Ch 1 B Flashcards
What are the 5 activities that professional insurance brokerage will need to capitalize
Be innovative
Be price competitive
Manage risks effectively
Attract & reward employees
Focus on profitability
Describe Top Down and give
1 pro
1 con
Upper management makes the decisions and distribute them to be actioned by employees.
Management feels in control.
No employee buy in
Describe Bottom Up and give
1 pro
1 con
Employees generate action plans that support the overall strategic plan of upper management
Management feels they are loosing control
Employees have buy-in to the plan
What are the 4 characteristics of a plan
Practicality
Severability
Flexibility
Simplicity
Identify the purpose of the strategic plan
Strategic plans are for 3-5 years. They apply to the brokerage as a whole.
Identify the purpose of an action plan
These are 1 year. They apply to a particular business unit. They are much more detailed than a strategic plan.
What are the components of a strategic plan
-Scanning internal environment
-Scanning external environment
-Matching strengths and weaknesses
-Develop corporate focus
-Develop strategies
-Develop Objectives
-Set goals
What are the two aspects of an external environmental scan
Distant and Near
Distant is: economy, government, hard/soft market
Near is: client, market, competitive profile
Scanning Internal Environment
Assume the position of client and assess from their viewpoint
SWOT analysis
S&W Internal
O&T External
Develop Corporate focus
Create vision, mission, value
Develop Strategies
Strategies - long term battle plan
Objectives - refine strategies
Goals - Specific details. Want to be accomplished and by when
Implementing the Plan
Controlling implementation
Linking budget to strategies + objectives + goals
Motivating for implementation
