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Published on March 9, 2014

Author: rajib09ku

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AN ASSIGNMENT ON BUSINESS STRATEGY Submitted by: Submitted to Date:

Executive Summary: In 1984 two companies decided to merge their asset and forge a partnership they were the Windshields and Autoglass with forging this merger they are now satisfying their customers continuously with quality product and services. This unique approach to business has led to their winning the heart of the customers with ubiquity. The main ideal of business is profit making, but they did deviate from this path to make quality and customer satisfaction their main point of focus which have led to their success. The prime and core objective of this report is to analyze and interpret the strategies adopted by Autoglass in their successful run to glory. In this report we discuss different strategies and suggestions on the theories applied by this company. The tactics that are adopted by the visionary Autoglass can be better understood in this form and thereby turning into a effective learning source of business strategies. 1

Table of Contents Executive Summary: ....................................................................................................... 1 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 ......... 6 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 ....................................................................................................... 11 Task 3 ........................................................................................................................... 12 3.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES RELATING TO SUBSTANTIVE GROWTH, LIMITED GROWTH AND RETRENCHMENT ................ 12 3.2 SELECT AN APPROPRIATE FUTURE STRATEGY FOR AUTOGLASS ........... 15 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 ................................................................................ 17 4.3 DISCUSS TARGETS AND TIMESCALES FOR ACHIEVEMENT FOR AUTOGLASS TO MONITOR A GIVEN STRATEGY ................................................. 18 Conclusion: ................................................................................................................... 19 References: ................................................................................................................... 20 2

Task 1: 1.1 EXPLAIN THE ROLE OF STRATEGY, MISSION, VISIONS, OBJECTIVE, GOALS AND CORE COMPETENCIES OF AUTOGLASS Mission:The mission with whomAutoglass entered into the market is very simple and professional (Arazy, O, &Gellatly, I., 2012).  Maximum satisfaction of consumers  Best quality product with quality service  Dream worthy objective on the road to success Vision: The vision of a company is the sight they set for themselves and are always trying hard to surpass the target and achieve something that is worth looking up to (Arazy, O, &Gellatly, I., 2012).  Complete customer satisfaction  Potential organizational growth  Precise strategically support Core Competencies:Autoglass says tell us the type or model of the glass we are there to repair it for you (Autoglass Company). This has been and will be the core competency of the organization for years gone and to come. Strategic Intent:The strategic intent of Autoglass is to establish itself as a outcome of the market foremost wholeheartedly. the notion of strategic intent suggests that there is a general outlook on while the enterprise should to to be going rather than a unquestionable affirmation of aide in Nursing foretold deduction and this proposes that there should to be galore of flexibility central the affirmation to permit for employees start, cluster facilitate and adaptation in light-weight of changed attenuating elements. They‟re doing all the undertakings to stay foremost. Role of Strategy of Autoglass:The foremost task in strategic management is usually the compilation and dissemination of the illusion and so the method affirmation. This summarizes, in essence, the comprehending of an association (Hoffman, K. Douglas, 3

Scott W. Kelley, and Holly M. Rotalsky.2009). Autoglass has assembled their functions in topic making in AN extremely approach that the concepts sustain AN unquestionable time span focused the execution (Autoglass Company). Objective and goals of Autoglass:The major aim of Autoglass is to satisfy their client by fixing or refurbishing broken windshield of any vehicle.They are increasing their enterprise by being unique to the purchasers. 1.2 REVIEW THE VITAL ISSUES INVOLVED IN STRATEGIC PLANNING IN AUTOGLASS In every company there are some strategic planning issues which are important and can be distinguished (Ivanauskiene, N, &Auruskeviciene, V., 2009).Autoglass is putting their focus on the customer‟s fondness and clientele service. They have reached the largest satisfaction degree in the service commerce just by refurbishing the windscreen in a cost productive way. Autoglass should be clientele oriented and try to increase their service portfolio in alignment to rendezvous with the affray (Kupritz, V.& Cowell, E., 2011).Strategic planning issues can be distinguished using Anshoff‟s Growth Matrix. The growth matrix can also be labeled as a marketing tool which consists of four different marketing strategies which are based on new product input and existing product (Kotler, P., 2000). The analysis of the growth matrix is: i. Market Penetration: all through this part Autoglass will boost its market segments by enterprise an allotment of their merchandise and request an allotment of customers. A market design herewith a enterprise searches for to recognize larger dominance in the market all through which they actually are giving (Melody, Y. & Kevin, H., 2000). This conceives normally focuses on apprehending a larger share of aide degree living market. ii. Product Development: Market growth can be increased by Autoglass by introducing developed or new products to the consumer market. iii. Market Development: The strategy to target new segments of customers can enlarge the size of the existing market of Autoglass. 4

