Unit 7 Business Strategy Assignment Sample
Understanding Business Strategy in Aviva Insurance Company
Aviva is the insurance company providing the security of certain amount to the people against their life, assets – recognized as life and general Insurance. It has exact goal for the company to expand the business for generating more revenues and profits. Management of the company does proper planning to achieve the goals. To make it possible the company has to go for various planning procedures and examine the internal and external environment of the company.
Task 1.1 You are required to select a business organization which you are familiar with, preferably listed in the London stock market or stock market in your country of origin and research its business activities before writing a preliminary report based on following:
Headquarter in London
- Company Profile: It is all about AVIVA that is basically an insurance company. It is the insurance company basically from British that is based in the London. It has spread all over in 16 countries with the 31 million customers. In the United Kingdom it is the largest life/ general insurance and pension providing company. Life insurance gives the security to the life of the person and it is for the long term but the pensions and the general insurance are covered the non- life things that is house, car and also exposure of any spoliation through accident/ fire. In UK it also provides the medical Insurance through the registered employers to theirhuman resource (Collis, DJ & Montgomery, CA, 2005). All employers cover their employees insurance under the AVIVA.
- Mission and Vision statement: It has established its foot in Canada as the second largest in general insurance. It has covered all the European and Asian markets and now focusing on the markets of the South East Asia & china. The revelation of the Company’s CEO is “One Aviva, twice the value” it means that company generally focuses on the growth/development of its whole group in global market.
- Goals and objectives: Besides capturing the whole global market company wants to increase its sales that lead its profits margin and also wants to achieve the leadership among insurance companies in their domestic market. Aviva places extraordinary concentrate on mapping both the workforce's execution and in addition prospective. This, thus, assists in ordering the ability pool inside a framework involving the choices 'keep up, contribute, hold and strip'. The current business situation is making new difficulties identifying with sparing, safeguarding and building intensity. Subsequently, it is basic to outfit workers with aptitudes which will help them overcome such difficulties. The center is currently on recession-prepared learning and advancement. An essential angle in this respect is to offer L&d activities as a speculation as opposed to as an expense.
Being influenced by the worldwide recession, Aviva supposes it is fundamental to keep up preparing plan and to make the best utilization of this affliction; they concentrate on filling limit holes as far as information, abilities and practices.
- Core Competencies:The core competition which the company gives to its other competitors are its good health plans, various schemes offered by the company, discounts offers, its good and skilled full strength of employees, its shares in the market, Products of Aviva etc. These are the attraction that are mainly competent for the other organizations. On the source of these achievement the company has gain its position and capture the major market all over the world. The core competencies are:
- Laying down how does Aviva make wealth (clearing up the degrees of business objectives and the course to attain them).
- Managing hardship.
- Reorganization of ways to deal with cost (an inmost looking talent deposit which commences beneficial thought procedure).
1.2 Analyze the factors that have to be considered to formulate strategic plans. How does the Ansoff’s matrix help your chosen firm to manage the strategic decision to consider strategic plan.
Strategic plans are formulate by the organizations management in achieving it long term and short term goals by keeping in mind about the external and internal environment that may impact on the business activities.
These are the factors those are considered by AVIVA for formulating the strategic plan.
- Setting the objectives: Aviva’s objective is to capture the global markets and increase the profit margins of the company by increasing its sales. Once the vision is clear then only it is worth to do planning (Furrer O, 2011).
- Examine the company’s environment: It is very important to evaluate the company’s internal & external environment. It clears the picture in front of the company about their competitors, customer’s preferences, affects of any fears, change in the technology, workers and their changing desires etc.
- Setting Targets: Aviva’s targets are to capture the market of china and the South East Asia as it has spread its business all over the world majorly in Asia and the Europe. For solving the same purpose Aviva has to look on the quality of the insurance policies / products as it is offering and also look upon their improvement for keeping their customers attached with them for the long term period.
- Planning as per different departments: there are different departments and their sub units in an organization. Each one has to participate fully and devote in achieving the goals and doing planning for the company. Aviva has to take all its departments like, production, administration, human resource, compliance, legal etc then only the whole planning will be considered as a successful.
- Analysis of performance: Aviva compares its past and present performance and so planning to remove the lacking aspect so that it should be removed and will not be a part of a future strategy (Furrer .O , Thomas.H, & Goussevskaia.A, 2007).
- Choosing the strategy: After considering the strengths, weaknesses, objectives of an organization by its own will help the company to choose the best strategy for the further processing that may be expected as a successful strategy.
AVIVA follows Ansoff’s matrix for their strategy planning-
- Access of market: It makes possible for the AVIVA to know about the products or policies offering by the other insurance companies and their strategies so that it helps the Aviva to make its concepts clear about the objectives and also increase its products quality and the variety.
- Development of Market: Aviva has already captures the Europe and Asian market and already a second largest company in insurance in Canada but want to expand its company in all other geographical areas to increase its revenue and profits.
- Development of Product: Aviva focus on providing the variety of products and redevelopment of existing ones to gain more benefits out of it and satisfy the needs of the consumers.
- Diversities: Aviva tries to bring the new products in the market with the new innovative ideas though it is very risky for the company but somehow it is necessary for such diversities in the society (.
1.3 Evaluate the effectiveness of strategic planning techniques to be used when developing strategic business plan.
Evaluation ofbusiness strategy plan means to examine the effectiveness of the planning done by the Aviva. It considers the main few points to evaluate.
- Internal forces: Evaluation of the internal environment will tell the company about its strengths in terms of its assets and about various company information or people that gives the proper guidance for the company’s flourishment. It helps the company that how AVIVA should expand the business.
- External forces: It helps the AVIVA to evaluate about its customers and competitors that helps the company in achieving its objectives and targets.
- Performance Measuring: To know that whether the strategy the company has made will be successful or not that comes to know after the evaluation of the present performance. Strategy is based on the recent scenario of the business.
- Correction of performance: If there is any discrepancy in between the result or performance as comparison between the history and the past performance that will rectified and the new strategy is beyond this so that the business activities will give the good result in the future (Haberberg.A and Rieple. A, 2001).
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