5.1 introduction 5.2 swot analysis of lic 5.2.1 general

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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5.1 INTRODUCTION

SWOT analysis is conducted to analyze internal and external environment of any

organization. This analysis comprises four components i.e. strengths,

weaknesses, opportunities and threats. Strengths and weaknesses are considered

to be internal positive and negative factors, whereas, opportunities and threats

are confined to external environment. This specific analysis is helpful in deciding

a unique and effective strategy to meet competitive challenges. If an organization

wants to lead in today’s competitive scenario, it has to sharpen its strengths and

overcome its weaknesses in the light of opportunities and threats.

5.2 SWOT ANALYSIS OF LIC

This section is divided into two broad categories. Part one comprises of General

SWOT analysis of the organization whereas the later part throws light on specific

SWOT analysis of leadership scenario prevailing in the organization. The

researcher identified major strengths, weaknesses, opportunities and threats

which can be summarized as follows:

5.2.1 GENERAL SWOT ANALYSIS OF LIC

The researcher after studying secondary data and consultation with some

independent inputs had identified certain general strengths, weaknesses,

opportunities and threats of the organization which were put forward in front of

the respondents through a self-structured questionnaire.

5.2.1.1 STRENGTHS OF LIC

Strengths are internal positive factors which accelerate the growth of any

organization. Major identified strengths of the organization on the basis of

secondary and primary data are summarized in the table 5.1


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TABLE 5.1 STRENGTHS OF LIC

STRENGTHS RANK

1 2 3 4 5 TOT. W.A. RANK

FINANCIAL SOUNDNESS 36 27 13 20 11 107 3.5 I

ADEQUATE BUSINESS

ENVIRONMENT 37 23 19 13 15 107 3.5 I

QUALITY PRODUCTS 31 29 17 21 09 107 3.4 II

INFRASTRUCTURE AND NETWORK 32 21 14 27 13 107 3.3 III

GOOD REPUTATION 33 25 15 22 12 107 3.2 IV

1. Scale: Ranking Scale 1-5, TOT=Total, W. A.=Weighted Average

2. Source: Primary Survey

5.2.1.1.1 FINANCIAL SOUNDNESS

First strength of the organization according to the respondents is its financial

soundness. The weighted average score of this parameter is 3.5 which reveal that

around 70% of the respondents believe that their organization is financially

sound. As LIC is the largest life insurance company having 64% market share.

5.2.1.1.2 ADEQUATE BUSINESS ENVIRONMENT

Next strength of the organization is its adequate business environment. As the

organization is having the plans for all the sections of the society its business

environment automatically increases. According to the respondents it is also the

biggest strength of the organization with the weighted average score of 3.5.

5.2.1.1.3 QUALITY PRODUCTS

Another strength of the organization is its product in the market. The weighted

average score is 3.4 which reveal that more that 65% of the respondents believe

that the organization is having quality products. LIC is an organization which is

having the objective of social welfare and it is made for both the sections of the

society. The organization is having both types of plans for the persons the

traditional plans and the united link plans.


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5.2.1.1.4 INFRASTRUCTURE AND NETWORK

LIC is having a good infrastructure and netwok. As the organization is having

2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and

the corporate office. LIC’s Wide Area Network covers 100 divisional offices and

connects all the branches through a Metro Area Network. LIC has tied up with

some banks and service providers to offer on-line premium collection facility in

selected cities.The Corporation directly operates through its Branch offices at

Port Louis in Mauritius, Suva & Lautoka in Fiji and at Wembley in the United

Kingdom. During the year 2008-09, these three foreign Branches together issued

1,073 policies with Sum Assured of US$ 85.1 million and First premium income

of US$ 4.52 million.

5.2.1.1.5 GOOD REPUTATION

According to the respondents the next strength of the organization is its

reputation in the market. The weighted average score of this parameter is 3.2

which reveal that around 60% of the respondents believe that the organization is

having good reputation in the market.

5.2.1.1.6 PRODUCT DEVELOPMENT

In a competitive market, there is a greater need to provide insurance products

that meet the needs of our customers. LIC therefore offers a wide variety of

products which fulfills the needs of different segments of the society. As at the

end of the financial year 2008-09, the Corporation had 52 plans available for

sale. During the year Corporation introduced 6 new Plans viz. Money Plus-1,

Market Plus-1, Jeevan Bharti-1, Child Fortune Plus & two closed ended plans viz

Jeevan Astha and Jeevan Varsha.


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5.2.1.1.7 AGENCY STRENGTH

The total number of Agents on our Roll is 13,44,856 as on 31.03.2009 against

11,93,744 as on 31.03.2008. The number of Active Agents is 12,75,611 as at

31.03.2009 as compared to 11,17,908 as on 31.03.2008.

5.2.1.1.8 INVESTMENT IN SOCIAL SECTOR

The total investments of the Corporation amounted to Rs. 815483.95 crore as at

31st March, 2009. The Corporation subscribed an amount of Rs.35284.40 crore

(face value) and Rs.18154.93 crore (face value) to the Securities of the

Government of India and the new loan issues of the various State Governments

respectively during 2008-2009. The Corporation has been promoting Social

Schemes through investments in Infrastructure and Social Sector which includes:

Projects/Schemes for generation and transmission of Power, Housing Sector,

Water Supply and Sewerage Projects/Schemes, Development of Roads, Bridges &

Road Transport. The total Investment in these sectors during 2008-09 was

Rs.21,775.57 crore as indicated in Table 7. The investments by way of Central,

State and Other Government Guaranteed Marketable securities, Loans &

Debentures to Infrastructure and Social Sector amounts to Rs. 5,30,159 crore.

5.2.1.1.9 AUTHORIZED AGENTS

Keeping in tune with the increasing customer expectation for more Conveniences

in servicing, the Corporation has empowered select Agents to collect the renewal

premium. At present, there are 2590 authorized Agents across the country.

5.2.1.1.10 CORPORATE COMMUNICATION

During the year, the emphasis was on fortifying the Brand “LIC” more effectively

through various Corporate Communication strategies. All media activities were

focused on achieving optimum value for the money spent. A conscious effort was

made to enhance the Brand presence throughout the year across various media

with cost effective communication. Four new TV commercials were produced on


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products viz., Jeevan Anand, LIC’s Children Plans, Jeevan Aastha and Jeevan

Varsha. Jeevan Aastha and Jeevan Varsha commercials became extremely

popular and were widely appreciated.

5.2.1.1.11 RURAL THRUST

Sustained and conscious efforts are made to carry the message of Life Insurance

to the rural areas, especially the backward and remote areas. As a result, there

has been steady growth of new business from these areas. As per the definition of

rural/social sector approved by IRDA, the New Business from rural areas

amounts to Sum Assured of Rs. 73354.97 crore (Rs733.54 billion) under

87,14,662 (8.71 million) policies representing 24.28% and 18.81% share of

policies and Sum Assured respectively completed during the financial year 2008-

09.

