Published on March 9, 2014
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2|Page 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 ..............................................................................................Error! Bookmark not defined. 1.2 Review the vital issues involved in Strategic planning in AutoglassError! defined. Bookmark not 1.3 Explain minimum three planning technique for Autoglass .................................................... 8 Task 2 ........................................................................................................................................ 9 2.1 Produce an organisational 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 Analyse 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
3|Page Executive Summary Autoglass Company is a renowned and popular windscreen repair and replace Service Company. And like any other perfect service providing company, Autoglass is also pledged to its customers for providing superior services related to any windscreen problem. In the windshield business industry, Autoglass has already established itself as the leader company around the United Kingdom and European region. Statistics show us, Autoglass is being able to satisfy 92% of its whole customers. It has started long ago as a simple tiny family business and now Autoglass has five hundred branches. Main reason of its being successful is that it focuses mainly on the customers and prioritizes their demand and also solves their problem with great handle and care. Autoglass also ensures a healthy and suitable working environment for its employees. So overall, Autoglass has really been a great example about how one service providing company should be.
4|Page T ask 1 1.1 Explain the role of strategy, objective, mission, visions, goals and core competencies of Autoglass Mission of the Autoglass Company: Autoglass Company has come into existent with a view to helping people who own vehicles and also happen to have different sorts of problems with windscreen. And to do so, it insists on the customers satisfaction at the very first as without making them content, Autoglass can never be a successful and leading windscreen service providing company. And in order to do so, Autoglass tries its level best to provide the best service with latest and long lasting replacement and repairmen of windscreen. Vision of the Autoglass Company Its vision is always merged with its mission; which is to continue to deliver the best kind of service to its customers. So while making the ultimate vision, it also bear in mind about the mission of it. Very few companies are existed in this industry and so Autoglass needs to ensure that it can offer what others cannot. And for that, Autoglass is initiating to undertake some distinctive and effective boundaries. Surely the number of satisfying customer which is 92 percent at this moment, it wants to go beyond that and make it a perfect cent percent. Autoglass also looks to extend its service boundary beyond the United Kingdom and Europe. Core Competency Core competency means having a certain quality that its competitors don’t have. And that makes a company sit in a very convenient position. In this case, Autoglass has the ability to offer repair and replacement of any kinds of broken glass or damaged ones. This is where Autoglass exceeds all of its competitors. Along with all these services, Autoglass still ensures of providing the best possible customer care. No wonder that Autoglass has been in the leading position for a long time without the threat of taking its position so easily.
5|Page Strategic intent The strategic intent shows a conceptual projection of the future of the company, rather than the desired goal or expected outcome. This process infers that a bunch of possibilities and litheness in footings of staff enterprise, team contribution and alteration during different circumstances (Ivanauskiene, N, & Auruskeviciene, V., 2009). Strategic determined of Autoglass displays that they are the frontrunner of the standing market and the business is doing all the required actions to keep them on leading place. Role of Strategy of Autoglass Compilation as well as the dissemination of vision and operation is the primary task of strategic administration of Autoglass. This outlines express the raison d’etre of the organization. Compilation of strategy of Autoglass is made in such a way that the decided strategy maintains a specific time period for execution of that strategy. Objective and goals of Autoglass Repairing and replacing of broken windows as soon as possible and to acquire the customer satisfaction are the main objective of Autoglass. The goal that Autoglass has fixed is to provide there service to global customer and to enhance their business globally. Using the customer reputation they are expanding their business all over the Europe. Strategic Architecture of Autoglass Strategic architecture means to answer five separate questions about the fundamental process of making strategy of the organization. The questions are compilation of “What”, “What Else”, “What More”, “What Now”, “How” (Grant M. R., 2010). Autoglass prepare their strategy by answering this bunch of questions. 1.2 Review the vital issues involved in Strategic planning in Autoglass There are few issues that need to be addressed in regard to planning strategies (Grant M. R., 2010). As this industry is new comparative to the other service industry, new companies have a
