Case Name :      CAA Saskatchewan: Future of Auto Club

Authors :           Michael Rouse, Bruce Anderson

Source :             Ivey Publishing

Case ID :            W11481

Discipline :        General Management

Case Length :    11 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The president and chief executive officer (CEO) of a provincial auto club is assessing opportunities to grow his organization in light of industry consolidation and punitive changes in allocating of national operating costs. The auto club has diversified from automobile towing and travel services into insurance, package travel, automobile sales and service. However, his vision to the upcoming board of directors’ meeting calls for a 300 per cent increase in operating revenues over next 10 years. Without a larger critical mass, the auto club cannot support its allocated costs of branded national and international products. The CEO’s challenge is where are the growth opportunities.