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An assignment on

Business Strategy

Submitted:

Name:

ID:

Submitted To:

Date of Submission

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Table of Contents

Executive Summary:..................................................................................................................4

Task 1.........................................................................................................................................5

1.1 EXPLAIN THE ROLE OF STRATEGY, MISSION, VISIONS, OBJECTIVE, GOALS AND CORE COMPETENCIES OF AUTOGLASS...............................................5

1.2 REVIEW THE VITAL ISSUES INVOLVED IN STRATEGIC PLANNING IN AUTOGLASS........................................................................................................................6

1.3 EXPLAIN MINIMUM THREE PLANNING TECHNIQUE FOR AUTOGLASS.......9

Task 2.......................................................................................................................................12

2.1 PRODUCE AN ORGANIZATIONAL AUDIT FOR AUTOGLASS..........................12

2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR AUTOGLASS USING AT LEAST TWO APPROACHES............................................................................................13

2.3 EXPLAIN THE SIGNIFICANCE OF STAKEHOLDERS’ ANALYSIS IN RELATION TO AUTOGLASS..........................................................................................15

Task 3.......................................................................................................................................16

3.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES RELATING TO SUBSTANTIVE GROWTH, LIMITED GROWTH AND RETRENCHMENT...............16

3.2 SELECT AN APPROPRIATE FUTURE STRATEGY FOR AUTOGLASS..............20

Task 4.......................................................................................................................................21

4.1 COMPARE THE ROLES AND RESPONSIBILITIES FOR STRATEGY IMPLEMENTATION OF AUTOGLASS...........................................................................21

4.2 EVALUATE RESOURCE REQUIREMENTS TO IMPLEMENT A NEW STRATEGY FOR AUTOGLASS.......................................................................................21

4.3 DISCUSS TARGETS AND TIMESCALES FOR ACHIEVEMENT FOR AUTOGLASS TO MONITOR A GIVEN STRATEGY....................................................22

Conclusion...............................................................................................................................23

References:..............................................................................................................................24

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Executive Summary:

Autoglass as we know it today has its origins in two separate companies. Tony Bates started

a small family business in Bedford called Windshields in 1969, later it became well-known

for its pioneering approach in the industry. Previously windscreens were made of toughened

glass, which would be shattered if it was hit with sufficient force and the pieces of glass

would end up inside the car. In 1984, the two firms merged to become initially Autoglass

Windshields. Mainly, Autoglass was formed in 1974 and, by 1983, had over 40 branches and

100 mobile fitting units. The company presently holds 180 branches and 900 mobile fitting

units throughout the whole Europe.

Autoglass offers a vehicle glass repair and replacement service with lower cost. Windscreens

are usually damaged by loose chippings being thrown up from the road. Over time this can

turn into a crack. Body glass is usually damaged as a result of theft or vandalism. Autoglass

has stated it makes repairs to around 1.5 million customers a year.

The company is part of the Belron Group; Belron is part of Belgian company D'Ieteren,

which owns a group of companies which serve motorists. That is a large international vehicle

glass repair and replacement company. The UK office of Autoglass is based at Priory

Business Park in Bedford. In this case the business strategy of Autoglass will be discussed. It

examines the way Autoglass improved strategies and day-to-day tactics for evaluating and

monitoring progress while advancing its established corporate objectives.

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Task 1

1.1 EXPLAIN THE ROLE OF STRATEGY, MISSION, VISIONS,

OBJECTIVE, GOALS AND CORE COMPETENCIES OF AUTOGLASS

Mission of the AutoglassCompany

The Primary and the foremost mission of Autoglass Company is to gain customer’s

satisfaction. They offer the best quality windscreen services (Autoglass Company). This

objective of holding customer satisfaction leads them in envious position in its sector (Srull,

Thomas K, 2011).

Vision of the Autoglass Company

The vision of Autoglass is to occupy the most trustworthy place in the mind of their

customer. They set their vision with a view of providing the highest level of customer

service. A wide network is maintained to serve the customer and have with the help of that

they have earned a 92% satisfactory rate among the customers (Autoglass Company).

