CAA Saskatchewan: Future of Auto Club
(6 pages of text)
The president and CEO of a provincial auto club is assessing opportunities to grow his organization at the same time as industry consolidation and changes in the allocation of national operating costs. The auto club has diversified from automobile towing and travel services into insurance, package travel, automobile sales, and service. However, the president's vision for the upcoming board of directors' meeting calls for a 300 per cent increase in operating revenues over the next 10 years. Without more members, the auto club cannot support its allocated costs of branded national and international products. The CEO's challenge is to find growth opportunities.
This case is intended for a senior undergraduate or graduate business strategy course. It could also be used in not-for-profit management or in a discussion of the business environment in business and government undergraduate courses. Relevant theoretical concepts include corporate strategy, governance, alliances, environmental analysis (specifically Porter's Five Forces and PEST), and strategic planning.
Canada, Medium, 2011
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