Published on March 9, 2014
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Table of Contents EXECUTIVE SUMMARY : ............................................................................................................ 2 TASK 1 ...................................................................................................................................... 2 1.1 Explain the role of strategy, mission, visions, objective, goals and core competencies of Autoglass .......................................................................................................................... 2 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 ...................................................................................................................................... 8 2.1 Produce an Organizational Audit for Autoglass ............................................................. 8 2.2 Carry out an environmental audit for Autoglass using at least two approaches ............. 8 2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass ................. 12 TASK 3 .................................................................................................................................... 13 3.1 Analyze possible alternatives strategies relating to substantive growth, limited growth and retrenchment ................................................................................................................. 13 3.2 Select an appropriate future strategy for Autoglass ...................................................... 16 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 ........................................................................................................................... 21 REFERENCES ........................................................................................................................... 22 1
EXECUTIVE SUMMARY: Autoglass Company has become the largest windshield replacement and repairing service provider in UK. Their main focus of satisfying customers begets a customer satisfaction rate of 92% according to the research. Presently being the market leader, they possess around 500 branches serving all over Europe.Autoglass maintains a nice affiliation between the customers and workers because they believe that if employees are happy in Autoglass then they are going to serve the customers additional with efficiency and it will turn in the revenue. In this research various issues related to the strategic planning of Autoglass, types of consequences they face, various opportunity maximization methods, alternative strategies and the evaluation of resources are discussed briefly. TASK 1 1.1 Explain the role of strategy, mission, visions, objective, goals and core competencies of Autoglass Mission of the Autoglass Company Providing windscreen services to the customers and thus to satisfy them, it is the main mission of Autoglass Company. The vision of the organization is also planned with the mission of satisfaction of the customers. Vision of the Autoglass Company Highest level of customer service - that is the main vision of Autoglass Company. Their customers have a 92% satisfactory rate among the customers. It has become possible with their widespread network of customer care. This strategy will help this gradually developing company to define the strategic boundaries. 2
Core Competency Autoglass Company can repair or replace any kind of broken or damaged glass of any modeland it is the core competency of the company. Fleet services are providedto the customers to repair or replace any kind of broken or damaged glass. Strategic Intent The notion of strategic intent suggests that there's a general outlook on while the enterprise should to be going instead of a unquestionable affirmation of aide in Nursing foreseen conclusion and this suggests that there should to be galore of flexibility inside the affirmation to allow for workers start, cluster help and adaptation in light-weight of altered attenuating constituents (Hoffman, K. Douglas, Scott W. Kelley, and Holly M. Rotalsky.2009). The strategic intent of Autoglass is to ascertain itself because the market foremost wholeheartedly. They are doing all the undertakings to stay foremost. Role of Strategy of Autoglass Autoglass has assembled their functions in theme conceiving in an exceedingly approach that the notions sustain an unquestionable time span centered the execution (Autoglass Company). The foremost task in strategic administration is often the compilation and dissemination of the illusion and therefore the method affirmation. This summarizes, in essence, the comprehending of a business (Hoffman, K. Douglas, Scott W. Kelley, and Holly M. Rotalsky.2009). Objective and goals of Autoglass The major target of Autoglass is to satisfy their customer by fixing or replacing broken windscreen of any vehicle. The aim of Autoglass is to make their business grow and assist the global clientele (Autoglass Company). They are increasing their enterprise by victorious the hearts of the customers. 3
