An assignment onBusiness Strategy Submitted By: Submitted to: Date
An assignment onBusiness Strategy
Submitted By:
Submitted to:
Date
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Table of Contents
Executive Summary.............................................................................................................3
Task 1...................................................................................................................................4
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
Competitive advantage of Autoglass...................................................................................5
1.3 Explain minimum three planning technique for Autoglass............................................7
Task 2...................................................................................................................................9
2.1 Produce an organizational Audit for Autoglass.............................................................9
2.2 Carry out an environmental audit for Autoglass using at least two approaches..........10
2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass................12
Task 3.................................................................................................................................14
3.1 Analyze possible alternatives strategies relating to substantive growth, limited growth and retrenchment................................................................................................................14
3.2 Select an appropriate future strategy for Autoglass.....................................................17
Task 4.................................................................................................................................18
4.1 Compare the roles and responsibilities for strategy implementation of Autoglass......18
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...............................................................................................................................19
Conclusion..........................................................................................................................20
References..........................................................................................................................21
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Executive Summary
Research has displayed that Autoglass customers are much happier than the competitors
and they have furthermore displayed that they are the best in the service comparing to the
banking and retailing sectors. Autoglass is triumphant in winning the hearts of their
customer through their services and furthermore won a sequence of accolades for being
the best windscreen replacement company.
Autoglass has brought very good compilation of services and their goods. They are going
for much larger market segment and expanding in a stable stride by beginning from only
a small family enterprise to own 500 parts in all over the Europe.
Autoglass focused mostly on the customer’s satisfaction and how to maintain the services
effectively. Their focus on the customer satisfaction has made the pioneer in this field of
servicing windscreen. From the case and study on Autoglass it can be deduced that Auto
glass is in a powerful place to confront the affray and face the new trials that will
originate in the future.
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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 Autoglass Company
Charge bidding is a document of the intention of an affiliate (Actor M. R., 2010). The go
of Autoglass enterprise is to gratify of the customers. The Autoglass business presents the
incomparable screen services. This charge of persuading the customers of Autoglass
acting leads them to drawing the visions of their memory (Autoglass Consort).
Vision of Autoglass Company
Vision of Autoglass Company is the verifiable to supplying the maximal structure of
customer employment (Present M. R., 2010). They tally currently official a large striking
to serve the people and acquire a 92% comforting judge amidst the customers. Autoglass
is thriving day by day and this strategy faculty cater them to delimitate the strategic
boundaries of the fresh (Autoglass Visitor).
Core Competency
Core ability is the factors that an endeavor sees as concentrated to the way the visitant or
its employees transmute (Allocation M. R., 2010). The nucleus ability of the Autoglass is
that they can fix or position any humane of noncontiguous or injured solid of any
becomes (Autoglass Band).
Strategy of Autoglass
The main task in tactical administration is usually the compilation and distribution of the
visualization and the operation testimony. This plans basically, the raison d'etre of an
association (Ivanauskiene, N, &Auruskeviciene, V., 2009). Autoglass has assembled their
roles in tactic making in a method that the tactics maintain an explicit time period in the
implementation (Autoglass Company).
Objective and goals of Autoglass
Objective of Autoglass is to please their clients by repairing or swapping broken
windscreen of any vehicle. The goal is to make their business developed and serve the
overall customer (Autoglass Company). They are increasing their business by endearing
the hearts of the consumers.
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1.2 Review the vital issues involved in Strategic planning in Autoglass
There are few matters needs to be wise in greeting of strategic intellection (Aid M. R.,
2010). Granted the position in the person, there are issues that Autogalss kept in manage.
Autoglass is pushing their focus on the consumer’s preference and consumer service.
They have stretched the highest contentment level in the service industry just by
swapping the windscreen in a cost operative way. Autoglass must be customer oriented
and try to upsurge their service assortment in order to meet with the struggle. Based on
the circumstance, Ansoff’s model can be used to examine the competitive advantages
(Kotler, P., 2000).
Competitive advantage of Autoglass
Autoglass is now a subject function businessperson of screen. They currently person
captured a gigantic mart segment with their definite personnel (Autoglass Company).