5.2.1.1.12 MISCELLANEOUS STRENGTHS

The organization is having some miscellaneous strengths which are as follows:

5.2.1.1.12.1 POLICIES ASSURED

During the financial year 2008-09, 325.84 lakh (Rs.32.584 million) individuals

were insured for the first time for a total Sum Assured of Rs. 360937.07 crore

(Rs.3609.37 billion) as against the previous year’s figures of 355.47 lakh

(Rs.35.55 million) policies for S.A. of Rs.260873.23 crore (Rs.2608.73 billion).

The ratio of First Insurance to the Total Business completed for the year comes to

90.78% and 92.54% in respect of Number of Policies and Sum Assured

respectively.

5.2.1.1.12.2 REPRESENTATIVE OFFICE

First ever Representative Office was opened in Singapore on 6th November,

2008. This Office is engaged in market research, study of regulatory issues and

assessment of potential for viable operations through appropriate route.


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5.2.1.1.12.3 ONLINE PAYMENT CHANNELS

Online premium payment on LIC Website: www.licindia.in with the help of Net

Banking Facility of 33 major Banks.

5.2.1.1.12.4 ATM

Available with two banks - Corporation Bank and Axis Bank. Through EBPP &

ATM Premium can be collected for in force policies only which are NOT with

Monthly /SalarySaving Schemes mode or under ULIP or Health Insurance plan.

5.2.1.1.12.5 CORPORATE ACTIVE DATA WAREHOUSE (CADW):-

LIC’s CADW is one of the largest life insurance customer databases in the world.

The Project has enabled LIC to launch various Customer focused Campaigns like

the Customer Contact Programs and Gold Club Customer Campaigns launched in

Pune, Chennai, Hyderabad, Kolkata, Delhi in 2008-09 and various targeted

marketing competitions. The major achievement has been to send a single notice

for premium falling due in the same month for various polices of an individual

customer. The project was also successfully used for generating marketing leads.

All these initiatives launched have made the Brand LIC more visible in the eyes of

the customers.

5.2.1.1.12.6 NETWORK

New software has been implemented at IVR/INFO Centers at 13 locations across

the country. The software enables the executives to attend to the queries raised by

customers in an efficient manner besides generating MIS reports locally and

remotely.

5.2.1.1.12.7 INTERNAL AUDIT

The audit of all Branch/Divisional/Zonal Offices and CO Departments of the

Corporation for the year 2008-2009 has been duly completed as on 31.03.2009.

The concurrent audit of Investment Department was also conducted on a


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continuous basis. In keeping with our practice of improving our systems and

procedures through the use of IT as a tool, audit packages are being used so that

our auditors are able to carry out the audit in a Front End Applications Package

(FEAP) environment. Information Systems Audit was introduced on a pilot basis

last year and was conducted in 15% of our branches in 2008-09.

5.2.1.1.12.8 INSPECTION

During the year 2008-2009, the Inspection of all the Branches, Divisional and

Zonal Offices in India was carried out.

5.2.1.1.12.9 VIGILANCE

Special efforts were made to focus on disposal of vigilance cases pending over one

year. Special study was conducted on System Improvement for better Vigilance.

Administration and consolidated Report suggesting Department-wise corrective

actions were submitted for necessary action. Practiced preventive vigilance in the

offices of the Organization educating all classes of employees and Agents to

reduce the scope of misconducts leading to frauds. Strict adherence to CVC

guidelines is being ensured in the areas of stores purchase and Building

contracts.

5.2.1.1.12.10 CORPORATE GOVERNANCE

Adherence to good Corporate Governance is an integral part of the philosophy of

LIC’s business conduct. The driving forces behind institutionalizing the practices

of good Corporate Governance are various proactive measures, initiatives and

guidance by the Government, LIC Board and its Sub Committees along with LIC’s

Human Resources and Agents. This has enabled the organization in enhancing

their Brand Equity, strengthen stake of shareholders and maintain a healthy

environment within the organization. This has led to a committed organizational

focus on the customer service which in turn has contributed to a good growth in

business.


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5.2.1.2 WEAKNESSES OF LIC

Strengths and weaknesses are two sides of a coin. Major identified weaknesses of

the organization as per the questionnaire are summarized in the table 5.2.

TABLE 5.2 WEAKNESSES OF LIC

WEAKNESSES RANK

1 2 3 4 5 TOT W.A RANK

LACK OF MARKETING EXPERTISE 31 25 27 09 15 107 3.5 I

POOR QUALITY OF GOODS AND

SERVICES 24 31 30 12 10 107 3.4 II

UNDIFFERENTIATED PRODUCTS AND

SERVICES 27 30 10 29 11 107 3.3 III

LACK OF CREATIVITY AND INITIATIVE 29 15 27 21 15 107 3.2 IV

HIGH STRESS 23 19 25 27 13 107 3.1 V



5.2.1.2.1 LACK OF MARKETING EXPERTISE

The first weakness of the organization is that it lacks expertise. The employees

working in the organization are not very expert in the latest technology and

trends. The weighted average score of this parameter is 3.5 which reveal that

around 70% of the respondents believe that their employers are not so expert and

updated to the latest trends and technology.

5.2.1.2.2 POOR QUALITY OF GOODS AND SERVICES

The weighted average of this parameter is 3.4 which reveal that more that 65% of

the respondents believe that the organization is not having the quality products

in comparison to the other competitive organizations.

5.2.1.2.3 UNDIFFERENTIATED PRODUCTS AND SERVICES

Next weakness of the organization is its undifferentiated products and services.

The weighted average score of this parameter is 3.3 which reveal that around


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60% of the respondents believe that the organization is having undifferentiated

products and services in comparison to its competitors.

5.2.1.2.4 LACK OF CREATIVITY AND INITIATIVE

Fourth weakness according to the respondents with 3.2 weighted average score is

lack of creativity and initiative. The employees of the organization believe that

their employers lack creativity and do not want to take initiative in the

organizations working.

5.2.1.2.5 HIGH STRESS

After globalization many big players entered in the market and due to this the

organization comes under high pressure of competition. The weighted average

score of this parameter is 3.1 which revel that more than 55% of the respondents

believe that the organizations employees work under high stress.

5.2.1.3 OPPORTUNITIES OF LIC

Major identified opportunities of the organization as per the questionnaire can be

summarized in the table 5.3.

TABLE 5.3 OPPORTUNITIES OF LIC

OPPORTUNITIES RANK


UPCOMING MARKET LINK PLANS 49 16 10 15 17 107 3.6 I

GLOBALISED MARKET 39 23 12 11 22 107 3.4 II

LIBERALIZATION 37 19 14 21 16 107 3.4 II

AWARENESS OF INSURANCE 31 27 15 16 18 107 3.3 III

TECHNOLOGICAL ADVANCEMENT 35 21 13 17 21 107 3.3 III



5.2.1.3.1 UPCOMING MARKET LINK PLANS

The first biggest opportunity for the organization is the upcoming market linked

plans. The weighted average score of this parameter is 3.6 which reveals that


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around 70% of the employees believe that upcoming plans in the market play an

important role of opportunity for their organization.

