RAC Motoring Services Performance Analysis

This assignment analyzes RAC Motoring Services, an automotive roadside assistance provider, focusing on its performance issues and potential solutions. It delves into risk assessment methodologies, highlighting the need for a probability impact matrix to evaluate and mitigate risks. The assignment proposes operational strategies, including process mapping, competitive pricing, customer service enhancements, and marketing campaigns, to improve RAC's productivity, profitability, and customer satisfaction.

MANAGEMENT
ADMINISTRATION
OF OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1. OPERATIONAL CHARACTERISTICS OF RAC MOTORING..............................................3
2 PROCESS MAP...........................................................................................................................4
3 RISK ANALYSIS........................................................................................................................5
4 RECOMMENDATION................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
According to (Hill and Hill, 2012), operation management is such part of management
where various activities of business take place such as production, designing, redesigning,
distributing, etc. This report is carried out about various operations of RAC Motoring Services.
RAC is a British automotive services company which involves in roadside assistance services.
From this, learner will come to know about different strategies adopted by the company to
overcome from various short comes of business. It will also describe about factors which
influence customers’ satisfaction.
1. OPERATIONAL CHARACTERISTICS OF RAC MOTORING
Producing products and delivering services is comes under operational process of an
organization. (Karlsson, 2010) defines operational functions of a business which include the
process of facilitating outputs with proper utilization of input resources of company. Each and
every enterprise has unique operational functions which distinguish it from the other firms. For
RAC Motoring Services, staff, machines, materials, etc. plays role of inputs to earning profits.
There are some operational functions of this organization. Firstly, management at RAC requires
identifying needs and wants of customers. Another function is production which includes
physical manufacturing, assembling it, administration of orders, delivering, etc. Next comes
about development or innovation of new process and products. Then is follows proper
advertising campaign to promote its products and services.
Operational strategy is a plan of implementing actions by a entity to achieve its desire
goals and objectives. It is an essential element for a business unit which describes that how a
corporation uses its resources in production of goods and services. It is used by RAC which
includes four main dimensions such as quality, speed, flexibility and cost. By offering products
of better quality, it attracts customers towards its services. Another main focus of this
corporation is to facilitate quick and fast service. A manufacturing unit should have an ability to
increase or decrease the production according to demand of it. Multi skilled staff of the company
helps it to meet this flexibility. It also meets customers’ wants related to pricing policy of its
goods and services. To compete with its rivals RAC set a strategy to offer products or services at
lowest possible price.

2 PROCESS MAP
Every company whether small or large requires creating a proper process map of its
operations for smooth functioning. Here, RAC also need to make this for improvement of its
management functions like production, distribution, etc. Process map is such tool which shows
how the work flows within workplace. For a successful business it is necessary to create process
map which involves activities of management like what to do, how to process it, who should
involved in performing functions, to what standard it should be completed, etc. (Slack, Brandon-
Jones and Johnston, 2013) describes main aim of process mapping is to improve working
efficiency of RAC motoring services. For this organization process mapping should be start from
placing an order to delivery of it to customers. It should consist of following steps:
At initial stage customers places orders. This will be received by sales department and
they processes order to production head. It is the functions of management at this level to
complete order request and ship product or service. Here, management of RAC needs to focus on
delivering best services to their consumers. At final step, product is received by its end user. This
was a cross functional process map of RAC Motoring services. Therefore, there is several
process maps are created by a company for different area of working. The above one needs to be
created for providing better customer services.
Figure 1: Functional Process Map
(Source: David and David, 2016)
Customer satisfaction plays a vital role in making a business successful. It is very
necessary for a company to offer good customer services. If they provide better services then

