Insurance Sales
Using an independent sales force vs. A career sales force produces immediate and obvious advantages. Independent salespeople quickly provide more 'feet on the street,' for a company desiring to expand. They are hungry for a commission, unlike more complacent career salespeople with already established salaries and networks within the company's traditional reach. Independent salespeople bring more diverse experiences and an array of new business networks and sales connections originally inaccessible to the company.
The advantages and disadvantages of using commission vs. career sales are also relatively obvious -- the use of commission sales encourages salesmen and women to use high-pressure sales techniques to secure their salaries. However, this also encourages a high turnover rate and low company loyalty, as salaries are not secure. Fly by night rather than respectable individuals are attracted to the workforce. But career salespeople with built-in salaries tend to stick to their territories, as they are always assured of making some income.
However, there are some problems, as evidenced in this insurance sales case study, with this shift to an independent sales force. The new salespeople were not a part of company culture, nor did their salary and benefit structure encourage them to be. The company has less control over its 'product,' namely how its product was sold, and even was unprepared to fully meet with the level of expansion precipitated by the inclusion of independent salespeople. Furthermore, the different structure caused company hostility within the ranks, as traditional career personnel feel excluded from the new salespeople, and the independent sales force feels jealous of the other individual's built-in financial benefits.
It would be an excellent strategy of JTP Insurance were to pursue a mixed model of sales, focusing on independent sales in one arena of the insurance business, but separating career oriented salespeople and tracking them in purveying a different product, in a different area of the company. This would dampen salary competition between the two sales forces. Although the economy faces an uncertain recovery, recent national natural disasters, from Hurricane Isabel to the California Forest Fires, to an aging workforce, have all highlighted the need for insurance.
The company must stand and meet this challenge. Although the Human Resources conflict remains unresolved, independent contractors continue to be used to meet the increased demand within the industry.
particular types of businesses (for example, convenience stores or auto dealers), Federated emphasizes macrosegmentation. To further sharpen strategy, suggest possible ways that particular macrosegments could be broken down further into meaningful microsegments. Different businesses have different needs. For example, jewelers have a specific need to insure high-risk goods which can be stolen and thus need casualty insurance to protect these vital assets; auto dealers may likewise need to insure their
Northwestern Mutual Life Insurance Co Insurance business in modern day has adopted a differential approach to dealing with policy issues and consumer behavior yet some companies like Northwestern Mutual Life retain their original course of actions with clear mission and core values to provide exceptional service to their consumers. The following report is an analysis of such exceptional quality and distinguishable positioning of the company. Whether one is a business entity, a
While the insurance companies worked to satisfy claims there were so many of them that there were backlogs for months at a time. Clients were left to figure out how to survive without having insurance money in their hands and tempers began to flare on all sides of the crisis (Burr, 2006). As additional natural disasters continued to loom over the sunshine state and wreak havoc, insurance companies won the right
For a product configuration system to be effective it must be able to submit orders directly into production while at the same time being able to determine what the Available-To-Promise (ATP) ship dates are (Mendelson, Parlakturk, 2008). Instead of just giving the standard four to six weeks I'd also integrate the product configuration systems to supply chain systems to ensure that accurate Available-To-Promise (ATP) dates (Gunasekaran, Ngai, 2009). I'd
9. Returns - defines the condition under which the product can be returned, what procedures must be used, advance notice requirements, shipping issues and the like. 10. Damages - defines procedures for reporting, estimating and recovering damages if suffered by any party. This may include penalty payments with a defined upper limit for recovery. 11. Governing Law - defines the location where litigation will occur in the event that a breach of
They were just so intense, so focused, so transaction-driven, there literally wasn't time for people to put ideas out and discuss and debate them." These constraints to effective management oversight and innovation were further exacerbated when the company went private in 2001. According to Stopper, "ARAMARK went from a leveraged buyout situation in 1984, with only some 50 people having equity in the company, to an initial public offering (IPO)
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now