Concepts of Strategic Management
13 Pages3946 Words85 Views
Added on 2020-01-28
Concepts of Strategic Management
Added on 2020-01-28
ShareRelated Documents
1Strategic Management1
2Table of ContentsIntroduction......................................................................................................................................3Business environment (pestle and portors 5 forces)........................................................................3Organisation strategy analysis.........................................................................................................6Strategic Resources and capabilities............................................................................................6Organisation's structure, culture, management, system and HR strategy........................................9Critical Appraisal ..........................................................................................................................10Conclusion.....................................................................................................................................10References......................................................................................................................................112
3IntroductionStrategy management is an art of managing resources of an organisation efficiently in toachieve its objectives and goals in a planned manner (Bagley, 2015). For the purpose ofmanaging both external and internal business activities businesses requires to formulate effectivestrategies. This can be done by conducting a detailed analysis of the business environment. Forthis purpose prudential Plc has been taken to analyse the importance of strategic management.Prudential Plc is a financial service group that operates and provide life assurance, and otherfinancial products and services internationally (Prudential, 2016). For this report, Prudential UK& Europe has been selected to analyze its strategies (Bapat, Soni and Joshi, 2014). For thestrategy analysis, different concepts and models like SWOT analysis and value chain analysiswill be used. It will help to cover the key elements of the strategies used by Prudential UK &Europe (Bagley, 2015). Business environment (pestle and portors 5 forces)Prudential Plc is a UK based company engaged in the business of retailing financial services and thus capturing post and pre-retirement market providing products such as unit trusts,insurance, pension plans, annuities, bonds, mutual funds and such other related financial services. The macro environment analysis of the company is being done by using PESTLE model for evaluation (Tabassum, 2014). POLITICAL- Industry scenario of European Union is expected to be affected by the European Commission's Solvency II. The capital requirements of the insurance industry are going to change, according to which the insurance companies would be required to set apart the capital as per the risks they are exposed to. Hence the regulatory requirements are expected to change with the effect due to the political changes (Klumpes, Komarev and Eleftheriou, 2016). ECONOMIC- The financial crises and economic crunch of the industry in the year 2008, have increased the scrutiny requirements on the insurance and the financial service providers (Datta and et.al, 2015). Due to these financial crises the confidence of the investors have resulted in reduced confidence of the investors. This has resulted in the fall in the prices of the securities of 3
4the insurance companies. The recent disturbances in the industrial market has led to the increase in the market volatility and fallen interest rates. There is a decline in the overall performance of the insurance companies globally (Shah and Sengupta ,2016). As a result of which Prudential hasset its annual bonus rates at 3 % for most of the profit bonds and personal pension policies and 2% for annuity customers, thereby suggesting its strong capital position to help it overcome the difficult economic times. SOCIAL- Population of both the countries that is UK & European are over the age of 45 years. This suggests that the current and the upcoming decade is going to face an ageing population. This suggests the increase in the market for the pension plans and other such products in these markets. Hence it is important for Prudential Plc to support the ageing population by providing specific products that meets the changing requirements of the customers. Also presently the market is reluctant to opt for these financial services due to the poor performance of the overall UK market along with the complexity and mis selling of the financial products in UK. Researches suggests that the estimated savings gap of £27 billion per year in UK as the whole. Moreover there are 10 million people in UK which falls in the group of the people which is not saving enough as per the income standard and 3 million people who are not saving at all despite the ability to save.TECHNOLOGICAL- The increased importance of internet and digital marketing has revolutionized the marketing aspect of the products and services sold by the insurance companies. At present internet accounts for approximately 8 % of the global advertising which isfurther growing rapidly (Klumpes, Komarev and Eleftheriou, 2016).. As per recent studies suggests that the financial services industry is lagging behind in the area of digital marketing in contrast to other industries. In reference to the present challenges to which the Prudential Plc andother insurance companies are exposed, it is crucial for the them to use digital marketing conceptand grab a larger market share. Also the technologies should be adopted by the companies whichenhances the transparency in the system which will enable in retaining the customers and also attract new ones. Therefore the increased use of the digital marketing and technology in the business will help Prudential Plc in developing better relations with its customers (Shah and Sengupta ,2016). 4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Report on the Insurance Industrylg...
|15
|4335
|57
Sustainable Strategic Management Assignmentlg...
|15
|4275
|51
Prudential PLC: Management Structure and Governancelg...
|13
|3572
|132
Strategic Management of UK & Europe : Reportlg...
|6
|1055
|76
Business and Business Environment Assignment - Prudential plclg...
|10
|2530
|207
Understanding Organisations and the Role of Human Resources - Prudential PLClg...
|11
|2475
|223