This presentation provides a comprehensive analysis of Aviva Life Insurance, including its strengths, weaknesses, opportunities, and threats (SWOT), as well as an analysis of the external factors affecting the company (PESTLE). It highlights the importance of analyzing both internal and external factors for success in the market.
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INTRODUCTION:Aviva is multi-national insurance company headquartered in London, England in 2000. It has about 33 Million customers across 16 countries. Aviva is one of the largest general insurer and a leading life and pensions provider. The company offers wide range of insurances like car, house, life, etc. Aviva is one of most popular insurance companies with an annual Revenue of £70.252 billion in 2019. Business Environment Let's Analyze the external factors of Aviva Life Insurance: 1) Political Factors: Factors involving Government intervention that might affect the economy and the business operations. Some of them are: •Political Stability and importance of insurance sector in the country's economy. •Risk of Military invasion •Level of Corruption – Especially levels of regulation in financial sector. •Legal framework for contract enforcement 2) Economical Factors: By analyzing the Economical factors, businesses determines the economy's performance in the certain industry that result in computingtheorganization'soperationalcapabilities.Someofthe economical factors are: •Diverse Economy: UK has a diverse economy. UK's market is so diverse it gives an equal opportunities for the every business to grow and develop. •Foreign Direct Investment: A society with a wide culture gives people from foreign countries a space to live and grow. It's economy has attracted people from many countries across the world. •Tax Rate: The corporate tax for companies in UK is 19% but after the announcement in 2020 tax rate was reduced to 18%. Inflation: In 2020, Rate of inflation in UK was 1.94% which was less in 2019 that was 1.7%. 3)Social Factors:Factors that are affected by trends, beliefs and attitude of the population are Social Factors. Some of the Factors are: •Population: According to an estimation, UK is estimated to reach 74 Million of population by the end of 2039. •Health care System: People in UK are very much concerned about their healthandsotheirtheyspendhugeamountsofmoneyonlife insurances. This makes UK a great market for a company like Aviva Life Insurance. •Education:UKisoneofthecountriesthatkeepsupdatingtheir education system annually with the advanced knowledge. •Income Level: There is a fall in the rate of unemployment and a reasonable inflation rate makes citizens of UK high income earners. 4)TechnologicalFactors:UKisoneoftheleading countries when it comes to technology and advancement. Theeconomyprovidesmanyopportunitiesforthe entrepreneurs. Every advancement is for betterment of the economy. 5)LegalFactors:Companies in UK has to follow the Employment Act 1996. This acts protects the rights of the employees and ensure they get all the benefits like minimum wage, holiday pay, medical pay, maternity or paternity leave. 6) Environmental Factors: The UK faces issues such as: •Bad Weather •Climate Changes •Laws regulating environmental pollution SWOT Analysis of Aviva SWOTAnalysisofAvivaLifeInsuranceanalysesthe company'sinternalfactorlikeit'sstrengths,weaknesses, opportunities and Threats. In this SWOT Analysis, strengths and weaknesses are the internal factors and opportunities and threats are the external ones. Strengths: Strengths of Aviva Life insurance UK: •Aviva has a strong financial performance •Aviva is one the companies with a consistent business performance across business segments. •The company has high brand awareness and focuses on cross-selling. Weakness:Weakness is something that Aviva can improve: •Aviva needs more investment in new technologies •Financial planning is not done properly. Opportunities:Strong growth: The Indian market is growing and the percentage of earning population is also rising. This makes India a high potential market for insurance schemes as people are looking for options for investment. External Environment PESTLE Analysis: PESTLE Analysis is a concept of marketing which is a system to study the external (Political, Economical, Sociological, Technological, Legal and Environmental) factors that helps in day to day planning of a business. CONCLUSION It can be concluded from the above that a company should doanalyzetheinternal(SWOTAnalysis)andExternal Factors (PESTLE Analysis) on a regular basis to ensure success in the market. From the above SWOT Analysis, it can be understood that the company has a strong financial position in the market but still needs to work on financial planning to ensure stability in the market and also identify the opportunities and threats like the competitors in the market. From the above PESTLE Analysis, It is understood that a company needs to take care of all the external factors like Political, Economical, Social, Technological, Legal and EnvironmentalFactorstoensurethatthegoalsand objectives are achieved.