iv. Diversification: This strategy is a risk aversion strategy in which the company can introduce a new product to attract the customers. Figure: Anoff‟s Growth Matrix For the continuous flow of business growth, Autoglass needs to understand the market very well and adopt a strategy which best suits their need. Top-Down and Bottom-Up approach of Autoglass: Informal Planning:Casual designing is that the method whiles the supervisor or foremost of an assembly develops an inspiration with no one accepted structure and rigid associations (Grant M.R. 2010). Certain as blasting instant things managers use this approach while it's conditionally significant to conceive any prescribed structure of close to up with or the timeline for conceiving isn't adequate. It‟s important to command short allowance objectives of the association Top-Down: The breaking down of a strategy into small sections and getting a close look is top down (Grant M. R., 2010). This approach is used by Autoglass to fulfill objectives in developing product. Bottom-Up: A number of systems combined and integrated to create an integrated mega system (Grant M. R., 2010). This approach is used by Autoglass to develop their customer service. 5

Behavioral Approach for Autoglass: Autoglass have to come to up with some developments for his or her merchandise and market in alignment that they could a wide-ranging marketplace for the purchasers. Their approach should be the top-down procedure in alignment to capitalize their assets and to handle the affray inside the future. Autoglass could be a growing enterprise interior the enterprise and thus the service they're undertaking won't be decent for them to comprise on to the position central the market. 1.3 EXPLAIN MINIMUM THREE PLANNING TECHNIQUE FOR AUTOGLASS For Autoglass Company, three strategic techniques are suggested below: 1. Profit Impact of Market Strategy (PIMS) 2. BCG Growth Share Matrix 3. Strategic Position and Action Evaluation Matrix 1. Profit Impact of Market Strategy (PIMS):The establishment of feasibility and affirmative influence of a business scheme through investigating its impact in the market is the reason of PIMS (Wheelen& Hunger, T.L. &J.D., 2013). There are 6 foremost localities of concentration which investigates the impact:  Type of the business environment  Competitive position  Production process facility  Budget allocation  Strategic works  Operating outcomes 2. BCG Growth Share Model:using the BCG Growth model, Autoglass can categorize their product into four categories to maintain better performance and understanding of the products (Kotler, P., 2000).The division of the product into 4 categories has been suggested by the model on the product present and market sales. 6

Placing goods in the BCG growth share matrix Autoglass will face 4 types of consequences in the market. And they are: For substantial growth and expansion of market share in business, some strategies might be adopted by Autoglass to gain the upper hand in the market (Gómez, L, & Ballard, D., 2013). Of which one strategy can be the BCG growth model which categorizes the products and services in lieu with their position in the market. Earlier in the report the explanation of this model has been shown. The management needs to peer deep into the market and analyze their existing product and services and calculate their expected future return (Kotler, P., 2000). Now they should categorize the products, that which gives the market leadership should be “Star”, the product with maximum sales be “Cash Cows”, the declining product should be “Dogs” and those products between „Stars‟ and „Dogs‟ should be “Question Marks” and efforts should be made to bring out the best possible outcome out of them. Figure: BCG Growth Model a) Cash Cows: Products having huge market share and producing maximum sales. b) Stars:Products leading the market in market share are called stars. c) Dogs:Productshaving low in sales in a poor market. d) Question Marks: Products having that are in a high growth market but with low market share and still having probability of being Stars. 3. Strategic Position and Action Evaluation Matrix (SPACE): Understanding the requirements and demand in the market and working in accordance with the 7

strategies is the focal point of SPACE matrix (Wheelen& Hunger, T.L. &J.D., 2013). The current position of the company in the market helps to understand and help the management design required steps to growth 8

Task 2 2.1 PRODUCE AN ORGANIZATIONAL AUDIT FOR AUTOGLASS Using SWOT Analysis, we can audit the environment for Autoglass: Strength Opportunity Weakness Threat Strengths:Autoglass is a company which offers the best services at a low cost but ensuring quality safety features. The windscreens have superior visibility which is enhanced due to the presence of quality glasses and reduces the chance damage to it. Weaknesses: If there are strengths then there are weaknesses. The greatest weakness of this company is that they are not interested in promotions and Lack of advertisement can lead to their anonymity. Opportunities: Very small numbers of firms are present in the market which paves the way for substantial growth. There is always room for new product in the market and if a channel opens then it should be occupied. Threats: Threats are a part and parcel of business, with the competition getting tougher by the second quality supplier are hard to come by and again there is the tag line of high price to be paid. Geographic location can also be a threat if the business is not focused accordingly. 9

