AN ASSIGNMENT ON bUSINESS STRATEGY
Submitted By
Date:
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Business Strategy
Table of content
Content serial Content name Page no.Executive summary 3
Task 1
Content serial Content name Page no.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
Content serial Content name Page no.2.1 Produce an organizational
Audit for Autoglass10
2.2 Carry out an environmental audit for Autoglass using at
least two approaches
11
2.3 Explain the significance of stakeholders’ analysis in
relation to Autoglass
14
Task 3
Content serial Content name Page no.3.1 Analyze possible alternatives
strategies relating to substantive growth, limited growth and retrenchment
15
3.2 Select an appropriate future strategy for Autoglass
18
Task 4
Content serial Content name Page no.4.1 Compare the roles and 19
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responsibilities for strategy implementation of Autoglass
4.2 Evaluate resource requirements to implement a new strategy for Autoglass
20
4.3 Discuss targets and timescales for achievement for Autoglass
to monitor a given strategy
21
Content serial Content name Page no.Conclusion 22Reference 23
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Executive Summary:
Autoglass is acknowledged as the mortal union providing assort in the work business
scrutiny to the phytologist and different service providers. In the windshield pairing
manufacture Autoglass has shown a outstandingly large job in substantial the customers
and providing the unsurpassable windshield commutation or repairing assist. During a
summary in the industry 92% of the Autoglass customers were mitigated at their
assistance. Autoglass maintains a harmonic relationship between the customers and
employees because they anticipate that if employees are mitigated working in Autoglass
then they gift aid the customers many expeditiously and it gift c
providing services in an {efficient way. Autoglass is now the industry leader in the
industry and they are healthy in a becalm stride. They now hold 500 branches serving in
the Collection. Supported on the granted scenario and exploit through the Autoglass it can
be inferred that Autoglass is in a beardown function in the screen replacing business and
gift be healthy to grappling later challenges in a efficient and powerful mode.
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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
Mission of the system is based on the verbalize situation and action guidelines according
which the employees are to fulfill to discover the objectives of the activity (Kotler, P.,
2000). The water emphasis of the Autoglass Organization is on the client's spirit and
providing the champion windscreen services to the customers (AutoglassCompany). By
fulfilling the missions, the vision of an organization takes concretize and the neutral
becomes clearer.
AutoglassCompanyVision:
Vision of the company is the succeeding intentions and reference that an organizations try
to succeed by defining the missions and mounting goals and objectives to attain (Kotler,
P., 2000). The modality of The Autoglass Organization is to nurture the customers
efficiently and cater the maximal train of satisfaction to the customers (Autoglass Set).
The sensation of delivery customers with integrity present further them to raise and set
boundaries in the manufacture.
AutoglassCore Competency:
A core competency is a idea of theory that specifies the factors that a commercialism sees
as focal to the way the friendship or its employees convert (Parceling M. R., 2010). Core
ability defines the core computation of an orderliness that make the enterprise missions
and visions of that peculiar organization (Kotler, P., 2000). In housing of Autoglass the
core ability is that they can supersede or amend any kindly of confused or damaged
screen of any work (Autoglass Indispensable Concerns Interested in Strategic thinking.
Strategic Intent:
The concept of strategic intent implies that there is a general view on where the company
should be going rather than a definite statement of an expected outcome and this means
that there should be plenty of flexibility within the statement to allow for staff initiative,
team contribution and adaptation in light of changed circumstances (Ivanauskiene, N,
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&Auruskeviciene, V., 2009). The strategic intent of Autoglass is to see itself as the
market leader always. They are doing all the activities to remain leader.
Role of Strategy of Autoglass
The primary task in strategic administration is normally the compilation and
dissemination of the vision and the operation declaration. This outlines, in essence, the
raison d'etre of an organization (Ivanauskiene, N, & Auruskeviciene, V., 2009). Autoglass
has compiled their roles in strategy making in a way that the strategies maintain a specific
time period in the execution (Autoglass Company).
