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An Assignment on Business Strategy
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Executive summary
The journey begins in 1984 by the merging of two companies named Windshields and Auto
glass. From the beginning they are promised to satisfy their customer with quality service and
products. 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 main purpose of this report is the strategy that has been
adapted by the Auto Glass. Depending on several business strategy theories, some suggestions
and arrangements have been shaped for the company.
This work has surely helped to better understand the tactics and visionary strategies of Auto
glass and thereby has been turned into an effective learning source of business strategies.
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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..............5
Task 2...............................................................................................................................................8
2.1 PRODUCE AN ORGANIZATIONAL AUDIT FOR AUTOGLASS..................................8
2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR AUTOGLASS USING AT LEAST TWO APPROACHES..................................................................................................................9
2.3 EXPLAIN THE SIGNIFICANCE OF STAKEHOLDERS’ ANALYSIS IN RELATION TO AUTOGLASS......................................................................................................................10
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
Tack-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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Task-11.1 EXPLAIN THE ROLE OF STRATEGY, MISSION, VISIONS,
OBJECTIVE, GOALS AND CORE COMPETENCIES OF
AUTOGLASS
Mission: Making their customer more satisfied and loyal to the company is the mission of
the company. (Arazy, O, &Gellatly, I., 2012) For ensuring this mission they have
provided best services to the customers. Their mission itself drives them towards the
goal.
Vision: the vision of the company is to serve the customers in such a way that would
make them more satisfied which results into continuous development for the company
(Arazy, O, &Gellatly, I., 2012). A current statistics shows that Auto glass already hold
around 92% customer satisfactions in rating (Autoglass Company).
Core Competencies: Core competency is the basic of every organization. All kind of
broken glasses is replaced or repaired this is the core competency of Autoglass (Arazy, O,
& Gellatly, I., 2012).
Strategic Intent: The strategic intent of Autoglass is to glimpse itself as the market leader
wholeheartedly. the notion of strategic intent suggests that there is a general outlook on
whereas the enterprise should to be going rather than a unquestionable affirmation of aide
in Nursing anticipated deduction and this suggests that there should to be a lot of
flexibility in the firm to allow for workers start, cluster facilitate and adaptation in light-
weight of changed attenuating components (Hoffman, K. Douglas, Scott W. Kelley, and
Holly M. Rotalsky.2009). They're doing all the undertakings to stay foremost.
Role of Strategy of Autoglass: Autoglass has assembled their functions in theme making
in an exceedingly approach that the concepts sustain an unquestionable time span
concentrated the execution. The foremost task in strategic administration is generally the
adding and cutting of the illusion and so the procedure is granted. This summarizes, in
essence, the comprehending of a company.
Objective and goals of Autoglass: The aim of Autoglass is to pattern their enterprise
augment and help the worldwide persons (Autoglass Company).The foremost aim of
Autoglass is to convince their purchaser by fixing or refurbishing broken windshield of
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any vehicle. They are expanding their enterprise by victorious the hearts of the
purchasers.
1.2 REVIEW THE VITAL ISSUES INVOLVED IN STRATEGIC
PLANNING IN AUTOGLASS
Ansoff’s Growth Matrix will easily help us to analyze the strategic planning of Auto glass. There
are some important issues in strategic management planning for the company that can easily be
identified and executed accordingly (Ivanauskiene, N, & Auruskeviciene, V 2009).
Autoglass is putting their aim on the customer’s fondness and clientele service. They have come
to the highest approval grade in the service industry just by restoring the windscreen in a cost
productive way. Autoglass should be customer oriented and try to increase their service portfolio
in alignment to rendezvous with the competition. AutoGlass Company mainly used the Ansoff’s
Growth Matrix which includes the four different marketing tools based on new and existing
products introduction (Armstrong, G., & Kotler, P., 2006). So the four tools are as follows:
Market Penetration: A market scheme herewith a company hunts for to recognize larger
dominance in the market during which they already are giving (Melody, Y. & Kevin, H.,
2000). This scheme normally focuses on apprehending a larger share of aide degree
living market. Throughout this part Autoglass will boost its market segments by business
a lot of their merchandise and appeal a lot of customers.
Product Development: The existing products are needed to be modified and new concepts
should be developed. Introducing new extra features products by Auto glass has certainly
grasped the attention of the customer.
