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An Assignment On Business Strategy
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LearningThroughout the case and research Autoglass is satisfying 92% of the customers. In
the windscreen repairing industry Autoglass has shown an astonishingly nice job in
satisfying the customers and provision the foremost effective windshield
replacement or repairing service.
Autoglass has become the best service providing business in comparison to the
banks and alternate service suppliers. Autoglass maintains a nice affiliation between
the customers and workers because they believe that if employees are happy in
Autoglass then they are going to serve the customers additional with efficiency and it
will turn in the revenue.
Autoglass is now the market leader in the industry and they're growing in passing
stable stride. From the start of the business to this day, Autoglass focuses on the
necessities and claims of the customers and conjointly the mode of providing
services in a cheap kind. They presently have 500 branches serving at the Europe.
Sustained the granted position and looking out the Autoglass it can be best inferred
that Autoglass is in a competitive place within the windshield replacement industry
and are ready to face future obstacles in a productive manner.
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Contents
Learning......................................................................................................................1
Task 1.........................................................................................................................4
1.1 EXPLAIN THE ROLE OF STRATEGY, MISSION, VISIONS, OBJECTIVE, GOALS AND CORE COMPETENCIES OF AUTOGLASS.....................................4
1.2 REVIEW THE VITAL ISSUES INVOLVED IN STRATEGIC PLANNING IN AUTOGLASS..........................................................................................................5
1.3 EXPLAIN MINIMUM THREE PLANNING TECHNIQUE FOR AUTOGLASS....8
Task 2.......................................................................................................................11
2.1 PRODUCE AN ORGANIZATIONAL AUDIT FOR AUTOGLASS....................11
2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR AUTOGLASS USING AT LEAST TWO APPROACHES................................................................................12
2.3 EXPLAIN THE SIGNIFICANCE OF STAKEHOLDERS’ ANALYSIS IN RELATION TO AUTOGLASS...............................................................................14
Task 3.......................................................................................................................16
3.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES RELATING TO SUBSTANTIVE GROWTH, LIMITED GROWTH AND RETRENCHMENT...........16
3.2 SELECT AN APPROPRIATE FUTURE STRATEGY FOR AUTOGLASS.......20
Task 4.......................................................................................................................21
4.1 COMPARE THE ROLES AND RESPONSIBILITIES FOR STRATEGY IMPLEMENTATION OF AUTOGLASS.................................................................21
4.2 EVALUATE RESOURCE REQUIREMENTS TO IMPLEMENT A NEW STRATEGY FOR AUTOGLASS...........................................................................22
4.3 DISCUSS TARGETS AND TIMESCALES FOR ACHIEVEMENT FOR AUTOGLASS TO MONITOR A GIVEN STRATEGY.............................................22
CONCLUSION..........................................................................................................23
References...............................................................................................................24
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Task 1
1.1 EXPLAIN THE ROLE OF STRATEGY, MISSION,
VISIONS, OBJECTIVE, GOALS AND CORE
COMPETENCIES OF AUTOGLASS
Autoglass Company Mission: Company mission relies on the action pointers
according that the employees require performing (Armstrong, G., & Kotler, P., 2006).
The foremost focus of Autoglass is on the customer’s satisfaction and providing the
only windscreen replacing services to the customers (Autoglass Company).
Autoglass Company Vision: Vision is the longer term intention of the target that an
association applies to complete (Armstrong, G., & Kotler, P., 2006). The dream of
The Autoglass Company is to help the customers efficiently and deliver the absolute
supreme level of fulfillment to the customers (Autoglass Company). The dream,
helping customers with responsibility will lead the company to become strong.
Autoglass Company Core Competency: Core competency mentions to the core
activities of an organization that outline the enterprise missions and visions
(Armstrong, G., & Kotler, P., 2006). Supported by the case of Autoglass has the core
ability to replace or repair any sanely impaired screen of any model (Autoglass
Company).
Strategic Intent: Strategic intent proposes that there's a general outlook on while
the enterprise should to be going instead of a accurate declaration of Associate in
nursing this proposes that there ought to be galore of flexibility (Ivanauskiene, N, &
Auruskeviciene, V., 2009). The strategic intent of Autoglass is to ascertain itself
because the market foremost constantly. They are doing all the undertakings to
remain leader.
Role of Strategy of Autoglass: The main task in strategic formulation is often the
compilation and dissemination of the vision and the method of affirmation. This
summarizes, in essence, the interpretation of a company (Ivanauskiene, N, &
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Auruskeviciene, V., 2009). Autoglass has assembled their roles in creating
strategies in an exceedingly approach (Autoglass Company).