Autoglass is ontogenesis in the industry and they necessary to canvass the capitalistic
advantages, and in arrangement to do so Autogalss can use the Ansoff' matrix
(Armstrong, G., & Kotler, P., 2006).
Figure: Ansoff’s Model
Market PentrationProduct
Development
Market Development
Diversification
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Ansoff's Matrix is a considerate of figure that suggests foursome options (Ivanauskiene,
N, &Auruskeviciene, V., 2009). As we know learned from the somebody that Autoglass
has enlarged its market assets and they have the proficiency to support 1 million
patronage having job with screen. So, supported on the capabilities Autoglass can render
customers with extant set as healthy as inserting a new service aspect. In the matrix with
digit schemes lie defined dangers. The schemes are:
1. Market penetration-a market design hereby a corporation’s search for gain better
ascendency in a flea market in which it formerly has an input (Melody, Y. & Kevin, H.,
2000). Autoglass can surplus its present market segment by trade and drawing more of
their products resulting this strategy. If it is done comprehensively Autoglass might lose
attention on their main objective.
2. Product development - In this strategy Autoglass can transport new creation to the
existing mart of screen to capture many customers.
3. Market development - This connive refers to the attainment of new people.
Autoglass can growth their activity segments to force new customers.
4. Diversification - This strategy is utilized to turn the dangers by introducing new
quantity in new activity to dissipate the dangers connected with sr. one.
Autoglass can help the ontogeny value real swiftly by persuading the client, acquiring
new customers and retentive them. They can set targets for triplet years to discover writer
customers and evolve with new products in the marketplace that are fit (Kotler, P., 2000).
Throughout the aimed at term movement the Autoglass should place its geographic
country; where they module conceive a gigantic market and they should ascertain the
criteria for choosing an effectual supplier who instrument give assess goods.
Definition of Top-Down and Bottom-Up
Informal Planning:Informal planning is the activity locality the manager or baton of an
aggregation evolves a plan after any acknowledged anatomy and unyielding structures
(Grant M.R. 2010). For assertive flaming situations managers use this get access to
locality it is not capital to anatomy any learned anatomy of planning or the timeline for
designing is not sufficient. It is important to double-check abbreviate appellation
objectives of the organization.
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Top-Down: A top-down approach is actually the breaking down of a system to realize
insight into its integrative sub-systems (Grant M. R., 2010). Autoglass is thriving in
exploitation the approach in their development.
Bottom-Up: A bottom-up approach is that the piecing along of systems to administer rise
to additional advanced systems, so creating the first systems sub-systems of the aborning
system (Grant M. R., 2010). Autoglass is triple-crown in victimisation this approach to
produce the services to the purchasers.
Behavioral Approach for Autoglass:
Autoglass have to approach in the Top-Down method in edict to exploit their resources
and to handle the race in the future. Autoglass is a mounting company in the service
business and the service they are providing will not be enough for them to clench on to
the spot in the market. They require to come up with a number of developments for their
merchandise and market so that they might a spread market for the customers.
1.3 Explain minimum three planning technique for Autoglass
1. BCG Growth Share Matrix
Companies can city up their artifact in much a conduct where they can prioritize their
artifact and care an activity in the portfolio (Ivanauskiene, N, &Auruskeviciene, V. 2009).
This matrix shows the connection 4 types of consequences that testament be faced by a
remembering (Gudonaviciene, R, &Rutelione, A., 2009). It moreover assists the
remembering to bonk when to clothe in the living creation, when to withdraw all profits
from the mart segment and when to adjust on a new playing attribute.
Autoglass give meet 4 types of consequences in the marketplace. And they are:
1. Stars: Overlooking Development and Swollen Marketplace Assets
If managers can eliminate the sector bankable and affirm a strengthen market
apportion then it testament termination in the change cow and the Assort can
gather exchange from the acting.
It requires an uppercase amount of cash for which managers require to support
decisions from which the exchange present be generated and victimized.
2. Cash Cows: Low Maturation but Flooding Mart Part
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The set leave discover low development in the mart but it will make the highest
industry deal from which the methodology will round in revenues and record
income.
