French Global Insurance Companies Group, Essay Example

Introduction

AXA is one amongst the companies of French that deals with insurance.  Not only does it deal with insurance or related matters but it also performs other functions as well. AXA may not be as perceived by majority, they considered it as a single company, but in the real sense it is a collection of companies. The companies that make up AXA are separately controlled and they work as per the regulations based on the country where they are working or performing. To date, AXA has extended and become an international champion in monetary protection. The groups that make up AXA have a sturdy past history which can be traced up to 19^th centuries.

AXA was officially launched in 1985. Various factors (both challenges and opportunities) have affected the company since then. The paper’s intention is to elaborate the challenges that have faced it, the challengers facing it presently and the possible remedies that can be employed to increase its performance both in the local and global markets¹.  It also gives possible suggestion that the company can use to enhance its relationships with the global markets, customers and its argents. It is one of the agendas of the paper to illustrate the past performance and predict future suppose certain conditions are maintained. We hope that the paper will provide a better evaluation strategy for AXA as its performance presently and future will be compared according to this article as its progress have been denoted. As the axiom says “achievement has various fathers but failure is an orphan” is relevant to marketing, though it is hard to predict the consumer behavior in the next day or year but the paper helps to give direction that might hold some water for AXA company.

Executive summary

AXA has its head offices located in Paris. Since it was founded, it since has been handling the issues that are related to life insurance, and the management of the investments among others.  Its operations and services have advanced and reached global markets. Like now it is found in Ukraine and the other countries.  It has expanded its operational areas and has reached areas like America, Europe and as far as Middle-East and Asia-Pacific (was listed as one of the best companies in Paris market. It was also made the biggest player in non-life insurance by the Guardian Royal Exchange in 1999). With the commitment we have we hope that it will even reach as far as Africa. AXA is a group of companies that involves business sections like International Insurance, management of assets. It also deals with the properties and causality and extends its services up to life Insurance. The growth has not only been its achievements but the number of workers has also risen. Like presently it has more than 1650 employees and about 4200 agents. Not only has its increase in the number of clients and employees but the following changes have also taken place in the company. In duration of an annum, two hundred suggestions were given out and twenty of them were in the long run implemented. Score of Scope survey rose from thirty six to forty seven in 2003 and 2005 respectively. The utility that the clients get from the company has also expanded from 64% to 69% over the three years (2003 and 2005). The total sales increased from 63.9% to 79.1%. Among the markets and the existing businesses we can be proud to say that this is a better improvement.

Retention of buyers in Japan from10.64% to about 16.65%, Portugal reinvestments from 48 to 57, Italy reinvestment rate from 27.56% to 44.25%), Spain from 23% and shot all the way to 42% within the same span of years. Rise in yearly profit form € 37 to € 201 million. This is a great number. Its turnover is about $46 million which is rated as better but not the best but it’s is our objective that in the coming years we shall be able to increase.

Throughout the years, it has expanded and presently AXA Group can be regarded as a significant global player. We have maintained our objectives and have achieved leadership in AXA central monetary Protection business. AXA winning policies are constructed on sets of distinct principles. Its operation model comprises of invigorating, consolidation and rising natural growth-retaining present customers and getting fresh and experienced ones to certain that AXA has the ability and maintain it to grasp indisputable chances for its growth both in local/regional and /global external markets. The group’s efforts towards development are aimed at the money-making segments (as most of the businesses are; they are profit oriented and so AXA), and it hunts for the enhancement of AXA place in emerging or high-developed markets. AXA has since 1998, been performing its operations under a one brand with international reach: AXA. The company is optimistic and this has enabled it to expand. At present moment, 53 500 000 customers all over the globe are its customers and trust AXA company as they take it as their alternative company. The advancement in its operations and business all over the globe enabled it to create “AXA-Way” was officially started in 2002.

The main aim was to enhance the efficiency of the operations of AXA as it makes its processes more efficient as more customers were chipping in and the by then operat5ions could not serve them better. Our good performances have been due to the commitments that we have and the services that we provide to our customers. Our core principles are (that govern the company) is to; listen to customer’s voice and this is to be done without cease, enhancement of our performance so that we may march the expectation of the clients and constructing client and performance based culture among others. Our aim and target is to defend from exploitations by various companies and serve customers where necessary. In AXA, confidence and firm paramount associations are made and maintained. Corporate task is to illustrate, slowly and continuously, and in the course of our dealings, we try to maintain and are sure of our stakeholders’ trust. We need corporate task as a section of the fundamentals of AXA and hope to make it authenticity for all stakeholders rather than just putting it as a concept.  Their maintenance calls for designing dependable resolutions so that it can attain our clients’ requirements as well (we need to maintain both the customers and the stakeholders). It also entails the risks management, fair treatment of our associates, development of a work atmosphere that is to be constructed on firm principles and we hope that5 we shall be able to maintain reliable improvement. We as well known a take it as our responsibility to defend the surroundings, give support to the society that we perform in, and assist in the creation of firm and societies that are sustainable.

Strategic challenges facing AXA

Though we regard ourselves as successful company, but AXA has been and is faced by numerous obstacles. Some of them, it has been able to overcome while others not. Refereeing back to 2001 it was faced by catastrophe.