1.2 Review the vital issues involved in Strategic planning in Autoglass For the strategic planning, there are some issues which are required to be advised. Considering the given situation in the case the comparable benefits of Autoglass can be investigated. Autoglass is putting their aim on the customer’s fondness and customer service. They have come to the largest approval level in the service commerce just by replacing the windscreen in a cost effective way. Granted the situation in the case we can investigation the competitive benefits of Autoglass. Competitive advantage of Autoglass Autoglass is growing and it would be helpful to analyze the competitive advantage they have. They are now a prime service provider of windscreen. A huge market segment they already have captured with their different types of service. So to analyze the competitive advantage they have, we can use the Ansoff’s Growth Matrix. Existing Product Existing Product New Product New Product Market Penetration Product Development Market Development Diversification Figure: Ansoff’s Model 4
Ansoff’s Growth Matrix is a marketing tool that suggests four alternatives. The strategies are: I. Market penetration – This scheme often focuses on capturing a bigger share of a living market.A market scheme hereby an association hunts for to gain greater dominance in a market in which it currently has an proposing (Melody, Y. & Kevin, H., 2000). In this segment Autoglass can boost its market segments by selling more of their goods and attract more customers. II. Diversification – This is the strategy of introducing new product in new market to spread the risks associated with older one. III. Product development – In this strategy Autoglass can bring “side view mirror” which is a new product to the existing market of windscreen to capture more customers. IV. Market development – This strategy refers to the attainment of new customer groups. Autoglass can increase their market segments to capture new customers. Autoglass Company has huge opportunities in the market. They can the growth rate very swiftly by satisfying the customer, acquiring and retaining them. They can set targets for three years to attain more customers and develop new products that are suitable to the market and building demand. During the targeted period the Autoglass Company should prioritize its geographic area; where they will create a huge market and they should determine the criteria for selecting an efficient supplier who will supply quality products. Definition of Top-Down and Bottom-Up Behavioral Approach for Autoglass:Autoglass is a growing business in the service industry and the service they are supplying will not be sufficient for them to hold on to the place in the market. Autoglass should approach in the Top-Down procedure in alignment to capitalize their assets and to handle the affray in the future. They need to arrive up with some expansion for their merchandise and market so that they might a diversified market for the customers. 5
Top-Down:A top-down approach is crucially the shattering down of a scheme to gain insight into its compositional sub-schemes (Grant M. R., 2010). Autoglass is flourishing in utilising the approach in their merchandise development. Bottom-Up: A bottom-up approach is the piecing together of systems to give rise to more complex systems, thus making the original systems sub-systems of the emergent system.Autoglass is successful in using this approach to provide the services to the customers. Informal Planning:It’s significant to alignment short allowance objectives of the association. By certain as blowing up 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 plentiful. Casual conceiving is that the procedures while the supervisor or foremost of an assembly evolves an inspiration with no one accepted structure and rigid associations (Grant M.R. 2010). 1.3 Explain minimum three planning technique for Autoglass 1. BCG Growth Share Matrix This matrix displays the association 4 types of consequences that will be faced by an association. It also helps the association to know when to invest in the living product, when to divest all profits from the market segment and when to aim on a new enterprise venture. Placing goods in the BCG growth share matrix Autoglass will face 4 types of consequences in the market. And they are: a. Stars: High Growth and High Market Share It requires a great quantity of cash for which managers need to take decisions from which the cash will be generated and used. If managers can make the business profitable and maintain a steady market share then it will result in the cash cow and the Company can harvest cash from the business. b. Cash Cows: Low Growth but High Market Share 6
The product will attain low growth in the market but it will have the highest market share from which the organization will turn in revenues and maintain income. c. Dogs: Low Growth and Low Market Share The time when the product gradually stops to generate any kind of revenue, the organization should gradually divest from the project to start another. The organization should also be careful of incurring any unnecessary costs. Figure: BCG Matrix d. Question Marks: High Growth but Low Market Share It indicates to the products that are newly introduced in the market and will gradually earn mass acceptance. It also has the risk of making a Dog product. If the market share is not increased gradually then it would incur loss for the organization. 2. Strategic Position & Action Evaluation Matrix (SPACE) SPACE planning technique can also be used byAutoglass to understand the market requirements and operate in order to expand the operation. This matrix has four 7
