Time setting plan or action plan will assist the organization in focusing the ideas and determine what steps and activities need to make to attain organizational objectives. It is a statement that shows the time frame, in which organization wants to achieve its objectives by implementing strategic methods. The time setting for Tower Insurance’s strategic plan is done in a table that includes objectives, activities and time duration for achieving them. The activities include evaluation of need for improvement, strategic planning, setting the strategies, execution of strategies and evaluation and monitoring. The table shows the overall action plan with time frame and strategic methods (Ahsan, Qazi & Syed, 2014).
Tower Insurance is an insurance company in New Zealand that is founded in the year 1869. The Headquarter of the company is situated in Auckland, New Zealand. It is well-established fire and general insurance company that offers different types of insurance (Tower Insurance, 2017). In 1869, the company was established as New Zealand Government Life Insurance Department. At that time, it was named as Tower Insurance in the year 1987. Company is publicly listed in New Zealand. Earlier, it also offered medical insurance, but now it has sold its two divisions, i.e. medical insurance and investment division (Baker & Logue, 2017). Tower has so many competitors, like; Vero Insurance, AA Insurance, IAG, New Zealand Insurance etc.
An insurance agency offers insurance services to different objects of human life. By offering these services, an organization makes people’s lives more safe and secure. Tower Insurance is offering products and services to make the life more safe and secure. The company is providing various services, like; car insurance, house insurance, travel insurance, rural insurance, boat insurance etc. The organization is still trading, with the profit of 44.2$ million. Now, there are so many New Zealand insurance companies in line (Beverland & Bretherton, 2015). The given diagram indicates all the insurance services of Tower. Further, some of the Tower’s services will be discussed.
First service of Tower Organization that is taken into consideration is car insurance. As a leading insurance agency in New Zealand, Tower offers car insurance policy and protects the cars from accidental damage. In this context, the company is offering 4 types of cover, i.e. Comprehensive, Third-party, Third-party Fire and theft and Commercial Vehicle (Cantamessa & Montagna, 2016).
Comprehensive cover: In this company covers the damage to one’s car from theft and fire. This is most popular car product of company.
Third Party theft and fire: it covers the car for theft and fire and damage, which you cause to other’s cars.
Third Party: It covers the damage, which one causes to else’s car. It is most basic product of firm.
Commercial vehicle: It offers vehicle insurance for Kiwi businesses.
Next service of Tower Insurance is House insurance that protects the house of people. The organization provides best and quality house insurance schemes to protect the house and other property of potential clients. It offers four types of cover in this context, standard, premium, landlord plus and plu. The policies offered by Tower protect the house of clients from theft, fire, terrorism, earthquake and other natural disasters (Cummins & Weiss, 2013). From all types of cover, premium is the highest level of cover that is great for those, who possess high value homes.
Furthermore, the company also offers travel insurance to its clients. It is very new and unique product, which an insurance organization may offer. There are few companies, which provide travel insurance to their potential clients. Tower Insurance provides travel insurance to the population of New Zealand and Pacific. They can select the travel insurance package, which they feel right for them. Under this policy, there are different covers, like; Travel Insurance, Travel Insurance 101, Tower Cover4 Travel etc. Tower Cover4 Travel covers the individuals and families under the age of 65 (Coh, Qian & Wang, 2014). Under this service, the company targets the people, who love to travel in the world.
Tower organization is offering general and fire insurance to the people in New Zealand and Pacific region. The organization is working with an effective mission statement. The existing mission statement of the company is “to offer the best quality insurance services to its clients in both personal and professional manner.” In addition, its mission statement focuses on keeping the higher level of technical expertise and knowledge (Cross, Belich & Rudelius, 2015). In this process, the major focus of the organization to make the customer financially stronger and to become quality insurer.