In 2001it was under a financial slowdown in 11^th September 2001 which resulted from the attack that they got from the terrorists in who fled with large amounts of money ($70). The attack reduced AXA’s revenues the reduced revenuer caused a slow growth. They as a result lost confidence in the products of AXA. It has also been struck by the 2001global downturn and this resulted to a drop of its revenues by 6.25% when compared to the revenues in the previous year (2000). The other problem that the company has undergone is the poor management in its branch that is in Japan⁷. The confidence that the clients had been lost and this resulted in the loss of profits as sales reduced. Due to its international operations, AXA had to experience problems in the systems of tax that fluctuated in various countries. The taxation in these countries has also been too much. The competing of AXA goods and other commodities from the other countries is yet another factor that has hindered its first growth over the years. The financial catastrophe produced many distrust though it has as well indicated the requirement for vigorous and accountable companies. The slow perception cannot be left out in the effects introduction on AXA goods in various fresh places. These are the remote and the interiors areas.

The people in those areas are very slow to perceive and accept the products and service. It is my belief (as chief executive officer) that it is significant to re-stress the way corporate task as it is a vital element in our operations.

We anticipate the AXA to make forward movements and this can be done by distributing the tasks for all our employees and agents.  In those years, (2004 and the proceeding) AXA was undergoing 25% error rate. The cause was the manual handling of Bizness Fisc. Not only that but it was as well undergoing missed chances in up selling. Over the past, efficient communication between the company and its clients/argents has been ineffective.

This reduced the chances of contact and quick communications and even it was very hard to confirm whether the argents had received receipt confirmation. At times they had not and the system delayed them. They could not be sure whether their receipts were still in process or had been completed. In this worsening circumstance, the agents just mailed credit contracts and dreamed the best will be provided. This in turn created additional toil as the contract forms were followed manually and their completion ensured. AXA is facing tough competition and it is trying its best to minimize the chances and loopholes that creates such competitions. During the past few years, AXA has met completion from other companies that deal with similar goods or their complements. This has occurred to due their cheapness as compared to AXA (including the services that AXA offers). AXA has been negatively perceived by the customers and the public after the downturn.

External environmental conditions facing AXA

AXA has been faced by numerous factors that are external and internal but has tried to improve its operations. Due to the expending number of clients and its expansion to global markets, in 2002, AXA required a dependable and computerized method that would aid it increase sales.  The program would also advance its performance and processing speed without depriving it from tailoring its bids and get better profitability of its products. ¹⁰ AXA desired resolutions that could assist it decrease occurrence of errors and their probabilities at beginning and this could assist in speeding up the time taken to processing. AXA Way was then formed to help improve the above conditions. With it, AXA has measurement as element that its DNA is composed of and was aware of the existence of an away to develop its present 1.4 Sigma measure. In 2004, the managers of AXA organized and started a plan for five year. The program was as former one to computerize their operational processes accelerates indenture initiations. It was the intention of the AXA Company to raise its market access. The barrier and the threats that were facing AXA at that time were believed to be process of labor-intensive and other related factors. The company wanted to enter fully into the market and so there required to place dependable programs and resolutions which could without stress give support to their programs and fulfill their objectives. The policy initiative could also be supported as well.¹¹ In the our programs success and its future enhancement, we required to manage and monitor processes and the forms that assisted in obtaining necessary data that could aid in assessment of AXA Way.

Implementation of AXA Way had and has numerous advantages.  It aid in satisfying the utilities of the customers, main the existing customers and capture more, it contributes to about 89% of the growth revenues. It assisted the company in accessing wide variety of commodities/products and services, reduces the expenditures that the company was undergoing formerly, reduced the cost. In a nut shell, AXA Way has contributed to the success of the company.  They wanted to run and path progressions and forms that contain data and expand the attainment of the company’s central business, devoid of the addition of know-how intricacy or burdensome learning for the period of roll-out. The investments it has made are significant to its future performance. The best example is seen when AXA Private Equity is in the process of purchasing stakes from United States. Our risks are managed through a culture of culture of risk alertness which is entrenched all through AXA and its investment methods.

Company resource audit

Changes that have taken place in the company can leave one to ask, the question regarding the present assets, resources and the competence it has. AXA since its performance has been competent in it as performance and fulfilment of the set objectives have been there main intentions. The company has so much tried to maintain their customer by creating numerous customer retention policies.  Referring to October 2008, AXA Equitable Chief Marketing Officer (Barbara Goodstein) by then remained anxious as the company (under her) started a first-time customer maintenance program known as “MyRetirementShop.com.”

The program since  its was created it has helped in the expansion of the company by attracting  more than  0.5 million guests who browse necessary guidelines and outlines from people such as Kiplingers, and the rest who are known to be the experts.  The clients who used the system were ready to give thanks to the organization and AXA in general for the resource. Their appreciations did not only come with words of mouths but was accompanied by an increment on their purchase of AXA products. She was innovative and stretched the budget for greatest impact. This is a form of satisfying the utilities of the customers. The increase in the purchase was beneficial to the company in that it aided in the generation of required capital far past the cost of program. This can be regarded as both an asset and a resource as it generates income for AXA.

