2012). The new
productions are similar to the existing products.
Unrelated Diversification: It is the process when a company engages into diversification
by introducing new products and services that doesn‟t match with the existing product
line (Arazy, O, &Gellatly, I., 2012). It can be unrelated diversification if Autoglass starts
selling home window glasses or beauty mirrors
Limited Growth
Limited development for Autoglass particularly, is observation of the achievements.
Some industry‟s controllers are indifferent to make rapid conclusions and accept more
expanding approaches (Kotler 2006).
Market Penetration: It means penetrating the competitive market by offering
competitive price against the price of the competitors. This approach is used to instantly
attack the competitors by gaining their customers. It is often used to gain sales growth.
Market Development: It means targeting new customer segments and attracting the nonbuying customers of that segment. It helps to increase the market share by adding new
portion of customers.
Product Development: It means developing new products that do not exist currently and
thus attracting customers to buy more varieties of products or services.
Innovation: It means searching out an entirely new need of the customers in the market
and innovating a new product or service to meet that need. Autoglass might try to sort out
such need in the market and introduce an innovated product or service.
13
15. Disinvestment:
Retrenchment
This is a strategy which is used to reduce the diversity and the area of the operational
region of the company. It is generally used to reduce expenses and to be financially more
stable.
Turn around
This process is used for the corporate renewal. Turnaround management performs
management review, activity costing, root failure analysis, and SWOT analysis. Mainly it
deals with the causes of failing in any region. It helps the company to come back from
any failing situation. Company finds out the root problems and fixes them to come back.
Liquidation
After business termination or bankrupt, company‟s assets are sold. The leftovers are
distributed among the shareholders. It is the last step of survival for ny organization.
Company sells its assets and pay debts to stakeholders and shareholders when no
alternative option is available.
Divestment
This is also a process of selling the assets of the company. Divestment is the opposite of
investment. It means to pull out the assets of the organization to meets up the financial
problems.
Michael Porter’s Generic Strategy:
Michael Porter suggested 3 types of strategies for gaining leadership in the market or
expanding business as well profit margin.
1. Cost Leadership: Here, the company tends to offer a very much competitive price for
the products and services they offer(Kotler 2006). In many cases, the firm offers the
lowest price in the market to attract the customers and increase the sales. Earning
more profit by selling more becomes the key tool here.
2. Differentiation: Not just selling regular products, but offering additional features or
specialized services is the focus of differentiation. It helps to gain competitive
14
16. advantage against the competitors in a way that only they offer something unique.
Autoglass in this case, took the advantage by introducing fleet services and round-theclock advising facilities.
3. Focus: It means not going for leadership in every aspect but focusing on a single
sector to specialize on. As we can see in the case, Autoglass has taken the „customer
service‟ section as their focus and they are concentrating to improve the services to
the customer and thus gaining maximum customer satisfaction.
3.2 Select an appropriate future strategy for Autoglass
For consistent growth in business as well as expanded portion of market share, Autoglass
might take some strategies that would promise to secure their future. One strategy can be
initiating BCG growth model by categorizing the existing products and services
according to their position in the market. This model has been explained earlier in the
report. The products that give the company market leadership should be categorized as
„Stars‟. Those which generate the maximum portion of sales in a growing market should
be categorized as „Cash Cows‟. Those which are not being able to perform expectedly
because of a matured or declining market should be differentiated as „Dogs‟. Finally, the
products are services which are in between „Stars‟ and „Dogs‟ should be categorized as
„Question Marks‟ and concentration should be put to bring out the possible best outcome,
for example turning them into „Stars‟ or „Cash Cows‟.
In order to expand the market segment Autoglass Company needs new strategies and new
products which can be helpful for them to thrive the market. So considering future
strategy they can analyze their market need and come up with some development of the
new product to diversify their services and capture a new market segment.