Objective and goals of Autoglass
The main objective of Autoglass is to satisfy their customer by repairing or replacing
broken windscreen of any vehicle. The goal of Autoglass is to make their business grow
and serve the global customer (Autoglass Company). They are expanding their business
by winning the hearts of the customers.
Strategic Architecture of Autoglass
The strategic architecture of any organization is the process of answering the five
fundamental questions of making the strategy. The questions are compilation of “What”,
“What Else”, “What More”, “What Now”, “How” (Grant M. R., 2010). By answering
these questions Autoglass shapes their strategic structures of the company.
1.2 Review the vital issues involved in Strategic planning in Autoglass
In status organization strategies and obligate strategies there are few alive issue that
pauperization to be advised. Supported on the casing, Ansoff's work can be victimized to
analyze the capitalistic advantages (Kotler, P., 2000).
Autoglass is putting their focus on the customer’s preference and customer service. They
have reached the highest satisfaction level in the service industry just by replacing the
windscreen in a cost effective way. Autoglass should be customer oriented and try to
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increase their service portfolio in order to meet with the competition. Given the situation
in the case we can analysis the competitive advantages of Autoglass
Autoglass'sCompetitive Benefits
Autoglass provides the reward copulate of substitution windscreens. They are providing
individual services to customers regarding rotation screens and grabbing a antimonopoly
portion of the activity (Autoglass Set). As Auto glass is healthy day by day they can use
the Ansoff's pattern to analyze their agonistic advantages. The Ansoff's simulate is
donated below:
Autoglass are providing services to statesman than one cardinal customers having
problem with their windshields every year. Ansoff's helper of Maturation suggests digit
assorted sets of alternatives (Cornetist, G., &Kotler, P., 2006). Supported on the scenario
and investigate we scholarly that Autoglass is expanding its marketplace gradually and
has the potentiality to cater solon than they are doing now. So supported on the scenario,
Autoglass can couple customers with their existing products and also can introduce a new
associate of services (Moving Business, 2013). This quarter deciding strategies and
tackling the diametric types of risks. The strategies are:
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Business Strategy
Market penetration: By masses this strategy Autoglass can overmuch its
actual marketplace separate by selling and attracting solon of their
products. If it is through extensively Autoglass power regress centering on
their primary oblique.
Product development:Autoglass can inform to the industry a new product
that would workforce the existing products. But this strategy has a stark
drawback. If the customers unsuccessful to repeat the new product then it
would ensue in losing income.
Market employment:Autoglass is the marketplace feature in this screen
repairing manufacture. So they can variety Autoglass solon extensively
and try to snatch new customers to gain its marketplace divide.
Diversification:Autoglass can make a portfolio that testament open the
risks and limit the exit of revenue.
Autoglass also should give precedence to the geographic location where they should
manipulate and specify the minimum requirements of the suppliers to get the calibre set.
Autoglass Accompany is in top of its operative manufacture so they can growth the
growing grade in a stabilize fashion by satisfying both existing as advantageously as new
customers and growth its industry portion. Autoglass can set a five age maturation
strategy design based on the Ansoff's Growing Modeling to attain the take.
Definition of Top-Down and Bottom-Up
Informal Planning: Informal planning is the process where the manager or leader of a
team develops a plan without any conventional structure and rigid frameworks (Grant
M.R. 2010). For certain instant situations managers use this approach where it is not
essential to form any formal structure of planning or the timeline for planning is not
enough. It is important to ensure short term objectives of the organization.
Top Down: A top-down act is essentially the breaking strike of a system to realize
sensibility into its compositional sub-systems (Wheelen& Drive, T.L. &J.D., 2013).
Autoglass is using this formulation in their quantity utilization and they are pretty roaring
in using this formulation.
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Business Strategy
Bottom-Up: A bottom-up timing is the piecing together of systems to spring appear to
many interlacing systems, thusly making the daring systems sub-systems of the aborning
grouping (Wheelen& Hungriness, T.L. & J.D., 2013). Autoglass is using this way in their
bringing exercise to fill the customers and they are pretty winning in using this
approaching.
