Chapter 1 - Thesis Introduction : Management practices of American International Assurance Company (AIA)
Analysing the status, strategies and resources of businesses is very essential as it allows operators to determine how they will progress in the years to come. This also enables them to identify their strengths and how they will optimize them. On the other hand, business analysis also makes operators realize their weak points, allowing them to address them immediately with effective strategic actions. Conducting a business analysis also helps organizations to prepare for their future development and growth. Considering that competition in the business field is continuously growing, implementing efficient strategies through business analysis is indeed significant for all operators in any industry.
The main objective of this research is to assess the management practices of American International Assurance Company (AIA) which is based in Hong Kong. The study shall be divided into five chapters in order to provide clarity and coherence on the discussion of the topic. The first part of the study will be discussing the problem uncovered by the researcher and provide ample background on the topic. The chapter shall constitute an introduction to the whole study, the hypothesis, and the statement of the problem in order to present the basis of the study. Moreover, the chapter shall also have a discussion on the scope of its study as well as the significance of the study to society in general and specific effects on individuals.
The second chapter shall be discussing the relevance of the study in the existing literature. It shall provide studies on strategic management. After the presentation of the existing related literature, the researcher shall provide a synthesis of the whole chapter in relation to the study.
The third part of the study shall be discussing the methods and procedures used in the study. The chapter shall comprise of the presentation of the utilized techniques for data collection and research methodology. Similarly, it shall also contain a discussion on the used techniques in data analysis as well as the tools used to acquire the said data.
The fourth chapter shall be an analysis on the tabulated data. After the said tabulation, the data are statistically treated in order to uncover the relationship of the variable involved in the study. With the said data, the chapter seeks to address the statement of the problem noted in the first chapter.
The last chapter shall comprise of three sections, the summary of the findings, the conclusions of the study, and the recommendations. With the three portions, the chapter shall be able to address the verification of the hypothesis stated in the initial chapters of the study.
Background of the Study
Each organisation is entitled to use the most appropriate strategic management system approach. Management system is guiding an organisation relative to challenges and opportunities appearing in the contingent environment. The management system and strategy of each and every organisation is accountable for the maintenance of the organisation's strength and survival in the stiff competition in the world. The role of the management and the strategy imposed by the organisation as a whole should always be open minded for the occurrences of changes in order to adjust and cope with the tremendous development that are happening in the internal and external environment of the organisation.
This environment is composed of those internal and external elements that most directly affect organisational goal achievement and new goal development. This management system can be characterised defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enables any organisation to attain its objectives. As this definition entails, management gives emphasis on integrating management, marketing, finance, production/operations, research and development and computer information systems to achieve effective organisational performance
In Hong Kong, the existence of banking industries which offers diversified products such as insurance plans and investment plans. These new services offered by banking industries affect mostly those insurance industries. One of the insurance industries that may be affected is the American International Assurance Company (AIA) which is based in Hong Kong. AIA is an insurance industry that operates through a strong and professional agency force both in Hong Kong and Macau. The industry offers comprehensive product portfolio which includes individual life, group life and medical, credit and accident & health insurance along with a range of financial services. The company's corporate vision is to be the first choice of their target market when it comes to insurance planning and other services offered by the company.
Purpose of the Study
The competition in the banking and insurance industry is very tough. With this, those who want to outgrow their rival companies must be able to use a strategic management approach to ensure competitiveness and survival. By and large, the purpose of this research study is to identify the strategy use by American International Assurance Company (AIA). The research will specifically identify how the marketing strategy implemented by AIA enables them to attain stay in the market competition. In addition, this proposes study will also include the discussion of relevant literature. The outcome of this study will be helpful for different organisation.
Furthermore, the purpose of the research is to help management students, marketing managers, and the company to the importance of having an effective management system. The findings of the study will be able to benefit different organisations in Hong Kong and other parts of the world. This means that the results of the study will be beneficial to the business scheme since the research will be able to support previous claims that strategic management approach can help improved the performance of an organisation and achieved competitive position. This also suggests that the findings of the research will allow leaders and organization to integrate strategic management approach as part of their operations.
The main goal of this study is to assess the strategy used by the management of American International Assurance Company (AIA) Bermuda Limited to compete with banking industries which provides insurance and investment plans. Specifically, the research attempts to adhere to the following objectives:
1. To know the strategies used by American International Assurance Company (AIA) Bermuda Limited.
2. To determine the key factors that affect the performance of AIA based in Hong Kong.
3. To identify the core competencies and capabilities of AIA.
The main goal of this research is to assess the strategy used by American International Assurance Company (AIA) Bermuda Limited in order to compete in the insurance and banking industry. Specifically, the research attempts to answer the following queries:
1. What is the strategy used by American International Assurance Company (AIA) Bermuda Limited to compete in the banking and insurance industry?
2. What is the current condition of American International Assurance Company (AIA) Bermuda Limited in the business environment?
3. What are the key resources of American International Assurance Company (AIA) Bermuda Limited?
Scope and Limitation
This dissertation only covers the strategies use by AIA and the key resources of American International Assurance Company. . The outcome of this study is limited only to the data gathered from books and journals about business development and from the primary data gathered from the result of the questionnaire survey and interview that will be conducted by the researcher.
Moreover, there are inherent problems in the data due to the small time frame to conduct the study. Also, the survey process itself could have hindered the collection of results, particularly with employees that have no time for the research project.
Further, this dissertation will be quantitative and qualitative in nature. The model of this dissertation will be based on the Input-Process-Output Model; a process is viewed as a series of boxes which are known as processing elements and connected by inputs and outputs. Data or information flows through a series of tasks or activities based on a set of rules or decision points. In IPO model, flow Charts and process diagrams are often used to present such the process. Basically, what goes in is the input or those data that have an impact in the process and the output (the result). See Figure 1.1 (Basic IPO Model).
Input – Process – Output Model
INPUT OUTPUT PROCESS
The IPO model will show the general structure and guide for the path of the dissertation. Substituting the variables of this research study on the IPO model, the researcher came up with the following:
Conclusion and Recommendations on the objectives of the dissertation.
Conclusion and Recommendations on the objectives of the dissertation.
· Qualitative and quantitative data from AIA employees · Literatures related to the topic (i.e. strategic management, critical success factors) Assessment and analysis of acquired data through observation, interpretation, and statistical treatment.
· Qualitative and quantitative data from AIA employees
· Literatures related to the topic (i.e. strategic management, critical success factors)
Assessment and analysis of acquired data through observation, interpretation, and statistical treatment.
For this research, the study will focus on assessing the strategy of AIA. The study will give emphasis on identifying the key resources of the company that enable them to stay in their competitive position. For this study, the research will only have respondents from employees of AIA.