Insurance Australia Group: A Comprehensive Business Analysis Report

This report provides a comprehensive overview of the business operations and activities of Insurance Australia Group (IAG). It begins with an executive summary and delves into IAG's mission, vision, and core competencies, highlighting successful and current strategies. The report analyzes two controversies faced by IAG and applies PESTLE and SWOT analyses to assess its external and internal environments. Furthermore, the report examines IAG's organizational culture, emphasizing its role in maintaining sustainability and a positive work environment. The analysis covers key aspects such as political, economic, social, technological, environmental, and legal factors influencing IAG. The report concludes by summarizing the strengths, weaknesses, opportunities, and threats faced by IAG, along with insights into its leadership and employee relations, providing a holistic view of the company's performance and strategic approach.

Running head: Introduction of management
Introduction of management

Introduction of management
Executive summary
The paper demonstrates the information about the operations and activities of Insurance
Australia group which is providing insurance services to the consumers around the world. A
brief overview about the core competencies, core values, mission and vision have been presented
in the task. The organization uses SWOT analysis and Pestle analysis to overcome the
competitors in the international market. Here is the discussion about the corporate culture of
Insurance Australia group. The paper explains that how the company maintains sustainability by
initiating the effective culture in the workplace.
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Introduction of management
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Task 1..........................................................................................................................................................4
Mission, vision and core competencies.......................................................................................................4
Successful strategies deployed in the past...................................................................................................4
Current strategies.........................................................................................................................................5
Task 2..........................................................................................................................................................5
The two controversies in Insurance Australia group....................................................................................5
Task 3..........................................................................................................................................................6
PESTLE analysis.........................................................................................................................................6
SWOT analysis............................................................................................................................................8
Task 4..........................................................................................................................................................9
Organizational culture.................................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
Bibliography...............................................................................................................................................13
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Introduction
The main motive of this task is to provide a brief overview about the business operations and
activities of Insurance Australia group. The core values, mission and vision have been explained
in the paper. IAG provides insurance services to the customers in all over the world. The paper
explains that how the company uses SWOT analysis and Pestle analysis to make a dynamic
financial position in the market. The role of core values and competencies has been discussed in
the task. More detailed of the task have been explained in the paper.
Task 1
Insurance Australia group limited is a multinational insurance company with its headquartered is
located in Sydney, Australia. The organization was incorporated in 2000 in Australia. Peter
Harmer is the CEO of the company. It has been noted that Insurance Australia group is managing
operations in New Zealand and Australia and a presence in five countries in Asia. It is a parent
company of general insurance group with controlled operations in New Zealand, Australia,
Thailand, Indonesia and Vietnam (Iag, 2018).
Mission, vision and core competencies
The main mission of the company is to help the people to provide various products and services
to related to the insurance. The main vision of Insurance Australia group is to enhance and
maximize the profitability and revenue of the firm by delivering the effective and unique
insurance products and services (Buchmueller et al, 2013). It will help to attract more clients in
Australia. The strategy of the company is to optimize the core insurance business while creating
the future growth options in the global market. Along with this, core competencies of the firm
include closer, agility, braver, faster, simplification, dignity and accountability (Iag, 2018).
Successful strategies deployed in the past
There were various strategies used by the company in the past period to gain competitive
benefits in the marketplace. Some of the successful strategies that were used by the organization
have been detailed below (Armstrong et al, 2014).
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Change the customer acquisition model: Insurance Australia group used to customer
acquisition model to attract and retain more consumers in the global market. The bank used
direct mail to create inquiries and branch lobby management to drive the sales and revenue. With
the help of direct mail, insurance Australia group has been able to increase and boost the
profitability (Joshi et al, 2013).
Change the customer conversation: This strategy was also used by Insurance Australia group
to improve and enhance the sales of the firm. Sales efficiency is not only a function and
operation of knowledge but also of coaching and discipline (Turnbull and Valla, 2013).
Current strategies
Diversify service strategy: This strategy is one of the effective and unique strategies which used
by Insurance Australia group. The company uses this strategy to maintain optimum margin
within the organization. The people believe in the banks to attain the benefits from which the
services are provided by the banks.
Fuelling strategy: One of the effective strategies used by Insurance Australia group is fueling.
Fueling means tackling and managing the changes the way through which the company operates
the business activities. Furthermore, optimum utilization of resources can be done with the help
of fueling strategy.
Agile strategy: The Company uses agile strategy to become an agile organization in the global
market. With effective agile strategy, the company can become more responsive to fulfill the
needs and requirements of the customers (Aggarwal, 2016).
Leadership strategy: Leadership strategy is used by the company to supervise and evaluate the
actions and behavior of the people in the international market. No company can survive its
business operations and activities without using leadership styles in the organization.
