Introduction
In the modern world, most companies are expanding their operations into other environment globally. This expansion has been highly successful due to the developments in technology. Technology has enabled investors to fully exploit the resources available globally. Due to need to maximize profits, businesses have excessively exploited the resources without minding the future generation. The resources therefore, are bound to be extinct in the future. Overexploitation of resources has been compelled by the rising demand of goods and services due to population increase globally.
Expansion of businesses has not only brought concern on the natural resources, but the environment degradations which might threaten the well-being of man. Investors have different business ideas, and hence set up different business entities. An investor may set up a production or service delivery business. The activities of the investors have greatly affected the environment in different ways depending on the nature and the practices of the business organization. For instance, production companies may overexploit the resources, lead to environmental pollution of water, air or noise (Wills Business Improvement, 2010).
The environmental status raises the concern over the well-being of mankind on the environment. Due to the rising concern, businesses have to practice environmentally friendly activities so as to protect it and ensure the safety of the people and occupants. Some of the effects the companies have caused the environment are global warming, water body pollution, extinction of non-renewable resources among others. These issues have led to the question of the fitness of a business organization globally. This concept is basically concerned with international companies with regards to their practices and the effects on the global environment. These can be effectively regulated by the business ethics both fostered by the law and the relevant company and its industry (QuickMBA 2010).
Company overview
Alianz Saudi Cooperative Insurance Company is considered to be the leading multinational company in the globe. It is concerned with insurance and reinsurance services. It is basically based in Saudi Arabia. The company is one of the highest income generating companies in the Asia. The company records an annual income of $ 18.4 billion, comprises of more than 70,000 workers, and controls over 70 technological and research centers globally. The company markets several insurance brands globally. For instance, motor vehicle, health and safety, life and non-life insurance policies among other global insurance brands in almost all countries internationally (NYjob source, 2009).
In 2007, the company emerged the largest insurance corporation in Asia. This was after the merger of several investors to form the company through contributions of their shares. The company was founded in 2007 and is celebrating its seventh anniversary this year, 2012. Despite global operation, the company is celebrating success in Asia too where it has set up several facilities (Tutor2u, 2010).
The Alliance SF Company is an insurance company. Furthermore, the company is engaged in agency representation, brokerage and correspondence. The Alliance SF Insurance Company was established in 2007. The company is not a sole company but is comprised of several insurance companies and other investments. This company was established by a group of investors. The company comprises of several international companies with limited shares, and reputable Saudi investors. The company operated for several years and later its name was changed to Alianz Saudi Cooperative Insurance Company (NYjob source, 2009).
Alianz Saudi Cooperative Insurance Company offers insurance and reinsurance services in the industry. There are several factors that the company insures, for instance, life insurance. Furthermore, the company also offers non-life insurance services. It also offers motor insurance services. The company also offers health and accident insurance services and fire and other property damage (NYjob source, 2009).
Global business fitness
The global fitness of a business entity constitutes the important components of international organizations. There are standards of measure developed by Rayment and Smith to ascertain the global fitness of an organization. This frame works generally show the interrelation between issues within an organization. It focuses on holistic depth, fitness plane, and organic level. For the survival of any international business it has to be well versed with both the strategic and tactical operation of the entity. Therefore, global business fitness can be viewed as the skills which an organization applies in operation so as to gain competitive advantage and strong operation base so as to adapt to the ever increasing level of competition in the market (Wills Business Improvement, 2010).
Mental and physical fitness are important to an organization as it prepares and empowers an entity to develop and positively respond to the changing business environment adequately and effectively. These factors are also important in ensuring that an organization respond to the business changes, contain the level of competition and consistently operate in the environment without fear of incurring heavy losses. A physically and mentally prepared organization has the stamina to adjust with any changes in the environment including loss instances and increased levels of competition. For a business to be globally fit, it has to develop and enhance spiritual, physical, and mental strength. This enables an organization to decisively contest apart from strength derivative foundation provision (Wills Business Improvement, 2010).
Though fit businesses have the advantage of dealing with any change in the business environment, they might not effortlessly and effectively deal with the business changes. However, it positions the organization at an informed level hence adequately understands the changes in the environment hence have alternatives to curb or contain the changes. Globally fit businesses therefore, have opportunities to effectively and adequately asses their decisions and further their returns and market share (Wills Business Improvement, 2010).
Furthermore, a global fit business may clearly understand the expected changes and their implications for their operation. According to Rayment and Smith, for the achievement of the long-term goals of an organization, it has to posses an effective leadership team. Success oriented organizations also have to apply the globally accepted strategies so as to achieve their goals. In addition, organizations that are business fit easily appreciate trade-offs and the likely risks to be encountered in the business environment. Business fit organizations also easily identify sources of the resources they need, necessary support and information for goal attainment. Fit business organization is therefore, bound to make the right choices of decisions leading to the success of the organization (Wills Business Improvement, 2010).
