Operational and Strategic Characteristics and Current Evaluation of RAC Motoring

This article discusses the operational and strategic characteristics of RAC Motoring and its current evaluation. It also provides recommendations for improving the quality of services at RAC, including decision-making strategies, human resource management, and proper planning and assessment of demand and supply ratios in the market.

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Management and Strategy
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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For RAC to get over its outdated identity the company rebranded and modify its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

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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

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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).

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References:
Thompson, J. L., & F. M. (2010). Strategic Management: Awareness & Change.
Cengage Learning EMEA.
Vallath, M. (2014). Oracle Real Application Clusters. Digital Press.