case paper – bata insurance

8/3/2019 Case Paper Bata Insurance

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AliRazaSyed(2009-1-90-9963)This case study examines the customer-focused approach of Zurich, the insurance and

financialservicesprovider.ZurichFinancial ServicesGroup (Zurich)is aglobalcompany.It

providesbothbusinessandpersonalinsurance.Ithasarichmixofproductsandservices,

including motor insurance, buildings and contents insurance, risk management, life

assurance,andpensionsandinvestments.

CasePaperBataInsurance

M a r k e t i n g M a n a g e m e n t S e c t i o n E


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ACKNOWLEDGMENTS

We are truly indebted to Sir Riaz Khan for giving us this incredibleopportunity to conduct a case study. We would like to thank him for

providing us information and guidance throughout our report in order to

materialize our content for the report. He showed commendable gesture of

believing in our potentials and guided us throughout the completion of this

report. He had faith in us, which helped us overcome all the obstacles with

regard to the project. We owe our deepest gratitude to Sir Riaz Khan for his

constant support and encouragement, which provided us the inspiration to

complete this survey report.

Also I would like to thank Mr. Azeem Nadir, who helped me develop this

report on the basis of his extensive experience in Insurance and personal

financing institutions

It was a pleasure working on such a report and on a topic so enlightening and

insightful.


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LETTER OF TRANSMITTAL

7th

December 2011

Mr. Riaz Khan,

Lecturer Marketing,

Institute of Business Management.

Respected Sir,

This is a case study on Bata Insurance. The purpose of this report was toresearch on the issues ofBata Insurance. Secondly, we tried to find the

suitable solution to solve the particular issue.

The methodologies that have been used for this assignment are various

website sources, research papers. We have tried our best to prepare a

well-organized report that meets your requirements.

If any kind of further information regarding the report is required, please

contact us at any time with questions. You may contact us at our IoBMmail.

Sincerely,

Ali Raza Syed

2009-1-90-9963

BBA, IoBM

Karachi

[email protected]


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TableofContentsLETTER OF TRANSMITTAL ............................................................................ 3

Introduction:.......................................................................................................... 5

Vision..................................................................................................................... 6

AddingValue ........................................................... .................................................................. ........................... 6

Aims ...................................................................................................................... 7

Objectives.............................................................................................................. 7

SMARTobjectives ............................................................ .................................................................. ................ 7

Strategyandtactics................................................................................................ 8Settingoutastrategy.......... ................................................................... ........................................................... 8Measuringcustomersatisfaction ............................................................... ................................................. 8Tactics ............................................................. .................................................................. ...................................... 8Enhancingstaffperformance....................................... .................................................................. ............... 9

Measuringperformance....................................................................................... 10

Customercentricity.................................... .................................................................. .................................. 10Shareholdervalue............................................................ .................................................................. ............. 10Employerofchoice.......................................................... .................................................................. ............. 10

Conclusion ........................................................................................................... 11


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Introduction:

One approach to business is to develop a product and then look for customers.However, for many businesses the customers come first. They adopt what is known as

a customer-focused approach. These businesses seek to provide customers with what

they want. This involves listening to customers to identify their specific needs and

requirements.

This case study examines the customer-focused approach of Bata, the insurance and

financial services provider. Bata Financial Services Group (Bata) is a global

company. It provides both business and personal insurance. It has a rich mix of

products and services, including motor insurance, buildings and contents insurance,

risk management, life assurance, and pensions and investments.

The company was founded in 1932 and the Groups headquarters are in Berlin,

Germany. Today Bata does business in over 170 countries and has over 60,000

employees. It operates through a network of subsidiaries and offices in North

America, Europe, the Asia-Pacific region and Latin America.

Bata combines its knowledge of local markets with international expertise. It aims to

offer its customers a high level of service. To do this, Bata has recently developed a

new customer-centric strategy. This strategy sets out plans to provide customers with

the products and services they require accompanied by a high level of customer

service. Bata continually monitors its activities to make sure that its customer-focused

objectives are being achieved.


