McKenzie’s 7 s frame work

STRUCTURE:

Managing Director and CEO – Mr. Kamesh Goyal

Sashi Krishnan, CIO

Bajaj Allianz Life Insurance

C.F.O. – Mr. Rajesh Viswanathan
Head, Marketing- Mr. Sanjay Jain

BOARD OF DIRECTORS:
Mr. Rahul Bajaj (Chairman)
Dr. Werner Zedelius
Mr. Sanjay Asher
Mr. Niraj Bajaj
Mr. Sanjiv Bajaj
Mr. Heinz Dollberg
Mr. Ranjit Gupta
Mr. S. H. Khan
Mr. Suraj Mehta
Mr. Dietmar Raich
Mr. Manu Tandon
Mr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius)

SUB STRUCTURE:

Branch Manager

Business Development Manager (B.D.M.)

Assistant Business Development Manager (A.B.D.M.)

Insurance Sales Officer (I.S.O.)

Organization Chart
1. Formal reporting relationships - High
2. Levels in hierarchy - High
3. spans of control - High
4. Departmentalization- High

System:
Formal and informal procedures that support the strategy and structure

Various elements of system are:

1. Communications practice and System
2. Management reporting system
3. Approval process
4. Planning/budgeting system
5. Rewards system including
6. Appraisal
Communications practice and System: The success of a company depends on well effective
communication practice and system. In BAJAJ ALLIANZ the communication flows in both
side i.e from top to bottom hierarchy and bottom to top hierarchy.

Branch Manager

Business Development Manager (B.D.M.)

 Assistant Business Development Manager (A.B.D.M.)

Insurance Sales Officer (I.S.O.)

TOP TO BOTTOM FLOE OF INFORMATION

2. MANAGEMENT REPORTIN SYSTEM:

Usually reporting from junior level management to higher level management is common
practice in BAJAJ ALLIANZ.

3. PLANNING, APPROVAL:

Planning and approval usually done by higher authority . Based on situation people at lower
management are too allowed to take decisions

SKILL:

Distinctive competencies – what the company does best, ways of developing or shifting
competencies
• In case of BAJAJ ALLINANZ while Job Design it is to be considered whether the existing
employees have the necessary skills and knowledge tofu fill proposed / expanded job
requirements.
SKILLS REQURED IN BAJAJ ALLIANZ:
Management skills, technical skills, communication, personality .

STAFF:

Human Resource Development at BAJAJ ALLINZ has been an integral part of the Company
since its inception. It has had a significant strategic role in the
Company's growth process and continues to do so. It is a function that has contributed to the
bottom line of the Company and has built the BAJAJ ALLIANZ family.
BAJAJ ALIANZ today boasts of a strong online competency profiling system for its
employees. u It is to be kept in mind that the people are ways of shaping their basic
management values Proper HR management processes should be used to develop new
managers who can lead the
Organisation’s Importance should be given to the ways of introducing new employees and
managing careers.
STYLE:
The culture of the organization, consisting of Organizational culture: the dominant values,
beliefs and norms which develop over time and become
Relatively enduring features of organization life .
Management style: The precise way in which the Control system influences the behaviour
depends on the style of functioning of the manager (i.e. where they spend their time and
attention, what they allow, what
They reward, etc)
BAJAJ ALLIANZ basically follows an External Control System where
Decision making authority rests with the top management –
Centralized in practical operations three basic rules or style
1. Respect for Individual
2. Customer Satisfaction
3. Dedication to Excellence

STARTEGY:
Success of a company depends on way of designing and implementing stategy.
Strategy used in BAJAJ ALLIANZ.

1. Understanding Customer needs: Use data warehousing, management and mining to

gauge the profitability and potential of various customer and product segments and
ensure effective cross selling. Understanding the customer better will allow insurance
companies to design appropriate and-customized products, determine pricing
correctly and increase profitability.

2. High-level Training and Development: Ensure high levels of training and

development not just for staff but also for agents and distribution organizations.
Existing organizations will have to train staff for better service and flexibility, while
all companies will have to train employees to cope with new products and an
intensive use of information technology.

3. Alliance &Tie up: The importance of alliances and tie-ups means that companies
will have to integrate related but separate providers into their systems to ensure
seamless delivery.

Example: tie up with STANADARD CHARTERED, DESTIMONEY, and LOCAL

DEALERS.

4. Agent Relationship: Build strong relationships with intermediaries such as agents.

EXAMPLE: DAWN DAY AV

5. Market Segmentation: They must segment the market carefully to arrive at the
appropriate products and pricing and should cater the needs of every individual.
EXAMPLE: products like investment plus purely designed for elder person.
 6. Revamped Marketing Strategy: Worldwide, insurance products move along a
continuum from pure service products to pure commodity products then they could be
sold through the medical shops, groceries, novelty stores etc. Once communication,
popularity and awareness of the products are attained then the products can move to
remote channels such as the telephone or direct mail.

SWOT ANALYSIS:

STRENGHTS OF BAJAJ ALLIANZ

1. Bajaj Allianz Life Insurance declares Rs cr (US $ 15.3 mn.) profit for FY 08-09.
2. Bajaj Allianz Life Insurance is the first large pvt. Sector life insurance co. with pan India
network and strong retail focus to declare substantial profits for the
Financial year .
3. Bajaj Allianz Life is most profitable pvt. Life insurer for 06-07 .
4. Bajaj Allianz Life Insurance logs in Rs 4270 cr. (US $ 1.04 bn approx.) of new business
premium. For the first time private life insurance cos. have crossed the US $ 1 bn new
business in a FY.
5. Bajaj Allianz Life Insurance collected more new business premium in this one year alone,
then the total of last 5 year’s new business (Rs 3821 cr.).
6. More policies issued in this one year then the total policies issued in the last 5years (1.4
million policies).
7. Over 70% of the business was regular premium for the FY and in the month of March 07
over 80% of the business was regular premium.
8. Largest distribution network to reach the customers across the country with 2,13,000
agents, 900 offices in 840 towns, 200 corporate agents & Banc assurance partners.
9. The Company announced a healthy profit of Rs 63 cr. for the FY 2006-07 as per the
audited results. Excluding Participating funds profit the profit stands at Rs 54Cr.
.
WEAKNESSES OF BAJAJ ALLAINZ
1. They have to compete with the Government Companies like LIC and UTI who has been
very established in this field. So they will have to attain the same trust of the public as it is in
case of LIC and UTI.
3. The company is not doing any sort of work to make the general public aware about the
ULIP as a product as it is in case of Mutual Funds and other financial Instruments. So, they
will have to take a step forward to make the people aware about ULIP as well as the Schemes
which they are having.

OPPURTUNITIES OF BAJAJ ALLAINZ:

1. more investment plans by Bajaj Allianz

 2. Tie up with standard chartered bank , syndicate bank has fetched more business
opportunity.

THREAT OF BAJAJ ALLAINZ:

1. Competitor like LIC and UTI LIFE INSURANCE has edge over Bajaj Allianz

2. Fluctuations in market i.e. recession have direct impact on investment in insurance.