2. Executive Summary:
In 1984 two companies decided to merge their asset and forge a partnership they were
the Windshields and Autoglass with forging this merger they are now satisfying their
customers continuously with quality product and services.
This unique approach to business has led to their winning the heart of the customers
with ubiquity. The main ideal of business is profit making, but they did deviate from this
path to make quality and customer satisfaction their main point of focus which have led
to their success. The prime and core objective of this report is to analyze and interpret
the strategies adopted by Autoglass in their successful run to glory.
In this report we discuss different strategies and suggestions on the theories applied by
this company. The tactics that are adopted by the visionary Autoglass can be better
understood in this form and thereby turning into a effective learning source of business
strategies.
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 ............................................................................................................... 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 STAKEHOLDERSâ ANALYSIS IN RELATION
TO AUTOGLASS ....................................................................................................... 11
Task 3 ........................................................................................................................... 12
3.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES RELATING TO
SUBSTANTIVE GROWTH, LIMITED GROWTH AND RETRENCHMENT ................ 12
3.2 SELECT AN APPROPRIATE FUTURE STRATEGY FOR AUTOGLASS ........... 15
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 ................................................................................ 17
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:The mission with whomAutoglass entered into the market is very simple and
professional (Arazy, O, &Gellatly, I., 2012).
ď§
Maximum satisfaction of consumers
ď§
Best quality product with quality service
ď§
Dream worthy objective on the road to success
Vision: The vision of a company is the sight they set for themselves and are always
trying hard to surpass the target and achieve something that is worth looking up to
(Arazy, O, &Gellatly, I., 2012).
ď§
Complete customer satisfaction
ď§
Potential organizational growth
ď§
Precise strategically support
Core Competencies:Autoglass says tell us the type or model of the glass we are there
to repair it for you (Autoglass Company). This has been and will be the core
competency of the organization for years gone and to come.
Strategic Intent:The strategic intent of Autoglass is to establish itself as a outcome of
the market foremost wholeheartedly. the notion of strategic intent suggests that there is
a general outlook on while the enterprise should to to be going rather than a
unquestionable affirmation of aide in Nursing foretold deduction and this proposes that
there should to be galore of flexibility central the affirmation to permit for employees
start, cluster facilitate and adaptation in light-weight of changed attenuating elements.
Theyâre doing all the undertakings to stay foremost.
Role of Strategy of Autoglass:The foremost task in strategic management is usually
the compilation and dissemination of the illusion and so the method affirmation. This
summarizes, in essence, the comprehending of an association (Hoffman, K. Douglas,
3
5. Scott W. Kelley, and Holly M. Rotalsky.2009). Autoglass has assembled their functions
in topic making in AN extremely approach that the concepts sustain AN unquestionable
time span focused the execution (Autoglass Company).
Objective and goals of Autoglass:The major aim of Autoglass is to satisfy their client
by fixing or refurbishing broken windshield of any vehicle.They are increasing their
enterprise by being unique to the purchasers.
1.2 REVIEW THE VITAL ISSUES INVOLVED IN STRATEGIC PLANNING
IN AUTOGLASS
In every company there are some strategic planning issues which are important and can
be distinguished (Ivanauskiene, N, &Auruskeviciene, V., 2009).Autoglass is putting their
focus on the customerâs fondness and clientele service. They have reached the largest
satisfaction degree in the service commerce just by refurbishing the windscreen in a
cost productive way.
Autoglass should be clientele oriented and try to increase their service portfolio in
alignment to rendezvous with the affray (Kupritz, V.& Cowell, E., 2011).Strategic
planning issues can be distinguished using Anshoffâs Growth Matrix. The growth matrix
can also be labeled as a marketing tool which consists of four different marketing
strategies which are based on new product input and existing product (Kotler, P., 2000).
The analysis of the growth matrix is:
i.
Market Penetration: all through this part Autoglass will boost its market
segments by enterprise an allotment of their merchandise and request an
allotment of customers. A market design herewith a enterprise searches for to
recognize larger dominance in the market all through which they actually are
giving (Melody, Y. & Kevin, H., 2000). This conceives normally focuses on
apprehending a larger share of aide degree living market.
ii.
Product Development: Market growth can be increased by Autoglass by
introducing developed or new products to the consumer market.
iii.
Market Development: The strategy to target new segments of customers can
enlarge the size of the existing market of Autoglass.
