Since then although its 1 we lean on the concept of

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Unformatted text preview: Catalonia, one of the most prosperous regions in Spain. Since then, although its 1 We lean on the concept of strategy formation (Burgelman, 1988; Floyd and Wooldridge, 2000; Mintzberg and McHugh, 1985; Slevin and Covin, 1997; Wooldridge and Floyd, 1990), which integrates thinking and acting in an ongoing manner and extends strategizing beyond the formulation-implementation dichotomy. 6 foundational goal has not changed, the organization has been able to renew itself several times. From the outset, RACC offered a number of related services to facilitate daily use of motor vehicles, such as roadside assistance, car insurance, car servicing, assistance in obtaining driving licenses and permits to drive abroad. RACC’s business is similar to that of other automobile clubs such as the American Automobile Association. They also own facilities such as a car-racing circuit and organize sporting events such as the Formula 1 grand prix. From 1986 to 1995, RACC established a number of business units and focused on key business areas, such as assistance, insurance, sports. The emphasis was on getting closer to a broader base of car users through improved service offerings within Catalonia. During this same period it expanded its membership from 86,000 to 320,000 and built up the scale of its activities to become an institution covering the whole of Catalonia. Competition had increased in two directions. On the one hand, another automobile club had started operating in Spain, and on the other, a number of specialized companies were offering competitive services within each segment. The appointment of Josep Mateu as CEO in October 1995 marked a turning point. Mateu stressed the need to achieve a certain professional management profile, with proactive managers trained in strategic management. At that point, though a strategic plan was in place, it offered only “wishful thinking”, as Josep Mateu put it. With Mateu’s arrival the primary objective became to put the organization in order. From then on, the objective function, in the form of strategic intent, became to expand aggressively beyond Catalonia towards the whole of Spain. Next, a new strategic exercise became necessary, and was completed by mid-2000. A clear strategic intent was formulated, and the participation of all layers of the organization was sought. The unit chosen to shape the strategic renewal was that of the project, each project being formulated and developed by a different team. This final stage is the one we studied. By the year 2000, RACC had become a group of twelve companies, each focused on a business area around the concept of mobility. Its management structure recognized three dimensions: business areas (membership, assistance, insurance brokering, travel, sports, and other member services); geographical operations (distribution units in four regions within Spain); and functional areas. Also, strong corporate service units were established (including corporate development, organization and quality, and auditing). With thirty-two executives in key management positions and a total of 1,050 employe...
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