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Unit 4 Management and Operations Assignment - RAC
Diploma in Business
Unit Number and Title
Unit 4 Management and Operations
In present business environment there is required to manage all the activities and operations in the organisation that can make impact on overall effectiveness of the organisation. To manage all the activities organisations adopt operational management which is management, designing and controlling the production and redesigning business operations in the production of goods and services. There are analysed the case study of the RAC Motoring Services providing British automotive services company which is providing various services related automobile services. There are faced various problems by the company like breakdowns due to its ineffective operational management that is leading the company to lose its competitive advantage in the market. In this report we will understand about various aspects that are involved in the operational management in the company.
1. Describe the operational characteristics of RAC motoring and define the operations strategy of RAC.
RAC Motoring Servicesis a British automotive services company and serving the customers by providing them motor vehicles and other services like motor insurance, services petrol face that can make impact on the various aspects that can make impact on the overall effectiveness of the organisation (Kato, et. Al 2014). Operations management of company is adopted in the production process of company and making effective brand image of company. In the process of operations management there are characteristics which are as follows.
System designing- In the process of product development there is required to set and prepare effective design which can make impact on the results of production process. In the operational management there is analysed the requirement of customers which must be consider in the production process of products. There is effective designing of products and services which leads to attract customers in effective manner.
Planning- There is included planning of activities in the production process which is including effective decision making by analysing various options and alternatives that can make impact on product’s efficiency.
Implementation- Once the design and plan is prepared than it is required to implemented to effective execution of activities that make impact on the overall effectiveness of production process and product development. There are also defined the pricing and cost of the production process in organisation(Kato, et. Al 2014).
Operation strategy of RAC Motoring Services-
Effective branding- the company is adopting the brand value in the organisation which can make impact on the overall effectiveness of the organisation. The company is focused in making well established brand position in the market that can attract more customers and retain their loyalty.
Broad product range- The Company is following the approach to diversify and enhance the overall product range which can effectively satisfy the customer needs and demands. This strategy helps in retaining customers by satisfying their demands in effective manner (Khayrullin, 2014).
Effective human resource management- The company is achieving this market positioning due to its effective management of human resource and effective team of professionals and other staff members who are involved in the organisational activities.
Setting hey performance indicators- The Company has set up various KPI’s for financial and non- financial activities that are providing effective base for the monitor and control activities that can make impact on the overall effectiveness of the organisation.
2. Create a process map describing the call out service at RAC and identify the factors contributing to poor customer satisfaction.
RAC Motors is providing services related to motor vehicles and satisfying them in effective manner. Call out services which are provided to customers at their home and other place which are handled by effective management of calling and network of communication with customers. Company is following the process map for call out services in which there is strategy in which there are provided six free call out services providing by the company. With the emergence of the seventh call the service become chargeable and this is making a restriction for the customers to use this service in the company that can make impact on the poor services providing by the company to its customers (Telha, et. Al 2014). The number of call out services increases in winters which lead to increased number of required patrols which can manage the services in effective manner and can manage the demand in the market.
There are various factors which influences and contribute in the poor services providing by the company. These factors can be ineffective management of calls and lack of resources to handle the operations, ineffective human resource in organisation which can be due to lack of training and development programmes, Ineffective technology like information technology which leads to all operations of call out services in the organisation. The policies and regulations which are formed by the company to handle all the call out services also ineffective which is making the services poor and leading to dissatisfied customers in organisation (Vladimirovna, 2016).
3. Perform a risk analysis for vertical integration option at RAC by creating a probability impact matrix.
RAC Motor Services is a big company in the motor industry which is providing its services to huge number of customers and also having various competitors in the market. There are various aspects which are generating risk for the company that can make effect on the profitability of the company. It is required to effectively manage risk in the organisational activities which can be managed by diversifying it and managing it in effective manner by effective planning and this ensure safe and secured results in the organisational activities (Williams, 2013).
The following is the risk analysis and probability impact matrix of the company RAC Motor Services.
In the motor vehicle industry there is huge risk of the change in the technology of production of products which lead to huge loss by less customers in the company.
High risk level
This risk factor takes place on continuous basis due to changing technological environment.
Risk takes place in the company of seasonality breakdowns due to various factors that take place in the company.
Medium risk level
This risk factor does not take place on regular basis.
Increasing competition in the market generates huge risk which makes impact on the prices of products and services and also makes impact on the competitive advantage in the market (Williams, 2013).
Medium risk level
This risk factor takes place on the continuous and company make effective and strategic plan to manage that risk.
4. What are your overall recommendations for improving quality at RAC?
The company RAC Motor Servicesis a subsidiary company of RAC Limited which is providing effective services by managing the risk factors and adopting effective operational management in the company to satisfy its customers. The company is lacking in various aspects which can be improved and can generate effective profits in the organisation. Following are the recommendations for improving quality at RAC.
- There must be adopted strategic decision making in the process of operational management in organisation that can ensure effectiveness of the decisions and actions taken in organisation.
- There must be formed various committees in the organisation that can take effective steps and make effective decisions related to the activities which are ineffective and also making impact on the overall effectiveness of the organisation.
- Human resource management must be adopted in the organisation in which there must be provided effective trainings and development which can improve the services and performance of the human resource of the company (Zinnatullovich, 2014).
- There can be adopted effective planning of demand in the market by effective technique of forecasting which can lead to effective management of the demand and the changes of the environment which can be technological changes, political changes and social changes that can influence the competitive advantage of the company and can lead to effective results within organisation.
- There must be effective focus on the improvement of the call out services by appropriate planning of activities that can attract more customers and effective customer satisfaction in the company.
Conclusion and recommendation
Present business environment requires effective planning and management of activities which can lead to effective results of activities that lead to positive and growing organisational environment. This report is showing effectiveness of the operational management and risk assessment in the organisational activities that can generate effective profits and growth of the company. There are various aspects in which company is lacking for example call out services providing by the company that is leading to dissatisfied customers in the organisation. There are defined various aspects related to the characteristics and strategies of operational management adopted by the company RAC Motor Services. There are also defined the risk factors involved in activities that must be managed to prevent the company from any kind of harm in organisation that can make impact on the overall effectiveness of the organisation. The company must adopt effective planning and forecasting to meet the requirements of market that can lead to appropriate results that can generate effective performance of the organisation which can develop competitive advantage for the company among its competitors. Strategic management and decision making in organisational activities leads to various aspects that can make company as leading company.
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Khayrullin, R.Z. 2014, "Operational management system for warehouse logistics of metal trading companies", Vestnik MGSU, ,no. 6, pp. 172-178.
Telha, A., Bessa, N., Páscoa, C. & Tribolet, J. 2014, "NearReal TimeSystem for Operational Management", Procedia Technology, vol. 16, pp. 232-241.
Vladimirovna, T.M. 2016, "AUTOCAD IN THE OPERATIONAL MANAGEMENT OF THE CONSTRUCTION SITE", Vestnik MGSU, ,no. 4, pp. 140-147.
Williams, J., Williams, H., Dinsdale, R.,Guwy, A. & Esteves, S. 2013, "Monitoring methanogenic population dynamics in a full-scale anaerobic digester to facilitate operational management", Bioresource technology, vol. 140, pp. 234-242.
Zinnatullovich, K.R. 2014, "Operational management system for warehouse logistics of metal trading companies", Vestnik MGSU, ,no. 6, pp. 172-178.