SWOT analysis may be opined as the study, which is undertaken, by a company or an organization with the aim of identifying the strengths, weaknesses, the external opportunities and the threats that face the company. In most cases, strength and weaknesses are discussed based on the internal indicators especially those controlled by the decision makers while opportunities and threats are external factors and are determined by the foreign influence or control of the company. Detailed analysis of strength reveals that they are things, which a company consider as the benefits or the advantages that they have over other competitors. For example, the company may be offering more opportunities never offered before by the competitors, something that may realize the monopolization of the market.
On the part of the weaknesses, the concern is on the things, which the company may have some control over though they put the general operation under a disadvantaged level. The company's opportunities are the think, which the organization may not have control over but can always take advantage of their existence. The advantage taken may have a long-term impact on other competitors since them the opportunities may appear as their worst weaknesses. It is, therefore, important for a company to know its opportunities and compare with those of the competitor to navigate the business domain effectively. Lastly, threats are also the things, which the company may not control their existence but affect negatively the manner in which it operates in the business domain. A threat can even be a company, which is a competitor, or geography where the business or the organization is situated. SWOT analysis thus exists as a technique used by most businesses to spearhead the mission and objectives of the Company.
It is also worthwhile to note that Prudential Insurance Company is one of the hardworking insurance entities across the globe. Its mother company was referred to as the Prudential Insurance Company of America. It is equally categorized within the requirements of Financial services. On what the company deals with, it is explicit that it operates under the financial domain with a slogan of acquiring some piece from, there is also the strength of Gilbratar and the protection of given to the wealth.
Even though the company is amongst the leading in the industry, it has some strengths which not only help it in the protection of the market share but also allow the emergence of the new businesses and markets.
Prudential Insurance has most of its financial activities undertaken through automated methods, something which has brought consistency of equality regarding the products which are produced. The automation has also made the company scale up and scale down based on the demands or the conditions which are offered in the market. The other strength is on the strong distribution of network, something which the company has built over the years to allow a reliable distribution of products with the aim of reaching to the majority of the potential market.
The weaknesses define the areas in which the Company is required to improve. Such include the need for establishing more investment in the new technology as a way of smoothening the company's operations. The company also has most of the day's inventory going higher compared to the competitors. Such a situation may bring an imbalance regarding the revenue collected after every fiscal year thus allowing the competitors to bridge the competition gap.
Prudential Insurance operates in an environment with new policies. The new policies will give a fair playing ground hence enabling everyone within the competition to work and do business. Another opportunity is on the decrease in the cost of production due to the existence of the lower shipping prices. The company is, therefore, presented with the ability to immerse support which may or may not work for her when the time for the campaign.
One of the threats is on lack of enough skilled workers hence delaying the production process. The other threat is on the development of the new technology by the competitors or other market disruptors. Lastly, the liability laws are not the same in all the countries, an issue which may promote and hinder the development of the company.
In consideration of the SWOT analysis given, I plan to propose various new laws and technologies to ensure that everything runs smoothly and with no problem. I also plan to use SWOT analysis as a management tool by first educating the members of the company before the actual use. I will then proceed to look at different stages of SWOT analysis while also adhering to the problems which take place. I would also appoint a committee in charge of SWOT analysis to conduct checks and ensure that everything runs smoothly without any hindrance. The other technique is on encouraging everyone to pay attention to the areas of weaknesses and threats, something which will result in employees with improved energy for work. The techniques look a little bit simpler but when followed will bear fruits to Prudential Insurance because every person in the operation chain is charged with a responsibility which in the end meets the company's mission and objectives.
Contingency theory may also be useful in the application of SWOT analysis. The theory gives the assertion that the managers can come up with a decision based on the situation at hand. A manager is seen as a person who should have the ability to come up with a solution in case of any challenge. The theory, therefore, reduces the powers of the managers and involves them in the entire operation of the company. The theory also makes the managers first adopt the SWOT analysis and take their time to look at the company's weaknesses and threats. It will also offer an opportunity for the managers to appreciate the work done by other employees based on the existence of many strengths and opportunities.
Prudential Insurance Company has been in operation for many years with many customers offering appreciations about the excellent products and services produced. The conducted SWOT analysis confirms that even as the strengths and opportunities exist, the weaknesses still exist and has a hundred perfect competition of companies within the business industry. Lastly, together with the contingency theory, the SWOT analysis will help in addressing various managerial practices and also spearheading the introduction of new techniques and methods which would otherwise improve the operating system of the company as well as bringing more customers on board.
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Process Improvement Plan: SWOT Analysis of Prudential Insurance Company. (2022, Sep 22). Retrieved from https://proessays.net/essays/process-improvement-plan-swot-analysis-of-prudential-insurance-company
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