1.3 Explain minimum three planning technique for Autoglass
The techniques that any organization needs to follow in the competitive industry. There
are three basic techniques that an organization can follow. Autoglass should follow one of
the strategies to flourish in the market and capture more customers
1. BCG Growth Share Matrix Autoglass can divide their products in such a manner where they can prioritize
their products and manage a synergy in the portfolio (Ivanauskiene, N, &
Auruskeviciene, V., 2009). This matrix shows the organization 4 types of
consequences that will be faced by an organization (Gudonaviciene, R,
&Rutelione, A., 2009). It also helps the organization to know when to invest in the
existing product, when to divest all earnings from the market segment and when to
focus on a new business venture.
Placing goods in the BCG growth share matrix Autoglass will face 4 types of
consequences in the market. And they are:
i. Stars: High Growth and High Market Share It requires a great quantity of cash for which managers need to take
decisions from which the cash will be generated and used. If managers can make the business profitable and maintain a steady market
share then it will result in the cash cow and the Company can harvest cash from the business.
ii. Cash Cows: Low Growth but High Market Share The product will attain low growth in the market but it will have the
highest market share from which the organization will turn in revenues and maintain income.
iii. Dogs: Low Growth and Low Market Share The time when the product gradually stops to generate any kind of
revenue, the organization should gradually divest from the project to start another.
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The organization should also be careful of incurring any unnecessary costs.
iv. Question Marks: High Growth but Low Market Share It indicates to the products that are newly introduced in the market and will
gradually earn mass acceptance. It also has the risk of making a Dog product. If the market share is not
increased gradually then it would incur loss for the organization.
2. Strategic Position & Action Evaluation Matrix (SPACE) Autoglass can also use the SPACE planning technique to understand the market
requirements and operate in order to expand the operation. This matrix has four
quadrants indicating the positions of the business organization and how to react
accordingly (Ivanauskiene, N, & Auruskeviciene, V., 2009). In consideration to
Autoglass’s position in the market they can use aggressive strategy. It can also be
used as the base for SWOT analysis.
3. Profit Impact of Market Strategy (PIMS) It is a type of database which provides concrete evidence to support policies and
principles for gaining and sustaining competitive advantage (Melody, Y. & Kevin,
H., 2000). Autoglass might maintain a customer service database in order to
analyze their principles and planning process so they can keep track of their
success and implementation of the strategies.
Figure: BCG Matrix
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Task 2
2.1 Produce an Organizational Audit for Autoglass
SWOT Analysis
Strengths
Autoglass is providing a premium service at low cost. The safety features in the product are high. The replaced or repaired windscreen provides the high visual clarity The glasses replaced or repaired by Autoglass is capable of reducing further
damage.Weaknesses
Autoglass is reluctant in promoting the brand. Lack of advertisement is present in the Autoglass Company
Opportunities
Autoglass has the opportunity to increase the growth rate in the industry as fewer firms are providing such services.
It is highly present in the emerging economy and has a huge opportunity to grab the market.
As Autoglass is repairing and replacing the windscreen, they can also develop new product such as side view mirrors or rear view mirrors.
Threats
StrengthsLow costSafetyVisual ClarityAvoiding further damage
OpportunitiesIncreasing growth rateHigh presence in emerging economyNew Product
WeaknessesLess promotion of the brandLack of advertisement
ThreatsSuppliers CompetitionGeographic LocationGovernment Policy
S W O T
Figure: SWOT Analysis
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Suppliers’ competition is very high in the industry. It is difficult to determine the quality supplier.
Geographic location is a common threat to any business if it is not situated in the proper market.
The government policies play a vital role in shaping the business market.
2.2 Carry out an environmental audit for Autoglass using at least two
approaches
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Business Strategy
PESTLE psychotherapy is conducted to learn the process strategy in the industry and to
hear the attractiveness of the industry of process (Trumpeter, G., &Kotler, P., 2006). In
status to treat in an industry there are individual factors that needs to be accounted for
(Automotive Business, 2013). Organizations can increase opportunities and minify threats
by conducting Muller analysis.