3. Dogs: Low Development and Low Industry Get
The reading when the quantity gradually stops to generate any kindhearted of
receipts, the organization should gradually draw from the ascribe to sign other.
The activity should also be measured of incurring any unessential costs.
4. Question Marks: Gear Development but Low Activity Acquire
It indicates to the products that are freshly introduced in the mart and testament
gradually garners aggregation permissiveness.
It also has the sleek of making a Dog fluid. If the industry acquire is not enlarged
gradually then it would incur deprivation for the structure.
Figure: BCG Matrix
2. Strategic position & action evaluation Matrix (SPACE)
Companies can also use the Place matrix to understand the industry requirements and
control in meeting to increase the industry noses. This matrix has digit quadrants viewing
the places of the labor memory and how to work accordingly (Ivanauskiene, N,
&Auruskeviciene, V., 2009). In concern to Autoglass's send in the industry they can use
hard-hitting representation. It can also be used as the groundwork for Dweeb enquiry.
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3. Profit impact of market Strategy (PIMS)
It is a write of database which provides factual evidence to argue policies and
principles for gaining and sustaining competitor advantage (Air, Y. & Kevin, H., 2000).
Task 2
2.1 Produce an organizational Audit for Autoglass
SWOT Analysis
Strengths
Serving at low cost.
High visual clarity
The safety features are high.
Weaknesses
Autoglass is reluctant in promoting the brand.
Lack of advertisement is present in the Autoglass Company
StrengthsLow costSafetyVisual Clarity
OpportunitiesHigh presence in emerging economy
WeaknessesLess promotion of the brandLack of advertisement
ThreatsSuppliers CompetitionGeographic LocationGovernment Policy
S W O T
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Opportunities
It has a huge opportunity to grab the market.
Threats
Geographic location is a common threat to any business if it is not situated in the
proper market.
Suppliers’ competition is very high in the industry. It is difficult to determine the
quality supplier.
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
Tool is sympathetic of a reasoning that helps any connection to actualize the scenario of
the unbleached surround where the disposal present direct (Line, Y. & Kevin, H., 2000).
It is unachievable for any of the disposal in the business to impact the environments and
the factors. It influences the strategic conclusions that give be purloined by a disposal
(Gudonaviciene, R, &Rutelione, A., 2009). Tool assists the system to maximize
possibilities and lessen threats.
PESTEL Analysis
Political
Stability of governments. This may refer the prospective conditions in a land.
Taxation policies.
Political climate in disparate countries is variant and the policies work the
commerce strategies.
Economical
Level of efficient trait that affects demand for windscreen.
The purchasing susceptibility of grouping influences the purchases of the
administration.
Socio-cultural
Social norms that alter the resoluteness to own and use automobiles versus other
substance of send.
Lifestyle and preferences of group influences the business.
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Technological
Technological developments that may increase or alter locomote or place of
screen.
Technology relating the designs.
Technology of windscreen concoct.
Legal
Legal food relating to area measures.
Law regarding consumer and occupation is highly stressed.
Environmental
Environmental aspects such as endure, climate, and condition move can relate in
the commercialism.
Porter's 5 forces psychotherapy is a type of analysis which determines and helps the
direction to understand the coverall circumstance of the business (Kotler, P. and
Trumpeter, G., 2006)/
Porter's 5 forces are:
1. The threat of new entrants
Regime Contract: Governments can end accounting to an industry finished
licensing requirements by restricting access to raw materials.
2. Economies of scale: This implementation reaches economies in the production. In
this industry, this is mostly a real low danger
Access to Arrangement Manoeuver: It is the cognition to loot the production in
the market and create status.
The bargaining knowledge of customers
3. Threat of Reverse Compounding: A vendee has the potency to combine reverse
by producing the fluid itself.
Number of bourgeois Companies: The classify of supplier companies controls the
purchasing cognition of the customers.
4. The threat of jock products
Access: Admittance in the business for buyers has transmute untold easier than it
was in the offset.
Prices: Prices entity in the business because buyers alter to the product which is
content squeaking property yet having low soprano.
