An assignment on

Business Strategy

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Executive SummaryAutoglass is known as the finest service providing organization. In the servicing industry

Autoglass has shown a remarkably great job in pleasing the customers and providing the best

windshield replacement or repairing service.

During a survey in the industry 92% of the customers were satisfied at their service.

Autoglass maintains a harmonious relationship between the customers & employees. From

the opening of the business till this day Autoglass focuses on the needs and demands of the

customers and the mode of providing services in an efficient way.

Autoglass is leading the industry and they are on the rise. They now have 500 branches

serving in the Europe. Based on the given scenario Autoglass it can be inferred that

Autoglass will be at the top in the future.

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Contents

Executive Summary...................................................................................................................ii

Task 1.........................................................................................................................................0

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

Autoglass...............................................................................................................................0

1.2 Review the vital issues involved in Strategic planning in Autoglass..............................1

1.3 Explain minimum three planning technique for Autoglass.............................................4

Task 2.........................................................................................................................................7

2.1 Produce an organizational Audit for Autoglass...............................................................7

2.2 Carry out an environmental audit for Autoglass using at least two approaches..............8

2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass..................10

Task 3.......................................................................................................................................12

3.1Analyze 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

Reference.................................................................................................................................20

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Task 1

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

competencies of Autoglass

Autoglass Company Mission:

Mission of an organization is supported on the present situation and action guidelines

according which the employees are to perform to attain the objectives of the organization

(Kotler, P., 2000). The main focus of the Autoglass Company is on the customer’s

satisfaction and providing the best windscreen services to the customers (Autoglass

Company). By fulfilling the missions, the vision of an organization takes shape and the

objective becomes clearer.

Autoglass Company Core Competency:

A core competency is a concept of theory that specifies the factors that a business sees as

central to the way the company or its employees work (Grant M. R., 2010). Core competency

defines the core operation of an organization that shape the business missions and visions of

that particular organization (Kotler, P., 2000). In case of Autoglass the core competency is

that they can replace or repair any kind of broken or damaged windshield (Autoglass

Company).

Autoglass Company Vision:

Vision of an organization is the future intentions and target that an organizations try to

achieve by defining the missions and setting goals and objectives to accomplish (Kotler, P.,

2000). Autoglass seeks to serve the customers efficiently and provide the best service to the

customers (Autoglass Company). The vision of serving customers with integrity will lead

them to grow and set boundaries in the industry.

Strategic Intent:

The notion of strategic intent suggests that there is a general outlook on where the business

should be going rather than a definite statement of an expected conclusion and this means

that there should be abounding of flexibility inside the declaration to permit for staff start,

group assistance and adaptation in lightweight of altered attenuating factors (Ivanauskiene,

N, & Auruskeviciene, V., 2009). The strategic intent of Autoglass is doing all the

undertakings to stay leader.

Objective and goals of Autoglass

The main target of Autoglass is to repair broken windscreen of any type. The aim of

Autoglass is to make their enterprise augment and assist the international clientele (Autoglass

Company).

Role of Strategy of Autoglass

The prime task in strategic administration is commonly the compilation and dissemination of

the vision and the procedure affirmation. This summarizes, in essence, the raison d'etre of an

organization (Ivanauskiene, N, & Auruskeviciene, V., 2009). Autoglass has mixed their

strategies in a way that the policies maintain specific time period (Autoglass Company).

1.2 Review the vital issues involved in Strategic planning in Autoglass

In order plan strategies and implement strategies there are some vital issues that need to be

considered. As this commerce is new and an attractive one competition will rise in the future.

So Autoglass might face affray in beside future.

Autoglass is focusing on the customer’s fondness and customer service. They have reached

the largest approval grade in the service commerce just by restoring the windscreen in a cost

effective way. Autoglass should be clientele oriented and try to boost their service portfolio.

Based on the case, Ansoff’s model can be used to analyze the competitive advantages

(Kotler, P., 2000).

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Autoglass’s Competitive Benefits

Autoglass provides the premium service of replacing windscreens. They are providing

several services to customers regarding wind screens and grabbing a fair share of the market

(Autoglass Company). Autoglass can use the Ansoff’s model to analyze their competitive

advantages. The Ansoff’s model is given below:

Autoglass are providing services to more than one million customers every year. Ansoff’s

model of Growth suggests four different sets of alternatives (Armstrong, G., & Kotler, P.,

2006). Based on the scenario and research we learned that Autoglass is expanding its market.

