Positioning Strategy And Dominate The Australian General Insurance Market

1225 Words5 Pages
In order to effectively deliver on the positioning strategy and dominate the Australian General insurance market, the following core capabilities are required to be developed and enhanced: a. Design constraints This new organisational strategy requires a significant redesign of the business, due to the entire value chain no longer being managed in house, this will result in a number of redundant roles with both the leadership and lower level staff and the introduction of a new role for third party partnerships management Recommendation 1: Implement a functional structure aligned the value chain. A key recommendation of this report is for a new functional structure to be introduced that is aligned to the where value is created in the…show more content…
With a divisional structure, head of divisions have P&L responsibility for that line of business, because of this they will often think about what best for their division and not pass on new innovative ideas to other division, causing some divisions to lose pace • Divisional goals may take priority over overall organizational goals; team with each division will likely focus on divisional goal instead of organisational goal, so if the two are perfectly aligned the divisional may head in a different direction from the rest of the business. This structure will have a number of benefits that will enable GI to achieve the recommended positioning strategy. Benefit includes; • Specialization - Our staff within each function will become experts within their functional area mean the time taken and complete activities will increase • Efficiency and Productivity - Our teams, who will become an expert in their functional area, will be able to perform tasks with a high level of speed and efficiency, which enhances productivity and in turn costs. However this this structure is not without potential downsides which include • Lack of Teamwork, while specialized teams often perform with a high level of efficiency, they may have difficulty working well with other teams. If a project calls for several teams to work together they may be unwilling to cooperate and act in what maybe their own best interests instead of those of the organisation as a whole. • Difficult
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