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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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 todays 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

TOT.

W.A.

RANK

FINANCIAL SOUNDNESS

36

27

13

20

11

107

3.5

ADEQUATE BUSINESS
ENVIRONMENT

37

23

19

13

15

107

3.5

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. LICs 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, LICs 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 200809.
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 years 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):-

LICs 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


LICs 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 LICs
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

TOT

W.A

RANK

LACK OF MARKETING EXPERTISE

31

25

27

09

15

107

3.5

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

1.

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

2.

Source: Primary Survey

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
1

TOT

W.A

RANK

UPCOMING MARKET LINK PLANS

49

16

10

15

17

107

3.6

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

1.

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

2.

Source: Primary Survey

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
1

TOT

W.A

RANK

HIGH COMPETITION

37

29

17

09

15

107

3.6

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

1.

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

2.

Source: Primary Survey

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 individuals 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

10

TOT.

W.A

RANK

COMMITTED

24

18

14

11

12

107

6.9

CONSISTENT

13

19

16

11

12

107

6.3

II

KNOWLEDGEABLE

12

13

20

15

13

107

6.1

III

FRIENDLY

15

17

12

12

15

107

5.7

IV

LEARNING
ATTITUDE

19

11

23

10

107

5.6

RESPONSIVE

15

11

14

23

14

107

5.3

VI

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COMMUNICATIVE

10

12

19

17

14

107

5.1

VII

VISIONARY

15

11

12

18

14

107

5.0

VIII

CONFIDENT

17

12

11

15

14

20

107

4.9

IX

PLANNED

12

13

12

11

16

17

107

4.7

1.

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

2.

Source: Primary Survey

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

10

TOT.

W.A.

RANK

LACK OF EXPERIENCE

22

15

12

13

11

12

107

6.9

LACK OF CONFIDENCE

17

22

13

14

107

6.8

II

LACK OF
TRANSPARENCY

27

11

13

13

14

107

6.6

III

SELF CENTERED

23

11

13

10

11

10

107

6.2

IV

POOR COMMUNICATION

27

13

10

107

6.0

LACK OF ATTITUDE

14

12

10

18

11

11

107

5.9

VI

LACK OF ENTHUSIASM

13

21

11

16

10

107

5.7

VII

LACK OF CREATIVITY

13

15

10

12

11

10

21

107

5.6

VIII

LACK OF INITIATIVE

13

11

21

11

13

16

107

5.2

IX

LACK OF VISION

13

11

11

12

15

16

107

5.0

1.

Scale: Ranking Scale 1-10, TOT=Total, W. A.=Weighted Average

2.

Source: Primary Survey

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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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

TOT.

W.A.

RANK

LIBERALIZATION

49

31

19

107

3.6

PROFESSIONALISM

51

22

27

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

1.

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

2.

Source: Primary Survey

5.2.2.3.1

LIBERALIZATION

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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

TOT

W.A.

RANK

POLITICAL CHALLENGE

36

27

11

15

18

107

3.4

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

1.

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

2.

Source: Primary Survey

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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

TOT.

W.A.

RANK

ADEQUATE BUSINESS ENVIRONMENT

81

64

21

17

07

190

4.02

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

1.
2.

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


Source: Primary Survey

~ 159 ~

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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.

~ 160 ~

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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 organizations 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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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

TOT.

POOR QUALITY OF GOODS AND SERVICES

37

81

10

32

30

190

3.3

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

1.

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

2.

Source: Primary Survey

5.3.1.2.1

W.A.

RANK

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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

TOT.

W.A.

RANK

UPCOMING MARKET LINKED PLANS

54

39

37

41

19

190

3.5

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

1.

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

2.

Source: Primary Survey

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

5.3.1.3.4

LIBERALIZATION

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS


TABLE NO. 5.12

THREATS OF BAJAJ ALLIANZ

THREATS

RANK
1

TOT.

W.A.

RANK

RECESSION

77

51

27

25

10

190

3.8

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

1.

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

2.

Source: Primary Survey

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

5.3.1.4.5

ECONOMIC FACTORS

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

10

TOT.

W.A

RANK

CONFIDENT

64

17

20

20

24

18

14

05

08

00

190

7.4

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

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

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

1.

Scale: Ranking Scale 1-10, TOT=Total, W. A.=Weighted Average

2.

Source: Primary Survey

~ 167 ~

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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

LACK OF INITIATIVE
LACK OF ATTITUDE
LACK OF EXPERIENCE
LACK OF CONFIDENCE
LACK OF CREATIVITY
POOR COMMUNICATION
LACK OF
TRANSPARENCY
SELF CENTERED
LACK OF VISION
LACK OF ENTHUSIASM

RANK
1

10

TOT.

45

31

28

17

07

21

11

16

09

05

190

41

30

15

27

19

18

16

09

07

08

190

27

25

42

29

15

13

11

14

08

06

190

29

31

27

23

25

13

09

09

11

13

190

39

25

23

21

19

17

12

07

09

18

190

29

27

17

21

38

05

13

19

10

11

190

37

31

19

13

11

18

17

21

07

16

190

37

25

23

14

19

16

21

18

17

190

29

25

13

16

28

19

10

14

19

17

190

32

21

13

13

19

17

28

16

15

16

190

00

1.

Scale: Ranking Scale 1-10, TOT=Total, W. A.=Weighted Average

2.

Source: Primary Survey

5.3.2.2.1

W.A.

RANK

7.0

6.9

II

6.8

III

6.6

IV

6.5

6.3

VI

6.3

VII

6.2

VIII

5.9

IX

5.8

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.

~ 170 ~

CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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 ones 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

CONTINOUS DEVELOPMENT
LIBERALISATION
PROFFESIONALISM
INFORMATION TECHNOLOGY ADVANCEMENT

TOT.

W.A.

RANK

75

59

46

10

190

3.04

38

72

49

31

190

29

67

35

59

190

2.34

II
III

29

51

37

73

190

2.19

IV

1.

Scale: Ranking Scale 1-4, TOT=Total, W. A.=Weighted Average

2.

Source: Primary Survey

5.3.2.3.1

2.61

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.
5.3.2.3.2

LIBERALIZATION

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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CHAPTER 5: SWOT ANALYSIS OF THE ORGANISATIONS

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

TOTAL

W.A.

RANK

RECESSION

67

42

27

29

25

190

3.51

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

1.

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

2.

Source: Primary Survey

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.
5.3.2.4.3

ECONOMIC FACTORS

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.

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