Strategic Management Report: Imperial General Insurance Assessment

This report provides a comprehensive strategic analysis of Imperial General Insurance, a non-life insurance company operating in Ghana. It begins with an executive summary and introduction, outlining the company's vision, mission, and objectives. The report evaluates the relevance of Porter's Five Forces model in identifying industry elements and trends, analyzing the competitive environment in which Imperial General Insurance operates. It critically assesses the company's current corporate strategy and provides recommendations for its future strategic direction, including outsourcing strategies for IT, brand communication, data entry, and fleet management. The analysis highlights the importance of strategic positioning, competitive advantages, and adapting to the financial insurance industry dynamics to ensure sustained success. The report emphasizes the significance of customer relationships, technological advancements, and stakeholder engagement in achieving organizational goals. The conclusion summarizes the key findings and recommendations, reinforcing the need for strategic planning and adaptation in a competitive market.

STRATEGIC MANAGEMENT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
1.Vision and mission statement of Imperial General Insurance and its specific objectives...1
2. Evaluate the relevance of Porters’ Five Forces as model for identifying the elements and
trends in the industry..............................................................................................................3
3. Analysis of the competitive environment in which Imperial General Insurance operates.5
4. Critical perspective on the corporate strategy currently being pursued by Imperial General
Insurance.................................................................................................................................8
5.Discuss your recommendations for the future strategic direction of the company.............9
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

EXECUTIVE SUMMARY
Imperial General Assurance, a developing insurance agency in the nation, which falls
under the Global Haulage gathering of organizations and to to execute non life coverage
organizations. Administration and partners have deliberately situated the organization in an
intensely worthwhile way to make an incentive for the two its clients and investors. Despite the
organization's vital situating, a few elements of the organization will work better if outsourced to
specialists in different fields. The proposed zones for outsourcing incorporate; outsourcing the
IT Department, Outsourcing Brand Communication, Outsourcing information passage lastly,
outsourcing armada administration. The by a portion of the advantages the organization remain
to pick up are diminished operational cost and esteem included administrations.
INTRODUCTION
Strategic management brings an organisation to lift up with formulation of different plans
and procedure to achieve its objectives. On behalf of owner, the top management will take
various key decisions. In a firm, most of the strategic planning should be based on the mission
and vision which is important to meet in final outcomes. Imperial General Insurance is the sister
company of Royal Bank GH Ltd. From Porter’s five force analysis, it can be easy to find the
organisation’s position in the market and various models can be benefited to analyse the
situation of market. and it disadvantage will are the major obstacle in execution of plans..
Further, the competitive environment in which the firm operates their business has been
critically analysed in the given study. From the analysis, the performance of company can be
easily identified the basic structure from the management to take the important decision which
can be measure outcomes. The internal and external factors are important to be considered to
execute various decisions. From the critical perspective on the corporate strategy which is
currently pursued by firm can be identified. Along with this, recommendation is based on
profitability of the organisation attractiveness of an industry, market or industry structure and
corporate strategy.
1.Vision and mission statement of Imperial General Insurance and its specific objectives.
For every firm, the most important thing is their visions and mission which helps in
meeting the final outcome of the organisation. The goodwill of firm depends on its objectives.
Further, the ethical practice and its values will be more crucial among the competitor to attract
1

the customer. However, the financial industry needs trust because all the decisions are based on
the customer’s money. If the organisation is not able to fulfil its objective, it will directly burden
only future performance(Lussier, R.N. and Achua, C.F., 2009).
The vision and mission statement of the organisation will help to recognise the brand personality
among the customers. Also, the success of the firm lies on the vision statement which shows that
organisation wants to make their image in the nation by contributing through excellent
performance in the industry along with developing society and economic growth. Various
development in the organisation also depends on the mission and vision statement. It can be
included which can be easily remember and it should be repeated. It must be clear with proper
frame of prime objectives of the organisations. The future oriented mission bring the firms plan
which can be meet the current position .. The statement must sound inspired to the stakeholders
of the organisations.
The following are the vision and mission statement along with specific objectives of the Imperial
General Insurance
Vision: To be noted for excellence in the provision of insurance services in Ghana.
Missions: To assure our customers soundness of mind through the provision of insurance
products that give them the best security, working with and through a highly motivated staff and
the deployment of the most advanced and customer friendly IT systems thereby guaranteeing
enhanced shareholder value at all times.
Objectives: Imperial General Insurance have certain objectives such as:
 To serve the customer with the passionate team and give the best solution to invest their
money.
 To cover the market share and make the brand identity globally.
 Technological based organisation which can be easy to operate with better experience to
the customer in services.
 Relationship with stakeholder forever to deal with various business together and achieve
the outcomes.
It can be stated that the mission, vision and objectives of an organisation plays a very important
role to build image in the market.
2