Alianz Saudi Cooperative Insurance Company and business fitness
As the leading insurer in Asia, Alianz Saudi Cooperative Insurance Company has really benefited from the holistic approach in business. The company has a culture of ethical fostering hence engage in practices that does not violate the well-being of mankind. This is evident from the incentive by the company to initiate social projects hence ensuring a safe environment by protecting it. Though the company is based in Saudi Arabia, it operates in almost all the countries globally. The top management delegates authority to the individual regional managers hence complying with the requirements of each member state. This has to the company protecting the environment by operating according to the guidelines laid down by each member state concerning environmental safety (Wills Business Improvement, 2010).
Alianz Saudi Cooperative Insurance Company is also an equal employer. This is evident from the number of employees that the company has. The employees are not of Arabic origin, but from all the member states that they operate. Alianz Saudi Cooperative Insurance Company offers employment opportunities to all regardless of race, sex, and or religion. The company is global in nature hence this makes them acquire the best staff available in the respective states where they operate. This is evident from the fact that the company does not outsource its employees from Saudi Arabia but employees from within the country of operation. Considering the management structure of the company, it has regional managers from the regions where they lead because the company believes they are well informed of the business situation prevailing in the regions (NYjob source, 2009).
Due to the financial strength of the company, it has established stores in almost all the states in Asia, countries across Europe and other regions globally. Therefore, the company easily impact the global society with its initiative to protect the environment as the company operates globally hence the global community is well conversant with the company and its culture. Through these programs, the company can also easily educate the society on the appropriate way of ensuring safety of properties through insurance subscription. The company has a direct contact with the society globally because the entire globe is needed for insurance services. This will in return enhance the sustainability of the environment. The company not only works on protecting the environment, but its employees too. It has established a pension program for its employees hence ensuring financial security for its employees after retirement or quitting employment (QuickMBA, 2010).
Company strategies suppleness
Alianz Saudi Cooperative Insurance Company can be said to be a global fit business because it easily and effectively aligns its strategies and the environmental changes. The responsive nature of the company to the environmental changes has emerged as its competitive advantage over other firms in the insurance industry. The company extensively carries out extensive research and develops them hence adequately addresses the demands and needs of the market (PIM, 2010).
The company adequately handles and endures challenges and pressures in the industry due to effective response to the changes in the environment. The company has emerged among the best and the largest insurer not only in Asia but globally despite the stiff competition from the industry mainly the emerging firms in the Asian region and the United Kingdom. Though these firms offer low price policies, Alianz Saudi Cooperative Insurance Company has continually produced high quality insurance products with relatively high prices but still realize enormous profits (QuickMBA, 2010).
Alianz Saudi Cooperative Insurance Company has emerged as a global fitness business by developing and enforcing its spiritual, physical and mental strengths. This has enabled the firm to effectively operate, gain and sustain competitive advantage in the insurance industry. In addition, the company has also been able to forecast on the expected outcomes in the business world. Consumers, shareholders, and suppliers’ expectations are vivid to the management of the company. For instance the suppliers’ expectations, the company has an outlined code of conduct on the suppliers of both products and services (NYjob source, 2009).
Strategic situation analysis
Careful analysis of the situation gives a company a chance to work out a new strategic plan or alter already existing strategies that have not been recently efficient. The company also needs to define its market so as to enable for competition and consumer analysis. The company should focus and effectively analyze future product-market changes. Analysis of strategies aims at identifying and describing potential buyers, estimating the market size and its expected growth rate, understanding customers’ expectations and identifying close competitors in the insurance industry (Tutor2u, 2010).
Market segmentation: market segmentation addresses consumers’ needs and diversity and nature extent. This enables a company to focus on its capabilities on buyers requirements. The division of the market into sections may clearly define and show product-market segments after investigating the aspects of what the clients are in need of and what they want. However, industrial segments are greatly influenced by the industry, products use and other factors. For the achievement of success, the company has to frequently review the market. This will enable the company to understand the prevailing competition in the market and its target market demands and requirements. Consistent review of the market also enables a company to forecast the expected changes in the market (Tutor2u, 2010).
Designing of the market driven strategy
Designing of the market driven strategies involves several activities that aim at improving operation in the organization, for instance, defining market segments, assessment of strengths and weaknesses, identification of available opportunities in the market and evaluation of the prevailing level of competition in the industry. This research is important for the development of an organization as it enables introduction and development of new products by firms, determining the target market among others (Tutor2u, 2010).