2.2 CARRY OUT AN ENVIRONMENTAL AUDIT FOR AUTOGLASS USING AT LEAST TWO APPROACHES For a business to analyze its surrounding situation, an organization needs to go through PESTLE Analysis (Wheelen& Hunger, T.L. &J.D., 2013): Political: Various political decisions influence business in different countries or regions. The change of governments also affects the conditions of a market. The impact of taxation policies on business is also worth mentioning. Economical: In a region the earnings ratio and buying capacity of the consumers influence the sales. In a densely economical region changes affect the business heavily. Socio-cultural: Preferences in lifestyle made by the consumers creates impact on the industry. Social cultures, beliefs and norms that prevail in the society also can affect the business. Technological: In this era of technological advancement and trend, designs are manipulated with advance technology. Legal:There are various laws which are based on consumer rights and need to be followed. The society is bound by law and order of which legal restrictions are an influential part and needs to be followed strictly. Environment: The weather, climate change, demography etc has a great impact on business. However, it is important to analyze Porter’s 5 Forceswhich are factors in thepotential rising situations in businesses (Kotler, P., 2000). The forces are: a) Threat of new entrants b) Bargaining power of customers c) Bargaining power of the suppliers d) Threat of substitute products e) Intensity of rivalry 10

2.3 EXPLAIN THE SIGNIFICANCE OF STAKEHOLDERS’ ANALYSIS IN RELATION TO AUTOGLASS Stakeholders can be divided into four categories: a) Latent: Their influence on the business is a significant but having low interest in the company‟s business. b) Promoters: They have quality influence and interest on the company so they often promote the company‟s product that they supply to. c) Defenders: They have high interest on the company but lacks influence on the strategies. d) Apathetic:They have neither interest nor influence. 11

Task 3 3.1 ANALYZE POSSIBLE ALTERNATIVES STRATEGIES RELATING TO SUBSTANTIVE GROWTH, LIMITED GROWTH AND RETRENCHMENT Market Entry Strategy: Organic Growth:It minimizes any development that's gained by pacing into the other enterprise or amalgamation or acquisition. When an enterprise association undergoes development over its own enterprise that is as identical because the beginning of the organization, it's renowned as organic development. Merger:Merger is the system by two enterprises gets joined and turns into one entity through mutual consolidation. Autoglass started through such amalgamation. Acquisition:This is the method where one accurate enterprise buys another whole enterprise and assemblies up itself because the proprietor. Throughout this procedure 100% or adjacent 100% ownership yearns to be came by. Strategic Alliance: This approach is completely an concept that is situated between the concept of organic development and acquisition. This is the method where two or more companies acquiesce upon kind of similar objectives and share every other‟s assets to attain those objectives. Licensing:It is the design through that a mother enterprise (licensor) allows another enterprise (licensee) to use its trademark and deal the merchandise or services on the groundwork of affirmations on many time spans. The time span adopts the authorizing fee that desires to be paid to the licensor. Franchising:It is the scheme, through that a enterprise profits from the correct to use another company‟s trademark, enterprise type, methods while the franchisor provision the correct to the franchisee. For getting market share overseas, Autoglass may use this approach by circulation franchises in distinct locations. 12

Substantial Growth Strategy: Horizontal Integration:In degree integration an enterprise diversity or arrives by yield facility of affiliated or complementary merchandise (Melody, Y. & Kevin, H., 2000). rarely it's going to additionally occur that a corporation buys one amidst its competitors and pattern integration. Autoglass would likely pattern such integration by connecting with alternate output that's affiliated with its dwelling merchandise Vertical Integration:Autoglass would expect employ into integration by connecting with the suppliers and vendors. In integration a company additions with the businesses or partners of the offer string of attachments and in some cases all the partners of the string of attachments contain below one proprietor (Melody, Y. & Kevin, H., 2000). Related Diversification:When an enterprise elaborates its enterprise with some diversification interior the house line of merchandise. The new productions rectangle address alike to the present merchandise. Unrelated Diversification:It will be unrelated diversification if Autoglass starts mercantilism house window crystal or attractiveness mirrors. It is the method once an enterprise new employees into diversification by inserting new merchandise and services that doesn‟t accept as true the dwelling merchandise (Arazy, O, &Gellatly, I., 2012). Limited Growth: Market Penetration:It means that penetrating the comparable market by giving comparable worth against the worth of the competitors. It‟s commonly utilized to entire sales development.This approach is pledged to instantly hit the competitors by benefiting their customers. Market Development: It proposes that aiming at new customer needs and attracting the non-buying customers of that segment. It helps to expand the market share by adding new segment of shoppers. It‟s potential for Autoglass to develop the market by expanding the enterprise geographically. 13