4
6. iv.
Diversification: This strategy is a risk aversion strategy in which the company
can introduce a new product to attract the customers.
Figure: Anoffâs Growth Matrix
For the continuous flow of business growth, Autoglass needs to understand the market
very well and adopt a strategy which best suits their need.
Top-Down and Bottom-Up approach of Autoglass:
Informal Planning:Casual designing is that the method whiles the supervisor or foremost
of an assembly develops an inspiration with no one accepted structure and rigid
associations (Grant M.R. 2010). Certain as blasting instant things managers use this
approach while it's conditionally significant to conceive any prescribed structure of close
to up with or the timeline for conceiving isn't adequate. Itâs important to command short
allowance objectives of the association
Top-Down: The breaking down of a strategy into small sections and getting a close look
is top down (Grant M. R., 2010). This approach is used by Autoglass to fulfill objectives
in developing product.
Bottom-Up: A number of systems combined and integrated to create an integrated
mega system (Grant M. R., 2010). This approach is used by Autoglass to develop their
customer service.
5
7. Behavioral Approach for Autoglass: Autoglass have to come to up with some
developments for his or her merchandise and market in alignment that they could a
wide-ranging marketplace for the purchasers. Their approach should be the top-down
procedure in alignment to capitalize their assets and to handle the affray inside the
future. Autoglass could be a growing enterprise interior the enterprise and thus the
service they're undertaking won't be decent for them to comprise on to the position
central the market.
1.3
EXPLAIN
MINIMUM
THREE
PLANNING
TECHNIQUE
FOR
AUTOGLASS
For Autoglass Company, three strategic techniques are suggested below:
1. Profit Impact of Market Strategy (PIMS)
2. BCG Growth Share Matrix
3. Strategic Position and Action Evaluation Matrix
1. Profit Impact of Market Strategy (PIMS):The establishment of feasibility and
affirmative influence of a business scheme through investigating its impact in the
market is the reason of PIMS (Wheelen& Hunger, T.L. &J.D., 2013). There are 6
foremost localities of concentration which investigates the impact:
ď Type of the business environment
ď Competitive position
ď Production process facility
ď Budget allocation
ď Strategic works
ď Operating outcomes
2. BCG Growth Share Model:using the BCG Growth model, Autoglass can
categorize their product into four categories to maintain better performance and
understanding of the products (Kotler, P., 2000).The division of the product into
4 categories has been suggested by the model on the product present and
market sales.
6
8. Placing goods in the BCG growth share matrix Autoglass will face 4 types of
consequences in the market. And they are:
For substantial growth and expansion of market share in business, some strategies
might be adopted by Autoglass to gain the upper hand in the market (GĂłmez, L, &
Ballard, D., 2013). Of which one strategy can be the BCG growth model which
categorizes the products and services in lieu with their position in the market. Earlier in
the report the explanation of this model has been shown. The management needs to
peer deep into the market and analyze their existing product and services and calculate
their expected future return (Kotler, P., 2000). Now they should categorize the products,
that which gives the market leadership should be âStarâ, the product with maximum
sales be âCash Cowsâ, the declining product should be âDogsâ and those products
between âStarsâ and âDogsâ should be âQuestion Marksâ and efforts should be made to
bring out the best possible outcome out of them.
Figure: BCG Growth Model
a) Cash Cows: Products having huge market share and producing maximum
sales.
b) Stars:Products leading the market in market share are called stars.
c) Dogs:Productshaving low in sales in a poor market.
d) Question Marks: Products having that are in a high growth market but with
low market share and still having probability of being Stars.
3. Strategic Position and Action Evaluation Matrix (SPACE): Understanding the
requirements and demand in the market and working in accordance with the
7
9. strategies is the focal point of SPACE matrix (Wheelen& Hunger, T.L. &J.D.,
2013). The current position of the company in the market helps to understand
and help the management design required steps to growth
8
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 is a company which offers the best services at a low cost but
ensuring quality safety features. The windscreens have superior visibility which is
enhanced due to the presence of quality glasses and reduces the chance damage to it.
Weaknesses: If there are strengths then there are weaknesses. The greatest
weakness of this company is that they are not interested in promotions and Lack of
advertisement can lead to their anonymity.
Opportunities: Very small numbers of firms are present in the market which paves the
way for substantial growth. There is always room for new product in the market and if a
channel opens then it should be occupied.