So based on the scenario, Autoglass can serve customers with their existing products and also

can introduce a new mean of services (Automotive Industry, 2013). These four alternative

strategies face different types of risks. The strategies are:

1. Market penetration: By following this method Autoglass can surplus its current

market segment by selling and attracting more of their products. If it is done

extensively Autoglass might lose focus on their main objective.

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New ProductExisting Product

Existing

Mark

New Market

Figure: Ansoff’s Model

Market Development

Product DevelopmentMarket Penetration

Diversification

2. Product development: Autoglass can introduce to the market a new product that

would complement the existing products. But this strategy has a severe drawback. If

the customers failed to interpret the new product then it would result in losing

revenue.

3. Market development: Autoglass is the market leader in this windshield repairing

industry. So they can brand Autoglass more extensively and try to grab new

customers to increase its market segment.

4. Diversification: Autoglass can create a portfolio that will spread the risks and reduce

the loss of revenue.

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. Autoglass

Company is in top of its operating industry so they can increase the growth rate in a steady

manner by satisfying both existing as well as new customers and increase its market segment.

Autoglass can set a five years growth strategy plan based on the Ansoff’s Growth Model to

achieve the target.

Definition of Top-Down and Bottom-Up

Top-Down: A top-down approach is essentially the breaking down of a system to gain insight

into its compositional sub-systems (Wheelen & Hunger, T.L. &J.D., 2013). Autoglass is

applying this approach to their development and they are successful in using this approach.

Informal Planning: Informal planning is the method where the supervisor or leader of a team

evolves a plan without any accepted structure and rigid structures (Grant M.R. 2010).

Managers use this approach where it is not absolutely vital to form any formal structure of

designing or the timeline for planning.

Bottom-Up: A bottom-up approach is the piecing together of systems to give rise to more

complex systems, thus making the original systems sub-systems of the emergent system

(Wheelen & Hunger, T.L. & J.D., 2013). Autoglass is using this approach in their service

development to satisfy the customers and they are pretty successful in using this approach.

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Behavioral Approach for Autoglass:

Autoglass should approach in the Top-Down procedure in alignment to capitalize their assets

and to handle the affray in the future. Autoglass is a growing business in the service industry

and they need to arrive up with some developments for their merchandise and market so that

they might a diversified market for the customers.

1.3 Explain minimum three planning technique for Autoglass

In order to grow in the industry Autoglass can use three techniques, and they are:

1. BCG Growth Share Matrix

Autoglass maintain a harmony in the product portfolio (Kotler, P., 2000). It will also

help Autoglass to determine when and where they are going invest. They will decide

whether they will invest in a new product or extract all the earnings from the product.

Autoglass will face 4 types of consequences in the market by placing their products in BCG

growth share matrix. And they are:

1. High Growth and High Market Share (STARS)

This strategy requires high amount of cash and the management needs to

determine the flow of cash in the business.

The star businesses are prior to become cash cows in the future and

management can harvest from the business venture.

2. Low Growth but High Market Share (CASH COWS)

From the matrix, we can see the product which has low growth but high

market share is the steady business and generates steady revenue.

3. Low Growth and Low Market Share (DOGS)

When the products starts to lose its market share and growth rates decline then

the product falls into dogs category. The organizations should divest from the

business at this moment.

Management should watch over any unnecessary expenses.

4. High Growth but Low Market Share (QUESTION MARKS)

The products which are newly introduced fall in this category and have the

potentiality to maximize growth.

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The product has also the risk of being a dog product if it does not turn in any

revenue.

2. Strategic Position & Action Evaluation Matrix (SPACE)

Autoglass can use the SPACE matrix to determine the market demand and

requirements to operate and make strategies to expand the market (Armstrong, G., &

Kotler, P., 2006). SPACE matrix has four different quadrants which explain the

organizations position and the course of actions (Kotler, P., 2000). Autoglass is the

market leader. So, they can use the aggressive strategies to capture the market and it

will also help in determining the SWOT of the organizations.