Product Development: It means that developing new merchandise that do not live presently and so attracting customers to get an allotment of diversity of merchandise or services. Innovation: It proposes that searching out a solely new would like of the shoppers inside the market and innovating replacement merchandise or service to rendezvous that require. Disinvestment: Retrenchment:A theme utilized by companies to scale back the variety or the last dimensions of the procedures of the business. This design is usually utilized so as to slash prices with the aim of changing into an supplemented economic steady enterprise. Turn around:if a firm terminates or bankrupts, its assets rectangle assesses documented and furthermore the enhancement buys creditors. If no alternate notions befit the associations then it should deal its assets then ante up the shareholders and stakeholders. Any leftovers are distributed to shareholders. Liquidating a firm is that the last stage of the firm‟s survival. Liquidation:When a firm is terminated or bankrupted, its assets rectangle assess documented and furthermore the improvement buys creditors. Any leftovers are distributed to shareholders. Liquidating a firm is that the last stage of the firm‟s survival. If no alternate concepts befit the associations then it should deal its assets then ante up the shareholders and stakeholders. Divestment:It the method of pulling out the assets operational and agreements those to rendezvous the gap inside the monetary issues and so as to liquidate the association divestment is important for any association. Divestment is that the converse of buying into. The procedure of exodus of buying into is divestment. Moreover cited to as divestiture, it's conceived for either economic or communal goals. Michael Porter’s Generic Strategy: 14

For the leadership in the market Michael Porter suggested 3 types of strategies for expanding thebusiness as well profit projection (Kotler, P., 2000). 1. Cost Leadership: Competitive price for product and service. Decrease price to gain sales maxima More sales more profit 2. Differentiation: Regular product with additional offer. Out of the box offers 3. Focus: Focus on a single sector Improve and expand Gain customer satisfaction 3.2 SELECT AN APPROPRIATE FUTURE STRATEGY FOR AUTOGLASS In alignment to perplex the market segment Autoglass enterprise needs new notions and new parts which can be cooperative for them to flourish the market. So contemplating future conceives they can enquire their market need and arrive to up with some development of the new merchandise to diversify their services and arrest a new market segment. Autoglass should be following the upright integration conceive to augment their enterprise. They can accelerate with coalition with automakers to apprehend the new market segment. Autoglass is in a mighty place and they might be proficient to accelerate with the coalition with new associations. Because this conceive is befitting for the associations development and their center capabilities acquiesce with the conceive. Coalition with affiliated associations will endow Autoglass to put more aim on the 15

customer‟s fondness and can develop new merchandise class to fulfill the craves of the customers Only starting new merchandise line and increasing the market will not solely help the Autoglass enterprise to elaborate in the market. Autoglass should wholeheartedly reassess the answer of the customers so that they might realize what the customers are looking for and to what grade of acceptance customer‟s crave. The Autoglass is at present have a 92% acceptance rate amidst the customers. But with expansion of the enterprise the acceptance rate might fluctuate and Autoglass need to assemble a timescale for the new goals and elongation of the new services. considering the position in the enterprise, Autoglass can supply a 5 quarters conceive that will be plentiful for Autoglass to contend up with the affray and sustain coalition with the automakers to perplex the enterprise. Autoglass can benchmark next 5 quarters to comply with notions they have taken and fulfill the firm promise to the customers. 16

Task 4 4.1 COMPARE THE ROLES AND RESPONSIBILITIES FOR STRATEGY IMPLEMENTATION OF AUTOGLASS If the conclusions are taken flawlessly and wisely; and if those decisions are executed correctly then the association will should flourish with a vast development and big amount of earnings (Arazy, O, &Gellatly, I., 2012).Now a day‟s one of the crucial matters of doing business is “Strategy and principle Execution”. The peak level administration is not for doing only their own job, rather they need to disperse their eye all through the entire association and have a dream of every lone threat of distant future. They have to arrange new plans and execute diverse strategies to overwhelm every obstacle of anomaly market positions (Gómez, L, & Ballard, D., 2013). For any business like Autoglass, to realize the market positions and to assess every possible scheme is the foremost obligation and blame of administration and this is a very significant role for the organization. The figure-head of any organization, CEO or President or Managing controller has to play a crucial function in the organization (Arazy, O, &Gellatly, I., 2012). He furthermore desires to be willing to sustain a harmony in the workplace and the output of the employees which ensures achievement of his conclusions.Though that is a complex job but is a important one. Before attending any prescribed discussion he desires to investigate the present and future condition of the association contrasted with the market situation (Dessler, G., 2000). Autoglass management should compute the trading and sales ways to double-check the best market share and sales. The sales cluster should to be evolved throughout a means which will extend with the affray interior the market. Creative advertisements in applicable localities would probably facilitate an allotment all through this address. The center competencies should to be evidently focused to attractiveness the shoppers. 17