Autoglass has had at the core of its business, the objective of becoming and being known as a

world class service provider. As such, Autoglass wants its customers to look upon the

company as amongst the best of all the service providers they run into. This strategy has been

developed into the circle of success-

Core Competency

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The core competency of the Autoglass Company is very unique (Srull, Thomas K, 2011).

They can repair or replace almost any kind of broken or damaged glass of any model. They

are as long as serving with fleet services to the customers to repair or replace all types of

broken or damaged glass with least cost.

Strategic Intent:

The idea of strategic intent proposes that there's a general outlook on wherever the enterprise

ought to be going instead of a precise declaration of association in nursing expected

conclusion and this proposes. There should to be galore of flexibility inside the declaration to

permit for workers start, cluster help and adaptation in light-weight of altered attenuating

components (Ivanauskiene, N, & Auruskeviciene, V., 2009). The strategic intent of

Autoglass is to ascertain itself because the market foremost constantly. They are going

through all the undertakings to stay as leader.

Role of Strategy of Autoglass:

The administration of a company holds the compilation and dissemination of vision as well

as the operational decisions as the primary task of the organization. This outlines, in essence,

the raison d'etre of an organization (Ivanauskiene, N, & Auruskeviciene, V., 2009).

Autoglass has established their compilation of strategy making in such a way so that they

could maintain a specific time period in the execution of their decided strategies.

Objective and goals of Autoglass:

The aim of Autoglass is to pattern their enterprise augment and assist the international

people. The major target of Autoglass is to guide their purchaser by fixing or refurbishing

broken windshields. They are increasing their enterprise by earning the confidence of the

purchasers on them.

1.2 REVIEW THE VITAL ISSUES INVOLVED IN STRATEGIC

PLANNING IN AUTOGLASS

There are some issues which are very much important in order to get competitive advantage

(Grant M. R., 2010). Autoglass is putting their aim on the customer’s fondness and clientele

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service. They have come to the largest satisfaction grade in the service commerce just by

restoring the windscreen in a cost effective way.

Autoglass should be customer oriented and try to increase their service portfolio in alignment

to rendezvous with the competition. This are discussed below-

Competitive advantage of Autoglass

Autoglass has already gained some competitive advantages as it is a market leader in its

section. Its business is growing day by day. We can analyze its competitive advantages by

using the Ansoff’s Growth Matrix (Kotler, P., 2000).

Igor Ansoff presented a matrix that focused on the firm's present and potential products and

markets (customers) to portray alternative corporate growth strategies.

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Figure: Ansoff’s Model

Ansoff's matrix provides four different growth strategies:

Market Penetration – A market scheme herewith a company hunts for to recognize larger

dominance in the market during which they currently are giving (Melody, Y. & Kevin, H.,

2000). This scheme typically focuses on apprehending a bigger share of aide degree living

market.

Market Development – Autoglass can increase market by targeting its existing products to

new market segments.

Product Development–Autoglass can develop new products targeted to its existing market

segments.

Diversification – Autoglass can grow by diversifying into new businesses by developing

new products for new markets.

Autoglass has been a successful organization over the years. They have maintained a high

level in their services. They are serving more than 1 million motorists each year - 24 hours a

day, 7 days a week, and 365 days a year (Autoglass Company). But in order to keep the

quality and the growth they have to find out new ways of serving and develop the existing

services.

Top-Down and Bottom-Up

Informal Planning:

Informal planning is that technique; wherever the supervisor or foremost of a team develops

an inspiration with no one’s accepted structure and rigid organizational rules (Grant M.R.

2010). Certain as shooting instant things managers use this approach while it's conditionally

important to create any prescribed structure of coming up with or the timeline for conceiving

isn't enough. It’s useful to keep control on short time objectives of the organization.

