half page bullet points, punching, precise problem cse study define problem solving. 2.vision mission corporate objectives zurich website. 3.situational analysis - global context. 4.macro economic - goverment, industry monopoly ogilopu - industry anaylysis -insurance industry.
Zurich Insurance Company
Zurich Insurance Company is a powerful player in the global insurance industry and, despite the economic crisis, it now strives to expand its operations. This expansion is to be a dual one, namely within both the markets in which it already operates, as well as in new, emergent markets. This very situation reveals the need for complex strategic approaches, materialized primary in the recommendations to use market penetration and market development strategies.
Key issues
The company is faced with the strategic decision to expand its operations. Yet, this desire is subjected to a wide array of competitive issues, such as the following:
High levels of dynamicity within the insurance industry
Intense and fierce competition between the insurance companies in both Switzerland, as well as at an international level
Key importance of marketing strategies to gain advantages and market share
The need to expand with the aid of the existing products, rather than developing new ones
Marketing complexities, such as budgets, processes, distribution and so on.
3. Vision, mission and corporate objectives
3.1. Vision
Zurich Insurance Company strives to become the best provider of insurance products and services. In their own words, the aim is that of being "the best global insurer, as defined by our customers, our shareholders and our people" (Website of Zurich Financial Services Group, 2011).
3.2. Mission statement
The executives at the Zurich Financial Services Group strive to attain their organizational objectives and accomplish the corporate vision through the full satisfaction of the needs and wants of a wide array of stakeholders, including employees, customers, business partners, the general public and so on. At the level of customers, the mission is constructed around the Zurich Help Point, or the positioning of the firm in a means which suggests that it is close to its customers to help them in a multitude of challenging life situations, such as the encounter of damages, the need for financial security and so on (You Tube, 2011).
3.3. Corporate objectives
As it has already been mentioned, the ultimate objective of the Zurich insurance company remains that of registering increased financial results. The means in which it would achieve this ultimate goal represent a series of smaller and intermediary goals, such as customer satisfaction, stakeholder satisfaction or expansion into the existent and into new markets.
4. Situational analysis
In order to formulate the most relevant recommendations, it is necessary to commence with the analysis of the situation. This specifically refers to the assessment of a wide array of contexts, such as the internal organizational climate, the industry in which the firm operates or the macroenvironment.
4.1. Macroeconomic analysis
The analysis of the macroeconomy is best conducted through the PESTEL analysis, revealed in the table below:
Political forces
Economic forces
Switzerland is a democratic state in which the policies are developed and implemented based on the vote and agreement between the several political parties. Since Zurich Financial Services Group however operates at an international scale, they have to obey not only the policies of Swiss regulators, but also the policies of international regulators, as well as the policies of regulators in the national markets in which they sell their insurance products and services.
At an international level, the economic crisis which has commenced in the United States is still negatively impacting consumers' purchasing powers. This specifically means that the demand for insurance products would be decreasing.
Switzerland has been a rather prudential state and it has not excessively opened itself up to globalization. This meant that the economic crisis did not generate immediate negative effects. Nevertheless, the financial hurdles are now impacting the Western European country (News Week, 2011).
Socio-cultural forces
Technological forces
The socio-cultural community impacts the insurance industry through a wide array of features. First of all, there is the changing purchasing power, which impacts sales and revenues. Then, there are the growing pretensions of customers, which translate into demands of higher quality products, but also social and environmental responsibility, which in turn materialize in higher costs for the insurance agencies. Finally, there is the diverse means of perceiving insurance. In the developed countries for instance, insurance is perceived as a daily necessity. In the less developed and emergent economies however, insurance is perceived as cost and it is often neglected.
The modern day society is developing at a rapid pace and this pace is often set by the Information Technology and Communication industry. This sector generates impressive developments, which are eventually integrated in business operations, including those operations in the insurance industry.
The replacement of the older technologies with the new developments materializes...
BCG Matrix According to the BCG Matrix, the electronics category is a question mark characterized by low market share, but potential high growth. In this instance, a decision must be made to invest heavily, sell off or invest nothing and generate whatever cash is possible (BCG Matrix). Appliances, on the other hand, are cash cows enjoying high market share, but little growth. Because growth is low, investments should be kept to
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BCG Matrix, an analytic tool designed and named for the Boston Consulting Group, provides insight into corporate strategy regarding a company's operating units and products. The focus of the matrix is on "market growth and market share of the organization's product portfolio relative to their largest competitor" (NetMBA.com. N.D. PP. 1). Companies should according to the matrix, allocate capital to portfolio investments which are in a fast growing market that
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3. Limitation of individual model - synergies obtained by combining strategic analyses models All analysis models presented in the previous chapter represent useful but not exhaustive methods of deciding the future of a company or its products. As there is no perfect model, the joint usage of them might bring most value to the company. Ansoff analysis generally assumes that diversification will bring higher returns when higher levels of risks are undertaken (diversifying
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