Chalter 10: Insurer Strategic Management Flashcards

1
Q

Strategic Management Process

A
  1. ) Strategy formulation
  2. ) Strategy implementation
  3. ) Strategy evaluation
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2
Q

Strategy Formulation

A

Steps:

  1. ) Analysis of external and internal environments
  2. ) Development of long-term strategies and organizational goals
  3. ) Determination of strategy at different organizational levels
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3
Q

Strategy Evaluation

A

Four steps in the control process:

  1. ) Establish standards
  2. ) Create and apply measurements
  3. ) Compare actual results to standards
  4. ) Evaluate and implement corrective actions if goals are not met
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4
Q

The Five Forces Model

A
  • Threat of new entrants
  • Threat of substitute products or services
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Rivalry among existing firms
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5
Q

SWOT Analysis

A
  • Strengths
  • Weaknesses
  • Opportunities
  • Threats
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6
Q

Strengths and Weaknesses

A
  • Managerial expertise
  • Available product lines
  • Skill levels and competencies of staff
  • Current strategies
  • Customer loyalty
  • Growth levels
  • Organizational structure
  • Distribution channels
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7
Q

Determining Strategy at Different Organizational Levels

A

The most prevalent types of organizational strategies:

  • Corporate-level strategy (5+ years)
  • Business-level strategy (3-5 years)
  • Functional-level strategy (1 year)
  • Operational-level strategy (daily)
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8
Q

Corporate-Level Strategy

A

Three generic corporate-level strategies for companies in a growth mode:

  • Single business
  • Vertical integration
  • Diversification
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9
Q

Business-Level Strategy

A

Three business-level strategies:

  • Cost leadership
  • Differentiation
  • Foces
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10
Q

Insurers’ Global Expansion

A
  • Trends in global expansion
  • Strategic reasons for global expansion
  • Global market considerations
  • Approaches to global expansion
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11
Q

Strategic Reasons for Global Expansion

A
  • Revenue growth
  • Financial stability
  • Building global competitiveness
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12
Q

Global Market Considerationd

A
  • Market analysis
  • Economic considerations
  • Political risks
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13
Q

Approaches to Global Expansion

A
  • Strategic alliance
  • Joint venture
  • Merger
  • Wholly owned subsidiary
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