Mihaela Laura Marina
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University of West London *
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Course
PRINCIPLES
Subject
Information Systems
Date
Nov 24, 2024
Type
docx
Pages
6
Uploaded by CommodoreKudu2300
Mihaela Laura Marina
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INTROD
UCTION
TO
BUSINES
S
ASSIGN
MENT 2
i.
EXECUTIVE SUMMARY
The report I am making is a detailed analysis of my business idea which has insurance
as its object of activity. I will present the reason why I chose this business, but also the
way it influences the market, the expectations we have in the short term, but also in the
long term and An analysis of internal and external elements from which we chose to
discuss the organizational structure. financing methods, but also about competition and
customers.
ii.
INTRODUCTION
Nowadays, there are a lot of people who need extra security in their lives. When we
decided to set up this business, we conducted market research from which we deduced
that there are many people, especially young people, who are exposed to all kinds of
risks. Our business idea started from the desire to adapt to people's needs and to create
personalized services for each person. The structure I chose is the partnership because
I weighed the advantages and disadvantages and decided that the main advantages of
this structure are the ease with which it opens, it does not require many documents
from a legal point of view, start-up capital is bigger because we will all contribute and
the responsibilities are shared.
The insurance industry is constantly growing.
Since 2018, the London Market has
experienced an almost 10% growth in business insurance premiums written in 2020
(cycles and Text, n.d.). Because of London's specialisation and reach, nearly any action
in any location can be insured. It is the only area in the world where every top 20
insurance and reinsurance firm is operational, giving it an unrivalled worldwide reach.
(ANZ Commercial Insurance Quick Reference Guide, 2018)
iii.
BODY
Any successful company is based on very well-thought-out decisions and a plan that
must be strictly followed. To do this correctly, we need to refer to the internal and
external information in our company and I will present some of these things.
Competition
The competition consists of several insurance companies that offer different services.
Their main disadvantage is that there are many companies that already have a name on
the market and some well-established customers. It will be difficult for us to live up to
our customers' expectations because we have to come up with something much newer
than our competitors. The main advantage over them is that we offer all types of
insurance, especially life insurance
Service Offering
Our range of services is quite varied. We also offer assistance to the insurance industry.
Our "menu" includes life insurance, pet insurance, home insurance, travel insurance,
car insurance or insurance for natural hazards such as earthquakes or floods. We also
have promotional packages and the most attractive would be: if we conclude a home
insurance policy, the car insurance will be at half price. We also offer compensation as
soon as possible.
Keys to Success
•
Generate repeat business.
•
100% complete customer satisfaction.
•
Competitive pricing.
•
Industry expertise.
Mission
Our mission is to offer customers the best services for their safety at an advantageous
price with 100% compensation. We exist to compensate people for any damage they
may suffer. We want our services to exceed customer expectations.
Marketing Research
For market research, we decided to conduct certain surveys to find out the opinions of
potential customers. Before doing this we assumed some information that we will
receive about their wishes, and after conducting this survey the assumptions were
confirmed and we obtained other information. The survey was conducted as an online
invitation and was answered by 200 people. Depending on the answers, we set some
goals and techniques to attract more customers.
Macro environmental analysis-PESTEL ANALYSIS
PESTLE analysis is a basic component of the business because it helps the owner to obtain
information about the macro environment on a large scale outside the industry.
-
Technological factors
Technological factors play an important role in the insurance economy and also in the
success of our business. it is a factor that can positively affect our business because it
brings us a lot of benefits (United States. Congress. Senate. Judiciary, 1958). As
technology is constantly evolving, we can use methods that attract customers' attention
and make our lives easier because the most important thing is to think about the
comfort of our customers. If we create an online application, they will be able to
access our services much easier and can also contact us through an online chat.
-
Economics factors
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There are many people who do not understand the importance of insurance and
consider it an unnecessary expense. Such products are essential items and must be
purchased under any circumstances. Unfortunately, economic instability and high
unemployment in England will not attract more buyers to our services and profits will
fall sharply. Therefore, it is clear that our company relies heavily on a stable economy
to successfully market our products.