Strategic positioning and market targeting, there are several situational factors that influence gaining of marketing advantage by a firm. Markets are targeted with an aim of identifying potential customers that have interest on the products of the company. It aims at matching the company’s capabilities and segments requirements in the respective product markets. On the other hand, positioning strategy incorporates or takes into consideration value chain strategies, price, promotion and products of the respective company, which they use in the respective target market to effectively compete against other related firms in the market and meet requirements and expectations of the market (Tutor2u, 2010).
Marketing relationship, there are several partners of marketing relationship. They may contain the following: “internal teams, suppliers, members of the marketing channel, competitor alliances, and the end user consumers” (Tutor2u, 2010). The company should be very careful and value the customers that contribute to the successful productions of the company day after day. This will enhance provision of superior value to the customers in the long run. The strategic partnering may lead to a firm gaining a competitive advantage over other firms in the industry. Therefore, Alianz Saudi Cooperative Insurance Company should consider partnering strategically to gain competitive advantage (Tutor2u, 2010).
Planning of a new product: the company may decide to introduce new products in the market due to inferiority of its existing products in the market leading to decreased sales. Alianz Saudi Cooperative Insurance Company may produce a high-quality product at a competitive price if it closely monitors and coordinates the planning of new products. Before introducing a new product in the market, Alianz Saudi Cooperative Insurance Company has to identify gaps in customer satisfaction hence introduce an improved product (QuickMBA, 2010).
Developing of market-driven program
The location of the market and its targeting strategies for the already existing products and the ones that are yet to be produced play a very important role when it is necessary to choose and to work out the vital components of the strategic program. Positioning strategy is a combination of promotion, product, price and distribution strategies (QuickMBA, 2010).
The positioning strategy is carried into effect by the marketing mix. Its objective is to gain favorable positioning efficiently and effectively as possible. Strategic management of brands, the turning point of positioning strategy is the product. It is worth noting that the strategic plan of the market consists of “decision on problem products, development of new products plans, and managing successful products” (QuickMBA, 2010). Strategic management of brands consists of company’s portfolio management and brand value building for the purpose of the overall company performance (QuickMBA, 2010).
Promotion, value-chain and price strategies, “decision on the integration of components mix” is among the major issues in program management (QuickMBA, 2010). “Distribution, price, product, promotion and product strategies” should be designed and coordinated into an effective strategic plan of the future steps to follow (QuickMBA, 2010). Lack of coordination among the components may leads to a conflict hence resource wastage. Basically, the company closely relate with target group, public, customers and value-chain partners through advertising, direct marketing, sales force, public relations and promotion (QuickMBA, 2010).
Management and implementation of the market-driven strategy
This is the action stage of the marketing strategy planning process. It entails organizational design, strategy management and implementation of the respective strategies. Designing of an effective market-driven organization, effective design matches work responsibilities and people towards the achievement of the strategies. It involves forming of the various units of the organization and assigning duties and responsibilities to each person. Effective designing gives the organization its structure and matches it with the marketing strategy developed and implemented. Alianz Saudi Cooperative Insurance Company should frequently evaluate the design of the organization to ascertain expected changes and enhance efficiency (Tutor2u, 2010).
Control and implementation strategy: This process involves preparation of plans and budgets of the marketing process, implementing the respective plan and constantly reviewing and applying it in control and management of the organizational strategies. The marketing strategic plan clearly spells out: expectations during the planning period, those responsible, cost, and results expected. Implementation may be effective, however, it is influenced by skills and commitments of the implementers, organizational design, internal and external communication effectiveness and organizational incentives (PIM, 2010).
The marketing strategy is a continuous process because it involves implementation of strategies, tracking effectiveness of the designed strategies and decision making among others. This process is therefore, more demanding compared to the planning function of management. Basically, evaluation and control involves performance tracking and, if the need arises plans alteration to maintain profits or avoid losses. The company may effectively forecast on potential opportunities and threats through effective evaluation of the enterprise. This process has to be continuous to ensure its effectiveness (PIM, 2010).
Financial analysis
It is evident that the income of the company has been increasing over the past five years. Furthermore, increase in income for the company is expected in the successive quarters and year due to increased efficiency and service delivery considering the strategies developed by the company.
Conclusion
Alianz Saudi Cooperative Insurance Company is composed of different investors with common interest of enhancing insurance service provision in the industry. The company has a strong economic base, and continually struggles to maintain it. Its management favors the process not forgetting its strategies. Therefore, considering strategies of the company, it is globally fit and can maintain its competitive advantage in the market.
References
NYjob Source, (2009). Alianz Saudi Cooperative Insurance Company. Web.
PIM. (2010). Strategic management FAQs. Web.
QuickMBA. (2010). Strategic management. Web.
Tutor2u. (2010). Competitive advantage. Web.
Wills Business Improvement. (2010). Business fitness. Web.