Market Development: Expanding the existing market and selling more products to the
customer will enlarge the market share. This could be another strategy adopted by Auto
glass.
Diversification: The Company can introduce a whole new type of product unlike the
existing one and increase the growth by attracting customers. For example, Auto glass
might start selling glass cleaning materials. This is more likely risk aversion strategy.
Top-Down and Bottom-Up Approach of Auto glass:
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Informal Planning: It’s important to command short allowance objectives of the association.
Casual conceiving is that the procedure while the supervisor or foremost of a assembly evolves
an inspiration with no one acknowledged structure and rigid associations (Grant M.R. 2010).
Certain as exploding instant things managers use this approach while it's conditionally important
to conceive any prescribed structure of close to up with or the timeline for conceiving isn't
ample.
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). Auto glass 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). Auto glass uses this approach to develop their customer
service.
Behavioral Approach for Autoglass: Autoglass should approach inside the top-down method in
alignment to capitalize their assets and to handle the affray inside the future. Autoglass could be
a growing enterprise inside the business and therefore the service they're activity won't be decent
for them to comprise on to the position interior the market. They have to reach up with some
developments for his or her merchandise and market in alignment that they could a wide-ranging
marketplace for the purchasers.
1.3 EXPLAIN MINIMUM THREE PLANNING TECHNIQUE FOR
AUTOGLASS
Three strategic techniques are suggested for Auto glass:
BCG Growth Share Model: The enactment of achievability and absolute ampules of a business
action through allegory its apples in the bazaar is the purpose of PIMS (Wheelen& Hunger, T.L.
&J.D., 2013). There are 6 above areas of absorption which analyzes the impact.
Placing goods in the BCG growth share matrix Autoglass will face 4 types of consequences in
the market.
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To plan for the future and to be able to adopt any type of changing situation is a must to the
business leaders today. Autoglass here can prepare some future strategies for themselves and
here is the suggestion for adopting the BCG Growth Share Model. As elaborated earlier, they can
divide their current services and products into the 4 types which are Stars, Cash Cows, Dogs and
Question Marks (Gómez, L, & Ballard, D., 2013). The products and services that they believe to
be the flag bearer as well as market leader should be tagged as Stars (Armstrong, G., &Kotler, P.,
2006). The profit earning products and services should be treated as the Cash Cows. The
products and services that are not being able to generate much profit or failing to grab a good
market share (because of matured market) should be tagged as Dogs. Lastly, the products and
services that are in a confusing position should be tagged as question marks. These ones are
normally unable to generate profit or market share but has the potential of doing so if taken care
off. For consistent growth in business as well as expanded portion of market share,
The categories are as follows:
1. Cash Cows: Products that is sold in high portion and have the larger market share.
2. Stars: The products that are market leaders in market share are called stars.
3. Dogs: The products which are low in sales in low growing market.
4. Question Marks: The products which have low market share in a high growth market but
still have the probability of being Stars.
Profit Impact of Market Strategy (PIMS): Establishing the feasibility and making positive
impact of a taken decision or business strategy by analyzing the impact in the market is the aim
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of PIMS (Ivanauskiene, N, & Auruskeviciene, V., 2009). The impact in six major areas. The
areas are as follows:
1. Competitive position
2. Production process facility
3. Type of the business environment
4. Budget allocation
5. Strategic works
6. Operating outcomes
Strategic Position and Action Evaluation Matrix (SPACE): Acting according to the demand
of the market is the main concern of SPACE matrix which helps to find out the current position
in the market and necessary steps can be taken to improve productivity (Ivanauskiene, N,
&Auruskeviciene, V., 2009). Autoglass is in a sturdy position within the market. So, they will
use the aggressive ways to capture the market and it'll conjointly facilitate in determinative the
SWOT of the organizations.