5.2.1.3.2 GLOBALIZED MARKET

Next opportunity for the organization is globalization in insurance sector. After

globalization many big insurance players have entered in the market and the

market area for insurance players has increased. Globalization has brought new

trends and technologies for the developing countries. Globalization improves the

productivity and increases competition in the market. LIC upgrades its products

and use latest technology for upgrading its employees.

5.2.1.3.3 LIBERALIZATION

Another opportunity for the organization is liberalization. Table 5.7 shows that

the weighted average score of this parameter is 3.4 which reveal that around 68%

of the respondents believe that relaxation in the government restrictions help the

organization in increasing its market.

5.2.1.3.4 AWARENESS OF INSURANCE

Now a days people have become aware of the products and plans offered by the

insurance sector. The weighted average score of this parameter is 3.3 which

reveals that awareness of insurance among the general public has become an

opportunity for the organization. Today, customers take the subject matter of

insurance not only as saving mode but also as investment tool. Due to the

awareness of insurance, the number of policy buyers is increasing day by day and

that is why this factor plays the role of opportunity for the insurance companies.

5.2.1.3.5 TECHNOLOGICAL ADVANCEMENT

Last opportunity for the organization is technological advancement. The

weighted average score of this parameter is 3.3 which reveals that around 60% of


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the respondents believe that advancement in the technology plays an important

role in upgrading the organization.

5.2.1.4 THREATS OF LIC

Major identified threats of the organization as per the questionnaire can be

summarized in the table 5.4.

TABLE 5.4 THREATS OF LIC

THREATS RANK


HIGH COMPETITION 37 29 17 09 15 107 3.6 I

RECESSION 41 25 11 12 18 107 3.5 II

TAXATION POLICIES 31 30 14 10 22 107 3.3 III

GOVERNMENT INTERVENTION 29 27 15 11 25 107 3.2 IV



5.2.1.4.1 HIGH COMPETITION

The first biggest threat for the organization is high competition in the market.

The weighted average score of this parameter is 3.6 which reveal that 72% of the

respondents believe that after globalization in market many big players have

entered in the market which lead to be a threat for LIC.

5.2.1.4.2 RECESSION

Second threat for the organization is recession with the weighted average score is

3.5 which reveals that 70% of the respondents believe that recession is a big

threat for the insurance industry. At the time of recession individual’s purchasing

capacity comes down and the person even does not think about to opt the

insurance policy in the light of fulfillment of his daily needs.


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5.2.1.4.3 TAXATION POLICIES

According to the table5.8 the third threat for the organization is taxation polcies

of the government. Due to the higher taxation polices the persons are not able to

purchase the insurance policies and plans.

5.2.1.4.4 GOVERNMENT INTERVENTION

Last threat for the organization is government inference in the sector. The

weighted average score of this parameter is 3.2 which reveals that around 64% of

the respondents believe that government interference in the policies and

programs of the organization plays a role of threat for the organization.

5.2.2 SWOT ANALYSIS OF LEADERSHIP IN LIC

This part includes the specific SWOT analysis related to the organization as per

the questions asked in the questionnaire.

5.2.2.1 STRENGTHS OF LEADERSHIP IN LIC

Strengths are internal positive factors which accelerate the growth of any

organization. Any organization that wants to compete must focus on upgrading

and polishing its strengths. Major identified strengths related to leadership in

LIC can be summarized in table 5.5.

TABLE 5.5 STRENGTHS OF LEADERSHIP IN LIC

STRENGTHS RANK

1 2 3 4 5 6 7 8 9 10 TOT. W.A RANK

COMMITTED 24 18 14 8 11 6 12 7 5 2 107 6.9 I

CONSISTENT 13 19 16 11 12 5 9 8 6 8 107 6.3 II

KNOWLEDGEABLE 7 12 13 20 15 13 7 9 5 6 107 6.1 III

FRIENDLY 15 9 17 6 12 7 9 12 5 15 107 5.7 IV

LEARNING

ATTITUDE 19 7 5 11 8 9 23 6 10 9 107 5.6 V

RESPONSIVE 15 11 8 14 5 6 7 4 23 14 107 5.3 VI


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COMMUNICATIVE 5 10 9 12 7 19 17 6 14 8 107 5.1 VII

VISIONARY 9 15 5 9 11 8 6 12 18 14 107 5.0 VIII

CONFIDENT 17 6 3 12 2 11 7 15 14 20 107 4.9 IX

PLANNED 6 12 7 5 13 8 12 11 16 17 107 4.7 X



5.2.2.1.1 COMMITTED

One of the biggest strengths of LIC is commitment. The weighted average score of

this strength is 6.9 which reveals that 69% of the respondents believe that

commitment is top most strength in LIC. The leaders and employers in the

organization are committed towards their work and organization.

5.2.2.1.2 CONSISTENT

Second strength of LIC is consistency. The weighted score of this parameter is

6.3, which reveal that 63% of the respondents believe that their leaders are

consistent in their work with full responsibility and awareness.

5.2.2.1.3 KNOWLEDGEABLE

The weighted score of this parameter is 6.1, revealing that 61% of the respondents

believe that their leaders are knowledgeable. As researcher has also seen that the

employees in the organization are knowledgeable, having update knowledge of

market and as well as technology and trends.

5.2.2.1.4 FRIENDLY

Next strength of leadership in LIC is that the superiors in the organization are

friendly in nature. The weighted average score is 5.7, which reveals that 57% of

the respondents believe that their leaders are friendly in nature and do work with

them in friendly manner.


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5.2.2.1.5 LEARNING ATTITUDE

One of the strengths of leadership in LIC is that the employees in the

organization are having learning attitude. They are always keen to learn the new

and upcoming trends and technologies in the market. The weighted score of this

strength is 5.6, which reveals that 56% of the respondents believe that their

leaders are always willing to learn something.

5.2.2.1.6 RESPONSIVE

The weighted score of this parameter is 5.3, which reveal that 53% of the

respondents believe that their leaders are responsible towards the work and

towards the organization. The leaders in the organization complete all the work

with full responsibility and also take care of their subordinates with full

responsibility.

5.2.2.1.7 COMMUNICATIVE

Next strength of leaders in LIC is communication power. The weighted average

score of this parameter is 5.1, which reveal that 51% of the respondents believe

that their leaders are good at communication. They communicate with their

subordinates and with their customers in a good manner. They communicate all

the policies, rules and regulations to their subordinates thoroughly.

5.2.2.1.8 VISIONARY

One of the strengths of leadership in LIC is that the leaders in the organization

are visionary. The weighted score of this parameter is 5.0, which reveals that 50%

of the respondents believe that their leaders are having the power to forecast the

future.

