Management in Action
1. Using no more than two sentences, describe AutoZone's strategy.
AutoZone's strategy is to focus on selling auto parts at everyday low prices in good-looking stores. What sets them apart is their focus on having a culture of superior customer service.
2. Based on Michael Porter's discussion of the characteristics of an effective strategy, does AutoZone have a good strategy for growth? Explain.
Based on Porter's characteristics of an effective strategy, AutoZone does have a good strategy for growth. They have strategically positioned themselves in which they provide the broad needs of auto parts to many customers. What places them at a competitive advantage is their ability to preserve their objective of building a culture around superior customer service.
3. To what extent is AutoZone following the five steps of the strategic-management process?
Step 1 (Establish the mission & vision): Mr. Hyde states what their objective was when they started their first stores.
Step 2 (Asses the current reality): Mr. Hyde checked around to see who was doing auto parts business already and realized that the business was growing quickly, that no one was doing superior customer service, at low prices, and that the stores weren't well kept.
Step 3 (Formulate the strategy): Based on the assessment, they decided to provide auto parts at a lower cost to the competition in good-looking stores.
Step 4 (Implement the strategy): AutoZ...