2. Evaluate the relevance of Porters’ Five Forces as model for identifying the elements and
trends in the industry
In the financial insurance industry, prevails a very high competition and the products are
most difficult to sell to the customer. The competitor will make different identity while Imperial
General Insurance have also planned to take the competitive advantages. From Porter’s five
forces, the trend and different elements can be easily identified which can be either hindrance or
foster for the organisations. The evaluation is based on the five-force model as follows:
Threat of new entrants: This force will help to determine whether the entry in the industry is
easy or not. Due to the new entrants in the industry, the major impact is on Imperial General
Insurance profitability and their performance in the market can be hampered. It is important for
the existing firm to deter the new entrant in the industry. The new entrants can give high threat
when low funds are required to enter into the market. Imperial General Insurance will plan in
such manner that threat from the new entry will not be affected due to different services
provided to the customer. The threat can be sometimes generated due to the no any regulation
guideline have been introduce by the government form the new firm to entry into the market. If
any of the new organisation will enter into the insurance industry the other organisations. The
product are also identical and the General insure have to focus to build better relationship with
the customer to get trust in which the threat of new entrant can be minimise.
Bargaining Power of Suppliers: Insurance industry has allowed huge commission to the
suppliers and their business is based on the incentives. The high sales can be maximise the huge
commission will get. So, the bargaining power of the supplier will be moderate in this industry
which may not affect the Imperial General Insurance. If the supplier will bargain with the
organisation then it may affect the profits and products are same with every competitor but the
difference is more relationship with customer are with supplier of the organisation and they can
threat for their reason to take advantaged from the firm. Other cost can be high due to high
number of competitor in the market.
Bargaining power of buyers: In insurance industry, the buyer doesn’t have the power to
bargain because if they will invest more money, there is a chance of getting high return. So, it is
the main advantage for the organisation to influence the customer for the best possible plan to
get high extra money from the investment. But the problem is only few buyers of the insurance
products may be the major cause to them (Mail,Mohamed, Atan, 2016). For Imperial General
3

Insurance, they can attract the customer by providing better policy and plans which can be the
benefited to the buyer and they will invest their money more in the organisation. As shown
before, protection infiltration as at January 2016 was still at 2% with 48 insurance agencies in
the nation. The market is soaked with monstrous rivalry to pick up an offer of the market.
Aggressive evaluating is the main resort for littler organizations to keep up a part of the piece of
the pie which in the end prompts undermining of premiums. Clients have bartering power.
Threat of substitute: This fore can be easily impact to the organisation when the buyer get the
substitute products from the competitor. It can be possible that the return from Imperial General
Insurance can be less and the competitor are providing less amount with high return to the
customer. The threat of the substitute products is high in the industry which can cause to
decrease the firm performance. It is important for the organisation to produce various products to
the customer according to the income and their requirement. Therefore, Imperial General
Insurance should focus on better strategies to target the customer and try to reduce the threat
from the substitute products which can be obstacles in firm’s sales. Protection gives money
related security to be fallen on in the midst of need. Items which may fill as substitutes for
protection are speculation and reserve funds bundles offered by banks; in any case, they are not
immediate substitutes. To maintain a strategic distance from rivalry, insurance agencies can
work together with the banks. The Bancassurance joint effort is an immaculate illustration of the
same.
Rivalry among existing competitors: This force will help to determine the competition and
profit in the industry. The external condition has both negative and positive conditions which
impact the protection business (Castro, Armario, and Ruiz, 2014.). Positive variables incorporate
the National Insurance Commission as a restrained administrative body observing the business
and presentation of new arrangements, the aims of the Government to support the private
division and the remarkable event of catastrophic events in the nation. Poor financial conditions
appear to be the most predominant negative elements. Contention is extreme with the 25 and
tallying non-extra security organizations battling for piece of the pie in a nation with a populace
under 28 million individuals. Similitude which cut crosswise over items in every one of the
organizations likewise make it troublesome for the market to recognize them. Undermining,
speed of conveyance, provoke assert instalments are what organizations may fall back on
increment their piece of the overall industry. Due to high competitions in the market, extra
4