Objective and goals of Autoglass: The major goal of them is to guide their client
by fixing or refurbishing broken windshield. The aim of Autoglass is to pattern their
enterprise augment and aid the worldwide persons (Autoglass Company). They are
expanding their organization by being triumphant the hearts of the shoppers.
1.2 REVIEW THE VITAL ISSUES INVOLVED IN
STRATEGIC PLANNING IN AUTOGLASS
In alignment to line up schemes and apply schemes there are somecrucial issues
that have got to be undertaken (Wheelen& Hunger, T. L. & J. D., 2013). Autoglass is
putting their focus on the customer’s fondness and clientele service. They have
reached the largest satisfaction grade in the service industry just by restoring the
windscreen in a cost effective way.
Autoglass should be clientele oriented and try to boost their service portfolio in
alignment to rendezvous with the competition (Kupritz, V.& Cowell, E., 2011). Given
the position in the case we can investigation the competitive benefits of Autoglass.
Sustained the case, Ansoff’s form are often accustomed to investigate the
comparable advantages.
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Autoglass’s Competitive Advantage: Autoglass consigns the most excellent
service of replacement windscreens. They are granting varied services to customers
in relevancy windscreens and capturing an honest share of the market. As
automobile use is growing day by day, Ansoff’s model will facilitate them in
researching their comparable benefits (Armstrong, G., &Kotler, P., 2006).
Ansoff’s development type suggests four fully distinct teams of alternatives.
Supported the position and analysis we tend to learned that Autoglass is going
expand its market and has the capability to serve more they are doing presently
(Autoglass Company). They are delivering services to over one million customers
having downside with their windshields. SoAutoglass will assist customers with their
existing product and with various mean of services. These four distinct procedures
face differing types of risks (Wheelen& Hunger, T.L. &J.D., 2013).
The strategies are:
1. Market penetration: A market strategy herewith a company seeks to
recognize larger dominance in the market throughout which they already are
giving (Melody, Y. & Kevin, H., 2000). This scheme typically focuses on
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Market Penetration Product Development
Market Development Diversification
Existing Product New Product
New Product
Existing
Product
Figure: Ansoff’s Model
apprehending a larger share of aide degree existing market. Throughout this
part Autoglass will boost its market segments by business a allotment of their
product and appeal a allotment of customers.
2. Product development: Introduction of latest product can alter Autoglass that
will complement the present product. Though this strategy includes
aimportant handicap. If the purchasers do not perform as designed Autoglass
would possibly finishing mislaying financial gain.
3. Market development: Autoglass is becoming the market leader throughout
this screen fixing enterprise. So, they will encourage Autoglass extensively
and guarantee to catch new customers to continue its market share.
4. Diversification: Autoglass would possibly build a portfolio that will unfold the
risks and reduce the decrease of financial gain.
Autoglass Company is in major position within the industry. In order to boost the
enlargement rate in a very stable manner by persuading every existing and potential
new customer and boost its market share (Wheelen& Hunger, T. L. & J. D., 2013).
Autoglass got to set a 3 years growth strategy according the Ansoff’s development
type to acknowledge the target.
Definition of Top-Down and Bottom-Up
Informal Planning:
Casual designing is that the method where the supervisor or foremost of a group
develops an inspiration with no one accepted structure and rigid organizations
(Grant M.R. 2010). Certain as shooting instant things managers use this approach
where it's important to conceive any prescribed structure of approaching up with or
the timeline isn't sufficient. It’s significant to control short amount objectives of the
organization.
Top-Down:
A top-down approach is essentially the breaking down of a theme to understand
insight within the sub-themes (Grant M. R., 2010). Autoglass is triumphant in this
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approach in their development which they're doing pretty sensible in pursuing this
approach.
Bottom-Up:
A bottom-up approach is that the piecing of systems to produce increase to
supplemental clear systems, so conceiving the first systems, sub-systems of the
presenting system (Grant M. R., 2010). Autoglass is applying this in their service
development to persuade the customers.
Behavioral Approach for Autoglass:
Autoglass ought to approach inside the top-down method in alignment to capitalize
their assets and to handle the affray within the future. Autoglass could be a growing
enterprise inside the commerce and therefore the service they're undertaking won't
be decent for them to comprise on to the place inside the market.
1.3 EXPLAIN MINIMUM THREE PLANNING
TECHNIQUE FOR AUTOGLASS
In alignment to grow Autoglass can use three techniques, and they are:
1. BCG Growth Share Matrix: Autoglass may grade their product in such a way
where they can differentiate their product and maintain synchronization
among the product portfolio (Melody, Y. & Kevin, H., 2000). It will collectively
facilitate Autoglass to figure out once and whereas they would invest
throughout a new brand development and to extract all the profits from the
service.