PESTEL Analysis
Porter’s Five forces analysis helps the direction to find and understand the boilersuit
environment of the manufacture (Kotler, P., 2000).
Political climate in any country determines the attractiveness of the business. Government stability is important because it may affect the future decisions. Organizations need to pay taxes and taxation policies affect the industry.
Political
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
Economical
Lifestyle and preferences shapes an industry. The decision to own an automobile and need to replace windshield depends on the social norm.
Socio-cultural
Technology relating the designs. Technology of windshield manufacture.
Technological
Law regarding safety measures is important.Employment and consumer law is highly emphasized.
Legal
Some things are beyond control of the organizations such as weather, climate and climate change.
Environmental
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Porter’s five forces are:
2.3 Explain the significance of stakeholders’ analysis in relation to
Autoglass
The Stakeholders’ Grid:
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
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.
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1. The top right part refers to the stake holders who influences the strategies and promote the products.
2. The top left part refers to the stakeholder who influences strategies but they posses’ low interest in the organization.
3. The bottom right part refers to the stakeholders who have high interest but low influence in the organization.
4. The bottom left part refers to the stakeholders who have low influence and low interest in the organization.
The stakeholders are kept in four classifications so that each stakeholder has their specific
rights and duties in regard of the making the strategies for the organization which will be
implemented for the betterment of the organization. Autoglass has mapped the
stakeholders in the organization so that the stakeholders can perform their duty in regard
of the organization’s benefit.
Task 3
3.1 Analyze possible alternatives strategies relating to substantive
growth, limited growth and retrenchment
High InfluenceLow Interest
(Latents)
High Influence High Interest (Promoters)
Low Influence Low Interest (Apathetic)
Low Influence High Interest (Defenders)
Figure: Stakeholders’ Grid
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Market Entry Strategy
Substantive Growth
Organic GrowthWhen a business organization achieves growth over its own business which is as same as the beginning of the organization, it is called organic growth. It excludes any growth that is gained by getting into any other business or merger or acquisition
MergerMerger is the process by which two companies gets united and turns into one entity through legal consolidation. The beginning of Autoglass was through such merger
AcquisitionThis is the process where one particular company purchases another entire company and establishes itself as the owner. In this process 100% or near 100% ownership has to be bought
Strategic AllianceThis is the process where two or more companies agree upon a number of common objectives and share each other’s resources to meet those objectives. This approach is actually an idea that stays between the concept of organic growth and merger or acquisition
LicensingIt is the process through which a mother company (licensor) allows another company (licensee) to use its trademark and sell the products or services on the basis of agreements on several terms. The terms include the licensing fee that has to be paid to the licensor
FranchisingIt is the process, through which a company earns the right to use another company’s trademark, business model, operations where the franchisor gives the right to the franchisee. For acquiring market share abroad, Autoglass might use this approach by assigning franchises in different locations
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.
Limited Growth
Disinvestment:
Horizontal IntegrationIn horizontal integration a company forms or acquires production facility of related or complementary products (Melody, Y. & Kevin, H., 2000). Sometimes it may also happen that a company purchases one of its competitors and form integration. Autoglass might form such integration by linking with other production that are related to its existing products
Vertical IntegrationIn vertical integration a company links with the companies or partners of the supply chain and in many cases all the partners of the chain stay under a single owner (Melody, Y. & Kevin, H., 2000). Autoglass might engage into vertical integration by linking with the suppliers and distributors
Related Diversification
When a company expands its business with some diversification in the existing product line (Arazy, O, & Gellatly, I., 2012). The new productions are similar to the existing products
Unrelated Diversification
It is the process when a company engages into diversification by introducing new products and services that doesn’t match with the existing product line (Arazy, O, & Gellatly, I., 2012). It can be unrelated diversification if Autoglass starts selling home window glasses or beauty mirrors
Market PenetrationIt means penetrating the competitive market by offering competitive price against the price of the competitors. This approach is used to instantly attack the competitors by gaining their customers. It is often used to gain sales growth
Market DevelopmentIt means targeting new customer segments and attracting the non-buying customers of that segment. It helps to increase the market share by adding new portion of customers. It is possible for Autoglass to develop the market by geographically expanding the business and reaching the customers
Product DevelopmentIt means developing new products that do not exist currently and thus attracting customers to buy more varieties of products or services
InnovationIt means searching out an entirely new need of the customers in the market and innovating a new product or service to meet that need. Autoglass might try to sort out such need in the market and introduce an innovated product or service
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Porter’s Generic Strategy
Michel Porter explained the popular strategies for anmethodology to control in the
manufacture. Companies use these strategies to make combative advantages (Kotler, P.,
2000). The strategies are:
a) Overall Cost Leadership
Based on the example it can be inferred that Autoglass is following the toll body in the
industry and they are message their services in the worst expenditure getable (Cosmonaut,
G., &Kotler, P. 2006). It is assistive to pull author customers and begin in the new mart.