Though innovative but she faced opposition by CEO, Kip Condron who did not appreciate her innovations. All long as this website was officially started, AXA legislatures were given with several tools that could assist them to freely share with the clients of the company and other people who might become interested in their services. This was through emailing and by use of brochures which was to invite the clients so that they could have a look at the website. They never stopped at launching the website but moved further to look at how it can be improved.  They were looking for ways of increasing user appeal. She said, “We are also going to change the enroll button so interested visitors can reach us more easily”.

We persist to increase the capabilities of our LDI and the teams supporting (concerned with legal) quantitative and middle-office features of every mandate, so that it can provide necessary assistance to the present LDI customers and this will aid to develop AXA in the coming days.

With about $27 billion of properties/assets that are managed, AXA Private Equity, is an expanded personal equity organization that has global reach that covers 8 offices in numerous cities like Paris among others.  It offices are spread to maintain a larger customer base. The offices ensure that the customers in those areas are captured and maintained to purchase and use the services that they provide. This is also assets as they aid the customers who in turn to buy the products.  From the year 1996 and there after, AXA has given support the expansion and increase of its portfolio associations at the same time producing persistent and steady profits. It (AXA Private Equity) avail the investors with money transverse the complete series of personal equity offerings.

AXA current strategies

To get and recruit its new leaders, in order to get its objectives fulfilled, the company has constructed the policies that aid in obtaining this. The policies revolve about a model of AXA business and it has well distinct set precedence. The business of AXA comprises of stimulating, strengthening and increasing growth-retaining present customers and getting fresh ones to certain that AXA maintain the ability to grab chances for it expansion both in the local market and international markets. The company has 5 set priorities for its improvements.  They aim to provide the best services to its clients, be innovative, productivity, main business expertise, and distribution management. The clients are very difficult to comprehend and s require close monitoring. The market through the internet and this has increased their sales.                                                         

An analysis of strategic implementation

A victorious build-up policy should be led by firm managerial group and should be founded on a distinct and visionary business policy. The monetary constituent in schemes and plans is a tool for levering value creation. The organization and arrangement of the managerial structure is very essential in such cases. AXA is a developing and new arrangements of its functions are in place. This is aimed to provide good support to its policies. AXA new placements and the satisfaction of expectations of the clients are some of the major priorities for AXA Company. To hasten on the above two scopes, Véronique Weill, who has been one of the Executive Committee members has been selected to be the Chief Operating Officer.

The aim is to supervise the distribution & selling, operational quality. Véronique Weill will be monitoring implementation and intensification of AXA clients’ centricity. It is hoped that when the above changes commence, there will be a shoot in the company customer relationship. The described policy will work as it had and is a good accelerator of growth. Referring to the past years like at the commence of 1998, when the management of company was being assisted by Private Equity, its gross income from sales were about 12 million Euro, and sturdy staff. The changes the others will start from the first month of 2010. The fundamental constituents that contribute to a good of build-up of policies are interior and outer communications. Suppose this is not enough, the company would experience difficulties from short of or narrow visibility of the market and. financial transparency would also be lost.

Issues that need attention in AXA Company

As businesses expand so AXA should. In the improvement of their service qualities and for betterment of their services, AXA should implement MBO, EVA and if possible bring the balance score card.  They should further their marketing strategies as the intended population has not been yet reached. Innovation of new marketing policies and improvement of the older ones should not be left out. The spread of the branches of the company has been beneficial to it but for better performance, AXA needs to put all the branches under one management.

This will ensure that they are perfectly managed and all the operations are from one single point.  They should expand their investments with the banks. It is clear that at times the income go down and up and even during economic down turn like the one that they faced in the past, they can easily regain. The Company should go for long term investments as their returns are high. Though they have not improved according to their expectations but this cannot be a barrier for the future performance. Ancient performance should not be regarded as a channel to expected performance. Alterations in rates of exchange will have effect on the investments value. Their investments should not only be spread in developed countries but in the developing/fresh markets.  Emerging companies present the likelihood of more profits but can also entail a higher risk degree. Though the above conditions and other related ones, AXA should make its investments in such companies.

The company should try to increase imaginative options and observe the outcomes, (like Barbara Goodstein).this will assist then to access and attract the customers in an easy way. There should be an increment in the number of pension schemes.

Conclusion

In a nut shell, AXA has improved since it was formed and there is likelihood of development in the near future. It has emerged among various companies. It has shown the potentiality of improvement. I recommend that the mangers and the responsible people in AXA Company assist and work together for the attainment of its goals. Success means good governance and vice versa. Some of the success methods that it can use are to make sure that it reaches the areas that have not been reached by either its competent or related goods. It should move to the remote areas and provide its services in those areas. With the good objectives that they have, innovations and s0o on, they should innovate good marketing methods that will assist them cover about a third of the globe. In this case they would have achieved their marketing objectives. To understand the clients is very difficult and so require very close monitoring and supervision as their requirements are dynamic and they also changes according to both external and internal factors. AXA in keeping close to its client will get their requirements hence provide a better service for them.

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