6|Page possibility to start up a windscreen repairing service because the returns are attractive. So Autoglass might face competition in near future. Autoglass has repaired their aim on customer satisfactions by proper customer services. Currently they have acquired the largest level of customer approval and advanced their customer service in a milestone level only by restoring the broken windows with a limited cost. Autoglass is very much clientele oriented and they habitually try to enhance their level of services to avail in the affray. We can analysis the comparable benefits of Autoglass: Competitive advantage of Autoglass Autoglass holds the major share of the market and the market leader with their wide range of services provided for the customers and the company is growing day by day(Kotler 2006).Ansoff’s Growth Matrix can be used to analyze the competitive advantage of the company. Figure: Ansoff’s Model Looking at the Ansoff’s model, Autoglass can also learn a few things from here. It is quite difficult to be competitive in the market by doing the same thing over and over again. Here comes the fact of product diversification. Autoglass has a tremendous chance of introducing
7|Page couple of new products to its loyal customers. As it has already been popular amongst the people it should not be problem for Autoglass to get craze among the customers about the new products. In this relevant matrix, there are four different strategies, like: Market Penetration: Autoglass can use the push selling in the current market. It can do so by maximizing its market segments through increasing the buying volume and thus attracting more and more customers into its service. Product Development:As it has been saying that Autoglass can easily bring two or more new products to the market to get a strong hold of the whole market share (Autoglass Company 2013). It will definitely help the company to widen the target market and strengthens its position. Market Development: this particular strategy will enable it to bring more customer groups into its service arena and thus increase more market segments. It is called market development. Diversification: It is a very interesting idea of capturing the market. One can introduce a new product and it will hole the market share which would be decreasing gradually associated with the other older products. Autoglass has huge opportunity in terms of getting bigger profit margin. At the moment, it can emphasize on increasing its growth rate by gaining more customers and thus improving on its revenue sector. In the meantime, Autoglass can set a concrete target for new customers. For them, it will bring new products that will be suitable for the market at that time. While manufacturing new ones, Autoglass can look for the servicing area to be improved and expanded. If it speeds up a little bit with observing the potential market overseas, it can set a huge market for its product, services and other facilities. What is Top down&Bottom Up? Top Down strategy is basically the entering into a particular system to observe and gain essential insight; which will be its various vital sub systems. Autoglass is having a real go about utilizing this strategy into its business operation.
8|Page Bottom Upis actually to gather and collect some important systems together in order to approach towards a complicated system. Autoglass is also using this approach with great success. Behavioral Approach for Autoglass: In order to get the most out of the resources and to prevail in the coming future Autoglass need to approach in the Top-Down method. Autoglass is a growing company in the area of service industry and in near future the services they are providing will not be sufficient enough to hold the current position in the market. They have to improve their product quality so that they can grab a diversified market 1.3 Explain minimum three planning technique for Autoglass Autoglass can improve its profit margin and also satisfy its customer with even greater means if it decides to use some strategic approaches carefully. Some of the techniques are: I. BCG Growth Share Matrix: Autoglass can manage its products categories in such an arranging manner that it will help it manage its entire products in an established portfolio. This matrix approach will help a company to know about when to invest more cash or when to withdraw an older product from the current market. It can also helpa business organization about when to launch a brand new business venture; if it wishes to make more profit using its name and reputation. II. PIMS (Profit Impact of Market Strategy): PIMS provides an exclusive database where various solid evidences have been put to support all the rules and policies to accomplish expected competitive advantage. III. SPACE:SPACE means Strategic Position & Action Evaluation Matrix. It is a useful planning technique to realize the change of market requirements and how to respond to this change without affecting its current business operation. If the Autoglass Company can be taken as consideration, for an organization like this, aggressive strategy should be pursued, as it has been in the leading position and so far meeting the customer satisfaction quite well. SPACE technique is also useful for analyzing the SWOT (Strength, Weakness, Opportunity & Threat).
