AON Plc Business Expansion Strategy in Sweden: A Comprehensive Analysis

This report analyzes AON Plc's potential for business expansion in Sweden, examining the company's background, the Swedish business environment, and relevant analytical approaches. It utilizes SWOT, PESTEL, and Porter's Five Forces models to assess the opportunities and challenges AON Plc faces in the Swedish market. The report also explores the application of analytical techniques like the BCG Matrix, Risk Maturity Index, and a unique approach to managing supply chain risk. Finally, it provides a comprehensive conclusion based on the analysis, highlighting key recommendations for AON Plc's successful expansion in Sweden.

Business Report

Table of Contents
Executive Summary.............................................................................................................................3
Introduction.........................................................................................................................................4
Background Information about Business Organisation...................................................................5
Discussion on Business Environment.................................................................................................7
Application of Analytical Approach.................................................................................................10
Application of appropriate data and examples...............................................................................13
Conclusion..........................................................................................................................................16
References..........................................................................................................................................17

Executive Summary
The main aim of AON Plc is to expand the business along with the market share as the
company is offering different professional services and provide an appropriate range of health
solutions, risk along with the retirement. The professionals of the company work effectively
with the partners as they have to develop the strategies so that business organisation can
expand business successfully. It is necessary that they have to maintain the coordination with
the managers and professionals and by this, they can identify the new opportunities. AON Plc
can establish the business and for that market research conducted and it has been identified
that AON Plc facing so many challenges in the internal market because of variations in the
laws by the Swedish government and changes in social culture and lifestyle. Along with this,
by using the Porter’s Fiver force model, competitors of AON plc in Sweden are WILLIS
TOWERS WATSON PUBLIC LIMITED COMPANY and ACCENTURE PUBLIC
LIMITED COMPANY

Introduction
A business report is the composed archive which gives data and needs to examination with
the goal that they can help business in settling on a suitable educated decision. The
fundamental motivation behind the business report is to make information which is related to
an organization which include competition, analysis of the market, efficiency level. This
report includes the analysis of AON plc which wants to expand the business as well as market
share in Sweden. It is necessary that AON plc need to conduct effective market research so
that they can collect the appropriate information about the market and by that, they can
expand the business. AON Plc is global professional services which offer the risk, retirement
as well as health consulting. To expand the business, managers need to search for the
experienced professionals and graduates so that they can join the business environment as
well as provide the effective contribution to the success and enhancing market share as well.

Background Information about Business Organisation
AON Plc is a top global insurance company and it is categorised into different services which
include reinsurance solutions, retirement health and commercial risk solutions as well as
analytical services. AON Plc assists in offering the services related to insurance and
reinsurance brokerage. Aon Plc operates into two segments which are the risk and human
resource solutions. The risk solution segment of company offers the retail brokerage services
such as placement, data and analytics, transaction liability, workers compensation as well as
other healthcare products. This section gives the warning administrations to innovation,
aviation, development, medicinal services, and vitality (Bloomberg, 2018).
Another segment of Aon Plc is Human resource solution which offers the effective services
related to different areas of human capital which include compensation, investment
consulting, retirement, strategic human capital, business process outsourcing of human
resources, exchanges and advantage administration. Aon Plc started their operating activities
in the year 1919 and the headquarter of the company is situated in London. The company
provide the effective products as well as services which are considered the brand name that is
Aon Hewitt (Bloomberg, 2018).
Figure 1: Total Revenue
Source: (Aon Plc, 2014)
Aon Plc having an effective structure which helps in delivering the best solutions to the
clients in the whole world. The company is using available and appropriate resources which
help in fulfilling the needs of clients and provide the effective satisfaction to them. To work

in the whole world, Aon Plc has established its Global Client Network. This network helps in
offering the innovative solutions related to risk and offer qualitative services to clients (Aon
Plc, 2018). The management team of Aon Plc is providing an effective commitment to
working together in the whole world by using effective resources so that they can share the
knowledge and deliver the best results according to the requirements of clients. Another
commitment which Aon Plc has done with their client is to share the knowledge which assists
in expanding the business in the marketplace. This assist in providing encouragement to the
different events and aid in promoting the business networking as well as discussion (Aon Plc,
2018).
The revenue of Aon Plc is $9998 and operating income $979. Along with this, net income of
the company is $1226 and dilutes earning per share is $4.70. The total assets of the company
in the year 2017 is $26088 and the liabilities is $21440. Aon Plc having a net change in cash
in the year 2017 is $256 (Dun & Bradstreet, Inc. 2018). In the business organisation, risk in
the business is expanding as well as changing on a constant basis. Aon Plc is a leading
service provider of risk management services whether it is insurance and reinsurance,
employee’s risks, financial planning along with the solutions which assist in attaining
maximum benefits (Aon Plc, 2018).
Figure 2: Total Revenue
Source: (Aon Plc, 2014)
In the competitive market, Aon Plc is stable and also having a fluctuating growth but on the
other hand, the stock of the company looks overpriced. Along with this, the company has a