Only starting new product line and expanding the market will not alone help the
Autoglass Company to expand in the market. Autoglass should constantly review the
feedback of the customers so that they might know what the customers are looking for
and to what level of satisfaction customers want. Autoglass management needs to define
the roles and responsibilities to the employees so that they can provide the highest level
of satisfaction to the customers.
But with expansion of the business the satisfaction rate might fluctuate and Autoglass
need to build a timescale for the new goals and extension of the new services.
15
17. Considering the position in the industry, Autoglass can provide a 5 quarters plan that will
be sufficient for Autoglass to cope up with the competition and maintain alliance with the
automakers to expand the business. Autoglass can benchmark next 5 quarters to comply
with strategies they have taken and fulfill the commitment to the customers.
Task 4
4.1 Compare the roles and responsibilities for strategy implementation
of Autoglass
As the current market situation, Strategy and Policy Execution is the most vital issues of
doing business. The overall flourish of an organization depends on how wisely and
perfectly the decisions are taken and how effectively the decisions are executed(Vehicle
Industry 2013). The top level management not only perform their own job but also keep
an exact knowledge about how the other works are done, what is the current situation of
the market and what is the standard of his company in comparison with market
situation(Kotler 2006). He need to think about the coming future and its consequences
and should be aware of that and be prepared by planning and executing new strategies.
For the leading company like Autoglass, understanding the market situation and evaluate
possible consequences are very significant role for the organization.
CEO of a corporation is in charge of rotating the concepts into reality and conceiving the
analysis in the business. To use economical and productive values all the cluster at
intervals the corporation should take under consideration the tiniest phases of the
convictions and coordinate the schemes.
4.2 Evaluate resource requirements to implement a new strategy for
Autoglass
Precisely choosing the right materials and making them available to the right departments
when necessary is important to evaluate the resources of Autoglass. As Autoglass is a
service providing company, careful handling of its large amount of employed human
resources is another major task. It already has 159 customer advisors working constantly
16
18. to meet the varied customers demand. So Autoglass requires a huge amount of investment
in proper training and developing the skills of the employees to maintain the best service
provision to the customers. Autoglass emphasizes on maintaining the highest standard of
NVQ.
Timeliness in service schedule ensures highest order of company good will. One of the
main reasons 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.
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
1
of the strategies whether the strategies would reflect in the expected outcome.
They can take the feedback of the customers and find out what else they are
looking for in the windscreen repairing service. There should be weekly and
monthly monitoring by the line managers of the divisions.
Quarter
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
3
implemented strategies. The management should find out the gap between the
expected outcome and actual outcome. The GAP might occur because of lack
of coordination or inefficiency of the employees and line managers.
Quarter
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
5
In this quarter the organization might achieve the desired results based on the
strategy making and the implementation method. If the management fails to
achieve the objectives through the strategies, then they have to initiate actions
17
19. based on information like training the employees or providing support to
them.
Table: Evaluation of the outcomes
Conclusion:
Who have got their windshield broken; they can be out of worried because there is a
company named Autoglass who are making some high quality glass. For years the
company earned a huge trust form their customer by providing quality product. They are
providing best glasses with best services. They improved their services as high as it
pressed away the other competitors far behind. Autoglass initiated the required and
effective strategies to keep ahead in the race. Surely they are going more far ahead in the
coming future.
18
20. References:
Autoglass Company. [ONLINE] Available at: http://www.autoglass.co.uk/Glass-repairand-replacement.186.0.html. [Accessed 11 November, 2013].
Kerry, G (2006). Marketing:An introduction (8thed.). New York: Prentice Hall.
Kotler, G., 2006. Human Resource Management. 5th ed. Delhi: Pearson.
Moriarty, J, 2012, 'Corporate Wikis: The Impact of Autoglasss in the Windscreen
industry, vol. 29, no. 3, pp. 87-116.
Vehicle Industry: Market Research Reports, Statistics and Analysis. 2013. Vehicle
Industry: Market Research Reports, Statistics and Analysis. [ONLINE] Available
at: http://www.reportlinker.com/ci02294/Vehicle .html. [Accessed 19 November,
2013].
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