Autoglass will face four kinds of consequences in the market. And they are:
1. High Growth and High Market Share (STARS)
The star products are to become cash cows within the longer term and
management can gather from the business project. This strategy wants
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high allowance of cash and also the management needs to figure out
the flow of cash within the business.
This strategy yearns high allowance of cash and moreover the
management needs to range out the flow of cash among the
enterprise.
2. Low Growth but High Market Share (CASH COWS)
From the matrix, we can know that the product that has stopped
growing but huge market share prevails, the organization turns in
stable revenue.
3. Low Growth and Low Market Share (DOGS)
Administration ought to stop any pointless expenses.
Once the products start to misplace its market share then development
rates decline and the products falls into declining stage. The
organization ought to dissociate from the business right away.
4. High Growth but Low Market Share (QUESTION MARKS)
The product has put together the danger of being a dog product if it
does not flip in any revenue.
The products that are freshly offered fall throughout this category and
have the potentiality to maximize profit.
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Figure: BCG Matrix
2. Strategic place & activity evaluation Matrix (SPACE): Autoglass can use
the SPACE matrix to analyze the market demand, corporation place and
desires to figure and conceive ways that to elaborate the market (Wheelen&
Hunger, T. L. & J. D., 2013). SPACE matrix has four fully distinct quadrants
that indicate the association’s place and conjointly the course of activities
(Melody, Y. & Kevin, H., 2000). Autoglass is in a very strong position among
the market. So, they should use the aggressive ways that to take over the
market and it will collectively facilitate in determinative the SWOT of the
corporation.
3. Profit Impact of Market Strategy (PIMS): PIMS may well be a quite
cooperative to extract knowledge from the information and support the
principles that are undertaken to appreciate comparable advantages..
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Task 2
2.1 PRODUCE AN ORGANIZATIONAL AUDIT FOR
AUTOGLASS
SWOT Analysis
Strengths
Windshields provide visual clarity.
The safety features in the product are high
Autoglass provides high quality products at low cost.
Weaknesses
Lack of advertisement is present.
Autoglass promotes less of their brand.
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Strengths1. Safety2. Low Cost3. Visual Clarity
Opportunities1. Emerging Economy2. New Product3. Growth Rate
Weaknesses1. Promotion 2. Advertisement
Threats1. Geographic Location2. Government Policy
S W O T
Figure: SWOT Analysis
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Opportunities
Windshield replacing or repairing is present in emerging economy Windshield
replacing or repairing is present in emerging economy.
Autoglass has potentiality to increase the growth rate in a limited time period.
Development of new products creates new opportunities.
Threats
Government policies shape the business environment.
Operation in unnecessary locations is loss of capital.
2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR
AUTOGLASS USING AT LEAST TWO APPROACHES
PESTLE analysis is conducted to work out the procedure and strategy inside the
enterprise and to be notified the attractiveness of the industry of procedure
(Wheelen& Hunger, T. L. & J. D., 2013). Thus to operate in associated industry there
are unit varied factors that ought to be thought of. Organizations will maximize
possibilities and minimize threats by conducting PESTLE analysis (Automotive
Industry, 2013).
PESTLE analysis:
Political
Taxation policies affect the industry.
Government stability is important to make the future decisions.
Political climate is important in determining the attractiveness of the business.
Economical
The need for replacing windshield.
Purchasing capacity affects the industry.
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Socio-cultural
The decision to own an automobile depends on the social norm.
Lifestyle and preferences shapes an industry.
Technological
Technology of windshield manufacture.
Technology relating the designs.
Legal
Employment and consumer law is extremely emphasized.
Law regarding safety measures.
Environmental
Some things are beyond control of the organizations such as weather, climate
and climate change.
Porter’s five forces investigation assists the management to work out and realize the
general context of the industry (Automotive Industry, 2013).
Porter’s five forces are:
1. The threat of new entrants
Access to Distribution Channel: Efficient distribution channel helps to
create demand and market need.
Government Policy: Government policy can limit the entry and exit barrier in
an industry.
2. The bargaining power of customers
Threat of Backward Integration: Organizations face the risk of backward
integration with the suppliers.
3. The threat of substitute products
Prices: Prices play an important role in any industry. Buyers may shift from
one product to another just because of price sensitivity.
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Access: Buyers access in the industry simple and customers might go for
alternatives.
4. The amount of bargaining power suppliers have
Threat of forward Integration: Organizations face the risk of forward
integration with the suppliers. With the help suppliers, buyers can make the
same products that are offered by another company.