low dividend yield. Fair Price of Aon Plc is $42.96 and it is based on intrinsic value (Big
Blue Marble, 2018).
Discussion on Business Environment
In the present time, there is a trend which is increasing among the diversified companies in
the whole world assist in maintaining the sustainability. Swedish business organisation is
having the best and appropriate communication in managing the sustainability. The
employees of Aon Plc need to conduct the effective research of business environment as it
helps in expanding the business as well as market share. They have to manage the main
elements of business which include consumers, suppliers or employees (The Local, 2018).
When professionals conduct market research then, the appropriate and effective tool should
be adopted which are SWOT, PESTEL and Porter's Five Force model. SWOT and PESTEL
analysis both are the useful and best tools for the mangers of business as these tools help in
evaluating the pros and cons of making the effective decisions. These tools can be applied to
both the projects whether it is large or small such as marketing campaign, new methods for
production and reorganisation.
SWOT Analysis of Sweden
Strength Weakness
In Sweden, premium rates of insurance are
increasing and by that commission also
increasing.
Variety of insurance is also increasing.
In Sweden, insurance companies are slow
according to the changing needs and not
provide an effective response.
Increasing trend among the companies
related to financial weakness (Borgheipour,
et. al., 2018).
Opportunities Threats
Increase market share. Fluctuation in exchange rates

Revolution of technology.
Expansion of services.
Diversified environmental regulations and
norms.
PESTEL Analysis of Sweden
Elements Description
Political Sweden having a constitutional monarchy which includes
Swedish parliament. In Sweden, all the parties whether it is
employees or students are treated equally and have equal access to
means of communication.
Economic Sweden having effective and efficient capital market and
investment which offer access to the variety of credit instruments.
Moreover, Sweden having the best economic structure in
recession as it provides fiscal support and enhances the labour
force participation.
Social This factor includes norms and values of Sweden related to
gender equality as it is still improving and provide satisfaction to
them. Swedish agencies of insurance provide benefits which
include benefits for the unemployed and retired person (McIntosh,
et. al., 2018).
Technological In Sweden, companies are using different and updated
technologies to provide the effective services to clients.
Environmental In Sweden, companies are providing positive work environment
to employees and using renewable energy sources.
Legal In Sweden, companies are using laws and regulations. The

Swedish system of Judicial reviews having high transparency and
The Swedish Law Act help in registering the trademark.
Porter’s Fiver force model
This model is categorised into five parts which include:
 The threat of New Entrants: Company can innovate the services so that all challenges can be
managed and attain success in high competition.
 Bargaining Power of Suppliers: The employees of Aon Plc assist in building the efficient
supply chain with the multiple suppliers and assist in enhancing profitability.
 Bargaining Power of Buyers: Buyers are demanding and company need to build the large
base of consumers which assist in reducing bargaining power and provide opportunity in
enhancing sales as well as expand the business in Sweden (Inoue, 2018).
 The threat from Substitute Products: In a company, the threat of substitute product is high and
it can tackle by understanding the core need of consumers as well as increasing switching
cost for consumers.
 Rivalry among the existing players: Aon Plc operates in competitive market and toll on the
overall long-term profitability of business entity. They have to maintain differentiation so that
sustainability can maintain.