Top-Down:

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A top-down approach is basically the shattering down of a system to recognize insight in the

sub-systems (Grant M. R., 2010). Autoglass is utilising this approach in their development

and that they are doing pretty good in following this approach.

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Bottom-Up:

Autoglass is utilising this approach in their service development to persuade the customers

and they are attractive victorious in exploitation this approach. This approach means the

piecing along of schemes to provide increase to added complicated schemes, therefore

creating the primary schemes, sub-systems of the emerging scheme (Grant M. R., 2010).

Behavioral Approach for Autoglass:

Autoglass have to reach up with some expansion for his or her merchandise and market in

alignment that they could a wide-ranging marketplace for the purchasers. For that, they

should to approach inside the top-down method in alignment to capitalize their assets and to

handle the affray within the future. Autoglass could be a growing enterprise within the

industry and therefore the service they're undertaking won't be decent for them to contain on

to the location inside the market.

1.3 EXPLAIN MINIMUM THREE PLANNING TECHNIQUE FOR

AUTOGLASS

1. BCG Growth Share Matrix

This matrix shows the existing products condition in the market through its market

share and market growth (Gómez, L, & Ballard, D., 2013).Autoglass can examine and

analyze the business units and product line by this model. This will help them to

select which product needs to emphasize, which needs to erase.

4 types of consequences can be focused in the market during the placement of goods in the

BCG growth share matrix by Autoglass Company; such as:

I. Stars: High Growth and High Market Share

These are the business units which generate a high growth rate and own a

huge market share.

It requires huge funding or cash to compete with market competitor..

II. Cash Cows: Low Growth but High Market Share

The units will have low market growth but generates a high cash inflow as it

owns a huge market share.

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These types of units need little investment.

III. Dogs: Low Growth and Low Market Share

These units are sympathetically called pets. These are the units with low

market share in a mature, slow-growing industry.

This is where a company needs to re-think about the further investment

because these units barely generate profit for the organization.

IV. Question Marks: High Growth but Low Market Share

These are the newly introduced units in the market and gradually earning

profit.

These have a potentiality to earn huge market share as it maintain a high

market growth and become star.

2. Strategic Position & Action Evaluation Matrix (SPACE)

Autoglass can also use the Strategic Position & Action Evaluation Matrix (SPACE)

the determine the market needs and operations requirement to penetrate in different

market segment (Gómez, L, & Ballard, D., 2013).The SPACE Matrix is a useful

method to analyze the competitive position of an organization using internal and

external dimensions. This matrix analyze an organization based on four dimensions,

two internal and two external, with the purpose of defining an appropriate strategy for

that organization, these dimensions creates the SPACE matrix and the factors that can

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Figure: BCG Matrix

be included in each one of them can be stated as follows: Financial Strength (FS),

Competitive Advantage (CA), Industry Strength (IS), Environmental Stability (ES).

3. Profit Impact of Market Strategy (PIMS)

It was developed in order to provide empirical evidence of which business strategies

lead to success, within particular industries. Data from the study is used to expertise

strategies in strategic management and marketing strategy (Gómez, L, & Ballard, D.,

2013).This database provides enough supports for the policies made for competitive

advantages. Autoglass would possibly sustain people service information in

alignment to research their values and designing method in order that they will keep

record of all the accomplishment and implementation of new methods.

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Task 2

2.1 PRODUCE AN ORGANIZATIONAL AUDIT FOR AUTOGLASS

SWOT Analysis

Strengths

Autoglass is offering the finest service at least cost.

The replaced or repaired windscreen provides the high visual clarity

Customers are loyal to existing brands

Good presence and visibility as an automobile service brand

Weaknesses

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StrengthsLow costVisual Clarityloyal CustomerGood presence and visibility

OpportunitiesIncreasing growth rateFewer competitorsleader in vehicle glass repair and replacement

WeaknessesLess promotion of the brandLack of advertisement

ThreatsSuppliers CompetitionMounting fuel prices.Geographic LocationGovernment Policy

S W O T

Figure: SWOT Analysis

Promotion activities are not much impressive.

