Core values that a company possesses

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This report is an attempt to provide a detailed analysis of the core values of New York Life insurance company that needs to possess. In this report I also include ethical, cultural, environmental, and social background of New York Life Insurance Company against current standpoints.

VALUES:

Knowledge:

One of the values of New York life insurance is knowledge. Expertise is driven by knowledge. Their main aim is to help people and to protect them. New York Life insurance company emphasized on the expertise of knowledge which combines global and local knowledge.

Caring:

The company's first priority is customers. They care for the customers by providing help and by protecting them. Brand of the company represents how they care for customers.

Core values:

Humanity:

The company's core values are humanity. New York Life is always there in the times of disasters by building the strong and healthy relationship with the customers. By this way the company is different form other companies. They build the trust of the customers by providing the help to them and make their lives easy. Truth of the company is the humanity that keeps them different from the other companies of insurance.

Financial Strength:

The financial strength of the company allows them to achieve their future goals. The goal of the company is to meet future obligation of the policyholders. The strongest point of the company is capital which is the financial strength of it.

Integrity:

The key measure is the product and its success. New York Life company gives contribution to the society by dealing with the people. This gives them the high

standard of integrity. It gives financial strength and humanity to their clients by providing quality products and services to the people.

SWOT:

A search of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as Strengths or Weakness, and those external to the firm can be classified as Opportunities or Threats. Such an analysis of the strategic environment is referred to as a SWOT. It provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates.

Strengths

It has excellent business profile and strategy with strong diversification by product type, distribution channel, and geographic market.

New York Life Insurance Company has the extremely strong diversified competitive position in life insurance and annuities.

Exceptionally strong core distribution in it carrier agency system, which is complimented by other channels.

Very strong and consistent adjusted operating earnings.

Strong and comprehensive approach to enterprise risk management.

Weakness

Capitalization is currently a relative weakness to rating with deficiency at the 'AAA' level as a result of incremental stress factors and investment losses.

View the company's investments as very strong, but also relatives to the ratings because of the volatility of capital caused by investment losses.

Less awareness about all products of life insurance in global market is the weakness of the company.

Opportunities

Fast growing economy

Scope of opening of new branches in state or country

High growth of industry

Catering to the untapped rural and semi urban market

Increasing population will increase in insurance in global market.

Threats

Market uncertainty

Impact of financial crisis due to recession poses greatest threat to New York Life Company its effect on economy condition.

Consumers do not invest easily

In recent economic climate companies struggle to get financial resources from customers, they try to attract investors, but it is hard due to uncertainty of returns (dividend) and market.

Arrival of new entrants in the insurance industry

The treat of new entrants is reasonably high in insurance industry from local and overseas, by launching attractive and risky products which attracts customers, so eventually it will reduce market share.

Cut throat competition within the industry

Insurance markets are more competitive than others. In these highly competitive markets, New York Life insurance company regularly monitors competitors. It can be intense or remote and tends to depend upon historical development.

Threat of other insurance company

New York Life insurance company has threat of Met Life which can render products obsolete and can be direct or indirect. At the same time, potential actions to build customer loyalty should be undertaken.

PEST

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.

Political Issue:

Approval from the government is important for New York Life insurance company. This will require regular inspections, it is important for credibility amongst customers. It may be seen as an endorsement of quality for the entire range.

Government regulation that could damage insurance sales is an issue for the whole industry. If there is a clamp down it might seriously threaten sales. The company has consider setting up a main lobby arm as it monitors and influences international, federal and state governments on the Company's behalf.

Economic Issue:

The recession in the economy and foreign markets is likely to result in lower disposable incomes for what is often a luxury purchase. According to their report to policyholders the credit market of the company is known for its economic issues. They have moved more of their money as investment in treasury bond.

The company has not take part in the Troubled Asset Relief Program. The company serves the better to their customer at the times of inflation and downturn of the economic. For this they had examine it in deep how they provide better services to their customers.

Social Issue:

NYLI is one of the largest mutual life insurance companies. The growth of its sale had made it one of the largest mutual life insurance companies. The company sale Equitable life assurance to the society along with the mutual insurance. Agency of the company has also encouraged the growth of its sales.

Healthcare is the main development of the company. AIDS was the unease of the company. They are the first to promote the disease of AIDS in the world. The company has created the awareness of the disease in New York. They have also support the American foundation for the research of the disease.

Technological Issue:

All the assets of the company are combined as subsidiary. To improve cutthroat power of the company insurance company has distinct financial products that are different from the other insurance company. Management LLC is the investment product of the New York life company that is unique and it is the asset of the company.

From the insurance company the subsidiary have small portion of money to use it as more flexible. They have use technological issues in new products of long term care and new scales of new channel for which the company have reduced their costs in the life policy of customers.

BACKGROUND:

Ethical:

The association's principles of ethical market conduct require companies: To conduct business according to high standards of honesty and fairness and to render that service to its customers who, in the same circumstances, it would apply to or demand for itself. To provide competent and customer-focused sales and service. To engage in active and fair competition. To provide advertising and sales materials that is clear as to purpose and honest and fair as to content. To provide for fair and expeditious handling of customer complaints and disputes. To maintain a system of supervision and review that is designed to achieve compliance with the Principles of Ethical Market Conduct.

