Aviva Case Study: Leadership Challenges and Strategic Decisions

This case study analysis focuses on Aviva, a major insurance company, and its performance issues under the leadership of Andrew Moss. The analysis examines the factors contributing to Aviva's decline, including Moss's management style and strategic decisions, particularly in the context of the 2008 financial crisis. The assignment requires an understanding of the management issues, the application of Porter’s generic focus strategy, and the comparison with competitor Prudential. The analysis highlights how Aviva's strategic bets in European markets were less successful compared to Prudential's focus on the Asian markets, and how this contributed to its underperformance. The case study also references the importance of strategic management and leadership in organizational success, as well as the application of theoretical models to real-world business scenarios.

3112IBA-WORKSHOP CASE ANALYSIS PREPARATION FORM
Please be aware that this aspect of the assessment task is about PREPARATION for the workshop discussions, late submissions will
NOT be accepted for the workshop submissions.
Your submissions should total and not exceed 300 words per case analysis preparation. You will answer the specific questions outlined
for each case. The case analysis preparation must be submitted via the course site. No emailed submissions will be marked.
Name:……………………………Student No:……………………Workshop No:……………..… Case Study:……………………………....
Briefly explain what is the case
about?
(you can use bullet points for this
question)
The case is about the poor performance of Aviva, UK’s largest insurance company under the
leadership of Andrew Moss that feel nearly 70 per cent in the period from 2007 to 2009,
compared to its competitor Prudential. It is about the factors that ahs led to the decline in the
share of the prices of Aviva, whether it is Moss’s alienating style of interaction with analysts and
investors of the finacila crisis of 2008 and the disproportionate publicity of the struggling
economies of Europe (Piazza, A., & Castellucci, 2014).
Briefly explain the management
issue(s)?
(you can use bullet points for this
question)
Aviva under Andrew Moss was exapnding immensely in Continental Europe though the results
were dissapointing because of improper strategies and overambitious forecasting of their CEO.
By the end of 2012, Moss’s target was to double the earnings per share, from 48.5 pence in 2007
to 97 pence. In the period from 2007 to 2012, the shares of Aviva were underperforming within
the importnat indexes it was member of, lagging behind its competitor, Prudential. Aviva’s
strategic bet in the European markets were less successful and their vision lagged evaluation of
the Asian markets that proved so beneficial for Prudential. Their management did not learn from
the success of Preudential, they lacked the analytical abilities and it seems were not much
informed about other markets.
Link the management issue to the
model/theory of the week and briefly
explain the connection.
In Porter’s management theory, the generic focus strategy is mainly on the narrow competitve
extent within the insurance industry. Prudential went for differentiation strategy, focsuing on the
Asian target segment whereas the management of Aviva failed in doing so, concentrating more
on cost factor in the Europeqan markets though the economy was struggling for the 2008
financial crisis (Piazza, A., & Castellucci, 2014).

3112IBA-WORKSHOP CASE ANALYSIS PREPARATION FORM
Reference:
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach.
Cengage Learning.
Piazza, A., & Castellucci, F. (2014). Status in organization and management theory. Journal of
Management, 40(1), 287-315.