9|Page T ask 2 2.1 Produce an Organizational Audit for Autoglass SWOT Analysis Strengths • Low cost • Safety • Visual Clarity • Avoiding further damage Opportunities • Increasing growth rate • High presence in emerging economy • New Product Figure: SWOT Analysis Strengths Autoglass provides supreme service at low cost. Products attributes are high. Replaced and repaired glass offers equal quality service like the first ones Weakness Autoglass doesn’t promote its brand well enough. Its intensity to of not taking risk.
10 | P a g e Opportunities As fewer companies are providing windscreen service, Autoglass has a great opportunity to increase its growth rate to a big level. Autoglass can also introduce new products to attract new target market. Threats Suppliers play huge role in this kind of business. So it can be appeared difficult to identify quality suppliers. Sometimes geographic condition makes one’s business operation complicated. Govt. policies shape the business venture to great extent. 2.2 Carry out an environmental audit for Autoglass using at least two approaches PESTLE is a perfect way to understand a business company like Autoglass as an organization. While performing operation, several factors need to be taken concern about. And PESTLE comes and plays a pivotal role here. As a whole any industry has the ability to modify the factors but a single company can never affect those factors alone. But through this, each one of them gets affected. This approach also helps any company to reduce its threats while maximizing upcoming and current opportunities. Here is the PESTLE analysis: Political Political climate varies from country to country and influences one’s business planning and overall strategies. Taxation policies sometimes make one business company to change its strategies to enter into a certain region or area. Business operation always lies on the fact of Govt. stability. Economical Buying capacity of the citizens of the state where a company aims to operate its business functions influences it about how to run it.
11 | P a g e The levels of the economic activities that people are used to perform. Socio Cultural What people prefer and what is the common life style of then often define an organization that how to operate there. There must be some unavoidable customs and social norms that one has to maintain at first if it wishes to enter into the market of them. Technology What technologies are available at that particular state? Is it the current ones or the traditional ones? It happens to influences the total business operation to great extent. What is the level of technological development there, often affects the optimal level of profit margin (Kerry 2006). Legal Govt. rules and regulations may restrict the way of doing business of a company. Law related to the customers and employee treatment is a must to abide by; if one wants to do business there. Environmental Company has to look out for the environment where it establishes its manufacturing process. The entire elements of climate like air, water must be kept out of pollution and also eco system has to be continued in its own way. Porter’s 5 forces analysis is a type of analysis which determines and helps the management to understand the overall context of the industry. Porter’s 5 forces are: 1. The threat of new entrants Economies of Scale Access to Distribution Channel
12 | P a g e Government Policy 2. The bargaining power of customers Number of supplier Companies Threat of Backward Integration 3. The threat of substitute products Prices Access 4. The amount of bargaining power suppliers have Number of Buyer Companies Threat of forward Integration 5. The intensity of the competitive rivalry Number of Competitors Rate of Industry Growth Diversity of Rivals 2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass The Stakeholders’ grid: High Influence (Latents) High Influence High Interest (Promoters) Low Influence Low Interest (Apathetic) Low Influence High Interest (Defenders) Low Interest Figure: Stakeholders’ Grid
13 | P a g e A.The top right part refers to the stake holders who influences the strategies and promote the products. B.The top left part refers to the stakeholder who influences strategies but they posses’ low interest in the organization. C.The bottom right part refers to the stakeholders who have high interest but low influence in the organization. D. 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.
14 | P a g e T ask 3 3.1 Analyze possible alternatives strategies relating to substantive growth, limited growth and retrenchment 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. 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. Substantive Growth HorizontalIntegration: In horizontal integration a business forms or obtains output facility of related or complementary goods (Melody, Y. & Kevin, H., 2000). Occasionally it may likewise happen that a business buys one of its contestants and form incorporation. Autoglass might pattern such addition by connecting with other output that are associated to its living products.
