Insurance - Case

 

INSURANCE - CASE

CASE STUDY A

 

PAI established in Nairobi in 1950 has for 40 years been a leading Insurance company providing Quality Insurance products ranging from Life policies to Freight Insurance for long haulers. The organization grew from a "two-man" operation to a large team of over 100 members of staff more than half the staff worked in the manual records department where client files were managed in an increasingly complex registry system. The firm sells its products through sales agents and therefore does not retain a large sales force. Most of the other members of staff work in either Accounts or administration mostly reporting to one of the six senior managers. The business does have a human resource department and hiring is done by the finance manager who also controls staff pay. Training falls directly under the General Manager who is also in charge of business growth. He hardly has time for anything apart from meeting and (lately) pacifying irate corporate customers. Staff receive an annual bonus pegged to the years profit. Individual performance is not tracked though outstanding salesmen receive hefty rewards for catching any big fish.

 

Performance of the company is still good except that ten years ago profits started a steady decline and are still declining to date. The "founders" left the business to new managers 12 years ago and the company has had several "On & off" attempts at computerization. Staff are disillusioned and are at a loss as to the company's vision. There are rumors of retrenchment. More than half the staff have been with the firm more than 20 years and greatly fear computers. New aggressive competitors are literally stealing customers from PAI and the market is highly dynamic and subject to multiple issues ranging from politics to changing customer preferences, the fluctuation of the shilling against the dollar and oil prices. Plus, of course, war in Amerco.

 

(1)     Review the key challenges faced by PAI. Class these challenges as either operational or strategic.

(2)     What are the key business needs of PAI?

(3)     If PAI was to undergo restructuring, what would be your advice?

(4)     Describe how instituting a Training function would help PAI restoration efforts.