Vision statement of the company is road map of an organization that indicates the intention of company that what it want to become in the future. The vision statement of the Tower Insurance is “to become a focused and empathetic insurer for the people of New Zealand”. Under this vision statement, the company wants to offer attractive return by developing a general insurance business that is leading the organization in the country (Eckles, Hoyt & Miller, 2014). For reaching to this vision, the organization will focus on assisting the people more secure and safe life. For achieving this mission and vision statement, the organization will set some long term objectives.
Long term objectives are the precise targets, which are essential for achieving the overall goals of the organization. The objectives of an organization will consistent with its mission and vision. The long term objectives of Tower Organization show qualitative and quantitative measurable outcomes, which it hopes to achieve (Eden & Ackermann, 2013). The long term objectives of Tower Organization are; “to provide the quality and profitable services to make the long-term clients and to gain the profitability in next three years, i.e. 2015-2017. As qualitative objective, the organization wants to strengthen its brand reputation as the premium insurance service provider in the New Zealand insurance sector and wants to increase its market share every quarter (Gaganis, Hasan & Pasiouras, 2015).
Tower Insurance Organization is one of the most leading players in insurance industry in New Zealand. Although, the existing mission of company is effective, but still there is a scope of improvement in it. The improved mission of the company should be “to be a most relied and admired insurer over its competitors in the country, by committing all the promises, which it has made with the clients and customers”. The organization can do it by creating viable values and empower the human resources at organization (Gamble & Thompson, 2014). It should be improved because existing mission statement of the company does not focus on the employees and customers.
The company needs to improve its existing vision to create a brand image in the New Zealand industry and all over the world. The improved vision of Tower Insurance should be “to offer the unique services, which other insurers may not offer”. Moreover, the vision of this company is “to become more profitable for insurance agents, suppliers, associates and society”. By focusing on this vision, the company will be able to become a high standard and excellent insurer in the country and all over the world (Grmanová, 2016).
The existing long term objectives of Tower are connected with its long term objectives. With the improvement in the mission and vision, the organization needs to improve its long-term objectives also. The objective of the company is to develop long term relationships with its potential clients, to have sustainable relationships with its partners and suppliers, which may assist it growing its business and generating revenues by providing profitable policies and schemes (Hahn & Powers, 2010). These improved long term objectives will assist the organization in approaching its mission and vision statement. The company should focus on these objectives to get success in its insurance business.
There are so many reasons, why the mission, vision and long term objectives of Tower Insurance Organization need improvement. Due to these reasons, these aspects of organization are improved, like; for enhancing the efficiency of organization, focusing on suppliers and clients etc. The existing mission and vision statement of the company are not suitable to assist the people and its business processes (Hubbard, Rice & Galvin, 2014). The improved statements and objectives will lead to satisfy the customers and improve the brand awareness among population.
The company should implement some new strategies to improve its mission and vision, like; partnership business, Know your market and target small and non-franchise business. It can sell the insurance policies to these businesses.
Vero Insurance New Zealand is one of the major competitors of Tower Insurance in New Zealand insurance industry. The organization has started its business after Tower Organization, but it has achieved a significant growth in the country. This slide shows the comparison of the mission and vision statements of Tower to Vero Insurance. The mission statement of Vero is to form the insurance more important for the clients (Hunger & Wheelen, 2011). The mission of Vero is to offer the life and general insurance, whereas Tower is focused on offering fire and general insurance only.
From the above analysis, it can be stated that improved vision and mission support the improved long-term objectives of the organization (Loo, 2014). This relation can be understood by looking at seven dimensions, which are used by the organization to prepare the long-term objectives. These seven criteria are given below;
Acceptable
The long term objectives of Tower organization are definitely acceptable, as they are associated with the preferences and mission of company.
Flexible
The long-term objectives of the company can be changes or modified according to the situations. The objectives of the company are adaptable in the future (Husnjak, Perakovi?, Forenbacher, & Mumdziev, 2015).
Measurable over Time
The company should measure the objectives over the time to evaluate the performance. The objectives will indicate the mission and vision to develop the long term customer relationships in competitive business environment.