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Vision

An organizations vision is a clear statement of what it seeks to achieve. The visionshould inspire everyone associated with the organization. It should motivate

employees to strive to achieve the vision. If the vision sets out what an organization

seeks to achieve, then it needs to have a means to fulfill that vision. The means to

achieve the vision is termed a strategy.

Batas vision is set out in this way: At Bata, we aspire to become the best global

insurer as measured by our customers, our shareholders and our people. To achieve

this aim, Batas strategy involves being effective in the key areas that add value to its

stakeholders. Adding value is the process of increasing the market value of a product.

It is a key part of ensuring stakeholder satisfaction. Batas key value-adding activities

are:

o Meeting customers real needs this is what the company means bycustomer centricity

o Providing products and services where and when customers want themo Making sure that all of the processes involved in providing financial

services are done effectively.

AddingValue

All staff plays a role in making sure that the value-adding activities are doneefficiently. Responsibility does not solely lie with the top managers. It is important to

look after the people that work for Bata. Team members that are well trained and

motivated will deliver a better service to customers. This is an important part of

people management.

It is important to monitor a strategy to ensure it is effective. This will show whether

an organizations vision is becoming a reality. For Bata this involves measuring:

o Customer centricityo Shareholder valueo Being the employer of choice.


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Aims

The relationship between a businesss aims and its objectives is important. Aims aregeneral statements of what a business is seeking to achieve. They are closely related

to its vision.

Objectives are much more specific. They often include quantifiable elements that

specify precise performance targets. Managers can use these objectives to monitor

progress. They can compare actual performance against the targets set out in the

objectives. They can then take corrective action if the business looks like it will fail to

meet targets.

The relationship between aims and objectives can be illustrated using examples from

Bata. The companys vision is to be the best global insurer. This is backed-up bythree key long-term aims:

o To ensure customer satisfactiono To deliver shareholder valueo To be the employer of choice.

ObjectivesThe company has a series of objectives to help it measure progress towards these

aims:

In relation to the aim of customer centricity, one of Batas objectives is to achievetop quartile customer satisfaction when compared with other companies in the

financial services industry. This means that Bata wants to be in the top 25% of

insurance and financial services providers for all aspects of its performance as

measured by independent research.

In relation to the aim of giving shareholder value, one of Batas objectives is toachieve a return on equity of 16%. This means the company wants to achieve aRs. 16 profit after tax for every Rs. 100 of capital that it holds. Bata will be able to

pay dividends to its shareholders if it makes sufficient profit.

In relation to the objective of being the employer of choice, one of Batasobjectives is to secure high employee engagement scores. These are measured

through employee satisfaction surveys. A committed and motivated workforce is

more likely to deliver high levels of customer service and be loyal to the

company. In other words, Bata will be an employer of choice.

SMARTobjectives


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Note that all these objectives set by Bata are measurable. In general, all business

objectives should be SMART. This means that they should be:

Specific exactly what is to happen Measurable by quantity or proportion Achievable capable of being achieved within available resources Relevant to the overall business or corporate objectives Time-related with a deadline attached.

StrategyandtacticsA strategy is a plan that enables an organization to achieve aims and objectives. The

plan needs to be backed up by tactics. These are the methods used to implement the

plan.

Settingoutastrategy

In relation to customer centricity, Batas strategy is to increase customer satisfaction.

In order to do this, Bata needs to understand what customers want. In 2010 and 2011,

Bata carried out market research by interviewing over 7,000 customers. The survey

focused on 70 different features and aspects of its service. The research provided a

good indicator of what customers want when dealing with the company.