5.2.2.1.9 CONFIDENT

Second last strength of LIC is that their leaders are confident. The weighted

average score of this parameter is 4.9 which reveal that less than 50% of the


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respondents believe that their leaders are confident and they work in the

organization with confidence.

5.2.2.1.10 PLANNED

Last strength of LIC is that the leaders in the organization are planned. The

weighted score is 4.7, states that 47% of the respondents believe that their leaders

are well organized in their activities and they work in the organization in a

planned manner.

5.2.2.2 WEAKNESSES OF LEADERSHIP IN LIC

Strengths and weaknesses are almost two sides of the same coin. No organization

can cope up without internal limitations. This section of analysis throws light on

major weaknesses identified by the respondents. The responses can be

summarized in table 5.6

TABLE 5.6 WEAKNESSES OF LEADERSHIP IN LIC

WEAKNESSES RANK

1 2 3 4 5 6 7 8 9 10 TOT. W.A. RANK

LACK OF EXPERIENCE 22 15 12 9 13 4 11 12 4 5 107 6.9 I

LACK OF CONFIDENCE 17 22 13 14 5 8 9 4 7 8 107 6.8 II

LACK OF TRANSPARENCY

27 11 13 7 5 13 9 14 6 2 107 6.6 III

SELF CENTERED 23 11 13 7 9 5 10 11 10 8 107 6.2 IV

POOR COMMUNICATION 9 27 7 9 8 9 13 6 9 10 107 6.0 V

LACK OF ATTITUDE 14 12 10 18 9 7 11 9 6 11 107 5.9 VI

LACK OF ENTHUSIASM 13 21 11 7 9 6 5 16 9 10 107 5.7 VII

LACK OF CREATIVITY 13 15 10 5 12 7 11 10 21 3 107 5.6 VIII

LACK OF INITIATIVE 13 11 7 4 3 21 11 13 16 8 107 5.2 IX

LACK OF VISION 13 11 5 7 9 11 12 15 8 16 107 5.0 X




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5.2.2.2.1 LACK OF EXPERIENCE

The first weakness is regarding experience. The weighted average score of this

parameter is 6.9, which reveal that 69% of the respondents believe that their

leaders are having lack of experience. They are not having the experience related

to the technologies and knowledge.

5.2.2.2.2 LACK OF CONFIDENCE

The second weakness of leaders in the organization is lack of confidence with the

weighted average score is 6.8 which states that 68% of the respondents believe

that their leaders are lacking in confidence.

5.2.2.2.3 LACK OF TRANSPARENCY

One of the weaknesses of leaders in LIC is that their leaders are not transparent

in their work. The weighted average score of this parameter is 6.6 which states

that 66% of the respondents believe that the leaders are not having transparency

in their work.

5.2.2.2.4 SELF-CENTERED

Next weakness of leaders in LIC is that their leaders are self-centered. The

weighted average score of this parameter is 6.2, which reveal that 62% of the

respondents believe that their leaders focus on themselves only and not on their

subordinates.

5.2.2.2.5 POOR COMMUNICATION

One of the weaknesses of leaders in LIC is that their leaders are not good at

communication. 60% of the respondents believe that their leaders in the

organization do not communicate properly about the policies, rules and

regulations of the organization to their subordinates.


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5.2.2.2.6 LACK OF ATTITUDE

In LIC the leaders in the organization are having lack of attitude as the weighted

average score of this parameter is 5.9, which reveal that 59% of the respondents

believe that their leaders lack attitude in their working.

5.2.2.2.7 LACK OF ENTHUSIASM

The weighted average score of this parameter is 5.7, which states that 57% of the

respondents believe that their leaders are having lack of enthusiasm. The

superiors are not having the enthusiasm for doing work and that is why they are

not able to generate enthusiasm in their subordinates.

5.2.2.2.8 LACK OF CREATIVITY

Lack of creativity is also one of the weaknesses of leadership in the organization.

As per the weighted average score 56% of the respondents believe that their

leaders lack creativity. The leaders in the organization are not having the

capability to present things in creative manner, and they are not able to attract

their subordinates in the organizational work.

5.2.2.2.9 LACK OF INITIATIVE

Next weakness related to leadership in the organization is that the leaders in the

organization are not take initiative. 52% of the respondents were agreeing with

this parameter and believe that their leaders are reactive in performing the tasks.

5.2.2.2.10 LACK OF VISION

The last weakness of the organization is lack of vision with the weighted score of

5.0, which reveals that 50% of the respondents believe that their leaders are not

having the power to see the future and they are not able to visualize the coming

trend for the organization.


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5.2.2.3 LEADERSHIP OPPORTUNITIES IN LIC

Every organization is quite enthusiastic and keen to explore the opportunities

with proper utilization of strength at the right time. Various identified and

further ranked opportunities by the respondents are as follows:

TABLE 5.7 LEADERSHIP OPPORTUNITIES IN LIC

OPPORTUNITIES RANK

1 2 3 4 TOT. W.A. RANK

LIBERALIZATION 49 31 19 8 107 3.6 I

PROFESSIONALISM 51 22 27 7 107 3.0 II

CONTINUOUS DEVELOPMENT 47 23 19 18 107 2.8 III

INFORMATION TECHNOLOGY ADVANCEMENT 45 27 13 22 107 2.6 IV




The first opportunity for leadership in the organization is liberalization. After

liberalization many private players have come in the market, which lead to the

development in public sector also. Good managers and leaders are coming in the

market because after liberalization the organizations have started conducting

management development programs. The weighted score of this parameter is 3.6,

which reveal that around 90% of the respondents believe that liberalization is a

great opportunity for developing leaders in the organization.

5.2.2.3.2 PROFESSIONALISM

Next opportunity for the organization is professionalism. As professionalism is

increasing in the market and due to this the organizations are getting trained and

professional leaders from the institutes. Now, because of professionalism the

organizations are not taking the pain of giving training to the leaders because

they already get the professionals from the market. 75% of the respondents

believe that professionalism is also an opportunity for the organizations.


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5.2.2.3.3 CONTINUOUS DEVELOPMENT

Continuous development has been ranked as third opportunity for the

organization. The weighted score of this parameter is 2.8, which reveal that 70%

of the respondents believe that continuous development in the market is working

as an opportunity for the organizations. As market is continuously developing,

the organizations are also getting the developed leaders from the market and they

also organize various programs so that their leaders can be developed.

5.2.2.3.4 INFORMATION TECHNOLOGY ADVANCEMENT

Last opportunity for the organization is information technology advancement. In

LIC, the employee focuses on the latest technologies which are coming in the

market and also application of these technologies.