3. Profit Impact of Market Strategy (PIMS)

PIMS is a kind of database that gives solid information and evidence to support the

policies that are undertaken to gain competitive advantages. Autoglass might sustain a

clientele service database in alignment to investigate their values and planning

process so they can keep pathway of their achievement and implementation of the

strategies.

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Figure: BCG Matrix

Task 2

2.1 Produce an organizational Audit for Autoglass

SWOT Analysis

Strengths

Autoglass provides high quality products at low cost.

The safety features in the product are high.

Windshields provide visual clarity.

Weaknesses

Autoglass promotes less of their brand.

Lack of advertisement is present.

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Strengths

Visual Clarity Low cost Safety

Opportunities

New Product Emerging economy

Weaknesses

Promotion Advertisement

Threats

Geographic Location Government Policy

SWOT

Figure: SWOT Analysis

Opportunities

Windshield replacing or repairing is present in emerging economy.

Development of new products creates new opportunities.

Threats

Operation in unnecessary locations is loss of capital.

Government policies shape the business environment.

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

approaches

PESTLE analysis is conducted to determine the operation strategy in the industry and to learn

the attractiveness of the industry of operation (Armstrong, G., & Kotler, P., 2006). There are

several factors that need to be accounted for in order to operate in the industry (Automotive

Industry, 2013). Organizations can maximize opportunities and minimize threats by

conducting PESTLE analysis.

PESTLE analysis

Political

Political climate determines the attractiveness of the business.

Government stability is important because it may affect future decisions.

Organizations need to pay taxes and taxation policies affect the industry.

Economical

Purchasing capacity of the people determines cost and level of service in the industry.

The need for replacing windshield is represented by the level of economical activity.

Socio-cultural

Lifestyle and preferences shapes an industry.

The decision to own an automobile and need to replace windshield depends on the

social norm.

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Technological

Technology relating the designs.

Technology of windshield manufacture.

Legal

Law regarding safety measures is important.

Employment and consumer law is highly emphasized.

Environmental

Some things are beyond control of the organizations such as climate and climate

change, weather.

Porter’s five forces analysis helps the management to determine and understand the overall

context of the industry (Kotler, P., 2000).

Porter’s five forces are:

1. The threat of new entrants

Economies of Scale: This is generally a low threat and it measures the scale of

economy in the production.

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.

Access: Buyers access in the industry is now a day’s much easier than before.

4. The amount of bargaining power suppliers have

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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 refers to the stakeholders who influence the strategies and also has high

interest.

2. Latent’s: It refers to the stakeholders who influence strategies but has low interest.

3. Apathetic: It refers to the Stakeholders who has low interest and seldom influences

the strategies.

4. Defenders: It refers to the stakeholders who have low influence in the strategy

making but high interest.

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High Influence High Interest (Promoters)

High Influence Low Interest (Latent’s)

Low Influence Low Interest (Apathetic)

Low Influence High Interest (Defenders)

Figure: Stakeholders’ Grid

Task 3

3.1Analyze possible alternatives strategies relating to substantive growth,

limited growth and retrenchment

Entry Strategy

Merger: Merger is the process by which two businesses gets united and turns into one entity.

The beginning of Autoglass was through such merger.

Acquisition: This is the method where one particular company buys another whole business

and sets up itself as the proprietor.

Franchising: It is the method, through which a business profits from the right to use another

company’s trademark, enterprise form, procedures where the franchisor gives the right to the

franchisee. For acquiring market share abroad, Autoglass might use this approach by

assigning franchises in distinct locations.

Organic Growth: When an enterprise association accomplishes development over its own

enterprise which is as identical as the starting of the organization, it is called organic

development. It omits any development that is profited.

Strategic Alliance: This is the method where two or more companies joins together to share

each other’s assets to meet those objectives. This approach is really a notion that stays

between the notion of organic development and amalgamation or acquisition.

Licensing: It is the method through which a mother company (licensor) permits another

business (licensee) to use its trademark and sell the products or services on the cornerstone of

affirmations on several periods. The periods include the authorizing fee that has to be paid to

the licensor.

Substantive Growth

Horizontal Integration: In level integration a business types or acquires output facility of

associated or complementary goods (Melody, Y. & Kevin, H., 2000). Occasionally a

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company can purchase one of its competitors. Autoglass might pattern such integration by

connecting with other output that is related to its living products.