Motivating
The objectives are focused on customers, suppliers and employees, so it will motivate the people and personnel.
Suitable
Mission and objectives are developed to create values by enabling people and others.
Understandable
People and management in the organization can understand the objectives clearly.
Achievable
The organization is implementing effective strategies to achieve these objectives and vision (Fleisher & Bensoussan, 2015).
The balanced score card indicates the financial and non-financial objectives of the Tower Insurance. It shows different goals and their measures, which can be used by the organization (Kelsey, 2015). Financial goals of the company are such as; to maximize the value of company at possible least cost, increase the productivity of organization, make payment timely etc. For measuring these objectives, company can implement measures, like; ratio analysis, purchasing etc. Non-financial objectives of company are related to the customers, internal business processes, employee empowerment and training and growth of employees. It wants to increase the number of insured people under its policies. The company will make efforts to achieve these objectives by implementing these measures and other strategic methods under improved mission and vision of Tower Insurance.
The given diagram shows the existing organizational chart of Tower Insurance Organization. It includes all the levels of top management in the company. In the organization, the day-to-day management and leadership of the organization is undertaken by the top management and Chief Executive Officer. The CEO of the company is responsible for the performance of the board and other employees (Lavoie, 2017). All the decisions are made by the top management of the organization. The organizational chart indicates that the management at Tower Insurance is very effective, but still there are some aspects, which indicates its bad side.
Although, the organizational chart is very much effectively managed and it is working in the benefit of employees and organization, but there some good and bad aspects about these chart.
Good Aspects:
At the organization, all the management and leadership is done by top management only. Board interacts with management team to offer strategic guidance for Tower and effective supervision of management.
Bad Aspects:
There are some issues in the procedures and operations. The lower management needs to take the approval from CEO for any decision (Lei & Moon, 2015). The people at lower level feel too much disengaged at the organization.
After looking at the bad aspects of the organizational chart, Tower Insurance needs to improve its organizational chart. The company will revise and improve the chart after looking at its improved mission, vision, strategies and long term objectives. New chart of the organization will be better than previous chart because it will give authority to other people of top management other than CEO. Under this chart, the company will conduct the meeting before taking any decision regarding employees and changes in the insurance policies and schemes (Leischnig & Kasper-Brauer, 2015). It will include all the departments of insurance organizations.
Accounting concepts are the concepts, which are adopted by an organization for managing its records and accounts. These accounting concepts assist the organization in effectively achieve its financial objectives (Morschett, Schramm-Klein & Zentes, 2015). There are three concepts, which are used by the organization in the context of improved strategy. First, the organization will implement entity concept, under which Tower Insurance will make the accounts for each insurance service unit. It will make separate records for each department of insurance, like; fire, general, house, travel etc. It will keep each and every activity separate, like; every partnership, person and each service’s department (Moon, 2010).
Another accounting concept that will be adopted by Tower Insurance is Going Concern Concept. Tower Insurance will maintain its accounts and records by assuming that it will operate it business continuously and indefinitely (Peppard & Ward, 2016). In this process, the company will keep transparency with all the department of the organization and it will disclose all material and significant information in financial statements of the company, such as; balance sheet, Profit and loss statement etc. This concept will assist Tower insurance in maintaining the records effectively. In the competitive business environment, it will be better method for the company with the improved mission and strategy (Sadhak, 2006).
In addition, Tower Organization will adopt the responsibility accounting concept to handle the records and accounts of different department, like; fire insurance, car insurance, travel insurance, house insurance, boat insurance etc. The diagram in the slide shows the process accounting that consists of the systems and processes, which allows for investments, revenues, which are to be assigned to the workers and all the levels of company (Singh & Singh, 2014). The diagram shows the cost center, investment center and profit center of the organization. All the centers of the organization will include different activities for maintaining the records and accounts of organization.