5.2.2.4 LEADERSHIP THREATS IN LIC

LIC is also working under certain unfavorable still unavoidable external

circumstances, termed as threats. Major threats identified and ranked by the

respondents can be summarized in a tabular form in table no. 5.8

TABLE 5.8 LEADERSHIP THREATS IN LIC

THREATS RANK

1 2 3 4 5 TOT W.A. RANK

POLITICAL CHALLENGE 36 27 11 15 18 107 3.4 I

RECESSION 30 21 19 23 14 107 3.3 II

EXCESSIVE COMPETITION 19 29 22 24 13 107 3.1 III

ECONOMIC FACTORS 17 19 18 21 32 107 2.7 IV

DERAGULATION 19 17 20 11 40 107 2.6 V



5.2.2.4.1 POLITICAL CHALLENGE

Political challenge is the top most threat for leadership in organization. The

weighted score of this parameter is 3.4, which reveal that 68% of the respondents


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believe that political pressure is a major challenge. Due to change in the political

parties, the rules, regulations and the policies in the market change at a speedy

rate and this creates problem for the employees and also for the customers.

5.2.2.4.2 RECESSION

Recession is also a big challenge for the organizations. Due to recession, the

earning power of the customers comes down and they pull their hands from the

insurance side which creates a lot of problems for the insurance industry. The

weighted score of this parameter is 3.3, which indicates that more that 50% of the

respondents believe that recession is a major challenge for the organizational

growth.

5.2.2.4.3 EXCESSIVE COMPETITION

The third major challenge for the organization is excessive competition in the

field of insurance. After globalization, government has opened the gate for private

players in the market and many big companies have already jumped in insurance

sector, which has created a big problem for LIC. For a long time in insurance

sector only LIC was there and the organization was enjoying monopoly in the

market, but in current scenario LIC is facing a tough competition due to the

private players.

5.2.2.4.4 ECONOMIC FACTORS

Next challenge for the organization is related to the economic policies in the

market. As earning power comes down, the insurance business also comes down.

The weighted score of this parameter is 2.7 which reveal that 54% of the

respondents believe that economic factors are the major challenge for the

organization.


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5.2.2.4.5 DEREGULATION

The weighted average score of this parameter is 2.6 which reveals that only 52%

of the respondents believe that deregulation is a threat for the organization.

When the government removes it control from the industry then, the

organizations did not perform well in the market.

5.3 SWOT ANALYSIS OF BAJAJ ALLIANZ

In this section, strengths, weaknesses, opportunities and threats have been

identified and analyzed by the researcher following the same pattern as in case of

LIC. Item wise detailed analysis is as follows:

5.3.1 GENERAL SWOT ANALYSIS OF BAJAJ ALLIANZ

This part consists of general SWOT analysis of Bajaj Allianz. All the elements are

based on policy documents, websites and other published material along with the

consultation with the respondents of Insurance industry. All the parameters

were mentioned in the questionnaire under the questions related to SWOT.

Thereafter, the questionnaire was executed to the respondents of both the

organizations. Respondents have ranked these parameters as per their

preferences.

5.3.1.1 STRENGTHS OF BAJAJ ALLIANZ

Major identified specific strengths of the organization as per the questionnaire

can be summarized in the table5.9.

TABLE NO. 5.9 STRENGTHS OF BAJAJ ALLIANZ

STRENGTHS RANK

1 2 3 4 5 TOT. W.A. RANK

ADEQUATE BUSINESS ENVIRONMENT 81 64 21 17 07 190 4.02 I

INFRASTRUCTURE AND NETWORK 62 47 29 29 23 190 3.50 II

QUALITY PRODUCTS 32 59 67 21 11 190 3.42 III

FINANCIAL SOUNDNESS 57 31 42 11 49 190 3.18 IV

GOOD REPUTATION 29 16 13 52 80 190 2.27 V

1. Scale: Ranking Scale 1-5, TOT=Total, W. A.=Weighted Average 2. Source: Primary Survey


~ 160 ~

5.3.1.1.1 ADEQUATE BUSINESS ENVIRONMENT

Around 80% of the respondents believe that the business environment is

adequate for them. Bajaj Allianz is under constant pressure to provide its users

with a robust computing environment. With a requirement of over 1,000

concurrent users, efficient storage and data retrieval was the key. Lowering the

overall infrastructure cost and ensuring sustained investment protection-while

simultaneously energizing performance and optimal storage management-were

some of the challenges that Bajaj Allianz was grappling with.

5.3.1.1.2 INFRASTRUCTURE AND NATIONAL NETWORK

The organizations Head Office is located at Pune, with more than 1100 branches.

It has 7 Processing HUBS located at Bhilwara, Chandigarh, Kolkata, Pune, Salem,

Bangalore and Coimbatore, 28 regional or state offices and state operations

managers. The organization is having over 9,000 sales managers, over 3, 00,000

insurance consultants, and more than 10 bank assurance partners across the

country. The organization is having strong alternate channel with over 1421

Franchisees, over 233 corporate agents, more than 28 brokers and over 133

Direct Marketing Branches operating nationwide.

5.3.1.1.3 QUALITY PRODUCTS

Third biggest strength of the organization is quality products along with unit link

plans and capital gain plans. The Company launched a basket of 15 new products

during the year 2009, with a view to providing additional products to the

customers. The Company now has 38 individual products and 14 group products

catering to all strata of the society. Product tailored leadership is used by the

organization for satisfying the needs of the customers and their employees. Bajaj

Allianz Life Insurance ensures excellent insurance and investment solutions by

offering customized products, supported by the best technology.


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5.3.1.1.4 FINANCIAL SOUNDNESS

Financial soundness is one of the strengths of the organization. The weighted

score of this parameter is 3.18, which reveals that around 64% of the respondents

believe in the financial soundness is one of the strength of the organization. Bajaj

Allianz Life Insurance has over 40,00,000 satisfied customers, supported by

customer care centers in 155 cities and supplemented by 35,000 insurance

consultants. A countrywide network of 876 offices, assets under management Rs.

5,500 cr. and shareholder capital base of Rs. 700 cr.

5.3.1.1.5 GOOD REPUTATION

On the basis of the responses of the respondents, the researcher has analyzed that

one of the strengths of the organization is its good reputation in the market.

Around 45% of the respondents believe that their organization’s reputation is

good in the market. Researcher also believes the same to some extent. The

Company was ranked 32 in the Economic Times most trusted service brand

survey and was ranked 30 in the Pitch Magazine India's top 50 service brand.

Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and its market

share went up to 6.98% in 2007-08 form 5.66% in 2006-07. The company

ranked second (after LIC) in number of policies sold in 2007-08, with total

market share of 7.36%.

5.3.1.1.6 GLOBAL PRESENCE

BALIC is a joint venture between Allianz SE of Germany and India based Bajaj

Auto Limited. BALIC came into being on 12th March 2001. It is characterized by

global presence with a local focus and is driven by customer orientation to

establish high earning potential and financial strength.

5.3.1.1.7 CUSTOMER SERVICE AND CLAIM SETTLEMENT PROCESS

The organization is having over 4 million satisfied customers, and it uses highest

standard of customer services and simplified claims process in the industry. The


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organization has its own website to provide all assistance and information on

products and services, online buying and online renewals, swift and easy claim

settlement process.