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5. The turn of bargaining cause suppliers bed
Number of Vendee Companies: The circumscribe of companies who are
purchasing raw materials for manufacturing screen from ascertain of suppliers.
6. Threat of frontward Desegregation: Supplier can compound with customers to
produce the synoptically production.
7. The strength of the agonistically rivalry
Rate of Business Development: the manufacture has immense growth potentiality.
Number of Competitors: The assort of competitors is comparatively low in this
manufacture.
8. Diversity of Rivals: The rivals with new and several ideas of competing
instrument liable extend apiece opposite's route and challenge differing’s post.
2.3 Explain the significance of stakeholders’ analysis in relation to
Autoglass
The Stakeholders’ Grid:
1. The top right part refers to the stake holders who influences the strategies and
promote the products.
High InfluenceLow Interest
(Latents)
High Influence High Interest
(Promoters)
Low Influence Low Interest (Apathetic)
Low Influence High Interest (Defenders)
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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.
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Task 3
3.1 Analyze possible alternatives strategies relating to substantive growth,
limited growth and retrenchment
Organic Growth: When an enterprise organization achieves development over its own
enterprise which is as same as the starting of the association, it is called organic
development.
Merger: amalgamation is the method by which two businesses gets joined and turns into
one entity through legal consolidation. The starting of Autoglass was through such
merger.
Acquisition: This is the method where one particular company purchases another entire
business and establishes itself as the proprietor. In this method 100% or beside 100%
ownership has to be bought.
Licensing: It is the process through which a mother business (licensor) allows another
business (licensee) to use its trademark and deal the goods or services on the cornerstone
of agreements on some periods. The periods encompass the licensing charge that has to
be paid to the licensor.
Substantive development
Horizontal Integration: In integration an organization sorts or acquires production
facility of connected or complementary merchandise (Melody, Y. & Kevin, H., 2000).
Sometimes it's going to additionally occur that an organization buys one amongst its
competitors and type integration. Autoglass would possibly type such integration by
connecting with alternative production that area unit associated to its living merchandise.
Vertical Integration: In upright integration a business connections with the businesses or
partners of the offer chain and in varied things all the partners of the chain keep below
one businessman (Melody, Y. & Kevin, H., 2000). Autoglass may enlist into upright
integration by connecting with the suppliers and vendors.
Related Diversification: When an organization expands its enterprise with some
diversification within the living business line (Arazy, O, &Gellatly, I., 2012). The new
productions are alike to the present goods.
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Unrelated Diversification: It is the strategy once an organization engages into
diversification by introducing new product and services that doesn’t trust the prevailing
merchandise (Arazy, O, &Gellatly, I., 2012). It may be unrelated diversification if
Autoglass begins marketing domicile window glasses or beauty reflectors.
Limited development
Disinvestment:
Retrenchment: A scheme utilized by corporations to decrease the diversity or the overall
size of the procedures of the company. This strategy is often utilized in order to slash
costs with the goal of evolving a more financial steady enterprise.
Turn around: Turnaround administration is a method dedicated to corporate renewal. It
uses investigation and designing to save troubled businesses and returns them to
solvency. Turnaround administration engages administration reconsider, activity based
costing, origin malfunction determinants investigation, and SWOT investigation to
determine why the business is falling short. In alignment to make a comeback in the
commerce associations need to find out the origin of the difficulties and founded on those
difficulties they need to make up new strategies and principles to overcome those
problems.
Liquidation: once an enterprise or firm is terminated or bankrupt, its assets square
measure sold-out and also the advances pay creditors. Any leftovers square measure
circulated to shareholders. Liquidating a firm is that the last stage of the firm’s survival. If
no different ways conform to the associations then it wishes to sell its assets so pay the
shareholders and stakeholders.
Divestment: The method of commercialism associate degree quality. what is more
known as divestiture, it's created for either economic or social goals. Divestment is that
the converse of shopping for into. it's the strategy of birth prevention the assets in
procedure and deals those to rendezvous the gap within the economic difficulties and so
as to liquidate the organization divestment is important for any organization. Employee's
Generic Strategy
Michael Porter described a scheming that contains tierce pervasive strategies which are
utilised by companies to gain the rivalrous benefit (Kotler, P. and Spaceman, G., 2006).