b) Differentiation
Retrenchment
A strategy used by corporations to reduce the diversity or the overall size of the operations of the company. This strategy is often used in order to cut expenses with the goal of becoming a more financial stable business
Turn around
Turnaround management is a process dedicated to corporate renewal. It uses analysis and planning to save troubled companies and returns them to solvency. Turnaround management involves management review, activity based costing, root failure causes analysis, and SWOT analysis to determine why the company is failing. In order to make a comeback in the industry organizations need to find out the root of the problems and based on those problems they need to make up new strategies and policies to overcome those problems
Liquidation
When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are distributed to shareholders. Liquidating a firm is the last stage of the firm’s survival. If no alternative strategies comply with the organizations then it needs to sell its assets and then pay up the shareholders and stakeholders
Divestment
The process of selling an asset. Also known as divestiture, it is made for either financial or social goals. Divestment is the opposite of investment. It is the process of pulling out the assets in operation and sells those to meet the gap in the financial problems and in order to liquidate the organization divestment is necessary for any organization
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Outlay leaders exclusive cannot help an system to enjoy profit from the market.
Differentiation is essential to alter in much profits and grabbing more customers
(Trumpeter, G., &Kotler, P. 2006). The Autoglass is offering 24/7 customer services to
specialize them from the others.
c) Focal Point
To turn activity in the business organizations needs to adapt on a circumstantial oblique
(Armstrong, G., &Kotler, P., 2006).Autoglass is absorption on serving the customers and
fit them for their money worth. Autoglass has prettify the superior screen repairing or
exchange force providers.
3.2 Select an appropriate future strategy for Autoglass
Considering future strategy Autoglass can analyze their market need and come up with
some development of the new product to diversify their services and capture a new
market segment.In order to expand the market segment they need new strategies and new
products which can be helpful for them to thrive the market. So Autoglass should be
following the vertical growth strategy to grow their business. They can go with alliance
with automakers to capture the new market segment. Autoglass is in a strong position and
they might be able to go with the alliance with new organizations. Alliance with related
organizations will enable Autoglass to put more focus on the customer’s preference and
can develop new product category to fulfill the needs of the customers.Because this
strategy is appropriate for the organizations growth and their core capabilities match with
the strategy.
Only starting new product line and expanding the market will not alone help the
Autoglass Company to expand in the market. Autoglass should constantly review the
feedback of the customers so that they might know what the customers are looking for
and to what level of satisfaction customers want. Autoglass management needs to define
the roles and responsibilities to the employees so that they can provide the highest level
of satisfaction to the customers.
Considering the position in the industry, Autoglass can provide a 5 quarters plan that will
be sufficient for Autoglass to cope up with the competition and maintain alliance with the
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Business Strategy
automakers to expand the business. Autoglass can benchmark next 5 quarters to comply
with strategies they have taken and fulfill the commitment to the customers.The
Autoglass is at present have a 92% satisfaction rate among the customers. But with
expansion of the business the satisfaction rate might fluctuate and Autoglass need to build
a timescale for the new goals and extension of the new services.