5.3.1.2 WEAKNESSES OF BAJAJ ALLIANZ

Major identified specific weaknesses of the organization as per the questionnaire

can be summarized in the table 5.10.

TABLE NO. 5.10 WEAKNESSES OF BAJAJ ALLIANZ

WEAKNESSES RANK

1 2 3 4 5 TOT. W.A. RANK

POOR QUALITY OF GOODS AND SERVICES 37 81 10 32 30 190 3.3 I

UNDIFFERENTIATED PRODUCTS AND SERVICES 39 47 20 53 31 190 3.0 II

HIGH STRESS 38 36 22 48 46 190 2.9 III

LACK OF CREATIVITY AND INITIATIVE 27 51 17 57 38 190 2.8 IV

LACK OF MARKETING EXPERTISE 21 39 41 59 30 190 2.6 V



5.3.1.2.1 POOR QUALITY OF GOODS AND SERVICES

As quality products is one of the strengths of Bajaj Allianz life Insurance

organization it is one of the weaknesses also because on one side the organization

is launching new products related to unit linked plans and capital gain plans, and

on the other side the organization is lacking in traditional plans of insurance. The

organization is not having any traditional plans, which work as a strength of any

insurance company.

5.3.1.2.2 UNDIFFERENTIATED PRODUCTS AND SERVICES

Second weakness of the organization is that the organization is having

undifferentiated products and services. The organization has the same products

that are already available with other insurance companies. The weighted average

score of this parameter is 3.0, which reveals that 60% of the respondents believe

that it is one of the major weaknesses of the organization.


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5.3.1.2.3 HIGH STRESS

The researcher also observed that the employees of the organization were

working under stress. The employees in the organization have target based jobs

and they have a lot of pressure to complete their targets. The employees are

forced to complete their targets in any situation.

5.3.1.2.4 LACK OF CREATIVITY AND INITIATIVE

One of the weaknesses of the organization is that the employees of the

organization do not want to take the initiative for any work. The employees are

not creative hence do not want to create new things and new patterns for the

organization.

5.3.1.2.5 LACK OF MARKETING EXPERTISE

The organization lacks expert employees. The employees are not so experienced

because many of the employees in the organization are fresh graduates at the

time of joining the organization. Moreover, because of high stress and job

pressure many experienced employees switchover their jobs.

5.3.1.2.6 LESS COVERAGE IN RURAL AREA

The organization does not focus on the rural area. The organization is not having

products for rural areas. As a result, the company is unable to adequately serve

one big market segment and management is suddenly swamped with support

problems and competitors.

5.3.1.2.7 LIMITED OPERATIONS

The company does not have operations in any other country. It is limited to India

only, since the company performs all the functions within the local boundaries,

and it does not work at international level. The management has not directly or

indirectly invested outside India.


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5.3.1.3 OPPORTUNITIES OF BAJAJ ALLIANZ

Major identified specific opportunities of the organization as per the

questionnaire can be summarized in the table 5.11.

TABLE NO. 5.11 OPPORTUNITIES OF BAJAJ ALLIANZ

OPPORTUNITIES RANK

1 2 3 4 5 TOT. W.A. RANK

UPCOMING MARKET LINKED PLANS 54 39 37 41 19 190 3.5 I

GLOBALISED MARKET 69 31 41 29 20 190 3.4 II

AWARENESS OF INSURANCE 57 32 41 39 21 190 3.3 III

LIBERALIZATION 51 42 39 21 37 190 3.2 IV

TECHNOLOGICAL ADVANCEMENT 49 37 32 27 45 190 3.1 V



5.3.1.3.1 UPCOMING MARKET LINKED PLANS

One of the opportunities for insurance sector is that upcoming market linked

plans. The weighted score of this parameter is 3.5, which reveals that 70% of the

respondents believe that market linked plans are playing the role of opportunity

for all the insurance companies.

5.3.1.3.2 GLOBALISED MARKET

Next opportunity for the organization is globalization. After globalization,

organizations started doing business beyond the geographical boundaries. It

increases the size of market, size of customers and also the upcoming

technologies and opportunities.

5.3.1.3.3 AWARENESS OF INSURANCE

As awareness among the people related to insurance is increasing day by day,

now a days people do not take insurance as safety concept but they take it as an

investment concept.


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Liberalization is also one of the opportunities for the private sector life insurance

organizations. After Liberalization, government has opened the gates for private

players in insurance sector. Liberalization policy plays an important role for all

the private sector players, and all the companies jumped in the market with latest

policies.

5.3.1.3.5 TECHNOLOGICAL ADVANCEMENT

The organization uses advance tools and techniques for working in the

organization. Bajaj Allianz life insurance is a private sector organization and uses

latest technology for conducting all the functions related to the organization.

5.3.1.3.6 HIGH GROWTH OF ULIP INDUSTRY

High growth of ULIP plans plays an important role of opportunities for insurance

industry because, the traditional insurance market is a mess as insurers are not

interested in marketing a class of insurance under which shareholders bear a

major portion of the investment risk but get only 10 per cent of the profit. In the

case of unit-linked insurance, while the entire investment risk is passed on to

policyholders, the entire profit also goes to the shareholders. The high average

growth rate of 43 per cent was due to purely heavy inflow of funds. The

contribution of unit-linked policies during this period to this surge in stock

indices and explosive growth of the life insurance market cannot be denied.

5.3.1.4 THREATS OF BAJAJ ALLIANZ

Major identified specific threats of the organization as per the questionnaire can

be summarized in the table5.12.


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TABLE NO. 5.12 THREATS OF BAJAJ ALLIANZ

THREATS RANK

1 2 3 4 5 TOT. W.A. RANK

RECESSION 77 51 27 25 10 190 3.8 I

GOVERNMENT INTERVENTION 69 41 31 27 22 190 3.6 II

TAXATION POLICIES 61 49 39 21 20 190 3.6 II

HIGH COMPETITION 64 42 33 21 30 190 3.5 III

ECONOMIC FACTORS 61 49 29 27 24 190 3.5 III



5.3.1.4.1 RECESSION

First threat of the organization is recession. The weighted average score of this

parameter is 3.8 which reveal that 76% of the respondents believe that recession

plays the role threat for the organization restricting the discretionary income of

public.

5.3.1.4.2 GOVERNMENT INTERVENTION

As the government changes in every five years and makes new rules and

regulations for the organization which create a critical position for the

organizations. Government intervention is also a big threat for the organization.

5.3.1.4.3 TAXATION POLICIES

The weighted average score of this parameter is 3.6 which reveal that 76% of the

respondents believe that high taxation policies of the government play a role of

threat for the organization ultimately the burden will be on the shoulders of

insured.

5.3.1.4.4 HIGH COMPETITION

Next threat for the organization is high competition in the market. The weighted

average score of this parameter is 3.5 which shows that 70% of the respondents

believe that high competition in the market plays the role of threat for the

organization and stops the organization in performing well in the market.


