Prudential has applied growth strategy in its organization. For example, Prudential had acquired the Realty Express in Sarasota. The agents from the Realty Express is a great addition to them as with the outstanding resources and technology systems available throughout the company, Prudential believes that the sales associates of the company will be able to provide an even higher level of customer service. (RISMedia, 2011) RISMedia (2011) also stated that Prudential continues to grow by increasing its number of locations through acquisitions, expanding its number of agents through acquisitions and natural organic growth, rolling out new products for its international division and capitalizing on its affiliation with the Prudential brand.
Besides that, growth strategy is being implemented in Prudential when the company expanded its operation to Vietnam. (Funds International, 2004, p. 3) Prudential has grown by using concentration where it increases the markets served in its primary business. In Vietnam, Prudential is already the largest European life insurance company and has a market share of over 50 percent. (Funds International, 2004, p. 3) The company is considered to be successful at implementing growth strategy by having such result.
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Besides, Prudential also implement many kind of plans to achieve results with the growth strategy. As Prudential grow, it already provide many types of insurance or service for different kind of customer. For example, it had launched PRUlink assurance account, a regular premium linked product which is a market leader today, Fund management operation launched in Malaysia and PRUmy child, the first plan in the market that provides coverage during pregnancy and infancy periods.
Besides, Prudential also provide a plans that name "PRUlife READY". It prepare for life with their personality test. It is a short personality test designed for customer to make the right decision and approach customer 's goals and needs. This can help customer themselves to know what they really need and want. Then, advices will given based on the customer's personality.
2.1.2 Efficiency and Effectiveness
Prudential is one of the world's largest and strongest financial services groups with more than eight million customers. To maintain their position in the marketplace, efficiency and effectiveness is one of the concept of management that is being applied by Prudential. Prudential has increased its market share worldwide as the company is well recognized for its effectiveness and efficiency in providing services and products.
Effectiveness and efficiency play an important role in the management of an organization. According to Robbins, et al. (2011), efficiency means doing a task correctly ("doing the things right") and getting the most output from the least amount of inputs, while effectiveness is "doing the right things" by doing those work tasks that help the organization reach its goals. Chaffey (2011) stated that efficiency is needed to measure for marketing activities and business processes since it helps in minimizing resources or time needed to complete a process. In digital marketing, for example, efficiency involves increasing conversion rates and reducing costs of acquisition. On the other hand, effectiveness involves supporting broader marketing objectives and often indicates the contribution of the online channel in digital marketing.
To be more effective and efficient, Prudential has implemented a total quality management programme (TQM) which is also known as the "Way of Life" in its organization. The programme is an attempt by Prudential to improve its position in the UK marketplace. (J & Atkins, 1994) Efficiency and effectiveness became the key driving forces and a team of manager act as facilitators to plan and support the initiative. These managers developed the Life Administration mission statement and this programme was to be followed and strengthened by other major training initiatives and projects focused on understanding and delivering total customer satisfaction.
To assist in the cultural change and to help Life Administration meet its performance targets, a 4-point strategy was developed which include control of processes, customer-focused culture, continuous improvement, and communication, and mechanisms were installed to monitor progress. (J & Atkins, 1994) First and foremost, control of processes is getting processes "right first time" and having an understanding of their interdependency. Service excellence can only be delivered through capable processes. Next, customer-focused culture means listening to customers and reacting quickly to their changing requirements to increase customer satisfaction. This can increase the image and reputation of the organization. Thirdly, continuous improvement is adopting continuous improvement as a strategic imperative and striving to exceed customer expectations. The process of continuous improvement helps a company to remove the defects and errors from their products and services such that each level is a more advanced and thus innovation can be continued. Lastly, for communication strategy, in order for Prudential to achieve the best result, all members in the organization should keep in touch which involved upward, downward and horizontal communication.
Always on Time
Marked to Standard
Known as the Way of Life initiative, this program involved a major training and development exercise, specially designed to change the way people work so that they can consistently delivering quality service and become firmly embedded throughout every level of the organization. TQM was thus seen as a mechanism for creating a more flexible and responsive organization, which is able to adapt to the changing business environment by integrating within its culture. (Stephen, 1994)
The initiative of this plan by Prudential has succeeded in bringing about substantial change in communication, behaviour and attitudes to quality throughout the organization. The project has been very successful in terms of reducing unit costs, meeting business targets, and improving productivity. (J & Atkins, 1994) As a result of this program, the company succeeded in winning UK Department of Employment Training Awards for both 1991 and 1992, as well as becoming the first British insurance company to receive BS5750 certification for its Industrial Branch Area." (Stephen, 1994)
2.2 Implementing Plans to Achieve Results
2.2.1 Customer-Centric Products and Services Management
Prudential is always providing the products and services which meet the needs of its customer, this is why Prudential maintains a stable position for its continuous growth in Asia. Based on the logo of Prudential, it means that Prudential listens to and understands the hopes and dreams of millions of customers around the world. Customer is most important for any decision make to help the organization to achieve result. Prudential have applied this customer-centric products and services management to help the organization reach its goals.
As Prudential grows, it provides many types of insurance or service for different kinds of customer. For example, it had launched the PRUlink assurance account, a regular premium linked product which is the market leader today, Fund management operation launched in Malaysia and PRUmy child, which is the first plan in the market that provides coverage during pregnancy and infancy periods.
Besides, Prudential also provide a plan with the name "PRUlife READY". It prepare for life with their personality test. It is a short personality test designed for customer to make the right decision and approach customer's goals and needs. This can help customer themselves to know what they really need and want. Then, advices will be given based on the customer's personality.
Prudential Wealth Planner also is another way to approach for the detailed financial planning. Customer can communicate with the wealth planner face to face to get the better information. Its helping people achieve their hopes and dreams for a brighter and financially secure future.
Prudential will always listen to their customer needs. For example, customer can use the analysis tool (financial calculator and financial planning) to search the suitable services for themselves. First, customer has to fill in their background such as gender, condition of life today and plan of future. Then, customer's finance condition should be listed such as savings, retirement, obligation and protection to calculate the target amount. How many money the customer should save per month for the coming years. Customer can see the result of the analysis after fill in all the detail via financial calculator. Besides, customer also can personalize itself to reach the goals.
Besides, Business Times (2005) recorded that Prudential has successfully grow to Cyberjaya hub with the plan of creating a 'customer- centric platform'. Prudential invested in the best-in-class technology to create the platform and if all goes according to plan, the company believes that they would have doubled staff strength in both their IT hub and shared services hub within the next two years.