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An assignment on

Business Strategy

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Date of Submission

EXECUTIVE SUMMARY

In this world of competitive market, Autoglass has a complete different field of operating its

business. To keep pace with the innovation or renovation, Autoglass maintains a standard

category of luxurious product in the world market.

Since there is an opportunity to replace or repair the product, Autoglass is well known to

nearly all. The assumption of purchasing Autoglass comes in mind of a person to think that

it will not only protect the house from wind but also be used to increase the beauty of the

room.

It is statistically found that 92 percent people who bought Autoglass are satisfied with the

service performance of Autoglass. From the beginning of the business to the current day

Autoglass has been able to fulfill the demand of the customers. That is why Autoglass

market is spread out all over the world. Besides, some people who are not appeased with the

service of other contemporary product, they tend to go for having Autoglass instead. By

performing these, Autoglass Company contributes to the economy as well.

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Table of Contents

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.............................................7

2.1 Produce an Organizational Audit for Autoglass..............................................................9

2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass..................12

3.1 Analyze possible alternatives strategies relating to substantive growth, limited growth and retrenchment.................................................................................................................13

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...............................................................................................................................20

Reference.................................................................................................................................21

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Task 1

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

competencies of Autoglass

Every business has a specific goal which they want to achieve. According to Kotler,

P.,2000, mission of a corporation is predicated on this state of affairs and action pointers

according that the staff unit are to perform to realize the objectives of the organization. The

Autoglass business tries to satisfy its customers and serve with the gentlest windscreen

services to the customers.

Vision of a company is that the future intentions associated in nursing the target that an

organizations attempt to win by process the missions and setting goals and objectives to get

done (Kotler, P., 2000). To achieve the sign of reliability Autoglass company serves the

people as much as possible. As it is known that, to grab a market first of all, the business

needs to be known to all. Then the quality question comes. Autoglass ensures the best

possible quality of its product. Ultimately, people start to have a belief on the company

which leads to set an objective for the future.

Autoglass always tries to replace or repair the product damaged by some unavoidable

circumstances. They believe this is the root cause of being competent in the eye of the

customers. Core competency refers to the core actions of a corporation that form the

business missions and visions of that individual organization (Kotler, P., 2000).

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, &

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.

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

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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).

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.

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

A business firm firstly sets the strategy then implements that strategy to reach the ultimate

destiny. There are some issues which can make problems for the organization’s strategic

planning.

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

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.

First of all, a company needs to find out what is their competitive advantage against the

competitors. There is a model given by Ansoff. In this model, it is shown that how a

company makes a full toll of its competitive advantage in the marketplace. Ansoff’s model

was like-

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Here, in this model, four different subjects are shown in market. Ansoff’s growth model

suggests four completely different sets of alternatives. The market area of Autoglass is being

widened day by day. Based on the situation and analysis we learned that Autoglass is

increasing its market step by step and has the capacity to serve more than they are doing

currently (Kotler, P., 2000).

1. Market penetration – A market strategy hereby an organization seeks to gain greater

dominance in a market in which it already has an offering (Melody, Y. & Kevin, H., 2000).

This strategy often focuses on capturing a larger share of an existing market. In this segment

Autoglass can increase its market segments by selling more of their products and attract

more customers.

2. Product development – In this strategy Autoglass can bring “side view mirror” a new

product to the existing market of windscreen to capture more customers.

3. Market development – This strategy refers to the attainment of new customer groups.

Autoglass can increase their market segments to capture new customers.

4. Diversification – This strategy is used to avert the risks by introducing new product in

new market to spread the risks associated with older one.

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Market Penetration Product Development

Market Development Diversification

Existing Product

Existing Product

New Product

New Product

Figure: Ansoff’s Model

Autoglass Company has huge opportunities in the market. They can increase the growth rate

very swiftly by satisfying the customer, acquiring and retaining them. They can set targets

for three years to attain more customers and develop new products that are suitable to the

market and building demand. During the targeted period the Autoglass Company should

prioritize its geographic area; where they will create a huge market and they should

determine the criteria for selecting an efficient supplier who will supply quality products.

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 approach is essentially the breaking down of a system to gain

insight into its compositional sub-systems (Grant M. R., 2010). Autoglass is successful in

using the approach in their product development.

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

(Grant M. R., 2010). Autoglass is successful in using this approach to provide the services

to the customers.

Behavioral Approach for Autoglass: Autoglass should approach in the Top-Down method in

order to capitalize their resources and to handle the competition in the future. Autoglass is a

growing company in the service industry and the service they are providing will not be

sufficient for them to hold on to the position in the market. They need to come up with

several developments for their product and market so that they might a diversified market

for the customers.

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1.3 Explain minimum three planning technique for Autoglass

There are three different techniques available to grow the market. Each technique shows

some criteria by which Autoglass can spread its business.

