1. An Assignment on Business
Strategy
Submitted to
Submitted by
Date
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 .............................................................................................................................................. 9
2.1 PRODUCE AN ORGANIZATIONAL AUDIT FOR AUTOGLASS .................................. 9
2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR AUTOGLASS USING AT LEAST
TWO APPROACHES ............................................................................................................... 10
2.3 EXPLAIN THE SIGNIFICANCE OF STAKEHOLDERS’ ANALYSIS IN RELATION
TO AUTOGLASS ..................................................................................................................... 11
Task 3 ............................................................................................................................................ 13
3.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES RELATING TO
SUBSTANTIVE GROWTH, LIMITED GROWTH AND RETRENCHMENT ..................... 13
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
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3. Executive Summary:
Two companies, named Windshields and Autoglass, merged together in 1984 and from the
beginning of this fusion; the firm is continuously satisfying their customers with quality products
and services.
In this journey they have won the heart of their customers by its unique approaches of doing
business. Unlike other profit oriented firms, they have taken the growth of business and
satisfaction of the customers as the main concentration. The objective of this report is to examine
the strategies that Autoglass is running to make sure of their successful journey.
Moreover, depending on several business strategy theories, some suggestions and alignments
have been created for the company. This work has certainly helped to better understand the
tactics and visionary strategies of Autoglass and thereby has been turned into an effective
learning source of business strategies.
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4. Task 1
1.1 EXPLAIN
THE
ROLE
OF
STRATEGY,
MISSION,
VISIONS,
OBJECTIVE, GOALS AND CORE COMPETENCIES OF AUTOGLASS
Mission: The Autoglass Company took the maximum satisfaction of the customers as their
mission of the organization. To protect their mission they ensure the best service for the
customers and the best product which is windshield (Autoglass Company). Their mission itself
drives them towards the organizational vision (Grant M. R., 2010).
Vision: Relevant to the mission, the vision of the company is to provide the client in a way that
would make complete satisfaction and thus result into continuous growth for the company (Grant
M. R., 2010). A current statistics shows that Autoglass already hold around 92% customer
satisfaction in rating. They believe to increase it with the strategies they are following for years
(Autoglass Company).
Core Competencies: Whatever the type or the model of the broken glass is, Autoglass can
replace or repair it. This all solution capability has been their core competency for years
(Autoglass Company).
Strategic Intent: The notion of strategic intent suggest that there's a universal outlook on while
the enterprise should to be going in its place of a unquestionable affirmation of aide in nursing
predicted conclusion, moreover this recommendation that there is a galore of litheness inside the
affirmation to permit for workers start, cluster help and adaptation in light-weight of changed
attenuating factors (Hoffman, K. Douglas, Scott W. Kelley, and Holly M. Rotalsky.2009). The
strategic intent of Autoglass is to make certain that the market leads by the industry absolutely.
They are doing all the events to stay as the pioneer.
Role of Strategy of Autoglass: The major task in strategic administration is often the
compilation as well as the dissemination of the illusion and thus the procedure affirmation. This
summarizes, in essence, the comprehending of a company (Hoffman, K. Douglas, Scott W.
Kelley, and Holly M. Rotalsky.2009). Autoglass has assembled their roles in theme creating in
an exceedingly approach that the designs sustain an unquestionable time span central the
execution (Autoglass Company).
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5. Objective and goals of Autoglass: The foremost aim of Autoglass is directing their client by
repairing or refurbishing broken windshield of any vehicle. The objective of Autoglass is to
pattern the enterprise supplement and help the worldwide persons (Autoglass Company). They
are expanding their enterprise by being triumphant the hearts of the purchasers.
1.2
REVIEW
THE
VITAL
ISSUES
INVOLVED
IN
STRATEGIC
PLANNING IN AUTOGLASS
There are important issues in the strategic planning of the company which can be distinguished
(Kotler, P., 2000).We can analyze the strategic planning by using Ansoff’s Growth Matrix. This
marketing tool consists of four different marketing strategies based on new product introduction
and existing products (Gómez, L, & Ballard, D., 2013). AutoglassCompanycan similarly serve
their customers with these two types. So, we can analyze like following:
a) Market Penetration: A market strategy herewith a business looks for to grab the major
dominancy in the market throughout which they already are giving (Melody. Y. & Kevin,
H. 2000). The design normally input its focus on collecting a larger share of the market.
Throughout this part Autoglass will increase its market segments by enterprise an
allotment of their merchandise and appeal an allotment of customers.
b) Product Development: Autoglass could bring growth to business by introducing some
developed or extra featured products to the customers in the market.
c) Market Development: Another strategy can be targeting new segments of customers and
enlarging the existing market by selling products to a larger portion of the market.
d) 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.
