Strategic Management at AutoZone: A Case Study Analysis (MGT490)

This assignment analyzes the AutoZone case study, focusing on strategic management principles. The solution addresses key aspects such as AutoZone's strategic focus, competitive advantages, and growth strategies. It examines the company's mission, vision, and how they have expanded their business. A SWOT analysis is provided, outlining AutoZone's strengths, weaknesses, opportunities, and threats. The assignment highlights the importance of strategic management in a competitive business environment, including the application of self-determination theory to employee motivation. The case study emphasizes AutoZone's approach to customer service, technological adoption, and market expansion, offering insights into how the company maintains its competitive edge. Additionally, the analysis touches on the importance of considering both internal and external factors in strategic decision-making.

Running Head: MANAGEMENT 0
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PRINCIPLE OF MANAGEMENT

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Solution 1 – According to AutoZone strategy, the main focus should be on big things rather
than small things. This will help and make easier to emphasis on big picture as compare to
small stuff.
Solution 2 – As per their discussion, it can be said that AutoZone has a good strategy for
growth as there are competitive against the existing rivals and also have the ability to be
competitive in future if any competition rises in near future. Moreover, they offer unique
value to the marketplace that is different from the competitors. For instance, Joseph “Pitt”
Hyde III recognised that no one is doing well in terms of customer service and so, he decided
to form AutoZone that can offers premium service to the consumers (Kinicki & Williams,
2012).
Solution 3 – AutoZone follows this as when the son first started AutoZone, he had to identify
the mission statement explicitly like what he wanted to achieve and what he needs to offer to
the customers. He might be sure that this will be successful in future as this type of store was
not common. He developed his big strategy by recruiting the staff and organising the stores to
open to the customers as once he understood it was successful, he was able to identify like
how to sustain the business and make it run effectively.
Solution 4 – It can be said that AutoZone has been expanded very well with their automotive
replacement parts and accessories in America. They adopt the newest technology very fast
that help in proving superior consumer service. A SWOT analysis of AutoZone is being
outlined below related to their current reality to assess whether the company current strategy
helps them to attain success or not.
 Strengths – Their major strengths include, robust financial performance, superior
culture of customer service, implanting latest technology, stable distribution and
always have a plan B.
 Weakness – Some of their weakness includes legal issues related to storage, handling
and disposal of hazardous waste, improper employee management debt burden, staff
turnover, and all these lead the company to lose their customers.
 Opportunities – Considering their business environment, they have major
opportunities to expand their market in more nations other than Mexico and Puerto
Rico and thus make AutoZone a global auto parts brand. Ageing car population also
present opportunity for the AutoZone. They also have opportunity to grow and offer

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more automotive parts to the market especially with the new sorts of car approaching
i.e. electric cars = electric parts.
 Threats – The major threat for AutoZone can come from competitors and the intense
competition in their business environment. It will potentially affect their sales and
there will also be decline in profit due to recalls from the suppliers.
Solution 5 – In terms of strategic management, the greatest takeaway is that AutoZone is a
great enterprise who know how to make running their business in a competitive business
environment. The company always emphasis on big issues rather than small stuff that helps
them to retain larger number of customers as well as to be competitive.
It can also be said that good strategic management leads to the development of an
organisation as a company. The strategic management process is followed by AutoZone from
start forming the mission and vision that explicitly recognises the reason and purpose to be
successful in the future. Moreover, AutoZone also accesses the current reality by distinctly
knows where the company stand out in the market and how it could expand its operations by
outperforming its rivals. The company also well identified the needs of the customers as
products being manufactured and sold out.
Solution 6 (Bonus Question) – Motivation is an employee intrinsic enthusiasm that helps
them in accomplishing their various activities related to the work. It can also be termed as an
internal drive that helps a person to agree to take action. Self-determination theory is
concerned about human motivation indicates that all is characteristically motivated and
driven however, the true situations need to be recognised in order to facilitate this. In
addition, it also helps to increase job performance in many ways. It is evaluated on a learning
self-regulation continuum ranging from entirely autonomous regulation (Moran et al, 2012).
This theory enhance competency of staff by encouraging peer-to-peer mentoring to confirm
individuals of changeable levels of seniority can coach each other. It also leads to establish
autonomy by allowing individuals work remotely and benefit from flexible schedules during
work. The employees get motivated with a healthy work-life balance and demonstration of
trust. Managers provide information that is non-controlling, include staffs in the appraisal
process to set goals that are difficult and attainable, and initiate feedback mechanism results
in a climate of work excellence

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References
Kinicki, A., &Williams, K. B. (2012). Management: A Practical Introduction. McGraw-Hill
Irwin.
Moran, C. M., Diefendorff, J. M., Kim, T. Y., & Liu, Z. Q. (2012). A profile approach to self-
determination theory motivations at work. Journal of Vocational Behavior, 81(3),
354-363.