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
The stakeholders’ grid:
1. Promoters: It mentions to the stakeholders who leverage the ways and what
is more has high interest.
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Figure: Stakeholders’ Grid
High Influence High Interest (Promoters)
High Influence Low Interest (Latent’s)
Low Influence Low Interest (Apathetic)
Low Influence High Interest (Defenders)
2. Latent’s: It mentions to the stakeholders who leverage schemes however
has less interest.
3. Apathetic: It refers to the Stakeholders who has less interest and rarely
leverages the ways.
4. Defenders: It mentions to the stakeholders who have less influence within
the strategy creating however has high interest.
The stakeholders are kept in four classifications so that each stakeholder has their
exact privileges and obligations in address of the making the designs for the
association which will be applied for the betterment of the association. Autoglass has
mapped the stakeholders inside the organization in alignment that the stakeholders
will gift their duty in contemplate of the organization’s profit
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Task 3
3.1 ANALYZE POSSIBLE ALTERNATIVES
STRATEGIES RELATING TO SUBSTANTIVE
GROWTH, LIMITED GROWTH AND RETRENCHMENT
Market Entry Strategy
Organic Growth: When an enterprise association accomplishes development over
its own enterprise that is as identical because the beginning of the organization, it's
known as organic development. It omits any development that's profited by stepping
into the other enterprise or amalgamation or acquisition.
Merger: Merger is that the procedure by two enterprises gets united and turns into
one entity through lawful consolidation. The start of Autoglass was through such
merger.
Acquisition: This is the method where one particular business buys another entire
business and sets up itself because the proprietor. During this procedure 100% or
near 100% ownership desires to be acquired.
Strategic Alliance: This is the tactic while 2 or more firms join to fulfill those
objectives. This approach is absolutely a notion that stays between the idea of
organic development and uniting or acquisition.
Licensing: It is the scheme through that a mother business (licensor) allows another
business (licensee) to use its trademark and sell the product or services on the
foundation of affirmations on many time spans. The time span embraces the
authorizing fee that needs to be paid to the licensor.
Franchising: It is the scheme, through that an enterprise earnings from the correct
to use another company’s trademark, enterprise type, procedures while the
franchisor supplies the correct to the franchisee.
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Substantive Growth
Horizontal Integration: In grade integration an enterprise varieties or comes by
yield facility of associated or complementary merchandise (Melody, Y. & Kevin, H.,
2000). Occasionally it's going to additionally happen that a corporation purchases
one amidst its competitors and pattern integration. Autoglass would probably pattern
such integration by connecting with alternative output that's affiliated with its dwelling
product.
Vertical Integration: In integration a corporation connections with the businesses or
partners of the offer string of links and in several cases all the partners of the string
of connections hold underneath one proprietor (Melody, Y. & Kevin, H., 2000).
Autoglass would possibly recruit into integration by connecting with the suppliers and
vendors.
Related Diversification: When an enterprise elaborates with some diversification
within the existing services (Arazy, O, & Gellatly, I., 2012). The new productions
rectangle assess alike to the prevailing merchandise.
Unrelated Diversification: It is the method once an enterprise recruits into
diversification by introducing new product and services that doesn’t believe the
dwelling product (Arazy, O, & Gellatly, I., 2012). It will be unrelated diversification if
Autoglass starts mercantilism home window crystal or attractiveness mirrors.
Limited Growth
Disinvestment:
Retrenchment: A topic utilized by corporations to scale back the variety or the last
size of the methods of the business. This scheme is generally utilized so as to cut
prices with the aim of changing into financial steady enterprise.
Turn around: Turnaround may be a technique dedicated to business renewal. It
utilizes analysis and progressing to save distressed companies and returns them to
financial condition. Turnaround management engages management rethink, activity
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founded mostly cost accounting, source malfunction determinants enquiry, and
SWOT enquiry to work out why the enterprise is dropping short. So as to pattern a
comeback within the business associations got to verify the base of the adversities
and supported those adversities they have to form up new procedures and values to
trounce those issues.
Liquidation: When firms are terminated/bankrupted, its assets square measure
recorded and furthermore the improvement pays creditors. Any leftovers are
distributed to shareholders. Liquidating a firm is that the last stage of the firm’s
survival.
Divestment: The procedure of withdrawal of buying into. Furthermore mentioned to
as divestiture, it's created for either financial or communal goals. Divestment is that
the converse of buying into. It the tactic of pulling out the assets operational and
deals those to rendezvous the gap within the monetary matters and so as to
liquidate the association divestment is important for any association.