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6. Figure: Anoff’s Growth Matrix
To protect the flow of business growth, Autoglass should understand market well and pick one of
the strategies to get new segments of customers and satisfy them with existing products and new
products if necessary (Gómez, L, & Ballard, D., 2013). Moreover, they might put emphasize on
the geographic stance of their service against the market demand.
Top Down and Bottom Up approach of Autoglass:
Informal Planning: Informal planning is the methods while the leader or foremost of an
assembly evolves a decision with no one’s known structure and rigid associations (Grant M.R.
2010). It is certain as blasting instant things that managers use to approach while its provisional
importance to conceive any followed structure of close up or the decided period for conceiving is
not adequate. It’s significant to order short allowance objectives of the organization.
Top Down: Breaking a system of strategy into small pieces of sub-systems and getting closer
insight is called Top Down (Grant M. R., 2010). Autoglass use this approach for fulfill
objectives in developing their product.
Bottom Up: It means combining a number of systems to create a more complex and integrated
mega system (Grant M. R., 2010). Autoglass use this approach to develop their customer service.
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7. Behavioral Approach for Autoglass: Autoglass nee to approach interior the top-down method
to capitalize their assets as well as to control the affray inside the near future. Autoglass is a
developing enterprise interior the enterprise and the service they're undertaking won't be easy for
them to comprise on to the place central the market. They have to arrive to up with more
expansion for his or her merchandise and market in the hope that they could be a wide-ranging
industry for the client.
1.3 EXPLAIN MINIMUM THREE PLANNING TECHNIQUE FOR
AUTOGLASS
For Autoglass Company, three strategic techniques are suggested below:
1. BCG Growth Share Matrix
2. Profit Impact of Market Strategy (PIMS)
3. Strategic Position and Action Evaluation Matrix
1. Profit Impact of Market Strategy (PIMS): To establish the feasibility and positive
impact of a taken decision or business strategy by analyzing the impact in the market is
the purpose of PIMS (Grant M. R., 2010).
Type of the business environment
Competitive position
Production process facility
Budget allocation
Strategic works
Operating outcomes
2. BCG Growth Share Model: The products of the Autoglass can be categorized into four
categories using the BCG Growth model in order to obtain a better understanding of the
products and their performance in the market. The model suggests 4 divisions of existing
products according to their position in the market and amount of sales (Wheelen&
Hunger, T.L. &J.D., 2013).
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
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8. 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 (Arazy, O, &Gellatly, I., 2012). The management has to look deep into the
performance of the products and services that are being offered in the market. Then they
have to understand what actual return from the products or services is and have to
determine what exactly the company expects from those in return in future ( Kotler, P.,
2000). 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’.
Figure: BCG Matrix
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9. 3. Strategic Position and Action Evaluation Matrix (SPACE): Understanding the
demandsand the requirements in the market and acting accordingly with the strategies is
the focus of SPACE matrix. It helps to sort out the current position of the company in the
marketplace and thereafter the management can design required steps to move forward.
Conservative
Defensive
Aggressive
Competitive
Figure: SPACE Matrix
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10. Task 2
2.1 PRODUCE AN ORGANIZATIONAL AUDIT FOR AUTOGLASS
Using SWOT Analysis, we can audit the environment for Autoglass:
Strength
Opportunity
Weakness
Threat
Strengths
Autoglass offers best service at low cost.
Ensure high safety features.
The windscreens ensure superior visual clearness
The glasses can reduce the chance of further damage.
Weaknesses
The company isn’t interested enough in promotion.
Lack of advertisement
Opportunities
There is a little number of firms in the market which makes the way for better growth.
There are possibilities to produce new products similar to the existing ones like side view
mirrors.
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11. Threats
Ensuring quality supplier and competitive price is getting tougher..
Geographic location can be a threat if the business is not focused accordingly.
Policies designed by the government can have threats too.
2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR AUTOGLASS
USING AT LEAST TWO APPROACHES
To analyze the surrounding situation of business, an organization can go through PESTLE
Analysis (Ivanauskiene, N, &Auruskeviciene, V., 2009):
Political
Varieties of political decisions and influences affect the business in different countries or
regions.
Constancy of different governments affect the conditions in a market
Taxation policies have a huge impact on business
Economical
The earnings ratio and buying capacity consumers in a region influence the sales.
