Research Paper on Business Organisations and Environments

Paper Type:  Research paper
Pages:  7
Wordcount:  1893 Words
Date:  2022-12-06


This paper shall be based on a comprehensive discussion on a company known as AXA which is a multi-company in France. Focusing on the abovementioned company, I shall look at its background history, how it was formed, its relation with the country France and the legal parameters it is operating on. I shall also look at the business environment it is operating on and how that particular environment is affecting its business capacity and the statistics that show how the business environment has affected the business itself especially the insurance business. Looking at the key player in the insurance business in France we shall look at how it has boosted the economic growth at large.

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Background Information on AXA Group

AXA group can be traced back to 1816 when it came to light as a small insurance company in the United States of America. When it was formed, it had a different name, 'Mutuelle Assurance Center' it later expanded and in 1982 it bought Drouot Group, and this was a big move it increased its capacity, and also the client capacity increased greatly. In 1985, Mutuelle Assurance Group changed its name to AXA group. It is well known that during this time the practice of insurance law mainly focused on maritime insurance as most of the valuable items were transported via the sea.

The maritime technology was also wanted as there was the wind driven ships and they were victims of sea perils. The items which were mostly transported through the sea were coal, expensive metals, cars, and heavy machinery. Maritime insurance began long before the modern type of insurance which involves the insurance companies. Statistics show that the insurance companies that major in maritime insurance, make a huge profit than the rest.

Due to the continuous success of AXA Group, in 1999 it acquired the Guardian Royal Exchange, and by the year 2006, AXA Group had made moves in the global insurance market and bought one of the leading Swiss insurance company for 9 billion Euros. In the year, 2011 AXA Group was the second most powerful corporation in the world regarding ownership and market expansion. It recorded income regarding premiums amounting to over 1 billion dollars by the year 2010 (Dewenter & Riddick, 2018)..

AXA group has shown tremendous growth which has inspired the insurance business globally. AXA group has now over 50 sub-branches in different countries across the globe and facts have revealed that AXA group is, in fact, the best in the insurance market in the countries it has established. For instance in countries like France, Nigeria, and Morocco, the AXA group is the main player in the insurance business, becoming the leading insurance company in these jurisdictions and improving the economy especially in Africa.

AXA Group in France happened to be formed the same year, 1816, as part of the AXA Group. Currently, AXA Group is the leading corporation in the world in money lending business, insurance services including life assurance services, reinsurance services, and many other financial related services. It entered the French insurance business with a great move due to the favorable environment there was at that particular time.

Other insurance companies operated in France which were competing with AXA, but later they all came to a memorandum of understanding making AXA Group the leading insurance company in France. AXA group had international recognition and a bit of practice in the United States of America thus getting into the French market was so easy. By the year 1900, AXA Group had bought two of the main insurance companies that were in tight competition with it.

In France, AXA France is the largest insurance corporation which this rank is determined by premium income. They offer health insurance policies, disability coverage, employment saving scheme, retirement and pension coverage, and many other insurance policies in France. They are well known for the high levels of professionalism and high-quality services that make it outstanding in the financial market. The other factor that makes AXA group outstanding is the large network it has around the globe. In normal situations, persons had to take two insurance covers if especially the subject matter involved two or more countries. Well for AXA group, it is recognized in the international insurance practice was it has the capabilities of engaging more than one jurisdictions.

AXA Group has over 200,000 employees who are located in over fifty countries across the globe, thus become one of the companies that have offered high numbers of employees and play a vital role in the efforts of eradicating unemployment in many countries (Dewenter & Riddick, 2018). AXA Group has further been listed in the New York and Paris stock exchange as the best bearing the rank, 'AA' denoting 'very strong.' This has helped the economies of these countries as one of the main roles of the insurance business is an investment. Well the case with AXA group, governments borrow funds from AXA Group to be used for infrastructure development that will make an economy grow.

One of the strong legal policies that AXA has established over the years is AXA GROUP TAX POLICY. This tax policy is to the effect that the AXA group is subject to paying tax in the various countries it has established itself. Most specifically about the tax policy, AXA group has a strong legal team that constantly vigilantes the trend in tax changes in the various countries which could result to high tax, expenses, payments that could increase AXA Group's tax liability. AXA Group has also played a vital role in the development of the insurance business, insurance law and practice in these countries, especially in African countries.