Task 2
The two controversies in Insurance Australia group
The two controversies in Insurance Australia group have been stated below.
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 IAG is giving notice to holders and customers of two of its tier 2 subordinated debt
instruments that it will precede with redemption of the equipments at forthcoming issuer
call dates in December 2016. It was the biggest controversies in the organization. The
redemption is the part of Insurance Australia group ongoing program and campaign to
refinance aspects of its hybrid and debt capital. It affects the position and performance of
the firm. The two instruments were redeemed in the organization. 100 million of
subordinated term notes with a fixed interest rate of 5.625% per annum, callable on 21
December 2016. NH 187 of subordinated bonds with a fixed interest rate of 7.5% per
annum callable on 15 December 2016. It has been noted that redemption of the two issues
in 30 june 2016 will result in IAG’s prescribed capital amount eliminating by around 4
basis points. This is the main controversy in this group that affects the progress of the
company. This issue may also influence the position of the firm in the marketplace.
 Material issue is another controversy that may influence the market size of the firm
adversely in the international marketplace. Material issue is based on their potential
impact to the company’s business performance and their significance to the stakeholders
of the firm. The material issues were identified by the company by conducting feedback
and interviews from the investors. It also affected the favorable relationship of the
members including customer, community and shareholders, To handle the material
issues, the organization validate the material issues within the organization. It will help to
beat the competitors in the international market. The material issues also affect the rights
and skills of the stakeholders, owners and employees (Techera and Klein, 2013).
Task 3
PESTLE analysis
Insurance Australia group limited uses pestle analysis to analyze and evaluate the external
environment of the company. The pestle analysis for Insurance Australia group limited has been
discussed below.
Political factors: The political elements play an empirical role in determining and evaluating the
factors that have direct impact on the company’s profitability in specific market or country. The
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political factors include intellectual property protection, political stability, bureaucracy, wage
regulations, taxation system and mandatory employee benefits may influence the outcomes of
the company adversely as well as positively (Hillson and Murray-Webster, 2017).
Economic factors: The economic factors including saving rate, inflation rate, employment rate,
interest rate and foreign exchange rate determine and analyze the demand and investment in an
economy. The company can gain various benefits by using of economic factors within the
organization. Insurance Australia group limited can utilize the country’s economic elements like
growth rate, recession, inflation rate and employment rate to maximize the profitability and
revenue of the firm.
Social factors: The social factors include customs, values, beliefs, traditions, aspects and culture
have direct impact on the outputs of the negatively. The shared beliefs and aspects of the
population play a major role in determine whether how the marketers in the company will
understand and evaluate the consumers of a given market and how they create the marketing
message for insurance consumers industry. Insurance Australia group should focus on the
demographics, education level and culture of people may influence the outcomes of the firm
(Diacon, 2016).
Technological factors: The latest technology and new resources are disrupting the several
industries around the world. This factor also affects the plans and policies of the firm negatively.
The company should focus on the technological factors to gain competitive benefits in the
international market. It also affects the goodwill and image of the firm adversely and positively.
Environmental factors: The different markets and countries have their different environmental
standards and different values that can direct impact on the profitability and revenue of the firm
in those markets. The environmental factors include climate change, weather, recycling and laws
regulating the environmental pollution. Along with this, it has been noted that Insurance
Australia group also monitors on technology and resources within the organization.
Legal factors: The legal structure and institutions are not able to meet the demands of the
consumers in the international market. Before entering in the foreign market, the organization
should analyze and identify the legal norms and standards to gain rivalries benefits in the market.
The legal factors include discrimination low, employment law, copyright, Health and safety law.
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The company should also focus on the rules and legislation of the host country. It will help to
destroy the competitions in the international market. The pestle analysis also helps in reducing
and eliminating the challenges and risks of the market (Gray et al, 2016).
SWOT analysis
SWOT analysis is one of the significant strategies for Insurance Australia group to analyze and
evaluate the strengths and weaknesses of the competitors. The SWOT analysis has been
discussed below.
Strengths
 The company uses effective and dynamic strategies to beat the competitors. Good return
on capital expenditure is one of the significant strengths for the company.
 Through merger and acquisition, the firm has been able to track the records and data
within the organization.
 Strong and dynamic distribution network and strong portfolio are other significant
strengths for the organization.
 Strong dealer community is also strengths for the organization that helps to maximize the
revenue and returns.
Weaknesses
 High and immense competition exists in the marketplace.
 Data inventory is high as compared to the competitors.
 Financial planning is not done effectively and properly.
 There are big gap in the product range sold by the organization. Lack of choice leads to
high competition in the global market.