quadrants indicating the positions of the business organization and how to react accordingly. In consideration to Autoglass’s position in the market they can use aggressive strategy. It can also be used as the base for SWOT analysis. 3. Profit Impact of Market Strategy (PIMS) To support policies and principles for gaining and sustaining competitive advantage,this type of database provides concrete evidence. Autoglass might maintain a customer service database in order to analyze their principles and planning process so they can keep track of their success and implementation of the strategies. TASK 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 SWOT Weaknesses • Less promotion of the brand • Lack of advertisement Threats • Suppliers Competition • Geographic Location • Government Policy 2.2 Carry out an environmental audit for Autoglass using at least two approaches 8
It is impossible for any single organization to affect the factors related to the work environment. PESTLE is an important analysis that helps any organization to understand the scenario of the environment where the organization will operate. It influences the strategic decisions that will be taken by an organization. The analysis helps the organization to maximize opportunities and minimize threats. PESTLE analysis Political Political climate in different countries is different and the policies influence the business strategies. Taxation policies. Stability of governments. This may affect the future conditions in a country. Economical Level of economic activity that affects need for windscreen. The buying capacity of people influences the purchases of the organization. Socio-cultural Lifestyle and preferences of people influences the industry. Social customs that impact the decision to own and use automobiles versus other means of transport. Technological Technology of windscreen manufacture. Technology relating the designs. Technological developments that may increase or decrease repair or replace of windscreen. Legal Law regarding consumer and employment is highly emphasized. Legal provisions relating to safety measures. 9
Environmental Environmental aspects such as weather, climate, and climate change can affect in the business. To help the management to understand the overall context of the industry, Porter’s 5 forces analysis can be a very good solution. Porter’s 5 forces are: I. The threat of new entrants Government Policy: Governments can limit entry to an industry through licensing requirements by restricting access to raw materials. Economies of Scale:It refers to the scale economies in the production. In this industry, this is usually a very low threat. Access to Distribution Channel: It is the ability to distribute the product in the market and create demand. II. The bargaining power of customers Threat of Backward Integration:It is a threat to a buyer. A buyer has the potential to integrate backward by producing the product itself. Number of supplier Companies: The number of supplier companies controls the purchasing power of the customers. III. The threat of substitute products Prices: Prices matter in the industry because buyers shift to the product which is offering high quality yet having low price. Access:Now it has become much easier for buyers than it was in the beginningto access in the industry. IV. The amount of bargaining power suppliers have Number of Buyer Companies: The number of companies who are purchasing raw materials for manufacturing windscreen from number of suppliers. Threat of forward Integration: Supplier can integrate with customers to produce the same product. 10
V. The intensity of the competitive rivalry Rate of Industry Growth: The rate of industry growth is huge. Number of Competitors: The number of competitors is comparatively low in this industry. Diversity of Rivals:There may be diversity among the rivals with different product ideas. 11
2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass The stakeholders’ grid: High Influence Low Interest (Latents) High Influence High Interest (Promoters) Low Influence Low Interest (Apathetic) Low Influence High Interest (Defenders) Figure: Stakeholders’ Grid 1. The top right part refers to the stake holders who influences the strategies and promote the products. 2. The top left part refers to the stakeholder who influences strategies but they posses’ low interest in the organization (Tyberd 2013). 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. 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. 12
TASK 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 method where one specific company buys another entire company and sets up itself as the owner. In this process 100% or beside 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 method through which a mother business (licensor) permits another business (licensee) to use its trademark and sell the goods or services on the basis of affirmations on several periods. The periods encompass the authorizing charge that has to be paid to the licensor. Franchising: It is the process, through which a company earns the right to use another company’s trademark, business model, operations where the franchisor gives the right to the franchisee. For acquiring market share abroad, Autoglass might use this approach by assigning franchises in different locations. 13