After setting mission and vision for the organization, it is very important to develop the market segmentation. Market segmentation of the company includes choosing a specific market by considering different characteristics of the customers. Tower Insurance will consider the different market segment. It will choose the market on the basis of demographic characteristics, like; senior citizens, young people, small and family businesses and lower income families. For different types of insurance, the company targets different people. For example, it targets the people for travel insurance, who love to travel all over the world. These are the people, who prefer to take the insurance plan and policies for their car, house and other objects (Solber & Durrieu, 2008).
Positioning statement is an organization is the statement, which is placed by the organization in promoting its products to its target market. Tower Insurance organization is positioned its products as personal and professional insurance, which are catering its long term clients through its comprehensive services. This statement will help the company in gaining competitive advantage. In addition, it will gain the competitive advantage, which will consist of better client relationships and expert participants (Sweeting, 2013). This product position will definitely work with the improved mission, vision and strategy of the organization. The positioning statement will help organization in promoting its insurance services effectively.
In today’s competitive business environment, Insurance is one of the well-established and most-advancing sectors. The organizations in this industry are adopting new technologies and other initiatives to enhance the quality of business. Human resources play a vital role in this industry. The employees in the organization should be attractive, so that they can satisfy the clients to purchase their insurance policies and schemes. Tower Insurance may face various HR issues in implementing new strategies and mission in the organization, like; diversity issues, compliance issues and dealing with market conditions (Tower Insurance Agencies, 2017). The organization needs to deal with the issues by implementing effective strategies.
When Tower Insurance will implement its new strategy, then it may face the issues related to diversity. If the company chooses to make partnerships with the international players, then it may face the diversity issues. There may be some different issues related to language differences, cultural differences, belief and tradition etc. These types of issues may create conflict among employees of Tower (Zott & Amit, 2013). The organization need to deal with these issues in the future as they impact the performance of individuals and overall performance of the organization. Conducting training and development may play an important role in this aspect.
In the implementation of improved mission and strategy, there may be some issues related to the compliance of rules and regulations of insurance industry. Service provider and legal department may confront the issues related to regulatory compliances. There may be chances at Tower that people try to neglect the laws and regulations, so there may be lack of compliance in the insurance organization. It may impact the business of the company. The license of the company may be seized by concerned authority. In this context, HR division works to identify the tendency to violate the regulatory and compliance requirements (Tower Insurance, 2017).
Generally, the human resources at organization influence by the changing market conditions. Their performance is impacted by these changes. Under this improved strategy and mission, the employees need to deal with different aspects, like; laws and regulations of government, changing consumer demands and preferences and competitors’ strategies. Thus, these types of factors may create competitive pressure on the human resource at Tower and it may impact the human resource management process at Tower Insurance.
Change management is the process, which comprises how organization prepares and helps the human resources to agree the changes in for attaining the desired results and organizational success. It is very important aspect for the growth and success of organization. But, organization faces the issues related to the change resistance (Zott & Amit, 2013). People in the organization may resist the changes and do not agree with the changes in systems and business processes. There may be some types of changes that can be resisted by workers at Tower Insurance. These changes are continued in the next slide.
In an organization, there are so many factors, which cause employee resistance to change. These expected changes may be such as; digital initiatives, know your market scheme, innovation in the insurance industry and new business system and processes. At Tower, people may resist the changes as they think that it will be very tough to learn about new systems and processes. These factors cause some negative feelings in the employees, like; feeling of separation, feeling of insecurity, lower employee morale and work disengagement. The organization needs to implement some effective strategies to deal with the situation of change resistance.
For an organization, it is very important to deal with the situation of change resistance. Tower Insurance needs to adopt and implement some effective strategies and tactics to manage the resistance. In this context, training and development program plays an important role in managing the employee resistance. Generally, people deny accepting new technology innovation, so it should hire a technical expert to deal with these issues. It can conduct a motivation program for inspiring the employees to accept the required changes. The management should tell them positive outcomes of changes. They should engage the employees in the change implementation process. ngage ous. equired chan pmenttant to deal with the situation of change resistance.
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