Measuringcustomersatisfaction

To measure customer satisfaction in the various regional markets in which it operates,

Bata uses a measure known as a TRIM index. This assesses how well different parts

of Bata's business are performing in relation to satisfying customers. It combines this

measure with further customer satisfaction research carried out by an independent

research company. This research measures how satisfied customers are with each of

the eight elements of the desired customer experience wheel and additional

underlying attributes. These measure satisfaction at a more granular level.

Using these research findings, Bata is able to allocate resources to those aspects

where customers want most support. Action plans to deliver service improvements arethen developed by local teams. This is where tactics come into play. Tactics are the

methods used to achieve the business objectives.

For example, in the insurance industry getting things done on time is very important.

Bata teams therefore focus on reducing the time between a client signing a new

insurance contract and receiving the insurance policy. The company also seeks to

minimize the time between a customer making an insurance claim and receiving

compensation.

Tactics


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Bata has also developed tactics to ensure its products and services are readily

available. Insurance is often sold to customers through intermediaries rather than

directly by an insurance company. Typical intermediaries are insurance brokers,

independent financial advisors and financial advisors working in a high street bank.

Bata seeks to have the widest possible distribution footprint that is, the largest possible presence in banks and other financial outlets. It also seeks to build strong

relationships with the financial intermediaries, based on trust and giving its customers

value for money.

Enhancingstaffperformance

Part of Batas strategy involves a focus on people management. The company aims to

attract top employees and to retain the people that it recruits. At Bata, management

trainees are developing skills in functions such as marketing, sales and customer

service during their initial training. They also work with a range of products, such as

business and private insurance. Bata aims to provide trainees with the skills and

opportunities that they need to pursue interesting careers with good prospects.

Bata also offers its staff performance incentives. These incentives are not just for

making sales. They are also offered for helping the business to achieve its SMART

objectives. Employees are rewarded with bonuses, awards and recognition for good

performance.


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Measuringperformance

The benefit of setting SMART objectives is that they provide a way for a business tomeasure its performance. Measuring performance makes it possible to identify a

businesss strengths and weaknesses. It provides a firm basis for planning to improve

performance.

These are some of the measures that Bata uses to measure performance.

Customercentricity Sales growth Bata aims for growth at or above the average rate in the overall

insurance market. This is a useful measure of the popularity of Bata.

Customer satisfaction Bata aims to be in the top quartile for customersatisfaction as measured by independent researchers.

Shareholdervalue

Dividends Dividends are the annual payments made to shareholders. Bataseeks to grow the dividend it pays out year on year.

Total shareholder returns Shareholders seek not just dividends but increasein the share price. Bata seeks to be in the top quartile for total shareholder

returns.

Employerofchoice

Staff retention rates seeks to retain good staff with the company for a longperiod.

Bata measures engagement scores Employee satisfaction surveys show what percentage of staff enjoy working for the company and feel that they are

provided with rewarding careers.

By establishing a set of metrics for measuring performance, Bata is able tomonitor and review performance continually. It can compare actual

performance against its strategic and tactical plans. As a result, changes can be

made on a regular basis to enable the company to progress towards its aims.


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Conclusion

Bata has a well-thought-out and executed strategic plan. This focuses on meetingcustomer requirements. Bata seeks to win the loyalty of customers by listening

carefully to their needs and requirements.

Bata has a clear vision to be the worlds best global insurer. The vision is backed up

by a strategy that focuses on serving customers, shareholders and employees. The

strategy is underpinned by market research, which helps to determine what customers

want.

A series of SMART objectives have been put in place to work towards key strategic

goals. In order to deliver the strategy, the company implements various plans and

tactics. These are designed to help the company deliver a customer-centric service, to

reward shareholders and to recruit high caliber employees.

Ongoing measurement makes it possible to monitor performance against targets.

People who buy insurance expect value for money. They want speed of service and

expect an insurance company to be reliable and trustworthy. In order to achieve its

vision and to enhance its reputation, Bata seeks to achieve top-level performance in

everything it does in relation to serving its customers, employees and shareholders.

case paper – bata insurance

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