Substantive Growth Horizontal Integration: In level integration a business types or comes by output facility of associated or complementary products (Melody, Y. & Kevin, H., 2000). Occasionally it may furthermore occur that a company purchases one of its competitors and form integration. Autoglass might form such integration by connecting with other production that is related to its living products. Vertical Integration: In vertical integration a company links with the companies or partners of the supply chain and in many cases all the partners of the chain stay under a single owner (Melody, Y. & Kevin, H., 2000). Autoglass might engage into vertical integration by linking with the suppliers and distributors. Related Diversification: When a company expands its business with some diversification in the existing product line (Arazy, O, &Gellatly, I., 2012). The new productions are similar to the existing products. Unrelated Diversification: It can be unrelated diversification if Autoglass begins trading home window crystal or attractiveness mirrors.It is the process when a business enlists into diversification by introducing new products and services that doesn’t match with the living merchandise line (Arazy, O, &Gellatly, I., 2012). Limited Growth Market Penetration: It means penetrating the comparable market by suggesting comparable price against the cost of the competitors. This approach is used to instantly hit the competitors by profiting their customers. It is often utilized to gain sales growth. Market Development: It is possible for Autoglass to develop the market by geographically increasing the enterprise and reaching the customers.It means aiming at new customer segments and appealing the non-buying customers of that segment. It assists to boost the market share by supplementing new portion of 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. 14
Innovation: It means searching out an entirely new need of the customers in the market and innovating a new product or service to meet that need. Autoglass might try to sort out such need in the market and introduce an innovated product or service. Disinvestment: Retrenchment: A strategy used by corporations to reduce the diversity or the overall size of the operations of the company. This strategy is often used in order to cut expenses with the goal of becoming a more financial stable business. Turn around: Turnaround may be a procedure dedicated to enterprise renewal. It utilizes enquiry and progressing to save started anguish enterprises and comes back them to financial rank. So as to pattern a comeback interior the enterprise associations got to verify the groundwork of the adversities and supported those adversities they have to pattern up new procedures and assess to trounce those matters. Turnaround administration recruits administration rethink, undertaking founded mostly cost accounting, source malfunction determinants enquiry, and SWOT investigation to work out why the enterprise is lowering short. Liquidation: Liquidating a firm is the last stage of the firm’s survival. If no alternative schemes comply with the associations then it desires to sell its assets and then pay up the shareholders and stakeholders.When an enterprise or firm is terminated or bankrupt, its assets are traded and the advances pay creditors. Any leftovers are circulated to shareholders. Divestment: The process of selling an asset. Also known as divestiture, it is made for either financial or social goals. Divestment is the opposite of investment. It is the process of pulling out the assets in operation and sells those to meet the gap in the financial problems and in order to liquidate the organization divestment is necessary for any organization. Porter’s Generic Strategy to gain the competitive advantage, Michael Porter described a scheming that contains three general strategies which are used by companies(Tyberd 2013). The generic strategies are: 1. Overall Cost Leadership 15
2. Differentiation 3. Focal Point 3.2 Select an appropriate future strategy for Autoglass If Autoglass needs or likes to expand their market, they must implement new schemes and introduce new goods. So considering future scheme they can analyze their market need and come up with some development of the new product to diversify their services and arrest a new market segment. Autoglass should be following the upright augments strategy to augment their enterprise. They can proceed with alliance with automakers to arrest the new market segment. They are in a powerful place and they might be able to proceed with the alliance with new associations. Coalition with associated associations will enable Autoglass to put more aim on the customer’s preference and can develop new product class to fulfill the desires of the customers. Beginning new product line and increasing the market will not solely help the Autoglass Company to elaborate in the market. Autoglass should certainly reconsider the feedback of the customers so that they might understand what the customers are looking for and to what grade of approval customer’s desire. Autoglass can benchmark next 5 quarters to obey with schemes they have taken and fulfill the firm pledge to the customers. The Autoglass is at present have a 92% approval rate amidst the customers. But with expansion of the business the approval rate might fluctuate and Autoglass need to build a timescale for the new goals and elongation of the new services. Contemplating the position in the commerce, Autoglass can supply a 5 quarters design that will be adequate for Autoglass to contend up with the affray and maintain alliance with the automakers to elaborate the enterprise. 16