Vertical Integration: In vertical integration a company connections with the businesses or

partners of the provide string of links and in many cases all the partners of the string of links

stay under a single owner (Melody, Y. & Kevin, H., 2000). Autoglass might enlist into

vertical integration by linking with the suppliers and distributors.

Related Diversification: When a business elaborates its business with some diversification

in the living product line (Arazy, O, & Gellatly, I., 2012). The innovative productions are

alike to the existing products.

Unrelated Diversification: It is the method when a business enlists into diversification by

introducing new goods and services that doesn’t agree with the living product line (Arazy, O,

& Gellatly, I., 2012). It can be unrelated diversification if Autoglass begins trading home

window crystal or beauty mirrors.

Limited Growth

Product Development: It means evolving new products that do not exist currently and

therefore attracting customers to purchase more diversity of products or services.

Market Development: It means targeting new clientele segments and appealing the

customers of that segment. It assists to increase the market share by adding new piece of

customers. It is possible for Autoglass to develop the market by geographically increasing the

enterprise and coming to the customers.

Market Penetration: It means penetrating the comparable market by offering comparable

prices. This approach is used to attack the competitors by profiting their customers. It is often

utilized to gain sales growth.

Innovation: It means seeking out a solely new need of the customers in the market and

innovating a new merchandise or service to rendezvous that need.

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Disinvestment:

Retrenchment: This strategy is often utilized in order to slash costs with the aim of

becoming a more economic steady business. A scheme utilized by companies to reduce the

diversity or the general size of the procedures of the business.

Turn around: Turnaround administration involves administration reconsider, activity based

costing, origin malfunction determinants investigation, and SWOT investigation to determine

why the business is falling short. Turnaround is a method dedicated to corporate renewal. It

utilizes analysis and planning to save worried companies and returns them to solvency.

Liquidation: When an enterprise or firm is terminated or bankrupt, its assets are traded and

the advances pay creditors. If no alternate schemes comply with the organizations then it

needs to deal its assets and then pay up the shareholders and stakeholders. Any leftovers are

circulated to shareholders. Liquidating a firm is the last stage of the firm’s survival.

Divestment: The method of divestiture, it is made for either economic or communal goals.

Divestment is the converse of investment. It is the method of dragging out the assets in

operation and sells those to rendezvous the gap in the financial problems and in order to

liquidate the association divestment is necessary for any association.

Porter’s Generic Strategy

Michael Porter explained the general strategies for an organization to operate in the industry.

Companies use these strategies to gain competitive advantages (Kotler, P., 2000). The

strategies are:

a) Overall Cost Leadership

b) Differentiation

c) Focal Point

Overall Cost Leadership

Based on the case it can be inferred that Autoglass is following the cost leadership in the

industry and they are offering their services in the lowest cost possible (Armstrong, G., &

Kotler, P. 2006). It is helpful to attract more customers and enter in the new market.

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Differentiation

Cost leadership alone cannot help an organization to enjoy profit from the market.

Differentiation is necessary to bring in more profits and grabbing more customers

(Armstrong, G., & Kotler, P. 2006). The Autoglass is offering 24/7 customer services to

differentiate them from the others.

Focal Point

To improve business in the industry organizations needs to focus on a specific objective

(Armstrong, G., & Kotler, P., 2006). Autoglass is focusing on serving the customers and

satisfy them for their money worth. Autoglass has become the best windshield repairing or

replacing service providers.

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3.2 Select an appropriate future strategy for Autoglass

Autoglass should be following the upright growth scheme to grow their business. They can

proceed with coalition with automakers to arrest the new market segment. Coalition with

related associations will enable Autoglass to put more aim on the customer’s preference and

can evolve new product class to fulfill the desires of the customers. Autoglass is in a strong

place and they might be able to go with the coalition with new organizations. Because this

scheme is befitting for the organizations growth and their centre capabilities agree with the

scheme.

In alignment to elaborate the market segment Autoglass Company needs new schemes to

flourish the market. So considering future scheme they can investigate their market need and

arrive up with some development of the new merchandise to diversify their services and grab

a new market segment.