Threats: Threats are a part and parcel of business, with the competition getting tougher
by the second quality supplier are hard to come by and again there is the tag line of
high price to be paid. Geographic location can also be a threat if the business is not
focused accordingly.
9
11. 2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR AUTOGLASS
USING AT LEAST TWO APPROACHES
For a business to analyze its surrounding situation, an organization needs to go through
PESTLE Analysis (Wheelen& Hunger, T.L. &J.D., 2013):
Political: Various political decisions influence business in different countries or regions.
The change of governments also affects the conditions of a market. The impact of
taxation policies on business is also worth mentioning.
Economical: In a region the earnings ratio and buying capacity of the consumers
influence the sales. In a densely economical region changes affect the business heavily.
Socio-cultural: Preferences in lifestyle made by the consumers creates impact on the
industry. Social cultures, beliefs and norms that prevail in the society also can affect the
business.
Technological: In this era of technological advancement and trend, designs are
manipulated with advance technology.
Legal:There are various laws which are based on consumer rights and need to be
followed. The society is bound by law and order of which legal restrictions are an
influential part and needs to be followed strictly.
Environment: The weather, climate change, demography etc has a great impact on
business.
However, it is important to analyze Porterâs 5 Forceswhich are factors in thepotential
rising situations in businesses (Kotler, P., 2000). 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
10
12. 2.3 EXPLAIN THE SIGNIFICANCE OF STAKEHOLDERSâ ANALYSIS IN
RELATION TO AUTOGLASS
Stakeholders can be divided into four categories:
a) Latent: Their influence on the business is a significant but having low interest in
the companyâs business.
b) Promoters: They have quality influence and interest on the company so they
often promote the companyâs product that they supply to.
c) Defenders: They have high interest on the company but lacks influence on the
strategies.
d) Apathetic:They have neither interest nor influence.
11
13. Task 3
3.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES RELATING TO
SUBSTANTIVE GROWTH, LIMITED GROWTH AND RETRENCHMENT
Market Entry Strategy:
Organic Growth:It minimizes any development that's gained by pacing into the other
enterprise or amalgamation or acquisition. When an enterprise association undergoes
development over its own enterprise that is as identical because the beginning of the
organization, it's renowned as organic development.
Merger:Merger is the system by two enterprises gets joined and turns into one entity
through mutual consolidation. Autoglass started through such amalgamation.
Acquisition:This is the method where one accurate enterprise buys another whole
enterprise and assemblies up itself because the proprietor. Throughout this procedure
100% or adjacent 100% ownership yearns to be came by.
Strategic Alliance: This approach is completely an concept that is situated between
the concept of organic development and acquisition. This is the method where two or
more companies acquiesce upon kind of similar objectives and share every otherâs
assets to attain those objectives.
Licensing:It is the design through that a mother enterprise (licensor) allows another
enterprise (licensee) to use its trademark and deal the merchandise or services on the
groundwork of affirmations on many time spans. The time span adopts the authorizing
fee that desires to be paid to the licensor.
Franchising:It is the scheme, through that a enterprise profits from the correct to use
another companyâs trademark, enterprise type, methods while the franchisor provision
the correct to the franchisee. For getting market share overseas, Autoglass may use
this approach by circulation franchises in distinct locations.
12
14. Substantial Growth Strategy:
Horizontal Integration:In degree integration an enterprise diversity or arrives by yield
facility of affiliated or complementary merchandise (Melody, Y. & Kevin, H., 2000). rarely
it's going to additionally occur that a corporation buys one amidst its competitors and
pattern integration. Autoglass would likely pattern such integration by connecting with
alternate output that's affiliated with its dwelling merchandise
Vertical Integration:Autoglass would expect employ into integration by connecting with
the suppliers and vendors. In integration a company additions with the businesses or
partners of the offer string of attachments and in some cases all the partners of the
string of attachments contain below one proprietor (Melody, Y. & Kevin, H., 2000).
Related Diversification:When an enterprise elaborates its enterprise with some
diversification interior the house line of merchandise. The new productions rectangle
address alike to the present merchandise.
Unrelated Diversification:It will be unrelated diversification if Autoglass starts
mercantilism house window crystal or attractiveness mirrors. It is the method once an
enterprise new employees into diversification by inserting new merchandise and
services that doesnât accept as true the dwelling merchandise (Arazy, O, &Gellatly, I.,
2012).