Lack of advertisement compared to some others means lesser brand recall

Opportunities

Fewer competitors.

Fast industry growth rate and more presence in emerging economies

Autoglass is the worldwide leader in vehicle glass repair and replacement

Threats

High competition among suppliers.

Geographic factors limit competition

Mounting fuel prices.

The government policies have an effect on gaining market share.

2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR AUTOGLASS

USING AT LEAST TWO APPROACHES

PESTLE analysis is very helpful to determine the internal and external aspects which have

impact on an organization’s behavior, activities and service. It describes framework of

macro-environmental factors used in the environmental scanning component of strategic

management (Oliver, Richard L.2012).

PESTLE analysis for Autoglass-

Political

Political disturbance can hamper the business.

Different policies may have some serious impact on business.

Stability of governments is an important political factor fir running a business for

long time.

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Economical

The economical activities and growth can create some policy change for the

organization.

The buying capacity of people influences the selling of the organization.

Socio-cultural

Lifestyle and preferences of people have serious impact on business.

Traditions and social rules will decide if the business can be operated.

Trends in social factors affect the demand for a company's products and how that

company operates.

Technological

Technology creates the designs.

Technology of changes the demand and habits.

Technological developments on services may create a huge opportunity in overseas

markets of Autoglass.

Legal

Legal factors include discrimination law, consumer law, antitrust law, employment

law, and health and safety law.

Environmental

Environmental factors such as weather, climate, and climate change can affect in the

business.

Environment has an impact on customer habits and demands.

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2.3 EXPLAIN THE SIGNIFICANCE OF STAKEHOLDERS’ ANALYSIS

IN RELATION TO AUTOGLASS

The stakeholders’ grid:

1. The top right part submits to the stake holder who influences the strategies and

promotes the products.

2. The top left part submits to the stakeholder who influences strategies but they posses’

low interest in the organization.

3. The bottom right part submits to the stakeholders who have high interest but low

influence in the organization.

4. The bottom left part submits to the stakeholders who have low influence and low

interest in the organization.

Autoglass has mapped the stakeholders inside the association in order that the stakeholders

will gift their obligation in contemplate of the organization’s profit.

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High InfluenceLow Interest

(Latents)

High Influence High Interest (Promoters)

Low Influence Low Interest (Apathetic)

Low Influence High Interest (Defenders)

Figure: Stakeholders’ Grid

Task 3

3.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES RELATING

TO SUBSTANTIVE GROWTH, LIMITED GROWTH AND

RETRENCHMENT

Market Entry Strategy

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

enterprise that is as equal because the beginning of the organization, it's known as organic

development. It omits any development that's profited by stepping into the other enterprise or

amalgamation or acquisition.

Merger: Merger is that the method by two enterprises gets united and turns into one entity

through lawful consolidation. The start of Autoglass was through such amalgamation.

Acquisition: This is the tactic where one specific business buys another entire business and

sets up itself because the proprietor. During this procedure 100% or near 100% ownership

needs to be acquired.

Strategic Alliance: This is the tactic while 2 or more companies acquiesce upon variety of

common objectives and share every other’s assets to fulfill those objectives. This approach is

wholeheartedly a notion that resides between the notion of organic development and joining

or acquisition.

Licensing: It is the scheme through that a mother business (licensor) allows another business

(licensee) to use its trademark and sell the merchandise or services on the foundation of

affirmations on many time span. The time span adopt the authorizing charge that needs to be

paid to the licensor.

Franchising: It is the strategy, through that a business earnings from the correct to use

another company’s trademark, enterprise kind, methods while the franchisor supplies the

correct to the franchisee. For getting market share abroad, Autoglass may use this approach

by circulation franchises in distinct locations.

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Substantive Growth

Horizontal Integration: In level integration a enterprise diversity or comes by output

facility of affiliated or complementary merchandise (Melody, Y. & Kevin, H., 2000).