-
Social factors
From a social point of view, the age of our clients, their culture, their tradition, their
preferences and the needs they have the most influence the business environment. We
offer lifelong products, from health insurance to business insurance. Unfortunately, not
everyone has the ability to understand their need, because they are not informed,
especially those in rural areas. Therefore, it is important for iamINSURANCE to keep
abreast of consumer buying trends and to tailor our services to their requirements.
-
Legal factors
The legal parts play an important role in a business and we had to be interested in them
from the beginning. In many countries, such as England, the legal framework is quite
strict. If we violate the legal regulations we will be fined and it is even possible that
our business will be closed. There are a lot of legal factors that we need to consider,
namely:
Anti-trust law in the Life Insurance industry and overall in the country.
Discrimination law
Copyright, patents / Intellectual property law
Consumer protection and e-commerce
Employment law
Health and safety law
Data Protection
MICROENVIRONMENTAL ANALYSIS-PORTER FIVE FORCES
Regardless of the chosen business and the industry in which you operate, you need a
comprehensive analysis of the competition to ensure that you form a strong current position in
the market, compared to new entrants or existing competitors. For this, we chose to analyze
with Porter's help what the future threats are for us. (Porter's 5 Forces, 2021)
The threat of new entrants
At the moment there are a lot of companies on the market dealing with the insurance industry
and in our area, we have identified five competitors. Because we are already in the beginning
we have quite a lot of competition but we entering the market could affect us negatively
because they can come up with more innovative things to do things and put pressure on us. It
has a pretty big impact on our company and we think the threat is pretty big.
The threat of substitutes
When we think of a product that replaces our product here does not take into account the
innovation or evolution of an existing product that there must be a product that is new to the
market. In the insurance industry, the products and services are the same for each company
and in the near future, I do not think there will be a new service to replace the services we
have in our company. That's why I think the threat to the new substitute is small.
Bargaining power of buyers
In the insurance industry, there are a lot of competitors who practice the same products and
services as our company and at similar prices. Competitors will choose the movies that offer
them the most benefits, so the bargaining power of the purchases is quite high because a buyer
can ask to buy from us several types of insurance. And we should attract them by offering a
promotional package.
Bargaining power of supplies
The suppliers have quite a bargaining power with us because they know that we are dependent
on them and they can ask us for a much higher price. They affect our business negatively
because it reduces our profitability. Unfortunately, we are dependent on suppliers and we have
to accept most of the conditions.
Rivalry among existing firms
Because we are a business that is just beginning we can arrange the competition if it remains
competitive and we offer new facilities to our customers to attract our attention from the
competition (Michael Porter Quotes, 2017). There are a lot of factors that we need to consider
from the product to the price, and we need to find out about the methods that our competitors
use to come up with something innovative. the insurance industry is very high and the rivalry
is quite high.
iv.
CONCLUSION
All start-up businesses face difficulties until they reach their market activity. In order for a
director to make the most beneficial decisions and to be able to create a competitive
advantage over the competitors in his industry, he needs any possible information that he
can obtain through various opinion polls. Nowadays there are a lot of ways in which a
company can measure its success and for this I have presented to my insurance company
the way in which threats and opportunities come to light through the analysis of Pestel and
Porter.
v.
REFERENCE LIST
1.
2018. ANZ Commercial Insurance Quick Reference Guide. [ebook] Melbourne: ANZ, p.2.
Available at:
<https://www.onepath.com.au/EPRReddot/content/70831_1008_ANZ_CommInsuranceQRG
_Final_080826.pdf> [Accessed 10 October 2018].
2.
BrainyQuote. 2017. Michael Porter Quotes. [online] Available at:
<https://www.brainyquote.com/quotes/quotes/m/michaelpor391591.html> [Accessed 28
February 2022].
3.
cycles, T. text provides general information S. assumes no liability for the information given
being complete or correct D. to varying update and Text, S.C.D.M. up-to-Date D.T.R. in the
(n.d.). Topic: Insurance industry UK. [online] www.statista.com. Available at:
https://www.statista.com/topics/4511/insurance-industry-uk/
.
4.
Investopedia. 2021. Porter's 5 Forces. [online] Available at:
<https://www.investopedia.com/terms/p/porter.asp> [Accessed 2 March
2022].
5.
United States. Congress. Senate. Judiciary (1958). The Insurance industry.
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