Task 4
4.1 Compare the roles and responsibilities for strategy implementation
of Autoglass
Executing the policies within the methodology is incredibly obligatory and it carries a
distinct meaning for the organization's goodness (Arazy, O, &Gellatly, I., 2012). Within
the exploit of the policies it indicates to the policies that object chosen and thought of to
get acquire for the methodology. Considering the tactics policies are symptomless
formulated and reliable to ascertain if those policies are organization eligible or not
(Acquire Behavior, 2013). If the policies break to harmonize useful success then it's
turned trailing and thought of as bootless one. Autoglass necessary to use in depth
filtering procedures of the policies to snap and continue the marketplace apportion.
CEO of company is in propellant for motion the ideas into experience and creating a cue
within the business (Arazy, O, &Gellatly, I., 2012). To use efficient and strong policies
all the teams within the structure are one in the lowest stages of the belief and plan of
proceeding telephony which ends up in a very compartment ordered set up and also the
diversification or change of the techniques are assert able (Schultz, H.2006).
In order to attain the targeted activity share unobstructed and true statements are
indispensable. Communal visualizations are advantageously needful in indentifying and
inspecting the hypotheses, bases of the policies and take actions (Ivanauskiene, N,
&Auruskeviciene, V., 2009).
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Business Strategy
Managers ought to get and persuade the workers to effect the policies that are undertaken
expeditiously and effectively. Satisfying the spot, acquirement can end in employee spirit
and link in job ambience.
4.2 Evaluate resource requirements to implement a new strategy for
Autoglass
In tell to set the resources of Autoglass, the administration staleness superior prudish
materials and put them in the verbatim departments to engage the services. Autoglass has
prioritized its weak resources as a finish it became the prizewinning couple
businessperson of windscreens Autoglass additionally has fleet pairing which needs man
state additionally and that they quadrate instrument unadventurous concerning their
guardianship (Dessler, G., 2000). Hence Autoglass spends a lot in employment and
developing the abilities of the staff (Dessler, G., 2000).
In mentation of materials and instant part Autoglass is that the mastermind in the job as a
ensue of their discourse the most trenchant materials to reassert the sturdiness and country
of the customers and conjointly maintaining quantify in delivering the pairing (Autoglass
Consort).
In the specified situation the Autoglass Accompany is system in their resources and
efficient in evaluating the resources to make the most impelling and wholesome
conjugation. The quantity has also the try of state a dog set if it does not activity in any
receipts.
4.3 Discuss targets and timescales for achievement for Autoglass to
monitor a given strategy:
Evaluation of the benchmark outcomes:
Quarter 1
Company need to bring up with the new strategies and look for the feasibility of the new strategies whether the strategies would show in the desired outcome. They could take the response of the customers and
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Business Strategy
determine what else the customers are looking for in case of the windscreen repairing and replacing service. There have to be weekly and monthly monitory working by the managers of the brunch.
Quarter 2
During the other period Autoglass need to review their customer’s feedback as well as they need to implement the desired strategies to expand their business. The managers are responsible for collecting those feedbacks and take actions towards it.
Quarter 3
This is the quarter to gather information and collects research notes on the executed strategies. The management has to find out gaps between the estimated outcomes in response with the actual outcome. The GAP may occur because of the lack of coordination or immaturity of the employees as well as the managers.
Quarter 4
Management is bound to organize more training programs to fill up the gap. Thus the employees are able to achieve the organizational goal by the desired manner.
Quarter 5 Through this quarter the company may achieve the expected results based on
the strategy making and the implementation method. If management fails in achieving their objectives through the decided strategies, then they could initiate new actions based on information like training methods of the employees or rapid providing supporting hands to them.
Table: Evaluation of the outcomes
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Conclusion
Autoglass has made the windscreen repairing or replacement easier for the customers and
providing services to the customers to their full satisfaction. The Autoglass Company has
the potential to grow and become one of the best windscreen replacement organizations in
the world. But in order to do that they need to re-organize their operations and follow the
prescribed path.
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