efforts have to put on the firm’s marketing and aggressive selling have to meet the target of the
organisations. The outcome of such position will be low profits in the business. Rivalry among
the competitor is consuming when there are more competitions in the market will be give high
competitions to the Imperial General Insurance the performance will be low with increasing in
the market share can cause the organisations revenue. Exit barrier are also high in the market in
which the industry will be performing very low or negatively which can be hindrance to the
organizational performance. The products are not differentiated and can be easily substituted and
the high return and safety of the money more depends on the organisation values. But due to
rivalry among existing competitor, the customer loyalty will be decreased(Susaeta, L. and et. al.,
2013).
From the Porter’s five force model analysis of Imperial General Insurance, it can be easily stated
that the elements are based on the customer and supplier of the industry while the trend in the
industry is to get the best possible return policy which can be help to generate more revenue in
the organisation.
3. Analysis of the competitive environment in which Imperial General Insurance operates.
The successful business will be based on the better relation with the customer and which
can be helpful in the growth of sales and market. Various competitive environment in which the
firm operates business have huge market share for Imperial General Insurance which may
increase or decrease. The competitor environment can be also known as the market structure in
which various factors can be hindrances to the organisation’s performance. The top six
underwriters of the firm are state insurance, star insurance, hollard insurance, enterprises
insurances, vanguard and glico: all these organisations cover 44% in market shares. The various
strength and weakness of the organisation depends on the competitor and the opportunity should
be used for enhancing the performance of the organisation with better analysis of the competitor
environment. The most common challenges faced by the insurance industry nowadays is the
undercutting practice among different organisations which affects the business of the strong
ethics and values’ oriented firms. From the competitor analysis of the organisation, their position
in the market can be easily understood (Cole, 2010.). Operation activities of the organisation are
smooth and easy. All the divisions have easily access the need of the resource to bring the
effective working activities. The state insurance organisation is the key players in the non life
market, past results of the market result can be not in the hand of state insurance is about the
5

35% share and reduce from the 24% in the next four years. The regulator frame work is also not
able to control the competitor which can be the major hindrances for the Imperial General
Insurance. From the SWOT analysis of the organisation, it can be easily help to get the
competitor environment.
Strength:
 No immediate substitute items: These the can be the strength of the organisation that no
immediate substitute policy is available. The competitive can not take the advantages of
the organisation in terms of cover the profits
 Experienced, qualified and uncovered administration group: The human resource
and the sales division members are capable enough to meet the organisation objectives.
Employees are hired on the basis of ethics and values of the organisations. The more they
are focusing on the organisation products the efficient and talent employee can be the
major strength. The marketing teams have done various campaigns to attract customers
and made them aware about some of the products which are important to sell in the
market (Susaeta, 2013).
 Organized promoting group: Imperial General insurance: it can be the most effective
strength of the organisation in which they promote the various group or the suppliers to
build the relationship with customer. It will help to retain more customers for the
organisation which can help to increase the profits. The high performance can be
maximised with more interaction with customers through various marketing campaigns.
 Very much marked vehicles and workplaces: Imperial General Insurance have the
basic products but according to the customer demand of the high market vehicle and
better working environment of the organisation with achieving firm goals.
Weakness:
 Customers bargaining power: This can be the major weakness of the organisation that
the customers have the bargaining power with organisation due to the high competitive
environment (Hassell, Zhao and Maguire, 2013).
 No agency structure: The unstructured organisation in terms of agency a serious
problem for the firms. They are the people who helps the firm for increasing sales and
maximising the profits of the organisations.
6

 New company: Due to the new entry in the market, the organisation is not able to cover
the market share and already have high competition. These can be the major weaknesses
for the organisation but can be removed with excessive planning in terms of innovative
marketing (Baligh, 2016).
 Small cognizance: It can be a weakness for firm if it is not able to make people aware
about the products and their brand recognition.
 Processes could be shortened and use more technology: This can be another weak
point for the organisations in which they are not able to use the short process and if there
exists poor technology in their operations then it hampers in boosting the service and
getting the trust.
 Affiliation with Royal Bank deters other financial institutions: It is a drawback for
the organisations. That affiliation with the Royal Bank discourage other financial
institutions will affect to the organisation performances.

