Insurance Operations- Chapter 10 Problems
1. What key elements do insurer mission statements often include?
2. Identify the three basic components of strategy formulation.
3. Describe the factors in the general environment that managers should consider as part of an environmental assessment.
4. List the five forces that drive competition within an industry.
5. Identify areas within the company that managers would examine to identify organizational strengths.
6. Describe the levels at which strategy is formulated within an organization.
7. Compare forward and backward integration in a vertical integration strategy.
8. Describe the three key areas for an insurer to evaluate in making a strategic decision about expansion into a global market.
9. And 10. XYZ Insurance Company is a personal lines insurer with headquarters in Chicago and regional offices throughout the Midwest and Northeast. XYZ's reputation as a strong, reliable organization has engendered loyalty among its employees, many of whom have worked for the company for ten years or more. However, because of heavy competition in the types of insurance it writes, XYZ has lost considerable market share in most of its territories and has experienced steadily decreasing profits. XYZ believes that it is losing market share because it has not kept pace with the needs of its existing customers or the buying preferences of prospective customers. Additionally, its research indicates that locally based insurers in each of the regions in which it operates are better equipped to serve insureds because of their agents more effectively interact with the local community. Despite these conditions, XYZ believes that it is positioned to rebound, provided it deploys its resources more efficiently. A recent investment in technology has led to development of a website that will allow XYZ to provide quotes and accept application online. It hopes to use the website's interactive features to more effectively ascertain its customers' needs and to test the potential appeal of new endeavors such as "green" insurance options, which it currently does not offer.
A. Identify one of XYZ Insurance Company's strengths.
B. Identify one of XYZ's weaknesses.
C. Identify one of XYZ's opportunities.
Text Book: "Entitles Insurance Operations 2nd edition".