Occasionally it's going to additionally happen that a corporation buys one amidst its

competitors and pattern integration. Autoglass would probably pattern such integration by

connecting with alternate output that's affiliated with its living merchandise.

Vertical Integration: In integration a corporation connections with the businesses or

partners of the offer string of links and in some cases all the partners of the string of

connections hold below one proprietor (Melody, Y. & Kevin, H., 2000). Autoglass would

probably recruit into integration by linking with the suppliers and vendors.

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

within the dwelling line of merchandise (Arazy, O, & Gellatly, I., 2012). The new

productions square measure alike to the current merchandise.

Unrelated Diversification: It is the method one time a business enlists into diversification

by inserting new merchandise and services that doesn’t believe the living merchandise

(Arazy, O, & Gellatly, I., 2012). It will be unrelated diversification if Autoglass begins

mercantilism home window crystal or attractiveness mirrors.

Limited Growth

Market Penetration: It means that penetrating the comparable market by giving comparable

worth against the worth of the competitors. This approach is employed to instantly strike the

competitors by benefiting their customers. It’s typically used to accomplish sales

development.

Market Development: It suggests that targeting new people stages and appealing the non-

buying customers of that segment. It assists to continue the market share by adding new part

of shoppers. It’s promise for Autoglass to develop the market by geographically increasing

the enterprise and returning to the shoppers.

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Product Development: It means that developing new merchandise that do not live presently

and so attracting customers to get a lot of diversity of merchandise or services.

Innovation: It proposes that searching out an solely new would like of the shoppers inside

the market and innovating replacement merchandise or service to rendezvous that need.

Disinvestment:

Retrenchment: A theme utilized by companies to scale back the variety or the last

dimensions of the methods of the business. This scheme is generally utilized so as to slash

prices with the aim of altering into an added financial steady enterprise.

Turn around: Turnaround may be a method dedicated to company renewal. It utilizes

investigation and progressing to save distressed companies and returns them to economic

status. Turnaround management involves management rethink, activity based mostly cost

accounting, origin malfunction determinants enquiry, and SWOT investigation to work out

why the enterprise is dropping short. So as to pattern a comeback inside the business

associations got to verify the base of the adversities and supported those adversities they have

to pattern up new procedures and values to trounce those matters.

Liquidation: When a firm is terminated or bankrupted, its assets rectangle measure recorded

and furthermore the advances pay creditors. Any leftovers rectangle measure distributed to

shareholders. Liquidating a firm is that the last stage of the firm’s survival. If no alternate

designs befit the organizations then it must deal its assets then ante up the shareholders and

stakeholders.

Divestment: The method of departure of buying into. Furthermore mentioned to as

divestiture, it's conceived for either economic or communal goals. Divestment is that the

converse of buying into. It the method of dragging out the assets operational and deals those

to rendezvous the gap inside the monetary matters and so as to liquidate the association

divestment is significant for any association.

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Porter’s Generic Strategy

Michael Porter has described a category scheme consisting of three general types of

strategies which are generally used by businesses to accomplish and uphold competitive

advantage (Kotler, P., 2000). The generic strategies are:

1. Overall Cost Leadership

2. Differentiation

3. Focus Point

Overall Cost Leadership

This strategy includes the cost decreasing methods which can win market share by attracting

the price sensitive customer (Kotler, P., 2000).Autoglass has won a huge market share by

applying this strategy at their very entry level into the market.

Differentiation

Differentiation strategy includes the variation and uniqueness of product and service which

can give or create a brand value in market for the organization (Kotler, P., 2000). Autoglass

has introduced some new and unique feature in their service, and gain a huge customer

attention.

Focus Point

Autoglassis is now focusing on high customer satisfaction. They are market leader in UK and

people have a high expectation from their services (Kotler, P., 2000). So they are now

focusing on 100% customer satisfaction in order to maintain their market leadership.