Density of economic activity also has huge impact.
Socio-cultural
Lifestyle as well as preferences made by the customers has impact on the industry.
Social cultures, beliefs and norms also can affect the business.
Technological
Technology influences the designs.
Technological advancements can influence the production of the existing products.
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12. Legal
Legal restrictions have to be followed strictly.
Laws securing the consumer rights also have impacts.
Environmental
Weather, climate change etc. can hugely affect the business.
However, Porter’s 5 Forces are also very much important to analyze the potential rising
situations in a business. The forces are:
a) Threat of new entrants
b) Bargaining power of customers
c) Bargaining power of the suppliers
d) Threat of substitute products
e) Intensity of rivalry
2.3 EXPLAIN THE SIGNIFICANCE OF STAKEHOLDERS’ ANALYSIS IN
RELATION TO AUTOGLASS
Stakeholders can be divided into three categories:
a) Latent: They usually influence the business a lot but have a little interest on the
company’s business.
b) Promoters: They have both high influence and high interest on the company and therefore
often they promote the product of the company they supply to.
c) Defenders: They have high interest on the company but a little influence on the strategies.
d) Apathetic: Neither they have high interest nor do they influence a lot.
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13. Latent
Apathetic
Promoter
Defender
The stakeholders are kept in four classifications so that each stakeholder has their accurate
privileges and obligations in address of the making the concepts for the association which will be
directed for the betterment of the association. Autoglass has mapped the stakeholders interior the
association in alignment that the stakeholders will gift their obligation in contemplate of the
organization’s profit
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14. Task 3
3.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES RELATING TO
SUBSTANTIVE GROWTH, LIMITED GROWTH AND RETRENCHMENT
Market Entry Strategy:
Organic Growth: Whenever an enterprise association completes accomplishment of
development over its own enterprise that is as identical because at the time of establishing of the
organization, it was renowned as the organic development. It neglects all type of developments
that's gain revenue by pacing into another enterprise or merger or acquisition.
Merger: Merger is known as the procedure by two enterprises unites and turns into one figure
through lawful acceptance. The beginning of Autoglass was formed through such steps.
Acquisition: This is the method where one exact enterprise buys another entire enterprise and
assemblies itself by the proprietor. All through this method 100% or near 100% ownership
yearns to be come by.
Strategic Alliance: By this process two or more businesses acquiesce upon kind of widespread
objectives and they share others assets to maintain those objectives. Thus the approach is formed
wholeheartedly a concept that exists in between the concept of pure organic development as well
as combining or acquisition.
Licensing: It is the design by which a mother enterprise (licensor) permits another enterprise
(licensee) to use their trademark and deal the goods or services on groundwork of acceptance on
many time periods. That time span adopts the authorizing charge that desires to give payment to
the contractor.
Franchising: It is to conceive, through that an enterprise earns from the basic products to use
other company’s trademark, enterprise type; procedures while the contractor’s provision to
maintain the acceptance level of franchisee. For collecting market share overseas, Autoglass
could use the approach through the circulation of franchises in particular locations.
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15. Substantial Growth Strategy:
Horizontal Integration: In degree integration a company diversity or comes by yield facility of
united or complementary merchandise (Melody, Y. & Kevin, H., 2000). Additionally it happens
that a company purchases one product of its competitors and form incorporation. Autoglass
would likely perform such incorporation by combining alternate output that's united with its
house merchandise.
Vertical Integration: In integration a business links with the enterprises or partners by offering
string of connection and in other situations other partners of the bunch of attachments comprise
less than a single proprietor (Melody, Y. & Kevin, H., 2000). Autoglass would possibly provide
work into incorporation by connecting with the provider and vendors.
Related Diversification: When an enterprise elaborates its enterprise with diversification
interior the house line of products (Isen, Alice M., 2012). The new productions rectangle
consider alike to the current products.
Unrelated Diversification: It is the method once an enterprise new workers into diversification
by inserting new merchandise and services that doesn’t accept as factual the house merchandise
(Isen, Alice M., 2012). It will be unrelated diversification if Autoglass starts mercantilism house
window crystal or attractiveness mirrors.
Limited Growth:
Market Penetration: It seems that penetrating the compatible market by suggesting comparable
worth next to the worth of the competitors. This approach is committed to instantly hit the
competitors through benefiting their customers. It’s typically utilized to achieve sales
development.