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Task 22.1 PRODUCE AN ORGANIZATIONAL AUDIT FOR AUTOGLASS
The business environment in which Autoglass operates can be analyzed or audited focusing on
the factors related to company strength, weakness and external opportunities and threat
(Wheelen& Hunger, T.L. &J.D., 2013). Therefore, we can formulate a SWOT Analysis:
Strengths of Autoglass
Finest service for low cost
Greater visual clarity of the glasses
Guarantee of high safety
Safeguard from repeated damage
Weaknesses of Autoglass
Indifferent about promotional activities
Absence of advertisement
Opportunities for Autoglass
Absence of equally strong competitor
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Weakness
Strength
Threat
Opportunity
Potentials for new products like side view mirrors
Threats for Autoglass
Difficulty to find quality supplier and low price for materials
Geographical position of the market
Governmental restrictions against business interest and Taxes
2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR AUTOGLASS
USING AT LEAST TWO APPROACHES
An organization can go through PESTLE analysis to analyze the surrounding situation of
business (Wheelen& Hunger, T.L. &J.D., 2013). The analysis is based on:
Political
In different countries and region situation is affected by varieties of political
decisions and influences.
Market condition is also gets affected by Constancy.
Taxation policies create huge impact on business.
Economical
The sales of any product in a selective area is influenced on the earnings ratio and
buying consumers of that region.
Density of economic activity is the another reason for which it gets influenced.
Socio-culture:
Industry is influenced by the lifestyle of the customer as well as their preferences.
Other influencing factors are socio culture, beliefs and norms etc.
Technological:
The design of the product is influenced by the development or lacking of
technology.
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Due to the evolution of technology in a certain area existing product is also
influenced by that.
Legal:
Some products are legally banned for some reason.
Consumer rights also the product bound to change its criteria.
Environment:
In comparison with regional change of weather, climate change etc business gets
influenced.
Porter’s 5 Forces:
Threat of new entrants.
Bargaining power of customer.
Bargaining power of supplier.
Threat of substitute product.
Intensity of rivalry
2.3 EXPLAIN THE SIGNIFICANCE OF STAKEHOLDERS’
ANALYSIS IN RELATION TO AUTOGLASS
Mainly Stakeholders are of four categories:
Latent: They don’t possess any interest about business by themselves but have the power
to influence the business.
Promoters: They have strong influence and high interest to the business. Therefore they
promote the product with which they are related.
Defenders: They have high interest to the business but have little influence on strategies.
Apathetic: They don’t possess any of the above mentioned skill. They neither have
interest nor any influence on market.
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Task 33.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES
RELATING TO SUBSTANTIVE GROWTH, LIMITED GROWTH
AND RETRENCHMENT
Market Strategy
Organic Growth: When an enterprise association accomplishes development over its own
enterprise that is as identical because the starting of the organization, it's known as organic
development. It omits any development that's profited by pacing into the other enterprise or
amalgamation or acquisition.
Merger: The start of Autoglass was through such amalgamation. Amalgamation is that the
procedure by two enterprises gets joined and turns into one entity through lawful consolidation.
Acquisition: This is the principle where one enterprise buys another enterprise and blends itself
because the proprietor. All through this method 100% or adjacent 100% ownership craves to be
reaching by.
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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
Strategic Alliance: This approach is wholeheartedly a notion that resides between the idea of
organic development and connecting or acquisition. This is the procedure while 2 or more
enterprises acquiesce upon kind of prevalent objectives and share every other’s assets to fulfill
those objectives.
Authorizing: It is the method through that a mother enterprise (licensor) enables another
enterprise (licensee) to use its persona and deal the services on the groundwork of affirmations
on numerous time spans. The time span adopts the authorizing ascribe that desires to be paid to
the licensor.
Franchising: To gain market share overseas, Autoglass may use this approach by dispersing
franchises in distinct positions. It is the way, through that an enterprise may earn from the correct
to use another company’s trademark, enterprise kind, methods while the franchisor provision the
correct to the franchisee.
Substantial Growth Strategy:
Horizontal Integration: In level integration a enterprise diversity or reaches by gaining facility
of affiliated or complementary merchandise. occasionally it's going to occur more often that a
company buys one amidst its competitors and pattern integration. Autoglass would likely pattern
such integration by connecting with alternate yield that's affiliated with its house merchandise.
Vertical Integration: Autoglass would expect employ into integration by connecting with the
suppliers and vendors. In integration a company supplements with the enterprises or partners of
the offer string of additions and in some cases all the partners of the string of attachments
comprise below one proprietor (Melody, Y. & Kevin, H., 2000).