Cultural:

Company's culture has some of the finest ingredients going into its making. Some of the more prominent aspects of it culture are stated below-Customer comes first. Do it right the first time. Bias for result oriented action, financial strength and discipline, Clarity of purpose, International quality standards, Inclusive Meritocracy, Learning opportunities fun at work, Commitment to published value system.

Environmental:

New York Life Insurance Company has earned the U.S. Environmental Protection Agency's prestigious ENERGY STAR, for its home office location at 51 Madison Avenue in New York City. New York Life's Westchester campus, located at 1 Rockwood Road in Sleepy Hollow, New York, received this prestigious award in 2008. This recognition identifies New York Life's building as one the most efficient buildings in the nation. The ENERGY STAR designation is the mark of superior energy performance and is given to the top 25% of facilities in the country that use on average 35% less energy than typical similar buildings and generate one-third less carbon dioxide. ENERGY STAR is a government-backed program that helps businesses and consumers protect the environment through superior energy efficiency.

Social:

NYLI is one of the largest mutual life insurance companies. The growth of its sale had made it one of the largest mutual life insurance companies. The company sale Equitable life assurance to the society along with the mutual insurance. Agency of the company has also encouraged the growth of its sales.

Healthcare is the main development of the company. AIDS was the unease of the company. They are the first to promote the disease of AIDS in the world. The company has created the awareness of the disease in New York. They have also support the American foundation for the research of the disease.

Core Competencies:

Michael Porter argues that business strategy is not about operational effectiveness (doing things better), but about doing things differently. For Porter,' Competitive Strategy' means deliberately choosing a different set of activities to deliver a unique mix of value. Core competencies of a company can be defined as a set of skills and expertise that enable a company to deliver exceptional value to customers. A shift in emphasis and focus from products to the core competencies from which those products are born can enable a company to develop in unexpected but profitable directions.

The company gives importance to the awareness of the product and its advertisement. The expertise of the company has made the product unique in the market since its early days. They are specialized in all areas of service, marketing and legal activities. To become number one in the market, they sale variety of annuity products in the market with the help of bank. Banks earn the highest percent of annuity from their sales channel. However, the company is taking the advantage from the sales through their traditional trends.

Competitive Advantages:

When a firm sustains profit that exceeds the average for its industry, the firm is said to possess a competitive advantage over its rivals. Porter identifies two types of competitive advantages: Cost advantage and differentiation advantage. It exists when the firm is able to deliver the same benefits as competitors but at a lower cost, or deliver benefits that exceed those of competing products.

A resource based view emphasizes that a firm utilizes its resources and capabilities to create a competitive advantage that ultimately result in superior value creation. Competitive advantage is created by using resource and capabilities to achieve either lower cost structure or a differentiated product. A firm position itself in its industry through its choice of low cost or differentiation.

Distribution Channels in Value Creation in New York Life insurance companies are distribution accounts for the largest element in insurers' costs and impact the profitability. Distribution capabilities strongly influence product design in insurance. Distribution channels have a direct impact on the insurers' market image. Integrity of distribution channel is the key concern of the regulatory mechanism.

ENVIRONMENTAL ASSESMENT MICHEAL PORTER 5 FORCES:

Threat of New Entrants:

This will depend upon the extent to which there are barriers to entry. The potential of the insurance industry is the new insurance company coming in the market every day. As a result, NYLI has to improve their some products because of the threats of new entrants. The small company in the market may be grasped by the big companies.

Bargaining power of buyers:

The insurance company has no threats from the individual company. While large business companies like airlines and other pharmaceutical companies may be the clients of the insurance company because of the business they are doing. They negotiate with the insurance company.

Bargaining power of supplier:

The supplier of the capital is not the threat of the insurance company. For example, the new insurance company may try to take the person who is expertise in already

existed company or may take the small company who is newly enter the market. Thus, in this way supplier negotiate with the insurance company.

Threat of Substitutes services:

The insurance company has many substitutes in the market. The big insurance company has to provide different types of services to their clients. Thus, in this way the company can avoid the threat of substitutes from the market.

Competitive rivalry:

Insurance markets are more competitive than others. In these highly competitive markets, New York Life insurance company regularly monitors competitors. It can be intense or remote and tends to depend upon historical development. NYL lies in growth stage of the life cycle. There has been a period of rapid market acceptance and substantial profit improvement.

Recommended:

Firstly, I recommend that NYLI has to recognize the value of the company as it has strong background. It is the one of the largest mutual insurance company in the world. Further it provides more challenge to the customers to make investment. The company's agent helps the customer by understanding their needs. For which they have to provide better training to the sales agent system. Everyday new insurance company is coming in the market and to know which a good company is, I recommend New York life insurance company for its quality products and better services to their clients.

Secondly, I recommend that the company has to give periodic training and product promotion strategies should be improves. Company should consider the present competition and should act according to the customer needs. If new skills and techniques are developed training program then it will somehow average it. It has increasing fast changing business. It strengths and capabilities are high and business is growing year by year.

Finally, I believe that training help people to learn how to do the things differently or to the different things. Products are now increasingly knowledge intensive for these

employers are responsible for providing opportunities for continues learning. To cope with the challenges and competitiveness in the world talented people are needed in the company to do the activities. So, training program plays key role in individual as well as organizational performance.

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