Operational and Strategic Characteristics and Current Evaluation of RAC Motoring

Running Head: MANAGEMENT AND STRATEGY 1
Management and Strategy
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MANAGEMENT AND STRATEGY 2
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For RAC to get over its outdated identity the company rebranded and modify its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