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3.2 SELECT AN APPROPRIATE FUTURE STRATEGY FOR

AUTOGLASS

In alignment to complicate the market segment Autoglass business needs new designs and

new goods which can be cooperative for them to flourish the market. So contemplating future

scheme they can enquire their market need and reach up with some development of the new

merchandise to diversify their services and apprehend a new market segment.

Autoglass should be following the vertical augments design to augment their enterprise. They

can advance with coalition with automakers to apprehend the new market segment.

Autoglass is in a powerful location and they might be able to proceed with the coalition with

new associations. Because this design is befitting for the associations development and their

centre capabilities agree with the design. Coalition with associated associations will endow

Autoglass to put more aim on the customer’s preference and can evolve new merchandise

class to fulfill the desires of the customers.

Only starting new merchandise line and expanding the market will not solely help the

Autoglass enterprise to expand in the market. Autoglass should certainly reassess the

response of the customers so that they might realize what the customers are looking for and

to what level of acceptance customer’s yearn. Autoglass administration desires to distinguish

the functions and responsibilities to the employees so that they can provide the largest degree

of approval to the customers.

The Autoglass is at present have a 92% approval rate amidst the customers. But with

expansion of the enterprise the acceptance rate might fluctuate and Autoglass need to

construct a timescale for the new goals and elongation of the new services. Considering the

location in the business, Autoglass can provide a 5 quarters design that will be ample for

Autoglass to contend up with the affray and sustain coalition with the automakers to

complicate the enterprise. Autoglass can benchmark next 5 quarters to obey with designs

they have taken and fulfill the firm promise to the customers.

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Task 4

4.1 COMPARE THE ROLES AND RESPONSIBILITIES FOR

STRATEGY IMPLEMENTATION OF AUTOGLASS

Strategies are needed to gain competitive advantage. But implementation those strategies are

harder and more important than making those. Manages need to contribute in full stretch in

order to ensure highest implementation of those strategies (Gundala, R., Jack, A., & Gomes,

R., 2012).

Top level managers are responsible for making policies and strategies. But it is also their

responsibility to make it clear to the employees, because employees will be the key to

performing those strategies (Westphal, J., Park, S., McDonald, M., & Hayward, M., 2012).

Autoglass administration must compute the trading and sales ways to double-check the best

market share and sales. The sales cluster should to be developed during a means which will

continue with the affray inside the market. Creative advertisements in relevant localities

would probably facilitate an allotment throughout this regard. The centre competencies

should to be clearly concentrated to attractiveness the shoppers.

Managers should also aware of the changing demand and life style of the customer. Because

if they don’t respond in that way the company can lose a huge market share in a short time

span.

4.2 EVALUATE RESOURCE REQUIREMENTS TO IMPLEMENT A

NEW STRATEGY FOR AUTOGLASS

Autoglass should maintain their resources in a careful matter. Because they are a service

based industry and they services will reflect with the use and capability of their resources

(Oliver, Richard L.2012).

Autoglassby now has 159 customer consultant working 24/7 to meet the customers demand.

Autoglass also has fleet servicing which requires man power. Autoglass has trained their

employees in such a manner that they gain a unique reputation in the business. As human

resources in much more important in service based industry rather than in product based

industry, Autoglass has special care for the HRM department (Oliver, Richard L.2012).

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As it is a technology based service company Autoglass has maintain their materials quite

well and they are conscious about the changes in technology and regular updates of their

material.

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

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

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

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

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Table: Evaluation of the outcomes

ConclusionCertain qualities are needed to gain market share which have been achieved by Autoglass.

Autoglass has valued their customer’s need as well as the employee’s. Customers are much

happier with the services of Autoglass than other companies of this industry. Autoglass has

brought innovation and excellence in their services as well as in the industry. Their

dedication to win market share through customer share has proven much stronger than their

competitors. But in modern world customers are much pickier and mind changing. They are

not as loyal as previous decades. So Autoglass has to initiate more innovation in their

business to uphold the current position and to earn more reputation.

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

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