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Last threat for the organization is economic factors prevailing in the market. The

weighted average score of this parameter is 3.5 which reveals that 70% of the

respondents believe that bad economic conditions in the market become threat

for the organizations performing in the market.

5.3.2 SWOT ANALYSIS OF LEADERSHIP IN BAJAJ

ALLIANZ

This part includes the specific SWOT analysis related to the organization as per

the questions asked in the questionnaire.

5.3.2.1 STRENGTHS OF LEADERSHIP IN BAJAJ ALLIANZ

Strength is an inherent capacity, which an organization can use to gain strategic

advantage over its competitors. With a view to take opinion of respondents about

strengths of leadership in their organization, one question was included in the

questionnaire. Major identified strengths of the study can be summarized in

table 5.13

TABLE NO. 5.13 STRENGTHS OF LEADERSHIP IN BAJAJ ALLIANZ

STRENGTHS RANK

1 2 3 4 5 6 7 8 9 10 TOT. W.A RANK

CONFIDENT 64

17

20

20

24

18

14

05

08

00

190

7.4 I

PLANNED 57

21

19

18

30

20

13

04

03

05

190

7.3 II

LEARNING ATTITUDE 41

12

22

28

23

38

06

09

06

05

190

6.7 III

COMMUNICATIVE 42

20

11

25

12

34

07

19

09

11

190

6.4 IV

COMMITTED 25

31

14

19

29

21

15

13

12

11

190

6.2 V

FRIENDLY 38

17

20

14

19

23

15

06

23

15

190

6.1 VI

CONSISTENT 30

25

18

10

20

32

08

12

18

17

190

6 VII

VISIONARY 18

13

24

23

28

19

04

06

32

23

190

5.4 VIII

RESPONSIVE 26

14

16

11

17

27

12

07

27

33

190

5.2 IX

KNOWLEDGEABLE 20

15

12

13

15

30

10

17

28

30

190

4.9 X




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5.3.2.1.1 CONFIDENT

As per the responses of the respondents the biggest strength of Bajaj Allianz is

that the employees in the organization are confident. as per table 5.13 one can

easily see that confidence in the employees of the organization is their biggest

strength with the weighted average of 7.4.

5.3.2.1.2 PLANNED

This parameter occupies second rank with the weighted average score of 7.3. the

respondents of Bajaj Allianz feel that leaders in their organization are well

planned and they perform each and every task in a systematic manner.

5.3.2.1.3 LEARNING ATTITUDE

As one of the core strengths of Bajaj Allianz Life Insurance is that the employees

in the organization are having learning attitude, the weighted average of this

parameter is 6.7 with third rank among ten parameters as shown in table 5.13.

5.3.2.1.4 COMMUNICATIVE

Good communication is one of the strengths of Bajaj Allianz. The employees in

the organization are good communicator. The weighted average of this parameter

is 6.4 and it is at fourth position among all strengths of leadership in the

organization.

5.3.2.1.5 COMMITTED

The weighted average of this parameter is 6.2 which shows that the employees in

the organization are committed towards their work and towards the organization.

They work with enthusiasm and zeal.

5.3.2.1.6 FRIENDLY

As friendly nature is a good sign for the growth of the organization. The weighted

average of this parameter is 6.1. One of the strengths of employees in the


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organization is that they are friendly in nature and very much supportive and

cooperative.

5.3.2.1.7 CONSISTENT

Next strength is consistency. Employees are regular with their work and with

their duties. The weighted average of this parameter is 6 as shown in the

table5.13 and it is at seventh position among all the parameters related to

leadership.

5.3.2.1.8 VISIONARY

Vision is ability to see future in advance. Employees in the organization are

visionary. The weighted average of this parameter is 5.4 which shows that the

organization should remain focused on the vision.

5.3.2.1.9 RESPONSIVE

Responsive is one of the strengths of the employees in this organization. This

parameter is on ninth position with the weighted average score of 5.2 as shown in

the table 5.13. Leaders in the organization are responsible towards their work and

organization.

5.3.2.1.10 KNOWLEDGEABLE

As one of the strengths of leadership in the organization is knowledge. Leaders in

the organization are knowledgeable as they are having good knowledge of the

market and upcoming trends and practices in insurance sector.

5.3.2.2 WEAKNESSES OF LEADERSHIP IN BAJAJ

ALLIANZ

Every organization has strengths and as well as weaknesses. Strengths and

weaknesses can be compared as two different sides of the same coin. On one side

there are strengths, helping in growth of an organization, on the other side there


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are weaknesses creating obstacles in performance. Weaknesses are inherent

limitations or constraints, which create problems for the organization. Based on

information collected through questionnaire and interaction with respondents

the following major weaknesses of leadership have been identified. The

preferences of respondents on various weaknesses are shown in table5.14 along

with the frequencies and weighted average of all the parameters.

TABLE NO. 5.14 WEAKNESSES OF LEADERSHIP IN BAJAJ ALLIANZ

WEAKNESSES RANK

1 2 3 4 5 6 7 8 9 10 TOT. W.A. RANK

LACK OF INITIATIVE 45

31

28

17

07

21

11

16

09

05

190

7.0 I

LACK OF ATTITUDE 41

30

15

27

19

18

16

09

07

08

190

6.9 II

LACK OF EXPERIENCE 27

25

42

29

15

13

11

14

08

06

190

6.8 III

LACK OF CONFIDENCE 29

31

27

23

25

13

09

09

11

13

190

6.6 IV

LACK OF CREATIVITY 39

25

23

21

19

17

12

07

09

18

190

6.5 V

POOR COMMUNICATION 29

27

17

21

38

05

13

19

10

11

190

6.3 VI

LACK OF

TRANSPARENCY

37

31

19

13

11

18

17

21

07

16

190

6.3 VII

SELF CENTERED 37

25

23

14

19

16

00

21

18

17

190

6.2 VIII

LACK OF VISION 29

25

13

16

28

19

10

14

19

17

190

5.9 IX

LACK OF ENTHUSIASM 32

21

13

13

19

17

28

16

15

16

190

5.8 X



5.3.2.2.1 LACK OF INITIATIVE

The first weakness related to leadership in Bajaj Allianz is lack of initiative. The

employees in the organization do not want to take initiative in the work. The

weighted score of this parameter is 7.0 as shown in the table5.10 which reveals

that it is their major weakness and they should take care of this weakness.


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5.3.2.2.2 LACK OF ATTITUDE

The second major weakness of the employees in the organization is lack of

attitude. The weighted average score of this parameter is 6.9, which reveals that

they need to have more proactive and positive attitude.

5.3.2.2.3 LACK OF EXPERIENCE

Next weakness of leadership in the organization is that the employees in the

organization are having less experience. The weighted average score of this

weakness is 6.8, which reveals that 68% employees believe that the leaders in the

organization are less experienced.

5.3.2.2.4 LACK OF CONFIDENCE

Believing in your self is the key to success. 66% of the respondents believe that

their leaders are less confident. This is not a good sign for the organization and it

creates negative image of the organization.