Porter’s Generic Strategy
Michael Porter explained the overall ways for a company to work within the industry
(Kotler, P., 2000). Corporations use these ways to achieve competitive benefits
(Purchase Behavior, 2013). And they are:
1. Overall Cost Leadership
2. Differentiation
3. Focal Point
Overall Cost Leadership
From the case it would be deduced that Autoglass is following price leadership
strategy within the industry which let them to provide services within the tiniest cost
(Kotler, P., 2000). It is helpful to draw in new market.
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Differentiation
Cost authority alone will not able to facilitate a business to relish within the market
(Kotler, P., 2000). Differentiation is important to assemble the other profits and
grabbing other customers. The Autoglass is offering 24/7 consumer services to
differentiate them from the others.
Focal Point
To accelerate the organization within the industry corporations ought to focus in an
exceedingly specific target (Kotler, P., 2000). Autoglass is specializing in serving the
customers and pleasure them for his or her money. Autoglass has become the
foremost productive windshield fixing or substitution service provider.
3.2 SELECT AN APPROPRIATE FUTURE STRATEGY
FOR AUTOGLASS
In alignment to complicate the market segment Autoglass business needs new
designs and new items which can be cooperative for them to flourish the market. So
contemplating future design they can enquire their market need and reach up with
some development of the new merchandise to diversify their services and
apprehend a new market segment.
Autoglass should be following the vertical integration design to augment their
enterprise. They can advance with coalition with automakers to apprehend the new
market segment. Autoglass is in a powerful location and they might be able to go
with the coalition with new organizations. Because this design is befitting for the
associations development and their centre capabilities acquiesce with the design.
Coalition with associated associations will enable Autoglass to put more aim on the
customer’s preference and can develop new merchandise class to fulfill the desires
of the customers.
Only beginning new merchandise line and increasing the market will not solely help
the Autoglass enterprise to expand in the market. Autoglass should absolutely
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reconsider the answer of the customers so that they might understand what the
customers are looking for and to what level of acceptance customer’s yearn.
The Autoglass is at present have a 92% approval 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.
Contemplating the place in the business, Autoglass can supply a 5 quarters design
that will be ample for Autoglass to argue up with the affray and maintain coalition
with the automakers to complicate the enterprise. Autoglass can standard next 5
quarters to comply with schemes they have taken and fulfill the firm pledge to the
customers.
Task 4
4.1 COMPARE THE ROLES AND RESPONSIBILITIES
FOR STRATEGY IMPLEMENTATION OF AUTOGLASS
Applying the principles inside the association is improbably essential and it carries a
definite significance for the organization’s welfare. With the implementation of the
principles it indicates to the principles to obtain earnings for the corporation
(Addmour, H., &Ayish, H., 2005). Consideringthe strategies it needs to be developed
and ensured to determine those values that are appropriate or not. If the values fail
to comply with the principles then it is turned down and thought of as unproductive
one (Gudonaviciene, R, &Rutelione, A., 2009). Autoglass ought to be compelled to
use in deepness filtering procedures of the values to catch and keep the present
market share.
CEO of an organization is responsible for gyrating the ideas into reality amidst the
enterprise (Michael A., 1999). To use economical and productive principles all the
team within the association needs to assess the littlest stages of the convictions and
organize the strategies (Schultz, H., 2006).
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Managers have to be compelled to encourage and leverage the personnel to
execute the principles that require commencing expeditiously and effectively.
Convincing the aim, accomplishment can complete in employee happiness and
coherence in job atmosphere (Michael A., 1999).
4.2 EVALUATE RESOURCE REQUIREMENTS TO
IMPLEMENT A NEW STRATEGY FOR AUTOGLASS
In alignment to ponder the resources of Autoglass, the organization ought to to settle
on correct parts and place them particular position to produce the services.
Autoglass has prioritized its human resources as a result it became the finest service
provider of windscreens replacing and repairing (Dessler, G., 2000). Autoglass in
supplement has fleet repairing services that involve man power. Thus
Autoglasssplurgea lot in suggesting and developing the state of the force
In thought of parts and time share Autoglass is that the pioneer within the business
as a conclusion they provide the best productive services to affirm the sturdiness
and security of the customers and place at the timely deliveries.
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. 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.
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Quarter
2
During the period Autoglass should review the customer’s feedback and
implement the desired plan to expand the business.
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.
Quarter
4
Management should organize a training program to fill in the gap.
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.
CONCLUSIONAutoglass has created the computer display repairing or replacement less
complicated for the purchasers and activity services to the purchasers to their full
acceptance. The Autoglass enterprise has the pledge to augment and become one
in every of the simplest screen replacement organizations inside the world.
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Table: Evaluation of the outcomes
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