TASK 4 4.1 Compare the roles and responsibilities for strategy implementation of Autoglass ExecutionExecution of the principle carries a distinct signification for the association’s profit. So, in the association it is very important. In the implementation of the principles it shows to the principles that are chosen and advised to profit from profit for the association (Ralph 2006). In the tactical phase the policies are revised and the feasibility of the policies is tested to see if those principles are functional or not. Sometimes the principles go wrong to attain important score then it is turned down and advised as unproductive one (Cars and Business 2013). It is essential for the Autoglass business to use extensive filtering procedures of the principles to catch and retain the market share. It is the responsibility of a Chief Executive agent of an organization to double-check the proper execution of policies or to turn the notions into truth.Clear and reliable declarations are essential in alignment to accomplish the targeted market share. Communal visualizations are required in identifying and checking the hypotheses, bases of the policies and suggest actions. in addition to, creating motivations and leveraging the employees is very much absolutely vital to execute the principle. Therefore a supervisor can reach to the desired aim of output as well as can double-check job approval among the employees and a wholesome employed environment. 4.2 Evaluate resource requirements to implement a new strategy for Autoglass Autoglass already has 159 clientele advisors employed 24/7 to meet the customers demand. It furthermore has fleet servicing which requires man power furthermore and they are careful about their work force (Ivan 2009). Autoglass has prioritized its human resources because as it is a service provider of windscreens and requires a gigantic man power to rendezvous the demand of the customers. In alignment to evaluate the assets of Autoglass, the organization 17
desires to select the precise components and location them in the right agencies to produce the services. So Autoglass is expending gigantic allowance in training and evolving the skills of the workers to supply the best service in the commerce. Autoglass sustain the largest standard of NVQ. Autoglass is the premier Company in the industry because they are using the best materials to double-check the durability and safety of the customers and furthermore consignment service time is sustained strictly. In the given scenario the Autoglass business is supplying the best service with effective designing and utilization of their resources and assessing the assets thoroughly. 4.3Discuss targets and timescales for achievement for Autoglass to monitor a given strategy: Evaluation of the benchmark outcomes: Quarter There should be every week and monthly overseeing by the line managers of the 1 divisions.The enterprise should be express up with the schemes and find out the feasibility of the concepts if the concepts would contemplate in the foreseen conclusion. They can take the responses of the customers and find out what else they are looking for in the windscreen fixing service. Quarter Throughout the period Autoglass should reconsider the customer’s response and 2 apply the yearned design to expand the enterprise. The line managers should be to blame for collecting the feedbacks and acting in the direction of it. Quarter This is the quarter of building up details and figures and takes research note on 3 the applied concepts. The administration should find out the gap between the foreseen deduction and authentic deduction. The GAP might happen because of lack of coordination or inefficiency of the workers and line managers. Quarter Management should organize a training program to fill in the gap. So that the 4 employees can achieve the organization goal in desired manner. Quarter In this quarter the organization might accomplish the yearned results based on the 5 scheme making and the implementation procedure. If the administration goes 18
wrong to achieve the objectives through the strategies, then they have to initiate activities founded on data like training the workers or supplying support to them. Table: Evaluation of the outcomes 19
CONCLUSION Autoglass is winning the hearts of their customer through their services and furthermore won a sequence of accolades for being the best windscreen replacement business among the affray. Study has displayed that Autoglass customers are much more contented than the competitors and they have also displayed that they are the best in the service commerce comparing to the banking and retailing sectors (Ivan 2009). They are going for much larger market segment and increasing step-by-step by beginning from only a little family business to own 500 branches in allover the Europe. Customer’s approval has become their major aim now. Their aim on the clientele approval has made the pioneer in this area of overhauling windscreen. 21
REFERENCES Cars and Business: Market Research Reports, Statistics and Analysis. 2013. Cars and Business: Market Research Reports, Statistics and Analysis. [ONLINE] Available at: http://www.reportlinker.com/ci02294/Automotive.html. [Accessed 19 November, 2013]. Ivan, N, 2009, Change Management and Its preparation', Economics & Management, pp. 407-412. Purchase Behavior- Business Customers. 2013. Purchase Behavior- Business Customers. [ONLINE] Available at: https://www.boundless.com/marketing/business-to-businessmarketing/business-customers/purchase-behavior/. [Accessed 29 October, 2013]. Ralph, 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]. Tyberd, M, 2013.Strategic Management and Business Policy. 5thed. Delhi: Pearson. 22
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