Related Diversification: It is the method one time enterprise new workers into diversification
by inserting new merchandise and services that doesn’t accept as true the dwelling merchandise
(Arazy, O, & Gellatly, I., 2012). It will be unrelated diversification if Autoglass starts
mercantilism home window crystal or attractiveness mirrors.
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Unrelated Diversification: It will be unrelated diversification if Autoglass begins mercantilism
home window crystal or attractiveness reflectors. It is the method one time enterprise new
workers into diversification by injecting new merchandise and services that doesn’t accept as
factual 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. It’s routinely utilized to whole sales development.
This approach is promised to instantly strike the competitors by benefiting their customers.
Market Development: It’s potential for Autoglass to evolve the market by geographically
increasing the enterprise and coming back to the shoppers. It proposes that aspiring at new
person’s phases and appealing the non-buying customers of that segment. It assists to extend the
market share by supplementing new part of shoppers.
Product Development: It means that evolving new merchandise that do not live presently and
so appealing customers to get an allotment of diversity of merchandise or services.
Innovation: It suggests that seeking out a solely new would like of the shoppers central the
market and innovating replacement merchandise or service to rendezvous that require.
Disinvestment:
Retrenchment: A topic utilized by companies to scale back the variety or the final dimensions
of the methods of the business. This scheme is usually utilized so as to slash prices with the aim
of altering into an additional financial steady business.
Turn around: When a firm is terminated or bankrupted, 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 firm’s
survival.
Liquidation: When a firm is terminated or bankrupted, its assets are recorded and furthermore
the advances pay creditors. Any leftovers square assess circulated to shareholders. Liquidating a
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firm is that the last stage of the firm’s survival. If no alternate designs befit the associations then
it should deal its assets then ante up the shareholders and stakeholders.
Divestment: Divestment is that the converse of buying into. The method of departure of buying
into is divestment. Moreover cited to as divestiture, it's conceived for either financial or
communal goals. It the method of pulling out the assets operational and deals those to
rendezvous the gap inside the monetary issues and so as to liquidate the association divestment is
important for any association.
Michael Porter’s Generic Strategy:
There are 3 types of approaches for earning superiority among the competitors according to
Michael Porter (Armstrong, G., & Kotler, P., 2006). The approaches are:
1. Cost Leadership
2. Differentiation
3. Focus
3.2 SELECT AN APPROPRIATE FUTURE STRATEGY FOR
AUTOGLASS
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. contemplating the position in the
enterprise, Autoglass can supply a 5 quarters conceive that will be plentiful for Autoglass to
argue up with the affray and maintain coalition with the automakers to perplex the enterprise.
Autoglass can standard next 5 quarters to obey with notions they have taken and fulfill the firm
pledge to the customers.
In alignment to capture the market segment Autoglass enterprise desires new notions and new
constituents which can be cooperative for them to flourish the market. So contemplating future
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punishments they can investigate their market need and arrive to up with some development of
the new enterprise to diversify their services and apprehend a new market segment.
Autoglass should be following the upright integration conceive to augment their enterprise. They
can accelerate with coalition with automakers to arrest the new market segment. Autoglass is in a
strong location 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 customer’s fondness and can develop new merchandise class to
fulfill the craves of the customers
Only beginning new merchandise line and increasing the market share will not help the
Autoglass enterprise to perplex in the market solely. Autoglass should wholeheartedly reassess
the answer of the customers so that they might identify what the customers are looking for and to
what degree of acceptance customer’s wish for.
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Tack-44.1 COMPARE THE ROLES AND RESPONSIBILITIES FOR
STRATEGY IMPLEMENTATION OF AUTOGLASS
The general flourish of an association counts on how wisely and flawlessly the
conclusions are taken and how effectively the conclusions are executed (Arazy, O, &
Gellatly, I., 2012). As the current market situation, scheme and principle Execution is the
most vital matters of doing enterprise. The top level management not only present their
own job but also hold an accurate knowledge about how the other works are finished,
what is the current situation of the market and what is the benchmark of his business in
evaluation with market situation (Ivanauskiene, N, & Auruskeviciene, V., 2009). He need
to think about the coming future and its penalties and should be cognizant of that and be
made by designing and executing new strategies. For the leading company like
Autoglass, understanding the market position and assess likely consequences are very
important role for the organization.