15 | P a g e VerticalIntegration: In vertical integration a business links with the businesses or associates of the provide string of links and in numerous situations all the partners of the string of links stay under a particular proprietor (Melody, Y. & Kevin, H., 2000). Autoglass might enlist into upright integration by connecting with the suppliers and vendors. RelatedDiversification: When a company elaborates its enterprise with some diversification in the existing product line (Arazy, O, & Gellatly, I., 2012). The new productions are alike to the living products. UnrelatedDiversification: It is the method when a business enlists into diversification by inserting new goods and services that doesn’t match with the existing merchandise line (Arazy, O, & Gellatly, I., 2012). It can be unrelated diversification if Autoglass begins selling dwelling window crystal or attractiveness mirrors. Limited Growth 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 nonbuying 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.
16 | P a g e Disinvestment Retrenchment: A scheme used by corporations to decrease the diversity or the overall dimensions of the procedures of the company. This scheme is often utilized in order to cut expenses with the aim of becoming a more economic steady business. Turn around: Turnaround administration is a method dedicated to business renewal. It uses investigation and planning to save worried companies and comes back them to solvency. Turnaround administration engages administration review, undertaking founded costing, root malfunction determinants investigation, and SWOT analysis to determine why the company is falling short. In alignment to make a comeback in the commerce organizations need to find out the origin of the troubles and founded on those troubles they need to make up new schemes and policies to overcome those troubles. Liquidation: When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are circulated to shareholders. Liquidating a firm is the last stage of the firm’s survival. If no alternate schemes comply with the associations then it needs to sell its assets and then pay up the shareholders and stakeholders. Divestment: The method of trading an asset. Furthermore known as divestiture, it is made for either economic or social goals. Divestment is the opposite of buying into. It is the process of dragging out the assets in procedure and sells those to meet the gap in the financial problems and in alignment to liquidate the association divestment is necessary for any organization. Porter’s Generic Strategy Michael Porter established a generic strategy for all the business companies to use those for their competitive advantage. There are three of them. They are as followed: a) Overall Cost Leadership: Autoglass uses this strategy to help itself for grabbing more and more customers in the current market. It also helps the Autoglass Company to enter into the new market which is suitable or potential for the windscreen service. b) Differentiation: Autoglass is successfully differentiating its entire service in order to focus on satisfying customers and improving the services.
17 | P a g e c) Focal Point: its focus is now spreading in the whole world and it hopes to continue to make its future customers happy like its current ones. 3.2 Select an appropriate future strategy for Autoglass Autoglass has to type new methods and turn out new merchandise to boost their market section, so they will hold their leading position within the market. Therefore so as to create a future strategy they will come back up with some core development in conjunction with new merchandise and higher services and grab a protracted market section. Autoglass ought to follow the vertical growth strategy to boost their business. They might provide alliance to alternative automakers and will mix with them so as to grab a brand new market section. As Autoglass may be a sturdy company itself, they will choose Associate in nursing alliance which may cope up with their capabilities and facilitate to develop the business. This may facilitate Autoglass to specialize in the client privileges and client satisfaction. Starting new product with gone market isn't the enough and single answer for the longer term strategy. Autoglass ought to look for a continuing review from the customer’s facet to spot their lacking in conjunction with customer’s expectations. This may facilitate the management to distribute the responsibilities to the worker so as to produce additional satisfaction to the client. At present Autoglass has ninety two rate of their client satisfaction. With the growth of business this rate can be hampered or slightly fluctuate. Autoglass got to keep that in mind that client satisfaction is their core ethical of business. They will additionally give five quarters commit to cope up with the modified state of affairs within the business space and prevail within the competition.