5.3.2.2.5 LACK OF CREATIVITY

Another weakness of the organizations leader is that they lack creativity. The

weighted average score of this parameter is 6.5 which reveal that 65% of the

respondents believe that their employers are not creative.

5.3.2.2.6 POOR COMMUNICATION

One of the weaknesses of the organization is that the employees of the

organization they are not good in communication. The weighted score of this

weakness is 6.3 which reveal that 63% of the respondents believe that their

leaders are not having proper two way communication.

5.3.2.2.7 LACK OF TRANSPARENCY

The weighted score of this weakness is also 6.3, which reveals that 63% of the

respondents believe that the leaders are not having transparency in their work.


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5.3.2.2.8 SELF-CENTERED

One of the major weaknesses of leadership in the organization is that the leaders

are self-centered and they focus only on themselves and their work. They do not

focus on their subordinates. The weighted score of this parameter is 6.2 which

states that 62% of the respondents believe that their leaders are self-centered.

5.3.2.2.9 LACK OF VISION

One of the weaknesses of leadership in Bajaj Allianz is lack of vision. The

weighted average score of this parameter is 5.9, which reveals that 59% of the

respondents believe that the leaders in the organization are having lack of vision.

They were lacking in visualizing the future of the organization.

5.3.2.2.10 LACK OF ENTHUSIASM

The last weakness of leadership in the organization is lack of enthusiasm. The

weighted score of this parameter is 5.8, which states that 58% of the respondents

believe that their leaders are less enthusiastic. They do not work with their

subordinates in full passion.

5.3.2.3 LEADERSHIP OPPORTUNITIES IN BAJAJ ALLIANZ

Opportunities are attractive areas for one’s action in which one would enjoy an

advantage. An opportunity provides favorable environment to an organization or

a nation, which enables it to consolidate and strengthen its position. The success

of an organization depends on “how it uses its strengths keeping opportunities in

mind”. Some of the opportunities related to leadership can be summarized in

table5.15.


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TABLE NO. 5.15 LEADERSHIP OPPORTUNITIES IN BAJAJ ALLIANZ

OPPORTUNITIES RANK

1 2 3 4 TOT. W.A. RANK

CONTINOUS DEVELOPMENT 75

59

46

10

190

3.04

I

LIBERALISATION 38

72

49

31

190

2.61

II

PROFFESIONALISM 29

67

35

59

190

2.34

III

INFORMATION TECHNOLOGY ADVANCEMENT 29

51

37

73

190

2.19

IV



5.3.2.3.1 CONTINUOUS DEVELOPMENT

First opportunity related to leadership in Bajaj Allianz is continuous

development. The weighted average score of this parameter is 3.0, which reveals

that 76% of the respondents believe that continuous development is the first

opportunity for their organization. Their organization organizes various

programs for continuous development like management development programs,

auditing practices, etc. for continuous development of the organization.


Next opportunity is liberalization. The weighted average score of this parameter

is 2.61, which reveals that around 65% of the respondents believe that

liberalization play an important role of opportunity for them. As the policies of

government become liberal, it became more useful for all the organizations.

5.3.2.3.3 PROFESSIONALISM

Third opportunity for Bajaj Allianz is professionalism. The weighted score of this

parameter is 2.34 which reveal that 58% of the respondents believe that

professionalism is a great opportunity for their organization. As professionalism

comes in the market it gives chance to many organizations to come up with latest

technology and latest trends in the market.


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5.3.2.3.4 INFORMATION TECHNOLOGY ADVANCEMENT

Last but not the least, information technology advancement is also an

opportunity for them. The weighted score of this parameter is 2.19, which reveals

that around 55% of the respondents state that information technology

advancement is an opportunity for the organization. As latest technology and

advancement comes in the market it needs new upcoming managers and leaders

for handling the technologies. Bajaj Allianz is leader in private sector players and

it can make optimum utilization of this opportunity by applying latest

technologies and advancement in the organization.

5.3.2.4 LEADERSHIP THREATS IN BAJAJ ALLIANZ

Threat is an unfavorable condition which adversely affects the productivity,

performance and efficiency of an organization. These are challenges posed by an

unfavorable trend or development of an environment that would lead in the

absence of purposeful action, to the erosion of position. Table5.16 represents

the threats related to leadership in the market and frequencies and weighted

average of each parameter. Some of the critical threats related to leadership are

as:

TABLE NO. 5.16 LEADERSHIP THREATS IN BAJAJ ALLIANZ

THREATS RANK

1 2 3 4 5 TOTAL W.A. RANK

RECESSION 67 42 27 29 25 190 3.51 I

EXCESSIVE COMPETITION 53 47 28 39 23 190 3.35 II

ECONOMIC FACTORS 19 61 51 35 24 190 3.08 III

POLITICAL CHALLENGE 15 56 19 41 59 190 2.61 IV

DERAGULATION 08 13 64 21 84 190 2.15 V



5.3.2.4.1 RECESSION

First threat for the organization is recession. As everyone knows that recession is

a big problem now a days for all. Recession plays an important role in


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threatening the organizations. As recession period comes in the market, it gives

a negative impact on the performance of the organizations. The weighted

average score of this parameter is 3.51, which reveals that around 70% of the

respondents believe that recession is the biggest threat for leadership in the

organization.

5.3.2.4.2 EXCESSIVE COMPETITION

Next threat for the organization is excessive competition. After liberalization

many big players have jumped in the market in insurance sector. For maintaining

the position in the market, the organization should concentrate on their

performance and for beating the competition the company should come up with

latest technology and trends in the market.


Economic factors like taxation policies, economic policies etc. play an important

role in the growth of the organizations. The weighted average score of this

parameter is 3.08, which reveals that 61% of the respondents believe that

economic factors are a big threat for the organizations.

5.3.2.4.4 POLITICAL CHALLENGE

Political challenge is one of the major threats for the organization. The weighted

average score of this parameter is 2.61, which reveals that around 52% of the

respondents believe that as the government changes at fast rate the rules,

regulation, policies will also change at faster rate which is a threat for the

organizations to survive in the market.

5.3.2.4.5 DEREGULATION

Next threat is deregulation which carries a weighted score of 2.15, which reveals

that around 40% of the respondents believe that deregulation is a threat for the

organizations.


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5.4 CONCLUSION

The researcher in order to conclude this chapter would like to comment that

SWOT analysis plays extremely important role in deciding strategic action plan of

any organization. This analysis of both the organizations reveals about some

major common strengths such as their leaders are confident, planned, having

learning attitude, consistency. Some specific common strengths of both the

organization are about financial soundness, market position and quality

products. Some common weaknesses like high stress, lack of marketing expertise

and poor communication exist. Opportunities and threats are mostly common as

rated by the respondents of both the organizations. The researcher has framed

two different recommended action plans exclusively based on this SWOT analysis

which are discussed in detail in the next chapter.

5.1 introduction 5.2 swot analysis of lic 5.2.1 general

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