Opportunities:
 No premium no cover directive by NIC: It is an opportunity for the
organisations to bring the strategies such as no premium no cover directive by
nation insurance corporations.
 Increase in third party tariffs: If the organisation can increase the third-party
tariff to increase the sales of the organisation then also, it will enhance the profits
of the business (Tohidinia and Mosakhani, 2010).
 Youth empowerment in the private sector: The empowerment of young people
in the private sectors is another opportunity for Imperial General Insurance.
 Insurable opportunities in unexplored areas through job creation: If the
organisation will focus on various areas where they can enhance the performance
of the firm by expanding and giving employment to the society, prospect to
growth exists.
Threat:
7

 Threat of new entrants: From the new entrant threat can hindrance for the organisation
performance.
 Rivalry in the insurance industry: This can be another major threat for Imperial
General Insurance because the rivalry in the industry is high which can be an obstacle in
the aggressive marketing strategies of the organisation.
4. Critical perspective on the corporate strategy currently being pursued by Imperial General
Insurance
For every organisation, the most important aspect is their corporate strategies which can
bring the difference among the competitive market in the insurance industry. The organisation is
focusing on the technological aspect which can bring their better operations. They had updated
their websites and given auto feature as well (Lussier and Achua, 2009). As far as technology is
concerned, the organization may need to sit up considering the way that the world is moving into
an Era of Digitization. Client needs are changing and Royal should put resources into innovation
to meet these evolving needs. At present, Imperial General Insurance has a refreshed site and a
computerized SMS highlight which imparts premiums and season's welcome to customers when
required. Systems should be set up to enhance this. From then various environmental factor such
as the implication due to the political factors of on the organisation they had decided full
premium income and also the various factors will be help, to the implicated on the due to the
corporate strategy will help to bring the performance of the organisations. If the environment
factors are not able to considered the various economic and legal factors are more hindrances for
the organisations. The better various implication Insurance agencies appreciated a 300%
expansion in premium gathered from engine outsider approaches.
Insurance purchasing influence of the general population will increment as swelling
diminishes, henceforth, more cash to purchase protection (Sheard and Kakabadse, 2014).
Higher cost of bringing in crude materials for generation. Henceforth less benefit. The more
costly it is to obtain the less individuals would have the capacity to acquire and complete
organizations. With the implication of these strategies, it will help the organisation to increase
the revenue. It is important to change the increase payment and other mode to attract the
customer. If the customer is not able to get the better return from organisation, then changes in
various policies can benefit. More business exercises and along these lines more protection
8

open doors (Daft, 2010). Development of protection to new regions which are undiscovered.
Due to the implication of these social factors the organisation is focusing on the aggressive
selling to cove the market.
Legal factors of the organisation have implication on consideration of rules and
regulations have been followed to prevent customer and also to create open doors for
obligatory protection if very much upheld. These types of the corporate strategy will help to
bring the upliftment of Imperial General Insurance organisation. It is important for them to
practice various laws in firm for better outcomes. With help of technologies, various
innovation will open doors for digitization of protection in the nation. It will help the
organisation to create impact on the competitor (Griffin and Moorhead, 2010). Therefore, the
natural environment in terms of technical group ought to have the capacity to recognize the
high hazard zones and either stop from endorsing strategies there or rate as needs be. The more
the organisation will focus on the environmental factors in their corporate strategy, that can
help to make the goodwill in the market.
It is important for them to bring all the factors that will influence the organisation
performance he implication should be based on the various factors and the current corporate
strategy have aim to gain the competitor advantage with proper utilisation of the technologies.
5.Discuss your recommendations for the future strategic direction of the company.
From the analysis of the all organisation performance and they need the various changes
in the firm on the basis of certain recommendation are comment on the following key points
such as:
 Profitability of the firm: These can be based on the organisation performance if financial
mode have to plan with all the sales can be made in the firm. The profit of the firm
depend on various situations which are important to analyse the organisation
performance (Cole, 2010). The financial planning of the organisation has been based on
improving the asset and liabilities performance. If the firm have to earn more revenue on
the short term and long-term basis proper strategic management and model of revenue
should be more appropriate. Due to high competition in the market, firm has to use
various marketing strategies for effective growth of the organisation. If the firm will
9