Market Development: It is aiming at new person’s phases and suggesting the non-paying
customers of the segment. It helps to extend the market share by supplementing new part of
customers. It’s potential for Autoglass to evolve the market through geographically increasing
the enterprise and returning to shoppers.
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16. Product Development: It is to evolve new products that do not exist in current market and so
attracting purchaser to get an allotment of diversity of products or services.
Innovation: It suggests that searching out a separately new would like of the purchaser inside
the market and innovating exchange of merchandise as well as services to rendezvous the
requirement.
Disinvestment:
Retrenchment: A topic utilized by organizations to count back the multiplicity or the last size of
the strategies of the business. This scheme is usually utilized so as to slash prices with the aim of
changing into an added economic steady enterprise.
Turn around: Turnaround is a technique dedicated to enterprise renewal. It utilizes the
investigation and advancing to save caused anguish organizations and returns them to financial
condition. Turnaround administration enlists administration rethink, activity founded in a cost
accounting way, source malfunction finding enquiry, and SWOT investigations to exercises why
the enterprise is lowering short. That’s why as to pattern a returning to the track the enterprise
companies got to verify the base of the advertisements and supported those advertisements they
have to come up with new methods and standards to overwhelm those issues.
Liquidation: When a firm is being closed or bankrupted, all its assets rectangle measure noted
and furthermore the improvement buys creditors. Any leftovers are circulated to shareholders.
Liquidating a firm is that the last stage of the firm’s survival. If no alternate concepts befit the
organizations then it should deal the assets then bet up the shareholders as well as stakeholders.
Divestment: The method of withdrawal of buying. Nevertheless mentioned to the divestiture, it's
created for either economically or by focusing communal goals. It the tactic of dragging out the
assets operational and agreements those to rendezvous the gap within the monetary affairs and so
as to liquidate the association divestment is important for any association.
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 (Kotler, P., 2000).
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17. 1. Cost Leadership: Here, the company tends to offer a very much competitive price for the
products and services they offer. In many cases, the firm offers the lowest price in the
market to attract the customers and increase the sales (Kotler, P., 2000). 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 acquire competitive
advantage against the competitors in a way that only they offer something unique (Kotler,
P., 2000). Autoglass through this case took the advantage by introducing fleet services
and round-the-clock advising facilities.
3. Focus:It means not going for leadership in every aspect but focusing on a single sector to
specialize on (Kotler, P., 2000). 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
In alignment to perplex the market segment Autoglass enterprise needs new notions and new
parts which could be cooperative to them for the betterment of flourishing in the market. So
considering future conceives they can investigate their need to diversify their services and
capture a new market segment of the industry.
Autoglass need to followi the vertical integration conceive to make augment with their
enterprise. They could accelerate with partnership with automakers to capture the new market
segment. Autoglass is in a strong place and they may be able to advance with new partners.
Because this conceive is expressing for the associations development and their capabilities
acquiesce with the conceive. Coalition with affiliated associations will endow Autoglass to put
more aim on the customer’s preference.
Only by starting new products and expanding market will not actually help Autoglass to
elaborate in market. Autoglass should wholeheartedly reconsider the response of the customers
in order to appreciate what is the customer’s desire and to what degree of acceptance does
customer’s crave.
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18. Task 4
4.1 COMPARE THE ROLES AND RESPONSIBILITIES FOR STRATEGY
IMPLEMENTATION OF AUTOGLASS
Strategy and policy execution is one of the most vital issues related to doing business. The
growth and profit of the organization solely lies on how wisely the decisions are being taken and
how effectively the taken strategies are being executed (Ivanauskiene, N, &Auruskeviciene, V
2009). The top-heads of the organization has to be responsible enough to not just consider the
work as a job but to look beyond to develop the organization and knock every single possibility
to grow further and analyze every single threat to secure the organization (Dessler, G., 2000).
They have to look over a new idea or strategy and check the feasibility of it according to the
market situations. For any company like Autoglass, understanding the market as better as
possible and evaluating the ongoing and proposed strategies are one huge responsibility of the
management where they have to play a real significant role. .
The organization figure-head like CEO or President or Managing Director has to play a very
much complex yet significant role. He has to be able to analyze situations before he gives green
signal to any decision suggested by the board (Dessler, G., 2000). On the other hand the senior
managers have to be willing enough to keep a harmony in the workforce and the output of the
employees that is important for ensuring the success of the initiated decisions.
Autoglass management should compute the selling to recheck for the best market shares and
sales. The cluster sales ought to be developed throughout a means which will continue in the
market. Productive advertisements in related areas would probably help an allotment.