Application of Analytical Approach
Analytical approaches or techniques refers to the procedure as well as a method for the
evaluation of some problems or facts. Analytics techniques are categorised into different
parts include time and task limited. These techniques assist in resolving the specific issues
and by that business can be expanded. Different analytical techniques include BCG Matrix,
Brainstorming, Benchmarking, Pareto analysis, Financial Audit, Ansoff Matrix, Cause and
effect analysis and VRIO Analysis (Management Mania, 2016). The manager of Aon Plc can
adopt the BCG Matrix, Unique approach to manage supply chain risk and Risk Maturity
Index.
Risk Maturity Index:
It is an innovative tool which is designed to capture as well as assist in assessing the risk
management practices of the business organisation. This provides the participants with the
immediate feedback in the form of rating as well as include the comments for improvement.
This Risk maturity index help in understanding the questionnaire on the process, risk
understanding and corporate governance (Aon Plc, 2018). Risk maturity includes different
characteristics such as commitment, risk communication, culture, risk identification, the
participation of stakeholder in risk management. Moreover, risk management of Aon Plc
provides effective focus on the value creation. In the companies, all the responses of
participants and rating provide to risk are confidential and assist in computing the aggregate
data.
The unique approach to manage supply chain risk:
The company having complex supply chain exposure and by analysing that Aon develops the
unique approach which assists in formalising the evaluation, qualification as well as
supervision of the needs of the organisation. Aon Plc strategy includes the different key
components as well as consider the balance of efficiency and performance through a supply
chain. Different aspects by assessing supply chain risk which includes supply chain
relationship, political risk aspects, current manufacturing and vulnerability.
BCG Matrix:

It is a method which comes from Boston consulting group as it is utilised for the analysis of
product portfolio of the company in marketing as well as sales planning. This method having
an aim to analyse each product as well as help in market share expansion and growth as well.
The combination of two dimensions that is market share and growth help in creating a matrix
and according to that product is placed in the portfolio.
High market share Low market share
High market growth Star Question mark
Low market growth Cash cow Dogs
Aon Plc having different products and each product can be categorised as:
 Cash cows: This type of product does not require the high investment as these types of
products and service help Aon Plc in expanding the business in Sweden and can enhance
profitability.
 Stars: These products having a potential as well as the ability to become cash cows as it is
necessary and essential to invest in advertising and so on.
 Question Marks: These types of products help in creating the difference between the different
products and services and they may become cash cows.
 Dogs: These products should withdraw from the market (Management Mania, 2016).
BCG matrix is the most practical analytical techniques for the business entity and it is crucial
for the determination of product strategy of the business.
Financial Audit:
It is also a tool which assists in analysing the financial statement of the business entity. A
financial audit is conducted by the auditor. Its goal is the effective analysis of financial
statements of Aon Plc and provides the true picture of a company in front of stakeholders.
The service of Aon Plc is human resource consulting, reinsurance brokerage. The revenue of
the company in 2017 is $9998, assets of the company is $26088 and the liabilities of Aon Plc
is $21440 (Dun & Bradstreet, Inc. 2018).

Application of appropriate data and examples
For example, in expanding the business in Sweden, then they have to use an appropriate and
effective process which assist in attaining the effective results. They have to conduct the
survey and that survey should be collected form leaders and employees. In expanding the
business, they have to set the benchmark so that in Sweden, they can attain the aims and
objectives. This will assist in making the strategic decisions for future. It is a duty of Aon’s
employees to provide the effective solutions to clients and by that, they can accomplish the
sustainable growth as well as help in enhancing performance. They have to adopt an effective
procedure which includes different steps that is pre-application, screening and selecting and
at last developing and retaining. The below procedure is the best process and Aon Plc needs
to adopt in collecting the survey for identifying the status and open a new branch in Sweden.
Figure 3: Procedure to collect survey
Source: (Aon Plc, 2017)

The above procedure is categorised into different steps which are stated above and this will
help in collecting feedback to expand the business. This will help in making the effective
decision.
Source: (Aon Plc, 2018)
The above chart describes the variations in the cash in the year 2017 and 2016 is 4%, in
bonds, they are having 69% change. A number of shares and price also vary by 20% along
with the receivables which are associated with insurance operations directed by the 7%.

Figure 4: Free reserves
Source: (Aon Plc, 2018)
The above data is based on the information and data which is supplied by the clubs as it
includes the Swedish Club, as well as free reserves, involves the reserves which are available
to non-P&I business. The free reserves of Club involve the hybrid capital (Aon Plc, 2018).
The free reserves of the Aon Plc in the year 2017 is $213800 and in 2016 $194200.

Conclusion
From the above, it has been analysed that AON Plc is a leading company which offer global
professional services which provide the appropriate range of risk, health solutions and
retirement. AON Plc having 50,000 colleagues and also in the 120 countries which aid in
empowering the results for clients by using effective data and analytics. This help in reducing
the volatility as well as improve the performance. The managers of AON Plc need to conduct
the market research so that appropriate and efficient information can be gathered and by that
senior authorities cannot face any issue in expanding the business as well as market share.
They have to use appropriate tools and techniques that is PESTEL analysis and Porter’s five
force model which help in identifying the competitors in the market. PESTEL analysis help
in identifying the outside factors which have an adverse impact on the business. This tool
help in making the effective decision as well.

References
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