Limited Growth:
Market Penetration:It means that penetrating the comparable market by giving
comparable worth against the worth of the competitors. Itâs commonly utilized to entire
sales development.This approach is pledged to instantly hit the competitors by
benefiting their customers.
Market Development: It proposes that aiming at new customer needs and attracting
the non-buying customers of that segment. It helps to expand the market share by
adding new segment of shoppers. Itâs potential for Autoglass to develop the market by
expanding the enterprise geographically.
13
15. Product Development: It means that developing new merchandise that do not live
presently and so attracting customers to get an allotment of diversity of merchandise or
services.
Innovation: It proposes that searching out a solely new would like of the shoppers
inside the market and innovating replacement merchandise or service to rendezvous
that require.
Disinvestment:
Retrenchment:A theme utilized by companies to scale back the variety or the last
dimensions of the procedures of the business. This design is usually utilized so as to
slash prices with the aim of changing into an supplemented economic steady enterprise.
Turn around:if a firm terminates or bankrupts, its assets rectangle assesses
documented and furthermore the enhancement buys creditors. If no alternate notions
befit the associations then it should deal its assets then ante up the shareholders and
stakeholders. Any leftovers are distributed to shareholders. Liquidating a firm is that the
last stage of the firmâs survival.
Liquidation:When a firm is terminated or bankrupted, its assets rectangle assess
documented and furthermore the improvement buys creditors. Any leftovers are
distributed to shareholders. Liquidating a firm is that the last stage of the firmâs survival.
If no alternate concepts befit the associations then it should deal its assets then ante up
the shareholders and stakeholders.
Divestment:It the method of pulling out the assets operational and agreements those to
rendezvous the gap inside the monetary issues and so as to liquidate the association
divestment is important for any association. Divestment is that the converse of buying
into. The procedure of exodus of buying into is divestment. Moreover cited to as
divestiture, it's conceived for either economic or communal goals.
Michael Porterâs Generic Strategy:
14
16. For the leadership in the market Michael Porter suggested 3 types of strategies for
expanding thebusiness as well profit projection (Kotler, P., 2000).
1. Cost Leadership:
Competitive price for product and service.
Decrease price to gain sales maxima
More sales more profit
2. Differentiation:
Regular product with additional offer.
Out of the box offers
3. Focus:
Focus on a single sector
Improve and expand
Gain 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 can be cooperative for them to flourish the market. So
contemplating future conceives they can enquire their market need and arrive to up with
some development of the new merchandise to diversify their services and arrest a new
market segment.
Autoglass should be following the upright integration conceive to augment their
enterprise. They can accelerate with coalition with automakers to apprehend the new
market segment. Autoglass is in a mighty place and they might be proficient to
accelerate with the coalition with new associations. Because this conceive is befitting for
the associations development and their center capabilities acquiesce with the conceive.
Coalition with affiliated associations will endow Autoglass to put more aim on the
15
17. customerâs fondness and can develop new merchandise class to fulfill the craves of the
customers
Only starting new merchandise line and increasing the market will not solely help the
Autoglass enterprise to elaborate in the market. Autoglass should wholeheartedly
reassess the answer of the customers so that they might realize what the customers are
looking for and to what grade of acceptance customerâs crave.
The Autoglass is at present have a 92% acceptance rate amidst the customers. But with
expansion of the enterprise the acceptance rate might fluctuate and Autoglass need to
assemble a timescale for the new goals and elongation of the new services. considering
the position in the enterprise, Autoglass can supply a 5 quarters conceive that will be
plentiful for Autoglass to contend up with the affray and sustain coalition with the
automakers to perplex the enterprise. Autoglass can benchmark next 5 quarters to
comply with notions they have taken and fulfill the firm promise to the customers.
16
18. Task 4
4.1 COMPARE THE ROLES AND RESPONSIBILITIES FOR STRATEGY
IMPLEMENTATION OF AUTOGLASS
If the conclusions are taken flawlessly and wisely; and if those decisions are executed
correctly then the association will should flourish with a vast development and big
amount of earnings (Arazy, O, &Gellatly, I., 2012).Now a dayâs one of the crucial
matters of doing business is âStrategy and principle Executionâ. The peak level
administration is not for doing only their own job, rather they need to disperse their eye
all through the entire association and have a dream of every lone threat of distant
future. They have to arrange new plans and execute diverse strategies to overwhelm
every obstacle of anomaly market positions (GĂłmez, L, & Ballard, D., 2013). For any
business like Autoglass, to realize the market positions and to assess every possible
scheme is the foremost obligation and blame of administration and this is a very
significant role for the organization.
