Insurance CPCU 520: Insurance Operations 2nd Edition/Chapter 10: Insurer Strategic Management

The process an organization uses to formulate and implement its business strategies.

A broad expression of an entity's goals.

A method of evaluating the internal and external environments by assessing an organization's internal strengths and weaknesses and opportunities and rewards.

An organizational structure in which departments are defined by the operation they perform.

An organizational structure in which divisions are organized into separate profit centers.

A business-level through which a company seeks cost efficiencies in all operational areas.

A method of evaluating the external environment in which a company operates. Involves assessing five forces that drive competition: threat of new entrants, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers and rivalry among existing firms.

An analysis that identifies patterns in past data and then projects these patterns into the future.

A corporate-level strategy through which a company either produces its own inputs or disposes of its own outputs.

A corporate-level strategy through which a company expands its operations into areas that are similar to its existing operations.

A corporate-level strategy through which a company expands its operations into areas that have no relation to its existing operations.

A corporate-level strategy through which a company seeks to gain short-term profits while phasing out a product line or exiting a market.

A corporate-level strategy through which a company rebuilds organization resources to return to profitable levels.

A corporate-level strategy through which a company sells of a portion of an operation, usually a division or profit center that is not performing to expectations.

A business-level strategy through which a company develops products or services that are distinct and for which customers will pay a higher price than that of the competition.

A business-level strategy through which a company focuses on one group of customers and offers a low-price product or service.

A business-level strategy through which a company focuses on one group of customers and offers unique or customized products that permit it to charge a higher price than that of the competition.

An arrangement in which two companies work together to achieve a common goal.

A business association formed by an express or implied agreement of two or more persons (including corporations) to accomplish a particular project, such as the construction of a building.

A type of acquisition in which two or more business entities are combined into one.

A company owned or controlled by another company.

The percentage of insurance policies renewed. (10.28)