The generic strategies are:
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3.2 Select an appropriate future strategy for Autoglass
To expand in the industry, organizations must formulate forthcoming strategies to grasp
customers’ consideration and recollect them. Companies wishes to come up with
innovative technologies and new creation to create a superior market segment
(Armstrong, G., & Kotler, P., 2006). BCG growth matrix can be supportive to express
strategies and act for that reason. Autoglass might face four different hazards in enlisting
the products in the BCG growth Autoglass should be following the upright growth
approach to develop their business. They can go with coalition with automakers to seizure
the new market division. Autoglass is in a solid position and they might be gifted to go
with the coalition with new organizations. Because this policy is fitting for the
organizations evolution and their fundamental abilities match with the policy. Alliance
with associated organizations will enable Autoglass to put more attention on the
purchaser’s preference and can mature new product class to fulfill the desires of the
customers.
Only initial new product line and growing the market will not alone support the Autoglass
Company to grow in the market. Autoglass should always review the feedback of the
clients so that they might distinguish what the customers are wanting and to what level of
fulfilment customers want. Autoglass management needs to outline the characters and
duties to the staffs so that they can offer the highest level of consummation to the
customers.
The Autoglass is at present-day have a 92% consummation rate among the clienteles. But
with extension of the business the satisfaction amount might alter and Autoglass need to
size a schedule for the new goals and allowance of the new services. Considering the
situation in the business, Autoglass can offer a 5 year plan that will be enough for
Autoglass to manage up with the race and maintain coalition with the automakers to
increase the business. Autoglass can target 2019 to comply with policies they have in use
and satisfy the commitment to the clients.
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Task 4
4.1 Compare the roles and responsibilities for strategy implementation of
Autoglass
In the tactical stages the policies are modified and the practicability of the principles is
tried to looking if those principles are operational or not (Ivanauskiene, N.
&Auruskeviciene, V., 2009). Subscription of the contract in the connection is really
remarkable and it carries a defined signification for the methodolgy’s earnings. In the
implementation of the principles it shows to the principles that are chosen and wise to
earnings from earnings for the structure (Line, Y. & Kevin, H., 2000). Autoglass is basic
to use plenary filtering methods of the principles to understand and continue the
marketplace apportion.
In encounter to fulfill the aimed at market part top and secure statements are thing.
Communal visualizations are required in identifying and checking the hypotheses, bases
of the policies and imply activities.Autoglass administration has to work out the trading
and sales strategies to double-check the greatest market share and sales. The sales group
should be evolved in a way that can keep up with the affray in the market. Productive
advertisements in relevant localities might help aalalallotmentmentment in this consider.
The centre competencies should be apparently focused to appeal the customers.
Managers demand to induce and investment the employees to effect the principles that are
undertaken effectively and effectively (Michael A., 1999).
4.2 Evaluate resource requirements to implement a new strategy for
Autoglass
In meeting to evaluate the assets of assort, the organization needs to select the straight
components and emplacement them in the suitable agencies to alter the services
(Archangel A., 1999). Autoglass has prioritized its weak resources because as it is a work
bourgeois of windscreens and needs a vast man commonwealth to date the exact of the
customers. Autoglass has a fleet pairing which needs man cause also and they are cagy
virtually their create aggression. So Autoglass is disbursement large adjustment in
education and evolving the abilities of the employees to render the best mating in the
commerce. Autoglass continue scenario and enterprise of components and time
percentage Autoglass is the slip acting in the business because they are utilizing the
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mortal materials to insure the enduringness and security of the customers and moreover
effectual ingenuity designing and assessing the resources methodically to give the mortal
care.
4.3 Discuss targets and timescales for achievement for Autoglass to
monitor a given strategy
Evaluation of the benchmark outcomes:
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Conclusion
Autoglass has made the windscreen fixing or replacement tranquil for the clienteles and
providing services to the consumers to their complete satisfaction. The Autoglass
Company has the potential to grow and become one of the best windscreen replacement
organizations in the world.
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