18 | P a g e T ask 4 4.1 Compare the roles and responsibilities for strategy implementation of Autoglass CEO of acompany is supposed to be responsible to turn the concepts of business strategies into reality and insist on making a mark in the business industry (Kotler 2006). To execute effective and efficient policies, all the groups & sub groups in the organization are required to be united at each stage of the policy making and planning on tactical decision which will result in a well established plan and the diversification or modification of the tactics are quite possible. For achieving the expected target market share,transparent, clear and reliable statements are necessary. Communal visualizations are considered to be required for indentifying and checking the hypotheses, bases of the policies and propose actions and alternatives. All the top level managers need to motivate and inspire the employees to execute the policies that are undertaken efficiently and effectively. Satisfying the target achievement will result in employee satisfaction and coherence in job environment. 4.2 Evaluate resource requirements to implement a new strategy for Autoglass In order to judge the resources of Autoglass, the organization has to select the precise materials and place them within the right departments to provide the services (Michael A., 1999). Autoglass has prioritized its human resources as a result of because it could be a service supplier of windscreens and needs a large man power to fulfill the demand of the shoppers. Autoglass already has 159 client advisors operating 24/7 to fulfill the shoppers demand. Autoglass additionally has fleet union which needs man power additionally and that they area unit cautious regarding their manpower. Therefore Autoglass is payment vast quantity in coaching and developing the abilities of the staff to supply the most effective service within the trade. Autoglass maintain the best customary of NVQ (Arazy, O, & Gellatly, I., 2012).
19 | P a g e In concern of components and time allocation Autoglass is the premier business in the commerce because they are utilizing the best components to ensure the durability and security of the customers and furthermore sustaining time in consigning the service. In the granted scenario the Autoglass business is effective in their resource designing and assessing the resources methodically to supply the best service. 4.3Discuss targets and timescales for achievement for Autoglass to monitor a given strategy Evaluation of the benchmark outcomes: Quarter The business should be convey up with the strategies and find out the feasibility 1 of the schemes if the schemes would contemplate in the anticipated conclusion. They can take the feedback of the customers and find out what additional they are looking for in the windscreen fixing service. There should be every week and monthly supervising by the line managers of the divisions.There should be every week and monthly supervising by the line managers of the divisions. Quarter Throughout the period Autoglass should review the customer’s response and 2 apply the desired design to elaborate the business. The line managers should be to blame for assembling the feedbacks and acting in the direction of it. Quarter This is the quarter of gathering data and takes study note on the implemented 3 strategies. The administration should find out the gap between the expected outcome and genuine outcome. The GAP might occur because of lack of coordination or inefficiency of the workers and line managers. Quarter Management should coordinate a teaching program to fill in the gap. So that the 4 employees can accomplish the association goal in yearned manner. Quarter In this quarter the association might achieve the yearned outcomes founded on the 5 scheme making and the implementation method. If the administration goes wrong to accomplish the objectives through the strategies, then they have to start activities founded on information like teaching the workers or supplying support to them. Conclusion
20 | P a g e Customers of the Autoglass Company are way happier than any other customers of any other windscreen companies in the region where Autoglass is operating (Schultz 2006). Autoglass is constantly winning hearts of the customers and looking to expand its business worldwide to make the peoples special throughout the world. It also tries to be consistent when it comes to delivering services. As very few companies are there for Autoglass to compete with, Autoglass is looking carefully and managing cautiously its overall business and keeping an eye on functioning its business worldwide.
21 | P a g e Reference Autoglass Company. [ONLINE] Available at: http://www.autoglass.co.uk/Glass-repair-andreplacement.186.0.html. [Accessed 11 November, 2013]. Ivanauskiene, N, 2009, Change Management and Its preparation', Economics & Management, pp. 407-412. Kerry, G. (2006). Marketing:An introduction (8thed.). New York: Prentice Hall. Kotler, P., 2000. Marketing Management. 5th ed. New Delhi: Prentice hall of India. Schultz, H., (2006). Discover the Traits of Top Management [online]. S.N.[Accessed 30 November, 2013].