The figure-head of any organization, CEO or President or Managing controller has to
play a crucial function in the organization (Arazy, O, &Gellatly, I., 2012). He furthermore
desires to be willing to sustain a harmony in the workplace and the output of the
employees which ensures achievement of his conclusions.Though that is a complex job
but is a important one. Before attending any prescribed discussion he desires to
investigate the present and future condition of the association contrasted with the
market situation (Dessler, G., 2000).
Autoglass management should compute the trading and sales ways to double-check the
best market share and sales. The sales cluster should to be evolved throughout a
means which will extend with the affray interior the market. Creative advertisements in
applicable localities would probably facilitate an allotment all through this address. The
center competencies should to be evidently focused to attractiveness the shoppers.
17
19. Outdated or fabricated data can cause wreck to any objective. So apart from the interior
duties the administration desires to hold eye on the out-of-doors world and anxiety
about all the applicable news of the market.Furthermore, before finalizing any scheme
the figure-head need to have genuine access to the reliable statistics and data (Arazy,
O, &Gellatly, I., 2012).
4.2 EVALUATE RESOURCE REQUIREMENTS TO IMPLEMENT A NEW
STRATEGY FOR AUTOGLASS
Share of adequate assets is the most important key for the production and supportive
undertakings. A business administration desires to have a clear concept about the place
from where he will make or import necessary assets and how could he assign those
assets. Here management should recognize the common place where greatest piece of
the output are being made and what are the services depends on that part (Dessler, G.,
2000). For Autoglass, they give the most priority on human assets and they believe that
is the key resource and using that asset they assist the customer better than their
competitors.
To supply the best merchandise they double-check highest security and durability.
Autoglass put much more share than other businesses to own the best raw components
for glass (Arazy, O, &Gellatly, I., 2012). As per the granted case description, Autoglass
is a successful company for sustaining the value and assigning adequate and good
quality of raw materials
Thatâs why they own 159 clientele advisors employed 24/7 for serving their
customers (Arazy, O, &Gellatly, I., 2012). Fleet service is one of their added
clientele services which make them special. Autoglass is sanctioning more cash for
their further enhancement in worker training and quality services. They currently scored
92% customer satisfaction.
4.3 DISCUSS TARGETS AND TIMESCALES FOR ACHIEVEMENT FOR
AUTOGLASS TO MONITOR A GIVEN STRATEGY
Evaluation of the benchmark outcomes:
18
20. Quarter
The business should be bring up with the schemes and find out the
1
feasibility of the schemes whether the schemes would reflect in the
anticipated conclusion. They can take the response of the customers
and find out what else they are looking for in the windscreen fixing
service. There should be weekly and monthly supervising by the line
managers of the divisions
Quarter
Throughout the time span Autoglass should reassess the customerâs
2
response and request the craved conceive to perplexing the enterprise.
The line managers should be to accuse for assembling the feedbacks
and depicting in the main heading of it
Quarter
This is the quarter of accumulating facts and figures and takes research
3
note on the directed schemes. The management should find out the gap
between the foreseen outcome and genuine conclusion. The GAP might
happen because of need of coordination or inefficiency of the employees
and line managers
Quarter
Management should organize a training program to fill in the gap. So
4
that the employees can achieve the organization goal in desired
manner.
Quarter
In this quarter the association might accomplish the yearend results
5
founded on the design making and the implementation method. If the
administration falls short to complete the objectives through the
strategies, then they have to start activities founded on facts and figures
like educating the workers or delivering support to them
Table: Evaluation of the outcomes
19
21. Conclusion:
Who have got their windshield broken; they can be out of concerned because there is a
business entitled Autoglass who are making some high quality glass. For years the
company acquired a huge believe pattern their customer by providing quality product.
They are providing best glasses with best services. They advanced their services as
high as it pushed away the other competitors far behind. Autoglass started the needed
and effective schemes to hold ahead in the rush. Surely they are going more far ahead
in the coming future.
20
22. 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-repairand-replacement.186.0.html. [Accessed 18 November, 2013].
Dessler, G., 2000. Human Resource Management. 5th ed. Delhi: Pearson.
GĂłmez, 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) â 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.
21