Between 1998 and 2001 it grew 230 in turnover and 163

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Unformatted text preview: es, RACC has achieved impressive growth over the last few years. Between 1998 and 2001, it grew 230% in turnover and 163% in number of members. Each area expanded its services to create stronger ties with members and moved to provide assistance to other companies in addition to its own members. RACC became Spain’s leading insurance broker in Spain in terms of number of auto policies. Over the previous decade, the company championed the construction of sports facilities and had no rival in organizing the three motor sports world championships: Formula 1, motorcycling and rally races. Data Collection We collected data on RACC’s strategy-making process from various sources, including interviews with the CEO, with the entire group of second-line managers, the personnel of the Supervision and Planning Department, as well as from internal documents and archival data. The interviews took place between May 2001 and January 2003. We conducted, in total, 14 interviews, ranging from 2 to 3 hours in length, with a median of 140 7 minutes. A list of interviews and participants’ ranks is given in Appendix 1. The respondents ranged in rank from CEO, as level one, to level four managers. The internal documents, which added up to about 573 pages, consisted of documents produced during the strategic planning exercise, and specific documents defining fourteen strategic initiatives. In addition to these, two IESE teaching cases were used for the study. Archival data and company and internal documents were filed into a database for trouble-free retrieval. Multiple data sources gave us the means to figure out the internal and external contexts in which strategy-making developed at RACC. Additionally, having different types of evidence allowed for triangulation in later data analysis (Miles and Huberman, 1994). For data collection we followed a two-stage approach. The purpose of the first stage was to comprehend the strategy-making process as a whole. For that we used company documents and in-depth interviews. The company documents used in this phase were the internal forms used for developing the strategic plan, the schedules and lists of participants in each stage of the strategic exercise, and the actual strategic plan, including strategic lines, objectives, measures, executives responsible, and timings. Interviews conducted at the beginning of the study sought to clarify the characteristics of the strategy-making process. An indicative list of the themes covered is given in Appendix 2. By comparing company documents and interview results we were able to start to establish a chain of evidence, aiming for construct validity (Yin, 1994). Our purpose was to study the effect the objective function setting had on strategy development and managerial action. We therefore examined the interplay between top management and organizational members, through archival data and interviews, during the formal planning process, as well as in previous and subsequent episodes. More specifically, we inquired into top management interaction with organizational members regarding conveyance of strategic intent, as well...
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