satisfaction level of users may increase. Therefore, RAC also needs to improve its services.
According to present situation of this entity it is going poor and poor day by day. Here are some
factors which influence customers’ satisfaction level. According to (Jacobs and Chase, 2013),
foremost factor for poor satisfaction of consumers is quality of product and response of
suppliers. RAC needs to provide better quality of product along with quick and fast response to
their users. As its main function is to provide roadside assistance therefore its two key areas
affects customers; satisfaction such as quality of its call taking when they calls to company and
efficiency of its dispatching system. Thus, poor service of it lead it to poor customers;
satisfaction. Another factor is related to technologies used by this entity. Old techniques of
handling operations of firm will discourage both employees and users of enterprise. To be
friendly with consumers of this unit is very essential for growth as well as increasing satisfaction
level among end users. Therefore above were some factors influencing customers’ satisfaction
level.
3 RISK ANALYSIS
(Slack, 2015) describes that management of a company should always aware of risks
available at workplace. Analyzing and managing risk is an important function of today’s
organizations. Every risk has two dimensions first probability of occurrence of it and negative
impact of it on business activities. RAC has to create a probability impact matrix for analyzing
risks for vertical integration of the company. This integration is a risky strategy. Without proper
analyzing of risks, some enterprises jump into it. As per the view of (David and David, 2016),
when bilateral trading is not beneficial, vertical integration is needed for coordinating various
stages for chain on an industry. Therefore, it generally requires when market is too risky. At
RAC, probability impact matrix is used by management for risk assessment.
Probability impact matrix is one of the most common methods of assessment of risk.
Calculating risk is not so easy for anyone but through this method it becomes easier. Risk is the
combination of probability and its impact. It is generally based on rough estimates. These are
less accurate than the properly modeled distribution. There are five steps for assessment of risk.
First of all identifying hazards which may harm organization. Then deciding who may harm and
how will it happen. After it is to take an action and assess it. Staff of enterprise is required ti
record all findings and then finally reviewing risk assessed.

According to (Brown, Bessant and Lamming, 2013) it involves certain steps of
assessment of risks. The first step defines about probability of risk occurrence which shows
chances of having risks in it. Next level was to set the impact of it. Next step involves in
determining risk exposure which is calculated on various types of risks available within an
organization. At last a probability impact matrix is built that shows chances of occurrence from
low to high. The analysis matrix will show such area where there are maximum chances of fear.
By analyzing this it will become easy to solve generated problems of RAC. By reducing it
productivity and profitability of the entity will improve. It also helps in providing better services.
4 RECOMMENDATION
RAC Motoring Services is an automotive industry which provides roadside assistance
services to its customers. As per this study , I get the knowledge about various shortfalls rising
within its workplace. There are several such areas in which it is going back from its competitors
now a days. To improve the quality of its services it need to take initiatives relating to it. First of
all it needs to adopt some effective operational strategies to improve production. It should make
various types of process maps for different functional areas. It should provide high quality
service at moderate prices instead of charging high. As the competition is increasing day by day,
it declines customers. So, it needs to facilitate quick and fast service to its consumers. According
to (Karlsson, 2010), it should offer some schemes to buyers which will attract them. As rivals of
RAC are offering their products and services at cheap or lower rate it should also sell it at low
prices.
To attract consumers towards purchasing products of RAC, it requires improving its call
taking and dispatching system. It needs to focus on two things such as managing patrols and use
of contractors. Through market research I come to know that members are less satisfies with the
services provided by such contractors. This may improve quality of services provided by RAC.
To increase the productivity and profitability of company it is necessary to maintain the quality
of it. For more distribution it should prepare an effective advertising campaign. Through this,
people who are not aware about services of this company may come to know about it. As per the
view of (Jacobs and Chase, 2013) it is one of the best way to attract customers towards its
services.

CONCLUSION
This study concluded that RAC Motoring Services is facing various problems related to
its quality and services. It describes about strategies which should be applied by the enterprise
for better production and return. Identification of risk is very necessary to know its impact on
working of the business and for this it needs to create a probability impact matrix to calculate
risks. It needs to improve customers’ satisfaction level by providing quick and quality service.

REFERENCES
Books and Journals
Brown, S., Bessant, J.R. and Lamming, R., 2013. Strategic operations management. Routledge.
David, F. and David, F.R., 2016. Strategic Management: A Competitive Advantage Approach,
Concepts and Cases.
Hill, A. and Hill, T., 2012. Operations management. Palgrave Macmillan.
Jacobs, F.R. and Chase, R.B., 2013. Operations and supply chain management: the core.
McGraw-Hill.
Karlsson, C. ed., 2010. Researching operations management. Routledge.
Slack, N., Brandon-Jones, A. and Johnston, R., 2013. Operations management.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.