BCG Growth Share Matrix

Autoglass Company emphasizes on their production so that a well distinguishable

quality can be measured. According to Kotler, the features or service systems have to

be differentiated easily in the marketplace.

Placing goods in the BCG growth share matrix Autoglass will face 4 types of consequences

in the market. And they are:

1. 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.

2. 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.

3. 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.

The organization should also be careful of incurring any unnecessary costs.

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4. 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.

Strategic Position & Action Evaluation Matrix (SPACE)

The SPACE matrix is utilized to get known about the market demand of Autoglass.

With four different quadrants SPACE matrix assures the flow of action and keeps

market position in the right place.

in the market, Autoglass is in a robust Autoglass owns a robust spot. So, they will

use the every possible opportunity to capture the market

Profit Impact of Market Strategy (PIMS)

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PIMS acts as an assistant to bring information for the company. By getting that

information, the company can easily find out their competitive advantages. Then the

firm applies its strategy to go for making revenue for a particular market period.

Task 2

2.1 Produce an Organizational Audit for Autoglass

SWOT Analysis:

The company conducts a SWOT analysis. This is the main analysis by which company can

gain ground by determining their strength, weakness, opportunity, threat. A figure of SWOT

analysis is shown below-

Strengths

The safety features of the product

The average price is comparatively low

Best quality is ensured

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Strengths

1. Safety

2. Low Cost

3. quality

Opportunities

1. Emerging Economy

2. New Product

3. Growth Rate

Weaknesses

1. Less brand value

2. Advertisement

Threats

1. Geographic Location

2. Government Policy

SWOT

Figure: SWOT Analysis

Weaknesses

Brand value of Autoglass is relatively low

Vast advertisement cannot be given

Opportunities

By selling a great deal of product, company helps to emerge the economy.

Development of new products creates new opportunities.

Autoglass has all sorts of potentials to increase market growth rate in a shortest

period of time

Threats

There is a chance of losing the capital and also market share

Operation in unnecessary locations

Government policies shape the business environment.

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

approaches

There is an analysis component called PESTLE which helps to maximize opportunities and

minimize threats (Sway M. R., 2010). To implement the operational strategy onto the

market, the company analyzes PESTLE.

Organization tries to put all its methods while scanning the Autoglass. All types of possible

factors which can affect the operation are considered with importance. The PESTLE factors

includes political, economic, socio-cultural, technological, legal, and environmental factors.

Those are interpreted below-

Political

Government system

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Taxation policies of the government

Political stability

Political climate

Economical

Purchasing capacity

Economic stability

People’s interest to repair or replace windshield.

Inflation and deflation rate

Foreign currency rate

Remittance advantages of the country

Socio-cultural

Living standard of people

Social norm affects automobile purchasing decision.

Cultural aspects

Lifestyle of the people

Education

Income level

Expenditure mentality of the people

Technological

Technological innovation

Technology system of production

Technology based design

Legal

Market licensing law

Consumer law

Safety measuring law

Employment law

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Environmental

Geological position of a country

Weather, climate and climate change.

2.3 Explain the significance of stakeholders’ analysis in relation to

Autoglass

Stakeholders have a great importance in the operation. Stakeholders who influence the

activities or strategies of a business are promoters, latent’s, apathetic and defenders. A grid

of the stakeholders are given below-

Promoters influence the business activities and they also have the high interest on

the revenue.

Latent’s though affect the business strategy, they have a low interest.

Apathetic are those stakeholders who influence the strategy least and their interest as

well at the least side.

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Low Influence Low Interest (Apathetic)

High Influence Low Interest (Latten’s)

High Influence High

Interest (Promoters)

Figure: Stakeholders’ Grid

Defenders are those stakeholders who have low influence in the strategy but high

interest.

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.

Task 3

3.1 Analyze possible alternatives strategies relating to substantive growth,

limited growth and retrenchment

The initial strategy of Autoglass within the business of windscreen repairing was by merger.

The firm is gradually enhancing its market share and until these days Autoglass has 180

branches and 900 mobile fitting units in the United Kingdom.

Market Entry Strategy

Organic Growth: When 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.

Merger: Merger 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.

Acquisition: This 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 Alliance: This 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.

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Licensing: It 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.

Franchising: It 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.

Substantive growth

Horizontal Integration: In 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 Integration: In 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.

Limited growth

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Market Penetration: It 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 Development: It 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 Development: It means developing new products that do not exist currently and

thus attracting customers to buy more varieties of products or services.

Innovation: It 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.

Disinvestment

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.

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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.

Porter’s Generic Strategy

Michael Porter described a scheming that contains three general strategies which are used by

companies to gain the competitive advantage (Kotler, P. and Armstrong, G., 2006). The

generic strategies are:

1. Overall Cost Leadership

2. Differentiation

3. Focal Point

Overall Cost Leadership

According to the situation mentioned in the case, the Autoglass Company uses the cost

leadership approach to enter the market and it is helping to grab more customers than the

competitors (Kotler, P., 2000).