Before finalizing those decisions he needs to be renowned about all the accurate facts of
the organization like information and balance statistics (Dessler, G., 2000). Fabricated or
incorrect data can lead his decision into a large-scale problem. It may ruin the overall
association growth. So he desires to be revised with all the relative facts of the market.
Autoglass administration should compute the trading and sales ways to double-check the
best market share and sales. The sales cluster should to be developed throughout a means
which will extend with the affray inside the market. Creative advertisements in applicable
localities would probably facilitate an allotment throughout this consider. The center
competencies should to be apparently concentrated to attractiveness the shoppers.
CEO or President or organizing controller that means the figure-head of any organization
plays a crucial role in the association (Dessler, G., 2000). He desires to justify the whole
possible incidence and accessible possibilities to execute schemes before formally give
them a green pointer. He has to maintain a harmony through the entire workplace. The
growth and profit of the association depends on his conclusions.
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4.2 EVALUATE RESOURCE REQUIREMENTS TO IMPLEMENT A
NEW STRATEGY FOR AUTOGLASS
For the proper production and supportive activities there is no alternative than allocation of
sufficient resources. The company manager need to know the exact process of getting the
resources and he also should know that how he is going to use those resources and what is the
best place to get the maximum production (Ivanauskiene, N, & Auruskeviciene, V., 2009). For
Autoglass as the resource they give the most priority to the human resource.
Their plan is like that they will use that human resource perfectly and with that help they will
make a difference between them and the other competitors. They made a plan to serve their
customer well to gather the psychological support and with that help they will lead in the market.
According to the plan they have 159 customer advisors serving 24/7 for the betterment of the
customer and for the impression of the organization (Arazy, O, & Gellatly, I., 2012). In addition
to their other strategies fleet service is noteworthy (Dessler, G., 2000). Autoglass also sanctions
additional and more than other brands budget for the betterment of their training and
improvement of quality services. Their recent customer satisfaction is 92%.
Moreover, to provide the best product of the market they ensure highest safety and durability.
Autogalss put way more allocation than other companies to have the best raw materials. So we
can calculate a thought that Autoglass is a successful company for maintaining the quality and
allocating sufficient raw materials.
4.3 DISCUSS TARGETS AND TIMESCALES FOR ACHIEVEMENT
FOR AUTOGLASS TO MONITOR A GIVEN STRATEGY
Evaluation of the benchmark outcomes:
Quarter 1 The enterprise should be bring up with the designs and find out the feasibility of
the designs whether the designs would contemplate in the foreseen conclusion.
They can take the repsonse of the customers and find out what else they are
looking for in the windscreen repairing service. There should be weekly and
monthly overseeing by the line managers of the divisions.
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Quarter 2 During the time span Autoglass should reassess the customer’s response and
request the yearned conceive to complicate the enterprise. The line managers
should be to blame for assembling the feedbacks and portraying in the direction
of it.
Quarter 3 This is the quarter of building up details and numbers and takes study note on
the administered schemes. The management should find out the gap between
the foreseen conclusion and genuine deduction. The GAP might occur because
of need of coordination or inefficiency of the workers 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 accomplish the yearend results founded
on the scheme making and the implementation procedure. If the management
fails to accomplish the objectives through the strategies, then they have to start
activities founded on data like teaching the workers or supplying support to
them.
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Table: Evaluation of the outcomes
Conclusion:
Autoglass have arrive to the market, to provide the best glass and service to their customers and
for that reason it’s no more an issue of troubled that anyone’s windshield is broken. The business
has acquired a reputation of trust and reliable for years by providing value merchandise and
services. Their out of fantasy grade of clientele service has pressed away other organizations and
they can’t even arrive to its close expanse. Their service and product is such good that they will
lead the market for coming numerous years ahead.
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industry, vol. 29, no. 3, pp. 87-116.
Armstrong, G., &Kotler, P., (2006). Marketing: An introduction (8th Ed.). New York: Prentice
Hall.
Autoglass Company. [ONLINE] Available at: http://www.autoglass.co.uk/Glass-repair-and-
replacement.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.
Wheelen& Hunger, T.L. &J.D., 2013.Strategic Management and Business Policy. 5th ed. Delhi:
Pearson.
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