Racc

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Design and Development of Strategy Processes at RACC 1. What have been the goals of the strategic planning exercise at RACC over the years? What are the advantages and disadvantages of the RACC approach?

Previously all the strategic planning exercises involved a wide management participation coupled with bottom-up approach. The aim was the development of a multi-product and multi-channel strategy.

In 2000-02 the emphasis of the strategic plan was focused on geographical expansion. Which were formed by participative process by including 21 senior managers from level 1 and 2 who carried out and external analysis, followed by an internal feasibility analysis. As a result, five corporate strategic priorities were identified, with
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The symptoms of stagnation were unpredicted and to react to such unforeseen circumstances it was required lay emphasis on the top level managers because of their exclusivity towards the strategy and the lack of time to resolve the occurrence. However, the broad participation approach had proved beneficial for a significant time as well, since it involved the organization participation as a whole, which encouraged implementation due to the involvement. But due to the urgency to take remedial action it would not be feasible to initiate bottom-up approach.

3. Having faced market changes and having updated the corporate level strategy, should RACC go back to broader participation for the multi-channel strategy?

In terms of reacting proactively and effectively to a sudden crisis, it is best for the strategic planning decisions to be carried on by the top level along for a more professional, objective and realistic approach. Regarding the implementation of the strategy, the top level can set directions and supervise the lower levels. However, to maintain a balance and motivate the lower levels a bottom-up approach can be considered once RACC obtains a more stable position. To facilitate multi-channel strategy the
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