Differentiation

Only cost leadership cannot help an organization to flourish their business. The

organizations need to put differentiations (Kotler, P., 2000). The Autoglass Company

differentiated their service by introducing 24/7 customer advising operations and the fleet

servicing.

Focal Point

Autoglass is the market leader and best service provider in the UK market in repairing and

replacing windscreen. They are now focusing on the customer satisfaction and the services

they are providing (Kotler, P., 2000).

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3.2 Select an appropriate future strategy for Autoglass

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.

Because this strategy is appropriate for the organizations growth and their core capabilities

match with the strategy. 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.

In order to expand the market segment Autoglass Company needs new strategies and new

products which can be helpful for them to thrive the market. So considering future strategy

they 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.

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. 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 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.

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.

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Task 4

4.1 Compare the roles and responsibilities for strategy implementation of

Autoglass

When a business forms a strategy, the employer also finds the way to implement that

strategy. Policies can be taken under certain circumstances but making those policies fruitful

is the prime concern for company or business firm. If the principles fail to score

suggestively, it is considered as an unproductive one (Henry, R, Jack, A, & Gomes, R.,

2012).

For the sake of keeping market share high, Autoglass Company has taken some policies or

strategies to catch the customers.

Utilizing economical and productive strategies all the team within the association are united

of the beliefs and arrange of activity decision that leads to coherent behavior and moreover

the diversification or modification of the strategies are possible (Herald, P. M., 2012).

CEO of a business is in characteristic for revolving the ideas into reality and conceiving the

assessment among the enterprise (Ralph, J, Park, S, McDonald, M, & Hayward, M., 2012).

Managers are in need of inspiring and influencing the workforces to implement the policies

that need initiation with efficacy and effectively (Martin, L, & Ballard, D., 2013).

4.2 Evaluate resource requirements to implement a new strategy for

Autoglass

To continue the process of production, business has to seek for the resources. The managers

arrange the resources for a particular period of time to run the production cycle. Autoglass

in this respect, has the solid human resources along with technological resources help them

building the glass with assuring the best quality. Apart from production, Autoglass utilizes

its manpower in the activity of repairing and replacing as well. Because of the proper

utilization of the resources Autoglass is able to attract the customer and grab the market

share.

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4.3 Discuss targets and timescales for achievement for Autoglass to

monitor a given strategy:

Evaluation of the benchmark outcomes:

Quarter

1

The company should be bring up with the strategies and find out the feasibility of

the strategies whether the strategies would reflect in the expected outcome. They

can take the feedback of the customers and find out what else they are looking for

in the windscreen repairing service. There should be weekly and monthly

monitoring by the line managers of the divisions.

Quarter

2

During the period Autoglass should review the customer’s feedback and

implement the desired plan to expand the business. The line managers should be

responsible for collecting the feedbacks and acting towards it.

Quarter

3

This is the quarter of gathering information and takes research note on the

implemented strategies. The management should find out the gap between the

expected outcome and actual outcome. The GAP might occur because of lack of

coordination or inefficiency of the employees 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

5In this quarter the organization might achieve the desired results based on the

strategy making and the implementation method. If the management fails to

achieve the objectives through the strategies, then they have to initiate actions

based on information like training the employees or providing support to them.

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Conclusion

Who have got their windshield broken; they can be out of worried because there is a company named Autoglass who are making some high quality glass. For years the company earned a huge trust form their customer by providing quality product. They are providing best glasses with best services. They improved their services as high as it pressed away the other competitors far behind. Autoglass initiated the required and effective strategies to keep ahead in the race. Surely they are going more far ahead in the coming future.

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Reference

Autoglass Company. [ONLINE] Available at: http://www.autoglass.co.uk/Glass-repair-and-

replacement.186.0.html. [Accessed 06 October, 2013].

Henry, R., Jack, A., & Gomes, R., 2012, Communication Management and Its Implication',

International Journal Of Business, Marketing, & Decision Science, vol. 5, no. 2, pp.

35-50.

Herald, P. M., 2012, 'Linda Putnam’s Contributions Toward a Research Home for

Organizational Communication Studies in Management Communication Quarterly',

Management Communication Quarterly, vol. 26, no. 3, pp. 482-4.

Kotler, P., 2000. Marketing Management. 5th ed. New Delhi: Prentice hall of India.

Kupritz, V. & Cowell, E., 2011, 'Productive Management Communication', Journal Of

Business Communication, vol. 48, no. 1, pp. 54-82.

Martin, 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.

Ralph, J., Park, S., McDonald, M., & Hayward, M., 2012, 'Actions of CEOs: Social

Exchange and Impression Management Support among CEOs in Communications

with Journalists', Administrative Science Quarterly, vol. 57, no. 2, pp. 217-268.

Sway M. R., (2010) – Contemporary Strategy Analysis, Amazon.co, Wiley Higher Ed; 7th

edition.

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