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Management And Strategy: RAC Motoring

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Question:

Discuss about the Management and Strategy for RAC Motoring Services.

 

Answer:

Operational and Strategic Characteristics and Current Evaluation of RAC Motoring

RAC Motoring Services was formed over 100 years ago as an automotive service company and offering other services such motor vehicle insurance. For some time RAC was ranked behind Automobile Association (AA) in operational activities such as advertisements and customer awareness activities. That remained the case until both companies were recently owned by a particular group hence they were no longer subjected to making profit for external shareholders. In 1999, AA and RAC got separated again where AA was bought by Centrica utility service company and RAC was acquired by Lex plc. This was as a result of Green flag joining the market as cost leaders by selling their products at a cheaper price. The green flag also did alot of enticing advertisements that reached a large number of customers within a very short time. This helped them earn larger market share at the cost of both AA and RAC.  Lex made the decision of buying RAC on the grounds of its perfect brands, its large market share, and its influential supernormal profits.

As RAC desired to raise its market share it adopted an improved call- talking skills and dispatch procedures by working with the state-of-the-art technology. RAC also hired a number of patrols who were experts in mechanic, garage operations and were potential through experience. RAC’s patrol team was also set to liberate and repair customers’ vehicles at the roadside. RAC built attractive control centers at high and noticeable points at the motorway systems showing its location as a modern service provider

For RAC to get over its outdated identity the company rebranded and modify its corporate hue. This activity was specifically aiming at creating a contemporary and powerful image to allure younger market sections. This was basically to address the persistently declining market portion (Vallath, 2014).

 

Recommendations for Improving Quality at RAC

RAC Limited which is offering reliable services by controlling the risk factors and through the use effective managerial skills to create the long-lasting utility to its customers. The company lacks some various resources and personnel that could be improved to make profits for the organization. The Following are some of the recommendations for improving quality of services at RAC.

Decision-making strategies should be entangled in the process of operational management in organizations. This could facilitate the suitability of the decisions made and the processes adopted for a smoothly operating organization. Formation of committees in the organization that is accountable for identifying ineffective decisions and taking authoritative and appropriate steps on unproductive activities should be adopted. This will fasten the decision making process and reduce time wastage. This enhances harmony and also discourages blame games between subordinates and various shareholders in case of a failure of a process as a result of a decision made.  

Human resource management department should be formed in the organization and should be well equipped so as to offer quality training to the workers. Through effective employees in all organizational departments, it is easy and cost-effective for an organization to improve and develop better services and quality products securing a good position in the market. Contractors can also be used in the training sessions with the patrols. They help to improve their technical skills, learn further about new technology and can learn through observations and practical from other patrols. This will also help the contractors to sharpen their efficiency and skills on the service delivery.

Proper planning and assessment of demand and supply ratios in the market. The use of sales records can significantly contribute to the control of demand changes according to time, economic changes, technological growth, and political temperature. All these factors have a great impact on the company’s competitive advantage.

 It is also recommended for RAC to undertake a benchmarking step to the best performing company in the same or different industry such as the Green flag. During that process, they can compare their performance, functional, planning, financial and strategic operations, identify their weaknesses, develop, implement, review and compare their results of before and after benchmarking process (Thompson & Frank, 2010).

 

References:

Thompson, J. L., & F. M. (2010). Strategic Management: Awareness & Change. Cengage Learning EMEA.

Vallath, M. (2014). Oracle Real Application Clusters. Digital Press.

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