Opportunities
 The organization’s core competencies and values can be a success in similar other
products field.
 Due to market development and expansion, Insurance Australia group can increase its
competitiveness as compare to other competitors.
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 Government green drive also provides an opportunity for the procurement of Insurance
Australia group limited products by the federal government and state government
contractors.
Threats
 Shortage of labor force in the international market is the biggest threat for the firm.
Rising strengths of local agents is also a major threat for the organization.
 Liability laws in different countries are quite different.
Task 4
Organizational culture
The culture of the company is unique and strong for attaining the goals and targets in the global
market. Insurance Australia group is committed the highest level of corporate governance to
ensure the sustainability of the firm and to generate a long term value for its shareholder. To
attain this, the company is promoting and encouraging a culture that integrity, respect and reward
performance (Blake, 2013). Having a strong and effective culture, the company has been able to
maintain a peaceful and favorable working environment in the workplace. With the help of
strong culture, the organization can maintain a sustainable balance between its core business and
stable returns to shareholders (Blockeel et al, 2016). Peter harmer is the CEO and managing
director of the firm who helps in motivating the workers for performing tasks and duties
effectively and efficiently (Hubbard, Rice and Galvin, 2014). IAG team includes learning and
development, HR systems, organization development, Employee relations and career centre.
Dynamic culture provides enormous opportunities to the workers and organization as well. The
core values of the firm include integrity, responsibility, honesty, sustainability, passion and
diversity. The chief executive officer of the company motivates and inspires the talented and
skilled employees for performing tasks and duties in a hassle free manner (Johnston et al, 2015).
Along with this, Peter Harmer uses effective leadership styles such as democratic and
transformational to guide and assist the current and new workers successfully. In this way, the
organizational has been able to be a leader in the international market (Benn and Dunphy, 2013) .
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Conclusion
On the above mentioned analysis, it can be concluded that core values and strategies play a
enormous role in each and every company. Insurance Australia group is one of the significant
companies in industry sector. The company provides enormous insurance services to consumers
across the world. The above analysis shows the mission, vision and core values of the firm.
Pestle analysis and SWOT analysis are done by the firm to gain rivalry benefit. It explains that
how the company resolves the two controversies within the organization. Apart from this, there
is a description about the corporate culture of Insurance Australia group.
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References
Buchmueller, T.C., Fiebig, D.G., Jones, G. and Savage, E., 2013. Preference heterogeneity and
selection in private health insurance: The case of Australia. Journal of Health Economics, 32(5),
pp.757-767.
Benn, S. and Dunphy, D., 2013. Corporate governance and sustainability: Challenges for theory
and practice. Routledge.
Blake, R., 2013. A new Canadian dynamism? From multiculturalism and diversity to history and
core values. British Journal of Canadian Studies, 26(1), pp.79-103.
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson
Australia.
Turnbull, P.W. and Valla, J.P. eds., 2013. Strategies for international industrial marketing.
Routledge.
Aggarwal, V., 2016. Winning in Asia, European style: market and nonmarket strategies for
success. Springer.
Hubbard, G., Rice, J. and Galvin, P., 2014. Strategic management. Pearson Australia.
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude.
Routledge.
Gray, S., O’Mahony, C., Hills, J., O’Dwyer, B., Devoy, R. and Gault, J., 2016. Strengthening
coastal adaptation planning through scenario analysis: a beneficial but incomplete
solution. Marine Policy.
Blockeel, C., Drakopoulos, P., Santos-Ribeiro, S., Polyzos, N.P. and Tournaye, H., 2016. A fresh
look at the freeze-all protocol: a SWOT analysis. Human reproduction, 31(3), pp.491-497.
Diacon, S. ed., 2016. A guide to insurance management. Springer.
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Techera, E.J. and Klein, N., 2013. The role of law in shark-based eco-tourism: lessons from
Australia. Marine Policy, 39, pp.21-28.
Joshi, M., Cahill, D., Sidhu, J. and Kansal, M., 2013. Intellectual capital and financial
performance: an evaluation of the Australian financial sector. Journal of intellectual
capital, 14(2), pp.264-285.
Johnston, V., Way, K., Long, M.H., Wyatt, M., Gibson, L. and Shaw, W.S., 2015. Supervisor
competencies for supporting return to work: a mixed-methods study. Journal of occupational
rehabilitation, 25(1), pp.3-17.
Iag. 2018. About us [Online], Available from 12th May 2018, [Accessed as on
https://www.iag.com.au/creating-shared-value]
Iag. 2018. Our spirit [Online], Available from 12th May 2018,[Accessed as on
https://www.iag.com.au/careers/our-spirit]
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