Outdated or fabricated data can cause wreck to any objective. So apart from the interior duties the administration desires to hold eye on the out-of-doors world and anxiety about all the applicable news of the market.Furthermore, before finalizing any scheme the figure-head need to have genuine access to the reliable statistics and data (Arazy, O, &Gellatly, I., 2012). 4.2 EVALUATE RESOURCE REQUIREMENTS TO IMPLEMENT A NEW STRATEGY FOR AUTOGLASS Share of adequate assets is the most important key for the production and supportive undertakings. A business administration desires to have a clear concept about the place from where he will make or import necessary assets and how could he assign those assets. Here management should recognize the common place where greatest piece of the output are being made and what are the services depends on that part (Dessler, G., 2000). For Autoglass, they give the most priority on human assets and they believe that is the key resource and using that asset they assist the customer better than their competitors. To supply the best merchandise they double-check highest security and durability. Autoglass put much more share than other businesses to own the best raw components for glass (Arazy, O, &Gellatly, I., 2012). As per the granted case description, Autoglass is a successful company for sustaining the value and assigning adequate and good quality of raw materials That’s why they own 159 clientele advisors employed 24/7 for serving their customers (Arazy, O, &Gellatly, I., 2012). Fleet service is one of their added clientele services which make them special. Autoglass is sanctioning more cash for their further enhancement in worker training and quality services. They currently scored 92% customer satisfaction. 4.3 DISCUSS TARGETS AND TIMESCALES FOR ACHIEVEMENT FOR AUTOGLASS TO MONITOR A GIVEN STRATEGY Evaluation of the benchmark outcomes: 18

Quarter The business should be bring up with the schemes and find out the 1 feasibility of the schemes whether the schemes would reflect in the anticipated conclusion. They can take the response of the customers and find out what else they are looking for in the windscreen fixing service. There should be weekly and monthly supervising by the line managers of the divisions Quarter Throughout the time span Autoglass should reassess the customer‟s 2 response and request the craved conceive to perplexing the enterprise. The line managers should be to accuse for assembling the feedbacks and depicting in the main heading of it Quarter This is the quarter of accumulating facts and figures and takes research 3 note on the directed schemes. The management should find out the gap between the foreseen outcome and genuine conclusion. The GAP might happen because of need of coordination or inefficiency of the employees and line managers Quarter Management should organize a training program to fill in the gap. So 4 that the employees can achieve the organization goal in desired manner. Quarter In this quarter the association might accomplish the yearend results 5 founded on the design making and the implementation method. If the administration falls short to complete the objectives through the strategies, then they have to start activities founded on facts and figures like educating the workers or delivering support to them Table: Evaluation of the outcomes 19

Conclusion: Who have got their windshield broken; they can be out of concerned because there is a business entitled Autoglass who are making some high quality glass. For years the company acquired a huge believe pattern their customer by providing quality product. They are providing best glasses with best services. They advanced their services as high as it pushed away the other competitors far behind. Autoglass started the needed and effective schemes to hold ahead in the rush. Surely they are going more far ahead in the coming future. 20

References: Arazy, O, &Gellatly, I., 2012, 'Corporate Wikis: The Impact of Autoglasss in the Windscreen industry, vol. 29, no. 3, pp. 87-116. Autoglass Company. [ONLINE] Available at: http://www.autoglass.co.uk/Glass-repairand-replacement.186.0.html. [Accessed 18 November, 2013]. Dessler, G., 2000. Human Resource Management. 5th ed. Delhi: Pearson. Gómez, 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 Grant M. R., (2010) – Contemporary Strategy Analysis, Amazon.co, Wiley Higher Ed; 7th edition. Ivanauskiene, N, &Auruskeviciene, V 2009, Change Management and Its preparation', Economics & Management, pp. 407-412. Kotler, P., 2000. Marketing Management. 5th ed. New Delhi: Prentice hall of India. Wheelen& Hunger, T.L. &J.D., 2013.Strategic Management and Business Policy. 5th ed. Delhi: Pearson. 21

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