Assignment On Legal & General Group

Running Head: TITLE OF ASSIGNMENT 1
Paper Name

TITLE OF THE ASSIGNMENT 2
Table of Contents
Brief context of the organization............................................................................................3
How its business performance is measured in a competitive market?................................3
L&G will be using the following metrics for this procedure-..............................................5
For sales:...................................................................................................................................5
Analysis of how appropriate risk management techniques could contribute to business
performance..............................................................................................................................6
Recommendation....................................................................................................................11
References...............................................................................................................................12

TITLE OF THE ASSIGNMENT 3
Brief context of the organization
The following assignment is based on an insurance organization named Legal &
General Group plc. The organization's headquarter is based in London, United Kingdom. The
company is also known as Legal & General or L&G in general. It is mainly a multinational
company that provides several financial services such as life insurance, general insurance,
investment management, and mortgage services. The company mostly operates in the UK and
the United States, but it also offers investment management services in many regions of Asia
and Europe. L&G has the 10th position in the list of the world’s largest investment
management organizations. The company is also enlisted in the London Stock Exchange as it
sells its stocks and shares to other companies. The organization was first formed in 1836 in
London by six lawyers. Primarily it was named as New Law Life Assurance Society. Back
then, the company did not serve the general public1. Instead, they only limited their services
to the individuals who were in the legal occupations. Later, they changed their name and
made the services available for all the general public. But even then, the company policies
restricted anyone outside the legal field from owning the company shares. Decades later, their
policies changed when L&G started expanding its operations in the whole country and started
operating in some overseas locations as well. There is a vast range of products and services
offered and delivered by this organization2. Over time the firm has acquired quite a reputation
and gained some trusted agents and many financial advisors. So apart from their sale service,
they started providing brokerage agreements as well. Currently, their CEO is Nigel Wilson,
who also the executive officer of the firm's general investment management.
In 2018, the company’s gross income was 1.26 Billion dollars. It was much lesser than what
their gross income was in some previous years. Therefore, the company is putting up some
strategic objectives and taking up measures to sustain its growth and revenue. Since the
company operates in many countries, its expenses and revenue varied in different countries.
But now the company wants to prepare strategies to increase their income in their home
country and sustain their growth3. Meanwhile, the company also had an operating ratio of
95% in 2018. So they also want to decrease the percentage by the next five years.
How its business performance is measured in a competitive market?
1 BRICS, Bert. Business analysis for business intelligence, 2016
2Rodrigues Quesada et al., "Proposal to Implement the Balanced Scorecard in a Non-Profit
Organization," 2017
3Runyan, Rodney& Jeffrey Covin. "Small Business Orientation: A Construct
Proposal." Entrepreneurship Theory and Practice 43, 2019

TITLE OF THE ASSIGNMENT 4
The management of an organization uses an analytical procedure to evaluate the
organization's current performance in the market compared to the targets set by the
management. This is identified as a business performance measurement or BPM. An
organization may also take into account its past performance while assessing the present
performance. This procedure is also referred to as corporate performance measurement. An
organization cannot manage its business performance in one day or by evaluating the
performance one time. It has to be a consistent process to realize whether the company is
making progress over time and moving toward its predefined targets. There are three
significant actions involved in this procedure that are – selecting the targets, associating
measurement data, and the management's responsibility to make changes in the organization's
activities or revise the targets. These activities are performed parallelly with the
organization's objectives. There are some tools to conduct the measurement. The tools use
some appropriate metrics and indicators. Thus, the management can measure the
organization's performance, understand how it is doing in the present market and revise the
operations or distribution of resources4.
Since the goal is to understand the business’s performance in the competitive market, the
organization may utilize different types of performance measurement to grow successfully
among its competitors. As the company will be taking up new strategies to improve itself, it
can use a technique to measure its strategic performance management. For this, they will be
using the Balanced Scorecard as this is the most accurate technique for this purpose. The
organization has to locate the area of performance in terms of strategies that they want to
measure here and then they also have to evaluate whether they have the financial resources to
accomplish what they aspire for5.
To measure the company's performance in the market, there are other multiple tools
like Key performance indicator or KPI, Six Sigma, 360-degree feedback, personal
development plans, etc. for this, the organization's management will be using the KPI
procedure. KPIs are good options for a company to measure themselves compared to their
goals. Experts suggest that no one can change what happened in the past, but they can
improve themselves to change the future. So, the companies should not look at their past
4Croce et al., "How business angel groups work: rejection criteria in investment
evaluation." International Small Business Journal 35, 2017
5Barbosa, The Relationships Between, on the one hand, Size, Growth and Age of the Firm
and, on the other hand, Small Business Survival–A Constructive Critique and a Proposal of a
New Framework, 2016.