Since its existence in the insurance market for over a century, AXA Group has been collaborating with states for advice purposes in matters to do with the growth of the insurance business. A country like Nigeria had not adopted the modern insurance regulations that could favor both the insurance industries and clients. AXA Group introduced great ideas to the state which has already lead to the increase of this industry by 30% since the establishment of AXA Group in Nigeria. All these are done by the legal team which is the chief legal advisor and acts as mediators between states and AXA Group (Dewenter & Riddick, 2018).

The legal team is also essential when it comes to investigating claims brought by the many clients they have in the 55 countries that they operate in and this may involve comprehensive court procedures and defense that could help AXA Not to incur a high liability regarding compensation. The terms of the policies being offered are so friendly such that rarely does it cause conflicts between the clients and the company. This attribute has boosted the quality of services being offered. For instance, in the year 2016, AXA Group was only involved in 145 court cases related to claim as compared to the other insurance companies that had a record of thousands of court cases that significantly reduced credibility (Denamguere, Wiltord & Maxime, 2018).

Background Information on the Business Environment in France.

The insurance market in the French country has grown steadily over the years and its foundation strongly held by history if insurance in France. The Foundations of this country can be related partly with the insurance business. Insurance business came about because of the high need for protection and security for the most valuable commodities. France is also well known for a high economic increase in business and also infrastructure.

In early 1800, the practice on insurance law was only related to cover goods in transit which were transported through the seas then later in the early 1880s; the government only allowed the insurance company to cover for buildings only some of the policies related to the risk of fire, earthquake and war destructions. Later on, the government allowed the insurance of personal property including life assurance. This was after a lengthy consultation with key players in the insurance market such as AXA Group who help greatly in formulating policies and regulations that later governed the insurance industry.

This was important as it formed the foundation of insurance law in most countries. AXA group has an extensive network around the globe. In normal situations, persons had to take two insurance covers if especially the subject matter involved two or more countries. Well for AXA group, it is recognized in the international insurance practice was it has the capabilities of engaging more than one jurisdictions so looking at the trends in insurance industry AXA Group was much relied upon with by the France government in the insurance business.

Since then the government has allowed insurance companies to cover more and more items. In a move to promote the insurance business, the government introduced laws that made it compulsory for one to be insured against certain events - for example, a statute that came to light in the 1890s, subjected the employers to insure employees in the event of work-related accidents. On the side of the insurance companies, since at this particular time, more insurance companies were being formed, and this gave room to fraudsters who conned people, laws were formulated to regulate the insurance companies, and in most countries, an insurer must be a company incorporated in a particular country.

Another statute passed in the early 1990s, obligated employers to contribute to a certain percentage towards their employee retirement benefits. The other compulsory insurance product is the Car liability insurance policy which is the largest in the insurance industry. As such the French government has over the years legislated laws have obliged its citizens to take insurance covers which have created a conducive environment for business which is a great benefit to the insurance companies such as AXA Group.

Statistics have shown that three in every five people has something insured and breaking this down, over half the population of France have taken insurance cover. All the car owners in France have taken insurance covers in certain events like accidents, car wearing out and car lifespan. This has made France so attractive in the insurance business also, the tax payment plans by the insurance companies are very friendly making the companies increase in their profits. The performance of AXA Group has helped the economy as one of the primary roles of the insurance business is an investment. Well the case with AXA group, governments borrow funds from AXA Group to be used for infrastructure development that will make an economy grow.

SWOT Analysis of Business Environment

A SWOT analysis of AXA represents an internal and external analysis of the company, giving useful insights regarding the current market position and future potential growth as an international insurance player. Therefore, a SWOT analysis will provide vital insights to inform future actions, covering the strengths, weaknesses, opportunities, and threats. A detailed analysis will provide a competitive edge and effectively respond to the needs of the insurance market in France in the digital ecosystem focus and a transformational program which forms the strategic pillars of the company.


  • Well established brand
  • Available joint ventures and subsidiaries in other parts of the world minimize its business risk
  • Consistent growth over the years


  • High employee turnover events
  • High market share for some products and low for others.
  • Overdependence of European countries


  • A wide range of pension plans
  • Effective asset management sector
  • Innovative products to reduce the impact of climate change
  • Fresher acquisitions and expa...

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