Moreover, to design a realistic strategy, the strategy makers have to have access to reliable and
updated information and statistics. Because, outdated or fabricated numbers can easily ruin any
objective. So, besides working inside the organization, the management has to keep an eye on
what’s happening outside and make sure that all the relevant news to their concern gets into their
acknowledgement.
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19. 4.2 EVALUATE RESOURCE REQUIREMENTS TO IMPLEMENT A NEW
STRATEGY FOR AUTOGLASS
An important key to success in business is to allocate resources that are necessary for production
and the supportive activities. A company management has to have the clear idea about the place
from where the resources and materials will be allocated, the cost for allocation and the time
needed to allocate (Gómez, L, & Ballard, D., 2013). Moreover, it has to prioritize the key
resource on which the maximum portion of production and service depends. For Autoglass, they
have prioritized human resources as the key resource as they are willing to keep their customer
service better than any other else. Therefore, they developed 159 customer advisors who would
serve the customers 24X7. The fleet sevice is another addition to their effort to develop customer
satisfaction. Through this process, Autoglass is sanctioning considerable amount of budgets to
increase their service quality and moreover to train their employees. It has already resulted into
92% customer satisfaction.
However, to ensure that the customers get the best product with the highest safety and durability,
Autoglass put much concentration in allocating the best raw materials for their glasses. As per
the given case description, Autoglass has been successful to maintain the quality and efficient
allocation of their required materials and services in both production and service.
4.3 DISCUSS TARGETS AND TIMESCALES FOR ACHIEVEMENT FOR
AUTOGLASS TO MONITOR A GIVEN STRATEGY
Evaluation of the benchmark outcomes:
Quarter 1
The company should be bring up with the strategies and find out the
feasibility of the strategies whether the strategies would reflect in the
expected outcome. They can take the feedback of the customers and find out
what else they are looking for in the windscreen repairing service. There
should be weekly and monthly monitoring by the line managers of the
divisions.
Quarter 2
During the period Autoglass should review the customer’s feedback and
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20. implement the desired plan to expand the business. The line managers should be
responsible for collecting the feedbacks and acting towards it.
Quarter 3
This is the quarter of gathering information and takes research note on the
implemented strategies. The management should find out the gap between the
expected outcome and actual outcome. The GAP might occur because of lack of
coordination or inefficiency of the employees and line managers.
Quarter 4
Management should organize a training program to fill in the gap. So that the
employees can achieve the organization goal in desired manner.
Quarter 5
In this quarter the organization might achieve the desired results based on the
strategy making and the implementation method. If the management fails to
achieve the objectives through the strategies, then they have to initiate actions
based on information like training the employees or providing support to them.
Table: Evaluation of the outcomes
Conclusion
The merged company of Autoglass is now a trusted name for replacement to those who have got
their windshields broken. For years the company has earned the satisfaction as well as trust of
the customers because they were able to realize the need of a customer they always act according
to it. Providing the best glasses along with the best service has been the core of their competence
in the market which have all the other competitors far behind. The Autoglasscompany could
initiate required and effective strategies to keep ahead in the race. All these combined efforts
have earned much profit along with considerable growth for them. As they are still not satisfied
to satisfy their customers in better ways, surely they are going far ahead in business in the
coming days.
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21. References
Arazy, O, &Gellatly, I 2012, 'Corporate Wikis: The Impact of Autoglasss in the Windscreen
industry, vol. 29, no. 3, pp. 87-116.
Autoglass Company. [ONLINE] Available at: http://www.autoglass.co.uk/Glass-repair-andreplacement.186.0.html. [Accessed 16 November, 2013].
Dessler, G., 2000. Human Resource Management. 5th ed. Delhi: Pearson.
Gómez, L, & Ballard, D., 2013, 'Communication for the Long Term: Information Allocation and
Collective Reflexivity as Dynamic Capabilities', Journal Of Business Communication,
vol. 50, no. 2, pp. 208-220
Grant M. R., (2010) – Contemporary Strategy Analysis, Amazon.co, Wiley Higher Ed; 7th
edition.
Ivanauskiene, N, &Auruskeviciene, V 2009, Change Management and Its preparation',
Economics & Management, pp. 407-412.
Kotler, P., 2000. Marketing Management. 5th ed. New Delhi: Prentice hall of India.
Wheelen& Hunger, T.L. &J.D., 2013.Strategic Management and Business Policy. 5th ed. Delhi:
Pearson.
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