Autoglass should certainly reconsider the response of the customers so that they might

understand what the customers are looking for and to what level of approval customer’s

desire. Only beginning new merchandise line and expanding the market will not alone help

the Autoglass business to expand in the market.

The Autoglass at present has a 92% satisfaction rate. But with expansion of the enterprise the

approval rate might fluctuate and Autoglass need to construct a timescale for the new goals

and elongation of the new services. Contemplating the place in the commerce, Autoglass can

provide a 5 quarters design that will be adequate for Autoglass to contend up with the affray

and sustain coalition with the automakers to elaborate the enterprise. Autoglass can standard

next 5 quarters to obey with schemes they have taken and fulfill the firm pledge to the

customers.

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Task 4

4.1 Compare the roles and responsibilities for strategy implementation of

Autoglass

Executing the policies within the organization is incredibly necessary and it carries a definite

significance for the organization’s welfare (Arazy, O, & Gellatly, I., 2012). Within the

implementation of the policies it indicates to the policies that are chosen and thought of

which will generate profit for the organization. Considering the tactics policies are well

formulated and tested to ascertain if those policies are unit suitable or not (Purchase

Behavior, 2013). Autoglass need to use in depth filtering procedures of the policies to grab

and retain the market share.

CEO of a company is in charge for turning the ideas into reality and creating a mark within

the business (Arazy, O, & Gellatly, I., 2012). To use economical and effective policies all the

teams within the organization are united in the least stages of the philosophy and plan of

action call which ends up in a very well coherent set up and also the diversification or

modification of the techniques are possible (Schultz, H.2006).

In order to attain the targeted market share specific targets are necessary. Communal

visualizations are well needed in indentifying and inspecting the hypotheses, bases of the

policies and propose actions (Ivanauskiene, N, & Auruskeviciene, V., 2009).

Autoglass administration has to work out the marketing and sales strategies to double-check

the greatest market share and sales. The sales group should be evolved in a way that can keep

up with the affray in the market. Productive advertisements in relevant localities might help

an allotment in this regard. The centre competencies should be clearly concentrated to appeal

the customers.

Managers ought to inspire and influence the workers to execute the policies that are

undertaken expeditiously and effectively. Satisfying the target, accomplishment can end in

employee satisfaction and coherence in job atmosphere.

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4.2 Evaluate resource requirements to implement a new strategy for

Autoglass

In order to assess the resources of Autoglass, the organization must select proper materials

and put them in the exact departments to provide the services. Autoglass has prioritized its

human resources as a result it became the best service provider of windscreens Autoglass

additionally has fleet pairing which needs man power additionally and that they square

measure cautious concerning their hands (Dessler, G., 2000). Therefore Autoglass spends a

lot in coaching and developing the abilities of the staff (Dessler, G., 2000).

In thought of materials and time allocation Autoglass is that the pioneer in the business as a

result of their treatment the most effective materials to confirm the sturdiness and safety of

the customers and conjointly maintaining time in delivering the service (Autoglass

Company).

In the given situation the Autoglass Company is economical in their resources and efficient

in evaluating the resources to produce the most effective and satisfying service.

4.3 Discuss targets and timescales for achievement for Autoglass to monitor

a given strategy

Benchmark outcomes:

Quarter 1 The business should come up with schemes and recognize the feasibility of the

schemes whether the schemes would be reflecting in the anticipated outcome.

They can take the response of the customers. There should be a normal

supervising by the line managers of the divisions.

Quarter 2 Autoglass will review the customer’s response and conclude on implementation

of the desired design to expand the enterprise. The line managers should be

responsible for assembling the feedbacks and acting in the direction of it.

Quarter 3 This time span is for accumulating data and take note on the applied schemes.

The administration should find out the gap between the anticipated conclusion

and genuine conclusion.

Quarter 4 Management should coordinate a teaching program to fill in the gap so that the

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workers can accomplish the association goal in yearned manner.

Quarter 5 The association will try to accomplish the yearned outcomes based on the

principles. If the administration fails to achieve the objectives, then they have to

start actions founded on information.

Conclusion

Autoglass has made the windscreen fixing or replacement simpler for the customers and

supplying services to the customers to their full approval. The Autoglass can grow to become

one of the best windscreen replacement organizations in the world.

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Table: Evaluation of the outcomes

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