The State Farm Insurance Company Strategic Plan

The purpose of writing this paper is to highlight the findings from conduction an internal and external environmental analysis for their proposed new divisions that will ensure the companies stay on the right track. In the event of highlighting the issues, the paper will also focus on how the divisions will adapt to change within the company by identifying the strengths and weaknesses together with identifying factors that are opportunities or threats to the company. Therefore, everything that is brought on board will be looked upon and a SWOT analysis developed from the discussion. In addition to that, some ideas that come with the introduction of new divisions will be discussed in this paper because they will either have a positive or negative impact on the business model and the various stakeholders.

The conclusion comes later and will summarize the analysis and findings of the paper that includes the SWOT analysis, strategies among other important findings. In this case, the internal environmental factors are the activities that happen with a firm. On the other hand, external environmental factors are those that may contribute to an organization attaining its goals. With the company intending to come up with new divisions, it is necessary to identify that strengths and the weaknesses while also looking at the opportunities and threats to the company’s efforts towards success (Bowne et al. The analysis is used to determine the factors that have been mentioned above. However, before the SWOT analysis, we will analyze the supply chain of the new divisions of the existing business.

Improvement of activities of the supply chain of new divisions will give the company an advantage over others providing the same services; this process will make it different which is a strategy in a competitive market. The purpose of the new divisions in the company gives customers better services (Freeck et al. An example is customers are offered a new rate of the insurance cover. The rates will always favor customers and in turn, make existing companies be pushed into adjusting their rates. Having the new divisions in place and providing better strategies to govern them will provide many aspects that will boost the company's activities. They need to be addressed first before new divisions are made within a company to avoid inconveniences.

Strategic Plan Part 2: SWOT Analysis – Internal and External Environmental Analysis SWOT analysis In any analysis conducted, the SWOT analysis is usually used as an assessment tool to perform a viability test for new businesses. This tool will always highlight four important factors (strengths, weaknesses, opportunities, and threats) that are always a part of a new company. The analysis paper is going to highlight the finding of the analysis for their proposed new division and its business model the SWOT analysis will be divided into two environmental factors; internal and external forces and trends (Bull et al. Internal forces Internal environment forces and trends are the activities that happen within a firm. This is the main strength within a company as proper execution of the plans will ensure the divisions succeed Leadership Another strength that is associated with success in the new division is leadership.

Leadership can be advantageous in very many ways when used appropriately. When State Farm Insurance Company comes up with the new division and business models, they also to put a leadership structure that will foresee that work is done effectively. Also, leaders have a big influence on the employees and the way they handle situations determines how they impact on the provision of services to customers. Weaknesses These are events within a company that tends to limit the activities they often lead to success. They present themselves as either opportunities or threats. Opportunities These are factors that will provide a company with means that will help in achieving set goals. They include innovations, legal and regulatory. Innovations This is the action of coming up with new methods or ideas.

They provide a company with new ideas that will help in dealing with their customers. The stakeholders seek to have more items included in the cover thus making it possible for the clients to be in a position to insure more of their items. The management is also looking forward to developing a committee that will see the main company’s objectives and mission are in line with the operations of the new company. This will be done through proper communication being facilitated between the two parties. Ideally, the company is bound to come out as to be different from what the other have. The state farm insurance seeks to have a diversification of the services it offers to its customers through the opening of the company.

(Binder, 2016). The communication plan further provides for the means to be utilized in order for channeling of feedback as well as guidelines for documentation and archiving of communication. An effective communication plan is instrumental in breaking down resistance to changes observed when an organization is in the process of implementing new changes. It accomplishes this by engaging the stakeholders in the process. In the formulation of a communication plan, a communication plan to be used during emergencies should also be set up. Communication Method • Email • Memo • Company website • Weekly meeting Disseminator of Information • Administrative Assistant • Line managers • Company lawyer • Union Chairman Frequency of Information Delivery • Weekly Documentation and Archiving • Records department Strategies and Tactics Section The strategies and tactics section refer to the plans that the new company has in place to ensure that it is thriving in the competitive market.

One strategy that the company has been seen to apply in its service delivery is the use of a customer-attractive way with which to bring in more people going for its services. This it aims at doing by giving or rather offering the same services at lower rtes. In addition to that, the company will have its services advertised all over and this will be in a bid to increase the awareness of the consumers of its products and therefore making them curious about getting to be part of the new company. The fact that the company already bears the name of an established company is enough for it to get competing other companies in the market. Furthermore, the human resources department shall recruit more sales persons during the next two financial years towards the attainment of this objective.

The metric indicators shall be 8% increase in profits in the next three years. • Increase revenues – To achieve this, the State Farm insurance shall expand its business by expanding its business into previously untapped sectors. Management shall task the sales and marketing department in conjunction with the Customer Care department to develop a new product or a combination of products. The management seeks to raise its number of clients by 30%. Staff shall constantly be required to brainstorm for ideas to be submitted weekly in meetings held by each department. The indicators shall be customer feedback and a 20% increase in new customers in 2 years. • Improve customer satisfaction – Client satiation with the products and service offered is crucial in gaining and maintaining the loyalty of customers.

This shall be achieved by carrying out customer surveys and analyzing the feedback received. The management shall set a five-minute maximum time in which to serve a client. • Improved technological innovations – The firm shall attract and retain the best people in the job seekers market. The human resources shall actualize this by shortlisting employees with the best academic qualifications as well as experience tailored to meet the insurance industry requirements. The human resources shall further ensure that employees are recruited from diverse backgrounds and age groups in order to ensure a variety of ideas. The indicators shall be levels of employee enablement. The number of new products in the company shall be an indicator of innovativeness. This also involves analysis both sides of the idea including the benefits and the disadvantages.

All that needs to be done is to determine the factors, both internal and external factors, that will either promote or limit the activities of the company. Generally, the analysis has showed that the company can succeed in its operations. Tables Table 1; Balanced Scorecard for State Farm Insurance Quadrant Strategic objectives Metric Target Initiatives Financial perspective Increase market share Increase revenue Decrease costs and expenses Percentage increase in market share Financial Statements Percentage of revenue increase Percentage decrease in expenses 8% increase in profits in the next 3 years 30% increase in revenue in 3 years 10% decrease in expenses in 2 years >Aggressive advertising schemes >Increase number of sales team >Expand into new sectors >Pay employees on commission basis Customer value perspective Increase and retention customers Improve Customer satisfaction Number of new customers Feedback from customer satisfaction survey 20% increase in new customers in 2 years 25% increase in positive feedback in 1 year >Improve the products mix and add combination deals Take customer satisfaction survey Internal operations Improve process performance Customer feedback on service delivery 25% increase in positive feedback in 1 year Customer survey Learning and growth Improve Employee satisfaction Increase Employee skills Improve Technological innovation Improved performances Number of employees trained Number of customers using technology to access our services 30% 50% Implement reward and bonuses program >Train employees >Come up with an app where customers can access services References Bowne, B.